Shanu Singh Guliani

Are Jeweler’s All Talk and No Action…With Only a Few Exceptions?
May 21, 2007

We all agree that independents need to help change the image of the jewelry industry—together. Dwindling profit margins, having to carry big brand names, continuous sales by chain stores, customers thinking jewelry is overpriced, and lack of marketing the emotional significance jewelry has to offer has added to the number of declining jewelry stores. Did you know, according to JBT, America lost a net of 765 specialty jewelers with 1,016 jewelers closing their doors, which was only offset by 251 retailers entering the trade?

I’ve tried to Call to Action all jewelers and no one seemed to respond.

Mr. John Jensen and the Leading Jeweler’s Guild aren’t all talk. They understood the dwindling margins from keeping entirely all brands. They were unhappy having their stores being added as just a tagline instead of being recognized as leading independents and professionals in their industry. And at the same time, they realized the power of the luxury item they sold and its emotional appeal to their customers.

“Approximately 30 jewelers representing 153 stores have been doing what you’ve been calling for, for over four decades,” John Jensen. Together this small group of independent jewelers met to discuss a trend toward large national chain stores... and the threat it held to personal service and integrity which was central to the way they did business. The way to grow in the face of change, they agreed, was to band together. Together they created Love-Story.

1. These jewelers recognized the need for independents to band together.
2. They decided not only would it take time but also it would take money and to take more money from their already existing stores was tough.
3. To keep moving forth they manufactured the line Love-Story, a bridal line, sold and manufactured exclusively by these jewelers.
4. The line contributed to the success of their stores. Together they used these monies to create a need, more like a demand, for diamonds with huge amounts of television, radio, and snail mail marketing.

As I was talking to John, I couldn’t help but be in awe of their successful venture. I told him, one day, I hope to create an organization of independents that add huge amounts of marketing power that harps on the emotional significance jewelry has to offer.

John made me realize not only will this take time but money and no one person will work for free forever (keeping putting money in but not being able to see the effects in your own store). From our talk, I realized this kind off organization couldn’t stand to have money only be put in but money will have to be made to be able to keep putting it up. DPS was created after De Beers had substantial monies made from mining to put into huge marketing campaigns. Brands that market are making enough money to do it because they have a hot seller on their hands. A Catch 22 huh? Have to market it to sell it, but if you don’t market it enough it might not sell enough?

So, what if a number of independents got together like the Leading Jeweler’s Guild did and manufactured a line that pulled enough money to put back into marketing? Bridal is a leading line but sterling is more inexpensive to make and hot seller in the market? Why not band together—market diamonds, colored stones, and jewelry and another alternative could be to make money from creating a magazine to be able to put back into marketing? So…what about creating a magazine…we have trade magazines but we don’t have a jewelry magazine that consumers buy. Jewelers could easily offer some wardrobe and accessory tips with the hottest jewelry styles? A jeweler has to double up as a stylist too...and in my mind, consumers should know jewelry doesn’t compliment an outfit instead jewelry makes an outfit. Why pick out an outfit and then figure out what jewelry goes with it? Shouldn’t it be what kind of colors suit my mood today, what piece of jewelry should I wear—once you decide then you match an outfit to that?

For an organization to successfully market diamonds, do they have to just be rich? Be a good samaritan and willing to put up endless amounts of money and time? Does banding together mean creating something that allows the organization to put money back in to it?

Posted by Shanu Singh Guliani on May 21, 2007 | Comments (0)