Zeghani by Simon: A new player with brand-name backing
by charlene_voisin | June 1, 2012 9:00 am
By Jacquie De Almeida
What do you do when you have an idea to start a new jewellery business? If you’re Zaven Ghanimian and his brother, Henry, looking to your father for guidance is a no-brainer, particularly when dad happens to be Simon Ghanimian, the man behind Simon G.
His advice?
“That’s a tough question,” admits Zaven, or Zee as most people call him. “He’s given us so much. But I’d have to say sticking to what we do best is probably number one. It’s so easy to go off on a tangent or an area of design we think is really unique, but might be too trendy or have a limited lifespan. Our core items have kept us where we are.”
Where they are is four years into a venture known as Zeghani by Simon, a company the brothers started with their father. (Its name is a convergence of sorts, combining the first two letters of Zaven’s nickname and the first five of their family name. The use of ‘Simon’ is a nod to the brand’s pedigree.)
Their goal was to cater to a niche market by creating a designer boutique brand at an affordable price. For that, the company looked to its use of materials when producing its lines of bridal and fashion jewellery. While many manufacturers (including Simon G) focus on 18-karat gold and platinum engagement rings and wedding bands, Zeghani by Simon designs with 14-karat gold and platinum’s sister metal, palladium. It’s a combination allowing retailers the ability to meet the needs of a bridal customer who isn’t interested in breaking the bank, but is still out to impress.
“We had people approach us asking for an affordable piece of jewellery, an engagement ring specifically, that fit in the $2500 to $3500 range, including a centre stone,” recalls Zaven, the company’s chief executive officer (CEO), designer, and head of marketing. “For Simon G, that was out of the question because most of our semi-mounts were that price. We felt this price range was a sector of the market that is always looked down upon because of the [lesser] quality out there. We knew we could make something to fit that range with better quality and a brand name to support it.”
Share and share alike
Although a young company, it has access to two decades’ of experience. But a red-carpet name like Simon G backing up the venture is only part of the story. The other part is the fact the two companies share all the expenses, 20 staff members in Los Angeles, and manufacturing resources overseas. Not only does this help keep product costs down, but it also means the craftsmanship is the same, regardless of which company’s jewellery is coming off the bench.
With 450 independents on both sides of the border carrying Zeghani by Simon—75 of which are in Canada—the focus remains on artistry and technique to meet consumer expectations when it comes to feeling they’ve gotten the most bang for their buck. All its jewellery—designed by a team of five, including Simon—is cast in multiple pieces and assembled by hand, allowing for easier access to areas that might not otherwise be reachable for cleaning and finishing.
Henry, the company’s vice-president, oversees the production and product development end of things. With every piece of jewellery that passes through the 10 quality-control steps before leaving the facility, he is reminded of his father’s dedication to ensuring even the smallest of design details are as they should be.
“We try to give each piece that ‘Zeghani’ look across the board,” says Henry, referring to the company’s fashion line. Standard cuts and calibrated sizes steer clear of the collection’s big, bold gemstones in equally bold colours.
Design aspects like these are appreciated by consumers, the brothers say, even the ones without a set budget in mind. Disposable income, these days, is not an indication the client will not seek out the most value for their money, explains Zaven, a graduate gemmologist who grew up learning the art of making jewellery from his father. The challenge is effectively communicating the difference between a good-quality piece of jewellery and a no-name bargain deal whose manufacturing may be questionable.
Getting that message across, of course, partly comes down to a retailer conveying the difference to a consumer face to face. While Zaven acknowledges a brand name can help lure potential clients to the counter, he is also quick to praise the power of social media for creating a buzz.
A quick scan of Zeghani by Simon’s Facebook page reveals nearly 31,000 ‘likes’ and daily postings of the latest designs meant to entice consumers and create a dialogue about what works and what doesn’t. A recent contest aimed at growing their fan base had users getting a chance to win an amethyst pendant when they ‘liked’ the page and shared it. Â
“We try to engage the fans as much as we can,” Zaven says. “We try to get their insight, their approval. We like to challenge their minds a little bit and ask them questions to make them think about certain subjects or issues. Â
“Social media gives us a direct connection with someone who is interested in a piece of jewellery we make. When we do a trunk show, we announce it on Facebook and it drives people to retailers.”
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.
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