The Top Stories of 2011 U.S. Jewelry
By www.jewellerynetasia.com
This is my last column for 2011 and it’s been quite a ride. It’s been a year of tumultuous change in the jewellery industry with few real trends catching on and with an economy teetering between another recession and steady growth. So in no particular order here are the top jewellery and retail stories from the past year:
Consumer confidence improves at year’s end. The latest news (as of Tuesday) is that the Consumer Confidence Index (perhaps the most recognized monthly survey of consumer sentiment in the U.S.) improved by 24 points in the last two months of the year. This is after several months of losses. The Index now stands at 64.5 (1985=100), which puts it back to levels it last saw in April. “While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes,” said Lynn Franco, director of The Conference Board Consumer Research Center.
Conflict diamonds, the Kimberley Process and Zimbabwe. The notoriously secretive diamond industry was pulled out of its protective shell during the past year and the results haven’t been pretty. A near collapse of the Kimberley Process, which certified diamonds as not being sourced with human rights abuses, was averted when the organization agreed to allow diamonds to be sourced from Marange mine in Zimbabwe, a place of past human rights abuses, including murders, beatings, internal corruption and virtual slave labour. Abuses that are allege to be continuing unabated. The issue isn’t settled, as many organizations refuse to trade in these diamonds—most notably the Rapaport Diamond Trading Network, whose leader, Martin Rapaport, said he will expel any member caught dealing in these diamonds. In addition, NGO, Global Witness, left says the Kimberley Process in protest for what it calls a failure to break the link between diamond sales and violence.
A Diamond Dynasty Sells Out. The Oppenheimer family, which has had an ownership stake and has managed De Beers for more than 80 years, sent shockwaves through the diamond and jewellery industries when it announced it was selling its remaining 40-percent share of the company to its main partner, Anglo American. What happens next is anyone’s guess but expect a more professionally managed organization, for better or worse.
JCK Las Vegas Moves to New Venue and Improves Attendance. The biggest trade fair in the U.S. moved from the Venetian to Mandalay Bay and the attendance and reviews by attendees were largely encouraging. JCK Events, which owns and operates JCK Las Vegas, Luxury at JCK and Swiss Watch at JCK, all the Mandalay Bay, reported a 16 percent increase with more than 20,000 buyers representing every retail and distribution channel.
The Switch to Digital and Social Platforms and the Industry’s Inability to Adapt. The world has largely turned to digital mediums for their consumer information, to purchase products and to share their thoughts about these products and brands. Most industries have learned how to harness the power of the Internet, social media and wireless mediums to build their brand image and increase sales. But according to a survey by L2, a membership-based consultancy that bills itself as a “think tank for digital innovation, the luxury jewellery and watch industries are lagging far behind nearly all others in using these digital platforms to attract and sell to consumers. Nearly two-third of the jewellery and watch brands surveyed were classified as “Challenged” or “Feeble,” based on the findings of the Digital IQ Index: Watches & Jewellery. Only two brands, Tiffany & Co. and Swarovski, achieved what the survey terms as “Genius” and “Gifted” classifications, (respectively).
The Elizabeth Taylor Auction. It’s almost impossible to talk about the highlights of 2011 without including the most valuable sale of jewellery in auction history—the two-day jewellery sale along (December 13-14) fetched more than $137.2 million. The first night alone set seven world auction records. I attended the jewellery sale and watched prices fly past estimates and reach stratospheric heights. It was Taylor who pretty much created the economy for celebrity endorsements and it was her love of jewellery and her connection with people that drove the prices to levels no one could have imagined.
And on that note, despite the difficult economic conditions in the U.S., it appears that jewellery still has a place in the hearts and pockets of many in the U.S. As the economy recovers, people will again be able to fully feed that passion.
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