Let’s ‘Rock & Gold’

This is one of a series of articles by Mónica Arias of Excellence Consulting, a luxury sales and marketing consulting firm based in Buenos Aires, Argentina. These articles will focus on ways that sales and marketing professional in the jewelry and luxury industries can improve their techniques.

Gold has a story, legacy and beauty of its own that’s managed to survive through the ages and whose mystery is still attracting hot genuine value as the number one preference of investors worldwide.

At the same time our beloved earth has also been gracefully producing beautiful and valuable diamonds and gemstones since ancient times for us to appreciate and admire.

The moment jewelry makers discovered the art of joining the two they set the foundations for a fantastic and alluring business, as if declaring: “Let´s rock and gold,” long before Elvis ever existed.

Why is the combination of gold and stones so appealing?
There is no conclusive answer. Rocks and gold simply look fantastic together. The simplest set of earrings can make all the difference if designed elegantly, respecting a true balance between the metal and the stones.

But this is too simple a statement because we are leaving aside the main elements to this gold and rock success: As in the movement once presided by Elvis, the revolution of Gold & Rock is directly associated with intense color. Magic comes out of brilliant colors in full vibrancy of grades which produce the fascination that comes from choosing a jewel we love.

As an example, let´s take rubies. According to many experts, rubies, which mainly come from Myanmar and Thailand, are considered to be the most powerful gems in the universe, usually associated with astral signs and protection to the living. Its magical influence is associated with life force, passion and love. It’s been said that to own a ruby is to have contentment and peace. And when rubies are set in gold they are considered the symbol of vitality and royalty.

However, what is even more striking and fascinating about rubies is their wide range of color, which varies from slightly vermilion to intense red, with the most desired and valuable being the famous “pigeon´s blood” tone.

It’s amazing to have such a wonderful description of meanings and features to help us make the most appropriate connection with the jewel. So wouldn´t you agree that you could literally add value to your demonstration if your customer showed a certain inclination to one of these features?

Whenever possible, do yourself a favor. Next time you are in front of a client, try to Rock & Gold a bit before making any demonstration. In other words, seriously, make the effort to express your true passion for gemstones and gold.

Ask the customer as many open questions about them as you can (see the “open question parade,” which appears in most of my articles). Then begin working towards influencing what you perceive as their preferences by associating the exact feature of the piece that will make the strongest impact in your customer. Trust me, the rock and gold tactic will help you see through your customer’s real passion about a particular piece and you will celebrate a long-term sales bliss after having investigated further on Rock & Gold and its infinite benefits. I am sure Elvis will give a thumbs up.

Mónica M. Arias
Excellence Consultant: Helping you discover how to reach your next level through excellence.
contacto@monicaarias.com.ar
copyright: Mónica M. Arias

Lauren Bacall Auction to Include Jewelry by Schlumberger, Elizabeth Gage, Tiffany, Chanel and Cartier

Lauren Bacall wearing two 18k yellow gold ropework bracelets
 on the same wrist, designed by Jean Schlumberger for Tiffany & Co. Photo credit: NBC/NBC via Getty Images

Lauren Bacall is known for her beauty, her distinctive voice, her high-profile marriage to actor Humphrey Bogart and her impeccable taste. She was less known for her jewelry collection.

Two 18k yellow gold ropework bracelets by Jean Schlumberger with pre-sale estimates of $5,000 - $7,000 and $6,000 - $9,000. The actress was frequently pictured wearing the bracelets together (see top photo), layered on the same wrist. 

However, more than 30 items of the late actress’s jewelry will be part of the extensive 700-lot auction of the “Lauren Bacall Collection,” being offered by Bonhams New York on March 31 and April 1. It will include pieces by Chanel, Cartier, Tiffany, as well as her personal favorite, French jewelry designer Jean Schlumberger (1907-1987).

“Her jewelry was unique in that it reflected her personal taste and the fact she was very sentimental,” Susan Abeles, Bonhams’ head of Jewelry in the United States, said in a recent interview. “The pieces offered are timeless, understated and classic in design and represent the sophistication and glamour of a true Hollywood legend.”

Lauren Bacall wears Elizabeth Gage Camel Brooch while attending the Juvenile Diabetes Foundation Promise Ball Benefit Gala on
November 10, 1990, at Waldorf Astoria Hotel in New York. Photo credit: Ron Galella, Ltd.

Abeles, who has been spending a great deal of time researching the life of Lauren Bacall to prepare for the auction, said the actress “didn’t have a tremendous amount of jewelry.” But the collection of rings, bracelets, brooches and earrings had personal significance.

The Elizabeth Gage Mogul-inspired Camel Brooch is made of 18k yellow gold enamel, cultured pearl, and rose diamond. It has a pre-sale estimate of $5,000 - $7,000.

For example, Abeles showed me a Tiffany & Co. gold necklace with dangling gold hearts. Each heart has a letter that spells out the phrase, “To my own beautiful star from my proud director Ron.” Abeles said that she believes the necklace was a gift from Ron Field, who directed Bacall in the Broadway play, “Applause.” Both Bacall and Field won Tony awards for their parts in the play.

Tiffany & Co. 18k yellow gold necklace necklace, each dangling heart has a letter that spells out the phrase, “To my own beautiful star from my proud director Ron.” It is believed that the necklace was a gift from Ron Field, who directed Bacall in the Broadway play, “Applause.” Both won Tony awards. It is shown with a gold pocket watch.

Although it isn’t documented Abeles is certain that Bacall and Schlumberger were friends. Bacall purchased many of her most prized Schlumberger pieces in Paris, where the designer lived and worked.

“I do like that she had a relationship with the designer,” Abeles said. “She had a great thirst for knowledge.”

A sampling of the Schlumberger pieces that are up for auction at Bonhams.

Standout Schlumberger pieces from the collection (all pictured above) include an 18k yellow gold and blue enamel bangle bracelet (estimate $20,000 - $30,000); an 18k yellow gold, diamond, amethyst and turquoise ring designed by Schlumberger for Tiffany & Co., (estimate $8,000 - $12,000); and a pair of amethyst, sapphire and emerald ear clips, mounted by Schlumberger (estimate $6,700 - $8,500).

Perhaps Bacall's most icon jewelry pieces are two 18k yellow gold ropework bracelets, (estimate $5,000 - $7,000 and $6,000 - $9,000). The actress was frequently pictured wearing the bracelets together, layered on the same wrist (top two photos).

Bacall also had personal relationships with other jewelers. One auction highlight is a Mogul-inspired, 18k yellow gold, enamel, cultured pearl, and rose diamond camel brooch by the British jeweler, Elizabeth Gage, (estimate $5,000 - $7,000). The brooch is accompanied by the original drawing and correspondence from the jeweler, which reveals collaboration and friendship between the two.

“Bacall’s style was unmistakably her own,” Abeles said. “Her jewelry collection represents a woman who knew her own style—one who wore the jewelry rather than the jewelry wearing her. Pieces that might have overshadowed another woman perfectly complemented her beauty.”

Another highlights of the sale is a pair of diamond and grey South Sea cultured pearl ear pendants by Elsa Peretti for Tiffany & Co (estimate $4,600 - $6,700). 

Lauren Bacall

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Who Bought What at the Elizabeth Taylor Auction and Why

 I’ve never thought of my jewelry as trophies. I’m here to take care of them and to love them – Elizabeth Taylor

After viewing one of the most complete and magnificent private collections of jewelry, art, memorabilia, accessories and other articles ever amassed by a single person during The Collection of Elizabeth Taylor exhibition at Christie’s New York, I wrote the following:

This collection represents a life well spent. Christie’s presentation of the exhibit makes it seem as if her life’s work was complete.

It’s almost a shame that these items will soon be separated.

However, after attending the two days of the fine jewelry sales (part of the four-day Elizabeth Taylor auction at Christie’s New York along with an “online only” component), my mind has changed.

I met friends of Taylor and those who never knew her. I met people who purchased the product because of their ties to Taylor, because of their fascination with a particular piece, or to use what they purchased in their business. It was auction that attracted some of the world’s wealthiest people, celebrities, top professionals in the jewelry and gems industries, and those of modest means.

Bidders prepare for the opening night auction to begin. Photo credit: Anthony DeMarco

The jewelry and other items amassed will be used in all sorts of ways. The important part is that it appears that the jewelry will be used and that’s the way Taylor, it seems, would have wanted it. After all, this is a woman who wore a 33-carat diamond ring almost every day and who was filmed wearing a priceless ruby jewelry collection by the pool. Taylor didn’t put her baubles away for special occasion, she wore them. And her collection showed an appreciation of priceless pieces along with far less expensive items because she either admired the work or they had personal meaning.

Photo credit: Christie's

Jewelry designer to the stars Lorraine Schwartz bought back the fringe diamond bracelet that Taylor bought from her for her 70th birthday.

“I was wearing it for her party at the Bel-Air Hotel, and she kept calling me over to look at it and to try it on,” Schwartz wrote on her facebook page. “Finally, the next morning she called me and said “‘I know who’s buying that bracelet for my birthday … I’m buying it for my birthday!’”

Photo credit: Christie's

Schwartz also bought a pair of earrings that Taylor’s third husband, Michael Todd, created just for her.

“I could feel Elizabeth nudging me telling me to buy them,” Schwartz said on the auction floor during the second day. “That’s what she used to do. She used to say, ‘go ahead buy it.’ She’d be kicking me under the table (saying), ‘Go ahead. You know you want it.’”

Photo credit: Christie's

Schwartz was very busy for the two days. In addition to what she purchased she lost a bid for one of her pieces and purchased a lot of three of her own bangles for Kim Kardashian, who paid $64,900, well above the high $8,000 estimate. “If you have a piece of jade, the energy goes into the piece and you absorb the energy,” Kardashian said by phone. “So I can feel Elizabeth in the piece.”

Photo credit: Christie's

Companies of course got into the act for the larger pieces. The 33.19-carat Elizabeth Taylor Diamond (also known as the Taylor-Burton diamond and formerly called as the Krupp diamond), a gift from Richard Burton, was reportedly bought by South Korean businessman Daniel Pang for $8.8 million. He was bidding on behalf of E-land World, a South Korean concern. The company plans to exhibit the diamond ring at “E World,” an amusement park in Daegu, according to reports.

Photo credit: Christie's

Bulgari, the Italian luxury jewelry house, bought back $20 million worth of jewels, including a 52.72-carat sapphire-and-diamond sautoir for $5.9 million and an emerald-and-diamond necklace for $6.1 million, according to the New York Post.

Photo credit: Anthony DeMarco

Then there’s the paper jewelry. The gag gift from Malcolm Forbes to Taylor has garnered a great deal of media attention—much of it from me. The suite of paper jewelry had a high estimate of $300. It sold on the second day for $6,875. It was purchased by Jenny and John Caro, owners of Jewelry By Design, an independent jewelry store in Woodbridge, Va.

The couple came to the auction with a $50,000 line of credit and in a few minutes it was obvious they were being priced out of buying any real jewelry. So when the paper jewelry came up on the second day, they went all out to win the lot. The couple is using the paper jewelry along with two jewelry pieces they purchased on the online only auction to create an Elizabeth Taylor display for their customers. The jewelry was chosen because they had pictures of Taylor wearing the pieces in books that will be used in the display.

“We’re a good example of a business doing things, being different and taking risks to help our business grow,” Jenny said in a phone interview.

“You couldn’t go by the intrinsic value of jewels, because the truth is everything was selling so high that what you bought you couldn’t turn around,” she added. “The South Korean who bought the Burton diamond bought it for a business reason. What is $8.8 million when it comes to advertising worldwide? What’s $6,800 when it comes to local advertising?”

Using the Forbes gift as inspiration, Christie’s created its own full-color paper jewelry book with recreations of 15 of Taylor’s most iconic jewels. It ran as a limited edition of 5,000 and was available for purchase in person at Christie’s headquarters during the New York exhibition, which was held December 3 -12. It was sold for $25 each, $5 of which went to the Elizabeth Taylor AIDS Foundation.

Los Angeles jewelry designer Sandra Müller had her own unique story. She first met Taylor as a child while living in Europe and credited the actress with inspiring her to build a life in the jewelry field. Taylor was a friend of her parents. As an adult working and living in Los Angeles, she said she would visit Taylor’s house often as a friend and to show her work. In 2001, Taylor bought three of her pieces.

Müller was already planning to go to the auction to bid for a client. While looking through the auction catalog, she discovered that those pieces were being sold as part of the fashion and accessories auction, held on the third day. Her pieces didn’t include her as the creator. She contacted Christie’s and the auction rectified the error.

The high estimate for the jewels was $300. Müller e-mailed me to let me know that her pieces sold for $15,000. With commission the total was actually $18,750.

“The 18k gold value alone would be about 10,000.00 if melted,” she added. “I think it was one of the few good deals in auction.”

I asked her how it felt to sit in the auction room and watch her pieces being sold at the historic event. Her reply was brief.

“Thrilled”

Matie Anne Patterson Gatz, 64, JCK Art Director

For nine years I worked at JCK Publishing Group and most of those years were good. One of the reasons was because of Matie Anne Patterson, who was one of our two art directors, a position she held from 1998 till 2004. Matie died December 27, on her wedding anniversary, after a long battle with breast cancer. She was 64.

The Telford, Pa., resident worked on several JCK publications, including Trendz, Luxury International, and Facets. Hedda T. Schupak, former JCK editor-in-chief, said that Matie’s “clean design sense and tireless efforts created a sharper, more elegant” look for the publications.

I remember Matie as a quiet and strong person who was able to create sleek, stylized pages for her publications. During the past few days, those who worked with her have been talking about her smile, which was a constant part of her personality. Matie fought breast cancer in the same way she took on her daily tasks in the office—quietly, with strength, dignity and with a smile.

Matie was born in Upland, Pa., on March 5, 1947, to William and Wilhelmina "Billie" Patterson, the founders of Patterson Funeral Home in Media, Pa, now Cavanagh-Patterson. She attended the Media Public Schools and graduated in 1965. Upon graduating from high school, she enrolled in the Moore College of Art and Design in Philadelphia, majoring in illustration. During her career, she worked as an art director, designer, and illustrator at North American Publishing Co., InterMed Communications on nursing journals, before working for JCK.

She enjoyed traveling with her husband, as well as dancing, snorkeling, swimming, attending minor league baseball games, gardening, and decorating her home. Family and friends will remember Matie for her endearing sense of humor, compassion, calmness, and extraordinary artistic ability.

Survivors include her husband David Gatz; his children and grandchildren; brother William "Pat" Patterson of Livermore, Calif; cousin John Suplee of West Chester, Pa; and many friends. Visitation/Service will be held on Friday, December 30, at Cavanagh Patterson Funeral Home in Media, Pa. Calling hours are 10 to 11 a.m. with a service to follow at 11 a.m.

Fire Destroys Swatch Group ETA Workshop

The Valjoux 7750 or ETA 7750 is a widely used chronograph movement.  Photo credit: Wikipedia

A Sunday morning fire completely destroyed the Swatch Group's ETA workshop in Grenchen, Switzerland, the company said in a statement. No one was harmed as the facility was not in operation. 

The fire broke out at approximately 8:45 a.m. at the galvanic department of the main building and was under control at 9:30 a.m., Swatch Group said. The fire did not spread to other buildings in the complex, which contain other Swatch Group watch production subsidiaries.

"Thanks to the swift and efficient intervention of the ETA-internal fireworkers and the fireworkers of the town of Grenchen, the fire could not expand to the neighboring workshops," Swatch Group said in its statement.

The reason for the fire is not yet known, Swatch Group said, adding that it's too early to place a price tag on the damage. Company officials did not say how this will impact production. Local police informed nearby residents due to the heavy smoke. 

ETA is a subsidiary of Swatch Group. It designs and manufactures mechanical and automatic watches and watch movements. It is best known as the supplier of the overwhelming majority of movements found in Swiss watches.

Swatch Group Ltd., Biel, Switzerland, designs, manufactures, distributes and sells finished watches, watch movements, watch components, electronic systems and jewelry.

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Richline Group Acquires Rio Grande

Fine jewelry manufacturer and marketer, Richline Group, Inc., said Friday that it has acquired Rio Grande, effective Jan. 1, 2013.

Rio Grande, an Albuquerque, N.M.-based company founded in 1944 by Saul Bell, is an international distributor of jewelry making equipment, jewelry packaging and displays, and other jewelry related products for jewelry designers, manufacturers and retailers. It remained family owned and operated under the Bell Group, Inc. Meanwhile, Richline Group, a wholly-owned subsidiary of Warren Buffet's Berkshire Hathaway Inc., is a multi-national holdings company of jewelry manufacturers and distributors. 

Under the new corporate structure, Alan Bell and Molly Bell will remain to run the company as president and executive VP, respectively, Richline said in a statement. Eddie Bell will continue to oversee the Santa Fe Symposium and Neutec. The Santa Fe Symposium is an annual gathering of jewelry industry professionals involved in cutting-edge technology in jewelry making who share their insights with in-depth papers. Neutec, also included in the acquisition, is a manufacturer of lost-wax jewelry casting equipment (grain-making and casting machines), laser-welding machines, as well as the accessories and supplies that support them.

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Last Surge Boosts Holiday Sales Past Last Year's Total

Late holiday shoppers—in the week leading up to Christmas and on the day after—provided the boost to lift 2011 holiday sales past the same period last year, according to data released Wednesday.

Consumers spent approximately $44 billion in GAFO retail sales for the week ending Dec. 24, a 37.8 percent increase over the previous week and a 14.8 percent gain over the same week last year, according to ShopperTrak, which provides traffic counting services at retail stores and malls. Foot traffic was also high, increasing 32.4 percent from the prior week.

GAFO is derived from the U.S. Commerce Department's and stands for general merchandise, apparel, furniture, sporting goods, electronics, hobby, books and other related store sales.

Last week’s sales increase ensured this December will outpace December 2010. Month-to-date figures are up 4.7 percent over December 2010, the Chicago-based firm said.

“With good weather in most of the country and the season coming to a close, procrastinators and bargain hunters hit the stores and gave retailers the sales lift they needed to outpace last year,” said ShopperTrak founder Bill Martin

According to ShopperTrak, a late holiday shopping surge is not uncommon. Last year, the 10 days before Christmas accounted for 24.4 percent of total GAFO retail sales in the entire holiday shopping season of November and December.

“Increased foot-traffic does not always translate into sales,” added Martin. “Retailers who monitored their foot-traffic hourly and adjusted inventory and staffing to convert shoppers into buyers were the most successful last week.”

As expected, shoppers came out in full force on the day after Christmas because it fell on a Monday for the first time in six years. The day ranked fourth in foot-traffic and sales for the entire holiday season, behind Black Friday November 26, Friday December 23 and Super Saturday December 17. Foot traffic increased 25.9 percent over the same day last year and consumers spent $7.1 billion on Dec. 26 in GAFO retail sales, an increase of 25.5 percent percent over the same day in the prior year.

“Dec. 26 was likely the last door-buster day of the season as shoppers returned unwanted gift items and shopped for marked-down merchandise,” said Martin. “ShopperTrak expects a drop in sales this week as the season ends. Retailers must continue to monitor same-store traffic to capitalize on the final week of the holiday season.”

ShopperTrak analyzed foot-traffic from more than 25,000 locations in the United States to create this National Retail Sales Estimate of GAFO—a nationwide benchmark of GAFO retail sales.

Weekly Holiday Internet Retail Sales Up 16%

The most recent week for holiday Internet sales, ended Dec. 25, saw a 16 percent increase in spending, year-over-year, to $2.8 billion, according to comScore, a company that measures digital data and provides digital business analytics.

The figure is an expected steep drop from the record-breaking $6.28 billion for the prior week, ended December 18, the last week where delivery of online orders could be guaranteed.

Retail e-commerce spending for the first 56 days of the November – December 2011 holiday season reached a record $35.3 billion, marking a 15-percent increase versus the corresponding days last year. This increase has been consistent throughout the holiday season.

“Holiday e-commerce spending has remained strong throughout the season,” said comScore chairman Gian Fulgoni. “We can now say with certainty that the $1.25 billion spent on Cyber Monday will rank it as the heaviest online spending day of the season for the second consecutive year, but we should also note that it was accompanied by nine other billion dollar spending days this year.”

The Reston, Va.-based company noted that over the past several years there has been a dramatic increase in Christmas Day purchases of digital content and subscriptions, a retail category that includes digital downloads of music, TV, movies, e-books and apps. As many consumers get new smartphones, tablets, e-readers and digital content gift certificates for Christmas, they spend Christmas Day loading up their devices with new content.

On an average day during the 2011 holiday season to date, digital content and subscriptions accounted for 2.8 percent of retail e-commerce sales, but on Christmas Day the category accounted for more than 20 percent of sales. Consistent with past years, comScore expects sales for this category of products to remain elevated throughout the entire week following Christmas Day.

D.E.F. Supports Flaviana Matata Foundation

The Diamond Empowerment Fund has granted $10,000 to the Flaviana Matata Foundation, which empowers young orphan girls through education, skills training and micro-finance projects in Tanzania.

Founded by fashion model and former Miss Universe Tanzania, Flaviana Matata (pictured left), the FMF seeks to create a future through education and improve livelihoods among the youth in Tanzania.

“When you empower a girl, you empower an entire community,” Matata said. “Providing opportunity for these young girls will encourage others to stay in school and vastly improve their chances for employment and productive livelihoods.”

Matata received the “Face of Africa” award in recognition for her leadership and dedicated service to the African community at the African Diaspora Awards on December 8 in NYC.

The Diamond Empowerment Fund will be hosting its GOOD Awards on January 10 in New York—recognizing leaders who are making a difference in Africa.

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Centurion to Hold Two Keynotes, Two Panel Discussions and Workshops

Jerry Greenfield of Ben & Jerry's

Mike Abrashoff, former commander, USS Benfold

The Centurion luxury jewelry tradeshow will host a pair of keynote speakers who paved two different paths to success. They are Jerry Greenfield of Ben & Jerry's ice cream business and Mike Abrashoff, former commander of the USS Benfold.

Abrashoff, author of It's Your Ship: Management Techniques from the Best Damn Ship In The Navy, will discuss how he took over a ship that went from being rated the worst in the Navy to the best in just one year. Meanwhile, Greenfield will discuss combining an entrepreneurial spirit with social responsibility and a radical business philosophy.

“We think both stories are well worth hearing,” said Howard Hauben, Centurion President.

Centurion also is offering two panel discussions:

* "Financial Management and Your Company," moderated by Don Greig, Focus Business Management Institute. Panelists are John Jackson, Albert S. Smyth Co. and an additional panelists to be announced; and

* "Dealing with The New Hair-Raising Diamond & Gem Fakes Coming into Your Market," moderated by Terry Chandler, DCA. Panelists are Alethea Inns, AGS Labratories; Jim Rosenheim, Tiny Jewel Box; and Dr. James Shigley, GIA.

New at Centurion 2013 are "Limited Edition Retailer Workshops"—in-depth sessions on selected relevant topics with a small class size. Attendees will have the chance to spend some quality time with Centurion's various speakers in an intimate setting with lots of time for questions and brainstorming. Attendees must sign-up in advance as seating is limited. The workshops are:

* "Retailers Sharing Centurion Lines That Work" - Gail Friedman, Sarah Leonard Fine Jewelry;

* "Building a Working Team" - (Commander Retired) Mike Abrashoff;

* "What Do You Do When a Wholesaler Moves into Your Market?" - Jennifer Demmary and Lori
Roberts, Reis Nichols Jewelers;

* "E-mail Marketing-How to Reach Your Clients Today," - Ron Cates, Constant Contact;

* "Technology Show & Tell" - moderated by The Knot’s Laura Cave, featuring retailers Ronda Daily and Ashley Daily,Bremer Jewelry; and Julia Gardner, David Gardner’s Jewelers.

The dates for the invitation-only luxury jewelry show are February 2 (arrival day) through February 6, 2013 (departure day) at an undisclosed location in Scottsdale, Ariz.

For additional information, contact Howard Hauben at hh@h2consult.com or (516) 377-5909.

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Santa Boosts Consumer Confidence Index

The Conference Board Consumer Confidence Index, which surged nearly 15 points in November, increased another nine points in December. The Index now stands at 64.5 (1985=100), up from 55.2 in November. The Present Situation Index increased to 46.7 from 38.3. The Expectations Index rose to 76.4 from 66.4.

The CCI is now at back to levels that it last saw in April when it was at 66 points.

“Consumers’ assessment of current business and labor market conditions improved again. Looking ahead, consumers are more optimistic that business conditions, employment prospects, and their financial situations will continue to get better,” said Lynn Franco, director of The Conference Board Consumer Research Center. “While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes.”

Consumers’ assessment of current conditions improved in December. Those stating business conditions are "good" increased to 16.6 percent from 13.9 percent, while those stating business conditions are "bad" declined to 33.9 percent from 38 percent. Consumers' assessment of the job market was also more positive. Those claiming jobs are "plentiful" increased to 6.7 percent from 5.6 percent, while those claiming jobs are "hard to get" decreased to 41.8 percent from 43 percent.

Consumers' short-term outlook also improved in December, the Conference Board said. The proportion of consumers expecting business conditions to improve over the next six months increased to 16.7 percent from 13.7 percent, while those expecting business conditions will worsen declined to 13.4 percent from 16.1 percent.

Consumers' outlook for the job market was also more favorable. Those anticipating more jobs in the months ahead increased to 13.3 percent from 12.4 percent, while those anticipating fewer jobs declined to 20.2 percent from 23.8 percent. The proportion of consumers expecting an increase in their incomes improved to 17.1 percent from 14.1 percent.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was December 14.

Holiday Online Spending Sets Records

U.S. consumers spent an estimated $36.4 billion on e-Commerce, a 15.4 percent increase over the 2009 holiday season, according to MasterCard Advisors SpendingPulse. However, jewelry, while making year-over-year gains, lagged behind other merchandise categories.

“Today eCommerce accounts for a much larger share of overall retail sales compared to a few years ago. And during this holiday season, it registered double digit growth for 6 out of 7 weeks,” said Michael McNamara, vice president, for the Purchase, N.Y.-based research arm of MasterCard, which measures sales activity in the MasterCard payments network, coupled with survey-based estimates for all other payments.

Apparel sales was the clear leader, accounting for 18.8 percent of total ecommerce sales, compared to 16.9 percent in 2009.

“Online electronics, not surprisingly, also recorded significant gains, while Jewelry, although still in positive territory, lagged behind, McNamara added.

Six days in the 2010 season surpassed $1 billion in sales compared with 3 days in 2009. The top day was November 30, which registered $1.16 billion in sales, followed by Dec. 1, which had $1.13 billion. The Monday after Thanksgiving, known as CyberMonday, a promotion of online retailers, generated $999.3 million in sales, a 25.3 percent increase, year-over-year.

Meanwhile, comScore, which measures consumer online spending, reports that consumers spent $28.36 billion online for the first 49 days of the November – December 2010 holiday season—a 12 percent increase, year-over-year. The most recent week reached $5.5 billion in spending, an increase of 14 percent versus the corresponding week last year. The final shopping weekend before Christmas reached $900 million in retail e-commerce spending, representing a strong 17-percent growth rate versus last year.

Spending growth has remained strong right through the final shopping weekend of the holiday season,” said Gian Fulgoni, chairman of the Reston, Va.-based research company. “The growth rate of 17 percent witnessed during the final weekend capped off the heaviest online spending week of all time at $5.5 billion.”

Buyers Market Show Provides Smart Phone Map for Jewelry Retailers

A digital and customizable floor map is one of several buyer services that will debut at the Buyers Market, Feb. 16-18, 2013, and its annual Jewelry Preview on Feb. 15, at the Pennsylvania Convention Center in Philadelphia.

Premier Jewelers occupy a pavilion together on the show floor but additional jewelry designers are located throughout the hall. In addition, Buyers Market provides gift and fashion products made by nearly 800 U.S. and Canadian studio artists. 

“The combined square footage of exhibitor booths alone is nearly the equivalent of two football fields,” said Rebecca Mercado, show director. “We’re excited to introduce mobile technology to help our buyers find the merchandise they need.”

Retailers who plan to attend the trade-only show can begin charting their course on the show floor through the digital floor map already in place on the Buyers Market’s website. New exhibitors are added weekly and the artists have begun posting their product keywords in the search list.

The website is also where to register. The $35 basic registration fee includes admission for up to four members of a store’s buying staff, plus access to all retailing seminars, fashion shows and Buyers Market events. Pre-registration ends February 11. On-site registration will be $50. To take advantage of discounted rates at Buyers Market contract hotels near the convention center, register before Jan. 25. For customer service call 866.341.2001 or e-mail BMACregistration@jspargo.com.

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Happy Holidays

 

Snowflake earrings from JAR. All the best for you and your loved ones this holiday season.

Happy Holidays

I thought these Harry Winston Large Cluster Diamond Earrings would help us get into the mood of the holiday season. Resembling snowflakes, these earrings use 10 marquise and pear-shaped diamonds, approximately 4.40 total carats; platinum setting with ear clip closure. Length 16.6mm and width 14.4mm.The cost is $53,600 and available at harrywinston.com. There also is a smaller-sized pair of the same earrings.

Wishing everyone a joyous holiday season and good wishes for the coming year.

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Former Tiffany Exec Sentenced To A year In Prison For Stealing $2M From Employer

Ingrid Lederhaas-Okun

In terms of news, it hasn't been a good holiday for Tiffany & Co. Over the weekend the luxury jeweler learned it lost its dispute with Swatch Group. Now, the latest high-profile mishap was the sentencing Monday of a former employee for the theft of 2.1 million in jewelry from the company’s Fifth Avenue headquarters building. 

Of course it's a much more difficult holiday for Ingrid Lederhaas-Okun, a former VP of design & product development at Tiffany & Co., who was sentence to a year and a day in prison in Manhattan federal court by U.S. District Judge Paul G. Gardephe. 

Lederhaas-Okun, 47, of Darien, Conn., pled guilty in July for the theft, which occurred over a four-month period. In addition to the prison term, she was sentenced to one year of supervised release, ordered to forfeit more than $2.1 million pay and more than $2.2 million in restitution.

Under her duties and responsibilities at Tiffany, Lederhaas-Okun had the authority to check out jewelry belonging to Tiffany for work-related reasons. Between November 2012 and February 2013, she admitted to checking out more than 165 pieces of jewelry with a retail value of more than $1.2 million, including diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some if not all of this jewelry for $1.3 million to another company in Manhattan, who the US Attorney’s office and the court haven’t named. It’s also unclear whether the company knew it was purchasing stolen jewelry. 

To conceal her theft, she repeatedly made false statements to Tiffany, according to court documents. For example, after her termination in February 2013, she told company representatives that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation. However, the missing jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by her and there was no presentation on her computer. In addition, she claimed the stolen jewelry could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any such envelope.

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Happy Holidays

Jewelry News Network will be taking a few days off for the holidays. We wish you and your loved ones a holiday filled with warmth and good spirits and a new year filled with peace and prosperity. 

A special thanks to Aneta-Monika Lidogoster for creating this wonderful holiday image.

Anthony DeMarco

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High Jewelry Collection Represents 400 Years Of Family Ownership

This complex, open-work necklace from the Medici collection required what the jewelers described as "new articulation systems" to ensure its beauty and comfort.

The Parisian high jewelry house, Mellerio dits Meller, has spent 2013 celebrating a landmark for longevity that is rarely, if ever, achievable. The luxury jeweler, whose client list over the centuries includes nearly all of European royalty, has been operating under the ownership of the same family for 400 years.

A gold corsage tops this brooch where emeralds and pearls move freely.

It is considered to be the oldest jeweler in the world and the oldest family-owned company in Europe. It has the original books and paperwork to back up those claims in its rich archives, which are kept in its 9 Rue de la Paix boutique and workshop.

The Medici diamond tiara.

The firm, now owned and operated by the 14th generation of the same family, specializes in hand-made jewelry, almost all of it created on premise. The company was founded by the Mellerio family in 1613 in the rural region of northern Italy that borders Switzerland. It was created because of an act of royalty. Specifically, Marie de’ Medici, Queen of France, granted special privileges to the Mellerio family by royal decree, which allowed the family firm to trade throughout much of Europe.

The same diamond tiara shows its versatility by converting into a necklace.

The family began trading in Versailles in 1777, where it attracted the patronage of its most famous client, Marie Antoinette. In 1796, the firm moved to Rue Vivienne, Versailles, retaining the patronage of the Empress Josephine. The firm then moved to Paris eventually settling at 9 Rue de la Paix.

Medici Lush emerald ring

The company opened a second shop in Madrid in 1850 to service the Spanish royal family, including Queen Isabella II. It has a long close relationship with the Dutch Royal Court. It also operates in Luxembourg and Japan.

Medici Lush eight-flower ring

To celebrate its milestone the company created a high jewelry collection named after its founding patron, Marie de’ Medici, which represents the grand history of the royal jeweler.

To create the Medici collection, the family looked into its past using its archives. They also invited well-known jewelry designer, Edéenne, a Canadian native who now works in Paris. She created modern interpretations of jewelry inspired by the old drawings.

The result is a collection of pieces inspired by nature that are sensual, complex and at the same time easy to wear. There are openwork pieces and items made with “grey” gold. There are pieces that are rough in texture, recreating an antique feel. And of course there’s a tiara. In this case one that converts into a necklace, which harkens back to 19th Century jewelry usage.

The company also released a book, in French, chronicling its history, Mellerio dits Meller: Joaillier des Reines, by Vincent Meylan, published by Éditions Télémaque.

I will be writing more about this remarkable company in the coming year.

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Happy Holidays

Jewelry News Network will be taking some downtime over the next few days. Postings will still occur but will be done sporadically through December 27. Enjoy the holidays. 

All the Best,

Anthony DeMarco

The 'Millennials’ Part 2 - insights Into What’s Shaping their Buying Habits

Angelka

By Chris Benham, co-founder and director of Inspired Jewellery Ltd.

Creating a luxury brand amid the information overload on the internet is increasingly becoming a challenge. As jewelry companies look to position themselves for the next generation of purchasers, I took the opportunity to two professionals in their early 20’s (the “Millennial Generation”) to share their views on what’s shaping their buying habits and how they are filtering through the holiday sale season madness.

In part one we heard from Hunter. Now we meet Angelka. They both provide valuable views into what’s important to them and insights into what investment jewelry companies need to make to win their trust and future business.

Angelka:

I think brands need to almost redefine themselves when marketing to millennials. With so much going on in our fast-paced lives, it’s extremely difficult to gain my attention if you’re not doing something interesting and memorable. Price is less of a determining factor, at least in the first instance to gain that attention. Brands and products need to connect with my personal values and lifestyle first and then offer incentives for me to buy their products and remain loyal.

Sustainability may seem like a buzz word to some people, but it is a value that is only going to grow in importance. Brands like The Earnest Workshop build their company ethos around sustainability and creating products that are of high quality, stand the test of time, yet have minimal impact on the environment. It is a company that I only happened to have a chance encounter with, but one that will stay in my mind, and I now enjoy following their progress to see what new pieces of furniture they are making.

Quality is another deciding factor - but genuine quality. Trilogy skincare is an example of a product which, thanks to word of mouth, I know to be of high quality - you can’t get more genuine than the recommendations of trusted peers; therefore I don’t buy anything else, even though there are cheaper alternatives. Add to that their simplistic, natural, organic and sustainable focus, and you’ve got a brand that I love.

The sports and fitness clothing store Lululemon is another example of a brand creating a buzz by aligning themselves with the millennial lifestyle. They advocate a healthy, free-spirited way of living, focusing on making the most of experiences and living in the moment. They offer free yoga and barre classes. Their gear is still pretty expensive so I’m yet to buy anything - but it was top of my Christmas wish list, so they’re doing all the right things.

For me personally, working in marketing, I feed off brands that are doing clever things in the marketing space. Kiwi chocolate brand Whittakers, and Australian brand Mimco are always active on social media, engaging with their customers and above all, leading the trends. That’s another reality - especially for females my age - brands need to be perceived as style and trend leaders, not followers.

I feel that the discount madness is overwhelming and it’s causing me to not buy at all. Each day I receive up to 20 promotional emails - most of them I delete, and I know I should unsubscribe, especially from the daily deal website emails. Even daily deal sites that are focused on high-end offers from the likes of fashion brands don’t get much attention because the background and brand stories are missing. Interestingly, the experience-related deals such as dining out, holidays, flights and accommodation still appeal. We do like to get deals where it matters.

With technology, shopping has become a well-thought out process. Extensive research is carried out for most purchases to narrow down my choice to only a few brands or stores. While price is still a factor, if I didn’t do this research beforehand based on what brands and products appeal to me personally, I’d go out and feel lost amongst all the discounts and promotions going on at the same time. Shopping in general is being replaced by other activities - there is definitely a lifestyle shift amongst people my age to valuing quality over quantity and seeking leisure time activities other than shopping at malls and big retailers.

So while price can still be a determining factor in my daily purchases, brands that want my attention and loyalty need to reach me on a different level. As my disposable income increases, it will be those brands that are top of mind and that I ultimately purchase from, not the brands that are promoting 40% off in tacky flashing lights.

Jewelry News Network guest columnist, Chris Benham, is co-founder and director of Inspired Jewellery Ltd., Wellington, New Zealand, a global creative studio for specialist jewelry design. 

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