As more jewelry stores are closing, and consumer spending
habits are changing, there is no arguing that the diamond, gemstone and jewelry
markets are feeling the pinch. Traffic was slower at the Las Vegas Luxury, JCK,
Couture and Antique & Estate Jewelry shows, yet buyers who took the time to
visit the shows were prepared to spend for the right items.
The 2017 JCK Show — the first ever to run from a Monday to a
Thursday and the second to the last time the show will take place at the
Mandalay Bay Convention Center — provided mixed reviews for the manufacturers
and diamond dealers who exhibited there this year, June 2 through 8 for Luxury
and June 5 through 8 for JCK.
The bad news: Slower foot traffic, according to a number of
exhibitors interviewed for this story. The good news: Those who came were there
to buy.
This sentiment was repeated multiple times by the reps,
diamantaires and retailers interviewed for this story. With six months into a
new year — following 2016’s record-setting number of North American retail
store closures — many exhibitors came to the show bracing for the worst. And
though business was not as brisk as it has been in years past, most were happy
with the orders they wrote and the contacts they made.
Adam Staub, president of Staub Representation in Boca Raton,
Florida, who sold at Couture, Luxury and JCK, said those who were there came
ready to write orders. “We saw fewer tire kickers,” said Staub, who represents
the Kabana, Yael Designs, William Henry and Galatea brands throughout the
southeastern states. “Retailers were buying better goods and we were
writing.”Traffic was slower than normal, said Staub, particularly at the
three-day, invitation-only portion of Luxury, which was open to all retailers
during JCK.
Exhibitor attendance dropped to 2,200 from approximately
2,500 in 2016. Still, said Yancy Weinrich, senior vice president of Reed
Jewelry Group, organizers of JCK, the show included 350 new exhibitors,
including six companies selling lab-grown synthetic diamonds. And, though
retailer attendance figures were not available at press time, Weinrich said the
jewelers who came were there to do business. “In an industry challenged as it
has been with many store closings, those who came were buying.”
“Those who came” also scrambled to attend the weekday show,
reorganized to begin after the Jewish holiday of Shavuot and, according to
Weinrich, done at the request of 400 observant companies. “We will have the
same holiday intersecting with the JCK show in 2022 and 2025,” she said. Bill
Sohn of Sohn & McClure Jewelers, Charleston, South Carolina, believes the
weekday schedule definitely contributed to the lower foot traffic he saw at the
show. “Normally we would travel to JCK over the weekend. This year, the weekday
show probably contributed to a slower pace. But still it was great, as the
vendors could spend plenty of time with us.” Sohn said he picked up a few new
collections and says his partner bought diamonds for stock, including larger
stones in the 2-carat to 3-carat range.
As with most shows, so much of the time there is spent
renewing old relationships and, hopefully, beginning new ones. As far as networking
is concerned, there is nothing like an in-person industry event and for the
time being, JCK still fits the bill as the leader despite a seemingly
ever-growing list of national and regional jewelry shows. Yosef Poplack, a
regional salesman for New York–based Gem Wave, Inc., said the company’s fancy
cuts and matched pairs did well at the show despite softer attendance. “JCK was
good,” he said, “because our customers were buying. And I left with a stack of
business cards. Because as you know, so much of the work begins after you
leave.”
It was generally agreed that traffic at this year’s American
Gem Trade Association (AGTA) show was slow, but most exhibitors said the trip
to Las Vegas was worth it. Located on the lower level of the Mandalay Bay
Convention Center, the AGTA opened a full day in advance of the heavily
promoted JCK Show, allowing buyers time to browse the stands at their leisure
instead of trickling down after attending the main show.
Filling in holes in inventories and shopping for “wow
factor” items was the most-cited strategy of the retailers, designers and
manufacturers attending this show. Many had already made major purchases at the
earlier Tucson and Hong Kong shows, so this event served as a more specialized
shopping excursion.
For the most part, shoppers were price-conscious, but bought
with conviction when they found the items they wanted. James Alger of James
Alger Co. Inc., in Bedford, New Hampshire, identified “high-impact stones in
top qualities” as always in demand. He said his early decision to concentrate
on top-quality gems had paid off in terms of sales and profits. In cuts, he
said cushions and rounds were very strong, as opposed to the intricately carved
fancies favored 20 years ago. “When people are optimistic about the future,
they will buy fancy cuts and exotic stones,” he said. “Nowadays, classic cuts
are top sellers.”
“We’ve noticed that many diamond manufacturers are showing
more interest in color,”observed Noelle Abi-Habib,
Kaiser Gems, Los Angeles, California. “They are looking for alternative bridal
gems, such as sapphires, spinels and aquamarines.” Alger cited the strength of “tropical
colors,” such as sapphires, aquamarines, Paraibas, spinels and morganite.
A countertrend to this was the experience of some suppliers
who noted a shift in taste led by Millennial buyers. Laurie Watt, principal at
Mayer & Watt, Maysville, Kentucky, said, “Millennial customers want
untreated, natural gemstones in ‘nonchalant colors.’” She cited gray-toned
gems, such as spinels and sapphires. Agreeing on this point was award-winning
gem carver John Dyer, of John Dyer and Co., Edina, Minnesota. He named Montana
sapphires in 1- to 3-carat sizes for use as alternative engagement rings. In
addition to their more moderate price levels, he concluded that in the younger
audience, “There is a certain revolt against uniformity.”
This isn’t to say, however, that proven classics are showing
signs of losing popularity. Sailesh Lakhi, Sparkles & Colors, New York,
said his best-selling gems were untreated Burmese sapphires and Burmese rubies,
the latter enjoying an uptick because of the ban recently lifted from their
importation.
Although the emphasis of AGTA is loose gems, beads and
pearls, a growing part of the sales action comes from finished jewelry. Akiva
Gil, New York, showed a larger collection of rings, earrings and necklaces
showcasing its best-selling Paraiba tourmaline, plus two new designs of blue
sapphires and diamonds where the bottom pendant of the earrings can be removed
to double as a necklace. Billed as “two looks for the price of one,” the new
items were purchased by several clients who liked the design as well as its
added-value feature.
Finally, combining the allure of designer jewelry and
multicolored gemstones was Philip Zahm, of Philip Zahm Designs in New York, who
expanded on his award-winning Sainte Chapelle ring, inspired by the cathedral’s
stained glass windows. New rings, earrings and pendants include rainbows of
fancy-cut sapphires, spinels and other gems.
As always, there was a diverse mix of designers and
manufacturers showing their latest collections to Couture’s selected, upscale
audience. As a result, definitive trends are hard to pinpoint because the
majority of designers rely on their individual creative visions rather than an
emphasis on fashion or current events.
However having said that, there were a few notable
directions at this year’s edition, namely the increased use of colored
gemstones — often pastels — in either tonal, rainbow or matching colorations,
and an emphasis on metal texturing such as engraving, satin-finishing,
brushing, stamping and patinas.
Perhaps one of the most notable trends, however, was not a
fashion direction, but instead a merchandising technique: the introduction of
lower-priced boutique collections of lighter weights, different materials, or
both, in an effort to attract new customers, as well as to offer opening price
points to established clients. For example, Brazil-based Brumani, known for its
rich, multicolored confections, introduced a blush-colored collection of pink
gold, pearls and sapphires aimed at a bridal audience.
Ray Griffiths of Ray Griffiths Fine Jewelry, New York,
producer of intricate, handmade gold jewelry, added a new collection of
smaller-scaled, 18-karat yellow gold earrings, priced from $2,000 to $2,500,
“wearable, everyday pieces” that serve as an introduction to his line. Both
firms reported their existing customers were happy with the new lower-priced
items and they attracted new clients as well.
Suna Bros., New York, a source for important diamond
jewelry, increased its output of stylish, colored-gemstone jewelry, using
tourmalines, zircons and spinels. This new grouping, as well as its “Blossom”
collection, of small diamond-accented gold pieces, is aimed at gift-givers and
female self-purchasers, noted Aron Suna, president.
The jewelry industry’s continuing interest in attracting the
Millennial buyer was less pronounced at Couture, which generally caters to
well-heeled, older clients. However, some designers, such as Torrance,
California–based Eddie Sakamoto, of Sakamoto Designs, reported strong response
to his bronze-and-brown diamond collection. “It’s all about the look, not the
materials,” he said. As did Cleveland, Ohio–based Heather B. Moore, who noted a
similar response to her eponymous company’s collection of personalized designs
of 14-karat gold and sterling silver, which invite the buyer to use words,
drawings or symbols to create and design their own jewelry.
In diamond and gemstone jewelry, the sky was the limit, with
some designers showing large, one-of-a-kind creations and others, opulent,
gem-encrusted pieces. In the latter, there was a fresh take on gem cuts, as
several exhibitors showed pieces featuring a number of different stones set
closely together, creating a kind of mosaic design. At Oscar Heyman,
New York, this took the form of round, oval, pear and princess-cut white and
yellow diamonds in a sinuous bracelet of 40-plus carats, shown right.
After a reportedly slow opening day — Couture opened on
Friday June 2, several days prior to the other Las Vegas shows — traffic was
fairly steady, most likely siphoning off some buyers from other shows, as well
as enjoying return visitors. A poll of exhibitors revealed a mix of prearranged
appointments and drop-ins, which included both established clients and buyers
looking for new sources. Overall, exhibitors reported a good show, and, in most
cases, one that was better than 2016.
Gary Kallan, representative of Casato Roma, summed up many
exhibitors’ reaction to this year’s Couture: “The show is going extremely
well,” he said, noting he was pleased by this year’s buyer turnout. “The goal
is always to build on our existing base and to add new clients as well.”
The Las Vegas Antique Jewelry & Watch show closed its
four-day run with exhibitors agreeing on several points: very good overall
traffic flow, but cautious buying and that the show’s temporary location at the
distant Las Vegas Convention Center was a nice change. Next year, however, it
returns to its regular Paris Hotel venue.
The change in schedule — the show formerly opened on Friday
and closed on Monday — allowed it a one-to-two-day advantage over the JCK show.
This year, the two shows opened at the same time, but exhibitors said they were
surprised and pleased by the heavy traffic on the first two days. However, most
said that even though they did sell some goods, overall buying was cautious and
deliberate; there were lots of lookers, be-backs and no-shows.
In terms of product and period, sales spanned a large range,
with, as usual, signed important period pieces netting the fastest sales. There
was a stronger presence of bold gold jewelry, led by David Webb, Ilias
Lalaounis, Angela Cummings and Buccellati. According to dealers, other popular
categories included vintage engagement rings, important colored gemstone rings
with diamond accents and renewed interest in pins from twentieth-century Van
Cleef & Arpels and Cartier to Art Nouveau and Victorian stick pins to 1950s
giant gold brooches.
As in recent years, buyers were mostly American retailers
and dealers with a smattering of Europeans, but very few Asians. This show is
fairly unique as the early dealer-to-dealer trading often sets the tone for
overall sales. However, on a positive note, many exhibitors said they saw a
substantial increase in independent retailers who are just beginning to delve
into the estate jewelry market.
“I saw many new faces at the show, looking, learning,
getting educated about estate jewelry,” noted Christopher Dawson, John T.
Haynes, Dallas, Texas. Concurring was New York–based Diana Singer, D&E
Singer. “There were more retailers feeling the market out,” she said, “plus
experienced buyers buying.”
No one was spending with abandon, however, Singer said. All
were buying carefully. Marlene Alvarado, Marlene Alvarado Antique & Estate
Jewelry in Corpus Christi, Texas, said, “Right now, everyone is cautious about
buying. There is uncertainty about the economy and the future.” Janet Levy, The
DeYoung Collection, New York, agreed. “It’s not gangbusters,” she said. “There
is hesitation on the retail level, some uncertainty.” It is also important to
note that there is a lot of memo business in the estate market, with retailers
typically calling in a number of pieces to show to potential customers and
returning what does not sell.
When walking the show, however, it is hard not to be dazzled
by showcase after showcase filled with glittering designs from past centuries,
even though there are changes in assortments from year to year. For example,
this time, there was much more oversized yellow gold jewelry on display,
including bracelets, necklaces and brooches. “We are seeing demand for very
large-scale pieces, particularly in yellow gold,” noted Gus Davis, Camilla
Dietz Bergeron, New York. “We are selling fewer, but bigger, pieces this time.”
Ronald Kawitzky, D.K. Bressler & Co., New York, summed
up the mood: “We sold pieces across the board from the seventeenth through the
twenty-first century,” he said. “There’s no question that antique jewelry is
coming into its own. It’s the best investment in old values.”
Buyers continued the conservative spending trend of the past
few years, but overall, the shows did better than was expected by many vendors
who feared that new scheduling during the week would impact business. While
there was less foot traffic at the shows, it proved beneficial to buyers who
were able to get more time and attention from their suppliers who didn’t have
to rush on to the next customer. Given today’s turbulent economic, political
and social situations both in the U.S. and aboard, it appears that the Las
Vegas jewelry shows fared well, if not better, than expected.
Article from the Rapaport Magazine - July 2017. To subscribe click here.