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Mixed Results from the 2002 JCK Las Vegas Show
Jul 3, 2002 11:18 AM
By Sayre Priddy
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Despite the high expectations for this year’s JCK Las Vegas, held May 31 to June 4, the industry jump-start that many were expecting from the show never really got off the ground. In spite of the fact that management circulated information during the show indicating as much as a 20 percent increase in volume, most participants estimated a 10 to 20 percent drop in business, although the postevent roundup from JCK boasted a 4 percent increase in total attendees to 20,414 and a 4.5 percent increase in the number of buyer retailers and wholesalers to 19,753. However, these numbers are still down 5.5 percent from those of 2000.
Nevertheless, a feeling of shaky optimism managed to rise from the aisles upon aisles of exhibitor booths to permeate the event’s atmosphere. It was almost as if people were trying to will more show activity, despite evidence to the contrary. Said one source who spoke on condition of anonymity, “I believe that there have been efforts to mislead participants, and even retailers who did not come to the show. Numbers have been distributed which cannot possibly be true. Yet everyone goes around saying they’re optimistic, even with no business!”
However, David Bonaparte, vice president of the JCK Shows, countered that they “were extremely pleased with the results of this year’s show. Although the current economic climate is challenging, we are very happy with the level of buying power, the quality of buyers on the show floor and especially that the industry is getting back to business.”
Spotty Activity
While the exhibitor consensus was that most relied on scheduled appointments to keep busy, there were some exceptions. Ian Sossen of Eliazarov Reuven & Sons Diamonds Ltd., a manufacturer and exporter with headquarters in Israel, said, “This is our first year here, and essentially the booth is acting as a loss leader, helping us to meet new customers. We are happy; we’ve managed to generate some new clients.” While some complained that keeping dates was becoming the only reason for attending the show and felt that walk-by traffic has been diminishing every year, others saw a silver lining in the volume slowdown. Itchy Heschel of the diamond district’s Kleinhaus Trillion Diamonds noted that “although the traffic has been slower this year, the buyers who have been out have been serious, which has been helpful. There is no one just browsing with no real intention to buy, which of course can be frustrating.”
Indeed, business this year appeared to be very hit or miss: either companies were very active, or not at all. The action seemed to break down along lines of volume, with those who dealt with the major buyers being on the whole busier than those who supplied the independents. Henry Wolf of Leo Schacter explained it this way: “When a vendor deals with larger-volume retailers, there is generally more consistency in terms of sales. Merchants such as Zale’s and Sterling have more rigid schedules to adhere to, and because of their advertising campaigns their timing has to be more precise.” Many remarked, however, that all buyers seemed to be both “physically and economically” tired, and several noted that buyers also appeared to be consolidating their base of vendors, going with those who offered them better value and consistency. Some even speculated that the time and money that had been spent on finding new vendors was now being used in advertising and marketing.
Larger and Colorful Emerging Trends
A strong emerging trend in diamonds was the demand for larger stones, 2 carats and up, with princess and round cuts being particularly popular, as well as some interest in emerald cuts. There was an emphasis on better quality, VS-SI1, with colors G and better. Colored diamonds such as champagne, canary and black were also quite in style. In addition, there has been a continuation from last year in the demand for three-stone diamond jewelry, as many companies linked up with the Diamond Promotion Service’s ad campaigns.
A major factor in success this year appeared to be development of niches. As Heschel noted, “If you carry the same merchandise as the fifty other Mr. Joneses, you are unhappy and complaining. If you have a specialty, you are most likely doing well.” Any kind of differentiation, whether it was a unique cut, added-value programs or even heavy preshow mailings of promotional material, drew buyers into booths.
However, with regard to jewelry, the general feeling was that understated and elegant was the trend, with a return to classic, tailored designs. Jose Hess, the principal of the firm bearing his name, remarked that his Garden Lights line was “doing very well,” observing that its simple versatility was “very appealing.” While many thought that the classic trend was a reflection of post-9/11 sensibility and sentimentality, Hess disagreed. “While 9/11 was an incredibly tragic and sad moment in our history, it’s just that, history. I don’t believe that we are still feeling its effects.”
The buzz phrase of the show, nonetheless, did prove to be “big flash, little cash,” as buyers gravitated toward lower-price-point items in what was generally viewed as a response to the still-uncertain economic climate. Quite a few upscale companies in the Galleria and Prestige pavilions complained that this trend severely limited the amount of business they did. “Traffic is down at least 20 percent, which is most likely due to the economy. And the business that we are getting is mostly with the lower-price-point items,” said Israel Itzkowitz of Ambar Diamonds.
For the 2003 show there are a wealth of new initiatives planned, most significantly that the organizers plan to stay at the Sands Expo & Convention Center. This decision was based mainly upon client feedback. “Customer research results were overwhelmingly in favor of keeping the show in one venue. We did look at other alternatives, but our research shows that the Sands Expo & Convention Center offered better opportunities for value-added amenities for our customers,” added Bonaparte. Among new features will be the introduction of a new pavilion, The Debut Collection, specifically for newly exhibiting companies; a color-coded promotional campaign designed to make shopping the show easier; and the expansion of all existing cafe/lounges, as well as the addition of four new ones, all of which will now also be manned by concierges. JCK will also be making efforts to improve the overall atmosphere, including piping in background music, improving the air conditioning, revitalizing the show’s decor, adding fresh floral arrangements and supplying relaxation lounges where visitors can receive manicures and massages. The organizers predict that “the best of the JCK Las Vegas Show is yet to come. We look forward to better serving our customers in 2003.” Next year’s participants will be eager to judge JCK’s efforts.
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Tags:
Economy, Israel, JCK, Jewelry, leo, Zale
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