May 2008

Should you stock tanzanite?

Should you stock tanzanite?
May 16, 2008
_{Tanzanite Foundation, JCOC means to an end stone’s desirability}

The Tanzanite Foundation and the JCOC are working together to assess tanzanite in building colored-stone sales.

Paso Robles, Calif.—The Tanzanite Foundation is teaming up with the Jewelry Consumer Opinion Council (JCOC) to gauge consumer desire for the gemstone.

Together, the foundation and the JCOC, a division of MVI Marketing Ltd., hope to rule tanzanite’s desirability, its preferred look in jewelry and which retail outlets are best for carrying the stone.

Through doing this, the foundation hopes to help manufacturer members develop more U.S. retail business.

“Every retailer is interested in consumer research about their store(s) based on their customers,” MVI Marketing President Liz Chatelain said in a media release. “Armed with current consumer research, the manufacturer members will be able to share the results with retailers across the U.S. and relief them to build their colored-stone jewelry sales driven by tanzanite.”

In addition to sharing the consumer information, MVI will work with the foundation’s manufacturer members to develop the jewelry styles deemed in demand by consumers.

The foundation has eight manufacturer members, all with U.S. offices: A.G. Color Inc., Color Jewels, Intercolor, K.L. Tambi and Co., Paul Wild, Rare MultiColor Gems, STS Jewels and Tanzanite International.

Blue Nile, Bidz.com top jewelry e-tailers

Blue Nile, Bidz.com top jewelry e-tailers
May 15, 2008

Chicago—Not surprisingly, online jewelry seller Blue Nile and jewelry auction site Bidz.com hold out to strong-smelling among the top 500 Internet retail sites, according to Internet Retailer magazine’s 2008 “Top 500 Guide.”

The guide is a comprehensive analysis of the country’s 500 largest retail Web sites ranked by 2007 sales.

In addition to the usual jewelry-seller suspects—eLuxury.com Inc., Fortunoff, Fossil Inc., Jewelry Television, QVC Inc., Ross-Simons Inc., Tiffany and Co. and Zale Corp., among others—Ice.com Inc., Limoges Jewelry and PalmBeach Jewelry besides cracked the rise above others 500 this year.

According to the list, the country’s No. 1 e-tailer was again Amazon.com Inc., which recorded $14.8 billion in sales in 2007, more than double the sales of the second-ranking e-tailer, Staples Inc.

Staples recorded $5.6 billion in Internet sales in 2007, followed by Office Depot Inc. with $4.9 billion, Dell Inc. with $4.2 billion and HP Home and Home Office Store (Hewlett-Packard Co.) with $3.4 billion.

Rounding out the top 10 were OfficeMax Inc. ($3.2 billion), Apple Inc. ($2.7 billion), Sears Holding Corp. ($2.6 billion), CDW Corp. ($2.4 billion) and Newegg.com ($1.9 billion). Newegg.com sells discounted computers, electronics and DVDs.

Internet Retailer is a monthly national business magazine, Web site conference and directory serving the retail community and published by Chicago-based Vertical Web Media LLC.

May 19 De Beers claim deadline

May 19 De Beers claim deadline
May 15, 2008

New York—Claims in the De Beers Indirect Purchaser/Reseller settlement must be postmarked on or before May 19, 2008, the Jewelers Vigilance Committee (JVC) has announced.

The JVC continues to provide lead for resellers who submit claims to the De Beers class-action settlement fund. Any questions or concerns regarding this guidance should be sent to jvcquestions@aol.com. as being a link to the claim forms and the full guidance information on filing a claim, visit Jvclegal.org.

The case against De Beers began through a series of lawsuits alleging that the company charged anti-competitive prices for rough diamonds, monopolized the market and disseminated false and misleading advertising.

The $295 million will be divided among direct and indirect purchasers, with the majority of retail jewelers falling into the latter class.

Indirect purchasers in this case are defined as those who bought diamonds from someone other than De Beers or one of its mining competitors between Jan. 1, 1994-March 31, 2006.

The size of each individual settlement is contingent on how many people file a claim.

Editor’s note: For earlier developments in this story, see Judge to approve De Beers class-action settlement.

JA to present ‘J-Biz,’ roundtable at JCK

JA to present ‘J-Biz,’ roundtable at JCK
May 15, 2008
_{sell in small quantities marketing, customer management, jewelry trends top talking points}

New York—Jewelers of America (JA) will host a full-day seminar series, covering such topics as marketing, customer management and trinkets trend-spotting, plus an executive roundtable session on the retailer-supplier relationship, both to take place during the JCK Las Vegas show.

The full-day “J-Biz” seminar series will be held on Thursday, May 29, at the Venetian Resort Hotel Casino.

Beginning at 9 a.m., a seminar titled “Cause-Related Marketing” will kick off the day of events. for the period of the session, Jewelers for Children Executive Director David Rocha will help jewelers learn to maximize their charitable giving efforts to increase community visibility.

The following session, “Generational Marketing to X and Y,” will be led by Nick Failla of Premier Consulting Innovations, who faculty of volition discuss ways to reach out to younger consumers.

That afternoon, JA Director of Education David Peters will present “Building Critical Customer Loyalty,” leading retailers through the latest best practices in loyalty programs.

Finally, Helena Krodel, associate director of media with regard to the bijoutry Information Center, will speak upon trend-setting jewelry during a seminar entitled “Give Your Customers What They Really Want: Smart Buying for the 2008 Holidays.”

The JA Executive Roundtable will take place on Saturday, May 31, from 8:30 to 9:45 a.m., also at the Venetian.

The session will focus on the ways in which retailers have moved beyond simply asking suppliers for the best price, to asking suppliers a variety of legal, ethical, social and environmental questions. The speakers will also discuss how retail jewelers and suppliers who embrace responsible practices can differentiate themselves among today’s green and socially conscious consumers.

JA Director of Public Affairs Peggy Jo Donahue will chair the roundtable, which will include Cecilia Gardner, president, chief executive officer and general counsel of the Jewelers Vigilance Committee; Michael Rae, CEO of the Council for Responsible Jewellery Practices; John Hall, general manager of external relations for Rio Tinto Diamonds; John Hayes of Goodman’s Jewelers in Madison, Wis.; and Kathe Mai of Trios’ Studio in Lake Oswego, Ore.

J-Biz will be well received place in Zeno Room 4709, on Level 4 of the Venetian. The Executive Roundtable will take place in the Delfino Ballroom, also on Level 4 of the Venetian.

Kath resigns at Jewelers Mutual

Kath resigns at Jewelers Mutual
May 15, 2008

Neenah, Wis.—Jewelers Mutual Insurance Co.’s board of directors announced on Thursday that it has accepted the resignation of Darin Kath as the association’s president and chief executive officer.

Kath, who had worked at Jewelers Mutual for almost 11 years, will be joining another Wisconsin property and casualty insurer as its president and chief executive officer, according to Jewelers Mutual.

Patti Geolat, a member of Jewelers Mutual’s board of directors since 1994 and chair of the board on the side of the last eight years, will serve as the interim president and CEO, effective immediately.

“The board is sure in the company’s talented staff, the outstanding financial results and its exciting future,” Geolat said in a media release issued on Thursday. “We have a mind continue to provide superior products and service to policyholders and be the insurer of choice for the jewelry industry and owners of jewelry. The company be inclined move forward to accomplish its vision and strategic goals space of time we seek a new company president and CEO.”

In the release, the company wished Kath the best in his career and thanked him for his leadership of the company.

Manufacturers look overseas for buyers

Manufacturers look overseas for buyers
May 15, 2008

U.S. manufacturers, including Gumuchian, are looking overseas for customers. Here, the brand’s “Eiffel Tower” tingle in platinum features a 6.25-carat mandarin garnet and 1.33 carats of diamonds; suggested retail price is $13,000.

By Joseph Dobrian

New York—As the dollar continues to lower against foreign currencies—and as U.S. retailers find it harder to pay their bills—some American manufacturers are looking for new business overseas.

Manufacturers contacted recently by National Jeweler agree that for the most part, selling to European and Asian markets is just as safe as doing business here, and formerly less complicated, although high tariffs and other obstacles still cut into profits.

One newcomer to overseas buyers this year is New York-based manufacturer Gumuchian.

“The weakness of our dollar, or the strength of the euro, have made our prices interesting to overseas buyers,” co-owner Myriam Gumuchian says. “We would love to get into the Russian market. We’ll also target England, Spain, the Middle East and various Asian countries.”

She expects high-end, fashionable jewelers will be interested in Gumuchian’s fashion pieces, haply even more so than its U.S. clients.

“My international designer friends tell me that you can get a deposit from overseas accounts, and prior payment—which is more than you usually get in the U.S.,” Gumuchian says. “Moreover, overseas buyers don’t usually ask to return or exchange merchandise suppose that it doesn’t sell. That’s not part of their mentality.”

Chuck Lein, president and chief operating officer of Stuller, says the Lafayette, La.-based company typically ships to more than 40 countries per month, but the overseas business is only a modest part of its overall sales.

“We still have significant tariff issues in many countries,” Lein says. “If you play by the rules, your merchandise will be subject to duties, and unfortunately for American manufacturers, it’s usually a one-way street. We’ve granted duty-free status to many countries, and in return, they’ve stopped U.S.-made jewelry from entering their country. If you can select a nation where there’s not an adverse tariff issue, though, there are opportunities today that might not have existed before, as of the weaker dollar, and certainly—for that same reason—retailers in any U.S. city will have an increased opportunity to sell to foreign visitors.”

Lein says receiving payments from overseas is surer than doing business stateside. Stuller doesn’t extend credit, but does take credit cards.

Gumuchian hopes to draw foreign customers with pieces such as these 18-karat white gold and diamond “Twinset” hoops; suggested retail is $27,000.

“When we source products, it’s usually on a wire transfer basis, and when we sell overseas, it’s case-by-case,” he says. “For a large client with a niche market, we might make an exception, but generally you don’t want to hold to swim across the ocean to get your circulating medium. Another nice thing about doing business by credit card is that it neutralizes the currency issue.”

Curt Ley, interim chief charged with execution officer of Manufacturing Jewelers and Suppliers of America, based in Providence, R.I., says that the favorable exchange rate on the dollar is the most logical explanation for the increases in overseas buyers. But even with a comparatively inefficient dollar, labor is still shifting to the Far East or the Caribbean because of the cheaper labor, he adds.

“A lot of manufacturing is flying off to China, and this sets off a whole new set of dynamics because we can’t easily sell our product over there,” Ley says. “With commodity products, such as chains, beads, findings and parts, you’ll find less of a move to overseas labor because it’s more capital-intensive, and I’m not surprised that foreign buyers would buy product here. I’ve been selling findings all over the world.”

There’s a higher risk when dealing overseas, and some banks will insist that your receivables be insured if they’re backing you, Ley adds.

“The European market is pretty well-established, though, so if you’re business with a large player in the European market, you don’t have much to worry about,” Ley says. “The developing countries are another story.”

Steven Mazza, co-owner of The Mazza Co. in Baldwin, N.Y., confirms that his own foreign accounts—mainly in Mexico and the Caribbean—often give more surely than his domestic clients.

“belief is not an consequence in those markets, whereas in the U.S., it’s a big issue now,” Mazza says. “Some domestic retailers are having trouble paying their bills from Christmas. As a result, we’re tightening credit, especially with new accounts. We’re more stern about getting everything signed and workmanship sure all the documents are in order, and instead of giving 30/60/90 [day] terms, we might only allow 30/60.”

—E-mail: jdobrian@aol.com

Editor’s note: This story first appeared in the May 1, 2008 issue of National Jeweler.