A changing season: News and views from the Canadian summer shows

by carly_midgley | October 4, 2018 8:44 am

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By Carly Midgley

In the day-to-day rush that makes up the life of a jewellery retailer, it can be difficult to keep track of the bigger picture. For Montréal designer Kate Hubley, however, it’s all about perspective.

“As time passes, we live and learn from our experiences,” she says from her booth at Expo Prestige in Montréal. “In the moment, we might have one experience. Then when the pendulum has time to swing in the opposite direction, we can truly take a step back and see what that experience means. When it comes to a standstill, that’s when you have your calm.”

This is the inspiration behind Hubley’s ‘Pendulum’ earrings, which earned her a spot among the 15 winners of the Québec Jewellery Contest at Expo Prestige 2018. This juried competition recognizes exceptional work by designers, jewellers, and students who are members of the Québec Jewelers’ Corporation (CBQ).

Local designers were also shown some love on the show floor itself with the addition of the brand-new designers’ pavilion, where nine Québécois jewellers, including Hubley, gathered to show off their styles.

“The show organizers have really been very conscientious and helpful,” Hubley says. “They truly care that we do well, sending people down here and making two announcements a day.”

The new pavilion was welcomed by many exhibitors as a step forward. Kenneth Laughlin, sales representative for United Precious Metal Refining, looks at it as one way to bring some much-needed “new blood” to the 48-year-old event.

“From my own observations, the median age group at the show now is people in their 50s and 60s,” he says. “Montréal has fantastic designers, and those designers are the people who are going to bring in the new generation.”

This focus on the young and up-and-coming wasn’t just limited to la belle province. CJExpos Toronto and Edmonton also put emerging designers in the spotlight this summer by showcasing pieces by the 2018 Giovanni Vaccaro Family Scholarship finalists, allowing attendees to cast ballots on the winner.

Next-generation customers were also top of mind at the summer shows, particularly in light of recent shake-ups such as De Beers’ decision to offer low-priced synthetic diamonds.

“I think we might have witnessed a tipping point when it comes to the Canadian jewellery market. Jewellers should start re-evaluating exactly how they’re going to move their businesses forward,” says Hemdeep Patel, CEO of CreativeCADworks and an exhibitor at CJExpos Toronto. “We’re not at a point where you can disavow lab-grown. Jewellers in Canada need to be extremely aware millennials will be looking at options when they buy diamonds, and this has to be considered as a valid possibility.”

So, does this development spell doom for natural diamonds? Not at all, says Karen Howard, chair of the Canadian Gemmological Association’s (CGA’s) executive committee.

“I believe with the introduction of De Beers into the synthetic diamond market, there will be a reduction in the price of synthetics, but will it destroy the natural diamond market? No,” she says. “Natural diamonds will always be coveted above synthetic, just like a natural ruby is wanted over synthetic ruby.”

However, the diamond market isn’t the only sector facing disruptive shifts. The pace at which the industry moves as a whole is picking up, according to Kingsmen CEO Leonard Isayev.

“Because of the millennial world, unless you have a super long-term strategy, you’re seeing brands come in for maybe six years now instead of 30 years,” he says. “Also, trends where the bestseller would be the best for three to six years are now down to three to six months.”

Change is certainly in the air, and not just when it comes to trends. News of Swatch Group’s departure from Baselworld has much of the industry reconsidering the role of trade shows, with several exhibitors noting dwindling show sizes this summer. However, this may not necessarily translate to dwindling relevance, says Anita Agrawal, CEO of Best Bargains.

“Many of our clients live in smaller cities all over the country. The Canadian shows are where they do their buying for the year, and it’s important they can see the products in person,” she says. “While the shows are getting smaller, many clients find the deals are still best at the local level.”

Patel seconds this, noting trade shows might find a better foothold if they focus on connecting local dealers rather than national.

“A lot of national vendors already have clients in place, so the sales they do at trade shows are sales they likely would have gotten anyway,” he says. “And does it really make a lot of sense to spend upward of $10,000 to be at a show only to generate the exact same sales you would have gotten regardless?”

Rajesh Jain, owner of Samsara Creations, warns success often depends on which shows you attend, with the ever-present problem of cost becoming more prominent at larger events such as Baselworld and JCK Las Vegas.

“I think relatively smaller shows like the Canadian Jewellery Group (CJG) buying show, where the costs are less and the retailers are loyal, are more successful models for the other shows to follow,” he says.

Adom Knadjian, president of B & S (Canada), agrees.

“There are simply too many shows around the world, and personally I don’t see the need for so many for our industry,” he says. “Buying group shows like CJG are focused, private shows, which I believe are relevant and important. There are major international shows that should continue to attract exhibitors and buyers, but regional and other shows should be downsized.”

Indeed, several exhibitors flagged the smaller, more intimate feel of the Canadian summer shows as a hallmark and a strength. Understanding this element and making the most of it is crucial to success, says Hubley.

“The goal is not, ‘I need to write an order!’ You need to start a conversation,” she explains. “You have to walk around and make things happen. You can’t just wait.”

“This is a family relationship market,” adds Isayev. “It’s about really knowing your retailers, what their stores are like, what their salespeople are like, and what’s important to them and their customers.”

When it comes to fostering intimacy, however, Tense Watches’ North American sales manager, Kyle Thomson, says focus must come first. Finding a strong brand identity is the first step to forming a strong customer base.

“Know who you are, who your customers are, and don’t try to be everything to everyone,” he says. “Stick to what you do best and make slight tweaks here and there to keep the interest.”

This kind of consistency is also essential to maintaining a well-stocked store, adds Keith Jack Jewellery’s Todd Wasylyshyn.

“Those jewellers that are methodical about inventory management are the ones absolutely killing it,” he says. “They’re revolving their inventory, they’re making money, and they’re the ones that have the money to invest in the higher-end pieces and go the extra mile.”

Yet, what kind of choices are retailers tending toward when building that inventory? Coloured gemstones, for one, remain popular, says Alex Barcados, co-owner of Paragon Fine Jewellery.

“Blue sapphires are the perennial favourite, and emeralds and rubies continue to be very strong,” he says. “Recently, peach and teal sapphires have seen definite spikes in demand, and we continue to see a strong demand for rose gold, along with styles featuring marquise, pear-shaped, or oval centre stones of various kinds.”

Overall, however, simplicity seems to be the name of the game in both the watch and jewellery industries.

“Thinner bands with a focus on the centre diamond are replacing the recent trend of the halo ring,” says Knadjian.

“For watches, the classic look is still really popular, but you can see it now moving to really small cases, and we’ve even starting to see the big case come back as well,” adds Isayev. “Jewellery-wise, customization is probably one of the biggest things I’ve seen.”

The custom craze has certainly not gone unnoticed, with retailers increasingly turning their attention to technologies that facilitate it, such as computer-aided design (CAD). Patel says this is a necessary step to staying relevant.

“Whether it’s getting a better handle on their digital marketing and how they’re seen on the web or it’s a laser engraving machine, a 3D printer, or CAD, people are realizing they have to adopt whatever available technologies there are,” he says. “They cannot exist in a world where they have no digital footprint. The longevity of your business is now forever connected to how quickly you adopt the jewellery technologies.”

“You have to have a combination of retail and online,” adds Laughlin. “Online shopping is where it is for this generation. You can get your groceries delivered to your doorstep—why not your engagement ring?”

Whatever might be coming down the pipeline in the future, industry veterans are quick to remind us of what’s ultimately driving those big-picture changes: people. As Best Bargains’ Agrawal points out, connection still comes first.

“We’ve established good, close relationships with more than 3500 Canadian buyers, and that has largely come from face-to-face interaction,” she says. “We might be in the business of buying and selling, but without that human touch, the repeat long-term business is not going to happen.”

The question of how to engage the customer and boost your bottom line will likely be on the minds of many retailers as we head into the busy holiday shopping season. For a hint at which styles might be on your customers’ gift lists, keep an eye out for our holiday gift guide.

Source URL: https://www.jewellerybusiness.com/features/a-changing-season-news-and-views-from-the-canadian-summer-shows/

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