http://www.finejewelrynews.com/blog/reader en Jan@BrassemGlobalConsulting.com Copyright 2010 2010-02-27T13:18:21+00:00 http://www.finejewelrynews.com/blog/reader-entry/global-sourcing/ http://www.finejewelrynews.com/blog/reader-entry/global-sourcing/#When:12:18:21Z Globalization, shrinking margins, the Internet, competition, a lousy economy and who knows what else, has encouraged many jewelers to look beyond the US borders for growth and profitability. Nothing new here; they’ve been hearing about Global opportunities for years. They were simply doing what mass retailers, jewelry chains, department stores – their ferocious competitors — have been doing for years. I just spent six long days trolling the 80,000 square meters of the Hong Kong Jewellery & Watch Fair in the breathtaking Hong Kong Convention & Exhibition Centre. This year the organizers claimed more than 2,700 exhibitors from 48 countries. I had been guiding a group of 25 American independent jewelers around the Fair — and around Hong Kong — on a “Sourcing Workshop.” Their first impression of Hong Kong was shock enough, but nothing compared to their ‘wide-eyed’ astonishment of the Fair. The range of designs, the diversity of the visitors and the size of the building (from a distance it looks like a small bird with big wings), was notably intimidating. My job was to minimize their shock and quickly guide them to find the product and designs they were looking for. (They made kind of a product “wish list” before leaving the US). I even arranged for them to meet with several manufacturers, outside the Centre, in an effort to develop a few long-term vendor/supplier relationships. I was finally in my Continental Airlines seat, exhausted, but not particularly happy to sit — in one place — for 22+ hours during the flight home. Fortunately, I was sitting next to Bill, a second-generation jeweler from northern Michigan. We had an airline meal (tasted like a Brillo pad), saw a movie, read a magazine and had – sigh — only 19hours to go. Bill took out his laptop and started writing a Trip-Report to his Dad. When he finished, he let me read part of it. To: Bill, Sr. From: Bill Subject: Hong Kong Trip, Feb. 17-21, ’10 Date: Sept: 22 Our first effort in buying direct form overseas was, I think, quite successful. Here are the key points. 1. The styling was wonderful. I never realized that each geographic region has a different design look. I thought Bali, Middle Eastern and Indian styling was especially noteworthy 2. I spent a good deal of time with seventeen manufacturers. I bought 42 samples which will be FEDEX’d within 2 weeks. Of those 17, I had lunch with five, who could fit into our future. 3. The prices here are generally terrific — not surprising since these are manufactures’ prices. I saw several styles that we carry and, as far as I can tell, are about 45% below what we now pay. 4. I also met with six smaller factories who were not exhibiting at the Fair. They seemed more innovative and eager. I’ll fill you in on their invoicing, payment and delivery schedules when I get back. Now that I know my way around here, this should be quicker and cheaper next year. The “Sourcing Workshop” was terrific. None of us, (there were about 25 jewelers from all over the country), could have done it without the Workshop leaders. Bill. Fashion and Trends 2010-02-27T12:18:21+00:00 http://www.finejewelrynews.com/blog/reader-entry/a-must-read-for-the-jeweler/ http://www.finejewelrynews.com/blog/reader-entry/a-must-read-for-the-jeweler/#When:17:29:09Z My wife gave me a book for Christmas titled The Necklace by Cheryl Jarvis (Ballentine Books, 2008). The dust jacket reads Thirteen Women and the Experiment That Transformed Their Lives. The book got my attention. If any true story proves what an emotional impact jewelry has on people—especially women—it’s Jarvis’ telling of a “time-share” experiment between 13 women and a white gold, 15-carat diamond necklace. The breathtaking necklace was purchased from Van Gundy and Sons jewelry store in Ventura, Calif. I’ll try not give away any of the book’s secrets (there are many), but the 13 women pooled an equal amount of cash and bought the necklace together. The storeowner’s wife became one of the 13. As agreed, the 13 “owners” would wear the necklace for 30 days before passing it on to the next owner. But that process was just a small—even minor—part of the story. The real message involved the emotional impact the necklace had on the self-esteem, self-confidence and pure joy of the wearer. This jewelry “time-share” (my expression) had a decidedly positive impact on the women and the people around them. I guess the lesson from Jarvis’ story is that jewelry consumers don’t always buy jewelry solely on looks or aesthetics. The emotional impact that women get from wearing beautiful jewelry is—or can be—a strong purchase motivator. Do marketers spend enough time relaying that message to the jewelry consumer? I’m not sure. Anyway, The Necklace should be left on every jewelry counter. Fashion and Trends 2010-01-07T17:29:09+00:00 http://www.finejewelrynews.com/blog/reader-entry/what-will-the-jeweler-see-in-2010/ http://www.finejewelrynews.com/blog/reader-entry/what-will-the-jeweler-see-in-2010/#When:02:54:25Z When the recovery starts for jewelers they will face a drastically altered environment. They’ll find new market and profit opportunities: social networking, internet, globalization, segmented TV advertising, new metals, growth of Gen Y consumers, even reduced competition (thanks to disappearing jewelry chains), to name a few. On the other hand, the recession has changed the attitudes and behavior of many jewelry consumers: – permanently. When the recovery begins, his customers will see jewelry through a different set of eyes. It will be the jewelers’ job to anticipate these changes, develop plans (from ‘A’ all the way to ‘Z’), and then design a variety of implementation scenarios. That’ll be a challenging job, indeed. But wait, there’s more. To add to the challenge, jewelers should start the planning process now – not wait for the Wall Street Journal’s recovery signal. They could/should be the first ‘kid’ on-the-block, so to speak, to reach their new customers. Now that he has stuck a pitchfork in unnecessary expenses, the jeweler should be running a relatively mean and lean operation. Because of that, now would be a good time for the jeweler to develop an Analytical Initiative. Management analytics is the best and fastest (and latest) way for the retail jeweler to keep up – or even pull ahead – of the pack. It is virtually impossible to plan for this uncertain future relying on incomplete data, gut estimates and soft information of the past. Without vigorous disciplines for gathering, sharing and analyzing data, plans can be a waste of time and money (at best), or risk the company’s future (at worst). “Stinkin’ thinkin’,” as they say, can be a time consuming and an expensive process. Analytical Management, also called Evidence-Based Management, Management Without Blinders or Management by Analytics, is simply a way to use the latest data-collection technology and analysis to wring every drop of profit and value from all business process and employees. Management analytics technology, such as Customer Relationship Management System (CRM) – among others — is readily available. By becoming an Analytics Competitor the jeweler will discover what his current customers wants but also how much they are willing to pay for it. He will learn what keeps them loyal. And, he can track existing inventories but also predict and prevent future inventory problems – domestic or global – as well. Electronic Commerce Backbone Systems, (ECBS) is a popular example of inventory analytics technology. By being an Analytical Marketer, the jeweler will know the relationship (linkage) between his prices, his ad expenditures and his sales team. If he doesn’t know this, he should. So, how does the jeweler start an Analytical Initiative? Here are four steps. • Lead Analytics from the Top. The jeweler must lead an analytics-focused organization. If a jeweler lacks the background in the use of mathematical formulas, he could work with his accounting firm or consult experts in the jewelry industry. He must endorse the changes in culture, processes and skill sets that analytics will mean to his organization. • Create a Single Analytics Initiative. Place all data-collection and analysis under one manager. Make it easy to share data and encourage consistent reporting with common report formats, definitions and quality. • Hire the Right People. Hire people who are comfortable and familiar with quantitative-analytical skills. They should be able to express complex findings in simple terms and, at the same time, work well with the jeweler’s team. And, by the way, recruiting the manager with the necessary skills should be easier in a soft economy. • Use the Right Technology. Understandably, the jeweler should be prepared to purchase some of the required – and necessary — software. In addition to the popular Microsoft Office Suite, Enterprise Resource Planning Systems (ERP) is a good program to start with. Why would a jeweler prepare specific plans for a difficult future without accurate information on his past? It is perfectly acceptable to make assumptions on the future, but with an Analytical Initiative, there is no need to speculate on the past. Doing so could turn out to be very expensive, indeed. Fashion and Trends 2010-01-02T02:54:25+00:00 http://www.finejewelrynews.com/blog/reader-entry/the-electronic-revolution-should-jewelers-climb-on-board/ http://www.finejewelrynews.com/blog/reader-entry/the-electronic-revolution-should-jewelers-climb-on-board/#When:06:03:51Z Remember that old line from the Woody Allen movie, “Annie Hall”? “Relationships are like sharks; they move forward or they die.” The jewelry industry has to move forward too or it becomes irrelevant – or at best – an after thought. As we know all to well, consumers are gripped by an “electronic gizmo revolution.” How can – or will – jewelers develop a ‘relationship’ with the revolution, or at worst, capitalize on the sales and profit potential of the movement? How can jewelers develop a framework for electronic innovation in an extremely competitive environment that is changing at warp speed? Several innovative-focused firms – here and overseas — have started their ‘electronic innovation building’. A few come to mind. Paragon Lake (Boston) developed a virtual design/inventory system for jewelry consumers using enhanced computer technology. Dongwoon (South Korea) creatively combines silver jewelry with flash drives. Artco Group (Texas) recently introduced an interactive computer system to produce customized timepieces. These firms – there are others – are technology leaders in an industry (jewelry) which is generally late to use technology to advantage. It’s no surprise that firms that are the first to use – or offer – technology have the potential for considerably higher profits and hold a significant competitive advantage. Just ask Microsoft and Apple. The new technology requires the jeweler to do things differently; this means not only a new approach, but also a refusal to be bound by the old rules that applied in the jewelers of the past. There are several ways to spur innovation in your store: 1. Look outside. When faced with the need to innovate, most jewelers turn to their inside talent. Instead, reach across corporate boundaries to your extended network. 2. Mobilize passionate individuals. There are likely customers out there who are passionate about your designs, ideas, or store. Find these people and connect with them so you can use their ideas to innovate. 3. Embrace new technology. Look to younger generations of employees to see what technologies they are using. Support and embrace these technologies as they may be the source of your next innovation. 4. Purchase Technology from outside the industry. It is no surprise that other consumer product industries have innovative marketing, inventory or administrative systems. Keep your eye open for these systems for purchase. This is, of course, may be the simplest and easiest (did I hear cheapest) technology that could be acquired. 5. Licensing. Certain marketing technologies that are not easily purchased can be licensed for a fee. TV producers license their programs (through simple V-chips), for a royalty. This is especially effective if the program stars a personality which appeals to your target consumer. 6. Trade Technology: A jewelry retailer could contact a cosmetic retailer and exchange (trade) technology applications such as inventory control terminals and in-store marketing deliverables. 7. Partnerships and joint ventures. Jewelry stores from around the country could form partnerships or joint ventures to pursue or design specific new technology. (Jewelers now use these partnerships in volume purchasing arrangements). These are of course, risks associated with developing an aggressive and innovative technology campaign. There are higher costs, necessary customer education, time constraints, quality issues and competitive issues that frequently de-rail the innovative process. But in the current technological environment, can the jeweler afford to let the opportunity pass?Remember that old line from the Woody Allen movie, “Annie Hall”? “Relationships are like sharks; they move forward or they die.” The jewelry industry has to move forward too or it becomes irrelevant – or at best – an after thought. As we know all to well, consumers are gripped by an “electronic gizmo revolution.” How can – or will – jewelers develop a ‘relationship’ with the revolution, or at worst, capitalize on the sales and profit potential of the movement? How can jewelers develop a framework for electronic innovation in an extremely competitive environment that is changing at warp speed? Several innovative-focused firms – here and overseas — have started their ‘electronic innovation building’. A few come to mind. Paragon Lake (Boston) developed a virtual design/inventory system for jewelry consumers using enhanced computer technology. Dongwoon (South Korea) creatively combines silver jewelry with flash drives. Artco Group (Texas) recently introduced an interactive computer system to produce customized timepieces. These firms – there are others – are technology leaders in an industry (jewelry) which is generally late to use technology to advantage. It’s no surprise that firms that are the first to use – or offer – technology have the potential for considerably higher profits and hold a significant competitive advantage. Just ask Microsoft and Apple. The new technology requires the jeweler to do things differently; this means not only a new approach, but also a refusal to be bound by the old rules that applied in the jewelers of the past. There are several ways to spur innovation in your store: 1. Look outside. When faced with the need to innovate, most jewelers turn to their inside talent. Instead, reach across corporate boundaries to your extended network. 2. Mobilize passionate individuals. There are likely customers out there who are passionate about your designs, ideas, or store. Find these people and connect with them so you can use their ideas to innovate. 3. Embrace new technology. Look to younger generations of employees to see what technologies they are using. Support and embrace these technologies as they may be the source of your next innovation. 4. Purchase Technology from outside the industry. It is no surprise that other consumer product industries have innovative marketing, inventory or administrative systems. Keep your eye open for these systems for purchase. This is, of course, may be the simplest and easiest (did I hear cheapest) technology that could be acquired. 5. Licensing. Certain marketing technologies that are not easily purchased can be licensed for a fee. TV producers license their programs (through simple V-chips), for a royalty. This is especially effective if the program stars a personality which appeals to your target consumer. 6. Trade Technology: A jewelry retailer could contact a cosmetic retailer and exchange (trade) technology applications such as inventory control terminals and in-store marketing deliverables. 7. Partnerships and joint ventures. Jewelry stores from around the country could form partnerships or joint ventures to pursue or design specific new technology. (Jewelers now use these partnerships in volume purchasing arrangements). These are of course, risks associated with developing an aggressive and innovative technology campaign. There are higher costs, necessary customer education, time constraints, quality issues and competitive issues that frequently de-rail the innovative process. But in the current technological environment, can the jeweler afford to let the opportunity pass? Fashion and Trends 2009-12-27T06:03:51+00:00 http://www.finejewelrynews.com/blog/reader-entry/the-economic-recovery-has-started/ http://www.finejewelrynews.com/blog/reader-entry/the-economic-recovery-has-started/#When:14:10:21Z Let’s take a moment to look forward, because — let‘s face it — looking back at [Circle one: Lousy Sales/Jewellery Bankruptcies/Impending Inflation/Budget Deficits/Non-jewellery Competition] is, to say the least, depressing. So, let’s look ahead. As President Obama said recently, there seems to be a ‘glimmer’ of better times ahead. Economic and financial indicators seem to agree. That should be no surprise to the sophisticated jewellery manager. By all indications, things are not getting bad as fast as before. The Wall Street Journal and the rest of the Wall Street crowd think the economy has stopped bleeding and is growing — a little. The Wall Street Journal’s “misery index” (the combination of unemployment and inflation), is trending down, from a high of 8.1 only three weeks ago. By way of comparison, during the 1980-Carter inspired recession, the “misery index” hit an all time high of 22. The US Stock Market is moving up — surging eight percent since the beginning of the year. Retail sales, although only certain sectors are up, especially in major discount stores and automobiles. IBM, J.P. Morgan and Intel – among others — have made upbeat forecasts. In total, corporate profit reports have been better than expected. US home construction – an important economic indicator – surged 3.6% in June. It was the third consecutive monthly gain, leaving new-home construction at its highest level since November 2008. Banks also seem to be getting stronger, led by the blowout earnings report from the Goldman Sachs Group, Inc. (Did someone say “Bailout.”) So, it’s time for the jeweller to look around and make sure his company is prepared – positioned — for economic recovery. With the risk of being redundant, here is a brief “Pre-Recovery” checklist for the jeweller – or any businessman for that matter. His firm should hit the ground running. Created an Analytics Initiative. By now, he has placed all data-collection and analysis under one executive with proper technological support. He has by now, based buying and strategic decisions on analytics – empirical evidence – and not on faulty information or wishful thinking. In the ‘old days’ as recently as 2006, decisions were made on memory and gut feel. Nine times out of ten, decisions we were wrong. Prepared for major changes in the industry. A couple of weeks ago, the Federal Reserve Board decided to buy $1.15 trillion (with a T), in effect putting $1.15 trillion into US circulation. When that happens, maybe not this year, but certainly in 2010-2011, he will be faced with severe inflation. And, as we all know, the price of gold is directly related to inflation. So, if history is any indication, (inflation in 1980 reached 14%, with gold following to $2,296/oz, after adjusted for inflation) he can expect a significant run-up in the price of gold. By now he is planning for that eventuality. Started a Social Network Strategy: YouTube, Twitter, Face Book are just a few players in the exploding social network scene, a vital source of innovation that levels the playing field between small businesses and corporate giants. By now, the jeweller has developed his own social network strategy and model. Announced a promotion that will celebrate the economic upturn. The jeweller has by now, developed new and innovative communication concept(s) announcing the new economy. How about giving something free? Threw out things that have outlived their usefulness. The jewellery manager has discarded unneeded samples, unused desks, meaningless reports, cluttered space and old, inefficient systems. He is ready for action. Invested in updated technology. The jeweller invested in product development, tools, production technology, jewelry design and such. They were cheaper during the recession. Pursued mergers and acquisitions. “History shows the best ‘deals’ are made during downturns,” says Shea Fox, publisher of Jewelry Newsletter International, a Houston.-based publication specializing in mergers and acquisitions of jewelry companies. Since sales and profits are weak during a recession (internal) growth is hard to come by. External growth by M&A is a valuable substitute Refocused his financial model. The downturn changed the way many of his suppliers, bankers and customers think and operate. Successful and nimble jewelers anticipated these changes and adapted their business models to gain an advantage. Here are some other things he has done. ● Communicated, communicated, and then communicated. ● Economically experimented with new systems and marketing programs. ● Maximized market share, by taking customers from struggling, bankrupt or reorganizing competitors.Let’s take a moment to look forward, because — let‘s face it — looking back at [Circle one: Lousy Sales/Jewellery Bankruptcies/Impending Inflation/Budget Deficits/Non-jewellery Competition] is, to say the least, depressing. So, let’s look ahead. As President Obama said recently, there seems to be a ‘glimmer’ of better times ahead. Economic and financial indicators seem to agree. That should be no surprise to the sophisticated jewellery manager. By all indications, things are not getting bad as fast as before. The Wall Street Journal and the rest of the Wall Street crowd think the economy has stopped bleeding and is growing — a little. The Wall Street Journal’s “misery index” (the combination of unemployment and inflation), is trending down, from a high of 8.1 only three weeks ago. By way of comparison, during the 1980-Carter inspired recession, the “misery index” hit an all time high of 22. The US Stock Market is moving up — surging eight percent since the beginning of the year. Retail sales, although only certain sectors are up, especially in major discount stores and automobiles. IBM, J.P. Morgan and Intel – among others — have made upbeat forecasts. In total, corporate profit reports have been better than expected. US home construction – an important economic indicator – surged 3.6% in June. It was the third consecutive monthly gain, leaving new-home construction at its highest level since November 2008. Banks also seem to be getting stronger, led by the blowout earnings report from the Goldman Sachs Group, Inc. (Did someone say “Bailout.”) So, it’s time for the jeweller to look around and make sure his company is prepared – positioned — for economic recovery. With the risk of being redundant, here is a brief “Pre-Recovery” checklist for the jeweller – or any businessman for that matter. His firm should hit the ground running. Created an Analytics Initiative. By now, he has placed all data-collection and analysis under one executive with proper technological support. He has by now, based buying and strategic decisions on analytics – empirical evidence – and not on faulty information or wishful thinking. In the ‘old days’ as recently as 2006, decisions were made on memory and gut feel. Nine times out of ten, decisions we were wrong. Prepared for major changes in the industry. A couple of weeks ago, the Federal Reserve Board decided to buy $1.15 trillion (with a T), in effect putting $1.15 trillion into US circulation. When that happens, maybe not this year, but certainly in 2010-2011, he will be faced with severe inflation. And, as we all know, the price of gold is directly related to inflation. So, if history is any indication, (inflation in 1980 reached 14%, with gold following to $2,296/oz, after adjusted for inflation) he can expect a significant run-up in the price of gold. By now he is planning for that eventuality. Started a Social Network Strategy: YouTube, Twitter, Face Book are just a few players in the exploding social network scene, a vital source of innovation that levels the playing field between small businesses and corporate giants. By now, the jeweller has developed his own social network strategy and model. Announced a promotion that will celebrate the economic upturn. The jeweller has by now, developed new and innovative communication concept(s) announcing the new economy. How about giving something free? Threw out things that have outlived their usefulness. The jewellery manager has discarded unneeded samples, unused desks, meaningless reports, cluttered space and old, inefficient systems. He is ready for action. Invested in updated technology. The jeweller invested in product development, tools, production technology, jewelry design and such. They were cheaper during the recession. Pursued mergers and acquisitions. “History shows the best ‘deals’ are made during downturns,” says Shea Fox, publisher of Jewelry Newsletter International, a Houston.-based publication specializing in mergers and acquisitions of jewelry companies. Since sales and profits are weak during a recession (internal) growth is hard to come by. External growth by M&A is a valuable substitute Refocused his financial model. The downturn changed the way many of his suppliers, bankers and customers think and operate. Successful and nimble jewelers anticipated these changes and adapted their business models to gain an advantage. Here are some other things he has done. ● Communicated, communicated, and then communicated. ● Economically experimented with new systems and marketing programs. ● Maximized market share, by taking customers from struggling, bankrupt or reorganizing competitors. Fashion and Trends 2009-12-11T14:10:21+00:00 http://www.finejewelrynews.com/blog/reader-entry/jewelers-need-to-join-the-technology-revolution/ http://www.finejewelrynews.com/blog/reader-entry/jewelers-need-to-join-the-technology-revolution/#When:15:28:34Z Remember that old line from the Woody Allen movie, “Annie Hall”? “Relationships are like sharks; they move forward or they die.” The jewelry industry has to move forward too or it becomes irrelevant – or at best – an after thought. As we know all to well, consumers are gripped by an “electronic gizmo revolution.” How can – or will – jewelers develop a ‘relationship’ with the revolution, or at worst, capitalize on the sales and profit potential of the movement? How can jewelers develop a framework for electronic innovation in an extremely competitive environment that is changing at warp speed? Several innovative-focused firms – here and overseas — have started their ‘electronic innovation building’. A few come to mind. Paragon Lake (Boston) developed a virtual design/inventory system for jewelry consumers using enhanced computer technology. Dongwoon (South Korea) creatively combines silver jewelry with flash drives. Artco Group (Texas) recently introduced an interactive computer system to produce customized timepieces. These firms – there are others – are technology leaders in an industry (jewelry) which is generally late to use technology to advantage. It’s no surprise that firms that are the first to use – or offer – technology have the potential for considerably higher profits and hold a significant competitive advantage. Just ask Microsoft and Apple. The new technology requires the jeweler to do things differently; this means not only a new approach, but also a refusal to be bound by the old rules that applied in the jewelers of the past. There are several ways to spur innovation in your store: 1. Look outside. When faced with the need to innovate, most jewelers turn to their inside talent. Instead, reach across corporate boundaries to your extended network. 2. Mobilize passionate individuals. There are likely customers out there who are passionate about your designs, ideas, or store. Find these people and connect with them so you can use their ideas to innovate. 3. Embrace new technology. Look to younger generations of employees to see what technologies they are using. Support and embrace these technologies as they may be the source of your next innovation. 4. Purchase Technology from outside the industry. It is no surprise that other consumer product industries have innovative marketing, inventory or administrative systems. Keep your eye open for these systems for purchase. This is, of course, may be the simplest and easiest (did I hear cheapest) technology that could be acquired. 5. Licensing. Certain marketing technologies that are not easily purchased can be licensed for a fee. TV producers license their programs (through simple V-chips), for a royalty. This is especially effective if the program stars a personality which appeals to your target consumer. 6. Trade Technology: A jewelry retailer could contact a cosmetic retailer and exchange (trade) technology applications such as inventory control terminals and in-store marketing deliverables. 7. Partnerships and joint ventures. Jewelry stores from around the country could form partnerships or joint ventures to pursue or design specific new technology. (Jewelers now use these partnerships in volume purchasing arrangements). These are of course, risks associated with developing an aggressive innovative technology campaign. There are higher costs, necessary customer education, time constraints, quality issues and competitive issues that frequently de-rail the innovative process. But in the current technological environment, can the jewelry afford to let the opportunity pass? Fashion and Trends 2009-12-05T15:28:34+00:00 http://www.finejewelrynews.com/blog/reader-entry/things-are-looking-up/ http://www.finejewelrynews.com/blog/reader-entry/things-are-looking-up/#When:02:17:01Z By all signs, (leading economic indicators, consumer confidence, stock market averages and a slew other measures), the painful recession of 2008-2009 may have bottomed out. But the big question remains: will the jewelry industry ever return to the ‘good old days’ of increasing sales and robust profits? It’s no secret that this was not the first time companies weathered an economic storm. In fact, many firms survived – although some precariously – in economically challenging time. Others even thrived to become household names. Who are they and how did they do it? Here are a few we all recognize. • Heinz Co. Founded by Henry Heinz who quickly went ‘belly-up’ during a banking crisis, (much like the one earlier this year). He was back at it again three months later. He led through product innovation, figured the demand (need) for his product and, of course, managed his cash flow, (partly by selling his parents’ furniture). • Procter & Gamble Co. During the Great Depression, the company decided to market, market and market some more. P&G became the first company to market on radio, which was like the internet of its time. P&G also decided to sponsor little radio dramas, later to be called ‘soap operas’. Their lessons were simple: product innovation and market heavily during downturns. • International Business Machines. During the great depression, Tom Watson, the IBM Chairman, decided to invest heavily in research and development, while competitors were in fact cutting R&D costs. By luck or premonition (some say inside information), the Social Security Act (1935) created an enormous new market which IBM served. Watson set an example of leadership, entrepreneurship and insight. All three (the “Big-Three”) exited “their” financial crisis to become world-class corporations. While there are few similarities between these giants and the jewelry company of today, there are, nevertheless, a few lessons we can learn from them. Surprisingly, each company, through dedicated leadership, had similar success strategies, namely product innovation and skillful marketing. (As an aside, an unusual amount of good luck supported the three exceptional performances.) “Every exit,” says William Bridges, (Managing Transitions, Da Capo Press 162 pages), “is an entry to somewhere else.” That ‘somewhere else’ can be – and often is — years, decades, of uninterrupted growth and prosperity. The jeweler of today is thankfully exiting the 2008-2009 recession and entering a potentially prosperous future. It is not be too late for jewelers to position themselves to capture this coming prosperity by combining the lessons of the ‘Big-Three’ — marketing and product innovation — with today’s ‘scientific management’. Marketing: The ‘Big-Three’ used intuitive marketing to propel them in difficult times. Instead of luck, premonition or who knows what else, the jeweler now has a long list of scientific tools to measure product demand. Marketing has become scientific. While his customer base has become segmented, (i.e. The Greatest, The silent Majority, Baby Boomers, Gen X, Gen Y, Millennial), the jeweler has the ability, through scientific analysis, modeling, productivity analysis, probability theories, you name it, to measure how each segment values a particular design or style. One such tool, called Conjoint Measuring, for example, measures, via computer analysis, the relative importance of marketing factors, (price, design, packaging, whatever), for each design. The ‘Big-Three’ also had an ability to segment their marketing media. P&G in particular was astute enough to select radio as an advertising media. Similarly, leaders in the jewelry industry were shrewd enough to use the internet to market and even sell their designs and brands. Product: Without a saleable product, of course, nothing is sold. The Big-Three developed exciting and profitable products – some are still around. This offers an important lesson for the modern jeweler. While jewelry designs have generally grown in beauty and creativity, little has changed intrinsically. The computer – technological – revolution is steaming ahead with jewelry on the sideline. As one wag wrote recently, “When the technology train came in, jewelers were at the airport.” Let’s be honest, the jewelry industry will never grow as fast as technology companies. The demand for jewelry will always be single digit but not (never?) at the stratospheric levels of other products. How can jewelers ever develop exciting products demanded by virtually all market segments? In the scheme of things, jewelers have to board – in some way – the technology train. They must swallow hard take a breath make tough decisions, They must find a way to combine technology with design. Please stand by. Resources and Advice 2009-11-09T02:17:01+00:00 http://www.finejewelrynews.com/blog/reader-entry/things-to-consider-when-purchasing-gemstone-jewelry/ http://www.finejewelrynews.com/blog/reader-entry/things-to-consider-when-purchasing-gemstone-jewelry/#When:22:48:53Z There are many factors that determine the price of any jewelry piece. The type of metal the item is crafted in, the type of gemstone(s) it features, and the quality of craftsmanship are usually most important. When purchasing gemstone jewelry pieces there are several things to consider. Obviously, the type of gemstone in the piece can have an enormous effect on its price, as some gemstones are more precious or rare than others. Naturally mined, genuine gemstones are usually more expensive, although lab-created and synthetic gemstones are usually flawless and have more vivid colors. It‘s also important to know that dealers may sometimes say that an item is “created” or “synthetic” when in actuality it is simulated. Simulated gemstones are glass, rhinestones, or any other material that is made to look like a genuine gemstone. A simulated gemstone does not have the same composition and properties as a natural gemstone, whereas lab-created and synthetic gemstones do. Another factor that affects the price of a gemstone jewelry piece is the size and quality of the gem. As with diamonds, the majority of gemstones are measured in carats. The higher the carat weight, the larger the stone, and the more valuable it is. And although no natural gemstone is flawless, noticeable scratches, chips or inclusions will lower the value of an item. Another thing to keep in mind is that jewelry prices vary immensely. Precious metals prices change from day to day, as do prices of many precious stones, such as Tanzanite. The timing of your purchase could affect the price of your item as much as anything else. And of course each retailer may have a different mark-up, so shopping around is always a good idea. In the end, the most important thing by far is that you‘ll be happy with your purchase for years to come! If you‘re anything like me, when you find that piece of jewelry that you instantly fall in love with, nothing else matters! For more detailed information about Gemstones, Gem Cuts, and more visit the Jewelry Info Page in the CarterTradingCo.com Online Jewelry Store.There are many factors that determine the price of any jewelry piece. The type of metal the item is crafted in, the type of gemstone(s) it features, and the quality of craftsmanship are usually most important. When purchasing gemstone jewelry pieces there are several things to consider. Obviously, the type of gemstone in the piece can have an enormous effect on its price, as some gemstones are more precious or rare than others. Naturally mined, genuine gemstones are usually more expensive, although lab-created and synthetic gemstones are usually flawless and have more vivid colors. It‘s also important to know that dealers may sometimes say that an item is “created” or “synthetic” when in actuality it is simulated. Simulated gemstones are glass, rhinestones, or any other material that is made to look like a genuine gemstone. A simulated gemstone does not have the same composition and properties as a natural gemstone, whereas lab-created and synthetic gemstones do. Another factor that affects the price of a gemstone jewelry piece is the size and quality of the gem. As with diamonds, the majority of gemstones are measured in carats. The higher the carat weight, the larger the stone, and the more valuable it is. And although no natural gemstone is flawless, noticeable scratches, chips or inclusions will lower the value of an item. Another thing to keep in mind is that jewelry prices vary immensely. Precious metals prices change from day to day, as do prices of many precious stones, such as Tanzanite. The timing of your purchase could affect the price of your item as much as anything else. And of course each retailer may have a different mark-up, so shopping around is always a good idea. In the end, the most important thing by far is that you‘ll be happy with your purchase for years to come! If you‘re anything like me, when you find that piece of jewelry that you instantly fall in love with, nothing else matters! For more detailed information about Gemstones, Gem Cuts, and more visit the “Jewelry Info Page”:http://www.cartertradingco.com/jewelryinfo.html in the “CarterTradingCo.com”:http://www.cartertradingco.com “Online Jewelry Store.”:http://www.cartertradingco.com Resources and Advice 2009-11-02T22:48:53+00:00 http://www.finejewelrynews.com/blog/reader-entry/the-recession-of-2008-2009/ http://www.finejewelrynews.com/blog/reader-entry/the-recession-of-2008-2009/#When:03:07:26Z It should be no surprise to anyone that the world economy (or any country’s economy for that matter) is subject to fluxuations. When The Business Cycle, as it is called, expands, income and employment grow, and everyone is happy. On the other hand, when the economy contracts for two or three successive quarters, (as it’s doing now), the financial system is in recession. Jobs are eliminated and everyone worries. This expansion-to-contraction cycle takes, on average, 7+ years. All governments — Obama included — try to shrink the time between contraction and expansion, but, no matter how hard they try, cannot eliminate it altogether. The Business Cycles is an economic fact of life This begs the question: Since seasoned governments, as well as jewelers, have navigated the recession of 2001 – 2003, why were so many unprepared – even shocked — at the current recession? The answer is straightforward. They didn’t learn the lessons of 2001-2003 and worse, ran their governments and companies at Status Quo. Anyway, I called my business school professors at Harvard University and New York University to see if there was anyway for jewelers to capitalize on this miserable business environment. Here are some of their thoughts. a) Communicate, communicate and then communicate. b) Lead from the front. Your team needs to see their leader. c) Experiment, experiment and experiment but do it cheaply. d) If possible, a recession is a great time to steal (er, take) market share, especially from competitors going out of business or restructuring. e) Great fortunes have been made in bad times – don’t stand still. f) Have courage to make the tough decisions (layoff, firings, closings). B. Pursue Mergers and Acquisitions. History shows that the best M&A ‘deals’ are made during downturns, generating up to 50% more value than during more ‘normal’ times. Closely monitor the financial and operational health of your competitors – in the jewelry industry or not. Companies lacking the financial resources to stay afloat may welcome your advances. Companies adopting a comprehensive approach to protecting their existing business and taking proactive steps to grow during the current storm, will not only be positioned to safeguard their operation but get a jump on the competition as well.It should be no surprise to anyone that the world economy (or any country’s economy for that matter) is subject to fluxuations. When The Business Cycle, as it is called, expands, income and employment grow, and everyone is happy. On the other hand, when the economy contracts for two or three successive quarters, (as it’s doing now), the financial system is in recession. Jobs are eliminated and everyone worries. This expansion-to-contraction cycle takes, on average, 7+ years. All governments — Obama included — try to shrink the time between contraction and expansion, but, no matter how hard they try, cannot eliminate it altogether. The Business Cycles is an economic fact of life This begs the question: Since seasoned governments, as well as jewelers, have navigated the recession of 2001 – 2003, why were so many unprepared – even shocked — at the current recession? The answer is straightforward. They didn’t learn the lessons of 2001-2003 and worse, ran their governments and companies at Status Quo. Anyway, I called my business school professors at Harvard University and New York University to see if there was anyway for jewelers to capitalize on this miserable business environment. Here are some of their thoughts. a) Communicate, communicate and then communicate. b) Lead from the front. Your team needs to see their leader. c) Experiment, experiment and experiment but do it cheaply. d) If possible, a recession is a great time to steal (er, take) market share, especially from competitors going out of business or restructuring. e) Great fortunes have been made in bad times – don’t stand still. f) Have courage to make the tough decisions (layoff, firings, closings). B. Pursue Mergers and Acquisitions. History shows that the best M&A ‘deals’ are made during downturns, generating up to 50% more value than during more ‘normal’ times. Closely monitor the financial and operational health of your competitors – in the jewelry industry or not. Companies lacking the financial resources to stay afloat may welcome your advances. Companies adopting a comprehensive approach to protecting their existing business and taking proactive steps to grow during the current storm, will not only be positioned to safeguard their operation but get a jump on the competition as well. Resources and Advice 2009-08-16T03:07:26+00:00 http://www.finejewelrynews.com/blog/reader-entry/mergers-acquisitions-and-the-jewelry-executive/ http://www.finejewelrynews.com/blog/reader-entry/mergers-acquisitions-and-the-jewelry-executive/#When:11:33:01Z The concept of acquiring a company, merge with another, develop a formal alliance, establish a joint venture – the forms of cooperation are endless – are as effective a tool as brand strategy or product merchandising – just a little more complicated. Mergers and Acquisitions (M&A) in the jewelry industry are rare but it is ‘Musical Chairs’ in others. M&A is an extremely specialized field with explicit techniques needed to do it right. I am by no means an expert (I ended up owning my first jewelry company through acquisition), but M&A might be a perfect tool for a jewelers’ need for growth, downsizing, diversification, dissolution, sources of supply…or whatever. Just as you use an accountant to keep the books and use a lawyer to keep you out of court, you use an M&A Specialist to guide you through the M&A process. They help you find a buyer (or seller), structure the type of acquisition (or merger), form the structure of the ‘deal’ and so on. Before you start the process, you should decide for yourself why you want to sell your company, or buy one. Here’s a short list of five — that could be extended to 45. • Retire: You have been in the industry for decades and want to retire. Your kids don’t want to be in the business. • Liquidate: You have all your assets in the business, want to liquidate and get your estate in order. • Growth: The opportunity for ‘Internal’ (also known as organic) growth is limited – or slow. The only way to grow quickly is through ‘External” growth, namely, acquisition. • Diversification: Your market area for gold and diamond jewelry is saturated. You would like to find a firm that sells complementary products, like silver jewelry, accessories and the like. • Improve Financial Performance: A fast way to boost sales and profits is to acquire a “bolts-on” company that fits neatly into your existing markets.The concept of acquiring a company, merge with another, develop a formal alliance, establish a joint venture – the forms of cooperation are endless – are as effective a tool as brand strategy or product merchandising – just a little more complicated. Mergers and Acquisitions (M&A) in the jewelry industry are rare but it is ‘Musical Chairs’ in others. M&A is an extremely specialized field with explicit techniques needed to do it right. I am by no means an expert (I ended up owning my first jewelry company through acquisition), but M&A might be a perfect tool for a jewelers’ need for growth, downsizing, diversification, dissolution, sources of supply…or whatever. Just as you use an accountant to keep the books and use a lawyer to keep you out of court, you use an M&A Specialist to guide you through the M&A process. They help you find a buyer (or seller), structure the type of acquisition (or merger), form the structure of the ‘deal’ and so on. Before you start the process, you should decide for yourself why you want to sell your company, or buy one. Here’s a short list of five — that could be extended to 45. • Retire: You have been in the industry for decades and want to retire. Your kids don’t want to be in the business. • Liquidate: You have all your assets in the business, want to liquidate and get your estate in order. • Growth: The opportunity for ‘Internal’ (also known as organic) growth is limited – or slow. The only way to grow quickly is through ‘External” growth, namely, acquisition. • Diversification: Your market area for gold and diamond jewelry is saturated. You would like to find a firm that sells complementary products, like silver jewelry, accessories and the like. • Improve Financial Performance: A fast way to boost sales and profits is to acquire a “bolts-on” company that fits neatly into your existing markets. Inside the Industry 2009-07-07T11:33:01+00:00