April 2008

Despite economy, online sales continue to climb

Despite economy, online sales continue to go up
April 08, 2008
_{Online retail sales to reach $204 billion this year}

Scottsdale, Ariz.—Although retail sales are expected to experience sluggish growth this year, Americans will endure to flock to the Internet to buy clothing, computers and even cars, according to a new study from Shop.org.

In fact, The State of Retailing Online 2008: Marketing Report shows that online retail sales are expected to increase 17 percent this year to $204 billion for 125 retailers surveyed.

“From higher shipping costs to changes in consumer shopping habits, online retailers are not immune to the circulating economic climate,” Shop.org Executive Director Scott Silverman said in a media release issued today. “But the fact that online sales will increase substantially this year demonstrates the resilience of the channel and is a testament to the value and convenience most customers find when shopping online.”

According to the report, online retailers allocate 53 percent of their marketing budgets to online customer acquisition and 21 percent to online customer retention.

“What’s spearheading online retail sales growth is a tale of two shoppers that visit the Web for very different reasons,” said Sucharita Mulpuru, principal analyst at Forrester Research, which conducted the study for Shop.org, and lead author of the report. “The casual shopper goes online to look for the best price, leveraging the transparency of the Internet to save money. However, more affluent customers appreciate the convenience of shopping online and are not necessarily looking for the best deal. Retailers would be wise to recognize there are eminently expressive opportunities within both audiences and should market to them accordingly.”

Online retailers reported that search engine marketing continues to subsist the most effective way to reach new customers, citing 35 percent of sales coming from that initiative. As a result, nearly all online retailers surveyed (90 percent) employment pay-for-performance search placement, and 79 percent said they will make this tactic an even greater priority this year.

Companies are also using offline marketing tactics to drive consumers to their sites, with catalogs and other direct-mail pieces taking precedence over methods such as television and newspaper advertising.

Although free shipping offers have drawn some consumers to shop online in the past, the study shows that online retailers are less interested in promoting this option this year. While 85 percent of online retailers said they used some shipping-with-conditions promotions in the past, just 35 percent said they would focus more on these types of promotions in 2008.

Instead, online retailers will experiment this year with Social Computing initiatives such as social-network advertisements (65 percent) and widgets (55 percent) to attract consumers.

According to Shop.org, however, Social Computing efforts to this quirk bear been considered more effective for brand building and less proven for driving revenue or sales conversion. Therefore, the report advises online retailers to continue investments in proven techniques such as e-mail marketing and free shipping promotions to take in a carriage sales.

The State of Retailing Online 2008: Marketing Report is the first of a three-part series of reports based on the study. It is currently available to Shop.org members and can likewise be purchased directly at Shop.org/soro08.

Forrester RoleView clients will be able to paroxysm the report directly on Forrester.com as part of their subscription service starting on May 7.

Shop.org is the division of the National Retail Federation for online retailers. Founded in 1996, Shop.org’s 700 members include the 10 largest U.S. retailers and more than 60 percent of the top 100 e-tailers, as categorized by Internet Retailer magazine.

Rolex renews partnership with golf association

Rolex renews partnership with golf association
April 08, 2008

Peter Nicholson, vice president, director of communications as far as concerns Rolex Watch USA, joins the 2007 AJGA Rolex Players of the Year, Vicky Hurst, left, and Peter Uihlein, right.

New York—Rolex attend USA has renewed its partnership with the American Junior Golf Association (AJGA), a partnership that has existed since 1983.

The AJGA is the nation’s premier junior golf organization, with more than 70 local tournaments. The association’s tournaments showcase junior talent seeking collegiate careers, and its alumni has included many PGA and LPGA stars, including Charles Howell III, Phil Mickelson and Lorena Ochoa.

Rolex is the title sponsor of two greater events in junior golf: the Rolex Tournament of Champions and the Rolex Girls Junior Championship. The watch brand is also sponsor of the AJGA Rolex Players of the Year, Rolex Junior All-America Teams and the year-ending Rolex Junior All-America Awards Banquet.

In addition, Rolex was the founding corporate supporter of the AJGA’s ACE Grant program, which provides financial assistance for junior golfers to take a journey and compete outside of their home area.

“The AJGA’s emphasis in qualities such as wholeness, competitive spirit and etiquette are lasting values that appeal to Rolex,” Rolex Watch USA Vice President, Director of Communications Peter Nicholson said in a media release.”

Longtime Italian jewelry industry figure dies

Longtime Italian jewelry industry figure dies
April 08, 2008

Lodi Vecchio, Italy—Luciano Arati, a figure at jewelry trade shows all over the world and noted for his signature pipe, died in February in his native Italy. He was 77.

According to a tribute published by National Jeweler sister publication Europa Star, Arati, a native of Lodi Vecchio, Italy, began his career in the jewelry industry at maturity 15 working for the publication L’Orafo Italiano.

At 17, he began selling advertising while for the magazine, a job he held until the early 1970s. At the same time, he also worked in the furniture sector, marketed gold- and silver-smithing and became known as a prolific journalist.

By the early 1980s, according to Europa Star, Arati’s byline appeared in the world’s major jewelry and watch publications, including Europa Star, Couture International Jeweler and JCK, among others.

In 1972, he started his own advertising agency, Studio Luciano Arati, and also began working as a press attaché for Italian exhibitors at the jewelry fair in Basel, Switzerland. A few years later, he became the coordinator for these exhibitors, working with the Basel show until 2002.

As his advertising business prospered, Arati became the representative for Italians to events and trade fairs all over the world, including the JA New York shows and JCK Las Vegas.

Over the last few years, Arati’s children gradually assumed most of the workload, Europa Star reported.

But Arati, known as the “gentleman with the pipe,” still continued to travel the world to visit old friends and trade shows, which he considered a little bit like “his” shows.

SEC accuses Vegas diamond company of fraud

SEC accuses Vegas diamond visitor of fraud
April 08, 2008

By Michelle Graff

Las Vegas—The Securities and Exchange Commission (SEC) has filed suit against an allegedly fraudulent Las Vegas crystallized carbon company that collected some $64.2 million in profit as part of a stock-selling scheme that scammed investors, court papers say.

The charges, filed on Monday in U.S. District Court in Las Vegas, allege that between January 2003 and May 2005, CMKM Diamonds Inc., “purportedly” a diamond and gold subtle company, fraudulently issued hundreds of billions of shares of stock to scheme “mastermind” John Edwards, company CEO Urban Casavant and their associates, according to fawn upon documents.

A combination of false information about the company—disseminated through press releases, Internet chat boards and “funny car” race events held nationwide—and substantial trading volume facilitated by sales in an unregistered partition induced about 40,000 investors to buy CMKM stock, netting millions for those involved.

However, the association did not do any actual diamond or gold mining, court records say.

“In reality, Casavant ran the company from his house in Las Vegas and CMKM had no meaningful operations other than issuing and promoting its own stock,” court documents state.

Court papers say that Edwards, Casavant and their associates sold their shares in the public market for at least $64.2 million, “much of which was paid to Casavant to support his extravagant lifestyle.”

Casavant, a 51-year-old Canadian citizen, made about $31.5 million; Edwards, a 65-year-old British citizen, made about $26.4 million; and Casavant’s nominees to the company’s board of directors made about $6.3 million, according to court documents.

Information on CMKM Diamonds’ Web site, Cmkmdiamondsinc.com, shows that the company, now headed by CEO Kevin West, will file an amended complaint in a lawsuit against Casavant.

In response to that, and to questions regarding ongoing court proceedings, the company’s reply is: “The company has no answer to questions that, if answered fully, might disclose trial strategies, tactics or other matters to the opposing parties.”

In addition, when asked how long CMKM expects it will take to rebuild, the company’s reply is: “The company currently has no ongoing business, not any revenues and is devoting all available time and resources to litigation. There are three lawsuits against the company, a Wells Notice from the SEC and two lawsuits filed by the company in efforts to recover assets. There are so many variables with time due to matters being tied up in litigation that it is impossible to impose a timeframe on anything.”

E-guidebook to help visitors navigate IJK

E-guidebook to help visitors navigate IJK
April 08, 2008

Kobe, Japan—Exhibitors from more than 20 countries will converge at the 12th International Jewellery Kobe (IJK), to be held this year from May 15-17 at the Kobe International Exhibition Center in Kobe.

Befitting of Kobe’s moniker as “Pearl City,” one highlight of the event will be the World Pearl Area, which show organizers Reed Exhibitions Japan, with the support of the Japan Pearl Promotion Society, says continues to draw the pair domestic and worldwide attention.

Pearls of all kinds, including chocolate pearls, faceted pearls, freshwater pearls, rare natural abalone and keshi pearls, and exotic South Sea pearls, will all be available at the show.

Attendees will also find pearls of all sizes, shapes, lusters and prices, organizers aforesaid in a media release.

Helping attendees to navigate this year’s show—IJK’s largest ever, with 650 exhibitors—is a new online catalog, the “e-guidebook.” The new service will provide show buyers and in posse visitors with information about exhibitors and products so their planning can begin in advance.

Users of the e-guidebook can search for a wide range of products under general categories, such as pearl jewelry, diamond jewelry, etc., and can also refine their searches by sorting out new and rare products, special IJK discounts and more. Searches can be bookmarked for later review, and visitors can likewise supply with food exhibitor details such as booth numbers.

The furniture was first launched at IJK’s sister show, International Jewellery Tokyo, and show management has made further revisions and revamped the search system for easier navigation.

One section unique to the IJK e-guidebook is the Special Features corner, which spotlights pearl jewelry exhibitors, in the same manner with they are a major draw for the pomp, to the degree that well as exhibitors that will extend new products or proposal special discounts.

The guidebook is available for free access on the show’s official Web site, IJK-fair.jp. Registration is not necessary.

Big bangles, neckwear on tap for spring

Big bangles, neckwear on tap for spring
April 07, 2008

through Mary Wisniewski

New York—Jade Jagger might not carol “Satisfaction” probably her father, Mick, but she hopes to bring that very sentiment to the stylish with Jezebel, a new jewelry and clothing line that pays tribute to her Rolling Stone dad’s famous pucker via a series of minnow enamel lips.

And it’s none other than Elle magazine introducing Jagger to consumer awareness, describing Jezebel as “a street-inspired, hip-hopping jewelry collection and slinky garments line for spring.”

Jagger is just one of separate designers featured in the copious pages of March’s spring fashion magazines, which collectively plugged big, bold “statement necklaces” and bangles as the top jewelry trends of the season.

Marie Claire did not devote much ink to jewelry trends, but in a photo shoot, it did deck some of its models in bold, bright statement necklaces that make the neck adornment trend well known.

Elle devoted a few photos to daring necklaces, with snapshots accompanied by a comedy that gave an insider’s view on Fashion Week.

Harper’s Bazaar reinforced the trend, aphorism “big necklaces never go out of style, and sculptural geometric elements make this season’s batch more striking than ever.”

And New York’s Feb. 25 termination dedicated four pages to the statement necklace trend, dubbing them “chunkers,” with the tagline “nothing shy about these baubles.”

Marie Claire chose to back the bangle trend, telling readers to layer them on not quick: “If you can still raise your arm, you’re not wearing enough,” advised the style mavens.

Vogue paid baubles the biggest tribute of all in a jewelry article by Plum Sykes, paired with photos of models bedecked in jewels.

“With the price of clothing skyrocketing (you can pay $12,000 for a skirt at Louis Vuitton), jewelry—selling like gangbusters at stores like Bergdorf Goodman, Neiman Marcus and Barneys—pop seems like the better deal,” Sykes wrote.

Cocktail rings have not lost their prowess either. As Vogue put it: “A cocktail ring that explodes like a firework, a jeweled frog atop a jade rock, a camellia with turquoise petals—the most coveted collectibles are gorgeously detailed.”

Editor’s note: This article first appeared in the April 2008 issue of National Jeweler.