10x

Start looking in the rear view mirror

With the election over (finally), it's time to forecast where our industry is heading.

If we're not in a recession now, we will be shortly. What was learned during the recessions of 1980, 1990, 2001, etc., should test your leadership as well as your management expertise. More than 10 percent of U.S. companies disappear annually, often because of their leaders' denial that consumer needs and distribution channels are always changing. Recessions just speed these downfalls along. 

For example, Henry Ford failed to notice in the late 1920s that consumers wanted more from a car than transportation; they wanted status. His denial gave General Motors a chance to seize market share. In the 1970s, with oil expensive and stagflation rife, the Big Three automakers denied that consumers wanted reliable, affordable transportation—not gas-guzzling status symbols. So the Japanese swept in with precisely what Americans wanted.

To stay ahead of competitors, jewelers need to understand that every product or service has a primary purpose (with jewelry, it's probably appearance) and a secondary purpose (such as enjoyment, status). The line between the two inevitably shifts, depending on what's happening in the economy and society. Detect when it shifts—from high-end to low-end, or from yellow gold to white gold—and you stand a better chance of offering consumers what they want.

We would all like to hear—and learn—what you did to manage your jewelry company during past recessions. We could all benefit from the information.

Jan Brassem is founder of Eclipse Global Consulting LLC, a firm that assists jewelry retailers who are expanding into foreign markets and/or sourcing globally. You can e-mail him at Jan@EclipseGlobalConsulting.com.

Why does Cartier have a MySpace page?

Was MySpace's global deal with luxury jeweler Cartier the final blow in its war with Facebook?

Some say there is no competition; many users have pages on both social networking sites, and it's been noted that the alleged war is being waged by the media.

In side-by-side comparisons of MySpace and Facebook, Web and print publications that cover the technology industry tend to evaluate design, features and usability. News sources that cover business and finance beats, however, have turned the competition into a matter of class.

Initially, Facebook was launched as an exclusive Harvard University site. MySpace, on the other hand, was developed to increase the exposure of Indie music. Now that both sites have users outside of their initial niches, analysts are trying to distinguish which users go where and why.

Naturally, analysts say that Facebook, with its blue-blood background, attracts the upper echelons of society, while MySpace users are typically low- to middle-class.

Contrary to analysts' class theories, Travis Katz, managing director of international operations for MySpace, claimed in a recent Advertising Age article that its network reaches more users with a six-figure income than Facebook or Yahoo 360. Obviously, Cartier was convinced.

MySpace's successful history of promoting music and garnering fan support was probably a contributing factor to Cartier's decision as well. Music appears to be an integral part of the brand's Love campaign this year; Cartier even added 12 artists to its current list of ambassadors. Twelve additional artists are featured on its MySpace page.

The luxury jeweler may have also chosen MySpace because its word-of-mouth exposure beats Facebook hands down. On MySpace, the goal of acquiring friends on page profiles is taken quite seriously. Journalist Barbara Walters put out a plea for friends on her television show The View last year. Within days, Walters went from having 2 friends to more than 1,000.

Help, I got a ‘C’ in statistics

Elle, one of the few fashion mags I read from cover to cover, is releasing a survey tomorrow. And it's at the top of my must-read list.

As the barely passing grade on my college transcript indicates, jonesing for statistics is not a habit of mine. But when I read a summary of the researchers' results in a recent Brandweek article, I was perplexed.

How could a survey taken in fall 2007 label women with a median household income of $62,000 "affluent" or "recession-proof" shoppers?

I was really baffled when I read that only 65 percent of these women are in the workforce. If you're a housewife or stay-at-home mom splitting $62,000 more than two ways, "affluent" or "recession-proof" are definitely questionable labels for you. Maybe, the other 35 percent are kept women with hefty allowances.

Then I read that only 57 percent of the women identified as affluent or recession-proof spent $2,000 or more per year on clothes. I thought to myself either this article was written back in the dot-com era when salaries were high and prices were low, or I need to find a new place to shop and attend an SA (Shopper's Anonymous) meeting.

Aside from my concerns about the summary, there's good news for designers, retailers and others who profit from those with a penchant for fashion. Eighty-one percent of affluent or recession-proof women are more concerned about getting what they want than the cost of it. And 57 percent are willing to splurge on jewelry and watches.

Socially minded customers

Are you wooing consumers who are down for the cause? In other words, grabbing the attention of "socially minded customers," a new class of consumer described in a recent International Herald Tribune article?

Identified in a survey conducted during 2007 and 2008 by consultants at IBM in conjunction with the Economist Intelligence Unit, socially minded customers prefer ethically and environmentally responsible products and don't mind anteing up the big bucks to get what they want.

Whether you add recycled jewelry to your product mix, print catalogs on recycled paper or give away recyclable bags, the survey suggests attending to customers with a conscious should be a priority.

If you want to make a more visible impact, try cause marketing. Mike Hess—director of global research and consumer insights for Omnicom Group's OMD, New York—explains his theory to Advertising Age. According to Hess, associating your brand with a cause creates an emotional attachment with customers that traditional advertising can't always produce.

And I'm living proof. I was strictly a Palmolive dish detergent kind of girl until I saw the little school kids cleaning up ducks soiled by oil slicks in a Dawn television commercial.

From the Ronald McDonald House Charities funded by fast-food chain McDonald's to the honeybee-saving campaign of beloved ice cream chain Häagen Dazs, cause marketing has proven itself to be rewarding—both financially and emotionally.

I guess the lesson is it doesn't hurt to wear your heart on your sleeve, especially when it generates positive press and ROI.

Gearing up for a test run

Hello again, it's Michelle Graff, National Jeweler diamond editor and world's most inconsistent (but, in my defense, extremely busy) blogger.

In my last blog posting back in February, I did a roundup of the many varied and somewhat ridiculous diamond products now on the market.

Since that time, diamond manufacturers haven't disappointed.

There's the diamond-encrusted mouse figurine from Diamond Trading Co. sightholder Lazare Kaplan. According to press reports, The Mouse, as it is creatively named, was going to be auctioned off in Malaysia, with bids starting at $20,000 for the 12.36-carat figurine. The Mouse is a display piece that doubles as a brooch and is made using 563 round diamonds, as well as pink diamonds on the rodent's ears, feet and the tip of its tail.

It's 18-karat yellow gold with a silver base and has been dubbed, "the world's largest diamond mouse," as if there were a number of contenders vying for this title. Imagine how quickly the world's largest diamond-studded elephant or blue whale would trump The Mouse.

In addition to The Mouse, I've found the perfect use for the $20,000 iPhone case I blogged about back in February: storing the world's most expensive iPhone.

Priced at $176,400 and designed by Austrian jeweler Peter Aloisson, the iPhone Princess Plus is studded with 318 diamonds weighing 17.75 carats and has an 18-karat gold rim.

Alas, a Russian businessman purchased the iPhone earlier this year, according to news reports, dashing my dream of owning this magnificent phone-case combo.

Do you think he bought the $20,000 case to go along with it?

Next, I move on to hair and body care, with plans to actually test some of these products that claim to give your body and/or locks a diamond-like sparkle.

I recently wrote Nivea Corp. to request product samples of its Diamond Gloss hair-care line. You can see the entire line for yourself here. The site enables you to watch a movie on hair care and use of the products, in case shampooing or hairspray confuse you.

I expect to be blinding men in New York City with my shiny, super-lusturous hair.

Stay tuned!

Retracting my rant

In August 2007, after viewing runway footage and reading industry forecasts, I delivered a passionate rant against the return of style trends from the 80s, including fashion jewelry.

Now it's April 2008, and a recent article in Women's Wear Daily explains how the surge in gold and silver prices during the country's recent economic downturn has made fashion jewelry more popular. It's as if the brands and designers shook a Magic Eight Ball that predicted consumers would soon need to shop for pieces made of resin, plated gold, gun metal or crystal.

Some of the designers mentioned in the article theorize that the resurgence of the trend is not financial based but "another turn in the accessories cycle" or that "costume's moment has come."

On the other hand, Danielle de Marne, fashion director for Scoop NYC, credits celebrity-focused media such as US Weekly and In Touch for the fashion jewelry frenzy, noting that now it's easier for consumers to find the pieces their favorite celebrity was last seen in.

In regards to my former rant, I am still vehemently opposed to high-waisted pants, but I've been snatching up exquisite pieces of fashion jewelry like everyone else. These necklaces, bracelets and earrings are more sophisticated than those I bought in the late 80s with the $100 paychecks I earned from my after-school job at the mall.

How do you feel about fashion jewelry today? Whether you barely like it or simply love it, share your theory about its big comeback.

Say no to faux

I love Louis Vuitton, and not just for its stylish collection of pricey handbags. The luxury brand's stab at shutting down Canal Street in Manhattan is the reason for my recent adoration.

Unfortunately, though, Louis Vuitton is not literally closing the New York City street known for sellers of counterfeit goods that range from jewelry to perfume to music. But, it has partnered with Estée Lauder to fund "Knowledge is Change," a counterfeit awareness program that explains how poser products are fueled by crime networks.

Although you won't me see me passing out campaign buttons and T-shirts at the program's April 10 event, which is described on the Fashion Week Daily Web site, I'm devoted to the cause.

I detest fake goods. It's certainly not because I'm raking in the big bucks and can afford high-end spending sprees. I simply find it a bit pretentious to crave a brand label to the point where you're willing to pay upwards of $100 for an imposter that will probably fall apart before the season is over.

And I'm not encouraging consumers to line the deep pockets of luxury goods brands either. I'm just asking them to "keep it real" and buy brands in their personal price range. For e-tailers with "Tiffany-styled" and "Bulgari-inspired" jewelry, try getting a wholesale account with a genuine designer or manufacturer.

Say no to committing a crime, funding terrorist acts or being caught with a "Carteire" watch instead of a "Cartier."

Reimagine yourself falling for Sears

As a copywriter, I can easily identify the objective of clever advertising. Ironically, I often fall prey to it.

Like the time I chose a mobile carrier solely based on the fact that I was a fan of the celebrity endorser. Because I didn't go with the plan the rest of my family had chosen, I could only offer sincere apologies to my disappointed sister who had been excited by the thought of not exhausting her monthly minutes on our long chats.

With much relief, I learned the other day that I'm not the only one in my circle who swoons to the tunes of advertisers. My BFF explained how she had found an advertising insert in O magazine with a stunning peridot ring that would look great with the chic dress on the opposite page.

She re-enacted her surprised look the moment she discovered the Sears logo in the lower right-hand corner of the insert. "I've never bought clothes from Sears in my life," she exclaimed.

Filled with shame at her low-end clothing desires, she whispered, "But I still want that dress."

Sears would be thrilled to know that its recent campaign is attracting new customers as intended.

The cover of the Sears' Reimagine You magazine-like insert doesn't even mention the retailer's name. The interior is filled with attractive fashion layouts and photography and an occasional Sears ad. So subtle but obviously effective.

The next time you're in Sears look around. You'll be surprised at the jewelry, clothing and even the friends you might find.

Color conspiracy theory

Are vibrant shades of blue, orange, pink and green compelling you to whip out your credit card and spend, despite daily reports on the country's economic crisis?

In a recent article on color therapy, a trend specialist, a market analyst and a researcher divulged manufacturers' plans to boost sales by rendering consumers senseless with bold and bright hues. Actually, the article's contributors described this season's color trend as a strategic effort to change the mood of consumers concerned about the big "R."

Bearing in mind that this news came from professional industry watchers, not actual manufacturers, I'm not so sure I believe it.

Yet, I've noticed a recent splash of color in jewelry, clothing, electronics and home products. However, I didn't view it as a conspiracy to impair my sight (and judgment) to the point where price tags become illegible but products remain irresistible. I simply thought it's spring, color has made a comeback from last season's shades of gray, and I like it.

So the next time I see enameled bangles in vivid colors, or sapphires and emerald earrings, do I call out the manufacturer's attempts at mind control, put on my blue-blocking shades and run out of the store? Or do I simply recognize a seasonal shift in the color trend and decide if it's an economically feasible purchase?

Lord of the rings

In ancient times, a signet ring wielded the power of its wearer. An impression from one on a document was as valid as a handwritten signature is today.

Engraved with a coat of arms, signet rings showed allegiance to a noble family. But that was centuries ago. Donning one these days reveals more about your fashion sense than your heritage.

If you feel the nostalgic style of signet rings is irresistible, you're right on trend, according to recent fashion articles that tout them as the new cocktail rings. The February issue of O magazine highlights nine signet rings, including those from brands Tiffany & Co. and Coach. A recent article in The New York Times also seemed excited about the accessory's resurgence and featured signet rings ranging in price from $65 to $2,050.

While I can appreciate the pristine elegance of signet rings, their demure aesthetic never catches my eye. Similar to a class ring—which I bought neither in high school nor in college—their regal look bores me. I'm a girlie-girl who loves rings that sparkle or instantly make a statement. Sorry, signet ring designers, I'll be sitting this trend out.

On the other hand, when it comes to fashion, I can be easily swayed. So if anyone can show me a signet ring that I might be impressed with, please post it here on National Jeweler Network's 10X blog.