CJ JCK Issue 2016

The independent voice for the industry since 1879

JCK ISSUE 2016

Canadian Jeweller Magazine

THIS IS A PREVIEW VERSION. FOR THE FULL VERSION DOWNLOAD OUR APP ON ITUNES AND GOOGLE PLAY

THE JCK SPECIAL

Take a sneak peak at this year’s offerings

BROUGHT TO YOU

BY TIME CENTRAL

THE RISE OF CYBERCRIME

How to secure your business from online attacks

The World of Luxury

Jeweller Haigo Derian shares the secret to his success CMCA AUDITED

4 2 7 0 9 0 1 3 | 1 2 3 5 B A Y S T R E E T W E S T S U I T E 7 0 0 T O R O N T O O N T A R I O M 5 R 3 K 4 / $ 2 5

ROUGH CUTS:

WATCH YOUR STYLE

Be bold with Luminox

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The

World THOMAS SABO, founded in 1984 by Thomas Sabo, is one of the internationally leading providers in the jewellery, watches and beauty segment.

best – the new LOVE CUFFS are customizable, unisex pieces that create an exquisite and simultaneously sleek statement. We offer a holistic concept – ID bracelets in a wide range of designs that include a complimentary personalized engraving. Additionally we also offer our partners the engraving machine or its integration into a mobile engraving station with excellent terms and conditions.

For wholesale customers, our leasing concept that was launched last season facilitates the service-oriented and financially-attractive option of creating free-of-charge and immediate engravings for consumers. We have seen this easy to use concept drive footfall and increase sales revenue across the country in 2015.

Glam & Soul – feminine designs add a hint of elegance and glamour at any time of the day or night.

HOMAS SABO is regarded as an innovative jewellery, watches and beauty company. Established by Thomas Sabo in 1984, it is one of the leading premium lifestyle companies with a globally present multi-channel strategy. Delighting its customers with unique-looking jewellery and watch designs, the THOMAS SABO jewellery range is comprised of the Sterling Silver Collection, including the ladies’ and men’s lines Glam & Soul and Rebel at heart.

The unisex Love Bridge and Karma Beads collections, the playful Charm Club creations and expressive watches complete the offering.

With around 2,740 trade partners worldwide, THOMAS SABO is one of the major players in the jewellery and watches sector.

Since the establishment of the company, specialist retailers have been at the heart of the growth and the development of the brand and have assumed a central role within the context of the international distribution and expansion strategy. THOMAS SABO supports

this with high-level investment providing customised and targeted assistance for its trade partners. This includes new, specific display and presentation solutions in the brand’s corporate design, offering optimum visibility and sales support at the point-ofsale. These are complimented and enhanced by targeted marketing measures: print and TV campaigns during the most important sales periods such as Christmas and Valentine’s Day, as well as dedicated ‘below-the-line activities’ that maximize brand awareness for the consumer.

Ralf Barthelmeß, Senior Vice President Sales, Member of the Executive Board: ‘ABOUT LOVE’ – our motto for the new 2016 Spring/Summer collections focuses on love in all its forms. We are looking forward to further designs and a wider colour palette for the THOMAS SABO LOVE BRIDGE line, first launched in June 2015. The range includes diverse bracelet designs with a primary focus on personalisation. Understatement at its

Charm Club – enchants with more than 500 charming and filigree designs.

Rebel at heart – the range for men is expressive and diverse.

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Make memories last – with your complimentary engraving.

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Departments

Contents

34

74

16 PUBLISHER’S LET TER

72

18 CONTRIBUTORS 20 WHAT'S ON 22 PRODUCT SHOWCASE

66 MARKETPL ACE

34 ON THE COVER: L'ORO JEWELLERY L'ORO Jewellery entrepreneur steps up to embrace change

72 ST YLE COUNCIL How to keep eveningwear chic, elegant and ultra-trendy

by Phill Feltham & Corrina Mosca

74 L AST WORD More than skin-deep

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CANADIANJEWELLER.COM

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Diamonds and Gemstones STULLER IS YOUR ONE-STOP-SOURCE Your business depends on having a trusted diamond and gemstone source. And with the largest inventory in the industry, Stuller can meet your needs for quality, consistency, and competitive pricing every time.

Browse our selection at Stuller.com/YourSourceCJ. Stuller.com

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40

Features & Columns

28

46

60

Contents 28 FEATURE: JCK L AS VEGAS 2016 PREVIEW Here’s a little taste of what’s to come 40 ROUGH CUTS: WATCH YOUR ST YLE Be bold with Luminox 46 FEATURE: THE POWER OF EFFECTIVE VISUAL Ideas for your successful retailing

by Larry Johnson

50 FEATURE: PAYMENT BY TABLET Using technology to improve the customer experience

by Karen Cox

52 FEATURE: CYBER TARGET: YOUR JEWELLERY How to protect your store and your customer from hackers

by Phill Feltham

60 FEATURE: JVC'S ANNUAL CRIME REPORT Trends of criminal activity in 2015

56 ON DISPL AY How improving your store will help you take charge of the sale

by Larry Johnson

58 GEMS & GEMMOLOGY Fair Market Value

by Duncan Parker

64 JVC REPORT Home Invasions: How to protect yourself from criminals

by John Lamont

by Janet Lamont

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loved one with a QUIVER!

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THE HALLMARK YOU KNOW. THE SELECTION YOU WANT. The CanadaMark hallmark program assures customers worldwide that their polished diamond is of Canadian origin, cut from rough diamonds mined in the Northwest Territories. Now the journey from mine to store is easier than ever. Bring the brilliance of the North to your customers with the CanadaMark polished trading platform.

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For more information, please visit www.canadamark.com/exchange.

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have delivered sales strategy, direction, and solutions to jewellery stores of every size. We’ve built our reputation on successfully restructuring jewellery businesses, selling off inventory, and liquidating entire stores. Our professional consultants apply proven strategies designed specifically for the client and their unique business. Whether you’d like a transitional plan, retirement strategy, or a total liquidation, Silverman Chapman & Reese has the custom made solution to create your successful sale event.

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Distributed by PAJ Canada Company Visit PAJ at JCK Vegas I Plumb Club I Booth#PC-220

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JUNE 3-6, 2016

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Cover Story

the

Democratization

Luxury

of

L’ORO Jewellery entrepreneur steps up to embrace change

By Phill Feltham & Corrina Mosca

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HAIGO DERIAN IS A TRUE ENTREPRENEUR who understands the changes happening in the trade and has been monitoring it for ten years before expanding his business. “By nature, we’re not a true luxury market,” says Derian. “The current luxury market is a little bit more pedestrian, which is good news—on any important street today, you’re allowed to walk in, anyone is—and, the assortment has been broadened.”

Derian illustrates that a customer could buy a cardholder or a pair of cufflinks at a reasonable price in an elegant, luxurious store. At his locations, this strategy is used to entice potential customers into the store and expose them to their inventory.

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Cover Story

“We want our environments to really focus on the future of luxury, which is a little bit more casual, a little bit more encouraging,” says Derian. “We don’t want people to come in and feel like they shouldn’t be welcome in our environment,” he says.

This fact shows in his newest and third location at Sherway Gardens Shopping Centre, in Toronto’s affluent west-end neighbourhood of Etobicoke. Derian and his business partner Jeff Karadjian launched their masterpiece late last year: an almost limitless structure consisting of three independent retail concepts—Canada’s first Chopard Boutique, OMEGA at L’ORO Sherway Gardens and the retailer’s flagship multi-brand environment positioned in between.

Many jewellers get nervous when making significant investments for large expansions. The new flagship is the exclusive destination in Canada for the luxury timepiece collection Ulysse Nardin, in addition to Glashutte Original, Jaquet Droz, Linde Werdelin and other brands. OMEGA at L’ORO Sherway Gardens is a standout feature that carries more than 200 OMEGA timepieces.

The third concept store, the Chopard Boutique is a partnership with the Swiss luxury retailer and timepiece brand. The boutique offers an assortment for women and men from the brand’s collections Happy Sport, Happy Fish, Mille Miglia GTS and Imperiale. Within Canada, showcased items, better known as “boutique exclusive” pieces can only be purchased within this store.

The 30-foot-tall innovative and impressive storefront at Sherway Gardens is masterly crafted to capture the three stores independently, while still maintaining a consistent level of heightened décor Derian always strives for.

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“We had an opportunity to have a very impressive storefront. Within the Sherway Gardens Shopping Centre, we’re the only independent retailer that has a storefront to this degree,” says Derian who calls this passionate endeavor the most satisfying project to date.

He adds that he is very pleased with the finished store as well as the outcome of the first four months of operations.

One recipe for success, Derian says, is ensuring that new strategies and new business practices are in line with the ever-changing marketplace.

“We had a nose and an eye for what we believed was the future, and everything we made, we put back in,” continues Derian, speaking of the company’s successes. “The process during growth has been a challenge, but that’s the way we grew our business, and I believe that’s the way most jewellers build their business.”

Learning Experiences Derian is a second-generation jeweller who, from a young age, had a natural understanding of how a jewellery store functions. Derian’s father Vahram, who founded the first L’ORO Jewellery location in 1984, mentored him to understand the trade and the difficulties that lied ahead.

At first, Vahram wanted his son to pursue a career outside the jewellery industry. “My father recognized and encouraged my opportunities to go on and have a professional career after my post-secondary studies, he wanted me to embrace that and go in that direction.”

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“In the past, you could do everything and make errors,” says Derian. “Today, a jeweller can’t afford to take that many hits, to make that many errors. The margins are different, rents are higher and business has changed.”

Left: L’ORO showcases a wide range of high-end watches.

Top: Vahram Derian and Haigo Derian Bottom: John van Steen (from Mcister Singer), Jeff Karadjian and Haigo Derian

However, the younger Derian was passionate about the trade and wanted to be involved with the family business. In 2004, at the age of 25, through his father’s support, Derian opened and operated his first L’ORO Jewellery store.

In 2007, he partnered with his lifelong family friend, Jeff Karadjian, to launch Cupido, Canada’s first retailer dedicated to the fashion-luxury watch and jewellery segment. Business for the duo grew at an exponential rate. They went on to create two more Cupido locations over the years and a franchise partnership with jewellery leader, Pandora.

In fall of 2015, Derian and Karadjian completed their empire by acquiring L’ORO Jewellery from Vahram Derian who still maintains an active role within the business. Derian recalls, “Eleven years ago, my father had one location with five employees, three of which were family members and two part timers.

It was a much different time and business moved at a different pace. It was a very nourishing time to my career and development, thus giving me and the entire culture of our companies a true sense of meaning, especially for the values we worked so hard to preserve.”

Currently, Derian and Karadjian own and operate 17 retail environments throughout Ontario and British Columbia and have a team of 320 employees. This includes stores under their multi-brand concepts L’ORO Jewellery and Cupido as well as their mono-brand stores, including Chopard, OMEGA at L’ORO Sherway Gardens and nine Pandora concept stores. This number also includes the recent acquisition of five existing Pandora stores in British Columbia in early 2016.

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Cover Story

“The newly acquired five Pandora stores in British Columbia have given our group the opportunity to extend our reach nationwide,” says Derian. “We are excited to operate in this new territory and look forward to continued growth in the coming years.”

“Our growth over the years, including our recent expansion out west, illustrates our passion and dedication to not only the business, but also to preserving our values,” adds Karadjian, who is heavily involved in the Pandora side of business. “It’s a commitment to our company’s culture and origins.”

Since acquiring the aforementioned Pandora franchises, Derian and Karadjian have now taken the business nationwide. “The structure of our staff hasn’t changed much, but it has required additional roles to satisfy the new business environment.”

Derian and Karadjian have become more sophisticated in their operations and their acumen has increased significantly, which Derian says is through experience and practice.

“Ten years ago, we couldn’t admit our faults because we didn’t think we had any—especially as an independent, family-owned business,” he says.

“We put our heart and soul into everything we did, and it’s hard to look in the mirror and say, ‘Maybe we’re not doing this right.’”

Recognizing these faults, Derian says, was the first step; the second was implementing an effective strategy to improve quality of service. “We’ve put a plan together to elevate our talent pool. Talent is a major component in fine-tuning our quality of service practices.”

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Derian and Karadjian created an on-boarding strategy for new professionals within their working environment together with tools to help cultivate, encourage and support existing teams.

“We want our employees to treat our customers well—from the moment they walk into the store to the moment they leave,” says Derian.

Relationships & Partnerships Although customers are important to the company’s success, Derian says building relationships with vendors, landlords and other professionals who are in the business, is also vital.

In today’s luxury market, Derian says, jewellers can increase their rate of success by committing to a specific path. For him, this direction was through branded product lines. However, before making such a long-term investment, the reputable jeweller says, “Retailers must first believe in the products and brands they sell, not just from a fiscal sense, but also a human perspective.”

“Specifically in the watch world, once you invest in a brand, you’ve made a really big commitment,” says Derian. “Likewise, the vendor and the brand have made a commitment to you as well.”

He points out brand commitment means going through the highs and lows—all the time. “This helps us really forge partnerships with our suppliers, but it also helps us with our buying. Investing in a brand means we’re really going to have a good broad representation of the DNA of that brand with respect to product assortment.”

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Furthermore, Derian emphasizes that brand commitment means meeting high customer expectations. “Customers expect to see certain products— even if you don’t want to stock them.”

Procedures, Products and Customers Derian and Karadjian implemented a single strategy to encompass three areas: procedures, product knowledge and customer experience.

“We created a new role within our organization and we’ve filled that with a training manager at L’ORO, specifically for product knowledge and processes,” says Derian. “We want our sales staff to know how to react and act as soon as a customer comes into one of our stores. Furthermore, we want our staff to know how to effectively deal with a customer after the sale—the ongoing service that follows for years to come.”

Financial Strategies When it came to investment strategies, the Derians took an old-world approach of continually working hard and investing back into the business and as a result, the company had a very responsible growth strategy. Using such an approach, Derian and Karadjian took some risk and made a modest investment when opening their fashion-luxury retail concept store, Cupido.

“Like my father, we used a similar practice of continually investing back into the company and trying to grow in the most responsible way possible,” says Derian. “I think every independent business owner recognizes this and has gone through this pain. As you grow quickly, if you’re not responsible, it can be very challenging when you hit a rough spot.”

Derian and Karadjian learned how to limit their financial risks as well as

invest in product assortment that made more sense or that was showing growth.

“In the past, you could do everything and make errors,” says Derian. “Today, a jeweller can’t afford to take that many hits, to make that many errors. The margins are different, rents are higher and business has changed.”

For jewellers pursuing growth strategies, Derian recommends to mediate risk and take a limited number of chances. “Take chances on opportunities that you believe will be successful.”

“We take calculated risks, but we don’t gamble with our business model,” he says. “Calculated risks, for example, mean that for the next three to five years, any necessary investment will require constant input.”

“We have to be honest with what we’re getting into, and if we’re entering a new physical space physically, virtually, and culturally, we also have to really be willing to commit to that as a long-term strategy.”

The jewellery business, Derian says, is not about short-term gain. “We do not invest in products that are here today and gone tomorrow. There is no incentive for us. We invest for long-term gain.”

An Appetite for Further Growth “Our work is not done, we have other growth strategies—organically and internally—focusing on like-for-like sales and quality of sale,” says Derian.

Despite the rise of e-commerce, Derian and Karadjian still have an appetite to grow in a physical, traditional perspective, with more locations. “We are very fortunate to be a participant in the current era of re-mapping luxury within the market. As such, we intend to find new and progressive ways to maintain the traditions and values of our artisan roots and old-world charm, for me what I know today as the jewellery and watch industry.” CJ

AT A GLANCE NAME: L’ORO Jewellery [flagship], OMEGA at L’ORO Sherway Gardens, Chopard Boutique OWNERS: Haigo Derian and Jeff Karadjian LOCATION: 25 The West Mall, Etobicoke, ON STAFF: 12 employees KNOWN FOR: Superior quality of service and product knowledge COOL FACTOR: “One of the cool factors about our new flagship location, which includes three independent environments and storefronts, is the façade, which stretches 30 feet tall. Creating this required erecting fourteen 37-foot beams indoors; a challenge to say the least. The inspiration came from the towering brand booths from Baselworld’s famous Hall 1.0—the end result has been very rewarding.”

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Rough Cuts: Luminox

Wa t ch your Sty le Be bold with the best classic styles

Photography by Andrea Stenson Styling by Manj Gill Grooming by Aniya Nady for Plutino Group Model: Jesse Assing

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Is there a special piece of jewelry that has been important in your life? The necklace I designed of yellow diamonds and pearls for my wedding.

My husband presented it to me on our wedding day.

What advice would you give someone starting out? Always remember that this business is very personal. My customers have become friends, I enjoy being a part of important moments in their lives. They rely on my knowledge and integrity, the same way I rely on GIA—the international standard. GIA reports provide security and confidence, not only for our customers but our company too.

GIA would like to gratefully acknowledge those using our resources to further worldwide expertise in gems. Read Cindy’s full interview at GIA.edu

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