RAPAPORT... It’s all about the Ducats,” “It’s all about the Yen” and “It’s all about the Greenbacks” declared buttons at American Gem Society’s (AGS) International Conclave in Seattle in April. AGS made a strong push for its members to improve their marketing savvy so they can remain competitive and boost the bottom line. Speakers such as Malcolm Gladwell, author of The Tipping Point and Blink, and Martin Lindstrom, author of Clicks, Bricks & Brands and BRAND Sense, helped clarify how to get on the branding bandwagon and sort out which marketing strategies produce reliable results.
MAVEN TRAPMarketers urged retailers to get a fresh perspective on their business. “You’re not selling diamonds, you’re not selling jewelry, you’re selling emotions. If I remove your logo, is there anything left?” Lindstrom asked. He suggested that retailers explore their stores blindfolded to focus on impressions beyond the visual that communicate to consumers. “If I appeal to three senses at once in a strategic way, it doubles the effectiveness of a brand,” he contended.
Gladwell used the example of the fall of the Berlin Wall to illustrate how change occurs. “We think that the bigger the challenge, the longer and harder the change is going to have to be to bring about any kind of transformation. That assumption is false. Change, both positive and negative, is going to be faster than you think.” Gladwell also discussed “maven traps,” which are events that attract an industry’s most passionate and knowledgeable consumers. If mavens have an exceptional experience with a brand, they will tell their friends, which opens up an invaluable marketing opportunity. If an industry can locate and market to its most dedicated consumers, Gladwell believes that these mavens will do much of the selling for the brand themselves.
The “Inside the Mind of the Female Shopper” presentation proved that you can’t market effectively without doing some homework. In a survey by J. Walter Thompson’s Diamond Promotion Service (DPS) in partnership with A.C. Nielson, 80 percent of women stated they would prefer to spend time in a clothing boutique or a bookstore rather than a jewelry store. The same research also showed that the number one thing retailers can do to increase sales to the all-important female demographic is to let women see prices, followed by eliminating pressure from salespeople, allowing more merchandise to be tried on and providing a better explanation of how diamonds are priced. Ironically, the number one thing men want in a jewelry store is a chair.
SIMPLE EXPLANATION
The “AGS Appraisal Panel” drove home the point that half the trick of being a successful appraiser can be found in a skilled “bedside manner.” Cos Altobelli, owner of Altobelli Jewelers in North Hollywood, California, and a graduate gemologist (GG) who helped establish AGS’s certified gemologist appraiser (CGA) program, was joined in the discussion by Richard Drucker, a gemologist, journalist and the publisher of The GemGuide; Cindy Konney, an independent certified gemologist appraiser (ICGA) at AGS and owner of the New England Gemological Laboratory and Appraisal Services in Old Lyme, Connecticut, and John Carter, a certified gemologist appraiser and the executive vice president of Jack Lewis Fine Jewelry in Bloomington, Illinois. They all agreed that most problems with clients stem from misunderstandings, and that taking the time to carefully explain the intricacies of the appraisal process can save time, money and reputations. Konney claimed that she never runs into a problem pricing her appraisals, because she sits down with her clients and makes sure they understand the entire procedure. She prides herself most on educating her clients and focuses her energies on “creating an appreciation for jewelry,” encouraging her clients to insure and wear even their most prized pieces.
CUT CLARIFICATIONTo help jewelers better understand cut grades, AGS and Gemological Institute of America (GIA) joined forces to clear up any confusion about their cut grade systems, stating that they are more similar than they may seem. Attendees seemed relieved to learn that many of the categories the cut grading systems look at, such as craftsmanship versus finish, are very similar. Diane Flora, director of education at AGS, explained that the main difference is in methodology. AGS analyzes individual measurements of cut grades based on software that tracks every ray of light in a diamond, while GIA focuses on average measurements of thresholds that can be seen by most people, based on extensive research.
Another topic that strikes fear in jewelers’ hearts is diamond treatments. Ric Taylor, a certified gemologist (CG) and GIA instructor, reviewed the treatments that can change diamond color and apparent clarity. “It is really important that if you work with valuable diamonds, especially fancy colored diamonds, that you have a relationship with a gemological laboratory that can test for that origin and whether that color is natural or color-treated,” he contends. That said, Taylor reviewed what AGS members can look out for to protect themselves as much as possible. High-pressure/high-temperature (HPHT) treated diamonds may exhibit angular color zoning, a striking geometric coloration. Natural green diamonds are usually very light, so intense yellow-greens should be closely scrutinized. But Taylor stressed that the biggest threat in diamond treatments right now is “parcels of intense and vivid yellow melee mixed together with treated diamonds.”
VOCABULARY LESSONDavid Grunberger, of Grunberger Diamonds, and Bill Hoefer, of Hoefer’s Gemological Services, described the terminology used by melee wholesalers as a “hybrid of the universally accepted language of diamonds.” Long-time industry veterans were surprised to hear that in the world of melee, a diamond’s upper girdle is called the crown halves. The lower girdle is referred to as the pavilion halves, while the bezel is called the crown mains. Color also has different terminology, so buyers should be aware that faint yellow to very light yellow is considered to be dark yellow L-M-N to melee dealers. Size differs as well, with weights up to 1/5 carat sometimes being called 1/10 melee. “Melee is perhaps the most expensive thing you will ever buy by weight,” claimed Hoefer, urging everyone to familiarize themselves with the vocabulary.
LOOKING AHEADRuth Batson, AGS’s executive director and chief executive officer (CEO), reviewed a litany of the society’s financial and marketing success stories of the past year, including the fact that AGS paid off the mortgage on the Robert M. Shipley campus in Las Vegas, Nevada. She also declared that the society’s website, ags.org, had moved up from a ranking of six million two years ago to a ranking of 80,934, cracking the top 100,000 most popular websites.
The Conclave also kicked off the launch of AGS’s new custom sales training, designed specifically for AGS in tandem with a committee of AGS members and staff. The courses can be taken in person, with the first class taking place during JCK Las Vegas, or as six online courses. Also unveiled was “Diamond Buying 101,” a new video guide for consumers who are considering purchasing a diamond. The video, available on AGSLab.com and on YouTube.com, explains the 4Cs and offers questions to ask jewelers.
Ronnie Cox was nominated and voted in as chairman with a chorus of “ayes.” He replaced Clayton Bromberg, who had held the post since 2005. Cox played an integral role in founding the AGS Laboratories and most recently served as vice chairman. Cox breezily declared that he would do “nothing” during his tenure, and instead focus on advancing and enhancing the many new programs of the previous administration.
The highlight of Conclave weekend for many longtime members is the Robert M. Shipley Award Luncheon. The 2008 award was presented to Glenn and Susan Rothman, the thrilled husband-and-wife owners of Hearts on Fire. It marked the first time the award was given to two people, and the second time a woman has won the award. After the ceremony, AGS announced that next year it will celebrate Conclave’s 75th anniversary in Chicago, fittingly, where the first Conclave was held.
Article from the Rapaport Magazine - May 2008. To subscribe click here.