RAPAPORT... The last stop for diamonds is the retail store. Here is a behind-the-scenes look at what is happening at retail in the U.S.
HONESTY, POLITENESS RANK HIGH WITH LUXURY CONSUMERS
In a new survey of some 1,000 consumers with a median net worth of $1.5 million and median income of $250,000, the Luxury Institute (LI) found that retailing salespeople must have more than a pretty face to qualify as a good or outstanding salesperson in the eyes of luxury shoppers. Product knowledge, personal attention, honesty, trustworthiness, and politeness and courtesy are all key qualities the average wealthy consumer in the United States is looking for in a salesperson, according to the New York-based institute.
Being charming and witty resonated with only two in 10 shoppers and being persistent turned shoppers off all together. More than four out of five — 83 percent — luxury consumers identified honesty as one of the top three attributes for a good salesperson and 56 percent placed it among their top three attributes for an outstanding salesperson. Meanwhile, 74 percent of wealthy consumers ranked trustworthiness, a close cousin of honesty, as a top three attribute for a good salesperson and 42 percent of them felt an outstanding salesperson would also possess this trait, the LI added.
Additional important characteristics cited by a majority of LI survey respondents for a good salesperson included: politeness and courtesy, which attracted a 72 percent rating; reliability with 69 percent; keeping promises with 62 percent; and being a good listener with 59 percent. The survey also suggested that aside from providing reliable answers to questions and otherwise guiding customers to make informed decisions before a sale, salespeople were frequently viewed by wealthy customers as their primary point of contact with the company to help them solve any problems they may have after their purchase.
Consumers voluntarily listed retail brands they recalled as meeting their salesmanship expectations. The top ten brands in order were Lexus, Nordstrom, BMW, Mercedes, Tiffany & Co., Neiman Marcus, Cadillac, Acura, Four Seasons, and Infiniti. Eighty-five percent of wealthy consumers in the survey indicated that they would be likely to recommend a luxury brand after a good sales experience, with two-thirds saying they were very or extremely likely to make a recommendation after a positive experience.
TRADE UP OVER TIMEThe concept of “Grow Your Own Diamond” might earn a doubletake from an industry careful to distinguish between mined and lab-grown diamonds. However, London Diamond Bourse & Club’s member Jeff Cadby adopts the term for his new venture, which offers couples the opportunity to buy a fully certified diamond ring from his Hatton Garden location and build up their diamond collection over a lifetime.
Each ring comes with a certificate promising that if the engaged couple trades up to a more expensive ring — as their finances allow — they will receive the full original purchase price as a trade-in value, provided their next ring costs at least 40 percent more and they purchase it within five years.
“Although growyourowndiamond.com is web-based, we anticipate that the majority of our customers will want to visit us here in the London Diamond Bourse, where they will be able to choose their individual diamond and mount,” said Cadby. “Each ring will be custom-made to the couple’s own preference and budget, with platinum diamond rings priced from under £1,000 ($1,970).”
All of the company’s stones are certified natural, untreated, nonconflict diamonds. Each engagement ring comes with an “Our Promise” certificate, outlining the terms of upgrading to a more valuable ring.
DE BEERS, TIFFANY GO TO LAS VEGAS
De Beers Diamond Jewellers, the retail partnership between De Beers and luxury goods company LVMH Moët Hennessy Louis Vuitton, has opened a third store in the United States, this time in Las Vegas in The Forum Shops at Caesars Palace. The group also operates boutiques at the corner of Fifth Avenue and 55th Street, New York City, and on Rodeo Drive, Beverly Hills.
The Las Vegas boutique, which spans roughly 1,200 square feet, will carry new collections designed by De Beers Creative Director Raphaele Canot — including Secrets of the Rose, Talisman, and Radiance — as well as bridal jewelry, one-of-a-kind high-end jewelry, and signature collections such as Wildflowers.
With design concepts inspired by architect and interior designer Antonio Citterio, the De Beers Las Vegas store features open spaces, mahogany walls, etched glass paneling, and a private viewing area, presenting an uncluttered context for the jewelry. In addition, 360-degree counters allow customers to browse without a salesperson across the display case from them. De Beers also has retail stores in Dubai, London, Paris, and in Tokyo, Osaka, Kobe and Kyoto, Japan.
Meantime, Tiffany & Co. is also planning to open a store in The Forum Shops at Caesars Palace — in late summer 2007. This will be the second Tiffany location in Las Vegas. The jeweler already operates a store at the Bellagio resort hotel. The new store will be configured on two levels. An array of Tiffany’s renowned collections will be offered, including the signature designs of Elsa Peretti, Paloma Picasso, Jean Schlumberger and Frank Gehry.
CHOPARD MOVING TO BIGGER NYC SPACE
Chopard, the 147-year-old family-owned watch and fine jewelry company, will open its new international flagship boutique at 709 Madison Avenue, New York City, in the fall of 2007. The new store, in a corner location at 63rd Street, will have more than triple the retail space of the current boutique at 725 Madison Avenue and will be one of the largest Chopard boutiques worldwide.
Renowned architect and interior design hall of fame designer Thierry W. Despont has been commissioned for the project. “It is a spectacular space on one of the most important retail corners in New York City,” described Marc Hruschka, Chopard’s president and chief executive officer.
YURMAN OPENS RODEO DRIVE STOREDavid Yurman recently opened a new boutique — at Rodeo Drive, Beverly Hills. The store features a selection of limited edition jewelry, including rare stones, South Sea pearls, high-jeweled timepieces and chocolate and golden pearls, all of which are sold exclusively at the Beverly Hills location.
The Beverly Hills store will serve as a template for all future David Yurman boutiques. “[It] perfectly reflects my artistic vision and the fundamental philosophy of my designs,” said David Yurman. “We are thrilled to be on Rodeo Drive, one of the most renowned shopping districts in the world.”
Yurman came up with the design concept and the architectural firm used was Yabu Pushelberg. David and Sybil Yurman commissioned a work of art in glass, lacquer and light. The architectural design of the 1,000 square-foot store gives the impression of three-dimensional artwork: the window features a sleek wall of water installation that displays jewelry in a floating pool of water; and suspended elements, including custom cantilevered showcases and wall vitrines, are placed throughout the store.
CARTIER LAUNCHES WOMEN’S BUSINESS AWARDS
Cartier and the Women’s Forum for the Economy and Society (WFES) have joined forces to launch the Cartier Women’s Initiative Awards (CWIAs). The CWIAs are designed to give a helping hand each year to five women in the process of developing innovative business projects. The winners — who will come from Africa, the Asia-Pacific region, Europe, North America and South America — will not only each receive $20,000 in prize money, but will also get coaching and networking opportunities through Cartier, the WFES, consulting group McKinsey & Company, and graduate business school Insead.
Female entrepreneurs from around the world are encouraged to submit their business plans by February 28 this year, and the winners will be selected at the end of two phases of evaluations. Awards will be presented for the first time in October 2007 at the annual WFES gathering. Entry criteria and/or further details on the competition are available at www.cartierwomensinitiative.com.
BIRKS’ 100TH ANNIVERSARY IN VANCOUVERCanada’s iconic luxury jeweler Birks will celebrate a century at its Vancouver store this month with a commemorative private event hosted by Count Lorenzo Rossi di Montelera, chairman of Birks & Mayors Inc. To highlight some of its achievements, Birks will showcase a prestigious collection of diamonds and award-winning pieces at the event, as well as the modernist designs of the Vancouver-based Birks Signature designer, Toni Cavelti, who will be among the expected 300 guests. Some of Cavelti’s latest creations to be unveiled will include a detachable 10-carat morganite gemstone necklace and a hand-polished yellow gold pendant on a rubber cord. Founded in 1879, Birks will donate a percentage of the evening’s sales to the Vancouver Heritage Foundation.
Article from the Rapaport Magazine - February 2007. To subscribe click here.