RetailScope

RAPAPORT... The last stop for diamonds is the retail store. Here is a behind-the-scenes look at what is happening at retail in the U.S.

Luxury Conference Promotes Shift to Eco-Friendly Production

Stephen Lussier, executive director at De Beers, spoke at the Sustainable Luxury Conference in New Delhi, India, the International Herald Tribune reported. Lussier stated that one of the most important aspects of sustainable luxury is that it requires businesses to take on complex global problems that historically had been the domain of governments or charitable organizations.

He cited the example of De Beers working with the UN and nongovernmental organizations (NGOs) to eliminate conflict diamonds, according to the newspaper.

François-Henri Pinault, chairman and chief executive officer (CEO) of the French luxury giant PPR, told the conference that the luxury business could have a large impact due to its role as a trendsetter. PPR is working across its brands, ranging from Gucci to Puma, to reduce energy consumption and employ fair labor practices.*

JA Claims Victory Over NY Luxury Tax

Jewelers of America (JA) announced that the New York legislature passed the state’s fiscal year 2009 to 2010 budget without imposing the proposed 5 percent luxury tax on jewelry and watches priced over $20,000. In a written statement, Matthew A. Runci, JA’s president and chief executive officer (CEO), called the news “a huge victory for jewelers in New York State.”

In January, JA and the American Watch Association hired a lobbyist to advocate on the industry’s behalf and organized an antiluxury-tax letter and a grassroots fundraising campaign. Sample letters, petitions and the addresses of key New York State legislators and Governor Paterson were provided to retailers and suppliers.

The news follows JA’s recent success in Illinois, where a similar luxury tax proposal was dropped by the Illinois State Legislature’s Revenue and Finance Committee. JA also launched an antiluxury-tax letter and fundraising campaign in this state, reaching out to its state affiliate, the Illinois Jewelers Association (IJA), and the nonaffiliated Chicago Jewelers Association (CJA).

JA Show Launches New Marketing Campaign

The JA New York Summer show, scheduled from July 26 to 29, 2009, will present a retailer testimonial marketing campaign featuring veteran JA New York retailers. Julianna Chu, JA New York’s marketing manager, explained that the campaign illustrates the reasons that retailers attend JA New York shows by using scenarios that are relatable for other jewelry retailers.

The participating retailers were selected from four categories: couture, international, nontraditional and New York City region. Participants include Mark and Candy Udell of London Jewelers; Luna and Jonathan Zemmol of The Yellow Door; Marc Green of Lux Bond & Green; Seth Bloomgarden of Belenky Brothers; and Tara Silberberg of The Clay Pot.

The campaign will be featured in various industry publications, according to a statement from the group. Drew Lawsky, group director of the JA New York show, added, “We are doing everything we can to bring innovative ideas to the summer show, from promoting the importance of New York City as the jewelry capital to adding innovative and market-driven topics on the show floor to help attendees stay ahead of market challenges.”

PGI Reveals Men’s Platinum Buying Triggers

Platinum Guild International USA (PGI-USA) completed a series of focus groups designed to clarify men’s bridal jewelry shopping attitudes and uncover what helps them make purchasing decisions. PGI-USA’s findings showed that men were more likely to purchase platinum bridal jewelry when a sales associate explained and demonstrated:

•     platinum’s naturally white color
•     platinum’s ability to hold a diamond securely
•     platinum’s heft and durability
•     platinum’s rarity compared to gold
•     the idea of “metal harmony” between the engagement ring and their wedding bands.

The focus groups, held in Atlanta and Chicago, included interviews with pre-engaged, engaged and married men between the ages of 24 and 53. For PGI-USA’s free tips and training, visit www.platinumlearning.com.

Most Consumers Don’t Know When They Will Resume Spending

The majority of consumers polled by the Jewelry Consumer Opinion Council (JCOC) were not ready to spend money on jewelry — and 58 percent overall said they had no idea when they’d feel comfortable spending on discretionary items again. JCOC asked 666 panelists to weigh in on their willingness to spend on nonessential consumer goods. Ten percent said they’d feel comfortable spending within six months, another 10 percent said they’d spend within 12 months and 15 percent said it would take more than a year for them to be comfortable spending on nonessentials again.

Jewelers Combat Recession with New Services

As customers rein in their jewelry spending, jewelers are finding innovative ways to keep their businesses going, the Fresno Bee reported. George Karkazian told the newspaper that more customers are requesting repairs at his two Karkazian Jewelers stores in California’s San Joaquin Valley. At Michael’s Custom Jewelry in Visalia, California, repair business has increased about 15 percent, the newspaper noted. Sometimes, there’s a diamond ring that needs new prongs, while other times, it’s eyeglass frames, handles on silver coffee pots or even dental bridges.

Orloff Jewelers in Fig Garden Village, California has made buying gold a specialty. James Orloff, shop owner, has hosted several gold-buying events, with people sometimes lining up for hours, according to the Fresno Bee. “Although I’m not making a big profit, I’m making a lot more little profits, and that keeps my boat floating,” he told the newspaper.*

Austin & Warburton Shift Business to Web

Brenda and Craig Warburton are closing their 50-year-old Austin & Warburton Fine Jewelers business in Ann Arbor, Michigan, explaining that they don’t need their storefront, according to the Ann Arbor News. The couple has a strong wholesale business and a burgeoning online retail presence. They can serve custom jewelry customers just as well from their manufacturing operation and office, cutting overhead costs by 90 percent, Craig Warburton told the newspaper.

The Warburtons will serve their clientele at two ecommerce websites, www.austinandwarburton.com and www.theparentandchild.com. The Austin & Warburton store is holding a sale offering discounts of up to 70 percent and will close by May 30, Ann Arbor News reported. The lifetime warranty that the company is known for will continue, Craig Warburton noted.*

James Avery Launches Texas Store

Jeweler James Avery opened a new location in Georgetown, Texas, bringing the total number of James Avery stores to 50. The chain reached the landmark during its 55th year in business. The store features a selection of handcrafted designs in various metals, sizes and gemstones. James Avery has locations across Texas, Oklahoma, Colorado, Louisiana and Georgia and plans to open a new store in Birmingham, Alabama in August.

JamesAllen.com Offers ‘Perfectly Set’ Program

Etailer JamesAllen.com launched its one-step Perfectly Set™ engagement ring program. Consumers can select an engagement ring preset with a diamond, but can also upgrade the diamond by selecting among six stones chosen by the company’s experts. Perfectly Set shoppers can still view their specific diamond through a virtual loupe and in a 3-D movie, as with all JamesAllen.com diamonds.

Jewelry.com Adds Retailer Directory

Jewelry.com now offers a new retailer directory and bills itself as the “Zagat” of the jewelry world in covering multichannel national and regional fine jewelry stores in addition to its eight founding partners. Approximately 30,000 items are aggregated on the site, according to a statement from the etailer. Jewelry.com’s founding retail partners are Fred Meyer, Gordon’s, JCPenney, Kay Jewelers, Littman Jewelers, Macy’s, Sears and Zales.

*Additional reporting by Acquire Media.
 

Article from the Rapaport Magazine - May 2009. To subscribe click here.