|
|
Now’s Too Late to Start Courting Retailers
Nov 26, 2018 9:38 AM
By Joyce Kauf
|
|
|
RAPAPORT... Will the holiday season bring joy to wholesalers and
manufacturers? Traditionally, the industry looks to the fourth quarter to turn
a profit, but some are taking a longer view in hopes of making the holidays
part of a 12-month business.
“All barometers point to a strong holiday season,” says
Ronnie VanderLinden, president of New York-based diamond manufacturer Diamex,
as well as of the Diamond Manufacturers & Importers Association of America
(DMIA).
“We had fantastic results at the summer shows that speak to
the optimism about the impending season,” agrees Andrew Rickard, vice president
of operations at RDI Diamonds, a wholesaler in Rochester, New York. Even the
recent talk of US tariff wars has had no impact on the diamond business, nor
has it dampened wholesaler confidence; most are adopting a wait-and-see
attitude on the subject.
Meanwhile, holiday order-writing has followed a predictable
pattern so far.
“Companies that forecast larger volume placed their orders
in August,” explains Arch Kitsinian, president of manufacturer SA Kitsinian in
Van Nuys, California. However, the independent stores are “typically later in
the game,” placing orders in September and October, he says.
Rickard, for his part, has already been delivering a “good
portion” of orders, with the remaining ones set to go out by the end of this
month.
360-degree view
While gift-giving increases during the fourth quarter, many
wholesalers rely on bridal as the foundation of their year-round sales. But the
jewelry product itself is just part of the equation; wholesalers are
increasingly recognizing the need to take broader economic, marketing and
industry trends into account.
“There is no question that we still count on the holidays,”
says VanderLinden, “but quite frankly, our biggest challenge is to bring the
customer back to the retail store. We are successfully dealing with compliance
issues [regarding jewelry-industry regulations], but that will mean little to
nothing if we don’t get the consumer into the stores to buy our products.”
The multitude of buying options available has transformed
the retail landscape.
“We have seen a lot of people going direct and brands
selling online. It is the nature of business now,” explains Kitsinian, whose
company owns bridal and fashion jewelry brand Vanna K. “But I don’t think the
fundamental challenges have changed all that much. The core of our business
revolves around the fact that we have to provide an extraordinary level of
service and exceptional quality on a timely basis throughout the year.”
For him, that translates into understanding the mind-set of
the retailer.
“At our headquarters, we tell each other that we want to act
like the jeweler’s back office,” he explains. “Our service has to include
customer follow-up, delivery, product mix and pricing — as well as the ability
to come up with new and exciting product. It is crucial to respond quickly,
especially during the holiday period.”
Forging loyalty
Of course, developing and strengthening retail partnerships
entails dedicated, ongoing efforts. “You have to forge the relationship all
[the other] 11 months of the year — not just the 12th,” says Rickard. “You
can’t call someone in November and expect them to buy from you. The reason you
get holiday business is because you’ve been there for them in March and in
August.”
He cites an “evolutionary” process that has changed the
wholesaler-client relationship. “In my world, you can’t just sell a diamond,”
he says, noting that offering value-added services has become more of a
necessity over the last four to five years. RDI hosts an in-house buying event
several times a year, where it holds information roundtables to educate its
clients. The company also gives jewelers pre-written postcards to send to their
customers, containing the jewelers’ store addresses and asking what type of
diamonds the recipients would like to buy.
“You have to be creative in the services you provide your
clients. It is a way of building trust and loyalty that is beneficial to both
partners,” Rickard points out.
Finger on the consumer pulse
Knowing consumer preferences is also helpful to the
wholesaler-client relationship, since it keeps suppliers attuned to what
retailers are likely to order.
“You have to understand your retailers’ needs, much in the
same way they need to understand their customers,” says VanderLinden. “There
will always be differences in jewelry preferences from region to region and
even from city to city. None of that is wrong. But you’re only right when you
are giving them what they want.”
Kitsinian is taking those efforts to a new level: In several
months, he plans to open a flagship retail store of his own, which will give
him firsthand insight into what consumers are buying. “We want to have a pulse
on what’s going on. We want to see for ourselves what people like and not wait
for our jewelry store clients to tell us.”
Partnering with designers on new collections is another
tactic, one that VanderLinden says holds “great creative opportunities.” It
helps that the Diamond Producers Association (DPA) is “advertising and
marketing diamonds again the way De Beers did years ago, before they stopped,”
he adds. He also believes the ability to customize jewelry will help encourage
sales: “Jewelry is very personal — and personal is what it is all about.”
This article was first published in the October 2018 issue of Rapaport Magazine.
Image: Diamond jewelry. (Shutterstock)
|
|
|
|
|
|
|
|
|
|
Tags:
holiday season, holidays, Jewelry, Joyce Kauf, Rapaport News, retail, suppliers, wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|