An online jewellery store launched in December 2010 is the latest business to adopt a traditional retailing approach. Given that the recent trend has been for traditional bricks-and-mortar retailers to create and launch digital storefronts, Baublebar.com is doing the reverse.
Some might see the move as a modern twist on an “old” trend but the two year-old fashion jewellery and accessories website will open a traditional retail store on New York’s Fifth Avenue this week.
Founded by Daniella Yacobovsky and Amy Jain, the two Harvard Business School graduates had previously worked in investment banking. They told Mashable.com the idea for their online jewellery business came about after they became “friends after bonding over our love for afternoon shopping breaks at Saks Fifth Avenue and despite owning piles of shoes, closets full of handbags and fistfuls of pashminas, fashion jewellery was the one accessory that had yet to capture meaningful space in our closets.”
The duo set about raising US$1 million in 2010 to launch the jewellery website and raised another US$4.5 million in April. The business now has 40 staff and Jain says the company is hoping to open more stores in more cities.
Face to face with customers
One advantage that traditional stores have over online retailers is face-to-face customer interaction and feedback and it’s something that Jain acknowledges as playing a part in the decision to open a bricks-and-mortar store.
“We have learned that our shoppers’ needs go way beyond age demographic and geographic region. They can be much more localised. The rise of popular online sites and social media personalities have created localized trends that BaubleBar wants to know about first, as we have the capabilities to source the exact product they are looking for.
“A local [physical store] presence enables BaubleBar to learn about these trends very quickly. Having ears on the ground and constant dialog with the customers will provide us the information we need to tailor the merchandise of the retail shop, so it satisfies the needs of the local customer,” Jain said.
BaubleBar’s typical price points are between $20 - $120 and the business promotes itself as being fresh with “a steady flow of new arrivals on the site [including additional product introduced every Tuesday and Thursday] allows us to always offer the newest looks,” the company’s website states.
It’s not the first “pure play”, or online-only business, to migrate to a traditional store. The highly successful Net-a-porter.com opened a pop-up outlet in London last year, while the men’s online fashion retailer, Bonobos.com will open a retail showroom next week in Chicago, calling it a “Guideshop”.
Perhaps the leap into the physical world of retailing is recognition that the vast majority of retail transactions still occur offline, especially those that might be considered impulse purchases. Another explanation could be the growth of mobile shopping which can be instrumental in enabling high-profile retailers to bridge the digital and traditional worlds.