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U.S. Wholesale
By Shuan Sim
The holiday season is approaching, but not all diamantaires around the U.S. have experienced the typical uptick in business in the months preceding it. Many wholesalers spoke of slow-to-steady sales recently, with only some indicating that business has indeed picked up in advance of the holiday season.
“Usually by August, ten to 15 years ago, we would be busy. But now, it seems that it’s not until October or even November that business starts to pick up for the holidays,” said Rahul Parikh, president of K.R. Gems & Diamonds International, based in Los Angeles, California. He noticed that Thanksgiving used to be the biggest shopping date for his clients’ customers, but that does not seem to be the case any more. Parikh felt that the bulk of the buying during the months at the end of the year seemed to have shifted toward Christmas instead. Parikh added that demand for fancy shapes has slowed down compared to the demand for rounds in recent months. “When the market slows, goods in lesser demand get impacted the most,” he explained. Despite an unimpressive sales volume, many sellers were satisfied with the quality of goods they were selling. “I’m getting orders for diamonds of better clarity and color than I’m used to,” said David Kantor, owner of Desert Wholesale Diamonds, based in Palm Desert, California, describing requests for stones in F through G color and in VS clarity, as opposed to H through J color in I clarity. For Kantor, business has been steady but has not picked up as expected for the holiday season. “It’ll probably be better next month, closer to the dates,” he said, speculating single-digit growths the following month, or even double-digits if he is lucky.
Some sellers were perturbed by lowered prices of diamonds in recent weeks, but felt that prices had been stable overall. “Goods are available at a lesser price and at a better selection,” said Parikh. However, this means that better-quality goods — F and G color, VS and SI clarity — will probably move well and could become harder to replace, said Jay Moskovitz, vice president of Robert Moskovitz Co., based in New York City. The demand for promotional goods during this season will also see F through J, I1 and I2 diamonds move more quickly, Moskovitz added. These goods include those used in necklaces and bracelets commonly gifted during the holidays. Most wholesalers reported no problems stocking diamonds of other qualities. While better-quality goods were in demand, sales didn’t always work out for some diamantaires. “I’ve had some demand for VS1-plus goods, but some customers ended up being unable to pay,” said Rich La Motte, owner of RTL Wholesale Diamonds & Fine Jewelry, based in San Francisco, California. He was surprised by how enduring the demand for cushions and ovals has been. “It’s almost become a staple,” La Motte said, adding that if the demand for ovals continued being hot, supply might fall short. In advance of the holiday season, Lance Shapiro, owner of Shapiro Diamonds based in Dallas, Texas, noticed an increase in demand for rose gold jewelry. He speculated it might be attributed to the current popularity of rose gold, and said that the fashion-forward interest in the jewelry is helping his business take a turn for the better out of what had been a slow month.
Despite the absence of an upswing of business as was expected, many felt that the months ahead would be good, or at least would not be any worse compared to 2014. La Motte said he was optimistic, and believed that improved economic conditions would encourage consumers to buy more confidently. Shapiro felt that the upcoming festive season will have an intensifying effect. Wholesalers that did well during previous holiday seasons will be very busy, while those that did not might have a hard time. Shapiro felt that this holiday season would be a good one for him and he is looking forward to it. Other sellers take a more cautious stance on the upcoming months. “It will definitely not be a slowdown, but I don’t see much of a boost either,” said Parikh, predicting that sales would more likely be flat.Article from the Rapaport Magazine - October 2015. To subscribe click here.
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