Redefining core markets and growth possibilities despite the pressures of low-quality offshore competition
A New England-based findings manufacturer with production facilities in both Massachusetts and China, ABC Co. has been a dominant player in the jewelry industry for over 30 years. Producing the pieces and components that become an integral part of finished jewelry, the company has largely focused on “clutches” — used to secure an earring to the wearer’s earlobe. ABC Co. is certified to meet international standards for quality and safety. Its client list includes household-name retailers such as JC Penney, Swarovski, Macy’s and several other well known names.
Despite several new product introductions over the past five years, sales for ABC Co. had flatlined. Price competition from low-quality offshore competitors kept driving its component prices down and eroding its margins. It needed a way to break out of the commodity trap, increase margins and minimize offshore competition.
ABC Co. decided the solution was to graduate to the highend, precious metal jewelry market. Over a 12-month period, it developed a patented 14kt solid gold earring back that addressed the needs of luxury jewelry manufacturers. Through an innovative design, this low-cost, easy-to use product was fully compliant with the 14kt gold standard.
Since its current customers were traditionally focused on lowend jewelry components, ABC Co. set its sights on attracting an influential distribution partner to help introduce and distribute this new product to the high-end luxury audience. With no formal marketing department in place, the company enlisted TribalVision to prepare a marketing strategy