At the recent American Gem Society Conclave, speaker Peter Sheahan gave an excellent presentation about how all industries are dealing with rapid change. “Don’t build your future on the beliefs of the past,” he exhorted. “Just because a certain kind of marketing worked for the 30 years you’ve been in business, doesn’t mean anything for tomorrow. When a historical business practice meets the future, the future always wins.”
I’m often asked where the industry is going. While life always holds surprises, I have long felt that some clear trends are presenting themselves. To wit:
THE PAST
Diamond engagement rings
THE FUTURE
All kinds of engagement rings
THE PAST
Natural diamonds
THE FUTURE
Man-made and natural diamonds
THE PAST
Consumers buy bridal jewelry because they “have to.”
THE FUTURE
Consumers buy jewelry because we have sold it to them.
[Just got this quote in my inbox: “Millennials just aren’t buying the traditional jewelry marketing paradigm that worked for previous generations. They need messages that are relevant to their lifestyles, and a generation that is delaying, even forgoing, marriage in growing numbers doesn’t necessarily care about researching the 4Cs or spending three months’ salary on a chunk of pressurized charcoal.” —Pam Danziger, president of Unity Marketing.]
THE PAST
A trade that believes that NGO and government interest will eventually go away. (Yes, many people still think this.)
THE FUTURE
Industry works with NGOs and governments on relevant issues.
THE PAST
“Ethical trading, production, and all the idealistic proclamations coming forth from the organizations and large companies looking to profit from the ‘ethical trade’ fad give us the chills.” —Tanzania Mineral Dealers Association
THE FUTURE
Industry sees ethical consumerism as here to stay and an opportunity
THE PAST
Convoluted, opaque supply chains and businesses
THE FUTURE
Transparent supply chains and businesses
THE PAST
Jewelry is made only to look pretty.
THE FUTURE
Jewelry looks pretty, but some also has use.
THE PAST
Deals sealed by a handshake
THE FUTURE
Deals sealed by a lawyer
THE PAST
Subjective gem grading
THE FUTURE
THE PAST
An industry dominated by the U.S. and Asian markets
THE FUTURE
An industry with many markets
THE PAST
Most jewelry is generic.
THE FUTURE
Most jewelry is branded.
THE PAST
Channel conflict
THE FUTURE
Multi-channel
THE PAST
A fine jewelry store would never sell a fashion piece.
THE FUTURE
If the consumer wants it, they sell it.
THE PAST
Customers shop when stores are ready.
THE FUTURE
Stores sell when customers are ready.
THE PAST
The industry debates what consumers want.
THE FUTURE
The industry knows what consumers want.
Now of course, just about all of what I’ve labeled “the past” is still with us. And while I may be wrong, I’m willing to bet, over the next decade, the mindset toward many of these things will change.
This industry has always been something of an island, with its own rules, customs, and demarcations. But that is no longer acceptable, and the smartest people in our business are embracing technology and the wider world.
Right now, there’s some kicking and screaming, and some of it is embarrassing. The future clealry holds perils for a tradition-bound business like ours. But it also presents tremendous opportunities for those who are willing to break out of the familiar patterns, focus on the consumer like never before, and work toward making this a better industry. Because, in the end, there is no use fighting these things. The future always wins.
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