RAPAPORT... Love it or hate it, Las Vegas is the biggest trade event for the U.S. jewelry market. But with a struggling economy and astronomical platinum prices, retailers are feeling a lot more conservative in 2008 than they were in 2007. Some are even choosing to skip JCK altogether. And those buyers that are going said vendors needed to work especially hard to get their attention.
To Go, Or Not?For some retailers, such as Ron Muffuletto, president of Jackson Jewelers in Jackson, Mississippi, Vegas is a great way to reconnect with existing vendors, as well as find something different. “We go to Vegas to see what’s new, and also to see people during the show,” he said. However, Muffuletto feels that the size of the show is both a blessing and a curse. “It’s so big, you can’t see everything,” he said, adding, “I’m glad it’s that big, though. It has to be big to be effective. Some shows aren’t big enough to justify spending the time and money you need to get there.”
Sandy Sansavera, vice president of merchandise at Robbins Bros., which has stores in California, Illinois and Texas, always attends JCK. “Obviously, it’s the industry event,” he said. “We always make JCK. It gives me the opportunity to concentrate on product and innovation.”
However, even the retailers who are choosing to attend JCK this year are being somewhat cautious about how much money they spend. “This year, we’re going to be more conservative because of the economy,” said Uziel Haimoff, president and chief executive officer (CEO) of IDG Jewelers, which has stores in the Northwest and Midwest. “We can always buy more later if the economy changes.”
Other retailers attending the show are planning to spend less time in Vegas than in years past. V. Paul Michaels, vice president of Michaels Jewelers in Connecticut, said, “I’m attending, but for seven days, not ten days like last year.”
Some retailers are cutting back on more than time and money. Eve Alfillé, owner of Eve J. Alfillé Gallery and Studio in Evanston, Illinois, a Chicago suburb, isn’t attending JCK at all. “I decided to skip Las Vegas this year because of the uncertain economy,” she said, adding that she also skipped the Tucson show. However, she said, “Things are actually better than I expected at our level, so I will attend the JA show in New York this summer.”
Attracting Retailers
Even though everything is tighter these days, most retailers are still looking for new and interesting product. Even though Alfillé decided not to make the trip, she conceded, “I do love the complete gamut of what you can find at Vegas, including the unexpected. You can always source the basics during the year. The shows have the extras, the unusual gems, the special pieces and the bargains.”
Since the show is so large, and there are so many people a retailer must see, vendors hoping to make inroads with new retail contacts have a particular challenge. Vendors who target their sales pitches at receptive retailers will stand a better chance of making an impact. This means contacting prospective buyers early on. Michaels expects vendors to “show sincere interest in my business long before the Vegas show.”
Sansavera agreed that advance contact was important, but cautioned vendors to do their homework. “People call us three or four weeks ahead of time, but most of those calls feel like cold calls,” he said. “They want to sell me color and fashion; they haven’t even looked at our website. One of the biggest turnoffs is when someone tells us, ‘I sell all the chains.’ That tells me they don’t do our quality.”
Michaels agreed that knowing whom you’re dealing with is incredibly important if you want to make a sale. He added that not understanding him or his business was a huge mistake. “Don’t pretend to know me or care about my business if you don’t,” he said.
Other retailers are particularly put off by overly aggressive sales pitches at the show itself. “Some vendors are just too pushy,” said Muffuletto. Alfillé agreed. “I do not like to be grabbed by barkers,” she said.
Haimoff sees the pushy sales approach fail all the time. “Sometimes, we are physically grabbed in the aisles,” he said. “Some buyers will just turn their badges around so they don’t have to deal with these aggressive people.”
Overly enthusiastic vendors aside, the biggest challenge for retailers at Vegas is finding time to see everything. “There are only so many hours in a day,” said Haimoff, “and you have to budget your time. An hour means an hour.” Sansavera agreed. “You’ve got to work your schedule tightly,” he said. “If I have an hour-long appointment, I have to keep that appointment to an hour.” He added, “When you’re doing a walk, you have to be able to say, ‘Here’s my card, call me.’”
Marketplace
- The best-selling cut for engagement rings is still round, with princess cuts coming in a strong second.
- The most popular carat weight is 1 carat.
- VS2 is the most-asked-for clarity, and SI1 is the second most popular choice.
- The top colors are F first, followed by G.
- While retailers are still seeing some play in platinum, 14-karat white gold is by far the best-selling metal for settings, due to its more affordable price. Palladium is getting stronger, and yellow gold accounts for only a tiny percentage of sales.
- The average price for an engagement ring, including stone and setting, is $6,400, though many stores are seeing regular sales in the $10,000 range.
Article from the Rapaport Magazine - June 2008. To subscribe click here.