RAPAPORT… Optimism was the prevailing sentiment at JCK Las Vegas, as exhibitors and buyers expressed hope that the economy had turned a corner. While many buyers remained price conscious, overall, the positive mindset translated into orders for both immediate and later shipments.
The show’s new venue, the sprawling Mandalay Bay Resort and Convention Center, created some initial consternation among exhibitors that buyers — both existing and new — would have difficulty in finding them. Preliminary numbers indicated a 16 percent increase in attendance to more than 20,000.
“Overall, it was quite good, starting from the first day,” said Blake Soper of New York–based Kurt Gaum, Inc., who noted that while 1.50 carats to 2 carats were popular, larger stones in the 3-carat to 5-carat range were also selling. Soper, who exhibited in the Prestige Promenade section, was pleased with the “big turnout” and noted that buyers kept their appointments, unlike previous years.
“Everyone is buying,” said Izack Landman, account executive with Ninacci Incorporated in Los Angeles, who reported sales of G to H, VS1 to SI1 stones.
“Fantastic” is how bridal exhibitor C. Mike Kim summed up the show. Kim, president of Kim International in Dallas, Texas, described buyers as “hungry to fill their shelves.” Selling mostly 1 carat and mountings for 1-carat rings to both independents and big chains, Kim observed, “Doors are opening.”
Most attendees seemed resigned to the increased price of both diamonds and gold; “It is what it is,” reflected the general consensus. Still, some buyers stuck to their budgets, even if it meant buying smaller stones or stones with higher color or lower clarity. Luxury exhibitor Ed Werner of William Levine Fine Jewels in Chicago, Illinois, explained, “Buyers are more focused on what they need. There may be some trade-off — going to SI1 from VS1.” He observed that in the past, retailers were rebalancing their stocks, while now, “they need to fill their cases.”
Roshanak Far, an owner of Roshar Jewels in Houston, Texas, thought the show was “wonderful.” She bought some diamonds, colored stones and slices for her store. Still, she focused on pieces that would retail between $500 and $1,500.
Silver Allure
Savvy exhibitors came prepared to cater to budget-conscious retailers and their customers. Display cases featured more colored gemstones, which also reflected the current industry trend. Many opted to showcase silver rather than gold or platinum settings and some introduced new silver collections. Paul Courrégé of Gottlieb & Sons of Cleveland, Ohio, exhibiting in the Luxury section, explained the firm had just launched a silver and gold line — some with diamonds — to address the needs of buyers looking for the under-$1,000 price point. Arka Akkelian of Nishi Pearl Co. in Seattle noted, “With silver you can afford the extras.” His new line of silver and pearls was selling “leaps and bounds better.”
Unique Appeal
While price remained a factor in buying, “unique” was the first and most frequently heard word that retailers used to describe what was at the top of their lists. Exhibitors echoed this sentiment, noting that while buyers were seeking the unique at every price point, they would open their wallets for pieces that would “wow” the customer.
Jonathan Wilson of Wilson Diamond Brokers in Lakeland, Florida, explained that his customers want a “customized” piece — even for bridal — from 1 carat to 1.50 carats. While he is always on the lookout for something new, he admitted that he was considering lighter gold weights because of price considerations.
“Buyers are looking for the unusual and willing to pay. They want something the stores can get enthused about,” explained Leonard Federer of TriGem Pearls in New York. In the Design Center, Tej Kothari of Kothari Design in Fremont, California, commented that his one-off pieces attracted new and existing buyers to the extent that he sold more in the first day of the show than he had over the entire event in 2010.
Sonja Stickel, a graduate gemologist and buyer at Pavé Fine Jewelry Design in Berkeley and Oakland, California, explained she is “not as focused on price points but rather looking for the right piece.” Rose-cut stones had particular appeal to her customers. Michael Endlich, also of Pavé, explained that the use of conflict-free diamonds was another key selling point for his customers, who would pay more for diamonds with that certification.
“Never tell your customer the piece is expensive,” said Marco Verdi, managing director of G. Verdi &C S.r.l, an exhibitor in the Vicenzaora Italian Club. “If you have unique pieces, you are not expensive,” he asserted. Kurt Gaum’s Soper believed jewelers should sell with “more emotion and enthusiasm,” rather than focusing on the price.
Most of the exhibitors indicated that they sold to independents. Many noted that in addition to standing appointments with existing buyers, they saw new buyers. Yet loyalty to existing suppliers ranked high with some buyers. “Now, more than ever, we are going back to our existing vendors,” said Jacob Tuchman of Yamron Jewelers, a retail store in Naples, Florida, stressing the importance of being loyal to the “people who take care of us.”
Asian Demand Accelerates
Business was also on the rise for sellers of stones in the World Fair section, who reported that buyers waited until the show to replenish low inventory levels. Sellers were pleased to report that American buyers were writing orders once again. While purchases by American buyers were primarily in the .50-carat to1.50-carat range, sellers were encouraged by their renewed spending. Still, their activity lagged behind that of the Indians — the largest contingent of buyers of loose stones — and the Chinese, who focused on larger stones, ranging from 3 carats to 5 carats. Round F and G stones sold well to both domestic and international buyers.
“Loose diamonds are doing well,” reported George Chamoun, the owner of Chamoun’s Jewelry, Inc., based in Los Angeles. However, he noted, “Mostly dealers buy from us and resell our items in Chinese and Indian markets.”
Price resistance was more of a factor for American buyers, but as with the jewelry, most accepted it as a fait accompli. Chamoun remarked, “Of course, everybody complains about the prices, but a lot of them will get used to them after they see everyone else raising their prices.”
Facets of Hope Raises $3 Million
Jewelers for Children (JFC) held its 13th Annual Facets of Hope dinner at JCK Las Vegas, where they announced raising $3 million to support their charity partners for the 2011 year. The event’s program lauded Debra Puzio, director of jewelry merchandising at QVC, and Bob, Marc and John Green of Lux Bond & Green for their charitable efforts. The program also included a video by Suamhirs Rivera, representing the National Court Appointed Special Advocate (CASA) Association, about growing up in the foster care system, and a speech by a 13-year-old boy battling Ewing’s Sarcoma, a malignant bone tumor that affects children and teenagers. —Ricci Dipshan
Lili Diamonds Launches “Meteor Cut”
Lili Diamonds launched its new Meteor Cut line of jewelry at JCK Las Vegas. According to Chaim Lazarus, general manager of U.S. Lili Diamonds, the new cut, which took ten months to design, is a decagonal-shaped stone, with ten straight sides that are built of 71 facets.
The Meteor Cut, inspired by the company’s new branding initiative, which employs the theme of space, was released in Hong Kong in March. Fink Jewelers of Roanoke, Virginia, which has stores in Virginia and the Carolinas, has been named the first Meteor Cut retailer in the U.S. —Ricci Dipshan
