Every spring, the U.S. diamond market begins to stir as it becomes apparent that the JCK Las Vegas show is swiftly approaching. Diamantaires expressed much more optimism this year than in 2009, buoyed by rising prices, favorable comparisons with 2009 sales and a general belief that retail jewelers must be nearing the depletion of their inventories.
Show Prep BeginsJoe Evich, senior vice president of GN Diamond in Philadelphia, Pennsylvania, said his sales team is reaching out to their potential JCK show clients. “We have all our sales people calling ahead. We’re sending out email and fax blasts. We’re starting to make appointments. Plus, each sales rep does individual specials in his own area.”
The company tries to hit the ground running. “We bring a full crew out there and a good chunk of inventory. It’s the most we have all year. We do the belly bands for the show guide each year. We didn’t cut down on anything,” Evich explained. Hoping his peers in the business feel the same way, he is looking for “more positive attitudes” this year.
Sam Nazarian, president of A&M Diamond and Jewelry in Los Angeles, was confident, as well. “We have gone to JCK for many years. This show is going to be good for the wholesalers. Jewelers are going to need inventory. That will move the industry in a positive way.” A&M’s staff prepares with “a lot of mail and email” and the firm publishes a small brochure featuring its newest items for use as a handout.
Nazarian declared, “JCK is for selling and catching up with customers. It is a place to work hard and get new customers as well.”
High Hopes
Raphael Maidi, president of Maidi Corp. in New York City, which participates in the Couture show, noted, “Stores don’t have inventory and most dealers are not doing memo, so there is a new environment. I think it will be much better than last year. I’m getting a bigger booth. A few of my competitors are having problems, so I can take advantage. This is a time to expand. There is business out there. You have to create your own luck.”
Nick Jain, vice president of sales at New York’s Paramount Gems, is working on his company’s appointment list for the JCK show. “It’s right around the corner, as scary as that is. We bring our whole inventory. It is definitely a sales show for us. We expect to do better than last year. We grew last year at the show. This year has been better, so we expect to do better at the show as well. We expanded last year from two to four booths and will continue with that.”
On the other hand, Morris Szklarski, president of Kelsol Diamond Co. in New York City, conceded that his company wouldn’t be there. They haven’t participated in JCK for the past few years and “we are still a little gun-shy because of the credit situation in the industry.”
Solid Sales
Most wholesalers were satisfied with their sales in the first half of the month. Evich attested, “We’re up gigantically, but of course we’re going against paltry numbers. We’re moving in the right direction.”
Jain recognized, “For us, we’re up for the year and we were up for March as well. Prices have kind of skyrocketed. They have almost doubled from two months ago. There is an extreme premium for quality. But even for piqué goods, Bombay is buying very strong. I don’t completely understand the reason, but it’s definitely a drastic difference.”
Nazarian pointed out another plus for sellers: “Many diamond dealers have inventory that they bought previously, at cheaper prices.” He is bullish on prices, anticipating that they will continue to climb. “U.S. prices will change in the future and people will need to pay more for their inventory. I believe it will happen in the next month or two,” he predicted. But he did report some price resistance. “There was a drastic jump in prices in such a short period of time that not everyone is used to it.”
“Sales and prices seem to be improving,” observed Szklarski. “At the end of the day, the numbers add up and that’s a function of the shortage of goods. When you have the goods, you have a monopoly on the sale, especially if you have them priced right.” He also saw consumers straying from tight budgets. “I think there are some who have made money and they feel a little less guilty about spending it.”
Article from the Rapaport Magazine - May 2010. To subscribe click here.