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.
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.
The Wilkerson Way
See how one jeweler's inventory sale turned unsold merchandise into cold, hard cash.