RAPAPORT... As retailers report current traffic picking up in their stores, they’ve got one eye looking far ahead down the road to the all-important holiday market. Some retailers report increasing awareness of India’s diamond industry, with a few getting strong supply from India. Alexis Gilbode, the diamond buyer for Ross-Simons, said India is a major supplier for her company. Others still find India offering competition in pricing, but not in quality.
Gary Sanchez, owner of Diamonds Direct, St. Petersburg, Florida, said he is increasingly aware of India’s diamond industry and sees it as a growing presence in the industry. “Every time we go to Antwerp with IJO [Independent Jewelers Organization], we see more companies from India opening offices there,” he said. “It’s clear they are not known just for melee anymore.”
Holiday Browsing Starts
Gilbode saw traffic pick up in the company’s dozen stores, which stretch from Georgia to Massachusetts, at the end of August and beginning of September. She is already seeing some well-organized shoppers come in to begin their initial browsing for Christmas. However, she expects Christmas shopping patterns of the past few years to remain the same, with most people holding off purchases until mid-December.
“Then, those last ten days, people realize — it’s Christmas!” she said. Ross-Simons does some holiday promoting, but not much; most of the marketing is focused on a private sale in November for its top customers.
Overall, studs are good sellers for Ross-Simons. Diamond hoops of all sizes continue to do well. Hoops can be designed with stones inside or outside and have a total carat weight of three-quarters to 1 carat. However, Gilbode said, 2-carat hoops sell consistently, with some going as high as 3 or 4 carats in total weight. Diamond line bracelets continue to move; solitaire pendants don’t really seem to appeal to her customers until Christmas gets closer.
Ross-Simons is seeing a fair amount of engagement rings, according to Gilbode, but she’s also seeing self-purchasers. Fancy cut diamonds are the mode for her clients; yellow diamonds, popular about a year ago, have surged again. Ross-Simons has made its name on certified stones, said Gilbode, who has “great” suppliers who provide the company with “what I want, when I want it,” which means her customers get the same. Pricing works to her advantage, as well. “We’re touted for the best diamonds at the best prices.”
David Fikse, owner of Gerald’s Jewelry, Oak Harbor, Washington, specializes in clean, white diamonds with fine cutting, proportions and finish. One diamond that does very well among customers looking for something “extra special” is the Forever 10 diamond, which has 71 facets.
“Cutting is something we specialize in,” he said. He sells ideal and hearts and arrows cut diamonds, which are hand selected.
Gerald’s Jewelry does a lot of bridal business and Fikse said bridal settings range from solitaires to filigree and carved rings. He’s seen carat size rise in the past three years or so from 0.25 to 0.33 carats up to 1 carat. Most of his customers like VS to SI quality and E to H colors; he accommodates those on a budget with “eye clean” and “face up” white to keep prices in line.
Sanchez said that all types of diamond jewelry have been selling well for his store this year, including fancy yellow and white diamond fashion, as well as traditional bridal and studs. Sanchez carries a wide range of diamonds, from D/IF to K/I1, but his most common diamond sale this year has tended to be I/ SI1, followed by a color jump to F.
Rounds Still StrongMost of the diamond sales at Biederman Jewelers, Sparta, Wisconsin, are engagement and anniversary gifts. Rounds, always popular with owner Bill Biederman’s customers, are stronger than ever. For awhile, marquise cuts did well, then faded and gave way to princess cuts, which have also slowed. But round cuts continue to resonate with the store’s customers. The ratings for the diamonds Biederman sells reflect his own taste, which means SI grade and white diamonds at H and up. His customers tend to buy more on the cut and the make rather than the quality.
Diamonds cut in India can give him some competition because the price is often lower, but he finds that if he compares a stone cut in India with one cut in Belgium or Russia, the superior quality of the latter sells his customers on them.
Curt Marino, Seita Jewelers, Tarentum, Pennsylvania, said that most of the diamond jewelry his store is selling is traditional and contemporary bridal.
The Marketplace• Earrings sell well, especially solitaires; pendants and bracelets follow.
• Carat size is usually 1 carat to nearly 2 carats, but starting size can be three-quarters of a carat.
• VS-SI for clarity, colors E-H, are less in demand among the more price-conscious..
Article from the Rapaport Magazine - October 2007. To subscribe click here.