Kay primarily targets the “generous sentimentalist,” a romantically-motivated gifting buyer and Zales aims for the “bold statement maker,” the self-purchaser who expresses herself and her style through jewelry. The research revealed that these two purchase motivations are about equally weighted within the jewelry category.Īnd that became the lever to differentiate the Kay and Zales brands. One is gifting, particularly romantic gifting including bridal, and the other is self-purchase. The analysis hit upon the two primary reasons consumers buy jewelry. It’s work we completed about a year ago,” she shares. “We started with a white sheet of paper and gathered data about attitudinal, demographic and price point differences to develop our banner value proposition. With Drosos’ previous experience managing competing shampoo brands for Proctor and Gamble, she applied the brand portfolio strategy she learned to the Kay and Zales challenge. “Even when Zales became part of our portfolio, we still let them compete against each other too much, running a big promotion at Kay one week and the next at Zales.” “Historically, we didn’t do a great job differentiating those banners,” Drosos acknowledges. Uniquely differentiating these two brands is the key. With Kay accounting for 38% of revenue and Zales 22%, making the most of these two brands is critical for Signet to reach its goal of capturing 10% of jewelry retail market share, or $9 billion, up from 6% currently. Fierce competitors before Signet acquired Zales in 2014, these two brands have largely operated at cross-purposes until recently. Sharing space in the middle of the mid-market are Kay and Zales. Recognizing that the Piercing Pagoda name doesn’t accurately reflect the modernity of its product or service offering, it is testing new store formats and launching a brand refresh which will include opening up to 100 more locations in fiscal 2022. With locations designed for efficiency, it has more than 135 stores now on track to deliver $1 million in sales this year. Besides piercing services, it also specializes in fashion gold, silver and diamond jewelry.ĭrosos foresees significant opportunities for the Piercing Pagoda brand with its first-quarter revenues bettering any quarter ever in its history, including even fourth quarters. Shoring up the lower-end of the mid-range is Piercing Pagoda, operating through mall-based kiosks as well as online, and generating 6% of corporate revenues last year. And consistent with its luxury positioning, Jared has been developing its customization offerings, installing a Foundry studio in 50 locations to custom design a piece on the spot by year’s end.
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