Diamond Gems Weekly - September 16.
We’re approaching crunch time. The countdown to the holiday season has begun.
Signet Jewelers said it brought forward some of its marketing spend to the third quarter due to the US election. Perhaps the idea is to push as many sales as possible before the November 5 ballot to avoid sales being affected by the result – whoever wins.
That may be a somewhat pessimistic approach.
Caution during an election year used to be a thing, with the uncertainty affecting spending patterns and confidence. It seems to be less of a factor these days. As one retail consultant explained, that’s probably due to the non-stop news cycle. It almost seems antithetical, but the volume of news we consume is so overwhelming outside an election cycle that consumers are left largely unaffected by the craziness when the race heats up.
That’s not to say the election result won’t impact confidence after the fact. That seems to be the implication of Signet’s move. Regardless, the company noted in previous years that the peak selling season is getting earlier as savvy – or, hyper-organized – shoppers start their Christmas shopping in October. One way or another, it might be smart of jewelers to launch their campaigns earlier this year, as Signet intimated.
Marketing seems to be the undercurrent theme running through the news.
>>> Expect to see more collaborations between marketers and retailers this holiday season. Signet Jewelers joined forces with De Beers “to advance jewelry consultant training, natural diamond marketing, and several new branded natural diamond merchandise collections launching in the third quarter,” the jeweler said.
>>> The Natural Diamond Council (NDC) announced a partnership with Riddle’s Jewelry for the adoption of the NDC’s ‘Real. Rare. Responsible’ campaign across its 64 stores in the Midwest. The NDC has similar tie-ins with Ben Bridge, David Gardner’s Jewelers, R.F. Moeller Jeweler, Sissy’s Log Cabin, Cornell’s Jewelers, Brown & Co Jewelers, Bijouterie Italienne, and Marquirette’s. Here’s how retailers can get involved: Real. Rare. Responsible Campaign.
>>> Signet’s second-quarter results surprised on the upside, even if revenue fell 7.6% year on year to $1.5 billion and the company posted a loss of $98.5 million versus a profit of $75.1 million. Comps have turned positive as JCK Online’s Rob Bates explains: Signet’s Sales Fell, So Why Did Wall Street Kvell?
>>> China comes into focus this week, with the Hong Kong Jewellery & Gem World show running September 16 to 22 (Monday through Sunday). Will the show exceed our low expectations and signal a return of Chinese buyers to the diamond market? I share my thoughts in my latest video analysis: The Chinese Market is Slipping, With a Reduced perception of Diamonds.
>>> Chow Tai Fook is planning to expand into southeast Asia, appointing Gaby Ferreira – a former exec at luxury house Loewe – to oversee its international strategy. The group is hoping to tap the rising middle class and projected economic growth in the region, coupled with the recovery in tourism and sustained local market demand for jewelry.
>>> The VicenzaOro show ended with mixed reviews, as my colleague Sonia Esther Soltani reported that Jewelers were Upbeat while Dealers Face Price Declines
>>> Lucara Diamond Corp. unearthed another historic stone at its Karowe mine in Botswana, following the recovery of the 2,492-carat stone last month. The latest find, a 1,094-carat diamond, will be cut and polished by HB Antwerp with whom Lucara has an agreement for its specials. Check out my observations about the stone in my latest Diamond Minute.
Image: The 1,094-carat diamond. (Credit: Lucara Diamond Corp.).
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