Better (a little) late than never ...

I started this blog in January of this year, thinking I would get to redesign and open my website fairly soon thereafter, and tie it all together. Funny how life, work and family stretch things out.

Just today the site is open (http://www.janosconsultants.com/) and I think it has been tweaked enough. So on to starting a dialogue about our industry, with all your help.

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De Beers, Lightbox and the Impact on the Diamond Industry

De Beers has announced the formation of a new company, Lightbox, that will be selling man-made diamonds (MMDs), mounted in earrings, pendants and bracelets - no rings. I will assume everyone has read the details, and heard their rationale for claiming that this move will have little or no impact in the natural diamond industry. Briefly, they will be selling MMDs in finished jewelry with total weights up to one carat, mounted in silver or gold, and with simple pricing - $800 per carat. There is no grading of the stones, which are white, yellow, blue or pink; the jewelry is meant for “moments” not “milestones” (like weddings). De Beers has arrived at this moment after a few decades of seeing their business transformed from a monopoly into a commercial venture facing all the pressures of a competitive market. At the turn of the century, Rio Tinto, with their major mine at Argyle in Western Australia, went their own way, sensing that they would do much bett...

Diamond headaches today, a different world tomorrow

The diamond business still cannot seem to get weaned off mama De Beers. That is not in the way of a complaint to De Beers, but rather an admission that clinging to the old, sheltered ways is gone. And most of the trade refuses to admit it. Even the Oppenheimers knew it was time to move on. Sure, a $30 million auction sale is made. And other big stones are fought over. But something is wrong at the core of the business. There are big bankruptcies in Antwerp and Mumbai. Banks are backing off financing the trade, except for financing solid receivables. Government authorities are investigating diamond companies in Belgium and India. De Beers sights are being rejected for lack of money. Boxes are being sold at discounts - sightholders prefer to take a loss rather than try and convert the goods and lose even more money. Cutting factories have sharply reduced output, especially on small goods. And everywhere we hear tha...

Where is retail headed?

Nobody knows for sure. Present trends show that retailers of all sorts are working hard to adapt to a marketplace that is shifting dramatically. Jewelry retailers are not exempt from this paradigm shift, but their issues are not quite the same as for other retailers, and that holds true for most of their suppliers. Stated quickly, what are the specific issues confronting traditional jewelry retailers? The low end of the market continues to move steadily towards Internet retailers. The low end of any store's business is the traffic builder, and important opportunities to build long term relationships. The low end of the market, now significantly composed of non-precious materials, is appearing in many non-jewelry environments, further diluting the business. The mid-market has been suffering for decades now, but will still serve a substantial part of the public. It is increasingly owned by larger chains, but faces daunting prospects due to buyer burnout, a very m...

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