RAPAPORT... Organizers of the 17th Annual JCK Las Vegas show, held last month, announced that they “delivered over 20,000 jewelry retailers” from 72 countries to 3,100 exhibiting companies. “Although retailers and exhibitors arrived at the show with low expectations due to economic conditions, we are thrilled to report that so many of our exhibitors and attendees were able to connect,” stated Dave Bonaparte, group vice president of JCK Events. Estimates from exhibitors on the floor indicated traffic dropped in the realm of 30 percent compared to 2007.
ATTENDANCE SLUMPS
The overwhelmingly American crowd spread out thinly in the echoing halls, but the gathering did include a few cheery, deep-pocketed Texans. The second-biggest group appeared to be a small number of Canadians enjoying their newly acquired spending power in the U.S. Virtually no Europeans were in sight — perhaps preferring to do their shopping at BaselWorld. An Asian or Indian customer occasionally passed by, on the lookout for better-quality goods. Tom Chatham, president of Chatham in San Francisco, California, observed, “You could feel the difference in town. Any restaurant was easy to get into.”
“Fear and uncertainty were prevalent among the buyers. We had numerous last-minute cancellations of appointments,” reported Amir Goldfiener, the owner of Rahaminov Diamonds in Los Angeles, California. “We met with several major retailers and basically they are in a holding pattern,” admitted Ben Moller, sales manager of E. Schreiber in New York City.
There was plenty of bad news to dwell on. The economy, gas prices, the housing crisis, metals prices and increases to the Rap price list were on everyone’s mind. Having the electricity go out — twice — in about one-third of the Hong Kong pavilion on the first day didn’t exactly boost confidence, either. Fire alarms blared while speakers urged attendees to “please be patient while we investigate the cause” on several occasions.
Rakesh Upadhyaya from Allied Creations in Los Angeles believes gas prices had an effect that some might not be aware of. “People who used to drive here from California didn’t come,” he said. But the biggest factor was obviously the economy as a whole. “Luxury is not a priority when people cannot sell their houses,” remarked Anita Brummund, public relations for Jaipur, India–based Dwarkas. And who could blame them? “I feel pinched every time I fill up, definitely,” admitted Devang Jhaveri, vice president of Sierra Diamonds in Fort Lee, New Jersey.
The show notably lacked a singular hot-ticket item to generate buzz. Journeys, circle pendants and right-hand rings are fading in popularity by all accounts, with no clear-cut “must-have” item to take their place. “People prefer to have demand first, then they look for the purchase,” contended Brummund. Rings and the bridal category remained the top sellers for many booths.
PLANNING BUILT PROFITSThough traffic in the aisles languished, exhibitors with appointments and a smart game plan asserted they were impressed with their results. “We advertised pretty heavily,” reported Shailendra Sacheti of M.S. International in
Houston, Texas, adding that the company put a large banner in the lobby. “Just to give it a personal touch,” they called their clients and reminded them they would be there. At New York’s Gabriel & Co., Krista Retto, director of marketing and corporate strategy, attributed its busy booth to “preshow readiness.” The team made sure independent jewelers “knew to come see us,” by sending out email blasts, a mailer, statement stuffers and “beautiful invitations.” Two weeks before the show, the entire staff focused on calls to clients.
Solomon Berk at First Class Trading and Co. in Brooklyn, New York, explained, “We didn’t advertise this year but we called all our potential customers. We didn’t pressure them for appointments, but we gave them special prices and discounts. Just a lot of phone work. We had quality buyers interested in buying.” Even simple tweaks sometimes made a difference. “Our setup is different. We put more merchandise in the showcases. I think we are doing better than last year. We have new customers,” noted Parviz Neman of Neman Jewelry Imports in New York.
Increases in the Rapaport price list caused more than a little grumbling. In a special notice to RapNet members, Martin Rapaport stressed that the jump was designed to eliminate premiums above the list and urged sellers not to increase their prices, but Mohamad Bazzy at Pristine Diamonds, based in Antwerp, confirmed that, “Everybody is using the new list with the same discounts.” Tight margins were partly to blame. “With the rough prices what they are, I want to keep that 20 percent. But we are happy as long as we can sell,” he remarked. Those lucky enough to offer stones that didn’t go up may have fared best. According to Pesach Bernat, general manager of Avnit Diamonds in Ramat Gan, Israel, “People are buying what raised in price the least.”
At Seren Diamond, Ilan Seren remarked, “This is not what we had hoped for.” The new strategy? The Los Angeles–based fancy colored diamond specialists will be “focusing more on the Far East.” The changing market means sellers must adapt to survive. “We have to think about it because everyone is looking for low-priced items. Maybe we have to slash our margins,” noted Upadhyaya. “We are seeking out suburbs and other areas where people are better off,” stated Berk.
ROOM TO IMPROVE Exhibitors mentioned several ways JCK could help boost sales. The granddaddy of trade shows may be getting unwieldy and intractable as it ages. “Everyone says it’s too big. Buyers end up not going places where they wanted to go because they get so tired,” declared Sacheti. Chatham expressed frustration that it is difficult to move a booth, with “too many favors being done and too many ‘special’ places.” In a year when foreign buyers had immense purchasing power, Goldfiener felt “there weren’t enough of them,” and hoped that management will concentrate on attracting more in 2009.
Article from the Rapaport Magazine - July 2008. To subscribe click here.