Remaining positive may be what propels diamond manufacturers
and wholesalers through the rest of the year, since most have described the
pace of sales as ranging from quiet to extremely quiet.
“It is usually slow around this time because of the Jewish
holidays, but it almost feels as if there is little interest in diamonds,”
noted Jay Moskovitz, vice president of New York City-based wholesaler Robert
Moskovitz Co., echoing a sentiment that many in the industry have expressed.
Commenting on the current business climate, Greg Telonis,
president of Mr. Baguette — another wholesaler in New York City — offered his
own explanation: “I think overall, the jewelry industry, like others, is going
through many changes due to internet sales. It is apparent that retail jewelers
are not buying as much inventory, and when they do buy, they are very specific.
And then there is no follow-up. It is just that one pair of stones. And it’s
mainly custom orders.”
For a few wholesalers, sales have kept pace with 2016.
Debbie Hakimian — vice president of sales and marketing at Doves Jewelry in
Great Neck, New York, which sells products with melee — noted steady sales
compared to the same time last year. Stones of 0.75 to 1.50 carats have been
moving, according to wholesalers.
“Rounds are always selling,” Moskovitz pointed out, adding
that ovals remained strong as well. Emerald cuts, cushions and radiants are
also in demand.
Prices have remained steady for melee and the other goods.
Telonis attributed the price stability to the fact that “basically the people
who own the rough are not taking the chances they used to and have become more
conservative. It has tightened the market, and in so doing, kept prices
firm.”
The rough market is “putting a ton of pressure on the
wholesaler,” according to Telonis. “De Beers raised the rough earlier this year
when business wasn’t good, which created an artificial demand. But when
business didn’t improve, people were stuck with a lot of goods or selling goods
at an extremely low profit just to move the money by the next sight. We are
trying to get higher prices from our customers, which is very difficult when
things are not going well. And that’s why there is a demand for cheaper goods.
It has always been that people want to buy VS goods for SI prices, but now it
is worse. People will make 20 calls just to find that one item that is a little
cheaper. They’re fishing for something cheaper — big tapered or big straight
baguettes. But they’re not cheap.”
External factors, among them domestic politics, have also
played a role in influencing sales. Hakimian has observed less fear in the
market this year than last November, when elections were pending.With the holiday season approaching, she believes
businesses that make a concerted effort with advertising and in-store events
will do well.
“The older model of sitting back and waiting for people to
walk in, or stores without a web or advertising presence, will have a harder
time in the current climate,” she pointed out.
She also sensed that retailers were looking to expand their
higher-end offerings. “The low end that has dominated the market for a few
years has ended, and retailers are looking for a more upscale product.”
But overall, wholesalers are hoping for business to pick up.
“The business is bridal- and anniversary-driven now,” said
Telonis. “I’m going to be positive and hope people will open up their
pocketbooks and start buying fashion jewelry as they did in the past.”
Article from the Rapaport Magazine - November 2017. To subscribe click here.