Gone is the era of conspicuous consumption and, in its place, an appetite for value, environmental conservatism, and products that are made in the U.S.A. Companies that specialize in closeouts are increasingly finding themselves on the supply end of this demand. Traditionally, closeout companies take existing inventory and reallocate it to a different demographic at reduced prices. Now these companies are being recognized for being green or recycling natural resources that have already been mined. But companies that go one step further are also reaping the rewards.
Reorderable pieces—simple hoops, studs, and bracelets that are easy to manufacture using existing stones—are finding new life at retail. Father-and-son duo Yogesh and Shail Madhvani, owners of SimplexDiam, a 30-year-old New York City–based closeout jewelry company, have been producing reorderable pieces for several years now. “The new lines that we’re making take advantage of manufacturing right here in New York City,” says Shail.
Retailers are finding the most successful deals with closeout companies that buy directly from consumer resources and then manufacture the goods themselves. Knocking out the middlemen in the supply chain represents significant savings for the client. Even engagement rings that use recycled stones have found a robust market in the United States. Depending upon the piece, goods can be 30 to 60 percent less expensive (wholesale) than those coming down the traditional supply chain. In the end, that is a significant value proposition for retailers and a win-win for consumers.