Digitalization of trade is usually discussed using the example of marketplaces and retail e-commerce. However, less noticeable but no less important changes are taking place in the B2B segment, including the jewelry industry. According to industry reviews, the global jewelry market is growing at an average annual rate of about 5–6%, and by the early 2030s may exceed 550–580 billion USD, with wholesale supply chains and efficiency in assortment management playing a significant role in supporting this growth.
The article examines the practical experience of Kove Jewelry s.r.o., based in the Czech Republic and specializing in wholesale supplies of gold jewelry from Italy and Turkey for B2B clients in the Czech Republic, Slovakia, Poland, and Romania. It shows how the use of simple but systematic data tools — from tracking turnover to segmenting demand by countries and store formats — allows a small family business to operate as a “data-driven” player in the international market. Special attention is given to why attempts at direct retail and online expansion proved less effective compared to deepening the B2B model, and how digital analytics can strengthen — rather than replace — classical expertise in assortment and supply chains.
Introduction
In recent years, the digital agenda in trade has shifted from discussing “whether e-commerce will grow” to discussing data quality, delivery speed, and accuracy in assortment management. The jewelry industry is no exception:
- the global jewelry market continues to expand, relying on income growth in developing countries and stable demand in Europe and North America;
- the share of the online channel is increasing, but offline and B2B formats retain a key role, especially in the premium and traditional segments;
- production centers such as Italy and Turkey are strengthening integration with retail markets of Central and Eastern Europe through wholesale companies working in “fast cycle” order modes.
Against this background, for a small wholesale player it is not enough simply “to be on the market.” It is necessary to understand the structure of demand, sales dynamics by countries, store formats, and product categories. For Kove Jewelry, a family company based in Prague with more than 100 regular B2B clients across four countries, such an approach has become the basis of stable growth: the business consciously abandoned retail and online experiments, focusing on digitalizing precisely the B2B processes.
1) The Digital Context of the Jewelry Industry: Where “Digitalization” Actually Matters
Discussion of technologies in the jewelry sector often focuses on:
- 3D modeling and additive manufacturing;
- virtual try-on and augmented reality for e-commerce;
- blockchain tracking of the origin of precious metals and stones.
All these areas are important, but B2B wholesale relies primarily on other digital elements:
Management of assortment data.
Supplier catalogs, product specifications, photographs, weights, gold purity, and article numbers must be standardized into a unified format and accessible for fast filtering and analysis.
Digitized tracking of sales and turnover.
For a B2B supplier, the following are critical:
- speed of turnover by categories;
- the average time a product remains in the warehouse;
- the dynamics of repeat orders for specific models.
Segmentation of clients and their behavior.
Different countries and store formats demonstrate different order frequencies, consumption structures, and reactions to new items.
Integration with logistics and document workflow.
From cargo status to customs procedures — all steps are increasingly being transferred into digital channels, reducing “manual” delays and errors.
Thus, the key digital transformation in the wholesale jewelry business is not creating another online store, but transitioning to data-driven decision-making.
2) The Architecture of Demand-Oriented Wholesale: Data “from the Ground,” Not Only from the Supplier
The main difference between Kove Jewelry and many classic wholesalers is that procurement planning begins not with price lists from Italian and Turkish factories, but with analysis of sales on clients’ showcases.
In simplified form, the architecture can be described as follows.
2.1. Collection and Structuring of Data
Sources:
- store reports on sales by categories and individual models;
- order history for each B2B client;
- notes from managers on reasons for refusals (a customer asked but did not find the needed format; the model did not fit the price, etc.).
The data are recorded in a single system (CRM/accounting system), where each SKU is assigned a set of attributes: type of product, design, weight category, price range, country of origin.
2.2. Analytics at the Level of Country and Store Format
Segmentation is then built:
- Czechia, Slovakia, Poland, Romania — separate profiles with different demand structures;
- within countries — division by format: classic jewelry retail, shopping-mall store, “family” store in a small town, point in a tourist area.
For each segment, the following are evaluated:
- TOP-10 categories and models by turnover;
- share of “fast” and “slow” items;
- sensitivity to price and origin (Italian/Turkish gold).
2.3. Reverse Planning of Orders for Suppliers
Based on these data, orders to Italy and Turkey are formed:
- a “mandatory list” is created — models that must be available almost constantly;
- positions for testing are determined — new items adapted for specific markets;
- volume constraints are set for categories with higher demand volatility.
Unlike the “warehouse” model, where assortment is formed based on what the manufacturer has in stock, this system aims to minimize dead inventory and accelerate capital turnover.
3) Practical Digital Tools: From Excel to Specialized Systems
It is important to emphasize that this approach does not require implementing heavy ERP platforms immediately. The experience of Kove Jewelry shows that consistent digitalization can proceed step by step:
Basic level: structured Excel + cloud storage.
At the start, it is enough to have:
- a single file/set of files with SKUs and attributes;
- regular updates of sales data;
- use of simple pivot tables and filters.
Intermediate level: CRM/accounting system with analytics.
At the next step, the company introduces:
- individual client history (which models and in what volume they order, how often they return, how they respond to new items);
- integration with warehouse tracking to see stock balances in real time;
- simple reports on turnover and margin.
Advanced level: specialized B2B platforms and API integrations.
As volumes grow, integration becomes relevant:
- with factory IT systems (partial data exchange on availability and production timelines);
- with logistics operators;
- with financial services (credit lines, factoring for B2B clients).
For a family company, the key factor was not having “the most modern” system, but discipline in working with data: a unified format, regular updates, and attention to information quality.
4) Why Digitalization Did Not Save Retail and Online — and Why That’s Fine
Kove Jewelry attempted to enter the retail segment and develop online sales. Despite having a high-quality assortment, these directions did not become growth drivers.
Main reasons:
- the retail jewelry market in Central Europe is highly fragmented and relies on local brands, history, and physical presence;
- online sales of jewelry require significant marketing budgets and brand trust, which is difficult to build quickly “from zero”;
- attempting to combine full retail, e-commerce, and B2B wholesale within a small team would lead to loss of focus.
Digital tools in this case could not compensate for a strategic mismatch: the company’s business model was originally stronger in B2B logistics, demand analytics, and assortment work for stores, rather than in competition for the end consumer.
A conscious decision to abandon further retail expansion and the online store allowed the company to direct efforts to areas where digitalization truly strengthens competitiveness: supply-chain management and B2B interaction.
5) A Family Business as a “Flexible Carrier” of Digital Practices
Skepticism about digital transformation in small family companies is often tied to an image of a “traditional” management style. Real practice can be different.
In the case of Kove Jewelry, the family management model provided several advantages:
Fast adaptation to working with data.
Decisions about implementing new tools (an accounting system, cataloging standards, reporting formats) are made within a small group of people, with no long approval cycles.
Combination of intuition and numbers.
Many years of experience in the jewelry industry make it possible to quickly filter out “noise” in the data and see meaningful signals: distinguishing short-term fashion spikes from sustainable trends.
Shared understanding of the planning horizon.
The family team perceives digitalization not as a “project for the report,” but as a way to protect the business long term — increasing transparency of processes, reducing dependence on specific individuals and “paper” memory.
Digital practices in such a configuration are not imposed from outside but grow out of real needs: first to organize the warehouse, then to understand clients better, and later to synchronize procurement with factories.
6) Lessons for B2B Companies in Related Industries
The experience of Kove Jewelry is relevant not only for the jewelry sector. It can be extrapolated to any B2B fields where:
- the assortment is complex;
- turnover speed and quality of stock management are important;
- several countries and client segments are present.
Key takeaways:
Digitalization starts with accounting, not with a marketplace.
Before entering new online platforms, it is worth ensuring that internal data are structured and reliable.
Sales data matter more than price lists.
Decisions on procurement and assortment must rely on actual behavior of B2B clients, not only on supplier offers.
A family or small format is not an obstacle but an advantage.
A small team adapts faster to new tools when it sees practical value, not a formal requirement.
Not all digital channels must work for every business.
A conscious refusal of inefficient directions (for example, aggressive B2C online) can be a more correct decision than trying to “be everywhere.”
Conclusion
Digital transformation of B2B trade in the jewelry industry is not only about blockchain and virtual try-on. At the level of a small wholesale company, it begins with much more grounded steps:
- organizing assortment data;
- systematic recording and analysis of sales by clients and countries;
- integrating these data into procurement and inventory-management processes.
The experience of Kove Jewelry shows that even a family business based in Prague with a compact team can use digital tools to compete at the international level:
- working with Italy and Turkey as technologically mature production centers;
- serving clients in Czechia, Slovakia, Poland, and Romania using real numbers rather than “a feel for the market”;
- making strategic decisions — including the decision to abandon retail and online — based on analysis, not fashionable trends.
For TechBullion readers, this case is an important reminder: technology has the greatest effect where it strengthens an existing business competence rather than replacing it. In jewelry wholesale, such competence remains a deep understanding of the product and the client, and digital analytics becomes the tool that allows scaling this understanding from the level of “family intuition” to the level of an international trading network.
