RAPAPORT... Although Christmas is not a public holiday in Japan, it falls in the middle of the traditional gift-giving season, and retailers are taking full advantage of the occasion, decorating stores and countertops with all kinds of Christmas trinkets. In the jewelry trade, dealers report they are not as joyous as they might appear. Christmas sales merchandising is starting later and later, moving closer to Christmas Day. The reasons cited by retailers for their lack of excitement are: “Serious stuff is not sold during the Christmas season” and “Christmas sales are for kids.” Still, a number of interesting marketing campaigns during this season are focusing on younger consumers.
Sta*ColleOscar Promotion Co., Ltd., a Tokyo entertainment production company that manages 4,000 models and 110 actors and entertainers, introduced Sta*Colle, a new fashion product brand, in May. The company assigned nine promising, young actresses and models it has under contract to endorse a number of fashion products. During the 2006 Japan Jewellery Fair (JJF), held from August 31 through September 2, CMP Japan, the show organizer, hosted a jewelry fashion show at the show site, at which Sta*Colle Jewelry was introduced as part of the fashion product line.
A model or actress was assigned as endorser to each jewelry product line. To find suitable jewelry for the models, CMP turned to Yoshihisa Sato, a long-time market player, to do the matchmaking. Sato called on jewelry manufacturers who were participating in JJF to supply the products for the collection. Sato also called on the visiting retailers to JJF to sign on as sales outlets for the collection, but, to date, only a few have done so. “Originally, Oscar Promotion wanted to sell the pieces on its internet site, but, as JJF helped them kick off the collection, I had to include JJF visiting retailers,” said Sato. Since the products target younger consumers, the collection prices range from $400 to $1,000.“At this price range, it does not pay for big retailers to participate,” admitted Sato.
Trendy“Trend is the most important factor in my designing,” said Yuki Komiya, a young product designer at Trendy Co., Ltd., a jewelry manufacturer/wholesaler. In order to keep up with the trends, Komiya is always keeping a close eye on retailers as well as reading fashion magazines and media reports.
What is unique with Trendy is that the company not only provides products, but it also provides marketing ideas and promotional items such as designs, leaflets and point-of-purchase displays to be used in stores. It even designs its clients’ store layouts and decorations to match its product lines.
The company supplies the low- to mid-range of jewelry and targets young consumers. Its clientele includes jewelry retailers, gift shops, mail order companies and internet marketers whose customers are mostly younger and less affluent. Because of this market focus, Trendy’s product prices are inherently restricted to around $85. The recent gold price hike is keeping Komiya from designing lavishly. “We have downgraded our gold quality to 10-karat from 14-karat, so that finished products look more voluminous,” said Komiya.
To meet the price points, Komiya uses brown and black diamonds in her designs. “This fall, brown is in, in a big way, in fashion,” she noted, and, as the Christmas season approaches, orders for brown diamond pieces have increased exponentially. Black diamond pieces, on the other hand, are selling well all year round, said Komiya. “In other words, I am busy all the time.”
Bambi JewelryFor Bambi Jewelry Co., Ltd., the cost of material is less of a concern, as it produces stainless steel pieces. Not only does that free the company from the problem of precious metal cost hikes, but the stainless steel appears to appeal to trendy consumers. “We are very busy at this time, particularly after November, when orders came in for Christmas sales,” said Bambi’s Takenobu Ishikawa. The company introduced stainless steel jewelry several years ago, targeting young consumers. “To our surprise, the stainless steel’s trendy look also appealed to other, older generations, and the pieces are gaining wider market shares,” said Ishikawa.
Bambi did not leave its success to chance. It brands the products with catchy names such as “Black Royal” for men and “Fe Fe” for young women. The best-selling items at Bambi are rings, bangles and pendants, priced from approximately $45 to $85. “Had we produced the same designs with gold, they would have cost us almost 200,000 yen [approximately $1,700],” said Ishikawa.
Bambi Jewelry, with a history of nearly 50 years, started as a manufacturer of watchbands. During its boom years, the company produced high-end jewelry with gem stones and diamonds. “Unfortunately, that is not today’s market. We had to change direction to stay in the game. Stainless steel bangles are no stranger to consumers. People wore stainless steel watchbands for a long time,” said Ishikawa.
The Marketplace• Demand is strong for large, round
brilliants of 3, 5 and 10 carats.
• Demand for large fancy shapes is not as strong as for round brilliants.
• 4/4-grainers continue to be weak across the board, especially for high grades and better cut grades in round. Princess cuts continue to be popular.
• Fancy light yellows are moving steadily.
• Smalls, melees and small fancy shapes are in steady demand, but the demand is very specific.
Article from the Rapaport Magazine - December 2006. To subscribe click here.