RAPAPORT… Suppliers were upbeat coming off the heels of the JCK Las Vegas show, with many reporting a robust uptick in sales during the four-day event. “Compared to 2010, our sales were definitely much stronger,” said Marcee Feinberg, vice president of marketing for New York–based Lazare Kaplan International. “Our customers are filling in much more” on inventory.
Feinberg reasoned that the sales increase was due to the industry’s current inventory dynamics. “Stores have sold off a lot of their merchandise, and they need to replenish,” she said. Though the majority of retailers were looking to stock up, a few were awash with supplies. “Some buyers wanted to sell to exhibitors,” said Dora Leviton of Dallas, Texas–based B&D Diamonds, adding that she was approached by several American and Canadian retailers acting as suppliers.
There was, however, a caveat to the good sales mood. “While sales were up, there was significant resistance to price increases in many areas,” observed Itchy Heschel of New York’s J. Kleinhaus & Sons. Like Heschel, many suppliers noted that buyers at this year’s show were more cautious, which had a somewhat dampening effect on sales. “We had two or three cases where customers put off purchases because prices went up,” said Chris LaTrobe, manager of IGC Brand Division in Chicago, Illinois.
Higher prices, however, did not necessarily mean higher profits. “Our profit margins did not go up, but we raised prices according to the diamond market,” said Ron Domb, owner of jewelry and ring supplier ForumDesign, based in Scottsdale, Arizona. In search of more lucrative markets, manufacturers like ForumDesign are starting to cater to more cost-conscious retailers. The company’s most popular line, the Alessia Collection, consists of cubic zirconium and silver rings. “To retailers, it makes sense,” explained Domb. “They can put up a lot less money to fill their showcases.”
American Market
Sales were buoyed in part by the return of American buyers, who were more active at this year’s show than any other since the 2008 recession. “The American market is slowly coming back to what it was,” said Heschel, adding that American buyers were mainly after stones of up to 2 carats. Domestic U.S. demand for smaller stones also has translated into a boom for the bridal market. “Bridal sizes are selling well, and most of what we are selling — the .50-carat to 1.50-carat stones — is to U.S. customers,” said LaTrobe.
Overseas Opulence
While American buyers were hitting the floors more aggressively than in recent years, they still could not keep pace with overseas spenders, especially those from China and India. “The Asian market is really on fire,” observed Domb, echoing many supplier reports. Unlike their American colleagues, Chinese and Indian buyers were mainly after larger and more expensive stones ranging from 3 carats to 5 carats.
“I have never seen so many international buyers,” exclaimed Leviton, noting that Indian buyers were the largest group. “Indians are coming to buy from us because prices are higher in India.”
While buyers from various countries differed on their size preferences, they were all on the lookout for custom-made pieces. “Specialty goods are moving well,” said Heschel, noting that his company’s new line of crescent-shaped loose diamonds was popular with all attendee groups. The push for unique items, however, left some manufacturers at a loss as to how to stock their exhibits. “Years prior, we were able to predict, to forecast what we should stock — but now it’s different,” said Leviton.
Many exhibitors at the JCK show worried that the event’s new location at the Mandalay Bay Hotel would confuse potential buyers and negatively impact sales. While there was a good deal of praise for the show’s staff, many complained about the venue’s distance to the food courts, its inconsistent aisle sizes and its oddly shaped show rooms. “The layout is radically different,” observed Leviton, adding that it took a day or two before buyers knew where to find her booth. “They have a lot of kinks to work out.”
Overall Success
Despite the worry over the venue, there was general consensus among attendees and exhibitors that the show was an overall success in terms of sales and growth — a trend that many hope will carry into the future. “The atmosphere was good and people were buying and selling. So long as something drastic doesn’t happen in the next few months, I think we will have a good holiday season,” said Feinberg.
The Marketplace
- Stones of up to 2 carats, and bridal stones of .50 carats to 1.50 carats, are selling well with American consumers.
- Price resistance to diamonds is leading some retailers to opt for less expensive, synthetic items.
- Round shape, F and G and loose diamonds are the most popular items with consumers.
- There is robust demand for custom jewelry and specialty items.
- Overseas buyers are interested in 3-carat to 5-carat stones.
