By Jacquie De Almeida
Empowering human beings causes an organization to be high-performing.
That’s the message General Colin Powell delivered at American Gem Society’s (AGS’s) 2016 Conclave, held last week at the Hyatt Regency Crystal City in Arlington, Va.
Entitled “Leadership: Taking Charge,” the opening keynote address inspired a packed ballroom of jewellers from across the supply chain, highlighted by stories of Powell’s time as national security advisor to President Ronald Reagan in the late 1980s.
“I’ve always worked directly with my subordinates to empower them,” Powell said. “Each person I had to empower had a different range. Some had a greater range than others, but they knew I trusted them to do [their jobs] and that I respected them. The greatest success I had in the positions I’ve occupied was not in the authority given to me, but the influence I was able to generate in the people who worked for me.”
The five-day event offered AGS members a smorgasbord of seminars featuring industry heavyweights and experts in a range of fields. Here are four takeaways:
1) In “The state of the jewellery industry (It’s not so bad!),” JCK news director Rob Bates looked at the changing retail landscape, the penetration of online sales into the brick-and-mortar arena, and the buying habits of millennials. His findings? Yes, the jewellery industry is shrinking—mostly by consolidation—but so are other industries, and compared to those, we’re doing much better.
While the Internet has hurt everyone, most consumers still want to buy jewellery in a store, he said, a conclusion reinforced by online diamond giant Blue Nile’s decision to open web stores in select U.S. cities. No doubt millennials love their smart devices, but when it comes to parting with their cash, they are prone to picking experiences over clicking.
“Most people who research jewellery online don’t buy there,” Bates told a gathering of about 40 people. “This isn’t true in other industries. Those who look for books online go ahead and buy the book. If they look for a piece of clothing, they buy it. With jewellery, people research and then they go to a jeweller because it’s a visual and high-value product. A lot of people would be nervous about receiving something for $7000 in the mail. Jewellery is not standardized and that’s an important point.”
2) Known as the ‘technology therapist,’ Jennifer Shaheen presented “Multi-channel marketing for real-world retailers and brands.” In it, she stressed the importance of businesses to create a viable marketing presence on multiple marketing platforms, such as social media, websites, mobile, radio, television, and print advertising.
“People prefer having different conversations on different platforms,” Shaheen said. “But to build a brand identity, keep your messages the same across all channels. A confused mind takes no action.”
3) In ‘Changing the way we sell diamonds,” Jeffrey Skaret, director of partner development and training for Forevermark U.S., said the 4 Cs no longer suffice when selling diamonds. Using proprietary research from De Beers Group, Skaret said consumers’ focus in their behaviour when buying diamonds has changed, which means retailers’ selling strategies must also shift. Specifically, retailers should approach a sale by considering consumers’ emotional rationale behind the purchase.
“We cannot solve our problems with the same thinking we used when we created them,” said Skaret, quoting Albert Einstein.
Despite the ability to buy high-cost items online safely, 82 per cent of diamond purchases are done in-store, he explained, creating sales opportunities for brick-and-mortar retailers.
“Consumers gather information online, but they don’t have knowledge. Retailers have knowledge. Why doesn’t a consumer push a button to make a diamond purchase? They are searching for something they aren’t getting online. The in-store experience drives a higher price; retailers can really influence a higher sale.”
4) Kevin Reilly, who serves as vice-president of Platinum Guild International (PGI), presented “In-store conversion,” a session that in part looked at research into platinum engagement ring and wedding band purchases. He said that although consumers report wanting to purchase platinum jewellery, they end up buying white gold instead. The reason? Retail staff tend to divert them to the other metal, usually because they don’t have platinum pieces in the showcase. And even though the sales associate may be successful in selling a white gold piece of jewellery, crunching the numbers shows more money could have been made on the platinum alternative, he added.
Millennials also played a part in Reilly’s seminar, which saw audience members generating ideas during the interactive portion for transforming the in-store experience to increase sales among this client base. Diamond-cutting demonstrations, personalizing stories on social media, and holding an in-store mini-Basel fair were just three of the suggestions audience members came up with to boost profitability.
Next year, Conclave will be held April 5 for 8 at Lowes Hollywood Hotel in Hollywood, Calif.
