With the JCK Las Vegas show approaching at the end of this month, wholesalers are looking forward to seeing what’s new, even as they try to take the pulse of an up-and-down market.
New York: Getting in shape
“The sales are there, but it’s taking more of an effort to make them,” said Nilesh Sheth, president of New York manufacturer Nice Diamonds.
He described current demand as “spotty,” attributing it to people being unsure about “which way the economy is going and consumers probably not spending as much.”
While merchandise is generally available, Sheth pointed to shortages of some goods that “everyone is looking for in the US — VS2 to I1 [clarity] and D- to I-color in pretty much all shapes.”
However, Sheth takes a proactive and positive approach to driving his business, with products that attract consumer interest and help retailers make decent markups.
“We’re doing well with a lot of unique shapes such as horse heads, butterflies, kites and lozenges, in addition to rose cuts, old Euros and old miners,” he noted. He also pointed to designers’ interest in salt-and-pepper diamonds.
Sheth is excited about seeing the new JCK venue and looking forward to learning more about the Diamond Producers Association (DPA) promotion targeting women self-purchasers. “If they promote it the right way, with sufficient support, everyone in the industry will be able to increase sales this year,” he predicted.
Chicago: Changing sentiment
“We saw an uptick in our business around tax time, which really didn’t make sense,” reported David Levine, owner of diamond wholesaler William Levine Fine Jewels in Chicago, Illinois. Although business had been “very soft,” he cited “a definite improvement,” especially in larger stones at higher price points.
“It’s a very strange time in the diamond industry, with seemingly no rhyme or reason why the last month has been better than the previous month or two,” remarked Levine. “It appears that the mood is a little better, but I’d say it’s guarded.” In general, he said, “all the stores are saying that they’re not seeing the traffic they used to. That’s a real danger out there for the smaller stores.”
Adding to his concern is that “the whole gamut of diamond and precious-stone jewelry seems to be of little interest to millennials. In some ways, it’s the largest obstacle for the industry, and I don’t know how we are going to overcome it.”
While online competition “is another negative for us,” Levine said, “at least we can attack that by reducing our profits. There is really nothing diamond dealers and jewelry manufacturers can do to change the buying habits of millennials.”
He admitted not knowing what to expect from JCK. “Fortunately, there is a better mood, which typically translates into more optimistic buyers and more purchasing. But the sense I’m getting from my customers is that it’s really wait and see.”
Miami: Focus on jewelry
Sales were “pretty steady” for Thomas Falkenstein, owner of diamond and jewelry manufacturer Falber Diamonds in Miami, Florida. He said his business was stronger than the industry overall, and that his active efforts to find new clients and target customers’ needs were a significant factor.
“I’m really trying to diversify my business by doing more jewelry and focusing my diamond purchases based on specific client demands,” he elaborated. “I’m buying diamonds that I am sure are going to sell in the next few months.” He also launched Falber Jewels, a collection of diamond jewelry.
Falkenstein, who specializes in dossiers, observed the trend for smaller and “less and less flashy” pieces, especially among younger buyers. But overall, the diamond market is not growing. “We’re not Silicon Valley,” he commented.
He voiced concerns about the impact of lab-grown diamonds. “I strongly believe that [chemical vapor deposition (CVD) diamonds] will affect the price of small and cheap melee — goods below $200 per carat. At that price, you can buy good-quality CVD, so why would you buy mined diamonds?” However, he went on, “even if some retail customers no longer care if the melee is CVD, it is extremely important for the industry to focus its efforts on building awareness of the difference between CVDs and mined diamonds.” To him, that is more significant than knowing the diamond’s country of origin.
Falkenstein is going to JCK with the aim of seeing new jewelry and furthering his relationships with domestic and international clients and suppliers.
Article from the Rapaport Magazine - May 2019. To subscribe click here.