[The Cité du Luxe special brief] DNVB jewelry brands: deciphering a flourishing new business model (2/4)

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The Cité du Luxe 2020 will be held on March 13 at the EIML (International School of Luxury Marketing), located in the 15th arrondissement of Paris. A real place of exchange, dialogue and debate between generations whose objective is to enrich themselves in contact with professionals and experts in the luxury sector, this day of conferences returns for a 9th edition around the commitment of companies luxury. Luxus Plus, partner of the event, exclusively reveals to you the surveys carried out by 5th year students in the Masters cycle of EIML Paris as part of their exchanges with luxury professionals for the preparation of the event.

By Paul Revet – Salomé Tharaud – Léna Croizard – Audrey Ménard (5th year students of Masters C cycle at EILM Paris), under the direction of Claire Domergue, director of publication of Luxus Plus

 

For a little over five years, new jewelry brands have appeared on the canvas: the DNVB (or Digitally Native Vertical Brands). Born on the internet, these brands have the distinction of operating a vertically integrated industrial model, controlling their production until marketing.

 

A daring bet for this particularly delicate sector. The jewelry being associated with major life events, makes these products an emotionally charged acquisition often inseparable from a particular service during the act of purchase.

The DNVB phenomenon is revolutionizing jewelry

 

Ten years ago the pure player made in France, Gemmyo, arrived on the market by overturning the classic business model of a highly competitive division. By playing the 100% digital card, the brand is doing well by upsetting the codes and reinventing the customer experience. The key to success? “Friendly” communication involving more transparency, strong commitments and an undeniable value for money.

 

Pauline Laigneau, CEO Gemmyo, calls this the “Brand social role“.

 

Gemmyo is getting started like the famous eco-responsible Courbet, the new tailor-made brand Joîkka or the brand bought by the American group Richline Gemvara, a DNVB pioneer in the sector, focusing on personalization with more than 1.5 million unique possibilities.

 

A limited business model

 

It is certain that the web has established itself as a real sales platform, in a sector where it was previously unthinkable to withdraw physical customer service. And yet, the bet is won with flying colors. This flourishing new economic model has certain limits, however. If the DNVB in jewelry excel in launching their brand and creating online value, they struggle to take the next step by staying on their model.

 

We note that globally 87% of purchases are still made offline (Fevad and KPMG study), and it is easy to understand why DNVB is so massively investing in physical space today. The opening of these stores allows them to reach new targets. This becomes their best acquisition lever allowing them to increase sales … online, with a 40% increase in traffic to their online site (according to an ICSC study).

 

From digital to reality

 

This is why Gemmyo or Maison Courbet have also decided to pass the course by opening their own physical stores. The figures prove it, despite the advent of digital, for some customers the point of physical contact plays a prominent role. In the era of unified commerce, the field of jewelry must more than ever develop its agility to attract the attention of consumers.

 

The success of DNVB has certainly opened up a new path by placing the consumer experience at the heart of this business model. But the latter seems to run out in the long term. Is it really the lack of human contact? Where is the need for a new physical shopping experience? The future may be in a digital store on Place Vendôme? We only ask to see.

 

 

Read more > [The cité du luxe special brief] Innovation as a commitment: what role for the desirability of luxury brands? (1/4)

 

Featured photo : © Gemmyo[/vc_column_text][/vc_column][/vc_row]

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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