Profiling a niche market and establishing an entrepreneurial strategy for a niche brand; the costume jewellery sector in Switzerland

This study of the exclusive Swiss costume jewellery brand para ti serves as an example of effectively profiling a niche segment and establishing a growth strategy for a niche brand. The history of costume jewellery goes back to ancient Egyptians, who were the first to produce glass, the major component of para ti products. The term ‘costume jewellery’ was though only first used one hundred years ago and there are now many variants of products within its orbit. The research indicates that Swiss costume jewellery consumers are both price sensitive and quality oriented, with women buying mainly for themselves rather than receiving it as a gift, looking for products that they can wear every day and usually purchasing from boutiques or specialist retailers who care about the jewellery’s story. Surveys and interviews were conducted with a sample of Swiss adults and a supplier was interviewed to help better understand the supply chain. Among other observations, primary research found that most of the survey respondents buy one piece of costume jewellery from time to time, with bracelets and rings the most popular. Respondents were willing to pay Swiss Francs CHF50-200 (€45-190; £40-160; $50-205) for handmade costume jewellery. Interviews showed that there is a clear trend towards fine jewellery and new collections, with different styles preferred in summer and winter. The recommendations from the research were that para ti should elaborate its brand identity and emphasize aspects of the brand’s story through media such as Facebook and Instagram. Since para ti imports jewellery from Ibiza, the brand should also take advantage of the ongoing hype around the island. Moreover, para ti should clearly position itself as an exclusive costume jewellery brand that offers handcrafted pieces of exceptional design and quality at a reasonable price. The brand should also broaden its focus from millennials to older groups. Strategically, para ti could seek to partner with a boutique such as Kowä, relaunch its online store, consider opening its own store in Zurich, offer seasonal and men’s collections, explore an expanded supplier base and extend its range to include precious metals.