Valentine's Day is right around the corner, and the eternal question looms in the air – what do you get your significant other? Well, as we have explored in previous blog posts, personalised gifts are a big business. More and more consumers are demanding gifts that are unique and personal to their recipients. One particular sector which has seen a huge rise in demand for personalisation is jewellery. If you're not offering personalisation as a part of your jewellery product offering, then it's at times such as Christmas and Valentine's Day where you are potentially missing out on some serious revenue! Don't believe us? Let's do the maths.
Let's crunch some numbers.
In 2015, a YouGov survey commissioned by PhotoBox Group estimated that UK shoppers were on course to spend £1bn per annum on personalised gifts. The survey suggested that more than 27 million UK consumers had purchased a personalised gift of some description in the past 12 months. Research by Deloitte into the customisation and personalisation sector, also carried out in 2015, found that more than 50% of consumers were interested in buying personalised products or services, with one in five consumers who expressed an interest in purchasing personalised products saying they would be prepared to pay a 20% price premium.
So, we know that there is a vast demand for personalised gifts, and we know consumers are willing to pay more for them. But, where do laser engravers fit in?
Personalising with a Laser Engraving Machine
The art of making jewellery is a craft that is as old as time. Although the manufacturing techniques and styles have changed and evolved throughout the different eras, the appeal of jewellery has remained the same. The visual quality is borne of the rare and precious materials used in making each jewellery piece, as well as from the skill and expertise of the craftsmen behind them.
The traditional method of adding hallmarks and engravings to a piece of jewellery involved ‘striking’ them with punches. This made a permanent indentation on the jewellery, but the tremendous force needed to strike this indentation can also cause deformation or damage to the piece of jewellery being marked.
So, What's the Incentive?
Apart from customer satisfaction, there is a monetary value and incentive from a business perspective. Typically a personalisation will add value to the original product - our customers have suggested an increase in value of 25% on average, though this can be case-specific. At Needham Laser Technologies we can offer a finance package spread over 5 years for the purchase of our systems.
As a business if you buy an N-Lase Desktop through finance, your monthly repayments will be on average £300 per calendar month, so you'll be able to recoup the monthly costs by doing a handful of items per month.
You sell a ring worth £200 to a customer who then wants it engraving for their partner, you are able to offer a personalisation service whilst they grab a coffee, the cost of the personalisation is £50 (25% of the cost of the product). The customer agrees and purchases the ring with the added personalisation, after doing this for six customers in the month the finance repayments for the laser are covered and any more carried out is profit. There are no other costs related to owning a laser and the power output needed to power the laser is powered through the mains electrics and uses on average the equivalent power of a standard fridge freezer.
In addition to the potential ROI, the reliability and accuracy of the marks produced by a laser engraving machine mean they are a very attractive investment for jewellery manufacturers and sellers. The marks made by laser engraving are permanent, legible, and abrasion-resistant. These are essential qualities for jewellery pieces that are meant to last a lifetime and are sometimes even passed down generations.
You Are not Just Limited to Jewellery, either.
A jewellery laser engraving machine can work with a multitude of common metals used in jewellery – gold, silver, platinum, brass, or any kind of alloy. It can also be used for less traditional materials such as tungsten carbide, titanium, or palladium. There is a very long list of possible applications of laser engraving including rings, bracelets, lockets, watches, spectacles, eyeglasses cases, earrings, belt buckles, and keychains.
Seize The Market Potential
With analysts expecting the personalised gifts market to continue to grow at a tremendous rate over the next few years – Technavio estimates that global sales of non-photo personalised gifts alone will grow at a compound annual growth rate of around 11% by 2020 – it looks like the UK is well on track towards becoming a personalisation nation. Investing in a precise and speedy method for engraving items such as jewellery can help you to add value to your products, and make them more attractive to consumers who are demanding unique and personalised items. A laser engraving machine could be the perfect solution for you.
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Call: +44(0)1948 660011
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