February 2008 Archives
Consumers Want That Warm Fuzzy Feeling Shopping on The Internet.
Allurent Inc. in its third annual Holiday Shopping Survey of Online Customer Experiences, reports that 67 percent of consumers said they expect greater quality of their online shopping experience.
The top reason for the increased expectations was constantly improving technology (66 percent).
Other reasons cited were:
1. Consistent advertising of Web sites by retailers, which makes shoppers think they should be investing more in improving the sites (46 percent).
2. Consumers having high-speed bandwidth and wanting sites to present products in a way that takes advantage of this (41 percent); and expecting sites to be innovative, like Google Maps and Facebook (29 percent).
3. Forty percent of consumers surveyed said a frustrating online experience would make them less likely to shop at a retailer's physical store, while 60 percent reported a negative online experience affects their opinion of a retailer's brand and 80 percent won't return to a site after having a bad experience.
Online features that ranked high among survey participants included a perpetual shopping cart (rated as an important feature by 74 percent of respondents) and a one-page checkout system (70 percent).
A total of 721 consumers took the 2007 holiday shopping online survey.
The survey was conducted in January by Zoomerang and sponsored by Allurent, a Cambridge, Mass.-based e-commerce company.
Happy Shopping for your Valentine!
Fortunoff Goes Chap. 11
Jewelry retailer Fortunoff announced today that the company has agreed to sell the business to an affiliate of NRDC Equity Partners, which owns the Lord and Taylor department store chain.
Fortunoff has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code, which allows the retailer to reorganize its finances without the threat of creditor's lawsuits.
The sale will be accomplished through a bankruptcy process that allows other interested bidders to make competing offers. Subject to the approval of the bankruptcy court and other customary conditions, the sale is expected to close in early March.
In conjunction with the bankruptcy filing, Lord and Taylor has made available a $10 million letter of credit to enable Fortunoff to continue to purchase inventory. In addition, some of the company's existing lenders have agreed to provide Fortunoff with debtor-in-possession financing that will be used to run its business during the bankruptcy process pending the sale.
BlueNile Goes Global
While Fortunoff went Chap 11 today, online retail giant Blue Nile Inc. announced a global expansion into a dozen international markets.
In addition to the United States, the United Kingdom, Canada and Ireland, Blue Nile now will ship to Australia, Belgium, France, Germany, Hong Kong, Japan, the Netherlands, New Zealand, Singapore, Spain, Switzerland and Taiwan.
The expansion comes as the Seattle-based company experiences rapid growth, even as its brick-and-mortar counterparts struggle to make sales in tough economic times.
In 2007, Blue Nile's international sales increased more than 100 percent, to about $17.2 million.
A Tale Of Two Cities.
You Want a "Prestige" Diamond Engagement Ring? Harry Winston is The "Name" You Want.
High net-worth consumers rated Harry Winston as the most prestigious jewelry brand, a recent survey conducted by the Luxury Institute found. Respondents in the 2008 Luxury Brand Status Index (LBSI) survey cited Harry Winston as having “a great reputation,” being “the ultimate for diamond design,” and being known for “quality and exclusivity.”
Buccellati and Van Cleef and Arpels tied for second place, while Graff placed third. Buccellati was also rated most unique and exclusive.
According to Milton Pedraza, CEO of the Luxury Institute, "The luxury jewelry industry is still very inwardly-focused. "This important segment of luxury can benefit from understanding how multi-millionaire consumers perceive jewelry brands on critical metrics that define what luxury truly is, and is not...True luxury leaders are unflinching in their desire to learn why consumers will, or will not, recommend their brands and then take positive action."
The survey was conducted online, using a national sample of 513 Americans with an average income of $789,000 and an average net worth of $15.1 million.
Zales Reports Revenue Loss.
On the heels of Fortunoff's Chap. 11 filing comes the announcement by Zales that they report a 7.3 percent fall in comparable store sales in the second quarter ended January 31. The U.S. fine jewelry specialty retailer said Thursday that revenues for the second quarter were $827 million compared to $892 million last year.
The company said that while it had a 5.7 percent January comparable store sales increase, approximately 3 percentage points were related to the timing of a Valentine's Day customer appreciation event.
Year-to-date total revenues decreased 5.5 percent to $1.204 billion, compared to $1.274 billion for the same period last year. Year-to-date comparable store sales decreased 5.1 percent.
In The Diamond Industry, "Bigger" Does Not Mean "Better".
The recent chapter 11 filings of previously large diamond and jewelry retailers
Fortunoff ,Derco, Fabrikant, Omega Jewelers, Friedmans Jewelers, etc. raises an interesting point.
There is a perception in many industries and markets that the bigger a retailer is, the more "established", "reputable", "secure", etc. they must be.
People operate off the misguided assumption that a large retail establishment is not going to run away with the customers money and will actually be around for a long time to service their needs.
The reality however is a far different story.
The large size of a company is not at all an indication of its financial solvency and/or profitability.
Furthermore, it does not illustrate that they will be around in 10-20 years to service their clients.
In fact, sometimes you have "big" companies who get so taken with their size and status that they begin to spend money without discretion or responsibility. Bad business decisions are made and the company is at risk of over extending itself.
In many instances when you try to be everywhere at the same time, you ultimately sacrifice your ability to do "fewer things right" and wind up throwing away profits. This leads to financial insolvency and loss of profits even when gross sales may be increasing.
To increase gross sales and show a net loss at the end of the year is usually the first indication that a company is suffering terribly and going nowhere quickly.
There is no value (or sense) in increasing gross sales while showing a loss with respect to (net) profits at the same time.
Very often "big companies" have a hard time grasping and dealing with this concept. They are slow to change and find it too cumbersome to evolve and adapt with a changing marketplace.
This is why I believe many "big" companies are hurting and why too many of them are forced to declare chapter 11 as soon as the deck of cards comes tumbling down.
Conversely, smaller companies tend to be more fiscally responsible and have a greater ability to adapt to changes in the marketplace.
History is showing just how true this is in the diamond industry.
The bigger they are, the easier it is for them to self destruct.
Gemstone Treatments Becoming more Sophisticated and Harder to Detect.
That was the theme of a morning session of the Accredited Gemologists Association (AGA) meeting in Tucson, Arizona where gemologists and appraisers are meeting this week to discuss and share information on the latest gemstone treatments and detection methods that can be used to identify stones that have undergone the latest treatments.
Paraiba Tourmaline
Beauty Personified! But Is It "Treated"?
As the gemological community races to keep up with the latest treatments, one thing seems clear: Gemstone treaters, and those who sell their gussied-up wares, are speeding ahead, nimbler than ever.
"To paraphrase Jimmy Carter, we have to declare the moral equivalent of war on these issues, and if you don't do it, nobody's going to do it," panel moderator David Federman, editor-in-chief of Colored Stone magazine, told the audience. "This is like global warming. Deny it all you want, but the glaciers are melting."
The impetus behind the new treatments is, as always, dollar signs $$$$. Ted Themelis, an expert on Burmese gem deposits, says rough ruby that would sell for $70 to $100 per kilogram could go for $1,000 per kilogram after undergoing treatments that make poorer quality goods look much more attractive.
Ruby
Lead glass-filled rubies, the heavily treated stones coming out of the gem-trading center of Chanthaburi, Thailand, are often undergoing more than one process.
Among the new treatment techniques discussed during the session are cobalt-infused sapphire and pink-diamond treatments.
Christopher Smith, vice president and chief gemologist of American Gemological Laboratories, said the cobalt-infused sapphire is a neon blue, similar to Paraiba tourmaline or Malagasy apatite.
The treatment is detectable, through the use of a Chelsea filter, through spectroscopy, which reveals bands of cobalt, and through various other methods, including the use of a microscope.
"When we looked in more detail at the color, we saw blotches and black pits in the center of color under microscope," Smith said.
Branko Deljanin, director of Canadian operations at EGL USA, says colored-diamond treatments are also a concern, with high-pressure high-temperature (HPHT), coating and fracture-filling irradiation among those used.
"Or there's some combination of all, and that's the scariest," Deljanin said.
Buy colored gemstones from a reputable dealer with grading reports from a reputable grading laboratory.
Blue Nile Sues Yehuda Diamond.
On-line Diamond Retailer Blue Nile has sued Yehuda Diamond.
The Yehuda Diamond Company sells Clarity Enhancement diamonds. Clarity Enhancement is a process that fills inclusions with special material that results in the inclusion(s) blending in with the facet structure of the stone thereby making it less visible to the eye and rendering the stone eye-clean in the face up position.
Yehuda Diamond in its advertisements compares the price and appearance of its clarity-enhanced diamonds to those natural non-enhanced stones sold by Blue Nile Inc. and maintains that consumers are getting a better deal buying their diamonds rather than non-clarity-enhanced diamonds sold by Blue Nile. Furthermore, Yehuda says that consumers have an absolute right to know how much they stand to save by shopping with them.
In its complaint, Blue Nile acknowledges that “clarity enhancement can improve a diamond’s apparent clarity by one or two grades.” But Blue Nile contends in its complaint that Yehuda Diamonds’ comparisons to its prices are “misleading.”
Not everyone in the Diamond Industry sees clarity enhancement of diamonds in a positive light.
The process does have its critics. Prestigious Diamond Internet Forum, Diamond Review points out the dangers and shortcomings of Clarity Enhancement to consumers here:
Why You Should Stay Away From Clarity Enhanced Diamonds!
We agree and in our opinion Consumers are best served by purchasing diamonds that have not been clarity enhanced and that have been graded by reputable diamond grading labs such as the Gemological Institute of America(GIA) and the American Gemological Society (AGS).
Shopping By Price Online Can Be Frustrating
One of the wonderful things about buying diamonds online is the comfort of being able to price shop and compare one vendor against another with just the click of a mouse. Many vendors offer diamonds at comparable prices. Some are a bit more expensive and some are a bit cheaper.
Shopping by price is of course a major consideration when buying diamonds online. However, it should not be the sole factor in determining where to spend your dollars. Indeed, many vendors will offer price match policies etc. in the event that you find a similar diamond offered elsewhere at a lower price.
More important (or equally important) are the considerations of a vendors published reputation on the Internet, their commitment to customer service, their industry affiliations, their return policies and customer service policies and the level of information provided.
When these variables are considered, there is often a huge disconnect between those vendors who provide real added value to their customers and those who do nothing but blindly drop-ship the diamonds they sell.
Of course, if you can find a vendor who offers the lowest prices together with the most comprehensive level of information and customer service, "you can have your cake and eat it too"!
Frustrated with your price search?
Albert Einstein used to say that "Insanity" is defined as the act of doing the same thing over and over again and expecting different results....
Blue Nile Stock Price Takes A Hit As Sales Decline.
Blue Nile reported a fourth-quarter profit that beat Wall Street's expectations, but a sharp decline in its outlook for the first quarter and full year was described by one analyst as a "real shocker."
Blue Nile, the Internet's largest diamond retailer, says 2008 is off to a disappointing start as consumers pull back on buying top-of-the-line jewelry.
Shares of Blue Nile plunged more than $10 in after-hours trading Tuesday to $43 as the Seattle company warned of "tremendous uncertainty in the luxury retail sector."
"Consumers are holding back," Blue Nile founder Mark Vadon told analysts during a conference call after the close of regular trading. "We're in a very, very transitional time right now, and the market is relatively weak."
Mark Vadon, Blue Nile Chairman
Dan Geiman, who follows Blue Nile as an analyst at McAdams Wright Ragen in Seattle, said the company's outlook surprised him.
"Their last couple of quarters have been perhaps their strongest quarters as a public company, and that was in the midst of a consumer environment that was weakening," Geiman said.
"Now, it appears that they're feeling the pinch. Maybe they're not as immune as some of us thought," Geiman said.
No doubt the Diamond and Jewelry Manufacturers and Wholesalers that are locked in by Blue Nile to exclusive contracts that limit their ability to sell their merchandise in other venues are probably reaching for the Maalox right about now.
Stay tuned.
New Tiffany Legacy Inspired Engagement Ring With Sapphire and Diamond Accents
We just finished creating our new Tiffany Legacy inspired diamond engagement ring with a 2.00 carat blue sapphire in the center and sapphire and diamond accents stones! We are now offering this ring for sale on our website.
For additional pictures, pricing and information, please visit this link.
A One In A Million Shot!
This authentic, unedited and actual photo of three birds in flight during a beautiful sunrise, is GOD's way of saying "have a nice day"!
Let me wish all of you a very nice weekend!
Should Jewelers Appraise The Diamond Engagement Rings They Sell To You?
Many Jewelers issue Appraisals on the merchandise they sell at the point of sale. How helpful and valid are these Appraisals? If you lose your diamond engagement ring, wedding band, or jewelry or it is stolen and you file a claim how well will you fare with your Insurance company? Some issues to consider:
Jewelers' conflict of interest in appraising the merchandise they have sold to you.
Assessing future replacement value vs. current transaction value.
A statement of value demonstrating items worth to whom, when, and under what circumstances.
Informative discussion now going on Here
A Cushion Cut Diamond Solitaire Engagement Ring (Pic)
This is a photo I just took of a solitaire cushion cut diamond engagement ring just completed today by us for one of our customers.
I wanted to share it with you.
Weird Engagement Ring
Came across this "unique" concept for a diamond engagement ring by Designer Tobias Wong shown on Yanko Design.
No Editorial comment necessary.
Pushy $alespeople On The Internet? Say It Ain't So! NO! NO!
One of the things we all loathe when shopping in Department Stores is the pushy salesperson that descends on us within seconds of entering the store and clings to us like a second skin, not letting us browse and breathe and check out the merchandise in a comfortable fashion.
We've all experienced this and I, for one, avoid making eye contact with a salesperson who is in the area of the merchandise I'm looking at, hoping and praying that they DON'T come over.
Radioactive, Stay Away!
One of the pleasures in shopping on the Internet is the peace of mind we enjoy and the absence of being hassled by pushy in-your-face salespeople. This, in spite of the fact that websites do employ sophisticated tracking software to monitor and analyze their traffic, patterns, shopping preferences, and the level of popularity of their website pages and content.
So I was a bit taken aback and surprised when I came across this Consumer's account of his recent Internet shopping experience.
"One major concern that nearly turned me off completely to ...... was the unsolicited phone calls and e-mails. After having previously added an item to my shopping cart, and having entered my contact information without completing the order, I actually began receiving phone calls and e-mails asking me about what ....... could do to help me complete the purchase. My major gripe is that I should be allowed to browse and add items to my cart ANONYMOUSLY and PRIVATELY without concern that I'm going to be chased down just for expressing an interest in an item. I understand the desire to make me a customer, but this is distasteful. Secondly. this was a phone number and e-mail address that I SHARED WITH MY FIANCEE-TO-BE and would have been extremely disappointed to have my surprise proposal spoiled by ....... telling her that I had recently been looking to purchase a ring. I had luckily been able to intercept them, but again, I had to ask customer service to stop these contacts."
What do you Consumers think? Was this Consumer's criticism/anger justified? Or was he fair game for the Internet vendor to contact him since he had already placed products into his Shopping Cart and Checkout Page and the Vendor was just trying to be helpful?
Give us your opinion by choosing one of the options in the Poll, below.
The Future of Buying Your Diamond Engagement Ring On-Line.
The purchase of diamond engagement rings, wedding rings, wedding bands, and jewelery on the Internet has steadily and dramatically increased over the past five years. More and more shoppers are feeling comfortable spending thousands of dollars on-line for an item that is not only expensive but also carries with it considerable emotional and psychological significance.
Our colleague, Ken Gassman over at idexonline.com in an excellent article analyzes the future of on-line diamond rings and jewelery retailing and puts forth some very interesting, thought-provoking, and provocative arguments.
A must read at this link:
Brick & Mortar Stores VS. On-line Shopping
Ebay Sellers ANGRY! at Ebay.
Ebay this week announced two policy changes that has so angered its Sellers that many have staged a boycott.
The policy changes are higher listing fees and most significantly the removal of Seller Feedback comments against Consumers that have placed negative feedback against them.
Ebay sellers believe that their inability to now counter undeserved negative Consumer feedback will put them at the mercy of spiteful consumers who post inaccurate and hurtful comments that will negatively impact their business and reduce their sales. Ebay, on the other hand, believes that Vendor feedback which is negative on an Ebay Customer will chase away consumers and reduce their business.
More here: Angry Ebay Sellers
The Rising Price of Platinum. WOW!
The price of Platinum, the metal of choice by Consumers for their engagement rings, wedding rings, and wedding bands has risen meteorically over the past year and on a daily basis especially in the last few weeks. Look at the graph below:
From mid-December 2007 until today the price of Platinum has risen by $800.00 an ounce!
The weak dollar, rising Oil prices, and power and electricity shortages in South Africa which mines the bulk of the worlds Platinum have all contributed to the this price increase.
Manufacturers of Platinum Jewelry have no option but to raise prices and pass on these price increases to their retail jewelers. As a consequence your Gold and Platinum Jewelry is becoming dramatically more expensive and costly.
Precious Metals Analysts expect these price increases to continue in the forseable future.
