The holiday season has just kicked off and the industry is hoping for a recovery in diamond and jewelry sales. Meyer Assoulin, Owner and Manager of Maurice Fine Jewelry, shares his thoughts and hopes for the ongoing holiday season
Q. Some forecasters predict a major recovery, while others forecast flat sales for the holiday season. What are your thoughts?
A. No one can predict the future. However, being that the holiday season is almost upon us, it doesn't appear likely that the industry will rack up sales sufficient to be able to call it a "successful season."
Having said that, I do believe that much of the hype (both in the media and by those professional forecasters)
On the other hand, people will always buy gifts for themselves and for those that they love.
While the holiday season is upon us, and while sales may be flat, I believe they will be sufficient to sustain the jewelry industry for another year.
Q. Some experts believe that consumers of luxury jewelry have changed during the recession and they will be more cautious about how they spend discretionary funds in the future.
Do you believe this to be true? If so, how can the luxury jewelry market reawaken consumer appetites?
A. The consumers of luxury jewelry have been hard-hit on a few different fronts. Of course they are feeling the effects of the economic downturn (which is more of a crisis than a downturn). Additionally, these consumers are being barraged by the negative reports that appear on a daily basis in the papers and the fear of what is being forecasted has seeped into their psyche.
I believe that, in the end, level-headedness will prevail as people come to realize that life has its ups and downs. Consumers will realize that this period will pass and that they will carry on in a new way - adjusting for whatever becomes of their lifestyle. Jewelry will always have a place in all of our lives, much the same as luxury clothing and cars.
The luxury jewelry industry has, in fact, been reacting very positively so far. We have seen some very creative and ingenious ways of designing jewelry with materials that are less expensive than diamonds. Colored semi-precious stones such as Smokey quartz, morganite, and topaz (to name a few) are making appearances in many of the high-end jewelry chain stores and boutiques across the nation, giving the end-user a lower-price alternative to the traditional diamond designs. That is not to say that the end of diamond jewelry is at hand; but the new trends will keep the momentum going until things turn around, while at the same time maintaining consumer satisfaction.
Q. According to some pundits, jewelry retailers are trying to attract jewelry consumers this holiday season by offering more affordable jewelry (including silver jewelry embedded with diamonds, charm bracelets with charms made of glass and crystal rather than, diamonds, gold or platinum), and huge pieces of jewelry made of cheaper materials embedded with less expensive gemstones. Do you think this recession-adjusted jewelry will get people to spend money on less expensive pieces? And if so, how will this affect the sales of high-end, branded jewelry?
A. As I just mentioned, yes, some jewelry retailers are designing their collections to include more-affordable materials that they may not have used in previous years - with some dazzling results. The jury is out on the short-term effect this will have on high-end branded jewelry lines - but in the long run I am confident that, with time, people will slowly gravitate towards the higher-end jewelry again. In fact, I would be surprised if many higher-end jewelry brands to which you refer will not change their own strategies to accommodate this new reality as soon as possible.
Q. Some people are investing in diamonds these days due to the soaring price of gold and the weak dollar.Do you consider diamonds to be a worthwhile investment?
A. This question reminds me of the soaring price of diamonds, silver and gold that took place in the Mid 80's. Back then - dealers were buying and selling diamonds amongst themselves daily, driving the list-price of a one-carat D-Flawless diamond to $12,000 per carat; silver hit $50.00 an ounce; and gold recorded a high of $800.00 an ounce. Remember: this was 20 years ago. And then.... reality set in and everything came crashing down.
Although today's scenario may differ in many respects, one thing remains the same: The inherent scarcity and the enduring value of diamonds - which has maintained itself and has become more evident throughout the years. People have lost confidence in all sectors of investment, except for those things that they can actually hold: namely Diamonds and Gold.
Q. Do you have any practical tips for jewelry and diamond retailers right before the holiday season? What can they do at this stage to promote jewelry sales?
A. I believe the best strategy is for jewelry retailers to listen to what the client is saying. In other words, go with the flow. If it means reorganizing your inventories, then so be it.
Don't be stuck by "what used to be." That was yesterday.
Also, it is paramount that jewelry retailers relay to their clients that they will still be around tomorrow to service them, and that the quality of the merchandise they are selling today will withstand the test of time.
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Maurice Fine Jewelry is known for retail and its custom-design of high-end jewelry, specializing in both classic and contemporary designs. Assoulin has been serving his elite clientele since 1991, from the flagship store in Manhattan's prestigious Plaza Hotel.
By: Steven Silverstein, CEO IDI NY
