In today’s world, consumers are making a notable shift from the in-store shopping experience to online shopping for many of their purchases.
While the luxury market has seen this shift at a slower pace, high-end retailers know that the time has come to increase their presence in the digital space. According to a recent report from eMarketer, global luxury sales will increase online at a compound annual growth rate of 400% more than brick and mortar*. The truth is unavoidable, luxury ecommerce is growing and it’s growing fast.
This is how we came up with the idea for Jewel, a new cash-back loyalty site exclusively focused on luxury retail. Traditionally, luxury retailers have been hesitant to participate in the loyalty space out of concern for how their brand will be perceived and as well as uncertainty surrounding the other brands they’re aligned with. By focusing exclusively on luxury and high-end brands, Jewel has created a platform for retailers to get in front of customers without weakening their brand reputation.
Retaining Brand Equity while Reaching the Aspirational Consumer
The term luxury can be defined in many ways. At Jewel, we view luxury items not just in terms of price, but we also look at quality, exclusiveness, and the positioning of a brand in the marketplace. Brands who partner with Jewel are guaranteed that they are only showcased beside other like brands and are represented in a way that enhances their standing.
While many luxury brands don’t typically target discount shoppers, data** shows that everyone, regardless of income, appreciates good value. And all retailers, including luxury brands, are looking for new customers. Jewel offers consumers a curated online boutique of top brands that can be purchased while saving money at the same time. Customers earn savings, while advertisers have the chance to reach previously untapped and incremental consumers.
Creating a Partnership within the Loyalty Model
In tandem, Jewel ensures that our partners are enhancing and building their brand integrity while gaining new customers at the same time. In the future, we’re thinking about providing advertisers with anonymized demographic data (IE: age, average income, location, etc) so they can ensure they are targeting new consumers and optimizing for each audience. Our platform provides both consumers and brands a way to create new and beneficial relationships.
Jewel: Detroit’s Newest Diamond
In our first month since launch, we are already partnered with over 150 premium brands and have engaged with customers in all 50 states. Based in Detroit, we are proud to be among some of the fastest growing startups in the country. One of the best parts about running a startup is being part of the entrepreneurial community in which you live. I recently moved back from NYC, where I was an early team member at Jet.com, to return home to Detroit to launch Jewel. Detroit is a city with grit, energy, and passion. There’s no better place to launch a business, and with our amazing team, and from our headquarters in Detroit, MI we hope to redefine how luxury goods are sold online.
Andrew Landau is the founder of luxury loyalty website Jewel and a University of Michigan alumn.
**Wall Street Journal