|
|
U.S. Wholesale
By Shuan Sim
Wholesalers reported that business has been picking up as their retailers have also seen an increase in sales as the holiday season approaches. The uptick was welcomed, given the slow sales sellers had experienced in the past few months. “We’re finally seeing steady business right now,” said Ramesh Diora, owner and president of HVK Jewels Inc., a manufacturer of diamonds and diamond jewelry in New York City. Manufacturers said that the sales of bridal jewelry and diamonds typically featured in this type of jewelry — round stones between 1 carat and 3 carats for engagement rings — have been good. Diora described selling more earrings and pendants recently, as well. More expensive and better-quality goods have been in demand, too. Saul Goldberg, president of New York City–based jeweler William Goldberg Diamond Corporation, shared that the U.S. market seems to be much better than usual, especially compared to the business he’s seeing in Asia and Europe. Some wholesalers speculated that while people tend to buy more jewelry during the holiday season as gifts, the U.S. economy and job markets have been decent overall lately.
It does not seem that buyers have been looking for steep discounts, sellers confided, as was the case two to three months ago, when buying was weaker. “Retailers are still buying from my lines,” said Diora, adding that he has not seen a drop-off among buyers. “I don’t think it’s easy out there for the retailers,” noted Goldberg, pointing out that even with oil prices down, the typical big-spender jewelry consumers who benefit from the oil industry have become more reserved in their buying patterns. Parag Jain, manager at Paramount Gems, a diamond and jewelry manufacturer in New York City, said that his clients have been stocking up when needed, though they have become more methodical in their purchases as capital becomes limited. “The wholesale market has been kind of bad, as there has been little trading activity,” Jain pointed out. Others felt that the robustness of buying activity depended on where in the U.S. these retailers are located. “In Florida, we’re not yet seeing a decrease in retailers buying, but in Oklahoma, perhaps, there’s been a slowdown,” said Bridget Vasquez, sales manager at Idor Diamonds Inc., a wholesaler in Chicago, Illinois, possibly referring to the effect of depressed oil prices in Oklahoma.
Like other wholesalers, Vasquez had no complaints about the recent lowered prices, since sales have been picking up. They have noted that prices seemed to be stabilizing instead of freefalling. Many diamantaires have not reported seeing any price resistance. As the demand for bread-and-butter goods — diamonds around 1 carat, G to I color and SI clarity — ramps up, manufacturers noted that getting those goods at desired prices had become challenging. “However, if you have a unique 7-carat-and-up stone of good make and were looking to sell, you can probably get it at whatever price you want,” remarked Goldberg. The reduced cutting and importing of rough have left certain goods harder to replace, especially well-made diamonds. Certified goods remained in popular demand among buyers as well. Specialized items — custom goods with specifications on size and quality — have also become harder to replace. Still, most manufacturers reported having no inventory trouble overall.
Consumers have become more comfortable with spending and jewelers have welcomed that mind-set. Vasquez commented that while wholesalers had to deal with a recent adjustment in manufacturing levels and reduced supply, retailers had to deal with the public simply not buying as much as they used to. Others were worried that the recent stock market correction might have soured holiday spending. “However, it has been picking up for retailers, too,” she said, describing how the upswing in business has left their fears unfounded. Still, diamantaires were cautious about being too optimistic about the future. “It’s hard to predict how things will go, isn’t it?” said Goldberg, adding that he hoped that the current growth will continue into 2016. Jain said that he was pleased that business has been up year over year for him and believes that the good performance in the industry will endure over the coming months. “I think it will be a good Christmas,” he concluded.Article from the Rapaport Magazine - December 2015. To subscribe click here.
|
|
|
|