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Dealing with Disruption
Day 2: Notes from Las Vegas
Jun 6, 2017 9:08 AM
By Avi Krawitz
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RAPAPORT... In the aisles of the JCK Las Vegas show on Monday, there was an optimistic mood about the market that we hadn’t seen for some time, even as traffic appeared to be down from last year. There was a sense among the vendors I spoke with that jewelers are starting to adapt to meet consumers’ changing needs, or are at least working on a strategy that will enable them to do so in the medium-to-long term.
And it seems those jewelers are in Las Vegas looking for goods. “Fewer, better customers” was how one exhibitor summed up his day’s work while locking up at the show’s 6 p.m. closing time.
Diamond and jewelry suppliers have to fight for their business in the same way that retailers have to be proactive to maintain a relationship with their customers.
“The days of simply unlocking the doors and allowing customers in are over,” asserted Michael Pollack, owner of Denver-based Hyde Park Jewelers.
So are the days of simply setting up shop at a show and expecting to pick up stray buyers. If you don’t prepare with preset appointments, you’re setting yourself up for a difficult time, according to Steve Feldman, marketing director at New York-based manufacturer Hasenfeld-Stein.
Beyond that, the JCK show, like most other trade shows, is more than ever a test of exhibitors’ (i.e., suppliers’) ability to differentiate their service and offer something unique to retailers, who in turn have to satisfy consumers’ need to express their individuality.
Maron Rosen, who heads bridal and jewelry merchandising at Stuller, ranked personalization among the top trends to observe in the second half of the year, declaring it a market characteristic that was driving Stuller’s product offering.
Stuller, the largest wholesale distributor in the US, is giving retailers options in terms of metal weight, the size of a design, and the ability to apply it to a range of pieces — necklaces, bangles or earrings — at different price points, Rosen said.
The customization route is an answer for retailers who want to present something unique while also providing an added-value experience. The trend has also presented an opportunity for some niche technology providers, with the “Gems Interrupted” panel at the show’s opening press conference featuring some cool and innovative products.
One such technology is Ringcam, a ring-box camera that captures the moment of a wedding proposal. While some might balk at the idea of filming such an intimate moment, it is increasingly popular among millennials and a trend on which jewelers can capitalize, explained Russell Fyfe, Ringcam’s COO.
Another panelist, Shon Anderson of B9Creations, explained how his company’s 3D print technology gives customers a say in the design of their jewelry and creates a prototype they can try on within 45 minutes. Jewelers Mutual has developed “Holojems,” which provides a holographic display of a jeweler’s product.
While those innovations provide outsourced tech solutions, jewelers today need to be as tech-savvy as they are knowledgeable about their gem products. In fact, whereas aspiring jewelers used to focus on developing gemological expertise, young people entering the industry today need to have their tech skills in place before they acquire that background, Pollack said in a panel discussion about how small businesses could leverage their position in the market.
That’s not to say all is lost for the older baby-boomer jeweler. There is still great opportunity for jewelers servicing their communities, according to the panelists. Those who can mesh their gem knowledge with the tech-savviness the younger generation brings, and at the same time show their involvement in the community, have a good chance to restore growth, said Amy Marino, vice president of brand marketing experience and partnerships at American Express.
She suggested that jewelers partner with each other to drive traffic and offer different types of in-store events to show that kind of community involvement. There’s been a resurgence in nostalgia among millennials, who like to engage with “cool” local store owners, she added.
But that requires a well-thought-out strategy to connect with customers in the way they want and not the way jewelers want to sell. It’s a consumer-driven market, one in which the industry is facing “unprecedented disruption,” Pollack said.
It will take some time before jewelers fully acclimate to those changes. As Stuller diamond-division head Stanley Zale said, “the market’s okay, [but] not totally robust as consolidation continues, with some independents doing well while others are finding it more difficult.”
At the very least, initial trading at JCK Las Vegas suggested the industry was acutely aware of the issues driving that disruption, and businesses are starting to understand how to navigate those changes. Their strategies require a break from the traditional way of doing business — something they appear to be implementing, setting a positive tone for the show. |
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Tags:
American Express, Avi Krawitz, B9Creations, diamonds, Hyde Park Jewelers, JCK Las Vegas, JCK Talks, Jewelers Mutual, Jewelry, Ringcam
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