Managing reputation risk has always been an important consideration for jewellery retailers, and it’s widely accepted that today’s landscape, dominated by social media, is more unforgiving than ever – but is that really true?
Perhaps better described as anti-social media, the activity has certainly reshaped how businesspeople think about public perception and customer relationships because it has created a never-ending scale of risk and reward.
Indeed, even though social media is ‘free’, it can be very costly!
This month, Jeweller reflects on one of the industry’s most infamous self-inflicted implosions - the Ratners Jewellery controversy in the early 1990s - following a speech by CEO Gerald Ratner that turned many consumers from friends into foes.
For those unfamiliar with the tale, Ratner made several jokes during a speech at a business function, using his product quality as the punchline. Coming from a man considered by many to be the darling of the UK business world, the humour was intended to be charmingly self-deprecatory.
What transpired, however, was something of a reverse Cinderella story, and almost overnight, Ratner’s carriage turned into a pumpkin. In the months that followed, the company’s share price plummeted, and hundreds of stores were eventually closed.
Beyond the anniversary of that infamous speech, it’s a story worth remembering for today's jewellery store owners for other reasons. The speech took place in 1991 - the World Wide Web was in its infancy - and public backlash was whipped into a frenzy by rapidly spreading word-of-mouth, newspaper headlines, and talk-show appearances.
It’s widely accepted that today’s jewellery retailers operate in a far more precarious environment, shaped by the reach of the internet and social media. While research confirms that consumers still value the tactile in-store experience, particularly when shopping for quality jewellery, their journey increasingly begins online. Indeed, reviews and ratings help form perceptions of retail businesses long before consumers step through the doors.
In this context, reputational risk is heightened. A single negative review, particularly when amplified or left unaddressed, can quickly influence a broader audience and erode trust. The challenge for jewellery store owners is managing visibility in an arena where reputational gains are incremental; however, damage can be immediate and severe.
Most experts would say that managing a social media presence is no longer an option for jewellery store owners; it is a necessity. Yet for many retailers, it raises a strategic question: how do you participate in the public forum without harming your reputation? Is the juice worth the squeeze?
The guidance offered by business experts on managing negative online feedback is, at its core, common sense; however, many retailers falter. Responding promptly and politely is obvious. Equally, it is important to remember that responses will be read by everyone – not just the complainant.
Where possible, the goal should be to move the conversation into a private channel, limiting prolonged public back-and-forth that can undermine consumer confidence regardless of who is ‘right’.
Equally important is the discipline to avoid escalation. Engaging in arguments rarely changes minds and often diminishes business perception. A measured, factual tone, paired with a clear willingness to resolve the issue, will always outperform defensiveness.
As the saying goes, when you argue with a fool in the street, passersby cannot tell the difference. If you wrestle with a pig, you both get dirty, and worse, the pig enjoys it.
Establishing guidelines for tone, response times, and escalation ensures that staff handle feedback consistently. Finally, retailers should view criticism as knowledge that can reveal patterns in complaints, exposing operational blind spots that, when addressed, strengthen the business well beyond the immediate interaction.
A recent example reinforces how easily intent can be overshadowed by perception. Chi Mai, co-founder of S-kin Studio in Melbourne, was compelled to issue a public apology after an Instagram campaign for a product launch drew swift backlash.
The content, based on a popular ‘trip and fall’ format, was criticised by viewers who felt it trivialised homelessness.
To her credit, the response was immediate, direct, and accountable. By acknowledging the misstep without qualification and avoiding defensiveness, the business limited the controversy's lifespan. It serves as a reminder that trends do not translate seamlessly across contexts, and what resonates in one corner of the internet may not elsewhere.
For retailers, the lesson is twofold. Apply greater scrutiny to reactive, trend-driven marketing, and ensure that when mistakes occur, the response is measured and decisive.
For all the emphasis placed on the dangers of online feedback, it is worth asking whether the risk itself is truly new or simply more visible. Long before review platforms and social media, reputations in the jewellery trade were built and broken through word of mouth, often beyond the retailer's control.
What has changed is not the existence of scrutiny, but its visibility. What consumers may have once said behind your back is now said to you on social media, and how you respond is up to you. What was once said behind closed doors is now said in public.
In that sense, the modern environment has not created a more hostile marketplace, but a more transparent one. The illusion of control has been stripped away and exposed. Today’s retailers are not managing a new kind of risk; they are operating in a system where the same risks are recorded and amplified.
It’s an environment that encourages a new mindset. The goal shouldn’t be avoiding every misstep, because everyone makes mistakes. The objective, instead, should be to ensure that your business is designed to endure.
Reputation is no longer what a business says about itself, but what can be consistently observed by others. In that respect, the fundamentals have not changed.
While the digital world may feel intimidating, commonsense action remains the turnkey solution to managing your reputation. It was the same for Gerald Ratner 35 years ago, and it’s the same for retailers today.
That’s simply good business.
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