Metals showdown
Materials and labour costs are the two main components to pricing jewellery, and one of the keys to edging out the competition. It’s a tactic that is the basis for Zeghani by Simon’s bridal line, which comprises 14-karat gold and palladium designs, as opposed to the more costly standards, 18-karat gold or platinum.
While it is more well known in jewellery manufacturing circles than five to 10 years ago, palladium remains a bit of a mystery among consumers who are familiar with platinum, which these days, costs more than twice as much. Offering palladium is one option that allows a consumer to wear a platinum group metal without experiencing sticker shock.
“If you’re dealing with a consumer who is set on platinum but can’t afford it, they should be educated about palladium because of the advantages it has,” says Zaven. “It works right around the 14-karat gold price range, so it fits right into our category and it’s unique. We want to set ourselves apart in different ways and offering palladium is one of them.”
The decision to enter the palladium market was not an easy one, says Henry, given the difficulties of casting it without major porosity problems. The company even brought in palladium experts and chemists to perfect their technique.
Although the brothers note there hasn’t been a significant demand for palladium jewellery in Canada, and only a slight increase in the number of requests from U.S. retailers in the face of a tougher economic situation, they feel it’s an alternative that has its place in the bridal market.
“It’s a service we provide, but I have a feeling in a few more years, as more people know about it, it will become more mainstream,” adds Henry, who holds a graduate jeweller diploma from the Gemological Institute of America (GIA).
Part of the equation rests with educating consumers about the fact palladium is a pure metal that is naturally white and free of nickel. It’s also important the retailer is familiar with the metal and how to work with it if they are re-sizing a ring.
“14-karat gold still takes the market because it’s been around for so long,” Zaven says. “Palladium has been around for a long time, too, but gold is a default for consumers. Platinum struggles with the same issue in some cultures or traditions. As noble, pure, and eternal as it is, people still ask for 18-karat or 14-karat gold not knowing about the bigger metal out there.”
What’s next for Zeghani by Simon? The brothers are mum about a new line launching at JCK Las Vegas this month, but a collection of men’s wedding bands is a strong possibility down the road. Like most business decisions, the challenge is to determine how to remain profitable when introducing a new element into the equation. In this case, it’s learning to work with price point-darlings, alternative metals.
“I personally love the men’s market, but it’s very difficult to penetrate,” Zaven notes. “It’s also an area we’re unfamiliar with from a manufacturing point of view. We’ve never filed stainless steel or tried to set diamonds in it. But I know there’s room in the men’s bridal industry for a company like Zeghani by Simon.” Â
A touch of tradition
So what values drive the business? Celebrating its Armenian background for one. The community’s long-standing tradition of making jewellery is infused into the Zeghani lines and given a more modern look.
“We’re a small group of people and creating an awareness of my ancestors’ customs that lives on means a lot to me personally,” Zaven explains. “Over the years, Armenians have developed certain ways of making jewellery and styles that have been passed down to me.”
He will also have a hand in inspiring the next generation of Armenian designers as president of the recently established Young Armenian Jewelers Association (YAJA). The group aims to mentor up-and-coming Armenian jewellers by speaking with students at various design schools and creating awareness through media and trade shows.
“We want to show young designers there are a lot of ways they can be creative and they can be themselves,” he adds.
Like the basis for its founding, backing up members of its family is another value the company embraces.
“Once you become a Zeghani by Simon retailer, you basically join our family,” Zaven says. “That’s how we see our retailers, and we support them in every way we can.”
There’s nothing quite like being part of a big family.
