Canadian shows: A marketplace of must-haves

by charlene_voisin | October 1, 2013 9:00 am

By Jacquie De Almeida

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John Azadian is a busy man. Between visiting the overseas factories where his collections of Di Donna jewellery are made, and running the operation from his Montreal office, he is sometimes a little short on time.

Which is why when clients asked him to come up with jewellery that retails for less than $100, he turned to independent freelance designers and bought their original sketches, copyrights and all. It was how Azadian was able to launch an exclusive line of gold-plated and synthetic stone jewellery in time for the Canadian jewellery trade shows in August.

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A sketch of a necklace costs about $250, he says. It’s a small price to pay and a tactic that’s not uncommon, considering the time and energy that goes into designing a line of jewellery from scratch. Azadian was careful, though, to pick out designs that complemented his own and could stand up price point-wise to the competition, he tells Jewellery Business from his booth at CJ Expos”“Toronto.

Held in August, the Toronto event kicked off the Canadian summer show season, followed closely by CJ Expos”“Edmonton and Expo Prestige in Montreal. The events gave Canadian retailers their last chance to stock up on the latest styles, including Great Gatsby-type pieces, which could easily be spotted amongst several exhibitors. (For a full report on The Great Gatsby’s influence on jewellery, see the story What’s old is new again: The Great Gatsby effect.)

Sam Mehrotra, president of New York Jewels, says the trend toward art deco pieces, whether originals or inspired by the Roaring Twenties, tends to surge when the economy dips and consumers lean toward classic jewellery.

“People fall back on designs they can easily justify spending money on or can pass down as heirlooms,” he says. “Price points are higher for art deco-type jewellery because of the labour, as well as the quality of stones and the fact they are cut to fit the piece’s shape.”

Other noteworthy trends included micropavé hoops, gemstone-set butterfly and dragonfly brooches, long necklaces sprinkled with faceted gemstones, vermeil jewellery, and silver and cubic zirconia rings. In the bridal category, technology seemed to take a front seat this year, as manufacturers try to carve out a niche in this highly competitive market.

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Rocky Wong, chief executive officer (CEO) of BK Jewellery, says incorporating proprietary laser diamond-cut groves around a centre stone blings up a design without the use of diamonds. They also help boost diamond refraction.

“People wear diamond rings because they want something brilliant,” Wong says. “More brilliance is better.”

The use of pink gold in bridal also looks to be a growing trend. While he says white gold accounts for 70 per cent of the market, Wong adds that 25 per cent of his sales are for blushed-coloured engagement rings and bands.

“Pink gold in bridal won’t surpass white, but it’s definitely increasing. It’s more eye-catching [than yellow gold].”

This season, retailers seemed keen to pick up diamond and gemstone slice jewellery, notes Vince Mongia, co-owner of AVS Group, which exhibited at both CJ Expos”“Edmonton and Expo Prestige.”Slices are getting more traction in Canada because of their bold look,” he says. “All diamonds are unique, but with slices, you’re never going to get another one just like it. They are one-of-a-kind, and the jewellery is designed around the stone, rather than the stone being cut to the product.”

Anita Agrawal of Jewels by Anita says consumers are not shying away from buying jewellery. However, they are also being very careful about their purchases, which means retailers are becoming more aware of how they can cater to their clients.

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“Ten years ago, you wouldn’t think to have your customer’s cell phone number, but now you do,” she explains. “I’ve had people text images from my booth. You’re building on that relationship. Not only is this an instant sale, but you can upsell your customer by sending them a photo of a matching piece.”

Mary Milan, vice-president of sales and marketing for PAJ Canada ELLE, says the company is putting a slightly different spin on its ‘gift with purchase’ program. Rather than a makeup or tote bag, ELLE is gifting a specially designed promotional pendant retailing for $79 with the sale of $150 or more. It’s an incentive that offers consumers more bang for their buck and goes a long way to building brand loyalty.

“We found a consumer may hesitate at the $150 price point, but this way, they’re getting something extra and can justify it,” Milan explains. “We’re hoping this will help people buy the more expensive pieces, plus they get the extra value of the gift.”

Giving back was at the heart of a new national design competition co-sponsored by Beverly Hills Jewellers. The Giovanni Vaccaro Family Scholarship will bestow a $3000 grant to a student enrolled in a Canadian college offering a jewellery program, while the school will receive a $1000 gift. Attendees at next year’s CJ Expos Edmonton and Toronto will vote on the best student design with a retail value of no more than $1500. The winner will be flown to Toronto for the 2014 Jewellers Vigilance Canada Ball where the winning design will be presented.

Vaccaro, co-owner of Beverly Hills Jewellers, says there was no question he wanted to give back, particularly with so much jewellery manufacturing happening overseas and local graduates having a hard time breaking into the industry.

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“A scholarship is a motivator to help students present designs and also a platform in which to present a piece they feel very passionate about,” he says.

Vaccaro knows a thing or two about the difficulties of getting a start in the jewellery industry. Fresh from his studies at George Brown, he was willing to work as a stone setter for less than minimum wage at A&A Jewellers to gain experience. His enthusiasm got him the job at the going rate.

“And now I want to help a young person get their foot in the door,” he adds.

Greg Merrall, co-ordinator of Georgian College’s jewellery program, says graduates in general tend to have a difficult time breaking into the industry. Although they are skilled in their respective disciplines, many are unprepared for the demands imposed by commercial manufacturers.

“They’re not used to designing to price points,” Merrall says. “They’re used to designing one-of-a-kind pieces that maybe don’t have a particular market. If all the programs offered students set projects with defined parameters, such as the piece needs to retail for less than $100 or the gold can’t weigh more than 5 gr., that would help because it gives them an idea of what would be expected of them.”

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Away from the chatter of stone sizes and price points, security experts like Simon Thomas, president of CJB Insurance Services, offered retailers advice on how to stay safe. He says smash and grabs—also known as the ‘three-minute’ burglary—are the biggest security concern for jewellers at the moment.

Although this particular type of crime happens very quickly and usually without warning, Thomas recommends the use of laminated showcases to slow thieves down while police are en route. Another is to display high-end jewellery or watches among several showcases, rather than having a lot of it in one spot where it can be easily scooped up.

“The idea is to make it so that thieves take as long as possible in the store,” Thomas explains. “Time is not their friend.”

In addition to smash and grabs, South American gangs continue to be a threat, particularly to travelling salesmen. They’ve been known to puncture tires or radiators to get jewellers to stop, but a GPS tracking device placed under a wheel well or some other place on the car where it can’t be seen is not unheard of.

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“They will follow you for weeks at a time,” Thomas says. “They have three or four cars to follow a jeweller at any given time and they are sophisticated.

“Complacency is the kiss of death in the jewellery industry. When you think you know it all and have been doing it for so long, that’s when you get hit. You have to constantly change the method in which you operate. People forget that what they’re carrying is a high-value commodity and thieves will do desperate things to get their hands on it. You can’t just assume you have a flat tire. You have to think the worst-case scenario and protect yourself, and that goes for retailers, travelling salesmen, and really anyone in the jewellery business.”

The criminal element is active at varying levels within the jewellery industry, which is why Canada implemented anti-money laundering legislation in 2009. However, transitioning Canada’s dealers of precious metals and stones (DPMSs) into compliance has been challenging, says J. David Ritter, president and chief executive officer (CEO) of the Canadian Jewellers Association (CJA).

Creating a compliance regime as set out by Financial Transactions Reports Analysis Centre of Canada (FINTRAC) is the main stumbling block for Canadian jewellers.

“Some jewellers are even getting their accountants to do it for them because they don’t understand the process,” says Ritter, adding the association has met several times with government representatives to vet its anti-money laundering kit to simplify the process.

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Although the regulations have been in place for four years, confusion lingers, whether it be due to a language barrier or not fully understanding the sometimes complex regulations. Ritter says 90 per cent of DPMSs who submit compliance regimes are failing to meet requirements for one reason or another.

In addition to being time-consuming, collecting identification from longtime clients is a significant hurdle for retailers, Ritter notes.

“When a retailer has a relationship with a client and then all of a sudden asks for a driver’s licence, additional ID, and other background information, jewellers see it as a little intrusive in terms of overstepping that personal relationship they’ve developed over the years.”

Ritter says he recently met with FINTRAC to discuss creating templates for small and medium-size retailers.

“Developing a compliance regime will be an ongoing process, and FINTRAC has mentioned it will be fining people who are not in compliance,” he adds. “That’s putting a little bit of fear into the marketplace”¦ The CJA is continuing to have conversations with FINTRAC to work for our members and the Canadian industry overall to make the process less burdensome.”

Phyllis Richard, executive director of Jewellers Vigilance Canada (JVC), admits the regulations are difficult to understand.

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“However, things are moving in the right direction in terms of industry fulfilling its obligations,” she says. “If it were simplified, however, it would be so much easier for industry to comply and FINTRAC would be getting the intelligence it needs. We’re the only reporting entity that isn’t regulated, which makes us very different from others. I don’t think FINTRAC recognized how different we could be, but it is working with us.”

Keeping up with industry developments spurred Jewellers Vigilance Canada to review the Canadian Guidelines with Respect to the Sale and Marketing of Diamonds, Gemstones and Pearls, Edition 2009. After putting out a call in August to Canadian jewellers for their input on revisions pertaining to the use of gemstone nomenclature, JVC’s Gemstone Guidelines Revision Committee reviewed the suggestions, while also considering other industry documents, such as CIBJO’s Blue Book as a basis for the updates.

Richard says that while the Blue Book is an industry-wide reference point, having Canadian-specific guidelines help ensure retailers are in compliance with Canadian laws and regulations regarding deceptive marketing practices and related issues.

“The world changes constantly regarding enhancements and new technologies, and the guidelines have to keep up with those changes so that Canadian jewellers present products in an ethical way,” Richard said. “We also want to make sure we’re in sync with the rest of the world.”

With the busiest time of the year fast approaching, Canadian jewellers are hoping shoppers are in sync with the holiday spirit. Here’s to them getting that in their stockings.

Source URL: https://www.jewellerybusiness.com/features/canadian-shows-a-marketplace-of-must-haves/

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