Keep calm and carry on (Part 3)

How you can survive the Target invasion

Part 3 of 3

By Sara Duck

Here are a few tips to help prevent big-box retailers from eating into your bottom line.

Be innovative. If jewellery retailers want to remain current in a competitive market, it’s paramount they constantly innovate with design and merchandizing. Many high-profile stores see the benefit of collaborating with celebrities, designers, and fashion houses on capsule collections or less expensive lines to gain consumer attention. Target recently teamed up with Italian brand Missoni, H&M collaborated with Karl Lagerfeld and Versace, while Top Shop showcased a collection by style icon Kate Moss. The purchasing power is out there—you just need to be on top of this trend. If your budget allows, partner with a celebrity to create or carry an exclusive jewellery line. For inspiration think about Tiffany & Co.’s collaboration with architect Frank Gehry and Birks’ partnership with business mogul Ivanka Trump. For the smaller independent jeweller, Amanda Gizzi, director of consumer communications for New York City-based Jewelry Information Center (JIC), suggests focusing on your “community celebrities” for collaborations, or offering on-trend pieces at fabulous  price points. The key to being innovative is to first draw your customers into the store with a good lower price point category that works for your niche and your business model. “This can help today’s entry-level jewellery buyers be your high-end customers tomorrow,” Gizzi says.

Market and promote. Target has marketed themselves as a “cheap and chic” consumer shopping destination, mixing both traditional forms of media such as print and TV ads, with more modern forms of promotion like Twitter, Facebook, and smartphone apps to get brand exposure. For jewellery stores to be successful these days, Gizzi suggests retailers take a similar approach to marketing and promotion, combining both traditional and modern forms of advertising. One option for shops with bigger budgets and who want to expand their customer base and optimize brand exposure is hiring a public relations agency. These firms can enhance a business’s reputation through various means ranging from media relations to event planning and marketing. They can write and distribute press releases, pitch articles to journalists, plan events where media or community is invited, and even set up advertising campaigns. If your budget is more limited, tap into social media. This is a great and free way to stay connected with your customers and let them know about sales and new merchandise, with the potential of also gaining new clients and followers.

Create an experience. Good advertising may draw shoppers into a store once, but it will only be once if the experience and value for money do not meet customers’ expectations. Shopping for jewellery should be an experience and one that people want to repeat. “Everything from the way the employees dress to the music played in the store should be appropriate and well-orchestrated,” says TV fashion and home consultant, Lynn Spence. “It shows customers you are 100 per cent committed to doing the best job possible.” Retailers should keep in mind they are selling themselves as much as they are selling jewellery. Odyssey Canada vice-president Marc Lachance suggests putting together a team of trained staff with as much product knowledge and dedication to selling jewellery as possible. After all, consumers these days are well-educated; they know what they want, and if the experience isn’t there, they will simply take their business somewhere else. “Offering great after-sales service like free battery replacement, discounted jewellery repairs, and cleanings are all extra special touches that can make you stand out from the larger stores and keep your customers happy and coming back,” Lachance says.

And who wouldn’t want that?

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Going high-tech (Part 3)

A checklist for buying CAD

Part 3 of 3

By Shele Letwin

Now that you’ve chosen to incorporate CAD into your store, the next decision to be made is where to set up the workstation.

● Most store owners opt for the showroom floor, complete with a table and chairs. This can serve two purposes. First, it advertises the fact the store offers CAD as a service, and second, it allows the salesperson or designer to remain on the sales floor. However, if space and resources permit, a workstation in a backroom can offer more privacy and allow for better concentration on the task at hand.

● PC or laptop? If you decide to start with a 2-D program, you may already have a computer or laptop that can run this technology. However, 3-D programs require a faster processor to speed up some functions and rendering time, which might make a PC a better choice. (PCs are also less expensive and more powerful than comparable laptops.) Consider also the space available in your store—do you have room for a stationary computer?

A 3-D CAD program allows users to create photo-realistic renderings that can be e-mailed to clients for further tweaking or approval. Photo courtesy GV Design Canada

● Training is a major part of the equation and as such, thought must be given as to who will be using the software. Generally speaking, those using a 2-D program must have a pretty good imagination and are able to think quickly to convey a design idea. They should also have good listening skills to clearly understand what clients are looking for. After all, most consumers do not possess knowledge of terms we use day in and day out in the industry, and a bit of deciphering may be required. In contrast, 3-D programs are more intense, requiring more specialized training and concentrated effort to learn. Often, it is the store’s owners or a long-time employee who is trained. Although bench experience or design knowledge is a definite plus, I’ve found those with a passion to learn and who do not give up easily can design a well-made piece of jewellery. On average, learning 3-D requires about two hours of practice every day for three to six months. While this might seem like a significant investment in both time and energy, the rewards are many.

As an independent retailer, you have the greatest opportunity to quickly change how your store operates. In contrast, chain stores and large companies are bogged down with meetings, red tape, and other obstacles. In a competitive arena like the jewellery industry, you need to move forward. Easily said, but a lot of us are frozen by fear of change and investing in new technology when times are a little tough. Instead, some may decide to cut back on staff or other expenses and hope for the best. From personal experience, I know there are tough decisions to be made when obstacles arise, but I would rather take a chance than regret not making a move that benefited my company in the long run. Then I know I did my best for me, my family, and my staff. Although some may look at CAD technology as a betrayal of longstanding jewellery-making traditions, others would argue that it protects them, as it ensures they survive the technological age.

 

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Keep calm and carry on (Part 2)

How you can survive the Target invasion

Part 2 of 3

By Sara Duck

Are you ready for the Target’s entry into the Canadian marketplace?

“Big-box stores like Target offer their customers convenience,” says Amanda Gizzi, director of consumer communications for New York City-based Jewelry Information Center (JIC). “They are able to provide entry-level prices on the newest trends in fashion.” She explains big-box stores have a model of what works for their customers down to a fine art. Here are five tips you can use to help your store be competitive and go above and beyond the customer experience.

● Find a niche. “A retailer must find what sets them apart and be the best at that targeted niche,” Gizzi advises. For any retailer, large or small, success can only be achieved when there is definite strategy combined with clear execution. A strong strategy or game plan gives you vision of where you need to get to as a business and how you’re going to get there. Of course, a critical characteristic of any successful strategy is focus. This is a fundamental requirement of any business plan, but it is critical if a small retailer is to compete successfully against larger competitors. As retailers, you may not have the luxury of doing everything your larger competitors do. You quite simply may not have the financial or human resources. Instead, focus your time, energy, and resources on that one thing you do best—and better than anybody else. Ask yourself: What is the one thing your customers come to you for? Answering this question correctly, and precisely, is essential to a successful strategy for finding your niche, which can then set you apart from the competition.

● Build relationships. One very important aspect separating big-box stores from smaller independent ones is the ability to establish a good personal relationship with customers. Everyone knows how frustrating it can be at the bigger stores to find people to answer questions about a product or to source merchandise. Often a quick trip to a superstore can turn into a lengthy stay and end in disappointment. “The independent jeweller can explain things clearly and gain more trust from the customer and in this way build a relationship,” says Steven Greenwald, of Supreme Silver in Toronto. “This is the most important part of a business.” Make it part of your mission to get to know your customers individually. Build a connection by knowing their names, style preferences, and jewellery desires. Customers want to feel valued and comfortable; often this will propel them to make a purchase in your store rather than somewhere else, and keep them coming back for more.

More to come of this story in Part 3.

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VicenzaOro ‘Winter’ 2012 (Part 4)

Part 4 of 4

By Jacquie De Almeida

With traditional jewellery markets in various states of economic stability, designers continue to diversify and target new ones currently experiencing an upswing.

Speaking at VicenzaOro’s ‘Winter’ fair, Eduardo Bruner, marketing and creative director for Brumani, says Eastern Europe and South America continue to be promising markets for jewellery manufacturers.

“They are open to fresh merchandise and fresh designers,” says Bruner, adding Canada is on his radar screen for expansion. He cautions success all depends on finding the right retail partners.

“They need to share our vision and believe in our product,” he adds. “You need to join the brand’s concept with a retailer who is focused on the same target consumer.”

18-karat red gold ring by Hulchi Belluni, with smoky quartz.

Lies Vervaele, sales representative for Hulchi Belluni, says sharing a brand’s vision is just the beginning to building a following. Part of the equation also requires the right touch where presentation is concerned, including point-of-sale materials. “We follow the feng shui philosophy very closely,” Vervaele says. “You see it in the design of the jewellery, in our showcase displays, and at our booth. We use only natural materials like wood in the booth. We’re trying to give our clients a warm welcome.”

While buyers and retailers made their deals on the show floor, various seminars helped keep visitors up to date on the latest industry initiatives and developments.

Once again, the Responsible Jewellery Council (RJC) made its case for ethical sourcing, presenting details about gaining member status and its voluntary chain of custody certification, which is in limbo for the short term. In early December, the council announced it was delaying implementation of the initiative for diamonds in light of certain trade objections.

The news appears to have caught the RJC itself by surprise, after some members of the standards committee said they felt the previous two-year consultation with industry players wasn’t thorough enough and more needed to be done to address certain issues, such as ensuring chain of custody for melee.

Catherine Sproule, RJC’s chief operations officer (COO), says a sub-committee has been formed to do the additional consultation with the provision it report back at the RJC’s annual meeting next month. In the meantime, chain of custody certification for gold and platinum group metals will move ahead.

While Sproule says the hiccup in the council’s plans was disappointing, she is quick to point out the RJC is a member-driven organization and it’s important to listen to all voices.

“It’s a challenge to have one group that is so anxious to be compliant and be certified and another that wants to wait,” she says. “So we’re trying to satisfy everyone, but recognize that we can’t let the diamond timeline go on and on if we’re achieving certifications for the other products.”

Sproule says the RJC is looking into including gemstones as part of its product groups, and is consulting with the International Colored Gemstone Association (ICA) and the American Gem Trade Association (AGTA). Silver and pearls are also possibilities, but for now, chain of custody remains the priority.

While intentions may be good, obstacles exist to sourcing ethical materials. Valerani says she would be happy to use fairtrade gold if there was greater supply. She says these types of initiatives are very promising, but if companies cannot get the material, there is little else that can be done. Still, she says challenges like this one should not dissuade companies from adopting ethical standards. “My use of fairtrade gold might not change the world, but if everyone gets involved, it helps,” says Elisabetta Molina Valerani, co-owner of Valenza-based Garavelli.

VicenzaOro ‘Spring’ will be held May 19 to 23.

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Going high-tech (Part 2)

A checklist for buying CAD

Part 2 of 3

By Shele Letwin

Once you’ve made up your mind, the next step is to consider your options. Hopefully by the time you’re done reading this article, you’ll have a better idea of which CAD program is right for you. Here are a few points to get you started.

3-D CAD programs can provide the greatest design flexibility, particularly when used for custom work. Photo courtesy GV Design Canada

● Ask yourself what kind of program best suits your business. Is 2-D software the way to go or 3-D? Simply put, 2-D technology allows you to manipulate a photograph you’ve uploaded from a camera to create a new design on the fly— essentially, the user can cut and paste different features from an existing library and change them according to the customer’s preference.

These programs are often easier to learn and work with than 3-D technology, and are well-suited to the sales floor, allowing jewellers to present their customers with a photo of a new design in minutes. (Consider this: a 2-D program can help a staff member ‘sketch’ a custom wedding band on the spot for the excited bride-to-be.) Once finalized, the image can be given to a goldsmith to hand-carve the wax sculpture or e-mailed to a wax service bureau, where the model can be created using a 3-D program in combination with a CNC or rapid prototype machine. Generally speaking, a wax service centre may charge in the neighbourhood of $150 per design and carving. Hand-carvers, on the other hand, can start at $50 per hour.

How difficult is it to use a 2-D program? If you can find your way around basic computer applications like e-mail or Microsoft Word, 2-D software should be manageable. Cost-wise, 2-D commercial programs are in the neighbourhood of $350, while jewellery-specific programs with a library of gems, models, and design tools can start at $1500.

Since practically anything imaginable can be created with 3-D programs, these can provide the greatest design flexibility, particularly when used for custom work. With it, a user can create, manipulate, or change any facet of a design, such as metal colour, a stone’s size and setting, or the width of a band. In addition, 3-D programs allow users to rotate the photo-realistic rendering in any direction, enabling the designer and/or client to view the piece at any angle. Once a design is finalized, most programs generate metal weights and stone sizes for easier quoting.

This last point is an important one and reminds me of when I was working remount shows in the ’90s. I recall being asked to quote on a platinum piece and the anxiety that ensued. If my estimate were off by one gram, it would cost the company $100 in profit. Today, gold costs more than platinum, but the chance of making a mistake when estimating still remains. The biggest lesson I learned by doing remount shows was you have to close the sale right there, and guessing can still get you into trouble.

Compared to 2-D programs, the level of difficulty of learning to use 3-D software is greater. However, as with most endeavours, the more time you invest, the better the results. Also, while the program allows a user to create any design, basic knowledge of jewellery making is ideal as a piece should stand up to normal wear and tear.

As technology advances, the goal of most software companies is to make their product easier to operate. While generic 3-D CAD programs can cost about $995, they likely will not include a library of gems or specific jewellery design tools. In the end, you may spend far too much time trying to design with the software and, by extension, losing money. Ranging anywhere from $3000 to $8500, a jewellery CAD program that includes a library and design tools may be a better investment, but you will still need to put in the time to mastering the steps. Although our discussion has centred on technology, we shouldn’t forget that emotion is at the heart of what we do. The personal satisfaction gained from seeing the look of happiness on a client’s face when they see their unique design can be quite moving. When that happens, you know the time and effort it took to design and create the rendering was worth it.

If you are just starting to offer custom design in your store or would prefer easing into 3-D, there is proprietary technology on the market that might suit your needs and enable your clients to become their own designers. Think of it as an interactive catalogue featuring a library of existing models. With it, consumers can customize various aspects of rings and pendants, using slider controls to alter shape and size. Once finalized, an estimate is generated with your markups to allow staff to provide the customer a quote on the spot. The file is then sent to the software’s supplier to cast, polish, and/or set. In terms of ease of use, this technology is the least difficult of the ones discussed here, since design features are simply chosen from existing options.

● One of the obstacles to effectively integrating CAD into a store is a positive attitude toward its use. Sometimes, all it takes is a little creativity, says Jean-Pierre Verbunt of Ancaster Jewellers in Ancaster, Ont. Using CAD, he has created models of unusual stone sizes suppliers don’t normally carry, building a library of classic styles over the years that can hold melee of different sizes. Most are on display in the showcase to be used as examples of the store’s work when making a custom piece or perhaps redesigning an heirloom. Next time, we’ll look at a few more points to consider before buying CAD software.

More to come of this story in Part 3.

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Midore takes on new rep in B.C.

Hal Shugg is the newest addition to Midore Inc.’s sales team.

With more than 30 years’ experience in the watch and jewellery industry, Shugg will be responsible for launching Bering watches in the province.

The Danish brand features high-tech ceramic and sapphire crystals. He will also oversee Midore’s other lines—Puma, Esprit, and Orleans.

“We are delighted to welcome Hal to the Midore team and look forward to building our brands in this very important market,” said company president, Michael Negreanu.

Shugg can be contacted via e-mail at hrshuggsales@shaw.ca or at (604) 807-1348.

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