Highlights
US Jewelers See Sparkling Future
August 2, 2004
Fine jewelry vendors at the JA New York show, which wrapped up its four-day run at the Jacob K. Javits Convention Center here on Wednesday, brought their fall and holiday collections with a strong outlook for the second half of the year after a solid spring.

Vendors and retailers anticipate substantial holiday growth and strong consumer interest in higher-priced items. Key trends include open-work bubble shapes, color, cabochon moonstones, tiger??s eye stones and hoop earrings.

Paul Morelli introduced his pebble collection, which features a cascading pendant necklace in 18-karat yellow gold, pink sapphires and diamonds.

??Since we??ve been at this show, we??ve seen that people are still being cautious, but we??re encouraged [by the orders they are placing],?? Morelli said. ??Our business at Bergdorf Goodman has seen spring growth of 35 to 40 percent, and we??re projecting a 50 percent increase for fall and holiday.??

Retailers said accessories is in a good cycle.

??We had a very good spring season and there??s no reason to think it won??t continue for fall,?? said Barbara Serafina, jewelry buyer for the Saks Fifth Avenue store in Short Hills, N.J. ??Overall business is up and fine jewelry is up.??

Color and wide bracelets ??with delicate looks?? were among the trends she was focused on, and she was not shying away from high-ticket items.

??No one is looking and shopping on a budget,?? Serafina said, ??We??re especially optimistic about holiday.??

Saturated colors like cinnamon-hued citrines, garnets and amethysts played strongly in David Yurman??s collection, which was shown in the designer??s showroom in TriBeCa. Yurman also saw buyers spending more freely.

??We focused on trading up in our gold collection, and retailers responded incredibly to that,?? he said. ??Of course, it was well focused on specific doors. It wasn??t a blanket thing.??

Buyers are also exploring less conservative looks, said Paul Engler, chief operating officer of Temple St. Clair, at the JA show. Retailers were drawn to the collection??s black opal and blue moonstone pieces, he said.

??A lot of the more traditional, conservative stores are wanting to enrich the collection with stuff that has more style,?? Engler said. ??They??re wanting to move in that direction of fashion without deviating from the quality things they??re known for carrying.??

Slane & Slane unveiled the latest incarnation of its Fenestra collection of pendants, rings and earrings with marquis-cut stones in olive quartz, London blue and white topaz. Marion Davidson, president and chief operating officer, had an equally sunny outlook on fall business.

??Retailers are buying deep and very invested in gold, so price doesn??t seem to be an issue,?? Davidson said. ??What??s pleased me is the good feeling overall about the category.??

Marco Valente, owner and designer of Valente Milano, which opened its first retail location in Milan??s Park Hyatt hotel last month, said, ??This year is totally better than last year. Last year we had the big crisis in Iraq,?? and while the war still rages ??the mood is different, there are lots of parts of the world where the economy is growing.??

Peter Webster, partner in Roberto Coin, said the strength of the euro has helped the U.S. fine jewelry market.

??It seems the weakness of the dollar is holding back tourism, so more people are staying at home,?? Webster said. ??Since they??re not going abroad, they can afford luxury goods.??

Nonetheless, the firm was forced to raise its prices in response to the soft dollar, but ??judging from our orders, it hasn??t affected sales,?? Webster said.

He predicted the fourth quarter will bring a 20 to 25 percent increase in sales. The company??s new flat cobra collection proved a high point.

??The colors are really exciting everybody,?? he said. ??The price point is slightly higher, but people seem to be spending more at that level.??

Retailers agreed with this premise.

??People are interested in true quality,?? said Bill Farmer Jr. of Farmer??s Jewelry in Lexington, Ky. ??Now, the emphasis is on quality information, quality jewelry and quality service. Price point is less the objective. It??s about satisfaction. It??s been a quiet summer, but we??re very optimistic about the fourth quarter. People are getting back into the rhythm of fall, getting back into thinking they need to get things done.??

Serpent themes were a trend in a number of collections, including Mia Koniver??s Mia & Ko. line, which includes a snake and heart pendant in pave diamonds and pronged diamond settings.

??I did it in pave expecting people to like the design, but want it at a lower price point,?? Koniver said. ??But the more expensive items are what??s selling most.??

Mary Aulde, co-owner of Alberian and Aulde, said, ??One pair of sapphire earrings we have cost half as much in tourmaline, but people want the sapphire. People are going for quality and beauty over price.??

They??re also going for color, she noted, and said pearl and gold pieces with thin layers of enamel, tiered necklaces, colored pearl pieces, particularly in pink and green, were strong sellers.

??Fortunately, price has not been an issue because the product is so unique,?? said Anna Maria Castracane, sales manager for the Italian brand Vhernier.

Anthony Camargo of Anthony Nak brought a collection of leather necklaces with pendants and small wire earrings to be woven into existing orders and fill retailers?? floors while the product is still shifting season.

??This was about bringing pieces that are more attainable for every day,?? Camargo said. ??But that??s not where we??re going as a brand, it??s just about diversification. It doesn??t always have to be about couture and dress up. I mean, you could wear these with a T-shirt to the flea market.??
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Monday August 2, 2004
Fine Jewelry Shines on the Web
NEW YORK ?X With baubles just a click away, fine jewelry??s online potential was the topic of discussion at the ??Facing the Internet ?X Meet Players/Hone Your Game?? panel at the Couture Club at JA.

Online luxury purchases totaled $2 billion in 2003, according to Forrester Research, and watch and jewelry sales constituted about half of that, Bear Stearns & Co. estimated.

This accounts for only 2 percent of total fine jewelry sales, which stand at $54 billion, but online jewelry and accessories and other luxury goods spending is experiencing a 30 percent growth rate. The online luxury sector is expected to grow to $6 billion by 2008.

James Hurley, a luxury goods analyst for Bear Stearns, addressed fine jewelry??s opportunities in e-commerce. He noted that the top five online retailers for jewelry sales ?X Blue Nile Inc., QVC, Tiffany & Co., Wal-Mart and Odimo ?X achieved their success because of strong brand names, established customers, substantial capital investment, broad distribution capabilities and the ability for cross-channel marketing.

Two firms that are not in the top five ?X though Hurley described them as the ??800-pound gorillas in the mist?? ?X are eBay and Amazon.com, which launched its fine jewelry site in April. Based on analyst??s research, online jewelry retailers target mid-market customers.

The channel??s growth is being driven by customers?? increased awareness of value of the product, better availability of high-speed Internet access, competitive pricing and increased comfort with payment security, Hurley said.

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