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U.S. Wholesale
By Shuan Sim
The first two months of 2017 marked the beginning of a slow period for diamantaires but many were thankful things were not worse, year on year. “Business has been slow with some okay moments, but it’s about the same compared to last year,” said Mike Gale, owner of Gale Diamonds Chicago. Many wholesalers expected this lull at the start of the year, and they saw movement mostly in bread-and-butter diamonds as retailers have increasingly shied away from holding inventory. Furthermore, buyers had mostly been asking for Gemological Institute of America (GIA)–graded goods during the period, putting further strain on sellers who carry ungraded diamonds or diamonds not graded by the major labs in the U.S.
The Diamond Dealers Club of New York (DDC) held its sixth edition of India Diamond Week on the DDC’s trading floor in New York City from January 23 to 26. It was organized with the Gem & Jewellery Export Promotion Council (GJEPC) and attracted about 60 exhibitors and about 1,000 buyers. The event was a welcome break in the seasonal lethargy that came post-holiday, allowing vendors to reconnect with existing clients and giving them the opportunity to forge new accounts. “We find that not only are the exhibitors returning year after year, but buyers continue to attend in order to maintain those relationships,” said Reuven Kaufman, president of DDC. “Especially in today’s market, we see this show as a tremendous opportunity for companies to stay relevant and connected to others in the industry.”
Wholesalers describe price competition creeping up over the years, led by online sellers, making remaining afloat harder. “My buyers have become more price conscious,” noted Rose Proler, president of Rose Proler Inc., a jewelry designer and dealer in Houston, Texas. Proler says that since many of her clients are introduced to her company by word of mouth, most are ready to spend when they enter her office. “My younger clients tend to be referred by their mom or dad and others, because they’ve worked with me before,” she said. “They’re not really shopping around at that point. It’s more about how much they’re willing to spend.” However, Proler has noticed that clients in her region were still concerned about the economy and were not ready to cut loose their purse strings yet. Michael Moskovitz, salesperson at Robert Moskovitz Co., a wholesaler based in New York City, echoes the sentiment that clients have been reluctant to spend big. “VVS, and even VS goods, aren’t really doing well,” he said. “It’s too expensive for them, most of the buyers feel.” Amid this slow period, Moskovitz said the company has been running promotions to stay ahead of the price competition. Most diamantaires report no inventory trouble and are able to get whatever goods they need. Some wholesalers might have noticed slight leanness in oval supply at good prices due to enduring brisk demand for the shape, but they were not too concerned about it.
For many diamantaires, 2017 hasn’t shown any clear signs that the economy would be good. In fact, sellers are expecting even more quiet times in the next two months ahead. “April will probably be the low point before a slow pickup,” said Raffi Meric, owner of Just Diamonds, a wholesaler based in San Francisco, California. Dealers would mostly be just holding out until the climb back up to June, when the big shows, including JCK, are around, said Meric. “This slowness is typical post fourth quarter so I’m not too worried,” said Rich La Motte, owner of RTL Wholesale Diamonds & Fine Jewelry, in San Francisco. “However the future is unpredictable, as there are no clear signs where we’re headed,” he said, adding that he would like to remain optimistic about it. Moskovitz said that the best dealers could do in this time of uncertainty is to keep reaching out to customers, and perhaps make a little less. “There’s only so much you can do,” concluded Meric. “During slow times, we just hunker down and ride it out. It’s what we’ve done for the past ten years and we’ll continue doing that.”Article from the Rapaport Magazine - March 2017. To subscribe click here.
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