Markets US wholesale: Strong sales as traders seize opportunities

Although summer has traditionally been a slow season, wholesalers reported sales ranging from good to exceptional. But with fall beginning, traders took a broader view of the industry and the overall American marketplace.

New York:
‘There’s always a buyer’

“The daily nuts and bolts of regular business seem to have taken a slight back seat this summer, with everyone flying around the country going from one trade show to another, looking for the next new and exciting item,” said David Rakower, president of New York-based manufacturer Joseph Asher Collection. However, words and actions are often contradictory, he went on. “We get to that pivotal point when a prospect tells us it’s exactly what they’re looking for, and then they say, ‘I have to think about it.’ Buying something different is a little scary, so they make the safe choice.”

Still, he said, “every shape and size sells; there is always a buyer at an acceptable price.” Prices for commoditized items such as 1- to 2-carat, G-color SI1s have been soft, but standout items with a story attached, such as a D-flawless pear shape with “silky, subtle shoulders,” will always sell at a premium, observed Rakower.

“The Christmas season will unfold the way it does,” continued the jeweler, who has instituted a year-long program with his retail clients that includes holiday orders. He said there was “little urgency” for consumers to buy early. The problem is not the lack of national diamond and jewelry advertising, which he considers “ample,” but rather that it begins so early. “Over the last 10 years, Christmas advertising starts when kids go back to school, tempting the customers to hit snooze. They don’t wake up until the last weekend before Christmas.”

Philadelphia:
Future perfect

Eli Niv of Crown Casting, a manufacturer in Philadelphia, Pennsylvania, has benefited from the increasing demand for American-made jewelry. “This has been the best year in the last five years,” he said. “Made in America has really made a comeback because of better quality, better service and quicker turnaround. And that will help us to have a great Christmas season, too.”

While it is still too early for his holiday orders, bridal remains extremely strong, with bread-and-butter, 0.50- to 1.50-carat diamonds driving sales. In response to retailers’ requests for “not-off-the-shelf” US-made products, Niv introduced a branded line, Thorn, in 2015; it revolved around the theme, “Complacency is not a word in our vernacular.” Still, Niv sees a “divided” market. “We’re missing the middle. There is very little between the low end — $1,500 to $5,000, SI2- to SI3-clarity — and the high end — above $10,000, VS-clarity.”

Niv views jewelry and design trends from a broad historical perspective, but he has his eye on the future: He believes the market for square stones is coming back. “I see it in requests for tapered baguettes. I predict a turnaround for princess cuts in the next six months to a year.”

He also hires and trains young people to ensure that the industry maintains a source of skilled workers. “I don’t think much thought has been given to training the new generation. It’s their future and the future of our industry.”

Dallas:
Staying proactive

“Business is absolutely extraordinary,” said Jason Stephens, sales manager of Bova Diamonds. The Dallas, Texas, wholesaler specializes in 3-carat-plus diamonds of VS2 clarity or better and sells to retail jewelers around the country. Rounds are top sellers, but Stephens has been seeing more interest in pear-shaped diamonds.
He agreed that participation in trade shows had helped attract more business, but said it was only one part of his company’s proactive strategy. He attributed much of the firm’s success to networking, referral business, and the customer service Bova provides to its retail clients. “You can’t wait for business to come to you. Call on past clients, ask for more referrals and call someone you haven’t spoken to in months,” he advised.

Stephens has not observed any price fluctuations or inventory issues. Based on his current business, he anticipated a “really strong holiday season.” The absence of industry-wide advertising was not of particular concern to him, either. “Name and integrity go far beyond what advertising can do. Trust brings people in. At the end of the day, it’s what I can do for the retailer, not De Beers,” he pointed out.

Article from the Rapaport Magazine - September 2018. To subscribe click here.