by charlene_voisin | August 1, 2013 9:00 am
By Jacquie De Almeida
Chameleons are known for their ability to change colour.
So it should come as no surprise that Canadian manufacturer—Kameleon Jewellery—would venture into the yellow gold market as a complement to its sterling silver standard.
An exhibitor at JCK Las Vegas, Kameleon showcased a new line of 14-karat yellow gold JewelPops. It’s a reversal of the trend in recent years of companies turning to silver to satisfy the need for lower price points among budget-conscious consumers.
“We decided to do this because we have some customers that are interested in our line, but mainly sell gold jewellery in their stores,” said Allison Smith, the company’s media and communications director.
Lower gold prices are a welcome relief. A year ago, the metal hovered around $1635 US per ounce compared to $1250 at press time. Every little bit helps, exhibitors say, as they gear up for what looks to be a busy holiday shopping season, if official numbers are any indication. In May, the U.S. Conference Board reported consumer confidence was at a five-year high on the strength of the housing rebound. A healthy happy appetite for jewellery in the United States bodes well for the rest of the industry.
As the biggest jewellery buying event in North America, the Vegas shows appeared to confirm an improving consumer landscape, particularly for high-end goods. Busy aisles and a flurry of activity in exhibitor booths signalled a positive outlook, with everything from black rhodium to gemstone slices to two-tone rose and white gold jewellery enticing retailers to stock up. Brazilian druzy, hammered and matte finishes, and stones like opal also made their presence known.
U.S. designer Pamela Froman turned to Australian boulder opal for her latest collection. The combination of the ironstone matrix against the opal’s play of colour and Paraiba tourmaline in a two-finger ring creates a one-of-a-kind feel.
“Consumers are looking for something different,” said Froman from her booth at Couture. “They don’t want what you can find in every store. They want to be their own person.”
Adam Graham, chief executive officer of Erica Courtney, Inc., says designing around unique and rare gemstones is a point of differentiation. Price shopping is a significant concern among retailers, he says, as consumers make the rounds to get the best deal. Creating one-of-a-kind pieces avoids the pricing battle and helps turn the curious into a collector.
Designing jewellery that invites consumer loyalty by offering the ability to mix and match across collections was also a noteworthy trend. Canadian designer Hera Arkarakas is careful to create pieces that have continuity, whether it is in the finish or the use of the metal du jour, which this season happens to be pink gold.
“I love to design jewellery that works with our existing lines,” she tells Jewellery Business. “I want people to be able to wear all the pieces interchangeably.”
The self-purchasing woman looking for daring and edgy designs that can be worn just as easily during the day as they can when the sun goes down continues to be the key demographic for many designers, says Arkarakas. Attention to design detail is critical, she stresses.
“I believe the back of a piece of jewellery should look as pretty as the front,” Arkarakas says. “Pendants move as we move. They flip and the backside should be interesting. To me, having a finished back means the piece has been designed well. It also gives me a place to put my logo and create brand awareness, which is important.”
Carolyn Thamkul, executive vice-president of Belle Étoile, says jewellery should complement all facets of a woman’s personality.
“You can’t tie a woman down to one simple emotion,” Thamkul explains. “She’s many things, which is why jewellery is a form of expression and of really showcasing how she feels. Today, she’s fun and flirty, tomorrow, she’s classy and vintage. We do that in our apparel and in our handbags and accessories, but jewellery is what really shines because of its materials and colours.”
The use of vermeil was also more apparent, as it is being more widely accepted as a substitute for gold, says designer Frederic Duclos. (Vermeil comprises gold plating over sterling silver, unlike traditional gold-plate that goes over base metals like brass or copper.)
“Today, vermeil jewellery retails in much higher price groups,” Duclos said. “It’s now mostly reserved for fine jewellery stores and if they don’t carry it, they will miss sales because other retailers like gift stores don’t carry it anymore [and we’ve seen demand for it.]”
Le Vian’s annual Red Carpet Revue put 2014 trends in the spotlight with chocolate quartz and ‘cush’n’ pillow being named gemstone and shape of the year, respectively. All eyes were on company CEO Eddie Le Vian as he forecast swirls, knots, and florets will help satisfy fashionistas everywhere. ‘Baby blues’ like aquamarine and blue topaz, ’50 shades of green’ ranging from tsavorite to tourmaline to diamonds, and the ‘fiery reds’ of rhodolite and tangerine fire opal are also expected to complement catwalk crazes.
While the overwhelming majority of jewellery is designed for women, the men’s market is still considered a potentially lucrative category. Martin Mills, business development manager at First Jewelry, says most jewellery for men is designed in alternative metals like tungsten, stainless steel, or cobalt to hike up the ‘cool’ factor. The gap for price point-sensitive silver, diamond, and gemstone pieces presented an interesting proposition for the company, and in turn, retailers.
“When you’re going out, beautiful cufflinks are an heirloom and you can keep them in the family,” Mills said. “Retailers need to explain they are not an everyday piece.”
Taking the guesswork out of what styles to carry and how to display them are at the heart of Stuller, Inc.’s marketing initiative, the 3 Cs—choose, change, and create.
A newly introduced snap-in-place ring component system that has yet to be named lets consumers select various components and fit them together to form a design that can be manufactured.
“It’s a selling tool for retailers that allows a customer to physically pick a shank, halo, and head,” explains Ashley Brown, Stuller’s executive director, marketing and public relations.
 She says the company’s prototype systems are also coming on strong, helping retailers to direct their resources into other aspects of their business.
“A lot of jewellers have always been a little scared of prototypes, but now they have to have them,” Brown said. “Why have millions of dollars of inventory in your case when you don’t have to.”
The Vegas shows brought out many familiar faces and some that have made themselves over to recapture market share. Considered by some as the original charm bracelet company, Nomination Italy says branching out into new design directions has helped build on its previous following.
Maintaining its production in Sesto Fiorentino, Italy, is also striking a chord with consumers keen on the ‘Made in Italy’ brand, as is tweaking its collections to appeal to certain markets. Although 18-karat gold is the standard in Italy and most parts of Europe, the United States—which is the biggest market for Italian manufacturers—currently favours silver.
“This market demands that,” says Elda Fistani, the company’s chief operating officer (COO). “We are adding to our portfolio and adapting to the needs of the North American market.”
The ‘Made in Italy’ brand is also a drawing card for retailers looking for lines to complement bigger brands they may carry, says Sean Polan, co-owner of Sothil, Nomination Italy’s Canadian distributor. His advice is for store owners to outfit staff with jewellery, rather than have it sitting in a case.
Canadian designer Anne Sportun says geo-targeting on Facebook is one tactic she is using to help drive a specific demographic with an interest in designer jewellery to her dealers.
“This has been surprising to our resellers because we’re creating new customers for them,” Sportun says. “They have people coming in they don’t know because we’re driving them to the stores.”
Although determining the effect of social media on sales is difficult, Thamkul says she knows Belle Étoile’s efforts on Facebook, Twitter, and Pinterest help generate brand interest. Tracking clicks from a geographical standpoint and presenting data to prospective clients also helps in growing a dealership base.
“There’s no direct link between social media to sales, but we feel there’s some connection with the fan base.”
While some companies focus on creating a brand following, Rio Tinto Diamonds is continuing its efforts to highlight the diamond stories behind the designs.
With rumours of an initial public offering swirling, the mining company pushed onward with its ‘Diamonds with a Story’ initiative, a marketing campaign that aims to go beyond the four Cs to provide consumers with the human, geological, and cultural histories behind diamonds.
Bruno Sané, general manager of marketing for Rio Tinto Diamonds, introduced the initiative to invited media at the company’s booth, and emphasized the preference among consumers to know the stories behind diamonds.
“We believe we need to decommoditize the diamond jewellery industry,” Sané said.
“Thanks to our research over the last 12 months in the United States, India, and China, we have four main drivers to why consumers buy diamonds. We have developed selling concepts to inspire retailers. We are a mining company that is looking for value through ideas to re-energize the market.”
In addition to mines in Australia, Zimbabwe, and a project in India, Rio Tinto Diamonds holds a 60 per cent interest in Canada’s Diavik Diamond Mine in the Northwest Territories.
The results of the research helped develop the campaign’s four stories on which the designers’ collections are based. They are:
Toronto-based Shelly Purdy was one of eight designers—and the only Canadian—invited to Rio Tinto’s booth to showcase jewellery from her ‘Royals’ collection, which uses diamonds from the Great White North.
She says the conflict-free status of Canadian diamonds in particular appeals to her clients.
“‘Shaped by Origin’ is all about where diamonds are mined and I’ve been using Canadian diamond centre stones exclusively since they first appeared on the market,” she said.
“Being a proud Canadian is only one of the reasons I love these stones. The fact they are mined under the strictest rules of ethical and environmental sourcing and come with certification that can be tracked creates added value to my Canadian jewellery collections.”
At the end of the four-day event, Reed Exhibitions—JCK’s organizer—reported a five per cent increase in attendance over last year’s figures, another indication that retailers are optimistic about the rest of the year.
Sounds like cash registers will be ringing this holiday season.
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