For three years, Signet

GIS
Jewelers has been on a “Path to Brilliance,” the official name for its business growth strategy to build and strengthen its portfolio of brands including Kay, Zales, Jared, Peoples and Piercing Pagoda.

Already claiming to be the nation’s number one jewelry store and the world’s largest diamond jewelry retailer, the pressing question is how far can it actually grow. With its dominant lead in jewelry retailing, it requires original thinking to become considerably bigger.

Rather than just improving business – selling more jewelry for more money more often to more people and doing it more efficiently, as acclaimed marketer Sergio Zyman defines success – Signet CEO Virginia “Gina” Drosos, aims to transform the business.

“As part of our next phase of our transformation, we’ve made service acceleration one of our growth strategies,” she shared with me. “Because we have strengthened our balance sheet so effectively over the past few years, we have the opportunity to envision ‘build or buy’ as a way to grow faster. ”

She is looking for new ways to create value for the customer and value for the business beyond what has always been done, only better. That’s what the acquisition of the Rocksbox jewelry rental subscription service is all about: a plug-and-play game that gives customers new ways to enjoy jewelry without having to worry about buying it.

“Rocksbox is a perfect fit for us and builds on trends in sustainable commerce and the circular economy,” she continued. “Rocksbox shares our values ​​and exists to provide the joy of jewelry for all. They are very data-driven, active in social media and digital marketing, and have a very innovative and entrepreneurial spirit which is the culture we have built at Signet and which has helped us perform so well during Covid. “

Founded by former McKinsey and Bain consultant Meaghan Rose in 2012, shortly after the 2009 launch of Rent The Runway clothing rental service, Rocksbox offers $ 21 per month subscriptions to three selections of renowned designer jewelry. like Kate Spade, Kendra Scott, Gordana, Perry Street, Sophie Harper and Slate. Monthly subscription fees can be applied towards the purchase of items that customers want to keep.

Acquired for an undisclosed price, the company also did not release the number of Rocksbox subscribers, but said the Rocksbox customer base reinforces a weakness at Signet: women who buy themselves.

Under the leadership of CEO Meaghan Rose, Rocksbox has revolutionized the jewelry rental subscription market by delivering personalized, online, and data-driven customer experiences for jewelry enthusiasts who prioritize fashion, online convenience and convenience. sustainability, ”Drosos said in a statement.

With the acquisition of Rocksbox, Signet is taking an important step in the next phase of its “Path to Brilliance” strategy, called “Inspiring Brilliance”. This new phase is based on attracting new customers to increase market leadership; expansion into the “accessible” luxury and value segments; accelerate digital e-commerce; and develop its service offerings.

Rocksbox plays in all of this, but most importantly by expanding the service offerings of Signet. Already a $ 500 million business, including jewelry customization, repair, financing and piercings, Drosos aims to grow services to a $ 1 billion business “over time,” I told me. she said.

Considering that Signet is a roughly $ 6 billion business, although it experienced a downturn during the pandemic year, this represents a huge segment of potential growth for the business.

As Rocksbox brings an unknown number of customers into the Signet sphere, it is much more important to bring a proven subscription business model. It will engage its existing clients in new ways and attract new clients who want to rent jewelry for special occasions or who want to have an ever-changing everyday jewelry wardrobe.

It’s an opportunity Drosos hinted at in an interview prior to this announcement. “Rental and subscription activities have clearly taken off in women’s clothing. Considering our jewelry repair and maintenance experts, we can easily rent a piece of jewelry from one person this month, then polish it and rent it to someone else, ”she said, adding: “Services are the glue that binds a lifetime. of customer engagement.

Note: The original article distorted the company’s services target as being $ 2 billion. It was corrected at 4 p.m. on April 6.


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