RAPAPORT... Tough economic times at home and equally challenging times in the U.S., formerly their leading export market, have dampened some of the enthusiasm of the usually buoyant Italian jewelry manufacturers. According to those gathered at VicenzaOro in May, they are waiting for the results of the U.S. election, a stock market rebound and, hopefully, an upsurge in jewelry sales later in 2008. “Right now, it’s either very high or very low,” observed Clara Arata, designer and principal of Arata Gioielli, Valenza, referring to the price points of jewelry that is selling to American customers.
Sadly, for many Italian manufacturers, the low end of the U.S. jewelry market has been lost to other international competitors, such as China, Turkey and India, some of whom enjoy duty-free status in the U.S., unlike the Italians, whose goods are subject to a 6 percent duty. Gold’s soaring prices and the euro’s escalating value have combined to put many of these small firms out of the running as a jewelry choice for cost-conscious American buyers.
As a result, the operative words have become “added value.” For many gold suppliers, this comes in the form of gemstone, enamel and decorative accents, but the most notable addition of all is diamonds. In fact, many manufacturers known for all-gold jewelry have added a sprinkling of diamonds to set their designs apart and to elevate them from scale-weighing evaluations that only consider the amount of gold in valuing a piece of jewelry.
DIVIDED STORYAt Charm, the newly named May edition of the Vicenza jewelry fair, Italian suppliers of diamond jewelry were divided in their assessment of business. Some companies that specialize in top-quality diamonds in multicarat designs said they are feeling little pain. However, smaller firms, known for diamond and colored gemstone jewelry or all-gold designs, have felt the pinch from the negative market forces and cost pressures. In an effort to capture additional sales in a tough market, brands that are well established in the U.S. are expanding their assortments to include unisex collections, more diamond-intensive looks and eye-catching novelties.
A major brand for high-end diamond jewelry, Valenza’s Damiani is focusing its attention on more casual and unisex designs to appeal to a broader market, said Nicole Briata, press officer. There are no special collections aimed at specific markets but, rather, a wide assortment of different looks that allow buyers to choose what’s right for their customers. The younger, more casual styles include the Orbital Collection, with double rolling rings of contrasting colors of gold and diamond accents, and the Twister Collection, in which a wide band is overlapped by smaller bands of contrasting colored gold. Damiani’s best-selling Sophia Loren Designer Collection, with a circle motif in pink gold accented by a spray of diamonds, and the romantic Mimosa Collection of asymmetrical sprays of diamonds and pink sapphires have been particularly well received.
Hasbani, Milan, known for its imaginative pearl designs, has experienced an increased demand for diamond jewelry. Joseph Hasbani, principal, estimates that out of every ten sales, an average of seven or eight are for diamond jewelry. Sizes of diamonds are changing, too. “We used to do a lot of jewelry using smaller-sized diamonds, most often in pavé, but lately, we have begun moving to larger-sized diamonds from melee to 75 points,” he said. Average qualities are G, VS. One strong new direction here is black and white diamonds set in rose gold.Zydo, Valenza, a company that has developed a strong following in the U.S., has an interesting new collection that combines a variety of different shapes and sizes of diamonds in one piece. Marquise, princess and pear-shaped diamonds in 1- to 4-carat sizes are strung in stations on long necklaces of round brilliants or are combined with rounds in cluster rings in white and pink gold. The look has been well accepted in Europe and the U.S., noted Daniela Sburlati, marketing manager. Other popular styles for Americans are flexible “belt” rings of diamonds set in mesh that are soft and comfortable to wear. Total weights range from just over 4 up to 10 carats, in qualities ranging from VVS and VSI in G and H colors.
“Today, there is no room for medium- to low-end pieces,” maintains Umberto Picchiotti, president of his family’s Valenza-based firm. “There is too much competition at this level.” Picchiotti, known for its top-of-the-market pieces, is seemingly oblivious to recession. Strongest-selling items to the U.S. are unique pieces with large diamonds and colored gemstones retailing for $50,000 and above. In addition to his American clientele, Picchiotti cites strong established markets, such as the Middle East and Japan, as well as developing markets, such as Russia, Uzbekistan and Kazakhstan, as strong outlets for his company’s dazzling, one-of-a-kind pieces.
NO BULLNot all of Italy’s top companies are as bullish on the American market as Picchiotti, however. A number said their sales to the U.S. had shrunk over the past few years, while others are cautiously exploring the market before actually entering it.
For example, Gavello, Milan, a strong brand in Italy and Russia, has so far shied away from the U.S. However, according to Paolo Martinelli, marketing manager, Gavello, after a careful market analysis, is planning an entry into the U.S. Right now, the line is popular in Europe and Russia for its ergonomically designed, pavé-covered jewelry, in which gold shapes are gently curved for comfort of wear. Rings are designed for specific fingers and earrings are constructed with a left and a right to conform to the sides of the face. Combinations of black and white diamonds are strong; overall diamond qualities are G to H color and VVS.
Putting the focus squarely on diamonds is Grace Collection, a new finished jewelry collection from World of Diamonds, a division of the World Diamond Group, Vicenza. Using a wide range of sizes and cuts in the VS and F to G qualities, this collection includes fashion and engagement rings and pendants. It is not yet available for sales in the U.S., but has met with strong acceptance in Europe, said Roberto Capra, company principal. He said his audience is divided between young couples shopping for engagement rings, who generally buy high-quality, small sizes, and investors who opt for large, rarer diamonds and are more concerned with size than quality.
For Annamaria Cammilli, Florence, the importance of the U.S. has shrunk, allowing Japan and Europe to take over as the largest markets, said Cristina Jacomelli, director of image and relations. For the remaining U.S. clients, the company’s signature flower and floral-inspired designs are strong, with rings and pendants leading the list. Diamonds are an embellishment, rather than the focus, of the designs, but are being used more in newer collections. Popular new designs include bold brooches available in several colors of gold, including pink and black, as well as the designer’s newest beige coloration.
Cammilli’s signature looks perfectly exhibit many of the strongest trends being shown right now by Italian designers. These include use of pink gold, black and white mixtures, flowers and floral-inspired shapes and combinations of matte and polished gold.
VICENZA EVOLVES AGAIN
VicenzaOro, Italy’s best-known and most heavily trafficked fair, continues to evolve. The show, which began 25 years ago as essentially a gold jewelry fair for wholesalers, has expanded its reach over the years to include high-end branded jewelry aimed at an international audience. Now established as one of Italy’s top jewelry fairs, the organizers are again changing their thrust, planning to become the country’s premium venue for luxury goods of all types.
According to Dino Menarin, VicenzaOro president, 2008’s May edition of the fair, renamed Charm, was intended to set the pace for future fairs by including designer clothing and accessories in the mix. For the first time, the fair allowed established exhibitors to choose to show their collections in just two VicenzaOro fairs instead of all
three. Given the close timing of the Vegas shows, many large manufacturers opted out of Charm, leaving lots of empty exhibition space.
In response, the center sections of two of the main halls were redesignated “Glamroom” to highlight new brands and trendsetting designs in clothing, jewelry and fashion accessories. “Expect the Unexpected” was the theme and apparently, it was right on target because many visitors and long-time exhibitors said they found it confusing. While most agree that trends in jewelry are closely related to fashion, few expected to see clothing and accessories, no matter how high-end, displayed at a fine jewelry fair. As for adding designer costume jewelry and accessories in the future, jewelers were largely negative about the concept, commenting privately that if the fair begins to include alternative categories, they would consider leaving.
The final installment of this year’s Vicenza trilogy is slated for September and will be called Choice. While most of the biggest brands are expected to return, organizers said at a press conference that the Glamroom concept is part of the fair’s overall strategic plan and will be housed in pavilion A in the future. This show, which usually functions as a last-minute buying opportunity for European retailers for the holiday season, will take place September 6 to 10, 2008.
Article from the Rapaport Magazine - July 2008. To subscribe click here.