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Industry
The Vegas Experience
Diamond dealers left JCK Las Vegas satisfied and said this year’s show might be a sign of brighter days ahead.
By Brian Bossetta
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| Fischer Diamonds, Inc. |
Going by what diamond dealers had to say about the JCK jewelry show in Las Vegas, held May 30 to June 2, the darkest days of the economic downturn might be gone for good. Although the show didn’t blow the roof off the Mandalay Bay, where the show was held, most dealers were pleased and described business as steady and comparable to, if not somewhat better than, 2013’s event.
Jeff Fischer, president of Fischer Diamonds, Inc., a diamond manufacturer in New York City, said the show continued on its upward trend since the 2008 financial meltdown. “There was a sense of survival after 2008,” Fischer said. “In 2009, there was a fear you wouldn’t survive. Then, in 2010, there was a sigh of relief that you did survive.” Fischer said there was a slight drop-off in the 2013 show after excellent shows in the two preceding years and that, in his experience, 2014 seemed a “bit busier.”
“People know things are getting better economically,” said Nilesh Sheth, president of Nice Diamonds, a diamond wholesaler in New York City. “People are happy and seem to be anticipating a good season.”
For Michael Shabitai, managing sales representative for DiamondsWithCert.com, a diamond wholesaler in Great Neck, New York, the trade show exceeded expectations, resulting in a “30 percent to 40 percent” increase in business for his company from 2013. Shabitai, whose buyers were mostly “clients with appointments,” said his customers not only purchased what they had on their lists, but also extra goods. “My buyers were in a much better mood than last year,” he noted.
Andrew Rickard, vice president of operations for RDI Diamonds, a wholesaler based in Rochester, New York, was also pleased with the general mood of buyers, which he said varied from buyer to buyer — a reality of the “new normal,” as he put it, reflecting the fact that some in the industry are doing better than others. “In years past, it was either all good or all bad,” he said. “Now, it’s mixed, with some buyers doing really well and others still struggling.” But the general temperament, Rickard said, was positive. “There was still some gloom and doom, but nothing like three or four years ago.”
However, not all dealers left Las Vegas in good spirits. Chirag Gandhi, owner and president of B.H.C. Diamonds, Inc., a diamond wholesaler in New York City, said his traffic was down — “about 25 or 30 percent from last year” — and his sales down by around 40 percent to 50 percent. The reasons for the slide, Gandhi said, were fewer new customers and less interest in buying from his regular ones. Still, despite the lackluster results, Gandhi believes his company could benefit from the show. “It’s more important to meet people,” Gandhi said. “That could generate business later, depending upon the market.”
Sheth had a similar take. “It’s not so much about sales as it is about PR,” he said, adding that he experienced less traffic as well. “We made sales, but mostly made connections and the bottom line is you have to work those connections into long-term business partners.”
Yet, Rickard, who also noticed a “slight” dip in traffic from 2013, said JCK remains the best show for business. “It’s still the major buying show in the industry,” he said. “A lot of other shows are more educational, but JCK is still the premier event for straight buying.”
Shabitai, attending the Vegas show for the fifth year, agreed. “I have had success at JCK and I plan to keep exhibiting there,” he said, “if for no other reason than for the personal contact with my clients.” Most of those clients, he noted, were smaller, independent retailers — “mom-and-pops in business for 20 to 30 years.”
But Gandhi, in his eighth year attending JCK, believes the show’s sway, especially internationally, is lessening. “Before there was a sense of ‘we have to go no matter what,’” he said. “Now, not so much.” In Gandhi’s estimation, the organizers of JCK have to do a better job marketing the show, “like Hong Kong and Basel.”
Fischer said fancy shapes sold strongly at the show, with no discernible pattern in quality. “We sold everything from 1 carat to 5 carats,” he said. Rickard also sold a spectrum of goods, but noted that rounds, in particular, as well as cushions and princesses, were the most popular shapes, in sizes from .75 carat to 3 carats — “the same bread-and-butter stuff I sell every day.”
And while Rickard noted that some buyers placed orders for the fourth quarter, most of his customers at the show, he said, “were buying to fill holes and needs now.” Rounds, mostly in larger stones — “4 carats up to 10” — were the most popular shape for Shabitai, who said many of his buyers were stocking up for the summer and what he hopes to be a busy engagement season.
Price resistance was minimal, according to Rickard, with the majority of buyers knowing what they were looking for and comparison shopping with other vendors. In Fischer’s view, pushback on prices is nothing new and should be expected. “There’s always resistance, no matter what,” he said. “I assume that buyers who came to me were having trouble finding what they wanted elsewhere or found the value I was offering appealing.”
Rickard noted that he sold goods across “many price points” and that, by and large, most items that buyers were searching for were available. However, higher-end goods — “colorless VS and better” — were harder to source. “More of those goods go to Asia,” Rickard said. “In the states, if you really want that quality, then you’re going to have to pay for it. The days of bargaining for those goods are gone.” Rickard also said that his buyers represented retailers from “across the board” — large chains and big box stores as well as independent jewelers.
Commercial goods in SI and lower — “with most interest in I1 and I2” — were Gandhi’s top items, with VS goods and higher moving very slowly. “I don’t think many people are ready to spend that type of money,” he said. “Only about 2 percent to 5 percent of buyers were looking for higher-end merchandise,” Sheth concluded. “Usually, buyers are only interested in those more expensive goods when one of their customers is looking for something specific.”Article from the Rapaport Magazine - July 2014. To subscribe click here.
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