Rapaport Magazine - December 2017

Vol. 40 No.12 December 2017

LEAPS &

BOUNDS WHY WOMEN ARE MAKING

GREAT STRIDES IN THE INDUSTRY

KingNews of Bling

Millennials are lining up Meet celebrity tojewelry get a taste of the designer Stephen Tiffany & Co.Webster experience

Profile Auctions

47th Street: Strong GenevaHow salesthe Diamond District for Sotheby’s andlost its soul –Christie’s and can regain it

Auctions Retail Trends

DeChallenges Grisogonoand and Harry Winston shine inofGeneva, opportunities customization despite a few sale fails

Designers Style

Calendar Trade Report

Jade Trau, Nora isKogan up of to new date mine with the Animal jewelry all and TheKeep impact Wing Yinthis Yauseason. unveil their most important industry the rage Gahcho Kué on the Go wild in your store rough market diamond creations events of 2018

EDITOR’S LETTER

IMAGE: Ben Kelmer

Lifting each other up

Editor’s Pick These Van Cleef & Arpels Oie clips are part of the same Noah’s Ark collection as the antelopes gracing the December cover. I love the elegant combination of round and pear-shaped diamonds, spessartite garnet and pink tourmaline beads.

The playfulness of the design shows high jewelry taking itself a little less seriously while creating an awesome piece of craftsmanship.

If you looked through my WhatsApp messages, you’d find a group called “Thank you!!!” It’s the conversation in which, every day, two of my best friends and I send each other messages of encouragement and advice. We talk about everything there, from our personal lives to our professional activities — be it a public speaking engagement, launching a new blog, setting up a networking group, or negotiating tricky situations.

We also offer constructive criticism, praise each other’s achievements, and enjoy nothing more than a good brainstorm. The name of the group is a nod to how grateful we feel to have this support in our lives.

So when, in early November, the Women’s Jewelry Association (WJA) launched its first-ever “advocacy task force” to advance women’s roles in the jewelry industry workplace, I heartily cheered the news.

The timing of this month’s cover story is hardly serendipitous. The whole industry is coming to terms with the fact that women need encouragement and empowerment in every part of the trade — not just design and retail. Training, education, coaching and mentorship are all part of the WJA’s strategy, and as someone who has tremendously benefited from the guidance of great mentors — both men and women — at every stage of my career, I wish the association every success.

The excellent stories from our contributors Sarah Jordan, Rachelle Bergstein, Joyce Kauf and Jennifer Heebner about initiatives to boost female presence in the industry, as well as profiles of women with inspiring career paths, make for essential reading (report starts Page 34).

Expect Rapaport Magazine to make it its mission to give even more exposure to women in our industry in the new year.

Speaking of which, I wish you a beautiful, blessed and joyful holiday season.

Sonia Esther Soltani Editor in Chief sonia.soltani@diamonds.net

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CONTENTS

IN-DEPTH

RETAIL

MARKETS & PRICING

16 News

50 Retail profile

71 Trade Report

Industry: News from A to Z. Retail: Tiffany & Co. as a desirable luxury brand.

Movers & Shakers: Who’s coming, who’s going.

Mining: Latest in brief.

Four succeeding generations have made their mark on Henne Jewelers in Pittsburgh, PA.

Industry pins its hopes on retail.

24 Opinion: The mess at Marange

What are your expectations for the holidays?

73 US wholesale 74 US retail 77 Hong Kong

The industry can play a positive role in postMugabe Zimbabwe.

STYLE & DESIGN

26 Profile: 47th Street

57 Jewelry Connoisseur

Efforts are under way to return the once-lustrous district to its former glory.

Clever jewels that can offer more than one look.

81 India

58 Style

82 Russia

COVER 34 The diamond ceiling Despite progress over the years, women still face barriers in the industry.

36 Women on the cutting edge De Beers and Forevermark are updating their message in what has long been a maledominated trade.

38 Gems of wisdom IMAGES: Forevermark; Sotheby’s; Pamela Huizenga

53 RetailRap

Three industry pros impart lessons they’ve learned on their paths to success.

What’s still fresh, and what’s on its way out.

60 Designers Jade Trau, Nora Kogan and Wing Yin Yau bring their own flair to the fine jewelry they create.

64 Legacy A fixture on New York’s Madison Avenue for 46 years, Macklowe Gallery has changed its address, but not its raison d’être.

66 Colored gemstone Ethiopian opal’s ethereal play of color is firing up the next generation of buyers.

78 Israel

84 Antwerp 86 Diamond data 93 Price List 105 RapNet Price List 114 Calendar 116 The final cut

40 Ladies of luxury Women who own jewelry stores weigh in on driving sales to female self-purchasers.

42 Interview: Robert Weldon The head of the GIA library shares his thoughts on what makes diamonds stand out.

44 Auction report & results Christie’s and Sotheby’s Geneva jewelry sales bring a mix of new records and surprise failures.

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ON THE COVER Looking toward the future with optimism, these two antelopes gracefully leap in unison over an impressive opal whose luminescent play of color mirrors the pastel and red sapphires set around it. This jewelry masterpiece is part of Van Cleef & Arpels’ Noah’s Ark collection, which went on display in New York in November.

December 2017

7

NEWS/INDUSTRY

A to Z of the

diamond industry

A

RGYLE PINK Rio Tinto continues to garner record prices at its annual Argyle tender as the pinks keep getting rarer.

B

LUE STREAK Fancy blue diamonds outperformed other colors in the third quarter, with prices up 0.4%, according to the Fancy Color Research Foundation.

All the news that’s fit to alphabetize. By Avi Krawitz

E

XHIBITION FATIGUE The 2018 Baselworld watch and jewelry fair will feature half as many exhibitors as last year and will be two days shorter, as organizers adjust to difficult market conditions.

C

ELEBRATE GOOD TIMES The Israel Diamond Exchange (IDE) marked its 80th anniversary with a high-profile event in Tel Aviv.

F

UTURES CONTRACT The Indian Commodities Exchange (ICEX) launched a YNASTY futures contract for COLLECTION 0.50-carat, H-color, Alrosa is investing VS2-clarity diamonds, in polished-diamond marketing and branding, a popular category for engagement rings, it taking its Dynasty collection on a roadshow said. ICEX also delivered its first settlement of before the stones’ 1-carat futures, which it post-press-time sale on rolled out in August.

November 29.

D

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December 2017

G

RADING HARMONY The World Jewellery Confederation (CIBJO) changed the terminology in its Diamond Book to “harmonize” it with International Diamond Council (IDC) descriptions of diamonds.

I

NVENTORY BUILD-UP Sarine Technologies’ third-quarter earnings took a dive as manufacturers found themselves stuck with high polished inventory and therefore didn’t invest in cutting equipment.

J

OINT EFFORT China’s National Gems & Jewelry Technology Administrative Center and the Gemological Institute of India agreed to collaborate on science and technology, education and training, testing, and other issues affecting the diamond and jewelry trade.

K

IMBERLITE FOR SALE De Beers is seeking potential buyers for its Voorspoed mine in South Africa, which could potentially extend the mine’s operating life beyond 2020.

L

H

EADS ROLL Alrosa fired two executives it said were responsible for the flood that claimed eight lives at the Mir mine. Alrosa’s thirdquarter profit fell 51% to $220 million due to the incident.

ULO LAND Lucapa Diamond Company recovered a 129.58-carat, D-color, type IIa diamond at its Lulo mine in Angola, where it is trying to find the kimberlite source of its alluvial deposit.

-51% diamonds.net

M

AZAL(IT) U’BRACHA Israeli start-up Mazalit raised $1.2 million for its app, which it says will make payments for diamond deals more efficient.

N

EW CAMPUS HRD Antwerp opened a new educational facility in Mumbai “to cater to a growing need for technical and highquality gem and jewelry education in India,” the grading company said.

R

OUGH SALES De Beers sold $455 million of rough in LDER MILLENNIALS November — better The Diamond than October, but Producers Association down from last year, (DPA) launched its new as manufacturers were campaign with two concerned about their ads depicting “precious profit margins. moments” between older millennial couples, contrasting with last year’s more adventuredriven theme.

O

IMAGES: Rio Tinto Diamonds; IDE; Baselworld; Lucapa Diamond Company; DPA; Penny Preville; Shutterstock

Q

UEEN’S GRANDDAUGHTER The UK’s Prince Harry finally popped the question and announced his engagement to American actress Meghan Markle.

The ring by jeweler Cleave and Company boasted two diamonds worn by Harry’s late mother, Princess Diana, supporting a larger stone sourced in Botswana.

P

EACE & PROSPERITY A 476-carat rough diamond called the Meya Prosperity was unearthed in Sierra Leone — the second significant find this year, after the discovery of the 709-carat Peace Diamond in March.

diamonds.net

S

INGLES’ DAY Shoppers bought $25.3 billion worth of merchandise through e-commerce platform Alibaba on Singles’ Day — aka 11/11 — amounting to 39% more than last year.

W

OMEN’S EMPOWERMENT De Beers and UN Women pledged $755,000 to support female entrepreneurs in Botswana’s Okavango Delta and Kweneng District.

T

YING THE KNOT Spending on engagement rings in 2016 was 25% higher than in 2011, reaching an average of $6,351, according to The Knot. In contrast, The Wedding Report said couples buying rings in the second quarter of 2017 had paid an average of $3,399.

U

PGRADED PROSPECTS Standard and Poor’s (S&P) raised its outlook for Botswana from negative to stable, citing an upturn in the diamond sector.

X

XX Good demand for triple-Ex diamonds, with dealers prepared to pay a premium for excellent cut, polish and symmetry.

Y

OUTUBE DISPUTE Brilliant Earth terminated legal proceedings against Jacob Avital, an online critic, after Avital published a video on YouTube questioning the jeweler’s claims to offer conflict-free diamonds.

V

ESSEL INVESTMENT Debmarine, the Namibian government’s joint venture with De Beers, will invest $142 million in a new diamond-mining ship, to be ready in 2021.

Z

ERO TOLERANCE The Gemological Institute of America (GIA) found a synthetic diamond posing as a natural one, inscribed with a fake report number. ▪

December 2017

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COVER/WOMEN IN THE INDUSTRY

THE DIAMOND CEILING Historically, it’s been difficult for women to break into the industry – and while there has certainly been progress, barriers to success remain. By Sarah Jordan If the discussion of women in the diamond-mining sector were taking place in the early 1990s, chances are, it would be less a discussion and more of a question: “What women?”

But in 2002, the South African Mining Charter introduced quotas for mining companies, requiring that 10% of their staff be female (in 2000, the actual number was 2%). This enforced step toward gender diversity created a domino effect, changing the atmosphere in the South African mining industry and the internal policies at giants like De Beers. In June this year, an updated version of the mining charter set even more ambitious quotas, calling for a minimum 25% black female representation at board level and 44% at junior-management level.

The barriers to women working in the diamond-mining sector are myriad and often start with ingrained perceptions of womanhood — such as the historic superstition that women in mines lead to more accidents, as noted in a 2014 report titled “Gender, Diversity and Work Conditions Mining.”

The report also points to the traditional masculine image of mining “in which men go down into the mines, endangering their lives, to earn the daily bread for their families.”

role of primary caregiver. Coupled with childcare commitments, the remoteness of mines often makes off-site head-office and administrative roles more attractive.

So what is being done? Wide-ranging initiatives are encouraging women to strive for leadership roles. Petra Diamonds’ Leadership Development Programme consisted of 28% women in 2016, and women accounted for 33% and 31% of the company’s engineering and mining “learnerships,” respectively. For Katie Fergusson, group head of social impact at De Beers, the goal is to encourage more open conversation, offer mentoring opportunities and make role models more visible, as well as “supporting diversity of thought and experience” and tackling gender stereotypes and unconscious bias.

This would be welcome for Zenzi Awases, president of the newly-founded Women in Mining Association of Namibia (WiMAN), who argues that the race to fill quotas misses the larger point. “The barriers we are facing mostly stem from the fact that the mining industry is yet to wake up from yesterday’s mining industry, which was focused more on diversity. Diversity has become a numbers game due to legislation. The industry needs to wake up to tomorrow’s industry, which is focused on gender inclusion.”

“Mine sites tend to be remote and maledominated.... They don’t have easy access to changing rooms or their own bathrooms”

The push for inclusion Although technology has changed the landscape of diamond mining, the challenges associated with this lifestyle are still present.

“Mine sites tend to be remote and male-dominated,” explains Deborah Craig, who heads the Africa team at International Women in Mining. “It can be isolating, and sometimes the mines have not been developed to include women, so they don’t have easy access to changing rooms or their own bathrooms.”

Additionally, in the majority of diamond-mining countries, women are still viewed in their traditional 34

December 2017

A matter of values The proactivity of the mining industry contrasts with the manufacturing sector, in which the cutting and polishing centers of India reveal serious gender parity issues. Aekta Kapoor — founder and editor of eShe magazine and a contributor to Indian financial daily The Economic Times — saw the problems firsthand during a recent visit to Surat, India’s “diamond city.”

“At Hari Krishna Exports’ Varachha facility, there were eight women out of 2,200 employees. All of them were diamonds.net

huddled together in one corner,” she says. “Employers like Hari Krishna give many incentives for their employees’ families, something that should have attracted more female applications. But it isn’t working.”

Traditional gender biases seem to be responsible, according to Kapoor.

“Both the men and women I met consider women to be less valuable to a company or to their families than men, and the only women who would venture out to get a job were those with a great financial need to do so.

A woman’s role is otherwise firmly in the home.”

Tackling the misconceptions Based on situations such as the one Kapoor reports at Hari Krishna — which did not respond to Rapaport Magazine’s request for comment by press time — the concern is not whether women can work, but whether they want to, or indeed have the agency to do so.

Recognizing this issue in its own field, the Women’s Jewelry Association (WJA) recently launched its first “advocacy task force” in the United States to tackle “gender-related biases in the jewelry industry workplace, including policies related to caregiving, advancement and compensation.”

At the retail end of the spectrum, Signet Jewelers also pays attention to “diversity of thought,” according to David A. Bouffard, the US-based jewelry company’s vice president of corporate affairs.

“As a result of our employment and advancement programs, nearly 70% of all our leadership (assistant store manager and above) are female,” he says. “This includes 40% of the senior management (VP and above) positions.”

While gender-diversity policies continue to improve, it is gender inclusion initiatives that are necessary to change ingrained narratives. Only by tackling the misconceptions and traditional notions of womanhood will women secure more parity in the diamond industry. c diamonds.net

Women in the workforce 12% — Representation of women on executive management teams at the top 40 mining companies.

16% — Representation of women on boards of directors at the top 40 mining companies.

60% — The number of De Beers bursaries that go to female students in South Africa. This has supported the development of a strong pipeline of female talent for De Beers operations in the country.

57,800 — The number of women employed in the South African mining industry from 2015 to 2016, compared with 11,400 in 2002. Today, women account for more than 13% of local mining in South Africa, exceeding legal requirements.

34.9% — The proportion of women in Alrosa’s

total workforce — despite laws barring women from certain professions in the Russian Federation, including underground construction and ore mining.

10 — The number of female board members out of the total 67 at all seven member companies of the Diamond Producers Association (DPA). At executive-committee level, women account for just 11% of total employees (six out of 53).

69% — The percentage of all female employees at Dominion Diamond Corporation’s Ekati mine in Canada working in non-traditional roles during 2016, such as apprentice carpenters, crane operators, machinists, millwrights, plumbers and technicians.

Sources: Katie Fergusson of De Beers; South Africa Chamber of Mines; Alrosa; Diamond Producers Association (DPA); Dominion Diamond Corporation; Company sustainability reports; PWC report

December 2017

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COVER/WOMEN IN THE INDUSTRY

WOMEN ON THE CUTTING EDGE

De Beers and its retail brand Forevermark are setting out to update their corporate culture and marketing messages in the typically male-dominated diamond industry. By Rachelle Bergstein There’s a heartbreaking story about Frances Gerety, the N.W. Ayer & Son copywriter who wrote the “A Diamond Is Forever” tagline for De Beers.

In 1963, a number of agency executives were invited to Johannesburg to celebrate the 25th anniversary of the enormously successful De Beers diamond-marketing campaign. Gerety’s bosses all came back to the New York office flaunting the shiny gold watches they had been gifted. She looked around, incredulous: Where’s mine?

No one had thought to honor her contribution. The diamond world was a boys’ club, plain and simple.

But finally, more than 50 years later, it’s working to effect lasting and positive change. This fall, De Beers announced a number of important initiatives, all aimed at encouraging gender inclusivity and promoting positive messages about women.

From reexamining their own corporate policies and prejudices, to investing money in women’s education, to overhauling their longstanding marketing message, executives at De Beers and at its retail brand

Forevermark are challenging themselves to reform the industry in a way that is unequivocally pro-woman.

A ‘Tribute’ to women “I think this does come from our recognition that we are selling a woman’s product,” says Charles Stanley, a 20-year veteran of the diamond world and president of Forevermark.

He describes the “three pillars” of this commitment, designed to support the advancement of women in all of the De Beers diamond-producing countries (Botswana, Canada, Namibia and South Africa) and beyond. For Forevermark, this means a new collection, called Tribute, and an innovative campaign to go with it. The first television spot, set to a surprisingly lyrical version of Fatboy Slim’s late-’90s hit “Praise You,” retains the warmth and the romance of traditional diamond advertising while paying homage to women’s inimitable spirit.

“Tribute is about celebrating women for what they are, not what they do,” explains Kristen Lawler-Trustey,

Forevermark’s Tribute collection launched in New York in November.

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IMAGES: Andrew Werner

From left: Sofia Sanchez de Betak, Zendaya and Chrissy Teigen attend the Forevermark Tribute collection launch.

PR manager at Forevermark. “It’s easy to fall into the trap of thanking women for what they do — cooking, cleaning, raising children — but the emphasis is shifting.”

Advertising has a powerful impact on culture: Just this past July, Britain’s Advertising Standards Authority announced it would be developing new guidelines to combat gender stereotyping in advertising. But for Forevermark, changing its outward-facing messaging is just smart business, especially at a time when “feminism” and “equality” have become buzzwords.

Without the other initiatives, the brand’s effort to stay “culturally in-tune,” as Stanley puts it, might simply be regarded as shrewd. However, De Beers is putting its money where its mouth is, pledging $3 million to support women-owned microenterprises in African diamond-producing countries, and partnering with UN Women and Ontario’s University of Waterloo to provide scholarships to underprivileged Canadian women interested in pursuing STEM subjects. These efforts are designed to cultivate the female leaders of tomorrow.

“The mining industry generally has been quite a male-dominated industry,” says Katie Fergusson, head of social impact at De Beers. “The large majority of roles are technical, and there hasn’t been such a strong pipeline of women being attracted to those roles.”

Abolishing the boys’ club By investing in women’s education, De Beers is hoping to fix the imbalance. As a company, it’s also taking diamonds.net

steps to improve its corporate culture, so that De Beers not only attracts female talent, but retains it.

This is crucial, says Lori Nishiura Mackenzie, executive director at the Clayman Institute for Gender Research at Stanford University.

“A diversity goal should be coupled with goals to change the culture. Otherwise you can have a revolving door — increasing the number of women hires and then seeing them leave,” she adds.

To that end, De Beers has formed an “across-pipeline working group,” in Fergusson’s words, to understand the key issues. The company has brought in thirdparty experts to conduct focus groups and to lead unconscious bias training, which Fergusson says has provided existing De Beers executives and senior employees with a “safe space” to explore their own underlying perceptions about gender, as well as their questions and concerns.

With the company’s multipronged approach, De Beers and Forevermark have the potential to abolish the boys’ club atmosphere once and for all. The key to this, according to Tammy Hughes at the Heim Group LLC — a consultant group devoted to identifying and solving gender-related issues — is appreciating that men and women might work differently, but no approach is better or worse.

“You need to create a climate that understands and values the differences... If an organization doesn’t do this well, one gender will feel targeted or diminished.

And, in our experience, it’s always best to start this learning at the top,” she says. c December 2017

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COVER/WOMEN IN THE INDUSTRY

GEMS OF WISDOM

With backgrounds in the arts and sciences, these three industry pros share lessons they’ve learned on their path to success. By Joyce Kauf Maren Rosen

Vice president of merchandising, bridal, jewelry and findings

Stuller, Inc.

In an industry dominated by bridal jewelry, it’s fitting that Maren Rosen was recruited for her first job at Stuller, Inc. via her wedding announcement.

“I got a call for an interview when I was on my honeymoon,” says Rosen. A vice president at the Lafayette, Louisiana-based diamond jewelry manufacturer read the announcement in a local paper and was impressed with Rosen’s retail and merchandising experience in New York City. She started in sales, and after six months, she was promoted to bridal merchandising.

Rosen graduated from Loyola University in New Orleans with a degree in violin performance. The discipline of playing the violin has carried over into her life and career: “When you’re playing in a symphony, you have to trust all of the musicians around you. They all bring different talents to the table,” she points out.

While in college, she showed a “very different side” than music: an interest in fashion, retail and visual merchandising. After moving to New York, she recalls, “I realized that I had to learn all aspects of retail, especially production, in order to succeed.”

Rosen worked in production at Club Monaco and Alice + Olivia, then landed a job in merchandising at Ralph Lauren that exposed her to the “technical nuts and bolts of production, manufacturing, sourcing and marketing. I loved it, loved it, loved it.”

Although she can’t identify any specific mentors, she points to “two of the best bosses in my entire life” as inspirations for her management style. “They valued and respected their employees and encouraged them to excel. Every day, I think of how they would handle something.”

Rosen can’t think of any advice she’d have given her younger self, admitting, “My ego was so strong that I don’t think I would have listened to anything.” However, a “humiliating” interview was a pivotal moment. “I decided I would never treat people like that. Cultivating relationships is the most rewarding experience for me.

I’m beyond ecstatic to be connected to such talented people who make it happen every day.” c 38

December 2017

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Rebecca Foerster

Executive vice president of strategic planning and marketing

Leo Schachter

Ann Lange

Senior vice president, executive director, jewelry

Doyle

Auctions hold a special attraction for Ann Lange. “I love the rhythm of the auction sale,” says the former dance student. “There is a beginning, middle and end — just like a theatrical production.”

Lange grew up in the jewelry industry; her great uncle founded a jewelry store in Providence, Rhode Island, and it is still family-run. But Lange had other plans than to join the family business. After graduating from Boston University with a major in French, she moved to New York and studied dance for several years. When she was 28, though, “I recognized I needed a career and decided to study at the Gemological Institute of America (GIA).” After completing the institute’s Graduate Gemologist (GG) program, she worked for a small family business on the Bowery and then got a job with estate jeweler Fred Leighton, which she describes as a “dream come true.”

But it was at Sotheby’s that she had her “aha” career moment. “I remember going in one weekend and looking at the jewelry, and I just knew I was in my element,” says Lange, who eventually served as vice president and director of the Arcade Fine Jewelry division at the auction house. “Auctions are very academically and creatively satisfying. You have to do your homework, collect the pieces and create the catalogue,” she says. One of her favorite parts of the process is establishing close relationships with clients, a trait she learned from her father, Harry Limer, whom she considers her mentor. He also took her to her first auction — at Doyle in New York.

Lange has become more comfortable trusting her gut when evaluating jewelry, and she points to a guiding principle that has served her well over the years: “Soak up as much knowledge as you can. The learning process never ends.” c diamonds.net

“I always knew I was going to be a doctor,” explains Rebecca Foerster. She was pre-med at Pace University when reality struck. “I realized if I pursued medicine, it would be at least 10 years before I had a balanced life, which included a family. So I opted for an alternative.”

But after six months of studying optometry, she decided she wanted a career in business. Then came another big revelation: “I was summa cum laude and couldn’t understand why no one wanted to hire me.

But I had no skills.” After a series of entry-level jobs, she landed in advertising, eventually managing the Estée Lauder account at AC&R, earning an MBA from the Lubin School of Business at Pace and then going on to hold senior positions in several prestige beauty firms. Working at these companies, she discovered her destiny as a strategic marketer: “I realized I had an intuition about trends and consumer desires, along with the business acumen to identify opportunities in the marketplace.”

Her initial job in the jewelry industry was at Frederick Goldman. She was recruited by Jonathan Goldman, who became her first mentor and adviser in the industry. Foerster stresses the necessity of having a mentor. “It is important to stay connected at a higher level in the organization, because in any specific role, you don’t work in a silo.”

Early in her career, she admits, she didn’t realize that the industry’s concept of marketing tended to focus on the immediate sale, rather than brand-building. As an outsider, she brought in new sensibilities. “I knew all the parts of the marketing mix.... I learned that it is okay to take the best practices from your previous work experience and tweak them to the mind-set of the jewelry industry.

If you show return on investment and make people proud of what they are putting into the market, you can make a big impact.” c December 2017

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COVER/WOMEN IN THE INDUSTRY

LADIES OF LUXURY

Women who own jewelry stores weigh in on how their talents help drive more sales to female self-purchasers. By Jennifer Heebner No pressure, more sales

Be relatable, build camaraderie

Maria Frasca of Frasca Jewelers sells to female clients the way she enjoys shopping — with a low-pressure, friendly vibe and lots of conversation. “We chat, we try things on, and sometimes we drink coffee or champagne,” she says of most customer encounters. “It is an organic process.”

Frasca has stores in Palm Desert, California, and in El Paso, Texas — “a small winter resort and golfer’s paradise,” she explains — so many of her clients are affluent and wear fine jewelry. The trick to moving merchandise, she says, is to offer fashion-forward collections like Roberto Demeglio, that are casual enough to wear with resort attire both day and night.

Another helpful move? Wearing what she sells.

“Because we tend to be in our jewelry, women are drawn in to our store to see what is new,” she says. Plus, the store’s strategic move of not carrying watches also means Frasca has more female shoppers.

Many of them are not career women, however, so they’re a tougher sell. Working women “are used to making fast decisions, have their own money, and they know they deserve [a reward like jewelry],” she observes. “So we work hard to make the others realize that they don’t always need to have a man buy a piece of jewelry for them, even though our industry still advertises that way.”

After 28 years of running Roberson’s Fine Jewelry in Little Rock, Arkansas, Roberson’s husband wanted to relax — but she had no intention of slowing down.

“He said, ‘I’m ready to retire,’ and I said, ‘I’m ready to get into it!” she recalls. That was 10 years ago, and today Roberson’s business has flourished into an enterprise of jewelry experiences for women who love to collect.

Through trial and error, Roberson learned to try events other than trunk shows for female clients who “will spend big,” she says. “If it feels like you are always trying to drag people into the store, then maybe you should try an experience.”

Her trips to meet designers in Los Angeles, New York and Houston, Texas, have helped her build a compelling camaraderie with many female shoppers.

The reason behind the strategy? Psychology. For many women, purchases are emotional, and women want to hear meaningful stories and information about pieces, whereas men “just want to know the price,” says Roberson.

“Our jewelry is art, and I’m taking them to meet Picasso,” she remarks. “Start thinking outside the store.”

Maria Frasca, Frasca Jewelers

a Frasca’s top takeaway for selling to women: Make women realize that if they are already

buying designer clothes, handbags and shoes, why wouldn’t they buy themselves designer or high-end jewelry? “The price points are similar, yet it is still a foreign concept for many of them,” says Frasca.

An 18-karat yellow gold tassel necklace with pearls and diamonds from Gumuchian, a designer line that Frasca Jewelers carries.

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December 2017

Trish Roberson, Roberson’s Fine Jewelry

a Roberson’s top takeaway for selling to women: Be relatable and make women comfortable

— show them you support what they support. Also important: using women’s intuition. Three years ago, Roberson flew a strong-willed designer to town to meet with a genteel client, but the chemistry wasn’t right. Roberson masterfully intervened through subtle de-escalation tactics, racking up five repurposing jobs that day. “I told the designer, ‘Let me lead now,’ and that paved the way for us to do more work for her, her friends, and her family,” says Roberson.

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Listen well, offer what’s wearable Jane Carter-Getz, Belle Cose

Jane Carter-Getz’s onetime kitchenware store, Belle Cose, in Jackson Hole, Wyoming, mushroomed into a quintet of shops merchandising gifts, homeware and clothing before it finally started selling jewelry.

Carter-Getz’s first foray into fine was a trio of rose-cut diamond bangles in sterling and gold, which she priced at $5,000 apiece. Within three months, the shop owner had sold 15 of them.

Today, jewelry accounts for two-thirds of sales. The store’s specialty is styles that women feel comfortable wearing daily and buying for themselves. “Our jewelry isn’t meant to be locked away and worn only on special occasions, but to be put on and worn to work, dinner, or picking up your kids at school,” she says.

And while training in how to sell to women isn’t a routine occurrence — or all that necessary, given that 95% of the staff is female — attentiveness is a ritual.

“We put a lot of focus on listening to the customer,” adds Carter-Getz.

a Carter-Getz’s top takeaway for selling to women: Get to know each customer and

interact with her on a personal level. “I think our female customers appreciate being heard, and the understanding we bring to trying to find the right fit of jewelry to highlight her personal style,” says Carter-Getz.

Model it and make shoppers try it on

Susan Robinson, Susan Robinson Fine Jewelry Susan Robinson’s early career was a mix of banking, real estate, and legal recruitment until marriage gave her an entrée into fine jewelry sales. Her husband’s family owned a jewelry store, and after helping them with their business, she secured her own sixfoot jewelry case in a well-regarded clothing store in Tyler, Texas — a move that helped her build an inventory and pave the way for the 5,500-squarefoot Susan Robinson Fine Jewelry store she operates today. A key component of her business’s success is making sure that sales associates wear the jewelry the store offers.

“It’s the number one rule!” says Robinson.

“Customers see the jewelry on me and my staff and just want it. We get the jewelry on the customer, put them in front of the mirror, romance the stones and give a little education, and they say, ‘I’ll take it.’”

Unlike men, who, according to Robinson, prefer watches, a more technical sale, and to make sure they are getting value, women can experience the thrill of wearing a jewel and enjoying how it feels and makes her look.

Female sales associates, she adds, inherently have a better understanding of other women’s thought processes, because they share the passion for the product.

“Woman-to-woman sales are so much easier,” notes Robinson. “It’s easier for women to know what other women like. And we can try it on and show customers how it looks on us. That is a great way to sell.”

a Robinson’s top takeaway for selling to women: Get the jewelry onto

shoppers’ bodies — on their ears, arms, wrists, necklines and fingers.

Then put them in front of the mirror and “let the jewelry do its magic!” says Robinson. “‘You must try it on’ is our motto.” c diamonds.net

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RETAIL PROFILE

FAMILY VALUES Four succeeding generations have made their mark on Henne Jewelers in Pittsburgh, Pennsylvania. By Joyce Kauf There’s an oft-cited fact about family businesses: The first generation establishes them, the second grows them, and the third ruins them. But John Henne is proving these statistics wrong. The fourth generation of his family to run Henne Jewelers in Pittsburgh, Pennsylvania, he is leading with an eye to the future and a respect for the traditions and core values that remain the cornerstone of the successful business his great-grandfather founded in 1887.

“Only once in my life did my father, Jack Henne, ask if I would come into the business,” notes Henne, who at that time worked as a CPA with plans to earn an MBA. Deciding that he would learn more from his father than he would in two years at business school, he joined the company in 1999 and began to put his own stamp on it.

“When I came in,” Henne explains, “I probably just changed the business by the fact of my being younger and incorporating current practices such as using technology and computers to facilitate greater analysis about trends and product mix. Based on those analyses, I made a great change in bridal, which my father had largely given up on as a viable category.”

and competitive pricing, Henne created a separate case of engagement rings under $6,000 in the store’s dedicated bridal area. Bridal now contributes slightly more than one-third of the jeweler’s total business, with Tacori as its top brand, followed by Precision Set. Henne points out that the company has a significant custom business — almost 50% — consisting of both in-house and generic manufacturing.

Over the years, Henne has upgraded the product assortment and introduced in-store promotions, and in 2003, he oversaw the move to a larger store in the same neighborhood of Shadyside. Throughout, though, he’s remained dedicated to the principles of “exceptional customer service” and to a lesson he learned from his father: “When it comes to making business decisions, you don’t do it based on money or what you’ll make or lose — you do it [based] on what is right.”

Applying the happy test A man of strong faith, Henne admits to losing sleep if the customer or employee isn’t happy. Recognizing that hiring a multigenerational staff of the “right people” is a critical component of making the store “better and Betting on bridal stronger,” he asks prospective employees an unusual At the time, fine jewelry and fashion were driving the question: “On a scale of one to 10, how happy are you?” business, with bridal accounting for less than 2% of “People are generally honest,” he says. “I will never sales. Henne explains that it wasn’t “commonplace” hire anyone less than a seven or usually not less than to have certified stones, and his father competed with an eight, because if you’re not happy with who you jewelers who would “comfortably are, you can’t be happy for other over-grade their diamonds,” making people or our customers.”

WHO IS JOHN HENNE? his stones seem more expensive in Henne’s four sons are too young Recently named chair of Jewelers comparison. However, the younger to enter the business, although of America (JA), John Henne has Henne made a concerted effort to his 13-year-old has helped sell a been active in a variety of industry grow the company’s bridal business. organizations. For the past 15 diamond-and-gold bracelet.

“I learned that I would have to “I want them to choose either years, he has participated in the establish relationships with people to work here or somewhere else Retail Jewelers Research Group, through all their jewelry-buying doing something they really love founded by Harvard University. The years,” he says — beginning with and work at with excellence,” he 13 members, independent jewelers the twentysomethings looking to explains. “I am very fortunate to from non-competitive markets get engaged, and continuing to have had this opportunity to around the country, share financial serve them as they celebrate other carry on the family business, but information and compare sales important moments. That approach data openly and transparently. also to inherit my family’s legacy is reflected in the company tagline, of trust and strong work ethic.

Henne considers the venture “Jewelers for Life.”

That is a greater privilege to “probably the single best thing In an attempt to attract pass on to my children than the I’ve participated in to grow my millennials looking for transparency privilege of luxury.” c business.”

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diamonds.net

TOP THREE TIPS FOR JEWELERS

John Henne offers his advice for staying relevant in a challenging retail environment.

1. Brand selection Ensure there is enough depth of style to satisfy the customer.

Align with the best brands to reinforce your dedication to quality, and to enhance your store’s image.

2. Stick to your core values Treat people with dignity and understanding — your employees, customers, vendors and neighbors. Support local community efforts. It is definitely a plus factor that creates goodwill and often leads to referrals.

3. Don’t be a fast closer Emphasize building a long-term relationship with the customer, not making an immediate sale. Focus on creating genuine rapport — something that takes time and a staff that cares. diamonds.net

December 2017

51

LEGACY

ROOM TO GROW A fixture on New York’s Madison Avenue for 46 years, Macklowe Gallery has changed its address, but not its raison d’être.

By Phyllis Schiller Macklowe Gallery’s move to a more spacious venue in November was “a no-brainer,” according to secondgeneration president Benjamin Macklowe. The New York City gallery now has “more opportunity to tell our entire story, including jewelry, Art Nouveau pieces and the artwork of Louis Comfort Tiffany,” he says.

Founded by Lloyd and Barbara Macklowe in 1971 — Benjamin joined in 1994 — the family-owned business displays a carefully curated array of decorative art and adornments from various periods.

After spending more than 40 years on New York’s Madison Avenue, it has upgraded from 20 feet of frontage to 135 feet on the corner of Park Avenue and 57th Street, where it fits comfortably with new neighbors that include upscale auction houses.

State of the estate market In today’s marketplace, Macklowe says, his competition for the luxury dollar is “everybody,” from Sotheby’s and Christie’s to other estate dealers and high-end modern jewelry. But there is also a “great opportunity” to fill a void left by art and antiques dealers who have gone out of business or retired within the past 10 years.

The key, he says, is “paying close attention to what our clients are telling us.”

Understanding customers is a priority Macklowe embraces wholeheartedly, considering it his job to surprise and delight clients with the quality and variety of 64

December 2017

what he sells. “We could have a circa-1730 memento mori ring, a 1970s David Webb and everything in between.”

Part of the challenge today, he acknowledges, is dealing with a societal shift to a more casual lifestyle and more socially conscious buyers. There’s no single formula for finding the right merchandise mix, he notes.

“Estate jewelry is the most ecological jewelry you can buy — any manufacturing was done in the past. And that’s certainly a conversation I’ve had with people sensitive to that idea.

But ultimately, whether you’re a millennial, a Gen X-er or a baby boomer, the most important part about owning a piece of jewelry is the joy that it imparts to you.”

well with their sense of style but is something they won’t see everyone else wearing.” The gallery also caters to people “looking to buy very unusual pieces with historical importance,” he says.

Ultimately, what he is selling is his taste and sense of value. High on his list is the jewelry of René Lalique, whom he describes as a “once-in-every-500-years genius.”

The gallery has also developed a specialty in the jewelry of Marcus & Company, as well as “everything produced by Tiffany,” from lamps and glass to jewelry.

“We own everything we sell,” Macklowe states. “My mother and father always operated on the principle that if you’re not happy to own it for stock, you shouldn’t buy it.”

The art of selling “We’ve always catered to collectors,” explains Macklowe, “and collectors tend to be looking for idiosyncratic things.

We have clients who only buy Art Nouveau jewelry. While Art Deco is evergreen, people are living less formal lifestyles now, making some of the diamondintensive jewelry of the Art Deco period harder to wear today. So we’re doing quite a bit with Art Nouveau.”

Another popular category is what he calls “strong women’s jewelry” — decorative, wearable pieces with distinctive design.

These are self-purchases, from $5,000 to $25,000, by women who “want jewelry that goes

Right from the source What has changed, he continues, is sourcing jewelry. “We still purchase a lot in the trade, and because of our position on the street level and the effort that we make to be found on the internet, we get a lot of purchasing opportunities directly from individuals who contact us.”

He also keeps abreast of purchase opportunities at various auctions around the world. “I ask myself, ‘Who are my clients, why do they care about what I do, and how can I make them care more and therefore spend more time with us and purchase more from us and tell their friends more about us?’

I think that extra attention to our customer is what has been the key to our success.” c diamonds.net

IMAGES: Antonio Virardi/Macklowe Gallery

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1. French Art Nouveau 18-karat gold pendant by Lucien Gautrait depicting a woman with flowing hair and outstretched arms, featuring pink sapphire, diamonds and pearl, c. 1900; 2. Leaded glass and patinated bronze Dragonfly table lamp by Tiffany Studios New York; 3. French mid-20th-century 18-karat gold cuff links with interchangeable hard stone bars (batons) by Cartier Paris; 4. Van Cleef & Arpels 18-karat gold and platinum earrings with diamonds and rubies, c. 1960s; 5. Cartier Paris platinum ring with emerald and diamonds, c. 1960s; 6. Art Nouveau Libellules two-tiered Dragonfly table by Emile Gallé with carved and marquetry decoration.

diamonds.net

MOVING ON UP With its move last month to a new space at 445 Park Avenue, Macklowe Gallery gained a main floor of 3,400 square feet, designed “to encourage exploration,” says president Benjamin Macklowe.

“People can meander and discover things that they might not have necessarily come in for,” he says.

The expanded ground floor can double as a generous exhibition space, and the new location has a dedicated reference library as well. The design plan, Macklowe says, is “megahigh-end,” with everything “bespoke and sumptuous.

We have five different jewelry display stations, at different levels, that work together seamlessly, providing lots of different places where people can look as they walk though the space.”

The interiors of the displays are lined in understated black suede cloth, allowing the showcased pieces to be the focus of attention.

With a nod to Art Deco, there are little touches of chrome and elegant gray-brown wood accents, complemented by beautiful carpeting on the floors, upholstered walls with crown molding, and a silver-leaf ceiling over the jewelry area.

“We are selling things that are rarefied,” says Macklowe, “and people should feel like they are walking into someplace special.”

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THE FINAL CUT

Forward glance

Rapaport Magazine asks top industry figures: What are your predictions for 2018?

Leibish Polnauer President, Leibish & Co. Diamonds are one of the most undervalued goods in any industry. They are not appreciated yet, but this will be changing. Diamonds have more value than what they are sold for. Prices will go up, and there will be a bigger desire to own them — not just from baby boomers, but from millennials, too. Diamonds are going to come back as a fashionable item. As a result, manufacturers will be able to raise the prices, because the consumers will see them as very desirable items.

The internet is not just a forum, but part of the industry. If somebody’s not completely internetsavvy, he’ll go out of business. The consumer wants to be connected. Millennials breathe, live and shop through the internet. Diamonds will get more powerful exposure.

The Indians will overcome the crisis [caused by the goods and services tax (GST) and demonetization] relatively fast, and the industry will get more lean. It won’t damage the industry, which will go forward from this.

It’s a powerful industry, with a strong place in the luxury sector, so 2018 will be a powerful year.

Rajesh Shah, Partner, Venus Jewel There are two scenarios to consider for 2018. First, if there is a successful response to the 2017 generic-marketing season, then rough prices may steadily increase; polished prices as an index may move up, but not to the levels of rough; and the volume of sales may increase. The second scenario is that if the generic marketing does not get the expected response, rough prices may flatten out and then come down; polished prices may decrease; and volume of sales may shrink. Today, more than anything, we need stability in rough and polished markets.

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Ernie Blom President, World Federation of Diamond Bourses (WFDB) I believe we will see a further expansion of the budget of the DPA. This will allow it to expand its operations, and that is something which is very much needed. I see the major mining firms, which are the DPA members, agreeing to put more money into the DPA’s globally expanding operations. I think other organizations will also step up to the plate, as we saw this year with India’s GJEPC contributing $1 million for generic diamond marketing. I think the changing dynamics of the industry will see the trading and retail sectors coming together more as they consolidate and provide a stable basis. I expect expanding margins for manufacturers who have suffered from thin profits. In the finance sector, I expect the diamond industry and the financial institutions to come closer together, providing much-needed credit for the midstream sector of the pipeline.

William Lamb President and CEO, Lucara Diamond Corp.

As three new mines were brought on stream and ramped up to full production during 2017, rough prices remained stable, indicating that the increased volume of rough produced was easily absorbed into the market. Liquidity issues and financing in the middle market remained a concern through 2017 and will in all likelihood continue to do so through 2018, as we have seen in the past. The demand for rough, however, remains high, as evidenced by the attendance at the Lucara tenders and for other producers. The lack of movement in the polished-diamond index, together with increasing polished inventory, will dampen any positive movement in rough-diamond prices in 2018. We expect rough-diamond prices to remain static through 2018, with demand being driven primarily by seasonal demand. diamonds.net