RAPAPORT... The first thing you realize when walking down the alley of fancy cut diamond manufacturers in Antwerp is that every company’s stone has a different story. For some, the fancy cut is merely a variation of the brilliant, explained Rick Uytterhoeven of Stelman IDD. The 88facets, Stelman’s own fancy shape brand, “looks more like a round, as its structure is similar to that of the brilliant,” he said. “It’s so true that we don’t compare it to the fancy shapes, but rather to the brilliant. The premium is comparable to other branded ideal make round brilliants. Its prices are between the normal round and the ideal branded stones. Of course, we sell loose stones, but the trend is more toward selling them set in jewelry. Therefore, we’re now designing special mountings that feature our signature brand.”
David Pienica of K. Einhorn BVBA said “ The Arges cut is a patented and trademarked diamond that was created by the professional team at the K. Einhorn company, with the assistance of master diamond cutter Gabi S. Tolkowsky. In Greek mythology, Arges is synonymous with flash and brightness. The special cut was launched four years ago with immediate and immense success in the American market. In the past six months, the Asian countries have begun to be part of the focal point.”
DistributionThere’s one thing all fancy shape manufacturers have in common: the emphasis on marketing and exclusivity. Hanny Yu of Pluczenik Jewellery Division said, “The Escada Cut is exclusively sold in Escada fine jewelry pieces.” Chaim Pluczenik of Pluczenik Diamonds said that “There’s no question that well-branded stones sell better than ordinary ones.”
Pienica elaborated, “We’re aiming for solid partnerships worldwide in order to facilitate the necessary investment needed for the successful distribution and marketing of the Arges diamond cut, as is already the case in the Middle East.”
Some are going even further, attempting to find unexplored distribution channels, explained Raphael Haberkorn of The Buddha Diamond CY. “There’s a premium indeed on our stones, but it also depends on the marketing expenses. After all our investments, we’ll discover whether the market is going to react according to our expectations or not. After nine years of the Buddha cut being on the market, we’re at the dawn of a new breakthrough. As of now, the Buddha cut won’t be sold anymore as diamonds, but rather as a spiritual object in its own right, drifting totally away from the diamond market, including as far as distribution is concerned. We’ve been closing exclusivity deals with regions and countries. Given our stones are exclusive and original, they’re sold at prices fixed by us. Even the smaller goods are sold at full Rap pear shape prices.”
Having said that, nobody’s looking to achieve the same results, commented Raymond Cohen of Smolensk Diamonds. “I’m just now receiving the documents stating that our Phoenix cut is fully registered. The cut has been in existence for ten years and has been selling that long. It’s taken us three years to register. We’ve now closed an exclusivity deal for the U.K. with a big English manufacturer. This means from $100,000 to $150,000 of monthly turnover. The stone will be sold set. Chinese customers would like to have the exclusivity for a big chain of retail stores. Our prices are very close to that of the princess cut. What we’re looking for, more than immediate profit on the stones themselves, is to gain notoriety for Smolensk and Kristall through the Phoenix cut.”
Survival of the Fittest
It seems that the market is in the process of self-regulating. Uytterhoeven said that “Too many brands were designed, and a lot have stopped selling already, but I think for a few of them, the future looks bright. It’s been five to six years that we’ve been selling this brand, and it’s important for people to see that it’s not for a short time we’re here. We prefer to develop a little slower but for real and for the long term.”
Benjamin Beeckmans of Star Diamond Group agreed. “The Regent Cut has quickly found its way to market, selling with premiums compared to normal round stones of up to 10 percent. Compared to the investment, it is profitable, provided you’re exactly in line with the client requirements. This is really one of the big lessons of the premium fancy shapes market. In the end it becomes positive, because you end up knowing exactly what your customer wants and why, and where he sees the added value. Quality setting and creative designs are equally critical to generate appeal at the customer level, leveraging the beauty of the stone. In any case, a premium cut should meet a need; it’s pointless to develop a cut without a proper market study.”
The MarketplacePeople are complaining about Antwerp Diamond Office price hikes.
• Minimum handling of import or export was raised from 2.5 euro [$3.34] to 5 euro [$6.67].
• Kimberley certificate for export of rough, previously available at no charge, will now cost 5 euro [$6.67].
Article from the Rapaport Magazine - April 2007. To subscribe click here.