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Outsource
And Compete
The jewellery retailer’s new mantra
Editorial Department
06 MUMBAI DIAMOND MARKET REPORT EDITOR-IN-CHIEF Vinod Kuriyan
Hot December Trading, Shortages Keep Prices Buoyant
Editors Edahn Golan, Danielle Max
IDEX ONLINE RESEARCH Ken Gassman
10 SPECIAL REPORT INTERNATIONAL CORRESPONDENTS
Impulse Buying – The Growing Sales Driver Tamar Katzav, Whitney Hepp
IDEX ISRAEL
56 US MARKET WINDOW Maccabi Bldg., 1 Jabotinsky St., P.O.BOX 3107,
RAMAT GAN 52130, ISRAEL
TEL: +972-3-575-7455, FAX: +972-3-7511203
8 HINDI MARKET REPORT
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14 HINDI SPECIAL REPORT on application to the editor. All rights reserved. No part of this
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ISSN 0334-6838
IDEX ONLINE 2003 IDEX ONLINE S.A.
H
aving remained unchanged for millennia, reflect the jewellery retail industry’s organised response
the Indian gem and jewellery retail industry toward better countering these new threats.
has gone through a series of changes in the
last decade or so. Changes so profound, they have left And while the retail industry has changed, the retailer
many industry veterans uncomprehending and unable to has to also appreciate the fact that the consumer and the
cope. But understanding and adjusting to these changes drivers that impel jewellery buying have also changed.
is vital for any retailer wanting survive and thrive into While they might not command as high unit prices
the future. as the more traditional bridal and festival market
segments do, impulse purchases of jewellery have grown
The single biggest change is in assessing and defining the exponentially and for many retailers today, are one of
retailer’s role in the marketplace. With each passing day, it the lifelines that sustain them in the many ups and
is becoming less relevant for the retailer to be many things downs of today’s unsteady economic situation.
rolled into one. Today, he would do well to stop trying to
be both a bullion dealer as well as a manufacturer and Even if one adopts to the new methods of sourcing product
concentrate instead on just one thing – understanding and positioning it to cater to the new sales drivers, one
and servicing his customer to a level he has not before. needs to ensure that the product itself enjoys a rock
solid confidence with the consumer. Assurance programs
This is something many veteran retailers, who have are an essential part of the retail game today. And this
succeeded in the Indian consumer market hitherto, assurance increasingly has to come from independent
find very difficult to accept. It takes a major leap of third parties and not the retailers themselves.
faith to appreciate that a specialist manufacturer also
understands the tastes and demands of one’s customers The successful retailer today is one who offers his
and is able to come up with a product range that will cater customer the widest possible range of choices in terms
to them. But as many retailers will tell you, letting go of of product design and styling as well as options in
manufacture is probably the best thing you could do. price points, gets a third party to examine and certify
the product and stands behind even after it has been
In today’s fiercely competitive marketplace, those who sold. The push to meet all these criteria is what has
understand their customers’ tastes and desires, provide the triggered the many changes in the industry.
widest range of choices to cater to them and a whole raft of
assurance programs that instill confidence in the product It stands to reason that embracing these changes is
and its valuation, are going to be the survivors. Those who not an option at all but an imperative. This issue’s
don’t will be history. It is literally as stark as that. selection of articles is designed to help the industry
both understand and better adopt these changes as
Today’s jewellery retailer is not just competing against well as giving some insight into the new impellers that
other jewellery retailers. A whole range of other luxury drive jewellery sales today. ■
products with a set of value propositions that resonate
well with the desires and aspirations of today’s consumers
are aggressively competing for a slice of the disposable Vinod Kuriyan
income pie. The changes that we look at in this issue Editor
IDEX Magazine – India Retail | NO 02: EDITOR 3
Mumbai
Diamond MARKET REPORT
T
he Mumbai polished diamond market saw overseas buyers was also good. Due to the shortages,
very good activity all the way through to however, overseas buyers stayed longer than they
the end of December – much better than expected in the city and finally bought something
what anybody expected. Demand was very good or the other before leaving. The shortages are
for all sizes and categories of diamonds. But goods expected to continue through to January, when
were in short supply all around and buyers had very new production is expected to come onto the
limited choices. Due to this, prices moved noticeably market. It is going to remain a seller’s market
upward, with buyers unable to resist them any more until then.
(there had been strong resistance to price rises in
November, just after Diwali). Today, buyers simply Though not entirely favourable, the dollar-
have to pay more for what they want, even though rupee exchange rate was nonetheless stable,
there is room for some negotiation and sellers don’t with movements remaining within a 2 percent
necessarily get whatever they ask for. band up or down. This allowed trading to go
ahead unfettered, unlike in previous months,
Strong domestic demand was the main driver when large swings kept a nervous market at low
for the market, though Christmas demand from volumes. ■
▲ -0.01 (-2 ) Very good demand for SI+ goods. Shortages will continue in near future. Prices
Good demand for lower piqué goods. Overall are on the rise, will go up by 2%-4%.
very good demand across the board.
▲ -0.02 (+2-6.5) Very good demand for SI+ goods. Shortages will be severe due to increasing
Good demand for lower piqué goods. Very hot demand. Prices will go up by 2%-4%.
category.
▲ 0.03-0.07 Very good demand for SI+ & lower piqué goods. Overall demand will remain stable. Prices will
(+6.5-11) +8 sieve is the most required sieve, demand go up by 2%-3%.
improving for -8 sieve.
▲ 0.08-0.14 (+11-14) Very good demand for piqué goods. Shortages will be felt. Activity will remain
Good demand for SI1+ goods. stable.
▲ 0.15-0.17 Very good demand for piqué goods. Activity will remain stable with shortages of
(+14-15.5) Good demand for SI1+ goods. goods.
▲ 0.18-0.22 (1/5) Fair demand for SI1+ goods. Overall low activity will be seen in this category.
▲ 0.23-0.29 (1/4) Good demand for VS+ & piqué goods. Activity will remain stable.
Demand for VS+ goods is mainly for local
market.
▲ 0.30 (1/3) Good demand for VS+ & piqué goods. Demand & prices will remain stable.
Demand for VS+ goods mainly for domestic
market. G-J colours in greater demand.
▲ 0.40 (3/8) Good demand for VS+/G-J col. Demand & prices will remain stable.+0.45
Demand for this category is mainly for local carat will be difficult to find.
market.
▲ 0.50 (1/2) Good demand for I2+/J+ col. Overall good Demand & prices will go up. Better demand can
demand across the board. be seen for D&F col.
▲ 0.75 (3/4) Good demand for I1/I2 & VS+ clarity. +0.80 Shortages will be seen for +0.90 carat.
carat in more demand.
▲ 1.00 (4/4) Overall very good activity across the board. Severe shortages will be seen for H lower col.
Shortages seen in premium sizes. Prices will go up by 2%-3%.
▲ +3.00 Fair demand for SI1+/ H-K col. Better demand & activity is expected.
Demand for VS/J-K col. increasing in +5 carat
sizes.
E
ven in the 21st century, the vast majority of Pratap Kamath, CEO of Abaran Jewellery in Bangalore,
jewellery sales in India is driven by events — says, “I would estimate that more than 70 percent of
weddings, festivals, anniversaries and other jewellery sales in India are event driven. Events are
milestones. A major factor in the consumer’s assessment such a strong impeller that even Rio Tinto, the diamond
of jewellery is still its intrinsic value — even when one mining company, is looking at developing a sales model
is looking at relatively low-cost product. Given the for their diamonds based on events. Also, it is natural
combination of event-driven purchase impellers and that high-value purchase decisions will be taken only
the need for the product to act as a storehouse of after a fair amount of thought. It follows then that most
value, most jewellery purchases in India are carefully impulse purchases are therefore usually in the lower
thought out, with the actual purchase decision taking price ranges, mostly in the Rs.5,000 to Rs.15,000 range
a fair amount of time to be reached, say many industry and rarely if ever crossing the Rs.50,000 mark.”
insiders. According to them, a relatively small proportion
of sales is driven by impulse — a purchase because a According to Kamath, impulse buying hasn’t increased
customer liked what he or she saw and wanted to have dramatically over the last decade or so, though he
the product immediately. does think it has nonetheless, established itself firmly
NAC Jewellers
in the Indian market — an arena that had almost no Indian consumer’s demand for high intrinsic value
impulse sales for millennia. is what gives the domestic jewellery industry such
staggeringly high volumes,” he notes. “If we were to
N. Anantha Padmanabhan of NAC Jewellers in Chennai, move away from this model where intrinsic value
however, states emphatically that the reverse is true, matters, to something like the models in western
that impulse sales are what keep jewellery outlets going countries,” he notes, “we’d see a sharp drop in volumes
every day. “We’re surviving on impulse sales,” he notes, and overall value.”
adding, “without them, half the jewellery showrooms
around the country would have shut down by now!” Kamath quotes the example of gold jewellery sales in
Padmanabhan estimates that impulse sales account for Kerala. “Fully half of all the gold consumed in jewellery
between 30- and 40 percent of his total sales. every year is recycled from older jewellery. This clearly
indicates that jewellery still plays a major role as a
“Impulse buying is something that has grown in almost storehouse of value and that it is held onto with a
every consumer sector,” Padmanabhan notes. “Some strong investment motive as well,” he observes.
years ago, I too would normally go out to buy myself
new clothes only at Diwali or some special occasion. But This, Kamath says, is why he doesn’t think impulse
today, the variety of choices and the range of product sales are that big a factor in the overall sales mix. And
have changed the way I think. I’m likely to go out and this, he acknowledges, brings with it a major danger
buy myself a new shirt at any time of the year, should for the future. Tomorrow’s generation is less likely to
I feel like it. This is exactly what is happening in the seek high intrinsic value in jewellery and probably
Indian jewellery market. The range and variety of product seek other attributes like a higher design quotient.
available today has nudged the Indian consumer away “As an industry, we need to move on from simply
from being an occasion-driven buyer only to one who depending on intrinsic value and generate a value
is liable to make a purchase at any time, should the urge proposition based on other factors like emotions. De
to buy strike him or her.” He too notes, however, that Beers did this successfully with diamonds, making
impulse sales are usually in the lower price ranges, with their perceived value lie in their ability to become
the more expensive product being bought only after a the symbol of emotional commitment between men
fair amount of thought and planning. and women. Here is where impulse buying could gain
importance.”
India Hooked On Intrinsic Value
Abaran’s Kamath observes that like it or not, the Indian Even here, however, Kamath feels that event-based
jewellery industry is hooked on the consumer’s demand buying will still be the underlying framework on which
for high intrinsic value in the product they buy. “The the industry will still rest. “An emotional hook certainly
has the potential to add to sales, but even with it, the Much of this difference in buying behaviour, he notes,
underlying factor will still be an event like an anniversary is due to the fact that even low-priced jewellery is
or a festival. An emotional impulse could however, be a perceived as a ‘precious’ product. “You can walk into
major trigger for jewellery sales over these events.” a clothing outlet and casually handle suits that retail
for Rs.30,000, but a piece of jewellery that is worth
It is worth noting here that Valentine’s Day, a very just Rs.5,000 is always behind a glass wall in a counter.
western concept with no traditional grounding in You are more likely to buy the 30,000-rupee suit on
India, was promoted as a jewellery-giving occasion impulse than the 5,000-rupee piece of jewellery. The
only as recently as a few years ago, but is already one products themselves dictate buying behaviour.”
of the fastest-growing sales drivers for low-end, high
design quotient jewellery. The emotional value of a Steady Sellers Already Exist
beautifully designed Valentine’s Day jewellery gift, more Mansukh Kothari of Vasupati Jewellers in Mumbai,
than makes up for its low intrinsic value and has the thinks that while not exactly falling into the category of
potential to last much longer than the latter. impulse sales, there are some jewellery product segments
that have strong sales all year round, independent of
The CEO of a jewellery brand, who requested anonymity, festivals and events. “Chains and bangles are everyday
observed that as a product category, jewellery is not items,” he says, “they sell all year round because they
something that is bought on impulse but a planned buy. are an important part of a woman’s daily attire. These
“Jewellery is a destination,” he notes. “You walk into a products sell well in a variety of price points though
jewellery showroom because you want to buy some, it the most popular products around the country would
isn’t like an iPod, which you could snap up on impulse be those that have have less than 30 grams of gold.”
while you were idly browsing through a retail outlet. As a In addition to these steady sellers, India’s still nascent
retailer, you can create an environment that is conducive branded jewellery industry, especially the lower-price-
to more impulse-driven behaviour, but the product itself point mass-market segment, has definitely made major
is not something people consider on impulse.” strides in modifying consumers’ jewellery purchase
behaviour. Mass-market brands by their very nature, Conversely, branded jewellery has seen a higher
exclude themselves from the traditional jewellery percentage of final buying decisions being taken by the
buying triggers in India. Positioning themselves in wearer herself, even if she isn’t a family elder. Impulse
malls and mass-retail chains, with a more casual and buying has definitely established itself in the Indian
immediate ambience, these brands have taken big steps market. ■
away from the more ivory-towered feel that jewellery
has traditionally generated.
N
ot any more. With a variety of investment consumer goods – organised retail is what drives
options now available as well as a whole organised manufacture and organised manufacture
range of luxury products to choose from, in turn triggers organised outsourcing. The Indian
the Indian consumer is increasingly jewellery retail industry is on the same path that every
looking for a very different relationship with even the other product category’s retail system has gone through.
traditional family jewellery retailers. Primarily, they Organised outsourcing is inevitable.”
want a huge choice in the range of products on offer. In
addition to that, they want guarantees of purity in the Specialist manufacturers take on a variety of headaches
gold content, assurance about the quality and value of in the manufacturing process that require inordinately
the diamonds and coloured gemstones used, as well as large amounts of time and skilled manpower to tackle.
some warranty services in the form of assured repairs, They take care of:
cleaning etc. All the other luxury products offer this
and more and the Indian consumer wants the same • Sourcing primary gold and hedging against the yellow
from the jewellery retail industry. metal’s increasingly volatile price swings. They deliver
a product at a fixed price that the retailer knows is
Retailers around the country now find it impossible to good for his customer base during a specific sales
perform both their traditional roles as well as cater to period.
the new demands from their customers. Increasingly,
they have turned to specialist manufacturers and • Ensure quality by taking care of hallmarking and
distributors to source their product, as being rid of providing laboratory certification of the diamonds
this responsibility allows them to focus more on their and coloured gemstones used if this is required.
customers and their specific needs.
• Provide a huge range of product styles and options that
With much stiffer competition in the market all round, no retailer could offer his customers on his own. These
the name of the game is segmentation and profiling, include the very latest in trends and fashions, that
say industry analysts. As one put it, “There are three the younger customer base is increasingly demanding
separate games – the brand, the product game and the of the product they buy. This also allows the retailer
retail – and the return on investment in each is different. in turn to increase the range of products he offers
If you are in branding, your focus is to maximise the his customers.
perceived value of the brand; if you are a manufacturer,
you will be focussed on simply satisfying the customer’s • Stand behind their product by providing guarantees
specific needs within the product range you have as your as well as repair and refurbishing services when
intent is to ensure that your manufactured product keeps needed.
moving. If you are primarily a retailer, however, it is all
about catering to every single need of the customer –
even those that he or she cannot articulate clearly. You Outsourcing Gives You A
then need the greatest variety and depth of product to Wide Choice
offer the greatest range of choices.” Mansukh Kothari of Vasupati Jewellers in Mumbai, a
firm that provides back-end design and manufacturing
The analyst goes on to say, “It has happened in every services for range of retailer clients around the country,
other industry from automobiles to fast moving says that the volume and value of the jewellery that
Everybody is keeping a close eye on the market and design product, manufacture it and then look at issues
everybody wants a bigger slice of the consumer’s like quality control. They want ready product with
wallet. The fierce competition that he is talking about, all of this taken care of.”
Kothari of Vasupati notes, is actually threatening the
future of the small and medium jewellery retailer.
“You could run a successful retail operation with a
Artisan Workforce Unlikely
range of jewellery that would account for some 30 To Last
or 40 kilograms of gold,” he observes, “but not any The traditional role of the retailer is also threatened by
more. You need much more on hand to offer your a social issue. The karigar is no longer a widespread and
customer a choice. In five years’ time, I think you’ll dependable entity. Many of these traditional artisans,
need a minimum stock that accounts for some 100 who have gone into jewellery manufacture because their
kilograms of gold. The bigger operators and those families have been in the trade for generations, no longer
with multiple branches are going to be the only ones want to continue with a job that demands long hours in
able to cope with demands like this. And they are not poor working conditions and absolutely no security of
going to be tied down with having to source gold, income. Most of them want their children to move into
Graphic Design
Cacharel’s Argent Générique line encompasses
what the company calls “graphic-chic.” The
necklace, ring and bracelet are made of silver,
lacquer and cubic zirconia to provide an art deco
look in contemporary colors for affordable fashion
jewelry. The open-worked, crafted bubble jewelry in
the Bulles (bubbles) collection is made of rhodium-
plated sterling silver and zirconia.
Work of Art
In homage to the impressionist painter Claude
Monet, Mathon Paris has re-launched its
Nymphéas collection, created in 2005 and now
enriched with new color harmonies and a
modernised design. The line is based around
orange and yellow – yellow sapphires, spessarite
garnets and diamonds – to evoke the atmosphere
Jewelry by Mathon Paris of Monet’s lush field of poppies.
Jewelry by
Isabelle Langlois
World Traveler
Artist-jeweler Philippe Tournaire is renowned
for his architectural creations. Now he has taken
his creativity a stage further with rings based on
Jewelry by
some of the world’s most important cities. London,
Philippe Tournaire Dubai, Moscow, New York and Paris, rendered in
multi-colored gold and artfully placed diamonds,
are his first world offerings, though other cities are
planned to follow.
Jewelry by
Commelin
Bon Voyage
How can you not fail to be “charmed” by these
travel-themed charms from Commelin? The
Voyages collection takes wearers all over the
world through a variety of 18 karat yellow and
white gold charms. Providing inspiration for
places not yet visited, as well as mementos of
special places, these charms are irresistible.
No Frères
Founded in 1835, Gay Frères is renowned
as a manufacturer and supplier to some of
the best-known European jewelry brands.
The Endless Love collection, one of about 40
produced by the company, represents the
power of love. The necklaces, rings, earrings
and bracelets come in pink or yellow gold,
or white gold with diamonds.
Precious Hearts
In its Sceau de Coeurs collection,
Poiray reveals a new line of
poetic, fun and technical jewelry. Two
Jewelry by interchangeable rings, one in precious metal,
Poiray the other in ceramic, are interlaced. The rings are
available in 18 karat white, pink or yellow gold,
semi-pavéd or entirely pavéd in diamonds.
Watches by opex
Time Change
These Obi watches from Kenzo are available
for both men and women. The watches
feature reversible straps, allowing wearers
to match them with double the number of
outfits that a single timepiece would allow.
Now you need never worry about clashing Watches by kenzo
with your clothes ever again!
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IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 235446 193589 167428 146499 136035 104642 88946 78482 68018 52321 36625 D 272525 230598 199153 178190 146744 115299 104817 94336 73372 57650 41927
E 198821 177892 151732 136035 125571 99410 83714 78482 62785 47089 31393 E 230598 204394 178190 167708 141504 110058 94336 89095 68131 52409 36686
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I 125571 109875 104642 94178 78482 73250 62785 57553 47089 36625 26161 I 151985 131022 120540 104817 94336 83854 73372 68131 52409 41927 31445
J 94178 88946 83714 73250 68018 62785 57553 52321 41857 36625 20928 J 120540 110058 104817 89095 78613 73372 68131 62890 47168 41927 26204
K 83714 78482 73250 62785 57553 52321 47089 47089 41857 31393 20928 K 110058 99577 94336 78613 73372 62890 57650 52409 41927 36686 26204
L 68018 62785 62785 57553 57553 52321 47089 36625 31393 26161 15696 L 94336 89095 83854 73372 68131 57650 52409 47168 36686 31445 20963
M 57553 57553 52321 47089 47089 41857 36625 31393 26161 20928 15696 M 78613 73372 68131 62890 57650 52409 47168 41927 31445 26204 20963
N 47089 52321 41857 36625 36625 31393 26161 26161 20928 15696 15696 N 62890 57650 52409 52409 47168 47168 41927 36686 26204 20963 20963
IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 313188 265005 228868 204777 168640 132503 120457 108411 84320 66251 48183 D 447306 343662 300022 240018 223653 185468 147284 136374 109099 87279 60004
E 265005 234891 204777 192731 162617 126480 108411 102388 78297 60228 42160 E 332752 300022 278202 229108 201833 169103 136374 125464 103644 81824 54550
F 252960 228868 198754 180685 150571 120457 102388 96366 78297 60228 42160 F 300022 278202 256383 218198 190923 152739 125464 114554 98189 76369 54550
G 228868 198754 174663 156594 132503 114434 96366 90343 72274 54206 36137 G 267293 245473 229108 201833 169103 136374 109099 103644 92734 70914 49095
H 204777 180685 156594 138525 120457 108411 90343 84320 66251 54206 36137 H 240018 218198 196378 174558 147284 125464 103644 98189 87279 65459 49095
I 174663 150571 138525 120457 108411 96366 84320 78297 60228 48183 36137 I 196378 180013 163649 141829 125464 109099 98189 92734 81824 65459 49095
J 138525 126480 120457 102388 90343 84320 78297 72274 54206 48183 30114 J 152739 141829 130919 114554 109099 98189 87279 81824 76369 65459 43640
K 126480 114434 108411 90343 84320 72274 66251 60228 48183 42160 30114 K 130919 125464 120009 103644 98189 87279 81824 76369 70914 60004 43640
L 108411 102388 96366 84320 78297 66251 60228 54206 42160 36137 24091 L 114554 109099 103644 98189 92734 81824 76369 70914 60004 54550 38185
M 90343 84320 78297 72274 66251 60228 54206 48183 36137 30114 24091 M 98189 92734 87279 81824 81824 70914 65459 60004 54550 49095 32730
N 72274 66251 60228 60228 54206 54206 48183 42160 30114 24091 24091 N 81824 76369 70914 65459 70914 60004 54550 49095 49095 43640 27275
IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 553205 423039 363380 319991 292873 249485 222367 184402 157284 103048 65083 D 682516 569659 494421 392312 354693 333197 284830 220340 177347 123605 75238
Round 0.90 (0.90-0.99)
Round 3/4 (0.70-0.89)
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H 292873 265755 244061 222367 206096 184402 168131 151860 130166 86777 54236 H 365442 343945 322449 300952 279455 252585 231088 182721 150476 102109 64490
I 244061 227790 216943 200673 184402 168131 146437 135590 124742 81354 54236 I 306326 290204 268707 257959 236462 225714 204217 166598 139728 96735 59116
J 184402 178978 173555 157284 151860 146437 135590 119319 113895 75930 48812 J 252585 241836 231088 220340 204217 198843 182721 150476 128979 91360 59116
K 162707 157284 151860 135590 130166 119319 108472 103048 92201 70507 48812 K 209592 204217 193469 182721 171973 166598 150476 128979 102109 80612 53741
L 135590 130166 124742 119319 113895 108472 97624 92201 70507 59659 43389 L 177347 171973 166598 155850 150476 145102 134354 118231 96735 75238 48367
M 124742 119319 113895 108472 103048 97624 92201 86777 65083 54236 37965 M 161224 155850 150476 145102 139728 134354 123605 107483 91360 69864 48367
N 113895 108472 103048 97624 92201 86777 86777 81354 59659 48812 32541 N 145102 139728 134354 134354 128979 123605 112857 96735 85986 64490 48367
Disclaimer: This Diamond Retail Benchmark India (DRB™) is an informational and educational tool for diamond consumers. Organized around the “the 4C’s” - Carat, Cut, Color & Clarity - the DRB India is based on
market data from the diamond trading centers Worldwide and market research assessment of customary retail mark-ups. Endorsed by the All India Gem & Jewelry Trade Federation (GJF), as well as the World Federation
of Diamond Bourses (WFDB) The DRB™ should be used as background information only. Actual diamond sale prices may be differ compared to this benchmark, depending on demand and supply at time of transaction;
source of the diamond certificate; fluorescence; cut specifications; payment and other terms of business; foreign exchange rates; special stones and other business considerations. This is published jointly by The All
This and
India Gems price list reflects
Jewellery suggested
Trade Federation (GJF), a retail prices
trade body for polished
headquartered diamonds.
in Mumbai, and IDEX, aDiamonds may,house
diamond research andheadquartered
should, sell at Aviv
in Tel discounts compared
Israel, with to this
a view of unbiased list.toFor
service the more
consumer
education on prices and discounts please visit www.diamondSRP.com. Copyright 2009 by WFDB and IDEX Online S.A. All rights reserved.
36 DR AF T – JANUARY 1st 2011
D R A F T – J A N U A R Y 1st 2 0 10
DR AF T – JANUARY 1st 2011
E 107173 99782 88695 73912 62826 59130 51739 51739 40652 29565 22174 E 122078 113659 101030 84192 71563 67353 58934 58934 46305 33677 25257
F 99782 92390 77608 66521 59130 55434 48043 48043 36956 25869 18478 F 113659 105239 88401 75772 67353 63144 54725 54725 42096 29467 21048
G 92390 81304 70217 62826 55434 51739 44347 44347 33261 25869 18478 G 105239 92611 79982 71563 63144 58934 50515 50515 37886 29467 21048
H 73912 70217 62826 59130 51739 48043 40652 40652 29565 22174 18478 H 84192 79982 71563 67353 58934 54725 46305 46305 33677 25257 21048
I 59130 55434 51739 51739 48043 44347 36956 36956 29565 22174 14782 I 67353 63144 58934 58934 54725 50515 42096 42096 33677 25257 16838
J 48043 44347 44347 40652 40652 36956 33261 33261 25869 18478 14782 J 54725 50515 50515 46305 46305 42096 37886 37886 29467 21048 16838
K 40652 36956 33261 33261 33261 29565 25869 25869 22174 18478 14782 K 46305 42096 37886 37886 37886 33677 29467 29467 25257 21048 16838
L 36956 33261 33261 29565 29565 29565 25869 22174 14782 14782 11087 L 42096 37886 37886 33677 33677 33677 29467 25257 16838 16838 12629
M 33261 33261 33261 29565 29565 29565 25869 22174 14782 11087 11087 M 37886 37886 37886 33677 33677 33677 29467 25257 16838 12629 12629
N 33261 33261 33261 29565 29565 29565 25869 22174 14782 11087 11087 N 37886 37886 37886 33677 33677 33677 29467 25257 16838 12629 12629
IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 152499 142661 127903 118064 98387 88548 73790 68871 59032 44274 29516 D 171324 157433 143542 134281 115759 101868 92608 83347 60195 46304 37043
E 142661 132822 118064 98387 83629 78709 68871 68871 54113 39355 29516 E 157433 148172 134281 125020 111129 92608 83347 78716 55565 41673 32413
F 132822 122983 103306 88548 78709 73790 63951 63951 49193 34435 24597 F 148172 138911 125020 115759 106499 87977 78716 74086 50934 37043 27782
G 122983 108225 93467 83629 73790 68871 59032 59032 44274 34435 24597 G 138911 125020 115759 106499 97238 83347 69456 69456 46304 37043 27782
H 98387 93467 83629 78709 68871 63951 54113 54113 39355 29516 24597 H 120390 111129 101868 97238 87977 78716 64825 64825 41673 32413 27782
I 78709 73790 68871 68871 63951 59032 49193 49193 39355 29516 19677 I 97238 92608 87977 83347 74086 69456 60195 60195 41673 32413 23152
J 63951 59032 59032 54113 54113 49193 44274 44274 34435 24597 19677 J 78716 74086 74086 69456 60195 55565 50934 50934 37043 27782 23152
K 54113 49193 44274 44274 44274 39355 34435 34435 29516 24597 19677 K 69456 60195 55565 50934 50934 46304 37043 37043 29516 24597 23152
L 49193 44274 44274 39355 39355 39355 34435 29516 19677 19677 14758 L 60195 55565 50934 46304 46304 41673 37043 32413 27782 23152 18522
M 44274 44274 44274 39355 39355 39355 34435 29516 19677 14758 14758 M 50934 46304 46304 41673 41673 39355 34435 29516 23152 18522 18522
N 44274 44274 44274 39355 39355 39355 34435 29516 19677 14758 14758 N 44274 44274 44274 39355 39355 39355 34435 29516 19677 18524 18522
IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 178043 163607 149171 139547 120299 105863 96239 86615 62556 48120 38496 D 246033208896190328 171759 157833 129980 111411 102127 88201 69632 51064
E 163607 153983 139547 129923 115487 96239 86615 81803 57744 43308 33684 E 213538 190328 176401 153191 139264 116053 92843 92843 83558 64990 46421
F 153983 144359 129923 120299 110675 91427 81803 76991 52932 38496 28872 F 190328 176401 157833 143906129980 111411 88201 88201 78916 60348 46421
G 144359 129923 120299 110675 101051 86615 72179 72179 48120 38496 28872 G 176401 157833 143906129980 116053 102127 83558 83558 69632 55706 41779
H 125111 115487 105863 101051 91427 81803 67367 67367 43308 33684 28872 H 157833 143906 134622 120696 111411 88201 78916 78916 64990 51064 41779
I 101051 96239 91427 86615 76991 72179 62556 62556 43308 33684 24060 I 134622 120696 116053 106769 97485 88201 78916 74274 60348 51064 37137
J 81803 76991 76991 72179 62556 57744 52932 52932 38496 28872 24060 J 106769 97485 92843 88201 83558 78916 74274 64990 55706 51064 37137
K 72179 62556 57744 52932 52932 48120 38496 38496 29516 24597 24060 K 83558 74274 74274 69632 69632 64990 60348 60348 51064 46421 32495
L 62556 57744 52932 48120 48120 43308 38496 33684 28872 24060 19248 L 69632 64990 64990 60348 60348 60348 55706 55706 46421 41779 32495
M 52932 48120 48120 43308 43308 39355 34435 29516 24060 19248 19248 M 55706 55706 55706 51064 51064 51064 46421 46421 41779 37137 27853
N 44274 44274 44274 39355 39355 39355 34435 29516 19677 19250 19248 N 46421 46421 46421 41779 41779 41779 37137 37137 37137 32495 23211
IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3 IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3
D 346054270206255985 241763 227542203840 175397 161176 123252 85328 56886 D 393677 311280 302124 283814265503 251770 219727 178528 132752 96130 59509
Fancy 0.90 (0.90-0.99)
Fancy 3/4 (0.70-0.89)
E 274947255985246504227542208580 180137 156435146954 118512 80588 52145 E 311280 302124 283814 270081 256348238037205994 169373 128174 91553 54932
F 260725246504237023 218061 194359 170657 146954 137473 113771 75847 52145 F 302124 283814265503256348242615228882 201416 164795 128174 86975 54932
G 246504232283 218061 199099 180137 151695 137473 132733 109031 75847 47405 G 283814265503256348 247193 228882 210571 187683 160217 123596 82398 50354
H 222802203840199099184878 161176 137473 127992 123252 99550 71107 47405 H 247193228882 219727 210571 196839 187683 164795 151062 114441 82398 50354
I 189618 175397 170657 156435 132733 118512 109031 104290 90069 66366 42664 I 219727 205994201416 192261 178528 173950 151062 132752 109863 77820 45776
J 151695 142214 137473 127992 123252 113771 94809 90069 75847 61626 42664 J 187683 183106 178528 169373 164795 155640 137329 119019 96130 68665 45776
K 127992 118512 113771 109031 104290 94809 85328 80588 66366 56886 37924 K 151062 146485 141907 137329 137329 128174 119019 105286 82398 59509 41199
L 104290 99550 94809 90069 90069 85328 80588 71107 56886 47405 37924 L 119019 114441 109863 105286 105286 100708 96130 86975 64087 50354 37924
M 80588 80588 80588 75847 75847 75847 71107 71107 47405 42664 33183 M 91553 91553 91553 86975 86975 86975 82398 77820 50354 45776 36621
N 66363 66363 66366 61626 61626 61625 61626 37919 37924 37924 28443 N 73242 73242 73242 68665 68665 68665 68665 68665 37924 37924 36621
Disclaimer: This Diamond Retail Benchmark India (DRB™) is an informational and educational tool for diamond consumers. Organized around the “the 4C’s” - Carat, Cut, Color & Clarity - the DRB India is based on
market data from the diamond trading centers Worldwide and market research assessment of customary retail mark-ups. Endorsed by the All India Gem & Jewelry Trade Federation (GJF), as well as the World Federation
of Diamond Bourses (WFDB) The DRB™ should be used as background information only. Actual diamond sale prices may be differ compared to this benchmark, depending on demand and supply at time of transaction;
source of the diamond certificate; fluorescence; cut specifications; payment and other terms of business; foreign exchange rates; special stones and other business considerations. This is published jointly by The All
India Gems and Jewellery Trade Federation (GJF), a trade body headquartered in Mumbai, and IDEX, a diamond research house headquartered in Tel Aviv Israel, with a view of unbiased service to the consumer
8
3 DR AF T – JANUARY 1st 2011
DR AF T – JANUARY 1st 2011
According to a Shop.org survey released last money transfers initiated from mobile phones will
year, while nearly three-quarters of retailers were leap to $630 million by 2014, up from $70 million
exploring mobile strategies as an additional sales last year. “Mobile retail represents both a new way
channel, the number of retailers who had begun to shop and a new payment paradigm,” said the
implementing their mobile technology plan was NRF.
much smaller. The survey revealed that 62 percent
of retailers had either not yet begun or were only While there is a big difference between buying
in the early stages of planning their mobile strategy. an item of jewelry and buying a coffee, those
interested in how to use a mobile phone as a means
The fact that they are planning at all is good of payment should follow the latest development
news, but with technology moving so quickly and from Starbucks.
so rapidly in so many different directions, it is
imperative that businesses take the mobile plunge, The coffee behemoth launched its mobile payment
diamantaires and jewelers among them. “Retailers test via the Starbucks Card Mobile App in fall 2009
who ignore mobile retailing risk being ignored in 16 stores in Seattle and Northern California and
in return by current and future generations of at more than 1,000 Starbucks in U.S. Target stores.
shoppers,” stated a white paper sponsored by the In October 2010, the company expanded its mobile
National Retail Federation (NRF). payment test to nearly 300 company-operated
stores in New York City and Nassau and Suffolk
The “Mobile Retail Initiative” white paper counties on Long Island.
succinctly summed up the importance of this
new sales channel, and went so far as to say it “Mobile technology is part of our customers’
was changing the way retailers conduct business. daily routine and with the expansion of mobile
“Because [mobile phones] are always with us – and payment in our test cities, we’re seeing more and
always on – they connect retailers to current and more customers using their smartphones as their
potential customers regardless of location or time mobile wallets,” said Brady Brewer, vice president
of day,” the report said. Starbucks Card and Loyalty. “We’ve heard from our
customers on My Starbucks Idea that they want
The numbers are worth considering. In 2015, a faster, more convenient way to pay… Mobile is
shoppers are expected to use mobile phones to just one of the ways we continue to innovate and
purchase goods and services worth close to $120 enhance the experience for our customers.”
billion, which is in the region of 8 percent of
the total e-commerce market. The white paper To pay for their beverages using their smartphones,
estimated that payment for goods and services and customers must first download the free Starbucks
Going Mobile
Card Mobile App onto their supported BlackBerry now accept Chip and PIN payments on their mobile
smartphone, iPhone or iPod touch. This gives them phone, without the hassle of checks or cash. Provided
a barcode on their screen that they hold in front of they have a mobile signal or Wi-Fi connection, a
a scanner on the counter to pay for their purchase, smartphone, and the special Chip and PIN pad, card
which is pretty nifty. payments can be taken anywhere, anytime.” If it’s
successful, who knows where it will end. Ultimately,
In addition to the mobile payment feature, the it could spell the end of credit and debit cards, as
app allows customers to manage their card well as the hassle of carrying cash.
account, reload their card balance directly from
their smartphone with a major credit card, check Those who are hesitant to embark on a full mobile
their My Starbucks Rewards status or find nearby marketing campaign should at the very least embrace
Starbucks stores. social networking, a strategy that has been written
about many times in these pages. While setting up
“With the expansion of mobile payment to a Facebook page or launching a Twitter account is
New York City, we expect to see more and more not going to revolutionize a company’s business,
customers trading their plastic Starbucks Cards for with young consumers spending more and more
the digital version on their mobile phone,” said time on these sites, it provides important exposure.
Brewer. “Expanding our mobile footprint gives our “Social networks are the fastest growing engagement
customers a new way to connect with Starbucks on point between brands and customers and will grow
the go and transforms the way customers experience more quickly than any other form of interactive
their Starbucks Card through the mobile app.” marketing,” NRF estimated in its white paper. “A
social media strategy and a mobile strategy will be at
In the UK, the smartphone as payment device is the forefront of a successful retail market strategy in
being taken even further. CreditCall, a specialist years to come,” it continued.
payment services provider and transaction gateway
with global recognition for innovation in credit Estimates of the number of active users of mobile
card acceptance, has embarked on a “Smartphone social networking sites, according to the NRF, is
Payment Acceptance Trial” that allows companies expected to rise from 55 million in 2010 to nearly
to accept Chip and PIN credit and debit card 730 million in 2013. “With people now spending
payments with their smartphone. more time on Facebook than Google, social media
optimization strategies have become the new
According to a press release from CreditCall, black,” said a recent report from L2, an NYU Stern
“Businesses operating outside the ‘normal’ retail organization driving digital innovation. Clearly, if
environment who need to accept payments on you are not online and actively engaging current and
the go, such as trades people, mobile retailers, potential consumers, you are missing out on a large
beauticians, delivery services and exhibitors, can and vibrant audience.
3
get them all done. For example,
if you want to sell, make sure
you are tracking conversion rates.
Make the experience Alternatively, if you are optimizing the
frictionless – minimize the in-store experience, focus on making
2
clicks, give them a buy product information easily accessible.
button and make checkout
simple. Keeping it simple,
easy, and fast will improve
bout e
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5
Don’t check it easy. Whether it’s
“mobile strategy” a store locator or
off your list and a specific category
Prices Up in November
By Ken Gassman
W
orldwide polished When consumers feel wealthy, While the economic recovery has
diamond prices they increase their discretionary been slow, the economy is clearly
rose significantly in spending. improving. As a result, consumers
November, according to the IDEX appear to have breathed a sigh of
Online Global Polished Price Index. • U.S. consumers began their relief and loosened their purse
At the beginning of the month, the holiday shopping earlier in 2010. strings.
IDEX Online Index stood at 117.1.
By the end of the month, it had
reached 118.5, a rise of 1.2 percent. Graph 1
This would equate to an annualized IDEX Online Global Diamond Price Index
14 percent price increase.
Peak 118.5
119
Several factors drove higher prices,
118.5 Peak 118.5
including the following:
118
Source: Department of Commerce • Unit sales were up for most specialty jewelers.
U.S. Jewelry Sales Trends • Sales growth was the greatest for big-ticket statement
Monthly Sales 2010 vs 2009 jewelry.
Percent Change Year-to-Year
• Demand for designer name jewelry was strong.
Total Sales Jewelry Total Sales
Month Demand for one-of-a-kind jewelry was solid.
& Watches Specialty Jewelers
• Watch sales seem to have improved notably. The The following table summarizes sales performance for the
LGI Network Watch Tracker service reported that major publicly held specialty jewelers for their U.S. stores.
lower-priced (under $500) fine watch sales and very All specialty jewelers on the table above gained market
high-end fine watch sales (over $1,500) were stronger share in the third quarter except Zale (stores), Movado,
than watches priced in the mid-range of $500 to Sterling’s regional brands, and Tiffany’s New York
$1,500. Flagship store. ■
Clarity
Treatments
M
ost diamonds found in nature have some A variation on laser drilling is
“birthmarks” or inclusions that influence called internal laser drilling
their value or grade. Cutters can remove (ILD), a technique that
some of the clarity characteristics so they uses a laser to expand an
don’t detract from appearance or durability with innovative existing cleavage or create
cutting process, but some require more than that. The a new cleavage between an
early 1970s brought many advances in diamond clarity inclusion and the surface.
treatments. This allows the introduction
of a bleaching solution, which
People have experimented with many ways to change and results in the lightening of a dark
modify diamond’s appearance. inclusion, making it less visible.
Diamonds that once were considered unsuitable for gem Other signs of fracture filling include gas bubbles trapped
use can be treated and made attractive and affordable to in the fracture or in the filler itself. The injected filler can
a wider range of consumers. also have a crackled texture. When you see these features
under magnification, it’s obvious that they’re not part of
Diamonds as small as melee have been filled, but because the diamond’s original internal structure.
of the cost of the treatment, most filled diamonds
weigh more than one carat. The marketability Always make sure you examine the diamond from
of larger stones takes a higher leap with an many different angles. Fibre-optic illumination
apparent clarity improvement. makes the flash effect more evident.
Fracture filling has its advantages — it Because fracture fillings can be semi-permanent,
makes a diamond look better — but it also most gemmological laboratories, including the
has some disadvantages. For one thing, the GIA Laboratory, don’t grade filled diamonds.
filler sometimes lowers a diamond’s colour (They do, however, report the presence of fracture
slightly. filling.) Its only function is to make a diamond more
marketable by disguising its inclusions.
Fracture filling can last for years with proper care, but
it’s important to know that the fillers can sometimes be If you’re ever unsure about the presence of fracture filling
damaged by common jewellery repair procedures, such in a diamond, send it to a gemmological laboratory for
as the high temperatures created during recutting or identification.
repolishing and the torch heat generated during retipping
or repair. To be absolutely sure –
Over time, repeated cleaning can also harm fillers, especially
take it to the GIA India
when the method involves steam, acid, or ultrasonics. Laboratory
Prolonged exposure to UV radiation — even sunlight — Like all GIA laboratories worldwide, GIA India tests every
can discolour filler and make it look cloudy over time. diamond it grades for laser drilling, fracture filling, irradiation,
high pressure/high temperature (HPHT) and chemical
It’s possible to replace the filler if it melts and leaks out, vapour deposition (CVD) to detect known treatments and
but if it turns dark, there’s no way to make it colourless to separate natural diamonds from synthetics. Grading reports
again. The only solution is to remove it and replace it with are not issued for diamonds that have undergone unstable
new material. treatments such as coating or fracture filling. And, while
grading reports may be issued for diamonds that have been
Many major manufacturers of fracture fillings offer lifetime laser drilled, irradiated or HPHT processed, these treatments
guarantees on their treatments for just this reason. are prominently disclosed on a GIA Report.
T
his is a story of how success was crafted Bailey Banks & Biddle was part of a larger company
from failure. The story of a once successful named Finlay, that operated a larger number (between
company that stumbled and went under 500 and 700 outlets) of leased jewelry departments in US
financially and how the vision and determination of a Departments stores such as Macy’s and Bloomingdales.
group of managers enabled a small but viable part of And though Finlay was a successful company, things
the company to rise phoenix-like from the ashes of went wrong financially. Basically, their expenses
the first failure. It is also the story of re-invention and exceeded their gross margin dollars and the result
how the internet can be used to give the consumer a was a financial failure.
previously unimaginable range of choices and options
and deliver a custom solution with economy of scale As the post-failure process got under way, with
that bulk manufacture offers. assets being disposed of to try and recover as much