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U.S. Wholesale
By Shuan Sim
Wholesalers are finally feeling the holiday cheer as orders began filling in the past month or so. “Business has definitely picked up,” said Elliot Auslander, president of Ronelli Corp., a diamond wholesaler in Los Angeles, California. While sellers noted a small shift to slightly cheaper goods, they were glad for the business after what seemed like a protracted slow summer. Diamantaires were also relieved that the elections were over. “Pre-election, there had been a lot of uncertainty over how the economy might turn out,” said Aakash Shah, manager at Aakash Diamonds Inc. a wholesaler in Los Angeles, describing his business in recent months to be weaker year on year. Sellers had described buyers holding back from stocking up on goods as their clients felt that consumer confidence had been shaky. Wholesalers and retailers were dismayed at the initial shock to the stock markets following the election results but were buoyant at the stock markets quickly recovering to new heights shortly after, hopeful that this would bolster consumers’ desire to buy jewelry. In addition to lackluster sales brought about by political uncertainty, sellers lamented an especially slow October because of the holidays in India and Israel. Jinesh Shah, owner of JKS Diamond Inc., a wholesaler in New York City, remarked that he hoped November would allow him to catch up for the lost opportunity in October.
Smaller and affordable goods have been shining in recent months and prices were stable. “People are buying smaller and more affordable goods,” pointed out Effie Belassen, owner of D.B.S. Diamonds Inc., based in New York City. While G to I color comprised the bulk of sales, Belassen felt that more buyers had been leaning toward H color and lower, with some even making requests for colors up to M. The slow October and upswing in November was as expected. “It’s just reflective of the times,” she said. Melee performance had been stronger than single stone sales, according to Senil Shah, sales executive at Padmavati Exports Inc., a wholesaler in New York City. “I think it’s because of how the market has been. Our economy has not been that great,” he said. He added that there was better demand for higher-quality melee than higher-quality single stones. Aakash Shah felt that the improved demand for smaller sizes has led to those sizes being slightly harder to find, but it was far from a cause for concern.
Exhibitors felt that the show at the Diamond Dealers Club (DDC) in New York was only okay. A total of 150 exhibitors attracted roughly 1,700 buyers, including both DDC members and nonmember buyers. David Lasher, managing director of DDC, felt that the show provided sellers a platform to do business in what was otherwise a soft market. “There are still significant buyers out there,” Lasher said, describing the event as a good opportunity to gather wholesalers and retailers. Jinesh Shah felt that the 2016 Israel Diamond Week was better organized than the one in 2015 and he saw both returning clients as well as interested new customers. Ashish Badera, sales manager at Presto Trade, a diamond manufacturer, highlighted that he mostly saw returning customers and that buyers were asking for discounts, though nothing out of the ordinary.
General sentiment about the industry ranged from fair to great. Belassen hoped the uptick will last. Aakash Shah felt that this holiday would not be impacted much by the results of the presidential election. “I can’t say whether the results of the election will help or not, but I do hope it will be a good holiday,” Shah noted. He felt that as long as consumer demand for jewelry remains resilient, the industry would do well. Auslander found the pick up in business in mid-November a good sign of how the industry will be going forward into the holidays. “I think it’ll be excellent,” Auslander concluded.Article from the Rapaport Magazine - December 2016. To subscribe click here.
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