Rapaport Magazine - May 2020

VOL. 43 NO.5 MAY 2020

DAWN OF A NEW ERA How to survive in a post-coronavirus world

ANALYS I S

RE TA IL

LEGACY

G EM STO NE

WILL ALL MINING COMPANIES BE ABLE TO RESUME OPERATIONS AFTER COVID-19?

US JEWELERS SHARE THEIR STRATEGIES FOR COPING WITH THE SHUTDOWN

EXPLORE THE ENCHANTING LALIQUE COLLECTION AT THE GULBENKIAN MUSEUM

A DRIVE FOR QUALITY IS ONLY ONE OF THE REASONS PEOPLE ARE RECUTTING GEMS

CONTENTS VOL. 43 NO.5 MAY 2020

RETAIL

40 PAGE

24 RETAIL PROFILE Both the designers and their jewelry get the spotlight at Twist in Portland, Oregon, and Seattle, Washington.

26 RETAIL INSIGHT In the midst of a pandemic and facing a global financial recession, PR firms are emphasizing digital solutions for jewelry businesses.

28 RETAILRAP The coronavirus has changed the face of the market, with many retailers struggling to stay afloat.

34 PAGE

32 JEWELRY

CONNOISSEUR

IN-DEPTH

Eye motifs, long used to ward off evil, are still looking good in today’s collections.

12 NEWS India considers freezing rough imports; Baselworld future uncertain; Movers & shakers.

16 NEWS ANALYSIS Many mining companies that have halted production during the coronavirus crisis will find it difficult to resume operations amid their struggles with debt.

COVER

18 IN THE SHADOW OF COVID-19

With businesses closed around the world, the ‘non-essential’ jewelry industry is struggling to keep its workers employed, its products moving, and its spirits up.

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STYLE & DESIGN

DIAMONDS.NET

34 STYLE Designers are experimenting with unusual settings in their creations.

37 EDUCATION From Belle Époque to contemporary artistry, a jewelry history course from Christie’s Education breathes new life into the iconic works of eras past.

display at Portugal’s Calouste Gulbenkian Museum.

43 ESTATE JEWELS Third-party reports can benefit both dealers and customers. Professional appraiser Edward Lewand explains how.

44 COLORED

40 LEGACY A stunning selection of works by René Lalique is on

47 TRADE REPORT Further shutdowns hit industry.

48 USA 52 INDIA

GEMSTONE

53 ISRAEL

Recutting a gem can intensify its color, add value, and make more efficient use of supply.

54 ANTWERP 55 HONG KONG 56 DIAMOND DATA 61 PRICE LIST

38 DESIGNER Trained in interior design, New York-based Michelle Fantaci brings a playful refinement to her jewelry.

MARKETS & PRICING

73 RAPNET PRICE LIST

24 PAGE

78 DIRECTORY 82 CALENDAR 84 THE FINAL CUT

N OTE FROM TH E P U B L I SHE R W H AT C A N T H E PA N D E M I C T E A C H U S ?

John Costello PUBLISHER

IMAGE: BEN KELMER

J O H N .COST E L LO @ D IA M ON DS.NET

H

ow we manage disruption and upheaval will always be a defining moment. And the lessons we learn during these challenging times will be vital to our future longevity.

What we have experienced as an industry over the last several months is unprecedented. Now that we are slowly emerging from the peak of this crisis, it is time to understand what the COVID-19 pandemic can teach us.

One thing seems for sure: We are not going to snap straight back to normality. The production and distribution of a vaccine is still some way off, and in the meantime, we will most likely continue operating in the shadow of this virus into 2021. This will have immense repercussions for our industry. International travel will be affected for a long time, and there is no guarantee that the major trade shows will return next year. We therefore need to reassess and adjust.

Each business along the lengthy pipeline of the diamond and jewelry sector needs to consider how it can recalibrate in order to minimize the negative impact of the situation in which we find ourselves. How can we build resilience and effectiveness into our daily operations to cope with future — and most likely inevitable — shocks? These could emanate from another outbreak of the coronavirus or a global financial crisis. No matter the cause, we should all be looking at how to make our business models more robust and flexible.

There is little doubt that one of the greatest impacts this situation will have is to force businesses to broaden their digital presence and deliver complementary online and offline experiences for customers. The omni-channel approach has been gaining traction for retailers, but needs to be embraced on a broader basis.

Being able to engage with our customers in a digital environment will be key to cushioning the blow of any future lockdowns.

The overall lesson the coronavirus should teach us is that we must be able to adapt, and even thrive, during times of disorder.

DIAMONDS.NET

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R E TA I L R A P

How are retailers responding to the

C O R O N AV I R U S CRISIS? The COVID-19 outbreak has changed the face of the market, with many jewelers struggling to stay afloat. Here, US store owners discuss how they’re handling their business, and what’s next.

B Y L E A H M E I R OV I C H

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DIAMONDS.NET

DAVID R OTENBER G

OWNER, DAVID CRAIG JEWELERS NEWTON, PENNSYLVANIA STAFF: 8

What are you doing with your staff during the coronavirus crisis?

I have been bringing staff members in two at a time for about four hours a day, three times a week, organizing our inventory and back lots. I rotate them in shifts. I’ve offered them the option of vacation, but most have chosen not to take it, picking up hours when they can. When they’re not working, they are primarily on unpaid leave, and all have applied for unemployment benefits. We’re lucky, because we also do appraisals, so when we get a seizure [of jewels from customs authorities and the pieces need appraising,] it gives us a little more work and boosts hours slightly.

Have you applied for government financial aid?

I’ve filed for paycheck protection and disaster relief, but I haven’t gotten a response yet. Unfortunately, this is difficult because documents need to be verified through the banks, and most banks don’t want to do the work. One bank I spoke to was not receptive at all, but another bank I do business with had me send forms to

“I’VE OFFERED [STAFF] THE OPTION OF VACATION, BUT MOST HAVE CHOSEN NOT TO TAKE IT”

them. But the government is not just sending you a check.

They’re dealing with the banks you appoint, and if those banks decide they don’t want to get involved because government regulations are too hard for them, they’re going to send you away. You have to find a bank willing to serve as a middleman.

What’s your strategy for bouncing back when it’s all over?

I don’t want to spend a lot of energy on a grand reopening. I don’t think that would be appropriate, and given my location, even if they announce today that the ban is lifted, I don’t see tons of people coming by the end of the week. So I think initially I’m just going to do a slow and steady return. I think we’ll open for business again, we’ll get our employees back up to speed working, and we’ll try to do a big catch-up on all the work that hasn’t been getting done, sort of do a slow build, and increase the speed if we see we’re going to get a good customer response.

DAVID L A MPERT

CEO, LESTER LAMPERT CHICAGO, ILLINOIS STAFF: 22

What are you doing with your staff during the coronavirus crisis?

We are not letting anybody go, and we are continuing to pay the employees. We haven’t made any final decisions on whether this time will go toward their paid time off or not. This has been explained to our staff, and they are all very understanding and appreciative.

How are you keeping the relationship going with your customers?

This has been tricky. What I’ve done is download each salesperson’s sales from within the last four years (as a starting point) and asked them to personally reach out to clients in the way they feel is most appropriate (text, email, handwritten note). The message is basically: Just touching base to let you know we’re thinking about you. Stay safe, and if you want to connect, we can still do so.

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What is your strategy for bouncing back when stores are open again?

From experience, like after 9/11, what we saw was that people wanted to get back to a “normal” life.

That meant celebrating, buying gifts and enjoying life again. I think a lot of people will feel like they have some money from not going on a trip or...from not going out every night. This found money may become jewelry purchases. ▶

DIAMONDS.NET

MAY 2020 29

R E TA I L R A P

M ARK ( AND MONIKA ) CLODIUS PRESIDENT, CLODIUS & CO. JEWELERS ROCKFORD, ILLINOIS STAFF: 15

What are you doing with your staff during the coronavirus crisis?

Our state shutdown occurred on March 21, and having seen the trends, we furloughed the entire staff, including ourselves, so that all might apply for unemployment.

Have you applied for government financial aid?

Yes, around March 15, I contacted our bank, accountant and the Small Business Administration (SBA). The SBA had a loan program available, and it took me about 14 hours to fill out the forms for the loan…only to have that program be withdrawn.

Since then, we have applied for every form of relief available, such as the emergency Economic Injury Disaster Loan (EIDL) program, [which was meant to offer] $10,000 emergency funding within three days [of applying], with up to $500,000 available on loan. We had our application filed the day after the program was announced, and the SBA emailed that we had successfully applied. It’s now been three weeks, and our SBA contact says the maximum now available is only $25,000, but they have no idea when any funds will become available. The promises made by our government have mostly turned out to be lies.

What lessons have you learned from the crisis?

Conservative fiscal management and keeping “emergency” funds are the only reason we have not missed mortgage, tax, insurance, utility and payroll obligations.

What is your strategy for bouncing back when stores are able to open again?

A M ANDA COLE M AN-PHELPS OWNER AND PRESIDENT, NELSON COLEMAN JEWELERS TOWSON, MARYLAND STAFF: 19

OWNER, JEWELRY BY DESIGNS WOODBRIDGE, VIRGINIA STAFF: 10

What are you doing with your staff during the coronavirus crisis?

We were able to sell online, plus we had shipments still coming in and needed staff to help ship out, so we did a bit of a combo with our team. Initially, from March 12, we gave employees the option of working from home. We didn’t lay anyone off initially, so that they were eligible for Emergency Paid Sick Leave (EPSL) under the Families First Coronavirus Response Act (FFCRA). We did a lot of research on this and how it may affect them, and what the best choice was for the team financially, as well as for their health. We technically didn’t make our first layoff until April 15. Our management team is the only group we kept on, and we’re just starting to bring some people back based on their job description and our needs at the store.

Have you applied for government financial aid?

We applied for everything: state funds and grants, the Small Business Administration emergency relief loan, and the Paycheck Protection Program (PPP). We didn’t know when funds would dry up, and we wanted to make sure we could get something to help us get over the hump.

How are you keeping the relationship going with your customers?

We certainly didn’t want to look like opportunists in this crisis and try to make light of the fact that people are dying every day, so we chose our marketing carefully and created campaigns centered on what people need at this time.

Figuring out ways we can give back to the community has been a focus of ours.

Since we are closed to the public, we are trying to have the American Red Cross come do a blood drive in our parking lot. Every little bit helps.

What lessons have you learned from the crisis?

We intend on a full customer relationship management (CRM)/digital-media push and a mailer to invite people back into the store. We will be emphasizing our gold and jewelry buying and service capabilities.

I’ve learned a lot of lessons: You can only control so much, and you need to be okay with that; stay focused and stay empathetic; your team is everything, and without a good team, you can’t survive; research the heck out of anything and everything that you don’t know or understand in a crisis — knowledge is power, and your ability to pivot and survive is built on knowledge; utilize your resources, mentors and advisers; and don’t be afraid to ask for help.

How do you see the crisis changing retail?

What is your strategy for bouncing back when stores can open again?

I believe it will affect the casual-gift and selfpurchase market negatively. In my experience, women are often more innately fiscally conservative than most men. This event has and will continue to shake core confidence levels, and that will show itself in decreased self- and luxury purchases.

We need to make sure what we do is affordable, and we’re operating with this new normal. We need to keep our team and customers safe, and make sure we’re taking measurements to do that. Pivot with our marketing, how we interact with clients but in store and virtual. Stay connected to our client needs, keep a close eye on cash flow. Listen to what our team is saying and what our customers are saying. It’s a holistic strategy.

Have you implemented any special initiatives you didn’t have before?

We’ve started a number of them, including creating digital coloring books for kids home from school, as well as some other fun activities for parents. Free earrings and then pearl necklaces to anyone who is working on the frontlines in hospitals to remind them that they are truly making a difference and to keep going. Mail-in repair options for people who still need that service; socks that you can purchase, where we donate half to the American Red Cross; informative video and also interactive live video while you’re stuck at home; and getting our entire inventory online.

STEWART BRANDT

OWNER, H. BRANDT JEWELERS NATICK, MASSACHUSETTS STAFF: 3

What are you doing with your staff during the coronavirus crisis?

JOHN HENNE

OWNER AND PRESIDENT, HENNE JEWELERS PITTSBURGH, PENNSYLVANIA STAFF: 35

What are you doing with your staff during the crisis?

I have had to lay them all off.

We furloughed the entire team, giving them two weeks’ pay and continuing benefits.

How are you keeping the relationship with your customers going?

How are you keeping the relationship going with your customers?

I’ve been sending emails, calling them and posting on social media.

We are doing online sales and posting on social media. We hope to bring the team back shortly after we receive the Paycheck Protection Program, and then plan to reach out to our customers just to check in, to see how they’re doing and if there is anything we can do for them. Not to sell them anything.

What lessons have you learned from the crisis?

I’ve learned to always maintain three months of expenses, and how messed up the US government is.

Have you implemented any special initiatives you didn’t have before?

I’ve created an eBay store, cleaned up my website, and am posting more to my Etsy shop.

DEBBIE FOX

OWNER, FOX FINE JEWELRY VENTURA, CALIFORNIA STAFF: 15

What are you doing with your staff during the coronavirus crisis?

I have furloughed all my staff, but that is being treated the same as a layoff in California.

Have you applied for government financial aid?

We are trying to apply for the Paycheck Protection Program, but it is super frustrating!

How are you keeping the relationship going with your customers?

We are using social media, we’ve sent out an e-blast, and we wrote cards to our top customers. We also installed webchat on our site and are getting requests from around the country. While I’m glad to have webchat for our clients, the major portion of the inquiries just take time and don’t produce revenue.

What is your strategy for bouncing back when stores can open again?

We’ll continue doing the things we’ve always done, putting our customers and our people first. We’ll make sure our team is as safe as possible. We’ll make sure we keep our clients safe and provide alternative ways to do business with us. We need to think out of the box and be creative. We’re also exploring a new CRM software package that will allow our team to reach out to customers from their phones and iPads more easily.

How do you see the crisis changing retail?

I think we need to be creative in how we can still give the personal touch when working with customers, but not always doing it face-to-face.

I think there will be a stronger sense of community that comes out of this and a desire to support local businesses. ◼

“WE’LL MAKE SURE WE KEEP OUR CLIENTS SAFE AND PROVIDE ALTERNATIVE WAYS TO DO BUSINESS WITH US”

What is your strategy for bouncing back when stores are open again?

I don’t think there will be a “bounce back” for fine jewelers. We will watch carefully and shift some advertising dollars to gold buys, repairs and redesigns of clients’ jewelry.

Have you implemented any special initiatives you didn’t have before?

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Other than the webchat, I’m improving our site and getting more products on it, which I never had time to do before.

How do you see the crisis changing the way things are done in retail?

Eventually, things will normalize, but with a permanent acceleration in online activity, including inquiries and sales.

“WE ARE USING SOCIAL MEDIA, WE’VE SENT OUT AN E-BLAST, AND WE WROTE CARDS TO OUR TOP CUSTOMERS” DIAMONDS.NET

MAY 2020 31

THE FINAL CUT

KIDS WHO ROCK Three junior gem-lovers share their knowledge – and enthusiasm – with Rapaport Magazine.

By Rachel Beitsch-Feldman

NAM E : KIRA MEIR OVIC H AGE : 13 CIT Y: MOD I’IN, ISRA EL What first got you interested in gemstones? gemstones, My mom works as a reporter on diamonds and nds that were diamo the all about and I love hearing her stories d to do some research decide I then and ns, auctio at sold and found in mines I would spend is...and tone myself. I would look up what each month’s births Universe, Steven show the like also I hours looking up facts about gemstones. up all the looked I so ones... gemst after named are and most of the characters interest grow. stones to see what they were, and that made my them? about more out find to use you did ces resour What to learn more facts.

Google on ch I asked my mom a lot, and I also did resear gemstones. I also and y geolog on site kids’ phic There was a National Geogra which talks about Finlay, ia Victor by y Histor Secret A : Jewels read the book collect different gemstones, the Hope Diamond and different ways to mine or I would love to have a sold. ones and some of the most expensive gemst from Israel to find out do could I m progra g website for kids, or a learnin more about them.

What’s your favorite gemstone, and why? se I love the way they look, I have two: opal (regular and dragon opal), becau love that there are so many I and them, h throug with all the colors that shoot different. The other stone still but r, simila all are that opals of different types the color blue. love I is aquamarine, because it is my birthstone, and d? learne you’ve facts What are some interesting gemstone comprised of are opals that Also, rivers. in ires They used to hunt for sapph with silica seeps into cracks in tiny silica spheres that are formed when water the Hope Diamond. the earth’s crust. And about the curse surrounding grow up? you when gems Do you think you’d like to work with s stones to studie who ogist gemol a either e Yes, I would like to becom their attributes...or and made, were they how from, are they determine where them. from y a jeweler so I can make (and wear) beautiful jewelr

NAME : ELIANA KUPERMAN AGE : 8 CIT Y: BALTIMORE , MD What first got you interested in gemstones?

I found a book on gems and minerals at my school library.

They’re really pretty and cool, and the way they form is really interesting.

What resources did you use to find out more about them?

I read books over and over again. I looked at a ton of pictures. And I went to the gems and geology exhibit at the Smithsonian Museum of Natural History.

What’s your favorite gemstone, and why?

I have two favorites: I love agate because it has interesting patterns, and I love sapphire because it’s my birthstone.

What are some interesting gemstone facts you’ve learned?

Calcite grows in stalactites. And it glows in ultraviolet (UV) light. And our teeth also glow!

Do you think you’d like to work with gems when you grow up?

No. I know more about marine biology.

NAM E : Y. KAM INET SKY AGE : 10 CIT Y: JERU SALE M, ISRA EL What first got you interested in gemstones?

My mom is a gemologist. She has a bunch of gemst ones, and I liked the colors and shapes.

What resources did you use to find out more about them?

Whenever I had time, I would usually stop to exami ne my mom’s stones, and liked looking through my mom’s gem books.

What’s your favorite gemstone, and why?

I like tiger’s eye and amethyst. I like the effect in tiger’s eye, and the way the colors in amethyst mix.

What are some interesting gemstone facts you’ve learned?

About how they form underground over many years.

Also the different types of stones.

Do you think you’d like to work with gems when you grow up?

Not really, because there are other things I’m more interested in, but I still really like them.

START T H EM YOUNG SMITHSONIAN MUSEUM OF NATURAL HISTORY

NATIONAL GEOGRAPHIC KIDS

GEMKIDS

Located in Washington, DC, the museum’s Geology, Gems & Minerals section is kid-friendly and home to a wide array of stones, including the famous Hope Diamond. With the coronavirus keeping us inside, there’s also a virtual tour. naturalhistory.si.edu

The junior edition of National Geographic magazine has a fun unit about gems on its website. Kids can read up on different stones and the science of mineralogy, perform experiments, and even take a gemstone personality quiz. kids.nationalgeographic.com/explore/science/gemstones

This interactive website by the Gemological Institute of America (GIA) offers colorful pictures, games, a ”Jewelry Time Machine“ that explores jewelry through history, and a wealth of other information about gems and gemology. gemkids.gia.edu

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DIAMONDS.NET

IMAGES: SHUTTERSTOCK

Here are some handy gemology resources for children (and adults) who want to learn more: