RAPAPORT…
For the sophisticated and moneyed shoppers in California’s Silicon Valley, Earthworks is the iconic place to find unusual jewelry and artwork. Its décor is that of an art gallery, with showcases and displays spotlighting the individual collections of a carefully selected and edited assortment of works by American artists.
Earthworks was founded by Claudia Sullivan Paullus in 1979, in downtown Los Altos, a medium-sized community in the heart of Silicon Valley. Paullus’ sister, Ellen Sullivan Davis, along with a partner, Mary O’Neal, bought the store from Claudia one year ago. O’Neal was an old college buddy of Davis and an avid jewelry collector. In fact, says Davis, O’Neal was an Earthworks customer long before she became an owner.
Davis credits Paullus, who still works at the gallery and holds the title of executive vice president and creative director, with creating “spectacular window displays” that attract constant attention.
Davis, whose original career was in marketing for several major women’s fashion magazines, says she got tired of the corporate grind and has discovered that retailing is a natural fit for her. “Earthworks is unique and it is merchandised like a gallery,” she says.
Artistic Oasis
“Los Altos is in the heart of Silicon Valley, so it was hit hard by the recession, but not as hard as the rest of the country,” says Davis. Clients of this gallery are “people who appreciate craft and the artistic challenge of what it takes to make it,” she says. In all categories, the emphasis is on a particular artist’s body of work rather than individual items. In addition to jewelry, there is artisan glass, woodworks, basketry and pottery.
Ninety percent of the sales volume comes from jewelry, says Davis. Designer collections cover a wide swath, and include sterling silver from Lois Hill and David Heston, pure gold from Gurhan and Yossi Harrari, colored gemstone designs from Bay Area artists Carmen Q and Becky Kelso and diamond jewelry from Hearts on Fire, Scott Kay and Todd Reed. While the original emphasis was on American design, the definition has “stretched a bit,” explains Davis, to include such brands as Marco Bicego, Christian Bauer and OE Designs.
Although one can find staples such as diamond solitaire and hoop earrings at Earthworks, they are usually not of standard design. And the owners don’t stock large numbers of duplicate individual pieces. “Our jewelry is not item-driven,” explains Davis. “We don’t reorder the same item over and over. We invest in an artist and buy a collection.” The owners carefully research the output of designers to decide if their work is unique enough for the Earthworks customer.
Diamond Factor
Not a traditional source for diamond engagement rings, Earthworks’ new owners are focusing on that category to build business, says Davis. Engagement ring sales so far have “not been cultivated but have come naturally,” she says. For its diamond needs, the gallery has a close relationship with Hearts on Fire and relies on that company for the majority of its loose and mounted diamonds.
Today, there is increased demand for engagement and wedding rings beyond traditional diamond jewelry, notes Davis. “Women are beginning to embrace other choices. There is a core demand for diamonds, but our customers want to go beyond that. They are educating themselves before they shop.” A recent trunk show featuring the raw diamond designs of Todd Reed, for example, was especially successful.
“Our role is different” from traditional jewelers, says Davis, in that the gallery does not maintain on-staff jewelers and does not do custom work, but instead works with its designer suppliers to develop special pieces. “Claudia works directly with our customers to develop designs and takes their ideas to the designers.”
Unique speaks
Seeking out the new and different is an ongoing process for this retailer. According to the gallery’s website, “We continually evaluate our inventory to assure that it meets the needs and expectations of our clients, and are always looking for new lines that would add an element of style and sophistication to what is already a well-established designer department.”
A large segment of Earthworks’ customers, who include researchers and staff from Stanford University, are well educated and affluent. “Google, Facebook and Intel are our neighbors and customers,” says Davis, as well as the venture capitalists from neighboring Menlo Park. The gallery also attracts increasing numbers of the younger members of Silicon Valley, who have a preference for jewelry from newer designers and contemporary designs that are colorful and fun.
In-store events such as trunk shows have been especially successful for the gallery. “We rotate the schedule between our anchor designers and new artists and designers,” says Davis. To enlarge its audience, Earthworks has expanded its advertising into San Francisco proper — the city is about 40 miles away — and has pulled shoppers from there for special events.
In keeping with its close relationship with the community, Earthworks also stages fund-raising events for local and national charities. For example, to raise money for the Children’s Hospital of Oakland, Earthworks created a temporary “pop-up” boutique in conjunction with a Tory Burch fashion show. To benefit the Multiple Sclerosis Society, the retailer offered a special-edition bracelet for participants in a walkathon. These events, as well as trunk shows and special appearances by designers, go far in establishing good will and partnership with its clients and suppliers, says Davis.
