Holiday Retail Sales Up 2.4%

Luxury jewelry sales down

— JCK-Jewelers Circular Keystone, 12/27/2007 6:31:00 AM

Retail sales for the holiday season, spanning from Nov. 23 till Dec. 24, rose by a seasonally adjusted 3.6 percent over the same period a year ago, according to MasterCard SpendingPulse. However, factoring out spending on gasoline—which saw an average price increase of 27 percent since this time last year—retail sales increased 2.4 percent.

With the exception of jewelry, the luxury category showed strength with a 7.1 percent increase in sales, excluding jewelry, according to SpendingPulse, a division of MasterCard Advisors, which tracks national retail sales. When including jewelry, the luxury category declined 1.9 percent.

The strongest sales category, according to SpendingPulse, was e-commerce, which increased 22.4 percent year-over-year.

Procrastinating shoppers in the final weekend before Christmas fueled an 18.7 percent sales gain over the same weekend last year, according to ShopperTrak RCT Corp., which tracks sales in retail outlets nationwide.

SpendingPulse said the apparel category rose a seasonally adjusted 1.4 percent overall, with a 2.3 percent increase in men’s apparel sales and 6 percent growth in footwear offset a 2.4 percent decline in women’s apparel.

Meanwhile, International Council of Shopping Centers-UBS Retail Chain Store Sales Index rose by 2.8 percent in the week to Dec. 22 from its level a week before, on a seasonally adjusted, same-store basis. The index rose 1.4 percent the week prior. Retailers saw sales increase by 2.8 percent last week on a year-to-year basis, compared with a rise of 2.1 percent the prior week.

Diamond Top to go on the Block in Dubai

— JCK-Jewelers Circular Keystone, 12/3/2007 9:43:00 AM

The diamond top created by diamond company Dalumi and Italian designer Gianfranco Ferré will be auctioned during a private preview as part of the official opening ceremonies of the Dubai International Jewellery Week on Dec. 12.
 
The Private Preview will include several members of the Royal Family and local VIP’s. The exclusive preview, by invitation only, offers guests a glimpse of things to come over the next three days before the show is open to the public. Exhibitors will unveil their best designs and product launches for the first time to both the media and invited guests.

The highlight of the private preview will be the unveiling for the first time in the Middle East of the one-of-a-kind Gianfranco Ferré diamond-studded top, which will be put on auction for silent bidding from Dec. 12, 8:30 p.m and will close on Dec. 15, 6 p.m (Dubai time).

The body-hugging top, carrying 905 stunning diamonds mounted in 18K white gold, and woven with 254 cts. has been designed and conceived by the late, renowned fashion designer Gianfranco Ferré. All diamonds are G/H colour, VS/SI1 clarity. The top’s value is estimated to be approximately $1.5 million.

The diamond top is matched with black tuxedo pants and a black silk cape. The entire outfit was worn on the runway by British rock singer, Skin, concluding Gianfranco Ferré’s women collection for fall/winter 2007/2008.

Before arriving in Dubai, the sparkling top traveled around the world and been on display in the major Jewelry Shows in Basel, Las Vegas and Hong Kong, and Tokyo. The top has also been displayed in many Gianfranco Ferré boutiques around the world.

“We are particularly proud of this project with Gianfranco Ferré,” Yuval Kemp, Dalumi Marketing & Business Development director, said. “Thanks to the sum total of our know-how and technologies, his design talents and creativity, we’ve produced something really unique and amazing, definitely able to make a lasting, irresistible, even inspirational impression.”

“Involving diamonds in the design process to this extent means creating pure beauty, capturing sense of mystery, magic, dream dimensio,” explained Gianfranco Ferré, while presenting his creation on last February. “Working so with such an important ‘raw material’ gave me a clearly superlative chance to express my creativity. Seeking equipoise between the wealth of the diamonds and the sensation of lightness I wanted for my shirt, I had the preciousness of the gems define the creation’s very soul, the essence of its identity.”

GCAL Pledges $50,000 to CIBJO

— JCK-Jewelers Circular Keystone, 12/17/2007 9:26:00 AM

The Gem Certification & Assurance Lab, Inc. of New York, has pledged a gift of $50,000 to CIBJO, the World Jewellery Confederation.

The pledge was made during a special meeting of CIBJO members, held last month in Geneva, where CIBJO members and jewelry industry members met under the auspices of the UN Development Program, and with the encouragement and support of the UN’s Economic and Social Council, to discuss how to help initiate, advance, coordinate and support educational projects that will help to get budding, sustainable jewelry industry projects on their way.

"There is evidence that shows the jewelry luxury consumer can provide the economic support on one end of the channel of distribution so that the other end, the businesses and employees in the producing and developing nations, can benefit," said Michael R. Haynes, chief executive officer of Collectors Universe. GCAL is a subsidiary of Collectors Universe, a U.S.-based provider of services to the collectibles and diamond and colored gemstone markets.

CIBJO president Gaetano Cavalieri added, "’We are grateful for the gift and satisfied that companies operating in this industry recognize the need to sustain and advance the well-being of those people who are part of the lower end of the production and supply pipeline, to assure that these people can earn a sustainable income and lead meaningful lives."

AGA Honors Shigley; Names New Officers

— JCK-Jewelers Circular Keystone, 12/30/2007 7:25:00 AM

The Accredited Gemologists Association will award the Antonio C. Bonanno Award For Excellence in Gemology to James Shigley of the Gemological Institute of America Gem Trade Laboratory.

Shigley, a GIA distinguished research fellow is the author of many articles on diamonds and other gemstones, and a well-known speaker on gemological topics to both professional and general audiences. He helps direct GIA’s research activities on the identification of natural, synthetic, and treated diamonds; colored stones; and pearls. He continues to advance GIA’s gem research program to support the jewelry trade to meet the challenges of gem identification. Last summer marked his 25th anniversary with the Institute.

The Antonio C. Bonanno award—named in honor of the AGA’s founding father—was created to recognize people who have made significant contributions to the gemological field. The award—which includes a check for $2,000—calls attention not only to the outstanding contributions of the recipient, but to the responsibility of the gemological community to encourage and reward ongoing research, education and dissemination of information. 

Previous winners of this prestigious award include C.R. Beesley, Robert Crowningshield, Richard Drucker, Henry Hanni, Alan Hodgkinson, Alan Jobbins, John Koivula, and Antoinette Matlins.

In related news, AGA elected its new slate of officers and board members. They are as follows:

President: Donna Hawralko
Vice President: Kathryn Bonanno
Secretary: Tracy Aros
Treasurer: Monica Caldwell

Governors: Teri Newman-Brosmer, Stuart Robertson, Antoinette Matlins, Nancy Stacy, Craig Lynch, Gary Smith

President-elect Donna Hawralko is the director of education of the Canadian Gemmological Association. She holds a FGA degree in gemology and the FCGmA title from the CGA.

The term for these officials will run from 2008 to 2010.

JVC Offers Link to De Beers Claim Form

— JCK-Jewelers Circular Keystone, 12/28/2007 11:02:00 AM

A link to the form to make a claim under the De Beers Indirect Purchaser/Reseller class action lawsuit is available on Jewelers Vigilance Committee’s Web site. It includes guidance to complete the form and a series of frequently asked questions. The lawsuit and claim form covers gem-quality diamonds only.

In addition, jewelry industry members who have questions about completing the form can contact JVC’s Web hotline for help jvcquestions@aol.com. A link to the "Direct Purchasers" claim form will be posted on JVC’s Web site as soon as it is available.

Starting Dec. 28, a court authorized media campaign to notify consumer class members about making a claim will commerce, JVC said. Advertisements in hundreds of newspapers, magazines (both trade and consumer), and on the radio will run until February 2008.

The court also ordered that on Dec. 28, written notice about the claim form will be mailed, first class, to approximately 50,000 entities covered under the lawsuit. Those who wish to file a claim will have until May 19, 2008, to submit a form. The claim form must be postmarked on or before May 19, 2008, for it to be accepted.

"The claim form is not difficult to complete but it does require attention to detail and figures," said Cecilia Gardner, JVC’s president, chief executive officer, and general counsel. "JVC has posted on our Web site both a link to the claim form and guidance on how to complete the form. As the guardian of ethics and integrity in the jewelry industry, JVC will help jewelers who have questions about completing the form."

Men’s jewelry no longer left warming the bench

Men’s jewelry no longer left warming the bench
December 15, 2007

“Sym” ring by Nick Blum in sterling silver with diamonds; suggested retail price is approximately $500.

By Mary Wisniewski

New York—Men’s jewelry, long relegated to a distant showcase and a small part of the average jeweler’s inventory, is finally getting not only respect but retail real estate.

David Yurman, Chris Aire, Tiffany and Co., Gordon’s Jewelers, John Hardy, Nick Blum and King Jewelers are among the many names that have sensed a developing niche and have started designing and selling men’s luxury jewelry with greater fervor lately.

Designers and retailers are pushing the concept that jewelry makes a guy, a guy; and these days, a man doesn’t have to channel Mr. T or RuPaul to wear it well. It doesn’t hurt that current A-list actors such as Colin Farrell and Brad Pitt are wearing jewelry, either.

Amanda Gizzi, associate director for public relations at the Jewelry Information Center, says men seek luxury items such as jewelry simply as a way to look good.

“Men are more fashion-savvy and aren’t afraid to express personality through accessories,” Gizzi says.

She says she is surprised more designers aren’t catering to the niche and adds that jewelry needs to be redefined to shed its feminine connotation.

“The biggest challenge for jewelers is to make [the word] ‘jewelry’ seem non-feminine,” Gizzi says.

Men’s jewelry designs tend to utilize alternative metals such as stainless steel or tungsten with the possible addition of diamond accents, Gizzi says, adding that she sees pendant necklaces and thicker bracelets selling briskly too.

In addition, the bridal jewelry category continues to gain great options that allow men to show an extension of their personality through wedding band choices, she says.

Allan Steinmetz, founder and chief executive officer of Inward Strategic Consulting, a management and consulting firm, says all luxury products are currently selling well, a trend he attributes to the times. In a stressful society filled with many choices, people reward themselves with purchases such as men’s jewelry, he says. Steinmetz also says the acceleration of luxury-goods purchases came about as a result of consumers emulating pop icons.

Finding the fashionista within King Jewelers in Aventura, Fla., one of the jewelry stores catering to the fashion-savvy man, just opened a new “Luxury Men’s Salon.” King’s Chief Financial Officer Jonathan King says the salon has been doing well, and in addition to typical male accessories such as watches and cuff links, bracelets and necklaces are selling well too. King credits this to fashion.

“I think that men overall have gotten more fashion-conscious and are always trying to better themselves,” King says.

King, who always wears a watch and sometimes a necklace and bracelet too, sees men from all walks of life buying jewelry.

King Jewelers is not the only retailer capitalizing on men’s newfound fetish for jewelry. Gordon’s Jewelers, a division of Zale Corp., introduced “Urban Style: Jewelry for the Modern Man,” a collection that includes stainless steel bracelets, gold railroad-link necklaces and titanium dog tags. Trendy new designs by Simmons Jewelry Co., a jewelry company co-owned by hip-hop mogul Russell Simmons, are also featured online at Gordonjewelers.com.

David Sternblitz, vice president and treasurer of Zale Corp., says he sees men’s bracelets and necklaces selling best along with the Simmons Jewelry designs.

“You always thought of men’s jewelry as cuff links and watches, and now you see it involved into the mainstream,” he says. “It is a form of expression.”

Sternblitz credits this to celebrity culture, in part.

“You see more male icons wearing jewelry, which raises interest,” he says. “It inspired this line of jewelry; [we wanted] to capitalize on the trend.”

“Tiffany Lucida” diamond pendant, diamond ring and diamond cuff links are all in white gold and retail for $1,850, $1,500 and $2,750, respectively, at Tiffany and Co. stores.

Detra Segar, general manager of Tiffany and Co.’s New York flagship store, says men’s jewelry is not a passing trend. To meet the demand, the store offers collections for men in 18-karat gold, sterling silver, and now, titanium. Segar says wedding bands remain the category’s top-selling item, and women are helping spur more men’s jewelry sales.

“Many women encourage the men in their lives to wear jewelry as it is a form of personal expression, which women have long enjoyed, and why not men?” she says.

Segar adds that at Tiffany, self-purchasing men are encouraged to buy for their significant other too.

Pam Danziger, president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, says men have always been big purchasers of jewelry, but they have primarily bought for women.

“Now, they are starting to think about jewelry for themselves,” Danziger says.

Men’s jewelry is still a small part of the jewelry market, but it has increased over past years, helped along by the fact that men are accustomed to going into jewelry stores and, therefore, do not feel so intimidated, Danziger says. She also says the prevalence of casual dress at work—and the counter-trend of executives dressing up to set themselves apart—is another factor.

“Now, [executives can] really stand out in a sea of blue jeans and khakis,” Danziger says. “A nice piece of jewelry like a ring is no longer perceived as gaudy.”

Jewelry designer Nick Blum created BlumLux, a modern men’s line that he characterizes as being ideal for the “urban elite.” Hearing other men say they wanted jewelry and didn’t want it to be the same old thing was the inspiration for the line. And BlumLux encourages men to buy jewelry for themselves.

“It’s a new age,” Blum says. “Men are feeling more comfortable in their skin and want to express their style.”

Study: Consumers indifferent to Burmese rubies

Study: Consumers indifferent to Burmese rubies
December 18, 2007
_{25 percent, however, would likely boycott stores that sell the stones}

Paso Robles, Calif.—Consumers aren’t highly aware of or concerned with current events surrounding Burmese rubies, despite negative publicity for their role in financing human-rights abuses occurring in Myanmar (formerly Burma), a new study by the Jewelry Consumer Opinion Council (JCOC) shows.

Only 11 percent of those surveyed indicated they have heard of the issues related to Burmese rubies, and of those 11 percent, one quarter said they are very unfamiliar with the issues.

Meanwhile, among those who are aware of the issues, 57 percent said they don’t affect their likelihood of buying rubies, while 40 percent believe they are slightly less likely to purchase rubies in the next 12 months.

Once the situation in Myanmar was explained to survey participants, one-third reported they would not consider purchasing a ruby if they knew it was Burmese, 47 percent were unsure if they would buy it and 19 percent would still buy it.

But if a Burmese ruby was offered at a much lower price than other rubies, 23 percent of respondents would consider purchasing it, while 42 percent were still unsure.

The survey also showed that one quarter of respondents would likely boycott stores that sold Burmese rubies.

In terms of preference between Burmese rubies and man-made rubies, 14 percent of respondents would purchase Burmese rubies, 20 percent would prefer man-made rubies, 31 percent would not buy either and 35 percent were unsure which they prefer.

If Burmese rubies were the only rubies available at a store, 19 percent of those surveyed would not purchase any jewelry, 14 percent would still purchase a ruby and the rest were unsure what they would do.

Most respondents said they didn’t know which certificate supplier would give them the greatest reassurance that a ruby wasn’t Burmese, and among those who didn’t select “don’t know,” 20 percent felt a certificate would not be of any reassurance. Sixteen percent of respondents would prefer a third-party certificate, and 14 percent would like the U.S. government to provide the certificate.

The JCOC, a division of MVI Marketing Ltd., is an Internet-based, market-research service composed of North American consumers of all ages, genders, income levels, buying categories and geographic regions. It provides the gem, jewelry and watch industries with market intelligence about their products and their respective end-user, the consumers.

The JCOC conducted its Burmese Ruby Report omnibus study from Nov. 29-Dec. 10, polling 2,104 JCOC panel members.

Editor’s note:For additional stories on Burmese rubies, see EXCLUSIVE: Colored stone sales up despite ‘blood rubies’.

HRD Antwerp implements new color-grading tool

HRD Antwerp implements new color-grading tool
November 30, 2007

Antwerp, Belgium—HRD Antwerp LV, the commercial subsidiary of the Antwerp World Diamond Centre (AWDC), has introduced a new color-grading tool it says will bridge the gap between what people can see and what current instruments can measure.

The tool, called “Lumisense,” now in use in the HRD Diamond Lab, is the result of collaboration between HRD Research and the independent Research Centre for Diamonds. The two teams worked together for several years studying the correlation between human observation of color and instrumental color measurement.

Georges Brys, HRD Antwerp general manager, said Lumisense is particularly useful for grading brilliants in top colors, regardless of diamond type or fluorescence.

“We have found that the consistency of its grading is second to none,” he said.

In addition, HRD Antwerp NV has opened a new office in Shanghai, China.

Brys said the company’s grading and educational services already had a strong reputation in China, so it only made sense for the AWDC to open an office in this fast-growing market.

HRD Antwerp appointed Jun Jiang as its local representative.

Jun will be responsible for promoting the brand and representing HRD Antwerp interests in diamond certification, education and equipment.

The opening of HRD Antwerp’s Shanghai office is the latest in a series of international expansions. The company recently launched HRD Lab Link, a pick-up diamond-certification service in Ramat Gan, Israel, and plans to launch HRD Lab Link in Hong Kong.

De Beers sells Cullinan mine

De Beers sells Cullinan mine
November 27, 2007

Pictured at the Cullinan deal signing in South Africa are, from left: DBCM Managing Director David Noko, Petra Diamonds Chairman Adonis Pouroulis, De Beers Managing Director Gareth Penny and Thembinkosi Mining Investments head Clyde Johnson.

Johannesburg, South Africa—De Beers Consolidated Mines (DBCM) has sold its diamond mine in Cullinan, South Africa, to a group of companies calling themselves the Petra Diamonds Cullinan Consortium (PDCC) for $141.7 million.

The consortium is composed of Petra Diamonds Ltd., the Saudi-based investment company Al Rajhi Holdings WLL and Thembinkosi Mining Investments (Pty) Ltd.

The move is part of De Beers’ effort to realign its mining portfolio and shift its focus away from controlling market share.

The Cullinan mine is the third mine DBCM has sold, or is in the process of selling, to Petra.

Petra already has purchased the Dancari Mine in the Barkley West District and the Koffiefontein Mine. The company also has reached an agreement to buy DBCM’s Kimberley underground mines, a deal that will be finalized in early 2008.

According to DBCM, the Cullinan sale concludes the company’s portfolio review process and, going forward, the company now will concentrate on new projects, such as SASA, the marine mining operation off the west coast of South Africa, and Voorspoed.

“This will enable De Beers to best use our capital to invest in exciting growth opportunities and to sustain a strong diamond-mining business in South Africa for the future,” De Beers Managing Director Gareth Penny said in a statement. “In this way, De Beers is strengthening its commercial future in South Africa whilst helping to meet (the) government’s aspirations for a diversified, transformed South African diamond industry.”

The Cullinan mine has been in operation for nearly 100 years. Named for its discoverer Sir Thomas Cullinan, it is famous for producing the 3,000-plus-carat Cullinan Diamond in 1905, still the largest diamond ever mined.