Custom-designed jewellery is one category that appears to be doing well, Wasylyshyn said, particularly among millennials who are looking for products beyond what they can find in the showcase. The trick is to ensure the process runs smoothly from start to finish.
“It depends on the jeweller and their expertise,” Wasylyshyn said. “If a junior sales associate tries to sell a custom piece and creates the wrong expectations for the customer and the job is a disaster, it hurts the business. [Success with custom design] depends on the key people being able to speak that language.”
Gemstone-setting instructor Gerry Lewy, owner of Gemz Consulting Services, said he’s seen an increase in established jewellers looking to bring this specialty in-house, allowing them to have better oversight on that part of the custom-design process.
“Retailers don’t want to ship a piece all over the country or take it next door,” he said. “They also want to be able to do their own repairs.”
And while custom work may be helping to make up for the shortfall at the retail level, offering store employees incentives to highlight one line over another can go a long way to having a good year. Abraham Konialian, CEO of Cadoryn, grew up watching his parents run their jewellery stores. He said he understands the importance of getting staff fired up about a line. That’s why he developed a sales incentive for store employees that may help direct consumers to his line over a competitor’s. When a staff member sells five pieces from Konialian’s line, he or she receives a free ring.
“When they sell something, they log into our system and indicate what they sold,” said Konialian, whose company is also exhibiting at Expo Prestige. “A store’s success all comes down to their staff because owners aren’t always on the floor. When it comes to the staff, they need to be rewarded.”
While the jewellery category in general is struggling, the watch industry appears to be doing no better. According to the Federation of the Swiss Watch Industry (FH), exports in June fell faster than at any other time in the first half of the year and recorded a difference of 16.1 per cent from June 2015. Precious metal watches were the worst performers, plummeting 31.4 per cent due to a particularly weak Hong Kong market.
