Fancy Shape Branding: Fortune or Failure?

RAPAPORT... In the three years since Rapaport Diamond Report last published its Guide to Fancy Shape Diamonds, an astonishing number of new cuts have surfaced on the market and more are undoubtedly on the way. What started as a strategy employed by a few companies has become an industry-wide phenomenon. However, with so many companies entering the market, is it possible to be successful branding a unique cut?

“As with everything else in this business, it all boils down to one thing: ‘Is it pretty?,’” says diamond dealer Cary Horowitz, who has patented a number of fancy cuts. “It depends on the shape. Some shapes are beautiful and stand on their own. Some are less identifiable and are therefore more of an ephemeral product.”

A Cautionary Tale

Marvin Finker, owner of Trillion Diamond Co., Inc., manufacturers of the Trielle and the Ten Commandments, has experienced both the good and the bad of branding a unique cut. “We were probably one of the first ones to brand a diamond, with the trillion,” shares Finker. “One of the things that happened is that though I had a registered trademark on the word ‘trillion’ and had very effective advertising, I probably went overboard in promotion and the word started to be used generically.

“I ended up in court to defend the name ‘trillion,’ but the opposition’s lawyers were able to cleverly persuade the judge in favor of their clients. So, I had to start over. I hired a brand-naming specialist and he came up with 30 or 40 names that had no other usage anywhere in the world. I took my 15 favorites and tested them on my friends and family and narrowed it down to Trielle and Trimount. And 20 years on, I am happy with it.”

With regard to the Ten Commandments cut, Finker says he got the idea when he was trying to figure out how to manufacture a particular piece of rough. “It was very shallow, and like any clever diamond manufacturer, I was trying to figure out the best shape that I could cut out of the rough. I was inspired while in synagogue and applied it to one stone and cut it. Then I figured that I might as well register it.”

While his product is certainly unique, overall, Finker says that it hasn’t been as successful as he expected. “I think the biggest challenge with the Ten Commandments is maybe the subject matter. I once had a jeweler tell me there are two things you don’t talk about at a jewelry counter: politics and religion. Right now, I am doing the stone on a call basis.”

Finker says that his experience with the trillion can be boiled down to two pertinent lessons: one, don’t start off with a regular word because it runs the risk of becoming generic, and two, come up with a contrived word — it is a lot easier to protect a name if it is not in the dictionary or anywhere else.

BRANDING ADVICE

As is evident from Finker’s experience, there are plenty of potholes to avoid on the road to fancy shape branding nirvana. Luckily, many others who have branded unique cuts are willing to share advice as well. “Do not attempt to aggrandize yourself or your company by branding a special cut for the purpose of getting extra press attention or as a money-making venture,” suggests Jody Isaak, director of communications for Doron Isaak Couture Gems, which produces the Noble and Virtue Cuts. “Rather, it should be a passionate marriage between your specialty cutter and your design team and jewelers. If all are on the same page, and you can guarantee a consistent supply of rough material, it can be wonderful.”

“Prepare lots of money to support your brand in marketing, advertising and sales,” says Orly Samid, marketing manager for Moti Ganz Diamond Group, manufacturers of the Elara. She also recommends, “be sure to be identifiable and distinguishable.”

“Branding a cut requires a lot of time,” cautions Fred Knobloch of Brite Star Diamond Co., Ltd., manufacturers of the Tiana. “It’s a good idea, of course, but the problem with all good ideas in this business is that people will copy them. A minor change can alter the product enough so that the original manufacturer has no recourse. Before you know it, people are doing what you are doing. But, overall, if you can pull it off, it is a good concept.”

FANCY SHAPE CERTS

One more weapon in the arsenal of those trying to promote fancy shapes is a customizable cert developed specifically for that purpose. The International Gemological Institute (IGI) introduced its Diamond Grading Passport to the United States four years ago, after providing the cert to its European clients for six years. The Passport is available to manufacturers with a unique, trademarked and patented cut and features the cut name and image on the cover and the report details inside. There is no extra charge for the Passport.

“Certs used to be more business-to-business,” says Roland Lorie, chief executive officer (CEO) of IGI Europe. “We started to realize that consumers are the end users and we developed something exciting for them, developing different certs for different cuts. A cert is like the signature of the expert on the back of the Picasso. We are the expert to the product.”

Lorie and his American counterpart Jerry Ehrenwald, G.G., A.S.A., president and CEO of IGI Americas, both indicated that the lab has done very well with the personalized cert. “Lately, there seem to be more diamond manufacturers branding unique cuts,” says Ehrenwald. “This year, we have issued thousands of these certs, and over the past four years, many tens of thousands worldwide.” Lorie adds that demand has grown. “Several major brands are using it as well.”

ROOM FOR MORE

Finally, despite all of the warnings and stern advice, it must be noted that nearly everyone agreed on one thing: The fancy shape market is by no means saturated.

“If someone came up with something that is truly unique, then they would have the ability to succeed,” says Finker.

“If you have a beautiful product, there is always room in the market,” agrees Horowitz.

Article from the Rapaport Magazine - April 2007. To subscribe click here.