CARI WALD MAN
Special to the Jewish News
T
hanks to the
booming econ-
omy of the last
few years, both
jewelry makers and sellers
have been enjoying
healthy profits.
The unparalleled popu-
larity of platinum jewelry
and new designs has kept
the industry in a jewelry
frenzy The question at
hand: Will the gold rush
continue?
Ironically, what stimu-
lated demand has also
become a challenge.
"Throughout the last
decade, designers of jewel-
ry and a number of high-
end products developed
strong brand identity,"
says David Silver. "This
propelled sales to higher
levels as consumer aware-
ness increased.
"That same branding,
which stimulated sales, has
now made it possible for
consumers to comparison
shop using brand name
and model information."
Silver is a retail market-
ing analyst and president
of Silver Communications
in West Bloomfield.
That is why people are
so attracted to jewelry in good times.
Yet gems and precious metals are
undoubtedly one of the first things
that people hold off on when the
economy slows. "It is one of the first
places people stop spending," says
Stan Krandall of Sidney Krandall &
Sons Jewelers in Troy.
"Consumer confidence numbers are
driven by stock numbers, and when
people's stock portfolios are fat, people
feel wealthy. A turn in the economy
gives consumers a chance ro pause and
reflect on their purchases. People get a
little scared, and in turn we feel it,"
Krandall says.
Even with uncertain economic con-
ditions, merchants must project sales
plans and have merchandise on hand.
"In the retail jewelry business, it's not
as easy as buy and sell," Krandall says.
"There is a nine-month lead time
from purchases to arrival on the sales
floor. To develop a buying budget, we
must track invoice count, the dollar
amount of each sale and the type of
each sale."
3/30
2001
64
tech start-ups that affect Michigan's
Evaluating those factors on a
economy, cycles in retail are inevitable.
month-to-month basis allows Krandall
Several retailers try to create excite-
to delegate appropriate dollars to basic
ment to move their busi-
and fashion-forward jewelry.
nesses ahead.
To adjust to market needs, he
Jason Gr ies exam-
Recently returning from
says, "Numbers can be
ines a ge m in his
the International Jewelry
adjusted and shipments from
Show in New York, Steve
manufacturers can be delayed Farming on Hills
store.
Tapper,
of Tapper's
if needed.
Diamonds
& Fine Jewelry in
Despite the fact that
West
Bloomfield,
says that
January and February are
negative talk about the overall econo-
customarily slow months in retail,
my kept jewelry business news flat at
"sales were consistent with last year."
the show.
Krandall opened a second Sidney
"For a period of time, I believe there
Krandall & Sons Boutique at the end
will be some downturn in the econo-
of July at Canterbury Village in Lake
my," says Tapper, "so we need to be
Orion. Business there also hit sales
sensitive
to what is happening. We
projections.
have
been
through prior recessions,
Krandall initially saw the economy
most
notably
in the early 1990s.
starting to drag last summer, but he
Americans, though, have the survivor
feels that we are at bottom of the
mentality and will fight to be creative.
trough. "It seems lot of it is behind us,
We can't lie down and die."
that the economy is heading back up."
Not immune to economic shifts,
Tapper and his brother Howard adapt
merchandising plans to the economic
Creating A Niche
cycles.
"Having a distinctive edge,
Regardless of stock markets, the health
making jewelry exciting at every price
of the automotive industry and high-
point and being able to give the con-
sumer good value for their money will
be our defense against a weakening
economy," says Steve Tapper.
Pricing Shift
Jason Greis, of Greis Jewelers in
Farmington Hills, says, "It's common
knowledge that if you don't have the
goods, sales will be low. Economists
and various commentators say to
`buckle your seat belts, — says Greis.
But we are gearing up to satisfy cus-
tomer demand. Our customers seem
to still buy, regardless of the econo-
my"
One shift that has been noted
though, says Greis, is "the same cus-
tomer that may have spent $10,000 in
one purchase last year may now be
spending $3,000-$5,000 instead."
To have enough leverage to serve his
customers, Greis will bring in lower-
priced, yet not lower-quality, merchan-
dise. With 40 percent of his business
happening in the fourth quarter
(October, November and December),