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Showing posts from 2017

All you need is Love

It is fair to say that the last year or so has left us at a loss trying to understand where the business is headed.  There are the obvious changes, which I have noted in the past - a steady stream of store closings, the continuing growth of on-line sales, and a real weakness in diamond prices.  We know that some retailers are doing well, but many are struggling, trying to figure out just what to do to stimulate sales. By now, nobody thinks we are simply going through a slow period, and sales will rise as the economy continues to grow, even though it is at a slow pace. For starters, jewelry will continue to be an important expression of love, status, and achievement for many years to come.  But is not alone in satisfying those psychic needs, and the competition is growing. We read a great deal of commentary on what needs to be done, most of it focused on much better marketing, creating experiential environments, wooing millennials, and becoming far more innovative and creative in

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 mature mark

Protecting the Image of Diamonds

Late last year there were two events in New York about the diamond business.  I'd call them bookends to the business, in that they address two real concerns - the image of diamonds, and the growing presence of man-made diamonds (MMDs). The first was the presentation by DPA (Diamond Producers Association) on the new advertising and promotional program for natural diamonds, "Rare is Real."  This was, finally, an attempt by the leading mining companies to rebuild the natural diamond image in the minds of consumers.  Two ads were shown (you have probably seen them by now) and I liked them both, if that means anything, while other people were very dubious.  Both were appeals to the millennials, with different approaches, though both skated around the classic themes of commitment and happiness.  As I think further about it, both reflect lifestyles that most Trump supporters, and even many Clinton supporters, probably disapprove of.  In introducing "real life&

Kimberley Process, aka Swiss Cheese

A little dust up lately about the Kimberley Process.  A noted market observer called it BS, and others responded by saying it has value.  We have been hearing this give and take since the KP was instituted a couple of decades ago, so it comes as no surprise. Does it have a future, and does it serve a purpose?  Yes and no on both points.  Perhaps it is time to look at it again. The KP was developed with significant De Beers encouragement and participation when the "conflict/blood diamond" scare first came up.  There was good reason to be concerned, as the association of diamonds with the financing of brutal human abuses and chaotic warfare in Africa.  Conceptually, there was no argument about its objectives - stop or intercept conflict diamonds from reaching the markets.  The carefully built image of diamonds could be destroyed if the public took on this association. No intent here to be cynical, but the industry was looking to protect itself.  Gem quality diamonds (or,