COMPANY PROFILE
2014
Caratco
Diamonds are forever
CompANY PROFILE
Diamonds are forever Editorial: Lauren Grey Production: Ajuanne Payne
Renowned for its exceptional quality and expertise in the diamond industry, South Africa’s Caratco was selected as the first exclusive authorised jeweller for De Beers’ Forevermark diamond. CEO, Tim Watson tells IndustrySA why he is “delighted” to be in partnership with the international mining group, and why a Forevermark diamond, really is forever.
Derived from the ancient Greek word “adámas” meaning “unbreakable”, diamonds are symbolic of love; representing a lifelong commitment between two people. It is for this reason that the precious gemstone has stood the test of time, and will continue to do so for many years to come. Experts in harnessing the natural beauty of a diamond, South African jewellery company Caratco is renowned for its unmatched expertise in the gem industry, with three resident generations of gemmologists on hand to offer exceptional value and professionalism. Established almost 30 years ago, Caratco started out as a small wholesale company but has since grown to be one of the largest diamond companies in South Africa. CEO Tim Watson, says he started the business after his previous employment was terminated, “I started
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the business in 1985, before that I was a gemmologist for an investment company which unfortunately went into liquidation. “At that time I had two young children and had to find a way of making a living. Caratco started as a small wholesale business, but it quickly expanded into many different directions such as jewellery manufacturing and niche retail.” Although the business took off in a different direction from how Watson first imagined, he says that wholesale still makes up for approximately half of the company’s total revenue in terms of sales.
SHOWROOMS Caratco specialises in many facets of the diamond industry, including wholesale, retail and on-site manufacturing at its showrooms in Cape Town and Johannesburg. “Our two Jewel Africa showrooms in South Africa
Caratco
both have on-site jewellery manufacturing. This is an important service because it gives us the edge over our competitors; we are able to manufacture and set a diamond whilst the customer waits, which is a very attractive service to have.” The sheer size of the company’s showrooms and its unique facilities means that Jewel Africa can accommodate large international groups for educational opportunities, such as talks on diamond cutting and the re-manufacturing of gemstones.
FOREVERMARK Caratco currently has four brands in its portfolio, including South Africa Ideal Cut, Dora and Sitara, however the company’s most prestigious brand is Forevermark, the diamond brand from the De Beers group of companies. In February 2012, Caratco’s retail outlet Jewel Africa was chosen as the first exclusive authorised
Forevermark jeweller in South Africa, and Watson says the response to the Forevermark brand has been excellent across the country. “…we entered into discussions with De Beers because they were looking to expand the Forevermark brand in South Africa at the time, and they gave us an exclusive distributorship based on our track record and enthusiasm for the brand. “The response to the Forevermark brand has been excellent, sales in 2011/12 were up in excess of 50% and we are looking towards further growth this year, it has been very positive and we have had great success” says Watson. The Forevermark brand brings together 120 years of diamond expertise within the De Beers group, with each diamond inscribed with a promise; a promise that it is beautiful, rare and has been responsibly sourced. Less than one percent of the world’s diamonds are
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CompANY PROFILE
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Caratco eligible to be inscribed as Forevermark, making them truly rare. Each one must be at least 0.14 carats in size, of a clarity standard SI2 or above, of a very good cut or higher and colour L or higher. Forevermark diamonds also come from a small number of carefully selected mines that are committed to the highest business, social and environmental standards. These standards apply at every stage of a Forevermark diamond’s journey; when they are cut and polished and set into beautiful jewellery. However, Watson says that not everyone understood what the Forevermark brand stood for to begin with, “It took some time, South African retailers were initially hesitant about the brand, but as more and more people are becoming aware of the underpinning values of a Forevermark diamond, so the brand is growing across the country.”
CONSUMER AWARENESS Watson says that the Forevermark promise comes at a time where more people are becoming aware of the social and environmental implications of mining, and
consumers are looking to purchase jewellery that has been ethically sourced. “I have noticed increasing demand from consumers to know that the product that they are purchasing benefits the community and is environmentally friendly. Mining has received some negative publicity in the last decade, so the Forevermark promise is very important for the brand.” As an exclusive distributor of Forevermark diamonds, Caratco is able to appoint retailers who meet the strict criteria set out by the brand, in terms of ethical trading and position in the market. There are currently fourteen stores listed on the Forevermark website as official South African stockists of the Forevermark brand. “We wholesale to these stores and they retail the product, either in Jewellery or in loose diamonds, whichever suits them at the time. We also have our own retail opportunities, and sell the diamonds at our two showrooms, Jewel Africa in Johannesburg and in Cape Town. “We aren’t trying to push the brand too hard, we want the brand to grow by demand rather than try to hard sell into retailers, and I think we are achieving this.”
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ASSOCIATED INSURANCE BROKERS i capital Risk Services (Pty) Ltd t/a
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AIB is the most experienced specialist insurance broker to the jewellery and art industries in South Africa. We are very proud to have handled Caratco’s insurance for many years. 95
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Clients receive the dedicated personal attention of professional staff,working in conjunction with Lloyd’s of London and specialist local insurers.
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+27 (0) 11 011 9100 www.caratco.co.za
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