RAPAPORT... At a time when the Diamond Trading Company (DTC) is pulling back on its generic advertising to fund its Forevermark brand, one of its sightholders, Stuller Inc., is stepping up efforts for the holidays to promote diamond jewelry and drive consumers to traditional jewelers who sell it.
In late August, the Lafayette, Louisiana–based supplier filmed a holiday segment on the home show, “Designing Spaces,” touting diamond jewelry as the ideal gift for all of life’s special occasions. Appearing for Stuller, Claudia Evans Zale, business development director, spoke about how to buy diamonds and diamond jewelry, drawing examples from the company’s Red Box Diamond® brand and Diamond Moments® marketing campaign.
Slated to debut right after Thanksgiving, the “Designing Spaces” holiday special has the potential to reach 80 million U.S. households through initial and syndicated airings that are scheduled to run until Christmas. The 30-minute program, which includes Stuller’s six-minute segment, will air on such networks as TLC (The Learning Channel), The Food Network, Discovery Channel, WE (Women’s Entertainment), HGTV (Home & Garden Television), Travel Channel, and local NBC, CBS, FOX, ION and UPN affiliates nationwide.
Moreover, the advertising and public relations efforts of Quorum Productions, the Deerfield Beach, Florida–based creator of “Designing Spaces,” publicize the themes, products and companies featured in its programming via its news links — on its website and in its national print and television ad campaign to promote upcoming programming.
“The impact of this program could be huge for independent retailers,” says Matt Stuller, chief executive officer (CEO) and founder of Stuller. “By reaching so many consumers with the ‘diamonds make enduring gifts’ message during the holiday shopping season, consumers will be presold on Red Box Diamonds, and diamonds in general, when they walk through the door. Those who capitalize on this opportunity should see results at the sales counter.”
Conor Rector, production coordinator for Quorum Productions, says its holiday specials garner high ratings from its viewers, who are best described as mostly female, between the ages of 25 and 55, both married and single, with and without kids, reflecting a median household income of $65,000.
DTC statistics confirm that women, representing more than half of the U.S. population, are a powerful consumer demographic for the diamond industry. Specifically, the DTC reports that married women represent more than $17 billion in retail sales of diamond jewelry — almost half in volume and more than half in value. Single women account for more than $6 billion, or about 20 percent by value. Roughly half of all these women own three or more diamond jewelry pieces.
Touting Diamond MomentsTo promote diamonds as the perfect gift for all occasions, Evans Zale used talking points from Stuller’s Red Box Diamond Moments campaign to field questions asked by the show’s correspondent Jodi Dombrowski.
While Stuller’s Red Box Diamond is a loose diamond brand — encompassing a range of sizes from 3/8 of a carat up, all shapes, D to L color and I1 clarity up, as well as some fancy colors — the company showed one-of-a-kind finished pieces by Stuller Studio™ to illustrate the possibilities. Among the eye candy displayed were an emerald cut pendant, a pear-shaped fancy yellow pendant and a three-stone ring with swirling pavé gallery.
Evans Zale highlighted key life moments having strong emotional resonance, like the birth of a child; a young woman’s coming of age, i.e., Sweet 16, Quinceañera — celebrated by Catholic Hispanic families for the 15th birthday — and graduation; birthdays, especially milestone markers, and wedding anniversaries. She also cited Valentine’s and Mother’s Days as ideal times to give diamonds and endorsed the idea that women reward themselves with diamonds for individual achievements and as personal style statements.
“Consumers identify with diamond jewelry for many reasons, such as the desire to feel loved, beautiful or rewarded, or as an outward statement of luxury,” explains Evans Zale. “Especially in today’s economy, and with competition for discretionary dollars so high, jewelers can encourage customers to add to or create their diamond jewelry wardrobe by giving them the justification they need to make that purchase — their own ‘diamond moment’ story.”
DTC statistics support this tack. For example, the birthday occasion was a $4.7 billion category in 2007, representing nearly 20 percent of the women’s diamond jewelry market. Almost one in five dollars is spent on diamond jewelry for this occasion. In fact, the birthday is the second highest gift-giving occasion in volume after Christmas, but with higher value than Christmas. And, with an average retail price of more than $800, birthday jewelry is the second highest value after anniversaries.
Wedding anniversaries represent 12 percent of diamond jewelry sales by volume and 20 percent by value. They rank as the single most important gift-giving occasion, because the average retail price spent is higher than any other at $1,300. The Christmas season generates $5.1 billion in diamond jewelry sales, representing 20 percent of the market — the highest by volume and third highest by value, with gifts averaging $600.
Lisa Cochin, communications director for the Diamond Promotion Service (DPS), says there is great potential for retail jewelers to grow diamond sales in these important categories, as well as for other occasions like Valentine’s Day and Mother’s Day, and especially birth-of-a-child gifts for new moms, which boast an average retail price of nearly $800.
Red Box Diamonds
Established ten years ago, Stuller’s Red Box Diamond program has grown exponentially, says Stanley Zale, Stuller vice president of diamonds, noting that the brand sells in more than 4,000 retail stores nationwide.
But while some think Stuller is new to diamonds since it was asked by DTC to be a sightholder only three years ago, the supplier actually has been selling diamonds for nearly two decades.
“You don’t get chosen by DTC to be a sightholder if you’re a newcomer to the diamond business,” Zale explains, noting that the DTC actually approached Stuller at a time when it was reducing the number of sightholders it was working with. “Many apply and few are chosen. It’s a testament to the success we’ve had in the diamond business, especially with our Red Box program, to be selected.” He adds that Stuller was recently chosen to renew its three-year contract as a member of this elite group of diamantaires.
Stuller created the Red Box program to empower retailers with a brand they can call their own, says Zale, who describes it as a quality product, beautifully packaged, with selling benefits like diamond trade-up, loss protection, grading reports from recognized gem labs and an engraved ID serial number on the stone’s girdle. “The program was designed to help jewelers build consumer confidence and customer loyalty,” adds Ramona Gautreaux, marketing director of Stuller’s diamond and gemstone division.
Introduced last year, the Red Box Diamond Moments campaign focuses on the emotional connections diamonds make to give consumers more reasons to visit their local jeweler, says Gautreaux. The campaign’s marketing kit includes training resources, point-of-purchase tools and advertising material. Retailers also have access to Stuller’s virtual inventory and just-in-time delivery, as well as design services through the Stuller Studio.
In the current down economy, it’s critical to understand and cultivate consumer loyalty, advocates Pam Danziger, president of Unity Marketing in Stevens, Pennsylvania, and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience.
“Now is the time for luxury marketers to build excitement for their brands by picking up the pace of new product introductions and more aggressive branding campaigns,” encourages Danziger. “As the tide turns, marketers out in front of the shift can take advantage of greater exposure to luxury consumers as their more cautious competitors pull back in advertising and branding. We believe that affluent consumers will start to feel renewed confidence after the November election. These shoppers don’t need anything per se…except a new and powerful reason to shop.”
Capitalize on the Moment
Regardless of whether a retailer sells Red Box Diamonds or not, Stuller believes its initial B2C efforts will help excite consumers to buy diamonds for the holidays and in the coming year. Gautreaux suggests jewelers capitalize on Stuller’s national TV spot by creating/updating gift registries and wish lists and hosting in-store activities celebrating various diamond moments.
Gautreaux also advises jewelers to up the ante by offering services like a personal shopper. She stresses the need to connect with local media plugging “Designing Spaces” programming in their area, as well as to discuss diamond trends and gift ideas as the diamond expert in their community. Stuller expects to release local TV schedules of the “Designing Spaces” programming by October.
On the show, Evans Zale invites viewers to share their personal “diamond moment” stories for the chance to win a pair of Red Box diamond solitaire earrings (www.redboxdiamondmoments.com) and she suggests that entering the contest is also something that local jewelers can encourage among their customer base.
Gautreaux believes diamonds will face stiff competition this holiday season from the electronics industry, with big-box stores like Best Buy pushing iPods and flat-screen TVs. She implores jewelers to talk up the emotional value in a gift of jewelry, especially diamonds.
“It’s no secret that the economic climate is not pretty,” says Zale, who expects only modest diamond sales for the fourth quarter of 2008. “None of us are certain what we’re heading into and how long it will last. There’s no question that things will be tough. But, we’re confident that if jewelers get back to what the purchase of a diamond really means, they will make the sales that come their way.”
Article from the Rapaport Magazine - October 2008. To subscribe click here.