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Retailscope
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.
U.S. Luxury Consumer Spending Holds FlatAffluent consumers in the U.S. are giving mixed signals about their willingness to spend so far this year, according to Unity Marketing. The group’s Luxury Consumption Index (LCI) rose 6.7 points during the first quarter to reach 82.8 points. However, today the LCI still stands below its post-recession high of 86.9 points reached in January 2010. Tempering the luxury marketer’s enthusiasm for the return of the luxury consumer is the fact that spending on luxury by the affluent consumers surveyed was basically flat against the previous quarter and 4.1 percent less than reported in the first quarter of 2010, the LCI found. Unity Marketing’s president, Pam Danziger, explained, “There is a lot of ‘noise’ out there about the return of the luxury market. I am advising my clients not to believe everything they see or hear. “While the worst may be behind us, there are still worrisome trends brewing in the market for luxury. For example, the rate of change in luxury consumers’ spending peaked between the second and third quarter 2009. Since then the rate of change has steadily slowed, which indicates that much of the pent up demand for luxury goods that built during the worst of the recession has already been released. Spending on luxury is likely to flatten out over the coming quarters unless there is dramatic improvement in the economy overall, which seems doubtful,” she added. Commenting on the latest LCI survey results, Tom Bodenberg, Unity Marketing’s chief consumer economist, added, “This quarter’s rise in the LCI, but with luxury consumer spending flat lining at the same time, signifies a great deal of uncertainty and market demand volatility. The rise in the LCI reflects a noted reduction in market pessimism. However, this has yet to fully translate into increased demand. While there is a slight yet continuous increase in the index over the past 12 months, increase in the rate of growth of the index will not pick up unless there is a sustained economic recovery.”Lazare Kaplan Launches App for iPhone, iPad Maurice Tempelsman, chairman of the board of directors of Lazare Kaplan International Inc. (LKI), announced the introduction of “The Lazare Diamond – 4Cs” App for the iPhone and iPad, an interactive and educational tool for retailers, suppliers and customers. This user-friendly, hands-on tutorial explains the 4Cs and offers GPS capability to identify local jewelers who sell the Lazare Diamond. Through interactive screens, users can compare the color of diamonds, see the differences in carat weight, examine the clarity by viewing microscopic inclusions and understand the brilliance of the ideal cut. Available as a free download on iTunes or through a QR reader, the app is being rolled out in the U.S. first. The company plans to translate it into Spanish, Japanese, Chinese and Indian dialects as well as Arabic at a later date. The app is intended to reflect LKI’s tradition of innovation and its commitment to its retail partners.Stuller Inc. Creates Community for Bench JewelersStuller Inc. launched a new website designed to appeal to the bench jeweler and hobbyist, www.benchjeweler.com. The site incorporates social media and provides access to trade tools, articles, news and members-only discounts. It is designed to encourage a bench-centric community. Jewelers can create a free myBench profile and participate in forums and discussions. They can search the library of reference materials and also engage in live chats with Stuller’s experts and receive same-day answers to their questions.The company history was the inspiration for the new site that replaces www.stullerbench.com. “Findings, tools, mountings — they’re our core business and a staple in our industry, ” explained Matthew Stuller, the founder of the company.Harmon Group Launches Digital Sales Program REPS The Harmon Group launched its REPS turnkey digital sales tool for jewelry manufacturers for use on a laptop or iPad. Manufacturers can showcase their entire jewelry lines in high resolution, eliminating the need for extensive product and/or samples.From a single product prototype, REPS enables manufacturers to digitally create complete line extensions, manufacturing products only after a purchase order has been received. “We designed REPS to be highly intuitive and mirror the way manufacturers currently sell,” said Rick Arnemann, chief executive officer (CEO) of the Harmon Group. “While we believe REPS will revolutionize the jewelry industry, the transition to electronic sales will feel seamless.” Products can be custom-assembled for each sales presentation. Multiple product views, including a 10X loupe view, allow retailers to view jewelry in great detail. The REPS feature lists product pricing and terms and discounts.The system can be updated automatically to reflect current metal prices. Adjustable diamond pricing will be available soon, according to the Harmon Group. REPS generates purchase orders and stores comprehensive customer information including buying history.Perfect Cut Expands In-Store Viewing Options Perfect Cut Jewelry Designs of New York City introduced an application for retail clients to customize products instantly in the store. The application can be used on any computer or iPad, which enables a 3D video for most of the styles. Customers can view the product in the store and then select different stones to individualize their purchase. The program tallies the cost, including the retailer’s markup. “Orders can be delivered to jewelry stores within three to five working days. In addition, we can embed the system into a retailer’s website,” said company founder Edward Zylka.
Perfect Cut Jewelry Designs is offering a free iPad to all new accounts with orders totaling at least $5,000.Robbins Brothers Raffle Benefits North Texas Food Bank Retailer Robbins Brothers partnered with the North Texas Food Bank to sponsor a raffle during the “Taste of the NFL: The Ultimate Cowboys Tailgate Party.” Robbins Brothers hosted an ‘’Engaged to the Cause’’ contest that gave partygoers the opportunity to buy a jewelry gift box for a chance to win men’s wedding bands, bracelets and pendants from designers Simon G., Lori Bonn and Frederick Goldman.This was the seventh annual tailgate party benefiting the North Texas Food Bank. This year’s event was presented by Lockheed Martin and hosted by chef Kent Rathbun of Abacus and Dallas Cowboys DeMarcus Ware and Preston Pearson.Tanya Stafford, general manager of Robbins Brothers’ Dallas store, said, “It’s always an enriching experience to give back to the community, especially to children who suffer from hunger.”Rio Tinto Enters the Jewelry Gift Market in IndiaRio Tinto launched a new diamond marketing initiative to capitalize on India’s growing wedding market. The Nazraana campaign was unveiled in Goa in time for the upcoming wedding season, with more than 80 jewelry retailers viewing the company’s product range.Rio Tinto explained that the Nazraana initiative focuses on the more modest diamond jewelry gifts given to family and friends at the many celebrations surrounding the wedding occasion, rather than the elaborate diamond jewelry traditionally worn by the bride.“We are very confident in the growth prospects for diamond jewelry consumption in India. The fashion jewelry accessory that is the cornerstone of the Nazraana initiative is well placed to appeal to a new generation of diamond jewelry purchasers,” said Jean-Marc Lieberherr, general manager for sales and marketing at Rio Tinto Diamonds.Article from the Rapaport Magazine - May 2011. To subscribe click here.
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