RAPAPORT... Leading Jewelers of the World (LJW), an exclusive retail association originally launched in 2001, has been reformatted and solidified with aggressive plans to expand its membership over the next year. Now headed by industry professional Michael C. Barlerin, most recently chief executive officer (CEO) of World Gold Council (WGC), the association has changed its membership requirements and is actively recruiting retailers who meet its high professional standards.
Currently, the association consists of 35 “doors,” and the goal is to double that number by the end of 2008, says Barlerin, who was named LJW executive director in May 2007. Members, known as “honorees,” are selected by peer nomination, required to fill out an application for membership and vetted by a screening committee prior to acceptance. Each pays the same annual fee for membership and dues, regardless of size, and, in order to remain active, must be recertified on an annual basis.
The MissionWhat sets this group apart from others of its type, explains Barlerin, is that it is not a buying group, but rather a select fraternity of retailers who make a public pledge of professionalism and service directly to their clients. LJW’s redesigned “Trustmark” is a written pledge presented to a member’s customers that spells out the retailer’s mission: “The Leading Jewelers of the World Pledge guarantees the finest selection, shopping experience and professional guidance. It is both our pledge and our mark of client respect. It is what sets us above the rest. It is why we are the discriminating client’s jewelers of choice.” Other association tenets include integrity, knowledge, standards and customer satisfaction.
Of course, for any association of this type to succeed, there must be a representative sampling of retailers from around the nation, as well as a certain level of exclusivity in each region or market. The membershipis not necessarily aimed at the highest-volume retailers, says Barlerin. Right now, annual volumes range from $2.5 million to $10 million, with the average around $4 million, but a handful of retailers exceeding this limit have expressed interest in joining.
HistoryAfter De Beers 2001 announcement of its Supplier of Choice (SOC) program, in which sightholders were required to create branding and marketing campaigns, W.B. David, a major sightholder at the time, launched the concept of LJW. The plan was to assemble a number of top-caliber retail clients, each of whom was required to buy a minimum amount of loose diamonds from W.B. David, and to develop an advertising and marketing program to differentiate their businesses from nonmembers.
When W.B. David lost its De Beers sight in the summer of 2003 as part of a reduction in the number of Diamond Trading Company (DTC) sightholders, itsdiamond business and interest in LJW quickly declined. In 2004, W.B. David sued De Beers, challenging its loss of sightholder status and claiming De Beers had stolen the LJW program and was using it with Japanese retailers. In January 2006, Digico, a DTC sightholder and part of India’s Gitanjali Group, announced it had acquired
LJW under a newly formed subsidiary called LJOW Holdings LLC, and that it would be managed by Jewelry Marketing Company (JMC), Digico’s New York–based marketing arm. At the time, ambitious plans were announced to develop custom LJW brands and increase the LJW member base from 44 to 100.
Current ConfigurationIn its new form, LJW, although still owned by LJOW Holdings, will be an independent association of retailers with no obligations to any suppliers or sightholders. It will be managed by a board of directors made up of member stores, including original members Clayton Bromberg of Underwood Jewelers and Paul Becker of Becker’s
Diamonds & Fine Jewelry, with Bob Zagaros of Bergstom Jewelers serving as chairman. The group’s original buying requirements that had been set by W.B. David have been eliminated and a rebranding initiative has been developed. The goal remains unchanged — that the LJW designation will be recognized as an exclusive brand that sets its members apart from competitors.
A July 2008 meeting in Glen Cove, New York, attracted many of the group’s current members and featured two days of meetings and roundtable conferences addressing business practices and marketing. Seminars were presented by a slate of industry professionals, including marketing expert Jonathon Downing of Innis Maggiore Group and training pro Kate Peterson of Performance Concepts, both based in Canton, Ohio.
Currently, a membership drive is underway and applications are being accepted. Plans include new signage for showcases and windows indicating LJW membership, an LJW website and a national marketing campaign, as well as a number of in-store opportunities, says Barlerin. A new marketing staff has been hired and plans are being made to launch a series of exclusive, occasion-driven ads, all bearing the LJW designation, which can be customized by each member. For more information, contact Barlerin at www.ljotw.com or 212.398.6401.
Article from the Rapaport Magazine - October 2008. To subscribe click here.