Show season is here, and retailers are looking at their inventories to see which events require their attention, and which events can be missed. Most of the decision making comes down to economics and practicality because, for some retailers, it’s simply not necessary to travel far in order to fill the needs of their customers, whose current demands seem to be centered around more affordable luxuries anyway.
Looking Local
Many small, independent jewelers in the U.S. choose not to attend any of the international shows. “I sell almost exclusively jewelry made in the U.S., and, as a result, it is not necessary for me to travel abroad,” said Tara Silberberg, co-owner of The Clay Pot in Brooklyn, New York. Silberberg does, however, regularly attend several national trade events, including the Vegas shows, the Buyers Market of American Craft and the New York Gift Show. “Focusing on trade shows that promote American craft is important to me.”
J.J. Slatkin, general manager of Jay Feder, with one store in Denver, Colorado, agreed that it’s not important to attend shows such as BaselWorld and Hong Kong. “In our opinion, it’s not important, and we don’t go,” he said. “During the Vegas shows, everyone comes to the U.S. anyway, and the international price for diamonds is generally higher. So it’s unnecessary for us to travel far.”
In California, Tim Harold, owner and manager of William Harold Jewelers in Newport Beach, also has decided that significant travel isn’t germane to the success of his business. “Our store is too small to require attendance at major international shows,” he said. “We attend Las Vegas and The InStore Show in Chicago — but not regularly.”
For some stores, the main reason for not attending the Basel watch and jewelry show is simply the event’s timing. “Basel occurs during our busy season in Florida, so being away from the store during that time is difficult,” said Scot Congress, owner, Congress Jewelers, with two stores in Florida. “And it’s not extremely important, primarily because the watch vendors come to me.” Congress, who does regularly attend Couture, JCK, Centurion and JA in July, continued, “Those venues are best for us because we primarily do business with the specialized designers, and those shows are where the designers bring in their newest creations.”
One small, independent jeweler who has traveled abroad for trade fairs is John Hayes, owner of Goodman’s Jewelers in Madison, Wisconsin. “I’ve gone to Basel, though I’ve never gone to Hong Kong,” he said. “Basel was an opportunity to visit with Rolex on their turf, and we met with Hearts on Fire, and we had an opportunity to see the trends in the European market, which is always ahead of the U.S. market. If we don’t go to Basel, it’s because we have to be out of the store longer than when we go to Vegas or the InStore Show, which I can just drive down to.”
Price Points
Regardless of which trade event buyers attend, one of the top issues all around is likely to be price points, because demand has been increasing for goods that consumers can feel comfortable buying. “We’re selling more low-end pieces,” said Harold. “The high-end pieces seem to be selling fine as well, but the middle price points — anything in the $3,000 to $8,000 range — are not selling much.”
Slatkin is also seeing a demand for variety. “We have increased the amount of lower-price-point fashion, and silver with semiprecious stones is moving,” he said. “We want people to feel comfortable with what they’re purchasing, but still feel like they’re getting something beautiful. And I think that in almost all cases, people are thinking about trading up somewhere down the line.”
Hayes agreed. “We’ve been looking for lower-priced products, and silver jewelry especially, because that’s what our customers are comfortable buying,” he said. “This has made our customers feel like they can still come in and buy something, and they can celebrate without spending too much.”
Fortune-Telling
Although no one is owning up to having a crystal ball stowed away somewhere, savvy retailers are hoping that with a broad spectrum of inventory options and careful planning for business travel this year, there may yet be an end in sight to the belt-tightening. “I believe that we are in for another tough spring and summer,” said Congress. “We’ve had a difficult time achieving any type of consistency. I am, however, very optimistic for December 2010 and beyond.”
Silberberg is cautiously optimistic, too. “Things seem to be pretty stable as we head into the spring,” she said. “Christmas was solid, though not a home run by any means. But much better than last year. And we had a decent Valentine’s Day and are projecting to pull solid numbers as we move into the wedding season.”
The Marketplace
• Round is the top-selling shape.
• Light carats and stones over 2 carats are selling best.
• SI2 is the clarity most customers like.
• H-I is the top-selling color range.
• In settings, 14-karat white gold outsells platinum, but not by much, because as gold prices soar, platinum is starting to seem affordable again.
• The average price for an engagement ring, including stone and setting, is $9,000.
Article from the Rapaport Magazine - April 2010. To subscribe click here.