RAPAPORT... We’re the poster child of what is happening in the U.S. economy right now,” explained Drew Lawsky, group show director of JA New York. While management declined to release attendance figures for the event, Lawsky conceded that traffic sank at this year’s JA Summer Show compared to 2007. But Lawsky remained upbeat. “There is nothing we would do differently. We worked extremely hard to make this the best show we could. We gave $25 gas cards to the first 150 verified buyers. We developed relationships with nearby parking lots and offered all-day parking for $25.”
Resignation RulesExhibitors overall tended to agree that the low turnout was beyond show management’s control, given the state of the economy, and many seemed resigned to the situation. “I think JA does a good job, considering. They have not dropped the ball on anything,” said Ed Werner, a sales representative at William Levine Fine Jewels in Chicago.
“Everything all over is quiet,” recognized Avi Simkhai, director of Kanton Diamonds in New York.
“Even on the more expensive 3- to 6-carat stones, I don’t see people looking. We have big stones right in the booth, priced well. Overall, it looks like the market is on hold,” summarized A. Ben Oz, the chief executive officer (CEO) of Direct Diamond Network in New York. Oz doesn’t think flagging sales could be avoided. “At first, I wondered if I needed to change something I was doing. But looking around, I don’t see others meeting with people and shaking hands. I see them sitting in their booths as well.”
Martin Pulewitz, vice president of sales at Timeless Designs in New York, commented on the event, which was held July 27 to 30. “The first two days were acceptable. The last two days were not needed. But you have to be here. You have to see people.”
At the Gabriel & Co. booth, Lynn C. Grimm, regional sales manager for the New York City-based firm, concurred that JA continues to be integral to the company’s sales strategy. “Here’s our philosophy: We have 9,000 items in our line. How much can our salespeople carry? We try to do it online and with books but, in order to show them the whole thing, we’ve got to get them to a show.”
In Search of Bridal ValueSo what did sell? “The only thing they buy is the cheaper bridal. They’ve got to have that or no girl,” quipped Shawn Davaran, president of Triple X Diamonds in New York.
The firm reported that 1-carat round stones were its most popular item.
“Retailers are looking for fast turn; that area is bridal in particular,” stated Simkhai. “Fresh product and bridal are a big consideration. We’ve also seen some sales in bigger color,” noted Larry Seltzer, an account representative at Coast Diamond in Los Angeles, California.
Susan Michel reported that her eponymous New York–based company’s new silver line was very popular, partly due to its lower price. Sushma Kotahwala, director of Vinod Kotahwala in New York, saw good demand for black diamond melee.
In some cases, demand varied widely. “The big key is developing product so when people want to see fresh, new designs, we have them,” asserted Seltzer. On the other hand, Werner said his clients are only filling in. “I don’t think people are going out on a limb and trying new things right now.”
OUTSMARTING THE SLUMP
“We had low expectations and exceeded them on the first day,” proclaimed Werner. The company’s game plan is based on the realities of the market, “concentrating on the higher- and lower-end customer, offering good payment terms — paying for it in January is quite an incentive — and we deliver right away.”
Designer Suzanne Kalan, of the Los Angeles firm that bears her name, explained that her team stays in town for the ENK Accessories Circuit and Intermezzo Collections shows, from August 3 to 5, so they can target higher-end clothing and accessory stores. There, “price is not an issue if the style is right,” she contended. Kalan saw “a lot of new independent stores at JA, more than normal. That was really unusual.”
LOGGING FACE TIMEFor some, sales at the JA Summer Show are increasingly taking a back seat. “Shows are less of a buying experience now. They come to talk,” observed Davaran. “For us, it’s like public relations, so they can see your face,” stated Simkhai.
The sparse crowd may not bode well for the Christmas season. “Listening to the people, I am really scared for the holidays,” confessed Parag Sanghvi, president of Sejal in New York. “We are hoping the market picks up after August,” stated Kotahwala.
Regardless, there was notable good news. “Certain pockets of the country are doing well. We’ve noticed people from California, Texas and Utah. I guess it’s not just a regional show like we thought,” concluded Werner.
Article from the Rapaport Magazine - September 2008. To subscribe click here.