RAPAPORT... Orogemma, the final part of Vicenza’s trade-show trilogy, ended its five-day run to general accolades for its innovative new B-One Pavilion, its roster of international exhibitors and buyers and its fairly substantial traffic flow.
The show, held September 9 to 13, got off to a strong start on the weekend, with mostly Italian and European buyers browsing the stands for new and innovative items for holiday selling. Generally, very few Americans attend this show, but some manufacturers introduce and test new merchandise at this time, and if styles are well-received, they expand their collections for January.
The biggest news at the fair was the opening of the stylish B-One Pavilion, populated by 24 Italian firms with internationally recognized brands. They ranged from the high-end creations of Staurino, Stefan Hafner, Picchiotti and Palmiero to the popular-priced but targeted fashion collections of Morellato and Pianegonda. The 43,000-square-foot space resembled a hall in Basel, with wide aisles, elaborate, two-level stands, creative displays and periodic fashion shows. The party atmosphere also included celebrity autograph-signings, cocktail receptions and multimedia presentations.
Changing TimesThe rationale for this new pavilion, according to Corrado Facco, secretary general of Vicenza, was to raise the level of the fair as well as to highlight companies whose innovation and creativity can serve as examples to companies that are working to achieve those goals. In fact, the hall exemplified a radical shift in Italian jewelry production and sale, in which marketing and positioning have become almost as important as the merchandise.
Despite their optimistic outlook and can-do attitude, many of the bigger Italian gold producers are feeling an unpleasant squeeze from current world conditions, as longtime industry pro Rino Perozzo, marketing manager for Bovo, Trissino, explained. With costs rising and sales down sharply, many companies have been forced to shutter their operations or cut back on personnel. This latter solution is less easy to do in Italy than in other countries because generous unemployment benefits discourage quick downsizing.
The old ways are dead, Perozzo said, and if companies plan to survive, small factories are going to have to cut back expenses, retool quickly in order to create new items and/or find a way to sell directly to retailers. Over the past year, in fact, there have been several notable bankruptcies and a number of big brands turning to foreign production in Thailand, South Africa, the Philippines and the Middle East.
Generally, 2006 has been a spotty year for exports of gold jewelry. According to a report issued at the show, the midyear period came to a standstill, following an encouraging rise in sales during the first quarter. The U.S., which accounts for 20 percent of Italy’s exports, boosted sales by 2.8 percent during the first five months, only to fall back in May. Other bright spots included Latin America, parts of Asia and the Middle East. European growth was less than average.
Star attractionsIn advertising and marketing news, the ongoing phenomenon of celebrity endorsements has not been lost on media-loving Italians. Actresses/spokeswomen include Demi Moore for Rosato, Arezzo, and Penelope Cruz for BrosWay, the brand name of Bros Manifatture, Montegiorgio. In addition, several show stands attracted crowds seeking autographs and photos of models and actresses whose images represent the brands.
Despite all the hoopla from the manufacturing sector, the scene at the retail level appears to resemble that of the U.S. more than a decade ago. Valeria Battaglia, retail liaison for Platinum Guild International (PGI), said PGI’s current push is aimed at retailers, as well as manufacturers. All of the media publicity devoted to platinum has struck a positive note with Italian consumers but has not reached retailers. As in the American market prior to the founding of PGI in 1992, Italian retailers offer to order items in platinum, but rarely stock them.
“The consumer is aware of platinum because of our promotions, but when they go into the stores and look for it, they can’t find any,” Battaglia said. “We’ve started a program to encourage retailers to order it and keep it in stock, particularly in bridal.”
While September is hardly the hottest time of the year for introducing new jewelry fashion, Italians always manage to come up with some fresh ideas, and this year there was a marked change from the past. “Fashion is in; classics are out,” was the succinct conclusion of Alberto Visentin, editorial and advertising director of Pentastudio, Vicenza. He cited casual jewelry of steel, silver, pearls and beads as the must-have fashion items leading the current Italian market. High-end pieces continue to sell, but it’s the fashion element that’s pushing current sales, he says.
Ponte Vecchio Gioielli, Florence, known for its playful, movable jewelry with brilliantly colored gemstones, has added many all-diamond and diamond-accented pieces to its collection. According to Valentina Borri, StefanHafner, Valenza, “The best-selling designs now are fluid shapes with movement, and mostly in white gold and diamonds.There are few items in yellow, but most of our pieces are in white.” Top sellers in the U.S. market include pieces from the Corset Collection and a new leafy necklace with movable elements.
Staurino Fratelli, Valenza, unveiled “Mistral,” his new collection,which is dedicated to the wind of the same name, explained Daniela Sburlati. Pieces include a series of swirling designs in white and black gold accented with diamonds.
September and January are not big times for American buyers, said Maria Carola Picchiotti of Picchiotti, Valenza. “American retailers come to us for important pieces and one-of-a-kind designs, regardless of the economy or international events,” she said. Bold rings with large white and colored diamonds, rubies and sapphires highlighted the entrance showcase at this fair.
Schreiner, Munich, also specializes in important pieces with one-of-a-kind gemstones and diamonds. A new group of colored diamond pieces includes a number of large rings and a multicolored bracelet with a variety of fancy colors and shapes in a soft mesh-like setting. The company, like many other top-tier manufacturers, does not do a lot of business with the American market.
“At this show, we haven’t seen many U.S. retailers,” commented Gidino Tedesco, company spokesman for Harpo’s Gioielli, Valenza. Price and quality are recurring issues, he said. “Our diamonds have a minimum color of G, flawless to VVSI quality; all our production is handmade. Some American customers ask for lower quality, but we won’t do that. They say our prices are high, but in truth we haven’t changed our prices at all. They are the same as before, but we have lost about 40 percent of the U.S.” As a result, Harpo’s has decided to drop out of U.S shows, and reserve its exhibition efforts for Basel and Vicenza.
Other notable jewelry trends
• More diamond trims on usually all-gold designs (Annamaria Cammilli, Vendorafa).
• Dimensional rings with petals, leaves and overlapping pieces.
• Pavé balls, spheres as beads covered in pavé.
• Limited use of small yellow and brown diamonds, except in very high-end lines with large, one-of-a-kind designs.
• Rings with large transparent or translucent cabochons framed in thick pavé bezels.
• Yellow gold for fashion collections; continued white for diamond and high-end diamond lines.
• Cloudy gemstones in pastel colors, such as dyed mother of pearl, multicolored moonstones, pink, smoky and rutillated quartz, green beryl, aquamarine, chalcedony and amethyst.
• Rings with large colored gemstones in wrapped settings that partially cover the stones and “upside-down” rings with stones set faceted sides up.
• Mosaic designs with same-colored or multicolored inlaid gemstones (Raima, Carlo Barberis).
• More brushed and hammered finishes and engraved, embossed and pierced designs on polished gold.
• Increased use of natural and manmade materials, such as wood, lucite, glass, rubber, shell and ribbons.
• Open and mismatched links in necklaces and bracelets.
• Lots of movement, fringe, tassels, chains.
• Butterflies, flowers, cartoons and charms, more whimsical and playful, using less gold and diamonds.
• Enamel from sophsticated — La Nouvelle Bague, Panelli and Fabergé — to cartoon art — Menegatti — to playful — Elini, Bibigi, Horo Linea.
• More collections aimed at teens and Gen-Xers in steel, silver and high-tech materials with street-inspired motifs.
Article from the Rapaport Magazine - October 2006. To subscribe click here.