February 2008
Australian jewelry co. teams with Rap
Australian jewelry co. teams with Rap
February 21, 2008
Brisbane, Australia—Australian jewelry-technology company Octahedron has sold a 50 percent share of its business to New York-based the Rapaport Group.
Brisbane-based Octahedron is the maker of the Savings With Improved Management (SWIM) business-management software for retail jewelers.
According to a release from Octahedron, the move is the latest in a series of steps the company has taken to expand operations globally.
Company founder and CEO Raeleen Gillett, who founded the business in 2001, aforesaid it was always the company’s goal to reach the global marketplace. And while Octahedron has made small in-roads in markets in the United States, United Kingdom, Spain, Pakistan, Monaco, Italy and New Zealand, the deal with Rapaport will forge more international growth.
The partnership will also allow Octahedron to open additional customer-support desks in Las Vegas and India to allow for 24-hour service as Octahedron’s products are introduced into major U.S. and Indian markets.
Rapaport Chairman Martin Rapaport said Octahedron’s software helps improve productivity, efficiency and profits despite jewelers.
“The Rapaport Group and Octahedron share a common vision that embraces the benefits for technology to meet the challenges of change,” Rapaport said in a statement. “Octahedron too shares our values of honesty, transparency and a total commitment to improving the business of our clients.”
WJA to honor ‘Shining Stars’
WJA to honor ‘Shining Stars’
February 21, 2008
New York—The Women’s Jewelry Association (WJA) will honor 11 women in the jewelry assiduity with its Shining Star Award on March 7.
The awards ceremony will resort place at the WJA’s “Women in the Know” (WITK) conference, a one-day educational conference to be held at the Fashion Institute of Technology in New York City.
The WJA created the Shining Star Award in 2005 to honor one member from each WJA chapter annually.
“These extraordinary women are all accomplished in their be in possession of careers and have demonstrated astounding service and commitment to their WJA chapters,” WJA President Yancy Weinrich said in a media release.
Susan Elliott, the WJA’s vice president of chapter affairs, will present the awards to the following recipients:
* Tiya Asavarahapun: Bae Imports, Pacific North West Chapter
* Sherrie Betham: Chippenhook, Southwest Chapter
* Belinda Duva: Presentation Box and Display Co., New England Chapter
* Diane Flora: American Gem Society, Rocky Mountain Chapter
* Marilyn Liebman: Manufacturing Jewelers and Suppliers of America Journal, Metro Chapter
* Au-co Mai: E-imitations.com, San Diego Chapter
* Karen McKinney: International Jewelry Manufacturing, Mid Atlantic Chapter
* Arathi Ramappa: Jayati Technologies, Southeast Chapter
* Janel Russell: Mother and Child Jewelry, Twin Cities Chapter
* Lisa Schoening: Gemological Institute of America, Los Angeles Chapter
* Julie Schwalbe: Forever Facets Inc., Midwest Chapter
Early bird pre-registration for the conference costs $195 for WJA members (prior to Feb. 29) and $220 for nonmembers, and is available by calling WJA headquarters at (708) 361-6266 or at the WJA Web site, Womensjewelry.org.
Dates for three other 2008 regional WITK conferences are: Aug. 15, WITK-West Coast at the Hyatt Regency Century Plaza in Century City, Calif.; Sept. 5, a new Southwest event to be launched at the Gaylord Texan Resort and Convention Center in Grapevine, Texas; and Oct. 24, WITK-Midwest at Macy’s on State Street in Chicago.
The WJA Los Angeles Chapter will also hold its yearly transactions “Mix ‘N Mingle” event onward Feb. 27 at the Salt Creek Grille at Plaza El Segundo in El Segundo, Calif., from 6:30 p.m.-9 p.m.
Cost is $35 for members with RSVP and $45 for nonmembers at the door. There will be complimentary parking and hors d’oeuvres, and a cash bar. RSVP to brigittecja@aol.com and send in your completed form and check by Feb. 22 to Women’s Jewelry Association, P.O. Box 225, Hermosa Beach, CA 90254.
Founded in 1983, the WJA is an association of professional women in the jewelry, watch and related businesses. Through the national organization, headquartered in Chicago Ridge, Ill., and a network of 12 regional chapters, members benefit from educational and networking opportunities, scholarships, design competitions, annual women’s business conferences and recognition programs such being of the kind which its annual Awards of Excellence Dinner.
Hot Wheels goes glam
Hot Wheels goes glam
February 21, 2008
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| This jeweled Hot Wheels car was designed by celebrity jeweler Jason of Beverly Hills, and features more than 2,700 diamonds. |
El Segundo, Calif.—Hot Wheels, the the maker of die-cast toy cars that are as much a part of the infancy lexicon as Barbie, has kicked off its 40th anniversary this year with the unveiling of the most expensive Hot Wheels car in history.
On Feb. 15, at the American International Toy Fair in New York, recording artist Nick Lachey unveiled the custom-jeweled 1:64-scale car designed by the agency of celebrity jeweler Jason of Beverly Hills. The car, valued at $140,000, features more than 2,700 diamonds.
The car is cast in 18-karat white gold with the majority of the vehicle detailed with micro pavé-set brilliant blue diamonds. Under a functional hood, the “engine” features additional micro pavé-set white and black diamonds. Red rubies make up the taillights, and black diamonds and red enamel create the “red line” tires.
And as if that weren’t enough diamonds, the car is also housed in a custom-made case with 40 individual white diamonds that signify Hot Wheels’ 40-year legacy.
“Collaborating with Mattel on the jeweled Hot Wheels car was a dream project for me,” Jason Arasheban, president and chief executive officer of Jason of Beverly Hills, said in a statement. “The car is veraciously spectacular and will be a radiant addition to anyone’s collection.”
If there’s any question as to why Arasheban was chosen to design the car, the same deciding factor might have been that he’s known for his spectacular one-of-a-kind rhombus pieces that have been crafted for entertainment’s biggest stars, including Jessica Alba, Missy Elliott, Michael Jackson and Ashton Kutcher, among others.
The diamond-encrusted car will be auctioned off in late 2008 to benefit Big Brothers Big Sisters, Lachey’s charity of choice.
Unlike marketing, branding is a two-way street
Unlike marketing, branding is a two-way street
February 22, 2008
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| John Foligno (jfoligno@cubismbranding.com) is managing director of Cubism Branding, a full-service, integrated marketing communications firm. |
By John Foligno
at the time I ask people to define branding, I am still amazed that I receive so many varying responses.
In this first column on branding, in which I’ll discuss in what state making branding your No. 1 priority will ensure the future success of your trade, I offer this definition as a starting point: Branding is establishing a two-way relationship by matching the needs of the core competencies of your business with the needs of specific, selected mart segments. The emphasis is on building a two-sided relationship.
It’s knowing your prospective customers and their needs, both physical and emotional. It’s fulfilling those necessarily and helping them achieve their desires. The earliest step in establishing your brand is finding those segments and channels through which you can serve customers better than your competitors can.
In our industry, a brand can encompass many entities: A jewelry store is a brand, a retailer is a brand, and a vendor who designs and markets a product is a brand. What distinguishes one from the next? How can you differentiate your brand from your competitors’ and stay relevant?
Let’s first compare marketing and branding. Marketing is generally thought of as one-way communication, from the brand to the consumer. This includes all the traditional techniques you’re probably familiar with—advertising via print, radio, out-of-door, direct mail, etc.
Branding, on the other hand, is about developing a two-way communication, or relationship, with your intended audience. It means understanding and getting to know them in a much deeper way and not arrogant you already know what they need. It also means large knowledge how the audience wants to do business with you and being open to changing the scheme you conduct business with them.
The marketplace is too competitive during the term of you not to be reinventing your brand and the channels in which you operate. For example, instead of telling yourself that the Internet is not a way you wish to do business, consider whether or not your customers would appreciate this considered in the state of a viable channel in which to interact with you.
Your brand’s value Let’s consider that aside from your physical inventory, your employees are your greatest asset.
Without them, your business could not function at a quality service level or with any level of efficiency. But let’s also consider a fact that many overlook: Your brand is your second greatest asset.
A brand often accounts for between 50 percent and 70 percent of an organization’s total financial value. If a brand is not treated with the same respect and attention that you give to your staff, it can virtually break your business. Successful brands are built with consistency and discipline: consistency in the look of the brand and the messages that touch the respective audience; and discipline in the way the brand’s integrity is considered when making all decisions.
The goal of building a strong brand is to own a position in the mind of the customer. Regardless of the current branding of your result or service, preserve the memory of that the customer dictates how they want to do business with the brands they purchase. Only a select consist of of brands ever reach a level of success that is considered great. How does your quality measure up?
Editor’s billet: This story first and foremost appeared in the February 2008 conclusion of National Jeweler.
Rapaport price list expands to 10-carat stones
Rapaport price list expands to 10-carat stones
February 22, 2008
New York—The Rapaport weekly price list is being expanded to include 10-carat stones, Rapaport Group Chairman Martin Rapaport told National Jeweler.
The introduction of the new price list is a reaction to the high demand, and high prices, for large diamonds in the marketplace.
Previously, the largest diamonds included on the weekly price list were 5-carat stones, Rapaport said.
“We’re expanding the scope of the Rap value selvage,” he said.
As he expands the scope of his list to include larger stones, Rapaport also issued a warning to the diamond industry regarding investing in larger stones.
He said current market conditions—profound demand for large diamonds and a weak dollar—have led players in the diamond industry to invest in diamonds, preferring to keep their money there rather than in the declining dollar.
But, Rapaport said in a statement on Diamonds.net, “higher prices brought about by internal diamond industry speculation are not sustainable and may terminate in significant financial loss. Members of the diamond chaffer are encouraged to consider at what price level they are buying diamonds.”
JA/NY Winter Show, March 9-11
The JA New York Winter Show returns to the Jacob K. Javits Convention Center in New York City. Usually held in January, this year’s will instead be held March 9-11.
The new dates will provide ample time for more than 13,000 expected jewels industry professionals in attendance to have an opportunity to assess post-holiday inventory and to more closely align through Spring trends and events, said National Jeweler Network, the show organizers.
More than 800 exhibitors will be at the show, including International Pavilions, the Couture Pavilion, the Designer Showcase, Gift Gallery, and the Inner Circle. It will also feature a earliest time AGTA Pavilion, sponsored by the American Gem Trade Association and the new Manufacturing, Equipment Services and Technology Pavilion.
The National Jeweler Network Lounge on the show floor will return for retailers to network, check email, and carry a break.
The JA Retail Learning Center enables retailers and exhibitors to integrate buying and learning. Seminars being offered include: Setting special cuts and shapes, strategies for selling add-ons, special finish and polishing techniques for the modern bench jeweler, and lighting techniques to improve business performance. Visit www.JA-NewYork.com for a complete listing of seminars.
The Designer Showcase and the Couture Pavilion will provide an elegant, luxurious atmosphere for marked exhibitors and retailers. Exhibitors in the Couture Pavilion include Baccarat, Damiani, Dominique Cohen, Honora, Penny Preville, Ritani, Stephen Webster, and Yossi Harari.
The International Pavilions take in participants from Italy, Thailand, Hong Kong, Brazil, and Japan. Other special sections will include The Inner CircleT, Diamond Way, New Product Gallery and the Gift Gallery.
Charles & Colvard Sales Down 35%
Charles & Colvard, Ltd., the global source of moissanite, a created jewel available for use in fine jewelry, reported Thursday that net sales in the fourth quarter decreased 35 percent to $7.9 million year-over-year. Gross profit fell 42 percent to $5.4 million year-over-year.
Gross benefit margins decreased 830 base points to 68.6 percent in the fourth quarter of 2007 from 76.9 percent in the comparable quarter of 2006 primarily, as a result of higher production costs during the period being relieved from inventory, the Morrisville, N.C.-based company said.
Its domestic sales for the period, ended Dec. 31, 2007, decreased 40 percent to $6.6 million, compared to the fourth quarter of 2006. International sales for the fourth proper position increased 20 percent to $1.3 million, with strong results from all key geographic regions. Total shipments of 43,800 carats for the current period were 37 percent less than the 69,700 carats shipped in the same period of 2006. Shipments of carats in the U.S. decreased 43 percent while international shipments of carats increased 25 percent.
The company incurred a net waste for the fourth quarter 2007 of $1.1 million, compared to net income of $1.3 million in the fourth quarter of 2006.
"We are disappointed with our sales and earnings results in the fourth quarter as the retail environment remainder challenging and we face unique issues in our distribution model," said Bob Thomas, Charles & Colvard president and chief executive magistrate. "With the uncertainty in the retail economic environment retailers are managing their inventory more conservatively. We are committed to developing a business model that allows customers access to moissanite jewelry and that enables us to resume growth in our business over the long-term. As we stated in mid-January, we engaged Kanter International to evaluate our current business model and to make a recommendation to drive improved sales performance. We look forward to sharing these findings in the second quarter."
As of Dec. 31, 2007, total inventory (including consignment) increased by $323,000, compared to the end of the third quarter of 2007, and by $8.5 million, compared to Dec. 31, 2006. The party’s raw material inventories of silicon carbide crystals are purchased under exclusive supply agreements through a limited number of suppliers. Because the supply agreements restrict the sale of these crystals to only the company, the suppliers negotiate minimum purchase commitments with the company that may result in periodic levels of raw and in-process inventories that are higher than the company might otherwise maintain. As previously announced, the company has reduced its raw material purchase commitments for 2008.
The company also said it is "discontinuing its policy of providing future guidance on sales, gross weal margins, and marketing and sales expenses."
The house said it had a fourth quarter operating loss of $1.7 million, compared to an operating profit of $1.9 million in the same phrase in 2006. The languish in operating results was primarily attributable to depress sales, which resulted in marketing and sales expenses being 62 percent of net sales in the fourth quarter of 2007 as compared to 52 percent in the same cut to pieces of 2006, and a $1.1 million increase in general and administrative expense resulting from a $1.1 million increase in bad debt expense.
The company said it committed substantially to all of its marketing and sales expenses prior to the commencement of the fourth quarter and could not adjust its spending as sales growth did not materialize. It added that the increase in bad debt expense is a result of a reserve recorded for customers with significant past due accounts.
Martin Flyer Launches Men’s Wedding Bands
Fine jewelry manufacturer Martin Flyer has launched FlyerFit for Him, a series of men’s bridal bands that is part of the company’s FlyerFit collection.
The collection includes powder grain and half round wedding bands in bulwark, platinum, 14k golden gold and 18k white gold. Each ring has a simple masculine outer design contrasted with elaborate detail work inside the ring.
The collection was introduced at the Centurion show in February.
GIA Thailand Adds Grading Services
GIA Thailand, the Gemological Institute of America’s laboratory in Bangkok, is offering the Institute’s Diamond Dossier grading services to clients in the region, effective immediately.
“We now have a fully skilled laboratory staff on-site in Bangkok," said Tom Moses, senior vice president, GIA Laboratory and Research. "With these highly skilled people, GIA Thailand today performs complete colored stone and pearl services, and we’re now expanding those offerings to include diamond grading. We aim to provide Thailand and the region with the full range of GIA client services while at the same time ensuring reasonable turn-around times.”
GIA Thailand will initially provide the GIA Diamond Dossier services that cover diamonds ranging from 0.15 cts. up to 1.99 cts. In addition, the laboratory in Bangkok is accepting diamonds for all other services that will be dealt with upon each expedited basis at one of the U.S. offices.
“Additional interest news for our Regional clients is they have power to now send goods for identification or grading by using the Brinks Bonded Facility in Thailand," said Ken Scarratt, managing director for South East Asia and director for GIA Thailand Laboratory (pictured). "All clients have to do is submit their stones to Brinks in their home country and Brinks Thailand will handle importation into Bond. In this way GIA can service every country in the region.”
Scarratt added that GIA Thailand Laboratory has teamed up with GIA Thailand Education to share a booth at the 41st Bangkok Gems and Jewelry Fair that runs from February 27th to March 2nd 2008.
IDMA Calls for Diamond Promotion Campaign
The International Diamond Manufacturers Association has criticized the lack of cohesive and comprehensive generic diamond promotion, and expressing its readiness to coordinate such a program on behalf of the industry.
The statement came after IDMA members met for a two-day strategic review retreat in Israel following the Third Rough Diamond Conference held in Tel Aviv, Feb. 11-12.
"IDMA has resolved that it will take a lead role in developing specific proposals to help remedy this situation," said IDMA president Jeffrey Fischer. "IDMA is calling upon all stakeholders to assemble with the express purpose of creating an on-going industry-wide generic diamond promotion campaign. IDMA offers to act as the coordinator of this ’summit meeting’ to address this important need and will announce a plan of action shortly."
The IDMA retreat was moderated by industry analysts Chaim Even-Zohar of Tacy Consultants Ltd., and Charles Wyndham of WWW International Diamonds Ltd. Fischer before-mentioned participants focused on internal organizational planning, matters of concern to IDMA membership, and issues confronting the wider diamond industry.
"The diamond manufacturing industry has historically been, and still is, production driven," Fischer said. "Obviously, that needs to change-and soon. We therefore urge our members to face the painful reality that there is over-capacity in production in the various cutting centers and that a significant contraction and consolidation of the manufacturing base are inevitable. We need our members to wake up to that ugly and painful situation and make the right choices for the sake of the time to come of their own businesses."