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The Jewelry Industry Has Lost Something Incredibly Important, Group Says

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It faces problems ‘deeper than sluggish retail traffic.’

Bloomberg recently took a look at challenges facing the jewelry industry, including the usual suspects such as falling marriage rates and lack of enthusiasm among millennials.

The article, which examines the landscape that new Tiffany & Co. CEO Allessandro Bogliolo faces as he begins his role, states that the jewelry business “faces a crisis that runs deeper than sluggish retail traffic.”

But the Diamond Producers Association says there’s another issue: The industry has lost its passion. In other words, it’s failing to connect with consumers on an emotional level.

“The industry has become so impersonal in many ways,” says Jean-Marc Lieberherr, CEO of the group.

For example, he tells Bloomberg, many jewelers emphasize diamond-grading certificates. The news organization says that’s “more romantic than a low-risk mutual fund” — but not by much.

The association is trying to inject some verve into the industry with a series of new advertisements. In June, the group announced a 2017 marketing investment of $57 million, more than quadruples last year’s budget.

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In October 2016 the group debuted its “Real Is Rare” advertising campaign directed at millennials, and it stood in stark contrast from campaigns of the past. Two videos unveiled at the time featured couples who’d had critical moments of uncertainty in their relationships.

Jewelry marketing specialist Jimmy DeGroot warned in a recent educational video for INSTORE that many jewelry retailers are, in fact, boring clients to tears with their marketing efforts. The often use slogans like “Quality. Service. Value,” brag about having “the largest diamond ring selection around, or talk incessantly about the four Cs.

For some fresh ideas, check out our recent “If I Owned …” package in which experts and celebrities reimagine jewelry retailing. 

 

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When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”

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