J E W EL L ER Y RUS SI A
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11 September, 2014
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JEWELLERY RUSSIA Medal — Sign of Honour Geography of Russian Retail Market How Well Do We Know Retailers’ Tastes?
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Dear Readers! L
Valery Budny Head of Media-holding RESTEC JUNWEX
et us introduce you the latest issue of international edition of JUNWEX Jewellery Russia Magazine – a project of RESTEC JUNWEX Media-Holding, JEWELLERY RUSSIA Publishing House and RUSSIAN JEWELLERY TRADE CLUB. This issue includes the most interesting and actual for international jewellery market information: analytical reviews, comprehensively characterizing jewellery business in our country, and articles about operational experience of foreign companies on the Russian market, as well as interviews with representatives of the industry reflecting prospects of cooperation with foreign partners. JUNWEX Jewellery Russia, established by the RUSSIAN JEWELLERY TRADE CLUB and RUSJEWELLEREXPERT Consulting Agency is the most distributed and reliable В2В edition in the Russian jewellery market. The target audience of the magazine are investors, CEOs, commercial directors, top-managers, heads of sales departments, commodity researchers, jewellery enterprises of small, medium and large scale, and everybody who is interested in further development of business in the jewellery industry. The magazine JUNWEX Jewellery Russia is distributed: • By address base of RUSSIAN JEWELLERY TRADE CLUB covering more than 7000 most significant jewellery stores in Russia; • by address base covering all manufacturing enterprises of the jewellery branch; • Among participants and visitors accredited for all JEWELLERY RUSSIA PROGRAMME Exhibitions; • by VIP-mailing (state officials, regional administrations, business elite); • by subscription. The materials of this edition represent the whole range of information relevant for jewellery business. JUNWEX Jewellery Russia is a professional tool for establishing partner relations and effective promotion of business. We are sure that every reader of the English edition of JEWELLERY RUSSIA Magazine will find on its pages not just interesting but also necessary and helpful information regarding the Russian jewellery market.
JEWELLERY RUSSIA Publishing House is a recognized leader in the market of mass-media industry in terms of volumes of publishing: 2 500 000 hardcopies of B2B JUNWEX Jewellery Russia magazine annually and this figure is constantly increasing. It also publishes B2C “Best Adornments in Russia” magazine (155 000 copies, 8 issues per year) which gives the key information about the latest trends in jewellery industry. In 2012 a new edition was launched — JEWELLERY BESTSELLER. It is a catalogue of the most demanded jewellery collections on the Russian market, a indispensable directory for the retailer.
HONG KONG JEWELLERY & GEM FAIR HONG KONG CONVENTION & EXHIBITION CENTRE 17-21 SEPTEMBER 2014 HALL 3F-G BOOTH 3F423
620041, 3 Uralskaya str. Yekaterinburg, Russia Tel/Fax: +7 (343) 380 76 76 e-mail: info@ringo.info www.ringo.info www.facebook.com/tmringo
First cover image SOKOLOV JEWELRY COMPANY +7 494 323 11 00 www.sokolov.ru
JUNWEX — Jewellery Russia Magazine is an english digest with information about Russian Jewellery market printed by publishing house "Jewellery Russia" EDITORIAL BOARD V. Budny, Head of Jewellery Russia Programme B. Borisov, First Deputy Director of Russia Assay Office O. Mironova, General Director of RusJewellerExpert Consulting Agency A. Gorynya, Chairman of Russian North West Union of Jewellers G. Kovaleva, Chairman of Judges of a Jewellery Contest within the Jewellery Russia Programme D. Percossi Papi, Jewellery Designer, Italy T. Noskova, Deputy Chief Editor V. Puryguin, Director of Jewellers Guild GOLDEN RING of RUSSIA K. Avakyan, President of FORMIKA Company V. Meshalkin, Federal Jewellery Holding GOLDEN STANDART ESTABLISHER Russian Jewellery Trade Club RusJewelleryExpert Consulting Agency EDITORIAL STAFF V. Budny, Publisher T. Noskova, Editor-in-Chief I. Fedorova, Script Editor J. Runova, International Department Editor A. Dobrov, Art Director D. Besetskaya, O. Surkova, Designers L. Lebedeva, Proofreader A. Andronova, Circulation Department I. Kadzhaya, Head of International Department T. Tuzova, International Department ADDRESS 12 Petrozavodskaya St., St.Petersburg, 197110, Russia Tel.: + 7 812 303-98-60, +7 812 320-80-99 E-mail: overseas@restec.ru www.junwex.com Printed by ScanWeb OY, Korjalankatu 27, 45 130, Kouvola, Finland. 5 000 copies. Materials are not returned and not reviewed. All rights reserved. No part of this publication may be reproduced in any form without the written permission of Jewellery Russia Magazine. Reference to the journal is required. Jewellery Russia Magazine is registered by Federal Service for Supervision of Legislation in Mass Communications and Protection of Cultural Heritage in the Russia’s North-West Federal District. Registration Certificate PI #FC2 — 8476. Editorial Board offers its deepest apologies for the mistake made in the article «Recognition of St.Petersburg» (issue 10 (March), page 9). Collection IMAGES of RUSSIAN BALLET taken 1st place in the nomination BEST JEWELLERY OR SEASON COLLECTION was submitted to the contest by SASONKO Jewellery House (St.Petersburg).
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Editorial
EVENTS
6 10 18 27
JUNWEX New Russian Style Days of Russian Jewellery Market Leaders JUNWEX MOSCOW New Perspectives of JUNWEX ST.PETERSBURG 2015
ANALYTICS & STATISTICS
30 34
Geography of Russian Retail Market How Well Do We Know Retailers’ Tastes?
JEWELLERY TRADE
23
JEWELLERY RUSSIA Medal — Industry Sign of Honour 38 Russian Jewellery Trade Club
September Hong Kong Jewellery & Gem Fair Hall 3F-G, Booth 3F 424
6 | Events | JUNWEX Magazine
NEW RUSSIAN STYLE Exhibition Statistics: Exhibition area
25 400 sq.m. Exhibitors
614
Visitors (total)
24 674
Trade visitors
7 385
D
aily from 28th of May to 1st of June the leading jewellery internet-portal www. junwex.com published the events of the exhibition JUNWEX NEW RUSSIAN STYLE that hosted the most successful and active players of the jewellery market in pavilion 75, on VVC fairground. They were jewellery producers, distributors, wholesales&retailers. The exhibition became the base for the important business events such as the board meeting of Russian Jewellers Guild, the awarding ceremony of INDUSTRY LEADERS competition, Business Contacts Exchange organised by the Russian Jewellery Trade Club together with UBM ASIA company, the presentation of the project "Russian city in Beijing" hold by the head of Fareast representative of RJTC N.Tkachenko, the session of the RJTC Supreme Council, JUNWEX EDUCATION CENTER sessions in cooperation with JEWELLERY RUSSIA publishing house.
Business program is only the one part of JUNWEX NEW RUSSIAN STYLE Show. Main purpose of this event is to stimulate sales of summer season. That’s why the result of the show should be calculated based on the opinions, impressions and observations of the market players. As for the visitor traffic, this year we can operate by the figures from registration desks presented by Russian Jewellery Trade Club. They show us growing share of wholesalers, what makes b2b format of this project much stronger. Decreasing of the consumers quantity and overall consumer ability in regions finally showed itself in Moscow. Despite higher level of financial sufficiency of the capital's residents, even their flow as visitors decreased in the comparison with the previous year that became the mirror of both financial and political situation in the country.
Events
Traditionally BUSINESS CONTACTS EXCHANGE gives the retailers opportunity to meet with 35 foreign companies from 10 countries. More than 140 meeting with the representatives from Hong Kong, China, USA, Italy, Turkey and other countries were organized.
RJTC also marked the growth of trade companies, pre-registered for picking. If previously exhibitors told us about 2-3% of new wholesalers, now they are speaking about 7-8%. A certain role was played by the companies from Crimea appeared on the Russian market. Companies from Feodosiya. Simferopol and other cities from this region visited the fair not only for the new jewellery collections, but they also registered as Platinum and Gold members in the Russian Jewellery Trade Club.
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The experts opinions confirm the subsidence of medium price segment and an increased demand for cheaper or more expensive jewellery. 2 years ago medium bill for diamond jewellery was around 2.500 USD – 5.000 USD. Now it has grown up to 8.000 USD – 10.000 USD showing total decrease of sales. Moreover experts mention the increase interest to designer jewellery. The company “Svyat-Ozero” claimed that number of orders is so high that their workshop is completely full. Exclusive jewellery from new collection of PERASKEVA company was sold during the first day of the show. the company A.Karlovich declared that the pens made of gold and decorated with diamonds were very popular at this fair.
117 trade visitors from 21 cities of Russia came to JUNWEX NEW RUSSIAN STYLE to participate in the round tables, seminars and practical works organized by JUNWEX EDUCATION CENTER.
The silver jewellery manufacturies like Navell, Argentum 925 and Marcasite were satisfied with the participation in JUNWEX NEW RUSSIAN STYLE 2014. They exhibited new collections with the affordable prices. ADAMAS Jewellery Company presented two new brands — APM MONACO and AGATHA. Both of them were very popular at the show and working process didn’t stop even in the evening. ADAMAS can be mentioned as the most venturous company in means of the intellectual promotion of its interest for the buyers.
Events
The peculiarities of the demand were predicted by the upcoming summer season: sales of diamonds reduced while sales of coloured stones started to grow. A definite success for companies was conversion to trend jewellery, such as the collection of hair accessories (Master Brilliant), pannier — bracelet and ring, linked by chain (Estet). The enlargement of the men accessories also became remarkable. The Jury of the Contest — Days of Russian jewellery market leaders — established a new nomination named Men’s Collection. Jewellery of Rifesta-Holding Company, Kustov Company and Ku&Ku Company got the honorable rewards. Totally more that 95 jewellery pieces from 40 companies were presented to the jury. “Each company who paid a lot of attention to the product promotion, received good results, — made a conclusion Olga Mironova, general director of RusJewellerExpert Consulting Agency. Someone can complain for the poor sales at the show, but we know, that only those who uses the promotional instruments effectively and who knows the basic marketing principles, will reach their goals and be successful.”
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Days of Russian
Jewellery Market Leaders
Y
RUSSIAN SAMOTSVETY Company (St.Petersburg) Set SUMMER DAY
ou cannot call the present year an easy one. The Creative process in all fields of art is affected by a current world situation. Jewellery sector is not an exception and each foreign and local company has to find their way to develop. The constant search of something new leads to mixing of emotions and technologies. And it is an emotion that plays the main role for most of Russian companies during the design process. Is it good or bad? We’d say good, but only in the case when the technology process is accurate and the design is professional. Processes that showed us the way to a 3D-effects as well as advanced materials can help us with the creation of modern treasures. The key Russian brands are looking for a synthesis between the innovations and traditions. The handicraft remains current. The usage of unexpected constructive methods and different textures in addition with the beauty of a natural stone provides the creator of modern jewellery masterpieces with unlimited possibilities for his future designs. JUNWEX St.Petersburg Exhibion took place in this February 2014 and surprised us with the
jewellery of the highest level ever achieved in the history of JEWELLERY RUSSIA Programs’ competitions. On the contrary, during the “Days of Russian Jewellery Market Leaders” competition which was held during the New Russian Style show in Moscow, not all, but just a few of nominees demonstrated their competitive ability. Unfortunately, this led to a lowering of an entire competitive process. And yet some prize-worthy pieces of art were demonstrated to our expert judges. The unique jewellery made by the KOSRTOMA DIAMOND Company, MASTER BRILLIANT, SVYAT-OZERO, YURY FEDOROV Workshops, Jewellery House CHRYSOS, RUSSKIYE SAMOTSVETY, JF Carat, RINGO TM, LeoTotti, AZURIT-N were particularly noted by judges. Meeting at the autumn JUNWEX Moscow Show, another competition and new creative discoveries are waiting ahead!
SUPREME BOARD OF EXPERTS: Galina Kovaleva
President of the Jury for the Contests of the Jewellery Russia Programme,
President of the FORME Jeweller Support Foundation.
Natalia Korovina
Fine Art Expert, Art Critic
Olga Kostyuk
Ph.D. in Art History, Senior Researcher, the State Hermitage Museum
Tatiana Muntyan
Fine Art Expert, Senior Researcher, Moscow Kremlin Museums
Larissa Peshekhonova Fine Art Expert, Senior Researcher, Moscow Kremlin Museums Anna Ratnikova
Lead Researcher, Russian Museum of Ethnography
Galina Smorodonova
Fine Art Expert, Lead Researcher of Precious Metals Department,
Russian History Museum
CHRYSOS Jewellery House (St.Petersburg) Collection METAMORPHOSIS
12 | Events | JUNWEX Magazine
Jewellery collection
I place
I place
RUSSIAN SAMOTSVETY Company (St.Petersburg) Гарнитуры: Sets SUMMER DAY, WINTER MORNING
KOSTROMA DIAMOND (Kostroma) Sets BREEZE, MATRIX, CARNIVAL, REINCARNATION, TREASURES of ALAMUT, SECRET of APHRODITE Set CARNIVAL Set BREEZE
Set TREASURES of ALAMUT
I place
I place
MASTER BRILLIANT Company (Kostroma) Sets SUNNY, SUNSET, ELEGANZA, ISLAND
SVYAT-OZERO TM Company (Moscow) Set ARK, Ring the CREATION of the WORLD from the collection DYNASTY, ring TIBET Ring the CREATION of the WORLD
Set ISLAND
Ring TIBET
Set ELEGANZA
Set ARK
14 | Events | JUNWEX Magazine
Diamond design
I place
SVYAT-OZERO TM Company (Moscow) Earrings NEFERTITI
I place
JF CARAT (Ekaterinburg) Collection UNDER the LUCKY STAR
Precious stones I place
I place
ANTAL (Nizhny Novgorod) Ring CASCADE
II place
JF CARAT (Ekaterinburg) Set ODYSSEY
ART-JEWELLER (Rostov on Don) Collection EMERALD SAMBA, rings WHITE NIGHTS Ring WHITE NIGHTS
II place
MASKOM (Kostroma) Three sets from the Collection TENDERNESS
III place
GALINA PLATONOVA (Moscow) Ring PERUVIAN FIRE, Ring FLOWER of TANZANIA
Collection EMERALD SAMBA
Ring PERUVIAN FIRE
III place
URAL JEWELLERY COMPANY (Ekaterinburg) Ring DREAM Ring FLOWER of TANZANIA
Pearl I place
CHRYSOS Jewellery House (St.Petersburg) Collection METAMORPHOSIS
II place
ZHEMCHUZHNOE PODVORYE TM (Moscow) Brooch WIND’s DREAM
Events
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Mass production II place
II place
AQUAMARIN Jewellery Factory (Krasnoe-na-Volge) Gold collection with semi-precious stones COLOR STYLE
FILLART (F.Kolonitskii sole entrepreneur) (St.Petersburg) Set IRISES, Collection of enameled rings ESH-style
Set IRISES
III place Collection of enameled rings ESH-style
SANIS Jewellery Manufactory (St.Petersburg) Collection VIA DELL’ AMORE
III place
CORONA (U.Romanova sole entrepreneur) (Krasnoe-na-Volge) Set BUTTERFLIES, Collection AMETRINES
Collection AMETRINES
Set BUTTERFLIES
Ethnic design I place
AZURIT-N (Novosibirsk) Pendant KHAYYAM’s SOUL
II place
ZOLOTIYE UZORY (Kostroma) Lot RUSSIAN BEAUTY
16 | Events | JUNWEX Magazine
Kaleidoscope: materials, technologies, ideas I place
CHRYSOS Jewellery House (St.Petersburg) Earrings RAIN, Set FLOWERS of KILIMANJARO
IILEO place TOTTI
Earrings RAIN
(Tolyatti) Necklace EAGLE
III place
TIMOFEEV Company (Cheboksary) Wedding rings FIRST LOVE
Set FLOWERS of KILIMANJARO
Religious objects
II place
I place
YURY FEDOROV Workshops (St.Petersburg) Pectoral cross LIGHT of a CHRIST, pectoral cross on a chain VIENNESE
Pectoral cross on a chain VIENNESE
ELIZAVETA Company (St.Petersburg) Orthodox pectoral cross CRUCIFIXION SCENE, ARCHANGEL MICHAIL
II place
KUSTOV sole entrepreneur (Kostroma) Collection of Orthodox crosses with stoving enamel and diamonds Pectoral cross LIGHT of a CHRIST
Fashion trends I place
ERMY Company – RINGO TM (Ekaterinburg) Rings from the Collection MILLION
II place
MASTER BRILLIANT Company (Kostroma) Hair ornament LE PETIT JARDIN
III place
NEVSKY-SPb Company (NEVSKY-T) (St.Petersburg) Hand adornment BUTTERFLY
Events
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Silver design I place
ALTMASTER Company (Kostroma) Plate for lemons CHILDREN IN ICE SKATES
II place
GRANAT Jewellery Company (Vladimir) Collection AMBER STORY
Men accessories I place
RIFESTA Holding (Ekaterinburg) Men jewellery collection LEADER
II place
KUSTOV sole entrepreneur (Kostroma) Men collection PATRIOT consisting of three sets ranked according to military branch: AIR-LANDING TROOPS, AIRFORCE, NAVY Set NAVY
II place Set AIR-LANDING TROOPS
KU&KU Company (Kostroma) Lot of cufflinks MILITARY
M O S C OW
Activity and Optimism
Events
JUNWEX Moscow — the key event of the jewellery industry in Russia — addresses the most urgent issues in jewellery business and determines not only successful work in the current year, but also potential development for companies. 2013 year exhibition demonstrated the revival of the jewellery industry in anticipation of market recovery.
JUNWEX Moscow 2013:
2 most prestigious pavilions of the
All-Russian Exhibition Centre (VVC);
T
hanks to such a large-scale representation of market participants from various countries, we may talk about high business activity of the exhibition. As part of the grand opening ceremony of JUNWEX Moscow the Award Ceremony was held; the awards were presented to trade companies the winners of Reliable Partner Competition, the medals were presented to the cavaliers of the Sign of Honour JEWELLERY RUSSIA, and the certificates were handed out to the leaders of TOP-10 rating, who excelled in the marketing push-pull strategy.
718 Russian and international companies;
40 360 visitors and among them 18 854 accredited
wholesalers&retailers.
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“Execution of such a large-scale event contributes a lot to the jewellery industry development in Russia. JUNWEX Moscow proved to be not only an exhibition featuring works of jewellery art from throughout Russia and all over the world, but also an efficient venue for establishing new business contacts and concluding agreements. I’m also sure that participation of representatives of the Russian Assay Office in the exhibition will facilitate cooperation between government structures and business representatives of the industry!” A. Markin, Director of the Russian Assay Office
Among other distinctive features of this exhibition is the JUNWEX Tech extended display. The following companies exhibited at JUNWEX Tech: Vek, Gallery Steinberg, Clio, KovrovUpak, Lasso, Sisma, Fasti Industriale, PromTech, Ruta, Sapphire, Fabrika Vek, Juvin, Jmo etc. The exhibition was held in two pavilions. Pavilion 75 hosted companies specialising in packaging, software, trade and demonstration equipment. Such placement allowed jewellery manufacturers and retailers to get the recent information on innovations in these industry sectors. Pavilion 69 hosted mainly manufacturing equipment and tools. Besides, the great influx of visitors to this display of JUNWEX Tech proves the rising activity and optimism of the market.
Events
The Vietnam Gold Trade Association visited the exhibition with the official support of the company ‘Ringo’ and the Vietnam-Russia Friendship Association in the Sverdlovsk Region. Representative booths of jewellery exhibitions Bangkok Gems & Jewellery Fair (Thailand), Inhorgenta (Germany), Fiera di Vicenza (Italy) displayed their events for the first time for the Russian participants in their home country. Italian companies Fratelli and Athena made presentations for their potential partners in Russia in the framework of the Business Matchmaking of The Russian Jewellery Trade Club. In order to develop international cooperation and to help Russian companies enter the global market, media holding RESTEC JUNWEX offered all possible options and assistance to all Russian companies interested in working abroad. In this
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40 foreign companies from
16 countries regard, the presentation of Russia’s country pavilion was organized in the framework of Jewellery and Gem Fair – Europe which was held in Freiburg (Germany). Also at this Fair the terms of potential cooperation were discussed. At the meeting ‘Business & Leisure’ the travelling plan of Russian official delegations to the world largest exhibitions in Hong Kong, Las Vegas, Basel, Vicenza, Istanbul, Dubai, Sri-Lanka etc. was discussed. At the same time, a joint invitation allowing visiting 20 various UBM and RESTEC JUNWEX trade shows was demonstrated at the exhibition in Hong Kong. In 2014, the exhibition will open its doors for exhibitors and guests on October 1-5, 2014.
This prize is rewarded to industry representatives with the state or social position, who made an outstanding contribution to the jewellery industry and assisted to its development and prosperity, as well as to the owners of biggest enterprises who went from the company foundation to nowadays. Thus they repeated the way of Russian jewellery market. This award is not only domestic but international. This year among the persons awarded with the Medal we see Dr. Diego Percossi Papi, who works with Russian jewellers for more than twenty years, and Tatiana Faberge put forward for the award by the Carl Faberge Memorial Foundation. In 2014 JEWELLERY RUSSIA Medal received a new additional official attribute — the designation of the quality. The Russian Jewellery Trade Club initiated to choose annually one company meeting the requirements. The first company awarded a high confidence is DIAMANT Company — the leader of national jewellery production — promoting the SOKOLOV brand name inside the country as well as abroad. The awarding ceremony takes place annually at the International Jewellery and Watch brands Show — JUNWEX Moscow.
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Industry Sign of Honour — JEWELLERY RUSSIA Medal.
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WINNERS OF INDUSTRY SIGN OF HONOUR JEWELLERY RUSSIA-2014 ANNOUNCED
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26 | Название раздела | JUNWEX Magazine
Darvin
DARVIN DARVIN
Darvin
September Hong Kong Jewellery & Gem Fair Hall 3F-G, Booth 3F 426
Events
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New Perspectives of JUNWEX
ST.PETERSBURG 2015
M
ove to the new and capacious venue always means that exhibition is going to grow. So it was when we moved to LENEXPO fairground from the “time-honoured” Manezh and it gave exhibition completely another immensity and significancy. So I’m sure that it will be again with move to EXPOFORUM. But we all should remember old Russian proverb “not only the place makes the man, but the man makes it”. My belief in future is based on the belief in our staff and longtime partnership with participants of “Jewellery Russia” Programme. It gives us the possibility to hear and understand each other, find mutual but sometimes hard compromise and the most important is that we will move in the correct direction of jewellery market development. I wish you all to keep a wise approach while preparing to exhibit in JUNWEX ST.PETERSBURG 2015 event, good spirits and unforgettable time in Northern capital of Russia! Valery Budny, head of JEWELLERY RUSSIA programme, president of media-holding “RESTEC JUNWEX”
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ot by chance presentation of new venue for JUNWEX ST.PETERSBURG was organized 6 months before the show. Almost like in Russian proverb “Prepare sledge in summer and a cart in winter” we showed to our potentials new venue in June, 2014. It won’t be a surprise that success of the exhibitor in any show depends on your ability to predict and make forecasts. It’s important to understand, how to distribute the flow of trade visitors and what advertising options exhibitor should choose to attract more attention. How to make a booth project, plan your hotel, parking slot for the car – this and many other peculiarities identify the results you’ll receive after exhibition. Wish you all the best!
Olga Mironova, general director of RusJewellerExpert Consulting Agency
September Hong Kong Jewellery & Gem Fair • Hall 3F-G, Booth 3F429
BRONNITSY JEWELRY:
WORKMANSHIP IN DETAIL
Bronnitsy Jewelry is one of the oldest Russian companies with an extensive history. The key production division of the company – Bronnitsy Jewelry Plant – is a firstrate enterprise with state-of-the-art equipment supplied by the world leading manufacturers. It treasures the long-standing traditions of Bronnitsy jewelry crafts. The hallmark and the source of pride for the enterprise are gold and silver chains. Russian consumers have long favoured these products which are manufactured manually and by machines, and include hollow chains. These jewelry items have become recognized classics. The company owns a large number of patents for unique production methods of jewelry locks with a gold spring, as well as many chain patterns popular among consumers, and treatment methods. Bronnitsy has been known for its unique chains for more than 200 years. The trademark “Bronnitsy Jewelry” well-known in Russia and worldwide for its exceptional quality makes it a sought-after product and a favoured gift in all districts of Russia. Having won the trust on the local market, Bronnitsy Jewelry is taking its first confident steps on the international jewelry market.
Bronnitsy Jewelry 19 Leninskaya Sloboda, Moscow 115280, Russia Tel/fax: +7 (495) 775-80-48 www.bronnitsy.com
30 | Analytics & Statistics | JUNWEX Magazine
Geography
of Russian Retail Market RusJewellerExpert Consulting Agency with Russian Federal State Statistics Service data taken into account studied the distribution of jewellery sales volume between the territorial entities of the Russian Federation, marking out the regional sales’ leaders and evaluating the concentration ratio of retail market. This information could help new investors, as well as accomplished participants of jewellery market, in finding new possibilities for their retail business development and in definition of most efficient regions. Geography of Russian retail market: FEDERAL DISTRICTS
8,09 9,52 10,49
Central
5,73
Southern
31,33
%
Ural Siberian Volga North Caucasian
10,80
11,21
12,83
North West Far Eastern
1. RUSSIAN FEDERATION, FEDERAL DISTRICTS BREAKDOWN AND THEIR GROWTH DYNAMICS.
In the year 2013 the total volume precious stones jewellery sales was 182 050 493 700 rub. The annual increment amounted 11,1 % comparing to 2012, which is the minimum value in last four years (16,1 % in 2011). Therefore, despite the continuous growth of retail market, the annual rate of increment is slowing down. In general, the geography of Federal districts sustained minor changes, although we should note: • The decrease of Central (for 2,1 %) and Siberian (for 1 %) Federal districts share and slight decrease of Ural Federal district’s share (for 0,2 %); • The increase of Southern (for 1 %) and North Caucasian (for 1,53 %) Federal districts share and slight increase of the Volga (for 0,3 %) and North West (for 0,3 %) Federal districts shares; • Nearly unaltered share of Far Eastern Federal district.
Analytics & Statistics
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Distribution of annual retail jewellery sales volume in 2013 year between the territorial entities of the Russian Federation, bln rub. Federal district
Sales volume in 2013, mln. rub.
Sales growth on annual basis, %
Central
57 040,74
+ 4,08%
Southern
23 357,82
+ 21,05%
Ural
20 399,04
+ 8,72%
Siberian
19 663,99
+ 1,79%
Volga
19 099,43
+ 14,47%
North Caucasian
17 326,58
+ 33,31%
North West
14 734,66
+ 15,96%
Far Eastern
10 428,23
+ 11,68%
In total
182 050
+ 11,07%
2. ALTERATION OF VOLUME OF RUSSIAN FEDERAL DISTRICTS
whereas in 2012 it was about 18 %. Siberian Federal district resulted on a fourth place (second in 2012) in terms of total sales volume in Russia. • The annual accession rate in Volga Federal district is a little bit above the average in Russia. This fact lets Volga Federal district keep the fifth place in terms of summarized sales volume in Russia. • North Caucasian Federal district demonstrated the fastest annual growth of retail sales — more than 33 %, which is three times higher than national. Like the last year, it keeps the sixth place of total sales volume. • North West district showed the annual sales gain at about 16 %, which is higher than national level. However, it is still on a seventh place in terms of total sales volume in Russia. • The level of annual growth of Far Eastern district is near average for Russia – around 11,7 %. That way, it is still Russian retail market’s outsider.
Therefore, retail sales gain in 2013 are significantly different: • Central Federal district kept absolute leadership in sales, but the annual sales gain in 2,7 times lower than on the average in Russia. The annual growth rate is more than three times down comparing to 2012 year. • Southern Federal district demonstrated excellent improvement: more than for 4 billion rub., and became second in Russia in terms of annual gain (third in 2012 year). That kind of sales gain can be observed third year in a row. • Ural Federal district showed lower annual growth level than average in Russia, but kept the third place in terms of total sales volume in Russia. • Siberian Federal district is distinguished by the lowest annual sales gain – less than 400 mln. rub. and 1,8 % for 2013 year. This is the most contrast deceleration of growth rate,
32 | Analytics & Statistics | JUNWEX Magazine
Distribution of annual retail jewellery sales volume between the territorial entities of the Russian Federation in TOP-10, 2013 year, % FEDERAL DISTRICTS
8,09
Central
5,73
9,52 10,49
Southern
31,33
%
Ural Siberian Volga North Caucasian
10,80
3. RETAIL SALES’ LEADERS IN THE RUSSIAN FEDERATION
In addition to Geography of Russian retail markets it is also necessary to point out the leading territorial entities of the Russian Federation (cities, provinces and republics) in terms of jewellery sales to be able to evaluate their market share. The leading position of Moscow in TOP-10 of retail sales’ ranking is foreseeable: it’s share (21,26 bln rub.) equals 11,7 % of national volume and more than 22 % of total of first top 10 ratings’ sales. The share of Krasnodar Krai (17,08 bln rub.) which is second in ranking is essential as well: 9,4 % of national volume and almost 18 % of total of first ten, and on third place we see the Republic of Daghestan (11, 92 bln rub.) with more than 6,5 % share of national sales volume and near 12,5 % of total of first top 10. The first top 3’s summary share is near 28 % of total national sales volume and 52,5 % of total top 10’s sales volume. The volume of Tyumen Region which occupies fourth place in ranking is close to the Daghestan’s sales — 11 bln rub. The main contribution (7,45 bln rub.) is provided by Khanty-Mansiisk Autonomous District contribution. The Sverdlovsk Region rounds out the first topfive with the share of 7,285 bln rub. and together with following territorial entities gives in total only 36 % of first top ten.
11,21
12,83
North West Far Eastern
The total jewellery sales of first TOP-10’s of national ranking equals 95,71 bln rub. (for the year 2013), which is about 52,57 % of retail sales volume in all Russian Federation. Russian retail market can be called the Market with high level of regional concentration: out of 83 constituent territories of the Russian Federation the contribution of top-10’s is 52,6 % of nationwide sales. Subjects from 11th to 20th place give 18,4 % (in total) of nationwide sales, whilst other 63 objects — only 29 %.
Total volume share of first and second tens of regions in terms of annual retail jewellery sales volume in 2013, %
29,01
TOP-10 regions, total
52,57
from 11th to 20th regions, total other regions, total
18,42
Jewellery Trade
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34 | Analytics & Statistics | JUNWEX Magazine
How Well Do We Know
Retailers Tastes? A comparison of jewellery retailers and customers opinion. RusJewellerExpert Consulting agency systematically makes polls among visitors of JEWELLERY RUSSIA PROGRAMM Exhibitions — among the trade visitors, as well as consumers. One of the main goals of this research is to get the expert analysis of how precise could be the retail sector in giving estimations based on customers tastes. During the JUNWEX St.Petersburg 2014 show which took place in February, more than a hundred retailres and about three hundred visitors
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH DIAMONDS 45% 40% 35% 30% 25% 20%
Customers’ opinion
15%
Retailers’ opinion
10% 5% 0% White gold
Yellow gold
Red gold
Silver
have been questioned. The analytical overview demonstrates how retailers ideas about the most popular type of products correspond with customers preferences for the precious metals and settings. The information given below can be used by market members as a perfect instrument to optimize their product policy.
1. DIAMOND
Therefore, the retailers’ demand forecast in reference to which type of gold will be the most suitable in combination with diamonds this year, doesn’t correspondent much with the customers’ tastes, although they are almost similar in relation to the white gold jewellery. Most of the customers believe that white gold is the best precious metal for diamonds: almost 38,2 %. Retailers forecast (42,6 %) is adequate to customers’ preferences. And almost exact understanding of the market’s situation is demonstrated by specialists if we talk about the female target group (38,5 %). The retailers demand forecast for the red gold jewellery with diamonds corresponds to the customers preferences. As for the yellow gold jewellery, the specialists’ estimation is similar to customers’ views (just 4 %). But at the same time the retailers highly underestimate the attractiveness of silver jewellery with diamonds: it is silver that has been chosen by customers (more than 15 % ) as the most preferable metal for diamonds, whilst only 7,5 % of retailers expects high demand for this type of jewellery.
Analytics & Statistics
| 35
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH RUBIES 60%
50%
40%
30%
Customers’ opinion Retailers’ opinion
20%
10%
0% White gold
Yellow gold
Red gold
Silver
2. RUBY
As we can see, the proportion between customers’ expectations and demand forecast for the gold and silver jewellery with rubies is opposite to the situation in diamond sector. As long as there’s almost an exact matching in retailers’ and customers’ views on the silver jewellery with rubies, the opinion about gold jewellery is significantly different. Mostly it lies in the estimation of popularity of yellow and red gold jewellery with rubies. The number of customers choosing red or yellow gold with rubies is quite the same (around 36 % each), however 50 % of retailers see the red gold as the best matching for the rubies, whilst only 22,2 % believe in the popularity of yellow gold jewellery with that stone. Therefore, you can see that in first case the retail overestimates the demand, and in second case underestimates it. Customers’ views and retailers’ forecast for the white gold jewellery are similar, but retailers are unnecessary optimistic: 16,7 % of them are expecting the highest demand in this sector, whilst only 13,8 % of customers prefers rubies in combination with white gold.
3. EMERALD
Rather significant difference between clients’ preferences and demand forecast in reference to jewellery with emeralds (apart from gold jewellery) was registered: the customers’ preferences are just a little underestimated by retailers (31 % to 36 % ).
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH EMERALDS 40% 35% 30% 25% 20%
Customers’ opinion
15%
Retailers’ opinion
10% 5% 0% White gold
Yellow gold
Red gold
A white gold survey showed up the maximum difference between retailers’ and customers’ opinion: almost 25 % of customers think that that is the most suitable material for emeralds, when in fact only 11,5 % of retailers expecting a high demand for this type of jewellery. That is to say, the forecast is obviously underestimated in this case. On the contrary, retail’s expectations of the red gold and silver jewellery demand look overestimated – by 8-10 % in both cases.
Silver
36 | Analytics & Statistics | JUNWEX Magazine
4. SAPPHIRE
In comparison with customers’ preferences the retail’s opinion about the applicability of white gold jewellery with sapphires and silver jewellery with the same stone looks inadequate: about 7-8 % higher for both sets. On the contrary, the anticipated demand for yellow and red gold jewellery with sapphires looks underestimated comparing to customers’ notions, about 7-8 % as well.
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH SAPPHIRES 45% 40% 35% 30% 25%
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH TOPAZES
20% 15%
50% 10%
45% 5%
40%
0%
35%
White gold
Yellow gold
30%
Red gold
Silver
Customers’ opinion Retailers’ opinion
25%
Customers’ opinion
20%
Retailers’ opinion
15%
The biggest difference between the forecast and customers’ tastes in this sector is related to silver jewellery products: a little more than a quarter of customers consider topaz as the most appropriate stone for silver jewellery and about half of retailers believe that this set exactly will be in high favour. As for the jewellery with topaz made of different types of gold, the retail specialists’ opinion is well below customers’ preferences. The demand for white gold jewellery with topazes is particularly underestimated by the retail: only 21,43 % of retailers consider this combination popular, whilst most of ultimate customers – 33,8 % - prefers it.
10% 5% 0% White gold
Yellow gold
Red gold
5. TOPAZ
Silver
PRECIOUS METAL SUITABLE FOR JEWELLERY WITH AMETHYSTS 60%
50%
6. AMETHYST
40%
30%
Customers’ opinion Retailers’ opinion
20%
10%
0% White gold
Yellow gold
Red gold
Silver
Retailers and customers perceive jewellery with amethyst, as well as with topaz, in different ways: highly overestimated demand for silver forecast is the case: some 50 % of retailers anticipate high demand on this kind of jewellery, whilst only 26,1 % of customers prefers it. The retail’s forecast for jewellery with amethyst made of different types of gold is underestimated, but to different extents. For yellow gold – by 15 %, for red gold – less than by 5 % and for white gold – just by 2,5 %. That is in fact adequate to actual customers’ preferences.
38 | Jewellery Trade | JUNWEX Magazine
Russian Jewellery Trade Club North Western Federal District 1223 shops Central Federal District 2786 shops
Urals Federal District 520 shops
Volga Federal District 662 shops
Far Eastern Federal District 286 shops
Siberian Federal District 520 shops
Southern Federal District 597 shops
I
n many countries professional associations play a very important role: similar business associations serve as a link between business and government, not just performing public functions. They are actively involved in the distribution of investments and decisions that affect the interests of the industry. Cooperating with the government, they give full support to the policy aimed at economic development. In addition, their work brings valuable to community results in such areas as professional ethics, scientific and market research, statistics and information support. The club "Russian Jewellery Trade" took on challenging mission on unification of market players in the Russian jewellery industry. It is founded by the Russian information-analytical agency "RusJewellerExpert" with the support of regional public organizations of jewellers. There are well known jewellery networks from different regions of the country among the members of the Club: "Russian Gems", "Gold of Yakutia", "Elana", "Alvamani", "Aquamarine", "Golden Rus", "Phianit", "Zlato Rossov", "Zanzibar", as well as large jewellery shops: "RossYuvelirtorg" (Omsk), "Pearl"
Today the Club is the largest professional association in the industry not only in wholesale and retail trade, but also manufacturing companies, which are interested in the formation of the modern market mechanisms and the development of business cooperation and partnership.
Official representatives of the Club are opened today in the Urals, Central, Far Eastern, Siberian and Volga federal districts, as well as in the Republic of Karelia. (Angarsk), "Russian Gold" (St. Petersburg), "Golden Rabka" and "Agate" (Ekaterinburg), Gold Infinity (Vladikavkaz), "Clementine" (Apatity), "My sun" (Khabarovsk)," Diamond Yard" (Ufa), "Diamond" (St Petersburg), "IFC Company" (Novosibirsk), "Nizhny Novgorod Jeweller" (Kstovo), "Art Salon" (Petrozavodsk), "Crystal of the Dream" and "Silver World" (Moscow), "Golden Chain" (Krasnoyarsk), "Russian Jewellery Company" (Kaliningrad) and many others. Why do Russian consumers prefer shop, which is part of the Club, and not sale outlets of competitors around? Taking care of customers, the Club supports only reliable companies. High customer service standards and offer of high quality products have become the main principles of corporate retail chain. Club membership implies the absence of false information with intention to disorient the customer, in particular offering huge discounts on initially overly inflated prices and features of inserts. Belonging to a leading industry association proves the professionalism and stability of the company, so participation in the federal action "Buy in sops of the "Russian Jewellery Trade" club provides such shop with unconditional trust of customers. It is no coincidence that the best jewellery factories and
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dealers of foreign companies cooperate with the club shops — who are the participants of major exhibitions organized by the media holding "RESTEC JUNWEX". The club developed a "Business & Leisure" program, to be visited by experts of the world's most important forums in the framework of the official Russian delegation. Each trip is a great opportunity to give a new impetus to the development of the company and also learn about the culture of another country. Italian expression, Hong Kong scale or ancient Istanbul — everyone can choose a program to suit the taste, and, most importantly, goals. Club membership has two formats, confirmed by "gold" or "platinum" cards, which is awarded to companies that consistently work in the jewellery market of Russia, and confirms the importance of the enterprise and its belonging to the elite professional associations. "Gold Card" proves higher specialist status of the holder and ensures comfortable working conditions in all exhibitions of media holding "RESTEC JUNWEX", as well as various bonuses by PH "Jewellery Russia" and the Training centre "JUNWEX". "Platinum" card proves VIP— status of the company under the Uniform exhibition program "Jewellery Russia" and is issued to the "gold" card holders, stable on the industry market for at least three years. The decision on the issue of "platinum" card shall be made by the Board of the Club. The owners of this card are associated members of the International Jewellery Confederation CIBJO. This is a personalized document with identification number, which has a high degree of protection against forgery. "Gold" and "platinum" cards are subject to annual re-accreditation. Another successful project of Club — Annual federal competition "Reliable Partner". Each participant of the exhibitions of the "Jewellery Russia" program may provide recommendation to the organizing committee of ten trading partners, proven excellent join work. Companies with the highest number of votes from different suppliers become winners. "Reliable Partner" is a competition in which it is necessary to go rounds and fight for places. It is enough to be a conscientious wholesale buyer and to have as many vendors willing to vote for you as possible. Awards ceremony is traditionally held as part of the September exhibition "JUNWEX Moscow." The winners of the contest "Reliable Partner 2012" 1. ZOLOTOY AZHUR (Mineral 1, Vladivostok), network of shops 2. NORIS (Kamensk-Uralsky), network of jewellery salons 3. OLIVIN (Barnaul), network of shops 4. MERKURY Trade House (Porkhov) 5. DEALER JEWELLER (Makhachkala, Dagestan Republic), network of shops 6. RUSSKOYE ZOLOTO (Protvino), network of shops 7. ROSSYUVELIRTORG (Omsk), network of shops 8. TRITON (Yakutsk), network of shops 9. KRISTALL jewellery house (Lipetsk), network of shops 10. SAMOTSVETY (Belgorod), network of shops For the first time salons of hour trading participated in the contest, the leaders of which were: 1. TC "Slava" (Moscow) 2. TD "Polet" (Moscow) 3. Hour design bureau Timelounge (Moscow)
RUSSIAN JEWELLERY TRADE Club RUSSIAN JEWELLERY TRADE Club is the biggest business association at the Russian jewellery market uniting more than 6500 wholesalers and retailers from 806 cities of Russian Federation.
BUSINESS ACTIVITY Buy at the stores of RUSSIAN JEWELLERY TRADE Club — Integrated corporative action for strengthening Club members’ competitive ability. Business Contacts Exchange — Establishment of business links between manufacturers and trade companies to arrange active supplies to the jewellery stores of Russian Jewellery Trade Club. Regional project — Russian Jewellery Trade Club supports regional shows within the framework of Jewellery Russia Exhibitions in Ekaterinburg, Kazan, Kalinigrad, Kostroma, Makhachkala, Perm, Samara, Yaroslavl. The main purpose is to represent the interests of the Club members in regions by developing and maintaining customers loyalty.
COOPERATION WITH RUSSIAN JEWELLERY TRADE CLUB Buyer’s Programme — delegations of trade visitors; Direct-marketing — a program specifically designed to build the booth traffic; Match-making service — Business Contacts Exchange — assistance in scheduling the business meetings. Tel./fax: +7 (812) 235 83 83 E-mail: info@jewellerclub.ru | www.junwex.com
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