After experiencing up-and-down sales, US wholesalers are
confident that the market has turned a corner.
“There is definitely greater enthusiasm and more curiosity
with people asking for goods,” said Ketan Mehta, owner of New York-based
diamond manufacturer Divina Creations.
Saul Goldberg, CEO of William Goldberg, a high-end jewelry
house in New York, noted an upturn in business since the beginning of the year.
“Whether it was the stock market or bonuses, people decided to spend money in
January and February,” he said.
The bridal-jewelry market was solid. “The 1- to 1.5-carat
diamonds are always perfect for bridal seasons,” said Dan Wiley, owner of
Diamond and Jewelry Buyers, a wholesaler based in Tulsa, Oklahoma. He cited
rounds as his number-one seller.
Mehta agreed, adding that ovals and cushions were strong
sellers for him. “The basic engagement item is obviously selling — it has
always been the darling of Americans.”
Goldberg said he was seeing more demand for fancies,
including his brand’s proprietary 62-facet Ashoka diamond. “People are looking
for good-facing stones,” he commented. He also reported increased sales for
diamonds of 10 carats and above.
Overall, wholesalers said prices were stable. Unless the
request is for a highly specific stone, wholesalers are not experiencing any
problem with replacing inventory. Wiley often augments his inventory with
close-out sales from local jewelers, while Mehta declared that “my business
does not mirror inventory issues.” Through associates in India, Mehta added, he
can secure “anything” from 80 points to 15 carats.
Adapting is vital
Wholesalers acknowledged that overall market trends had
required them to adapt.
“The industry has drastically shifted over the past five to
eight years. The bread-and-butter business is moving more to the internet,
while the bigger price point items are driving in-store sales,” said Mehta.
Furthermore, he added, “people generally feel that the more inventory they
have, the greater the chance of doing more business. I think it is the other
way around. Our business is traditionally one of relationships, regardless of
inventory levels. I have been working with some retailers longer than I can
remember. Sure, they can find the stone cheaper somewhere else, but they
continue to call me because they trust me and my commitment to their business.
That is more important than having $500,000 in inventory.”
Following up on the trust issue, Wiley cited another matter
facing the industry: “Millennials are educated. They want certified, whether
Gemological Institute of America [GIA] or Gemological Science International
[GSI].The older generation trusted the jeweler.”
Millennial customers have also influenced inventory. “In my
area, a lot of retail jewelers don’t stock stones over 1 carat, because they
can get it online via RapNet, for example,” Wiley said. “The jeweler can get
any color and clarity combination, charge them 10% over and sell them a
semi-mount and make a profit on that.” This makes the wholesaler’s job a lot
harder, Wiley said.
Still, wholesalers remain positive. While Goldberg observed
that much revolved around the mood at the shows — Miami, Centurion, Palm Beach,
Basel and Las Vegas — he felt business was trending up.
DDC India Week
Momentum was also in evidence at the Diamond Dealers Club
(DDC) of New York’s seventh India Week, which brought together 60 exhibitors
and several hundred attendees.
DDC president Reuven Kaufman, who also heads New York-based
diamond manufacturer Reuven Kaufman Inc., said the four-day event gave people
the opportunity to form new relationships and reinforce existing ones. “It
creates activity. People gain confidence when they see goods trading at very
solid pricing — no one was giving goods away.”
Article from the Rapaport Magazine - March 2018. To subscribe click here.