The Jewelry District

JCK editor-in-chief Victoria Gomelsky and news director Rob Bates sit down with Da...

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates look ahead into 2023. The hosts, noting that it's folly to predict more than one year ahead, make some educated predictions for the year including: the end of the pandemic, which might bring an end to some new customs while others continue to be new norms; a shakedown in the lab-grown sphere resulting in many leaving the space as prices fall below profitable levels; growing demands for transparency of sustainability claims, including both consumer demand and legislative standards; and an increased presence of AI in the different aspects of the jewelry business.Sponsored by De Beers: institute.debeers.comShow Notes02:45 Looking ahead into 202307:30 Lab-grown diamond shakeout10:20 New transparency laws20:00 How AI is changing the industryEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (jckonline.com); @jckmagazine (https://www.instagram.com/jckmagazine/); institute.debeers.com (http://institute.debeers.com/)Show RecapLooking Ahead (But Not Too Far)The pace of change is so quick, and unexpected events—like the pandemic—make looking further than one year into the future a fool’s errand, so Rob and Victoria focus on the year at hand. Victoria found a list of predictions for 2023, one of which these is the end of the pandemic, which experts estimate will happen sometime in 2023.Some trends brought on by the pandemic are likely to remain—such as how it pushed businesses to take a digital-first approach—but others—like masks and distancing—may fade away. Jewelry companies seem much healthier now. They have a reserve of cash and goodwill, better consumer data, etc. Despite global economic factors like inflation, there is optimism.Lab-Grown Diamond ShowdownRob predicts that there will be a shakeout in the lab-grown diamond sector this year. Prices are falling, and not everyone can make the business profitable that way. Days of large margins are petering out, though demand is still strong. Rob foresees that lot of people will leave this market. The natural diamond industry is also dealing with challenges, falling prices. Lab prices are falling because they too are priced based on Rapaport, so when natural diamond prices fall, lab-grown prices follow suit. It has become a race to the bottom, and the rapid growth in this category is about to experience some upheaval.Demands for Transparency in Sustainability ClaimsGreenwashing was put to the test in 2022. People want proof you’re doing what you say. This will continue in 2023. Victoria spoke to a few researchers in this field. One was a Harvard student with a focus on sustainability science. She spent time and research poking holes in those sustainability claims different companies make. JCK published a story on how to create a sustainability report last year. This kind of transparency of reporting will soon become law. It has passed in the EU already. This will apply for public as well as private companies. These laws apply to larger companies that do business in Europe too.For a long time, the wide world of luxury brands got away with being very opaque. There was a mystique around how they did business. Gen Z will ensure that words and trust are not enough.

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates talk holiday predictions, the theme of which is cautious optimism. They discuss inflation and its affect (or lack thereof) on spending on jewelry, depending on strata. (The wealth divide is also the dividing line for this consideration.) The hosts also talk about Rolex’s recent announcement that they are entering the preowned watch space, and the questions this brings up about the secondhand marketplace. They also note a slowing down in the colored diamond market.Show Notes01:30 Educated guesses about the holiday season03:40 Inflation concerns09:15 Rolex launches certified pre-owned program19:30 Colored diamond category slows downEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: @jckmagazine, jckonline.comShow RecapModerate Hopes for the HolidaysAs they look ahead and talk about the holidays. When Victoria spoke to Abe Sherman at Buyers Intelligence Group (BIG) who said, “I’ll tell you in ten days.” For jewelers, things don’t come into focus until the very last moment. They suspect this holiday won’t be as strong as last year. Most of those who Rob has spoken to think that even if it is a few points lower than last year, they could still characterize this year’s holiday sales as a success.When Signet announced their results, Gina Drosos gave the reasoning that last year, many did their shopping early because of supply chain worries. This year, that doesn’t seem to be the case. October had been down, but things are picking up closer to the holiday. The last two years are such a high base. People don’t necessarily expect those levels to continue, but still hope for a successful year.Effects of InflationThough inflation has calmed, it is still higher than we are accustomed to. This affects how the middle class spends on jewelry. Whether it gives the wealthy pause about how they spend, Victoria is not sure. Increasingly, those markets are bifurcated: the upper class does not have to make adjustments to their spending the way the middle and lower-income shoppers do when economic concerns come up.The pattern of the last several years has been gains on the higher end and not as much on the lower and middle. During the pandemic, there were gains across the board. Now, we’re going back to the pre-pandemic pattern. Signet has noted that the gains they are seeing are at the high end, or “accessible luxury.”Something jewelers learned during the pandemic was to up their digital game. Rob has noticed a lot of jewelers putting out interesting content on TikTok. This is the way of the future when it comes to reaching buyers. Jewelers have also used YouTube to tell their store’s story in an appealing way. Rob comments on the organic nature of TikTok. It feels personal. There’s a strange charm to it being just one person with their phone.Rolex Enters the Pre-Owned SpaceOn December 1st, Rolex announced they were formally entering the preowned space. It is launching a program in Europe through Bucherer. Time will tell when it will come to the US. Bucherer is a Swiss retailer that has a presence in the US already through Tourneau, and are established in the secondhand space.A few big questions are, who is setting the pricing,

Join JCK editor-in-chief Victoria Gomelsky and news director 

JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/) discuss Victoria’s recent trip to Sicily to see Jacob & Co.’s new Opera Godfather 50th Anniversary watch commemorating the classic film. Next, Victoria and Rob explore the growing power of brand names in high jewelry, a trend fueling forays into real estate and hospitality. Victoria breaks down how changing legislation may pave the way to more transparency on sourcing and the supply chain. Finally, Rob shares what recent research by The Women’s Jewelry Association and Citizen Watch America revealed about Gen Z—and finds out how well he and Victoria speak Gen Z’s language with a quiz on current slang.Show Notes:02:15 Victoria recaps her trip to Sicily to see Jacob & Co.’s Godfather watch10:40 Rob and Victoria discuss the growing power of high jewelry brand names16:35 Victoria speculates on the current state and likely future of transparency in the industry17:50 Rob reports on a recent WJA event sponsored by Citizen Watch focusing on Gen ZEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: @jckmagazine, JCK’s e-newsletterShow RecapJacob & Co. Godfather Watch Honors Hollywood HistoryVictoria describes her visit to Taormina, Sicily, to see Jacob & Co.’s new Opera Godfather 50th Anniversary watch, a limited-series $500,000 collectible timepiece that plays the theme from the Oscar-winning film and features 13 iconic scenes from the movie engraved on the case using laser technology. Highlights of the trip included Godfather trivia and tales recounted by actor Gianni Russo, who played Carlo Rizzi, as well as visits to locations from the film. For Victoria, the experience held special meaning because The Godfather was her father’s favorite movie.The Growing Power of High Jewelry Brand NamesRob notes that Jacob & Co. is working with a developer in Dubai to create an ultra-luxe residential tower, with designs inspired by the company’s jewelry. Victoria says this reflects the increasing power of brand names in a market that now comprises 25-30% branded jewelry. Her recent conversations with CEOs from Bulgari, Pomelatto, and Tiffany & Co. suggest that branded jewelers are optimistic about the future, expanding factories and brick-and-mortar stores that elevate the retail experience, such as the soon-to-open Tiffany flagship store. They are also banking on the trust their names inspire to explore other spheres. Bulgari, for example, is expanding its hospitality footprint with a resort in the Maldives. High jewelry brands see growth potential around the world and in smaller-tier U.S. cities with high concentrations of wealth, like Aspen and Boston, where A. Lange & Söhne recently opened a boutique. This supports the theory that the rich are getting richer, Victoria observes. The Truth About Transparency and Changes on the HorizonVictoria observes that it’s rare for companies to share real, on-the-record answers to questions about corporate responsibility. She recently wrote a story about transparency in the watch trade for which she called 12 high-end watch makers, including Cartier, Audemars Piguet, Patek Philippe, and Rolex.

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates talk...

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates talk about Conversations in Park City, a new De Beers CEO, and a new spin on a classic Patek Philippe watch. Victoria recaps her time in Park City, where she contemplated the present and future of retail with experts curated by PSFK. Rob reports on the change in leadership at De Beers, where Bruce Cleaver has stepped down and become co-chairman, and Al Cook will step into his shoes as CEO. Victoria covers the latest iteration of a popular Nautilus and what it means for the direction of the Patek Philippe brand.Show Notes01:00 Victoria interviewed the president of Bulgari who was in the Maldives.04:30 A recap of Conversations in Park City09:00 A change in leadership at De Beers19:55 New Patek Philippe watchEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: @jckmagazine, jckonline.com Show RecapHospitality Meets JewelryVictoria got up early to speak to the president of Bvlgari, Daniel Paltridge, who was in the Maldives at the time. They talk about the Bvlgari hotel and how expensive it is—€2,500 per night! Rob wonders what guests might get in addition to the room for that price. (Likely not jewelry.) There are other examples of brands that cross over from fashion to hospitality—Armani, Shinola, etc. The hope is that you can capture an audience in one and then target them in the other side of the business.Conversations with Friends—in Park CityVictoria recently traveled to Park City, UT, to Conversations in Park City, the leadership summit hosted by Jewelers Mutual. The brainchild of Mark Smelzer, head of content for Jewelers Mutual (and JCK’s former publisher). He had a vision to pull together the crème de la crème of the industry and bringing them all to a leadership retreat. Everyone met at the St. Regis in Deer Valley, with their loved ones in tow. Victoria brought her family and enjoyed the wonderful weather.But the main focus was the content. Mark pulled in one of the leading thinkers on retail strategy and futurism, PSFK. Jeff Weiner of PSFK brought in some experts that they’ve used for their presentations—on the omnichannel experience, “phigital” retail, and other things retailers need to be prepared for. It was both present- and future-focused, informing retailers about shifts in the consumer atmosphere. Though Victoria tends to tune out when people talk about NFTs, she found this coverage easier to digest. It was a beautiful setting for some great conversations. Overall, the event was brief and meaningful. She hopes there will be another one next year.A Change in Leadership for De BeersRob reports that Bruce Cleaver is stepping down as CEO of De Beers and handing over the reins to Al Cook—an industry outsider who worked for an energy company. His predecessor, Philippe Mellier, was also an outsider. He got great results for the bottom line of the company, but injured some relationships with clients who felt he drove prices too high. Bruce repaired that relationship, and is well-respected. Though it’s not clear why he is leaving this position, he will still be involved as co-chairman. It’s a job where you’re never bored because there are so many aspects to it.Victoria wonders about the selection process.

You’ll hear JCK editor-in-chief 

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates disc...

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky and news director 

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/) discuss Signet's acquisition of Blue Nile, what it means for the brand and how they might evolve as a result. Victoria reports on her research into fall's biggest fashion trends, which include animal motifs and a resurgence of the power-dressing era of the 80s and 90s. Show Notes03:00 Signet is acquiring Blue Nile12:00 Victoria reports on the latest in fall fashion19:00 80s and 90s jewelry styles are on trendEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (jckonline.com), @jckmagazine (https://www.instagram.com/jckmagazine/)Show RecapSignet to Acquire Blue NileBig news in the dog days of August: Signet is acquiring Blue Nile. This is part of Signet's pattern: they keep acquiring the competition. One of the things current management is focused on is growing market shares. And this is the easiest way to accomplish that. However, there are high customer acquisition costs that have to be paid to Google and Facebook. Google, Facebook and other companies like them have gotten so large, it places a burden on other competition because of the high expensive to advertise online. Rob sees this as a troubling sign on a higher level.The deal will likely contribute to the long-term sustainability of Blue Nile's brand. But people worry how many businesses are all consolidated under one large umbrella. Victoria wonders how Blue Nile might evolve under Signet. It's not clear where the brand will fit among the other jewelry brands under Signet now.Victoria recalls the interesting things that Blue Nile has done in recent years: Their 10 by 10 collaboration with De Beers and designers of color, for example. They want to be a brand that speaks to people, not "the Amazon of jewelry."Themes in Fall FashionVictoria has been doing research into the latest fall fashion trends and reporting on them in the JCK Special Report newsletters. Here are a few themes she's been noticing, to help inform what jewelers may want to stock. A surprising but endearing trend gaining steam is animal-inspired jewelry. Though this has been going on for thousands of years, there are times when the motif gains steam. Victoria spoke to an expert on this category: Marion Fasel, jewelry historian and founder and editorial director of The Adventurine (https://theadventurine.com/). She worked on the Beautiful Creatures (https://www.amnh.org/exhibitions/beautiful-creatures) exhibit at The American Museum of Natural History. The two animals that come up over and over again, according to Fasel? Snakes and butterflies.Snakes have a beautiful shape that lend themselves to jewelry, which can symbolize wisdom and eternal love. The butterfly has emerged in many jewelry collections this year. Symbolizing rebirth and transformation, it's particularly resonant to people right now as we begin to emerge from the pandemic. Victoria describes some collections she's seen that feature interesting creatures as pendants. In the vintage space, sales of animal-inspired pieces are soaring, as well. The zodiac trend also contributes to the popularity of the animal theme, since many of the symbols of the zodiac are animals as well.80s Jewelry Makes a ComebackThough it might be surprising, jewelry from as recent as the 90s can now technically be considered vintage. And,

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/)...

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/) talk about secondhand watch prices, the cost of entering the jewelry business, and an early look at a diamond documentary.Show Notes00:30 Victoria talks about the secondhand watch industry and its fluctuating prices.13:24 Victoria questions the economic barriers to getting into the diamond industry.17:53 Rob reviews the new diamond documentary Nothing Lasts Forever.Episode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (https://www.jckonline.com/), @jckmagazine (https://www.instagram.com/jckmagazine/)Show RecapSecondhand WatchesVictoria comments that it’s a little bit slow in the jewelry industry in July, but it’s a nice break from the busy earlier months. She then dives into the secondhand watch market and the online auction market. The companies she spoke to have seen great success, and there’s been growth in both sales and new buyers. People are flocking to online auctions because of the pandemic, and prices are fluctuating at the moment, so market value isn’t exactly clear. Auctions help determine that market value. Rob asks how the most well-known brands have reacted to this. Victoria said they were definitely watching and hugely discouraged it.The Cost of Entering the Jewelry BusinessVictoria says it’s very expensive to enter the jewelry industry unless you already have family ties or come from a great deal of wealth. To amass the materials and create a jewelry line is an incredible task, and an expensive one at that. There are PR, trade shows, photography, and more that all cost money to get your brand out there. This isn’t to take away from the quality of jewelers’ design capabilities, but it's important to note that all aspects of this business take tremendous amounts of capital. Emili Vesilind wrote about how to get your business started in this JCK Pro article (https://www.jckonline.com/article-long/real-costs-breaking-into-jewelry/). She posits that it takes a bare minimum of $37,000 to start a jewelry business, which doesn’t encourage diversity in the jewelry industry.Nothing Lasts ForeverRob wrote a review (https://www.jckonline.com/editorial-article/showtime-diamond-nothing-lasts/) about the new documentary about lab-grown diamonds, Nothing Lasts Forever, airing this fall on Showtime. Rob says it was a beautifully shot film and describes it as an odd experience and hard for him to be objective about, as he knows so many people in the movie. He believes most people will be unhappy with this film, and that it was slanted against the natural diamond industry. Nothing Lasts Forever is scheduled to stream on Showtime in September.

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/) talk with Mithun Sacheti, CEO of CaratLane.Show Notes00:30 Victoria and Rob introduce their guest Mithun Sacheti, CEO of CaratLane.07:17 Mithun compares CaratLane to Blue Nile.10:15 Victoria asks about his early business.14:42 Mithun describes his most recent experience at the JCK show.16:09 Mithun talks about Tanishq purchasing majority share of CaratLane.21:00 Rob asks about CaratLane’s brick-and-mortar stores.Episode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (https://www.jckonline.com/), @jckmagazine (https://www.instagram.com/jckmagazine/), CaratLane.com (https://www.caratlane.com/)Show RecapIntroducing Mithun SachetiMithun Sacheti is the CEO of CaratLane, which is often described as the Indian version of Blue Nile. He spoke to JCK from the southeastern coast of India. His mother and father were in the jewelry business, and Mithun describes it as a “generational business,” which is how he got into it himself. Mithun studied at GIA and worked briefly in San Diego. When he returned to India, he opened his own jewelry store.Blue Nile InspirationMithun compares the Indian jewelry business model to the business in the United States. Mithun says he learned from Blue Nile that you have to find the easiest place to enter the industry. In India, while diamonds are fine to sell, its real strong point is selling jewelry as opposed to loose diamonds and engagement rings. In the early days, Mithun describes a hostility similar to what Blue Nile faced in its early days.Building the BusinessVictoria asks how Mithun coaxed people to buy originally, and he said initially consumers were resistant. CaratLane built a try-at-home model in an attempt to get people to buy their diamonds, which ended up being successful. Mithun doesn’t think this model would necessarily work in America.The JCK ShowMithun was just at the most recent JCK show—the first one he attended was back in 1998. Victoria asks for his take on this year’s JCK show, and Mithun said it was all about making connections.TanishqIn 2016, Tanishq purchased a majority share in CaratLane. Tanishq is the largest jewelry company in India and has been around for 25 years now, with a market capitalization close to $1 billion. Mithun says Tanishq has been a great partner, and CaratLane has been able to grow on a much faster scale thanks to its involvement. Victoria asked what other kinds of things CaratLane has tried as a company, and Mithun describes a virtual try-on, different from augmented reality, that didn’t pan out. One thing that worked very well was building an omnichannel network.Brick-and-MortarRob asks why CaratLane believed it needed a brick-and-mortar store when it was successful online. Mithun believes there is a need for tactile jewelry shopping, even though consumers find jewelry online.(Photo courtesy of Mithun Sacheti)

In This EpisodeYou’ll hear JCK editor-in-chief Victoria Gomelsky (https://www.jckonline.com/writer/victoria-gomelsky/) and news director Rob Bates (https://www.jckonline.com/writer/rob-bates/) discuss former JCK editor-in-chief George Holmes’ legacy, LVMH's investment in Lusix, and Russian diamonds and Ukrainian jewelers.Show Notes00:30 Victoria and Rob remember former JCK editor-in-chief George Holmes13:51 Victoria reports on the state of the industry17:15 Rob reports on LVMH’s investment in Lusix20:03 Victoria and Rob talk about Russian diamonds and Ukrainian jewelersEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (https://www.jckonline.com/), @jckmagazine (https://www.instagram.com/jckmagazine/)Show RecapRemembering George HolmesGeorge Holmes, JCK’s former editor-in-chief of 22 years, died last month (https://www.jckonline.com/editorial-article/jck-editor-george-holmes-dies/). Victoria describes his as a legendary editor. Rob talks about his time working with him and says he was gracious and intelligent with unyielding editorial integrity. Victoria and Rob share an audio clip from an earlier podcast (https://www.jckonline.com/editorial-article/podcast-jewelry-district-ep-4/) of Joe Thompson speaking about George Holmes.State of the IndustryVictoria discusses a Jewelers Board of Trade webinar with its president, Erich Jacobs. He showed graphs on consumer sentiment, confidence, unemployment rates, and more. Erich says unemployment is linked to consumer satisfaction—if unemployment is low, generally consumer confidence is high. Now, we’re seeing a break from this. We have record low unemployment and low consumer confidence. Victoria says retailers may feel a little pinch in their bottom line, as consumers aren’t using credit cards as much.LVMH and Lab-Grown DiamondsRob comments on the lab-grown space and LVMH Luxury Holdings' investment in Lusix, an Israeli lab-grown diamond company. LVMH is not being shy about its investment—but this investment raises questions. Rob believes LVMH wants Lusix to scale with more persistent production. Victoria asks if the luxury sector is finally ready to accept lab-grown diamonds, and Rob isn’t sure.Russian DiamondsVictoria asks what’s happening in the world of Russian diamonds, and Rob says there are rumors in the industry about banks in Europe not wanting to fund Russian diamond shipments. Rob says the big companies have figured out a way to get diamonds back on the market after a slow run for Russian diamonds. On the flip side, Victoria has spoken to many Ukrainian jewelers, and her takeaway was their commitment to improving the industry and getting attention for Ukrainian jewelers in the market.