Posts Tagged ‘Sterling silver’

Cue The Trumpets: Sterling Silver Jewelry is Here!

Friday, November 9th, 2012
 

Cue the Trumpets. Sterling silver jewelry is hereby recognized as a viable and dynamic jewelry category by the “Main-Street” jewelry buyer. Just ask Mike Foglesong CEO of SterlingSilverJewelry.com.

“Wait a minute”, says Foglesong, “There’s an illogic here. Numerous jewelry retail channels have already recognized silver jewelry for what it is; beautiful, creative and especially classy.“

Take Tiffany & Co., for example. Over the years, Tiffany has become a retail channel by itself. Their skilled management team pioneered silver styling, (i.e. remember the 3-pronged Tiffany setting), merchandising, branding, (i.e. Elsa Peretti, Paloma Picasso) and pricing. Silver jewelry has become a strong – if not major — part of their product mix. They’ve been doing their silver jewelry homework for decades.

 
Take major department stores, for example. Silver jewelry has become a department store staple. Just check Macy’s, (Judith Jack’s Victorian silver jewelry ‘look’), or check other department stores for popular designer brands. Silver jewelry has become an important showcase profit center.

Take the big TV shopping networks, OVC and HSN, for example. They both have a wonderful eye for combining semi-precious stones, (Malaysian Jade, Lapis Lazuli, Charoite, Blue Lace Agate, the list is endless), with silver. Some stones are even hand carved.

Take the direct sales, or shop-at-home, retail channel, for example. Several companies, selling silver jewelry in the consumer’s living room, have combined sales of an estimated $154 million, (The sales leader is Silpada Designs but new players, like Inspiranza Design and Morgan Dane Designs are not far behind.)

“Dare I say it?” Foglesong goes on. “I’ve developed a strong bias to silver jewelry”.

Cue the Trumpets. Sterling silver jewelry is hereby recognized as a viable and dynamic jewelry category

To be fair, he also owned a large karat gold jewelry manufacturer before it ran into the rather unpleasant Reagan recession – as it were. There were no stimulus packages those days.

He thought it would be interesting to look under the hood and compare karat gold jewelry to silver jewelry. Some of the contrasts may be a surprise. “Which brings us to another point”, says Foglesong, “these are my opinions and experiences. I give you the right to disagree with any of them.”

 Karat Gold Jewelry: With the price of gold now around $1,700 an oz. the gold component has a major affect on price. Obviously, the target customer is, um, older ladies with a higher disposable income.

Sterling Silver Jewelry: It’s no surprises that silver jewelry appeals, in general terms, to the younger consumer. Just walk into a high school or attend a wedding party, (chain link bracelet, disk dangle, silver neck chain anyone?), and it’s obvious silver jewelry is a staple.

Briefly, and in general terms, the customer’s purchase of a gold item can be a hand wringing, time consuming and emotion filled experience. (Uncle Harry where are you?) Whether its price, gold or concept related, the consumer’s decision-making process is profound.

Also in general terms, the consumer’s purchase of a silver design is, usually, on impulse. Gone are the days of wondering if a silver bracelet will turn a wrist green or if an earring will make you sick. Silver manufacturers have solved these problems through improved alloys and product plating.

“One last thought”, says Foglesong, “it should only be a matter of time, before watch companies offer silver watches.”

Victoria Harbour: Sourcing Silver Jewelry in Hong Kong: Part 2

Monday, December 20th, 2010

It’s tough to describe the agony of the 21-hour, non-stop flight from NYC to Hong Kong. If you’re flying Business Class you’ll have good – but not great — leg room. The flight attendants frequently offer meals, drinks, hot towels, newspapers, you get the picture.

You try not to get bored, (difficult), try not to get into conversations with strangers, (easier), try to do some office work, (easy), try to keep hydrated, (drink lots of water) and get some exercise, (walk around a lot).

So, after the movies, (three), meals, (four), naps, (a bunch), snacks, (two), reading and day-dreaming for hours, you’re finally landing in Hong Kong.

A bit of a Hong Kong history. I was a US soldier, (Captain Jan Brassem they used to call me), on R&R from the Vietnam war, when I first visited the city. In those days the airport, Kai Tak, was one of the scariest and most dangerous in the world.

To land a Boeing 747 the pilot had to fly so low, you could (almost) read the street signs. One wag told me he could read  the headlines of newspapers sold on street corners. That might be an exaggeration, but take a look at the video, (above), and you’ll see, in those days, landing on Kai Tak was a white-knuckle, terrifying event.

Now, thank goodness, there’s a brand new  Hong Kong’s International Airport, which is one of the most modern and efficient in the world. Here’s a good example.

After you’ve arrived and glide through passport control and customs area, (there’s no, “Please Open Suitcase”  here), you enter the huge terminal lobby. This is a good time to get local currency – the Hong Kong dollar – and make a hotel reservation. (Shame on you if you haven’t  made reservations from home.) More on Hong Kong hotel scene later.

Now, it’s decision time. Since the airport is about 50 miles from the city, you have the option of  taking an expensive taxi or the inexpensive speed, (repeat speed), train. Take the inexpensive train, (duh!).

The train is about one hundred feet from the lobby. After buying a ticket, you walk to — and into – the clean and sleek train – like walking into a jet plane. Your luggage is carried on board by female porters, who do not accept tips. (Since I’m from Noo Yawk, I’m flabbergasted).

The train is fast – about 100 MPH – or so it seems. It travels along spectacular Victoria Harbour – the signature sight of Hong Kong. It also passes the frenetic Hong Kong docks, giving you an idea of the city’s economic power. No evidence of a recession here.

Through the train’s big picture windows, you get a few clear ‘thumbnail’ views of Hong Kong. This sourcing/buying trip will be a great opportunity to combine business, (sourcing) with the beauty and activity of a world-class city.

Please stay tuned…
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Did I mention that we love to write. Just email us (Jan@BrassemGlobalConsulting.com) and maybe we can write for you too.

Also, if you looking to place an ad here, we’ll do that too….we’re cheap. Just email us.

Finally, if you have specific questions about the technology we use, just email us and we’ll fill you in.

Let’s be honest, any advice you can give us, is great. We have received 3,500 comments and an estimated 10,000 reads. (3,500 are better than one).

We have also installed an anti-spam program. In addition to the 3,500 comments we have also deleted – manually – an additional 1,200 spams.

A Little Housekeeping….

Tuesday, November 23rd, 2010

I really appreciated the 9,500 comments you have written on this blog – that’s not counting the thousands of spam comments I  deleted. I’m not sure how many have read the blog but I assume it’s more than 7,500 – I hope.

As most of you know by now, I  am Jan Brassem, a silver jewelry-sourcing guy, who likes to write. But, now I’m not so sure. I might just be a writer who happens to be in the silver jewelry business.

I started writing professionally about 2 and a half years ago and now write for seven global trade journals, (you guessed it — on jewelry, duh.)

 Please keep the suggestions coming. We all benefit and the posts will more fun to read.

Of all the writing I do, writing for this blog is the most fun. I also enjoy reading your comments, even the negative ones. Many of your suggestions are great – especially the ones requesting more pix’s and videos. Will do!

A few of you have suggested that we get into more sourcing detail when dealing/negotiating with factories. We’ll start doing that with the promise you don’t fall asleep while reading that process. It can sometimes be booooring!

Anyway, we thought this would be a good time to respond to your comments and so we’re all on the same page..

• Please keep the suggestions coming — I read ‘em all. We all benefit and the posts will more fun to read.

• Please don’t forget our goal: To write about the life of a global jewelry – or any product — buyer. The job is not always peaches and cream. There are risks, sometimes even life and death risks. (Mexico and Bali are good examples.)

• Several of you have commented on our RSS Feed which doesn’t always work. That’s simply because – being tech-challenged – every time I edit a post and open WordPress, the RSS gets goosed and in turn, messes your Feed. Sorry!

A little late, but I’m simplifying the editing system.

• Many of you asked if I like the blog system we use. WordPress is great and especially simple to navigate.

• Several have asked if it’s okay to use part – or all – of one of our a posts. The answer is a resounding YES. Please just mention the site (BrassemGlobalConsulting.com) somewhere.

• Others have suggested we place ads on the site. Great idea…..but how do we do that?

• Finally, we are not sure what you like better: The serial posts, (i.e. Bali and Mexico) or the single-topic posts, (i.e. Hong Kong, China, silver). Please drop a comment and we’ll adjust.

Okay, the housekeeping is done. Now, on to Thailand. See you in Bangkok next week.

Silver in Mexico:Our Guy Noir Bodyguard: (Part IV)

Tuesday, November 9th, 2010

Susan, the professional jewelry buyer, glanced at me over her shoulder. By her expression, she was saying – pleading really — why don’t you negotiate with her. Susan seemed intimidated.

Whether it was Sangria’s good looks, the unusual merchandise, (that’s one of her earrings at right), her smarts or whatever, Susan wanted me do the heavy negotiating. Let’s be honest, Susan won’t be invited to join Mensa any time soon, but she has been buying fine jewelry for years.

But to be fair, I don’t think she’s ever found herself in such a complicated buying – sourcing – predicament as this. Here’s our dilemma.

A)  The seller – Sangria – is a talented jewelry designer without a manufacturing facility.

B)  Her styles – per Susan – would be a big hit in the US as long as the designs are “priced right” – (as they say in the trade).

Holding her powder blue cigarette between her thumb and middle finger, she said she appreciates the wonderful order. “I happy you like my styling,” she continued.

C)  One of the major reasons these beautiful styles haven’t reached our competitors stores — and web sites — is most US retailers can’t — or are afraid to — order small quantities from designers like Sangria. To be sure, they don’t want be out-of-stock of any style, especially during an important buying season.

D)  Sangria would simply give Susan’s US$50,000 order to a motley bunch of local factories.

E)  Having the styles manufactured by 20 local factories can – and usually does – turn into a fiasco. It leads to nothing but unanswered questions. Will Sangria handle quality control? Who checks on delivery schedules? You get the picture.

F)  Will Sangria’s company, handle all these administrative details? Her firm, don’t forget, has just seven employees.

G. Oh, did I mention, the labor cost in Mexico is among the lowest in the world.

I stood up to stretch my legs. I glanced at our Guy Noir bodyguard, the Tony Soprano look alike. He had taken off his aviator sunglasses and lasciviously eyeing Sangria’s assistant. So much for tight security.

To save Susan any embarrassment, I told Sangria I generally handle the shipping and financial details for my company. (Our logo, a cheap plug for my company, is below, on the left.) She turned her attention to me. For some reason, I felt like an Acapulco Cliff Diver ready to take a plunge. I sat down.

Holding her powder blue cigarette between her thumb and middle finger, she said she appreciates the wonderful order. “I happy you like styling,” she continued.

I told her that I’m not sure we will place the order. We want to work with one factory, not twenty.

Sangria chimed in. “My firm will take care of all the quality and administrative details.” She went on, “We normally do this for several of my European customers.” (I didn’t see that as much of a positive endoresement.) “It seems – in some ways – business in  US differ from Europe.”

No surprises there.

I had a thought. I suggested to Sangria that we break the order into a few smaller units, say five orders, each 20% of the total. Once we have tested Sangria’s quality and administrative systems on the first one, we will release the rest in sequence  – one at a time. “Good things happen in phases”, I told her.

“Once we have established a confidence level,” I said, “We will visit you in Mexico often. By that time, we should have developed a strong relationship.” A little incentive for her could benefit us all, I thought.

Will this system work? Your guess is as good as mine. But please stand by.

After Susan finished working on the five orders, we gave Sangria our red QC Manual and what we expect for delivery, communications,  yada, yada.

We were ready to leave. By this time, Tony Soprano was in deep conversation with the homely assistant, (see pix at right.) Seeing that we were ready to leave, he apologized for not being more attentive.

“Fuhgeddaboudit,” I told him. (Yes, I’m from Noo Yawk).

After a friendly good-bye, (a kiss on each cheek), we were on our way to the next appointment. Mexico was growing on us, indeed.

Silver Jewelry in Mexico: Don’t touch Anything: (Part 3)

Saturday, October 30th, 2010

Susan – the buyer — and me, Jan Brassem, – the owner — were sitting in Sangria’s (the shop owner), spacious and sunny combination office, showroom and living room. (Sangria and her smile is on the left.) The room was decorated with a decidedly female flair – frilly curtains, pink walls and pretty pictures of horses and hearts. The room smelled, er, ‘flowery’.

Everything on the tables and breakfront was porcelain and apparantly very delicate so I didn’t dare touch anything. I was big and somewhat clumsy. There was no evidence of computers anywhere.

Susan and I sat across from Sangria at her over-sized desk. The Tony Soprano look-alike, (our bodyguard), still wearing dark sunglasses, was reading a magazine, guarding her door. I was not sure what he was guarding. (In case you don’t remember, the original  Tony Soprano’s picture is on the right.) An assistant stood, almost at attention, next to Sangria waiting for instructions. Our driver, Brett, was across the street, watching the girls and guarding his big, black Mercedes.

Since the styling was beautiful, unique and imminently saleable, Susan would have to use her professionalism and figure out a way to solve the difficult problem(s).

Without a word, Sangria nodded to the assistant who quickly brought in  jewelry in pink and powder-blue trays. Susan gasped. She had never seen so many beautiful styles merchandised so carefully. In fact, she told me later, she had never seen such beautiful trays.

Susan started working. Within an hour, she had pre-selected 90 styles, which she quickly whittled down to 45. She asked Sangria if it was okay to change the stone configuration of a few styles. Sangria told her that since production was an issue, changing stones – from ruby to emerald, for example – would slow down the production process. Susan would use the stones shown in the samples.

She reached into her briefcase and, writing feverishly, prepared a Purchase Order. (A “PO” is music to a  salesman’s ears). Susan would order 50 pieces of some styles and 100 of a few others.

Sangria smiled.

Susan asked her how quick she could ‘deliver’. Sangria replied that since she only has five jewelers working in her shop – most of those used to make her designs — she would have to ‘farm-out-the-order’. She could have the order ready for shipment in the normal six weeks, she said.

When a professional buyer – Susan – hears the phrase, ‘farm-out-the-order’, mental bells, whistles and sirens sound a warning. As it turns out, Sangria’s company was not a jewelry manufacturer at all, but rather a design shop – although a good one.

Sangria would send out Susan’s order to ten, or even 20, small factories in and around Taxco’s colorful streets, (see the picture below), – the perfect definition of a ‘cottage industry’. As a matter of fact, we learned later, many of Mexico’s famous designers operate using this cottage industry ‘model.’

Under this purchasing system, quality becomes a major issue. In addition, production communication, payment terms, pricing, responsibility and a host of related issues can quickly lead to disaster.

Since the styling was beautiful, unique and imminently saleable, Susan would have to use her professionalism and negotiate a way to solve the difficult problem(s).

To be continued…

Silver Jewelry at 110 MPH: (Part 2)

Monday, October 18th, 2010

The next day, the four of us, Susan, (my silver jewelry buyer), our driver, (the Brett Favre look-alike), our body guard, (who reminded me of, yikes! Tony Soprano), and me, (the silver jewelry company owner), were having breakfast at our over-priced hotel in Mexico City. As the owner, everything seems overpriced – part of my job description.

We were on our first buying, (sourcing), mission to Taxco, the Mexican city known for silver mining and an abundance of extremely talented jewelry artisans.

The trip to Taxco would take about two hours so we ate quickly. Susan and I climbed into the rear seat of Brett’s big, black, lumbering Mercedes. Once out of Mexico City’s congestion, we were on the open road.

Susan and I started looking at truly beautiful, delicate and unusual silver designs displayed in big class cases. For Susan to be impressed — she was, after all, a world-class silver jewelry buyer — was notable.

The 2-lane highway – the Mexican version of a super highway, I guess — was straight and clear. Brett opened up the Mercedes and we were soon doing 110 MPH.

When I die, I was telling myself, I want to die like my grandfather — peacefully in his sleep. I do not want to die screaming — in a highway accident, without seat belts — in the middle of Mexico.

I took a breath when Brett slowed down — he almost stopped — to pay a toll. I opened my eyes to see two or three uniformed guards with Thompson sub-machine guns standing in a shadow near the booths. Very scary. I tapped Tony on his shoulder and pointed. He had seen them too. Keep driving fast, he told Brett.

I was sitting behind Brett. I had a partial view of the speedometer and the on-coming left lane. After an hour or so I had composed myself. I even spotted a few classical Mexican burros on the side of the road.

But, things got worse. Bret was now tailgating, (by 4 feet or so), behind a big green, lumbering truck. He turned to me and asked, “Do you see any on-coming traffic – is it safe for me to pass?” I gurgled something to the effect my glasses were dirty.

We finally reached Taxco.

By any measurement, Taxco is a picturesque town. Light colored houses and buildings of all descriptions surrounded a small mountain – a hill really – that is reportedly the main silver mine. The mine has been in operation for centuries so one wonders if sooner – or later – the hill will collapse. “Not a problem,” reported Brett.

Brett parked and stayed with the Mercedes.  Tony accompanied us to our first appointment our Hong Kong agent had made for us. We walked into a bright, sunny showroom – Tony stood near the door. Susan and I started looking at truly beautiful, delicate and unusual silver designs displayed in big class cases.

For Susan to be impressed — she was after all a world-class silver jewelry buyer — was notable. Maybe the trip to Mexico was worth it.

A woman came out of a curtained room and, without speaking a word of English, offered all three of us a cup of tea.

After about fifteen minutes, just enough time for us to see the entire line, the designer came out. As we learned later, she was the company owner, salesperson and designer. She reminded me of my daughter Julie.

An attractive, blond and delicate woman of about 45, she led us to her spacious office. Tony followed and sat on a chair near the office door.

Susan enthusiastically started to work. It would turn out to be a difficult process for her.

To be continued…….

Beautiful Silver Jewelry in Bali : Meet Barney Fife, (Part 4)

Monday, September 27th, 2010

Within a few minutes, the Factory Manager, Mr. Sanadrij Dong, appeared.  Wearing the male version of the colorful Bali sarong, Dong (first names are last and last names are first in Asian culture), bowed instead of shaking hands. Another element of Asian tradition. (Dong is pictured on the left.)

Dong sat down next to Barney Fife’s look-alike (the factory owner), and faced Susan and me, Jan Brassem,  from across the table. He smiled. He was a short man, (5’2” I would guess), with a well-traveled wrinkled face. With 580 jewelry people working for him, he must have been a skilled and experienced jewelry manager.

Turning to Barney, he said something in Bali. Evidentially, Mr. Sanadrij doesn’t speak English. Barney would have to translate.

Working with translators, has a few important features. First, since the conversation goes through a third party, everything, obviously, takes twice as long, allowing you more time to think. Second, since longer sentences have ‘fuzzier’ meaning, they quickly become shorter. (It’s amazing how precise people can be when they have to be.)

Finally, it is important not to interrupt when sentences are being translated (That was hard for me, since “interrupting” is one of my irritating habits.)

After both Barney and Dong signed our formal Nondisclosure Agreement, I handed the blue lapis sterling silver iDesign — a watch – to Dong. The watch was one of our simplest. (It’s pictured on the right, below) He turned to Barney with the surprised look that Susan and I had seen before. I asked Dong, via Barney, if his people could design a series of those – but with the same technology.

“The person who came up with this idea is either crazy or a genius,” Dong said.

Dong was going to look under the hood — so to speak. He held the lapis  iDesign watch in his gnarled fingers and studied it. Deep in thought, I waited while he studied. Wait! Wait, I told myself, Dude, let him think.

Dong asked a few technical questions, (What’s this and why’s that?), while absorbing and processing the answers. Every time he understood something, he smiled. “…very clever.”

“The person who came up with this idea is either crazy or a genius,” Dong said. “I’m not crazy,” I said in a huff. Susan said she wasn’t sure. I wasn’t smiling.

“Yes, we can design a series of these and simplify the internal movement a little,” Dong said. “It’ll be fun and challenging for me and my jewelers. …something different after all these years.”

Barney asked if we would supply some watch movements and the “Patent-Applied-For” tech-components. Susan said she’ll ask the factory to FEDEX enough pieces for the six-each samples, plus a few extras.

Susan reached into her briefcase and handed Barney a copy of our bright-red formal Quality Control “Movement Tolerances and Delivery Standards Manual.” For the second time today, Barney was surprised. “There is no point,” Susan told him, “In making great designs without perfect quality. Without excellent quality, everyone looses.”

To Be Continued…….

It was suggested that some of our hundreds of readers might agree, disagree or even augment this — or our other — posts. She was so right. We would love to hear, (er, read), your constructive comments.

Also, please be sure to read all our posts. Just click on one — or all — of the categories on the right side of the page. You may find the post on China, Hong Kong, silver jewelry, etc. interesting as well.

Bali: Cue the Trumpets. Introducing Our Silver Styles. (Part 3)

Friday, September 17th, 2010

After two hours of analyzing, fine-tuning and buying over 80 samples, Susan was mentally exhausted. In her best New York accent, she asked one of the pretty assistants for a cup of tea.

She turned to me and gave me an approving nod. So, in her professional opinion, this factory had good styling and quality. Since Susan didn’t want any second-guessing on her final selection – not a word from the ‘peanut gallery’, (Another harrumph) – I was getting bored.

It was finally my turn. The boss, Jan Brassem, gets his turn.

The factory owner – kind of a grizzled Barney Fife look alike with cigarette stained fingers – turned his attention to me. Now came the tricky part.

A few years ago, we had developed an extremely popular silver jewelry brand. We were wondering, I asked Barney, if his factory could design and produce a few, (two or three), original designs for us. If successful, we could potentially sell thousands. They would have to be exclusive to us and made from scratch.

“Of course. We would love to,” said Barney.

Cue the trumpets. Our brand, known as Eclipse iDesigns, contains a unique, small, micro-mechanical component.  The brand’s name shortened to iDesigns, allows the wearer to change the silver style’s look, color even character – with only the slightest touch.

Each design contains a self-contained ‘movement’ – much like a simple watch movement. Many of the movements have patents pending. “Simply put,” I told Barney, “iDesigns combines two current and big-time consumer appeals, beautiful silver jewelry with simple technology. … never been done before.”

Barney gave me that ‘deer-in-the-headlights’  look. Susan smiled — she had seen that before.

The brand, known as iDesigns, allows the wearer to change the silver style’s look, color even character – with only the slightest touch.

To make it even more confusing, Susan chimed in with some more details. “The wearer can’t see the movement, the cost of the style doesn’t change and you don’t need a crowbar to make it change.”

“It was developed with ‘outside-the-box’ thinking,” she continued.

By this time, Barney was thoroughly dumbfounded, even mystified. I reached into my briefcase and pulled out three popular iDesigns. The first, a silver lapis bracelet that transforms into a watch. The second, a silver filigree pendant that converted from onyx to turquoise. The third was an earrings that changed from puffed heart to blue topaz.

Oh, did I mention, I told Barney that the iDesign ‘technology’ uses bearings, hinges, computer codes and algorithms as well as other tech components under extremely close tolerances. Most factory managers find iDesigns challenging and enervating — especially after working in a  tedious jewelry factory for years, generations.  Just ask your factory manager,” I said. 

Barney, amazed, took a deep breath, and asked one of the assistants to get his factory manager. She ran to the phone.

To be continued…

China: For the Silver Jeweler it’s Time to Pack Your Bags

Tuesday, August 17th, 2010

Today there are over 250 million jewelry consumers in China, (there will be 583 million by 2025), including the voracious Chinese version of Gen Y. In 2014, China will be poised to overtake the US as the world’s largest manufacturer. China’s currency. (the yuan), has been rising versus the dollar for over a year.

There’s more. Goldman Sachs predicts that by 2050, China will most likely have the largest economy in the world, followed by the US and Japan. Even more remarkable, by 2050 China, and its manufacturing partner Japan, will be the world’s dominant supplier of manufactured goods and services.

China offers an important long-term growth opportunity with implication on your long-term future.

Here are some examples of the Chinese appetite for silver jewelry: The dream-china-us_86204111Chinese economy will grow by 10.1%, compared to an estimated 3% in the US. The Chinese consumer will have plenty of disposable income thanks to the Chinese government’s economic policies.

Jewelry Industry leaders seem to agree and are scrambling to get a foothold. The International Colored Gemstone Association, (ICA), is developing colored stone promotions in China. Not to be undone, the Indian diamond manufacturing association is opening offices in China.

Even non-jewelry companies are going great guns. GM, says Jan Brassem, struggling in the US, had a 2007 sales increase of 35%. China is one of McDonald’s fastest growing markets. Wall Mart is scheduled to open 100 stores in 2010.

It doesn’t take a crystal ball to see the future market opportunity for the silver jeweler, or for any luxury product for that matter. China offers remarkable growth, not unlike the US economy did in the late 50’s and 60’s.

Warning: Silver jewelers that don’t take a vigorous approach to China will face a threat to their very long-term existence. But, how can the uninitiated independent jeweler navigate the bumpy Chinese landscape? What quick and reasonably efficient marketing/sales defensive strategies can the silver jeweler develop? There are many and here are just a few.

“Warning: Silver jewelers that don’t take a vigorous approach to China could face a threat to their…. existance.”

• Web Site. As a first step — a start — one of the easiest and least expensive is to design a web site that appeals to both US, and Chinese, consumers. Have the site translatable to English and both the Mandarin and Cantonese languages. (These ‘Translation’ programs are readily available.) Don’t forget to use a credit card that accepts the yuan.

• Joint Venture. Through any number of Chinese trade associations, (HKTDC, China Trade Center, many others) contact a trade representative (via local call or email) and ask her to put you in contact with a Chinese-based retailer for possible alliance or joint venture. Be sure to do your homework and carefully outline the type, size, region, language and product mix of the potential partner.

• Jewelry Industry Buying Group. Like many diamond and colored stone associations, open a Jewelry Industry Buying Group Office in China or Hong Kong may lead to both sourcing and marketing opportunities, not to mention market intelligence. One US-based Buying Organization has already started the process.

• Attend Chinese Jewelry Trade Shows. Several Chinese jewelry trade associations hold at least seven shows in major Chinese cities annually, (My favorite is the Hong Kong jewelry exhibition). Attending one of these shows may lead to contacts and alliances.

Finally, doing business in China is no longer an exercise in clashing cultures. In reality, working in China is more like doing business in the US than in Japan. Here are a few pointers – a primer of sorts — of doing business in China.

• Chinese politics and politicians are less corrupt than the old days. Technocrats who are smart and well trained now run the government.

• Chinese consumers love foreign brands (including silver jewelry brands), but when it comes to digital technology they still prefer the local variety that caters to local tastes. This was an expensive lesson for Google.cn

• China is diverse, decentralized and fractured. Local retail development means local opportunity – not national. There are few large retail companies so think local joint ventures.

• Lawyers and accountants are required. Since the 1980’s a cottage industry has developed of ‘selling’ relationships. This is an outdated concept no longer needed.

Now that you have embraced the internet, accepted modern marketing and is comfortable with merchandising concepts, it’s time to look east and adjust to an eastern culture.

China offers an important long-term growth opportunity with implication on your long-term future. Developing business relationships in China could be an interesting and enjoyable personal experience. Pack your bags.

Teen Girls love Silver Jewelry almost as much as their cell phones.

Wednesday, August 11th, 2010

In 2009, nearly half of all teen internet users bought goods such as apparel, jewelry, books and music online, according to the Pew Internet & American Life Project. And they buy lots of it….into the billions of dollars.

This represents a 17-percentage-point increase in penetration over 2000. An even higher percentage would have made such purchases had they more spending money and access to a credit card.

teenagers_jumping“Several payment alternatives like debit cards and student accounts not only enable teens to buy on the web but also let parents set spending limits and monitor payment activity,” said Jeffrey Grau, eMarketer senior analyst and author of the new report “Marketing Online to Teens: Girls Shop with a Social Twist.” “Yet rather than offer these options, many retailers seem content to drive online teenagers to their physical stores.”

When it comes to what teens buy online and offline, the largest spending category by far is fashion—consisting of clothing (taking 22% of total teen spending), accessories/jewelry (11%) and footwear (9%). Fashion represented 43% of North American respondents’ spending plans in spring 2010, Piper Jaffray reported in its 19th semiannual survey of teens.

Fashion translates into social shopping for many teens—especially girls—who frequently seek approval from close friends or siblings about considered purchases.

Retailers that use innovative tools to bring that experience online, suggests Jan Brassem, will do best at attracting teen customers.

 
“New online tools are emerging that mimic the way teens like to shop in eclipse12371stores,” said Grau. “Some enable teens to shop online and instantly get feedback from peers about a considered purchase. Other help teens mix and match fashion outfits. Online retailers that are seriously interested in building their teen customer base should put these tools high on their list of web development priorities.”