The Jewelry District JCK

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates talk holiday predictions, the theme of which is cautious optimism. They discuss inflation and its affect (or lack thereof) on spending on jewelry, depending on strata. (The wealth divide is also the dividing line for this consideration.) The hosts also talk about Rolex’s recent announcement that they are entering the preowned watch space, and the questions this brings up about the secondhand marketplace. They also note a slowing down in the colored diamond market.Show Notes01:30 Educated guesses about the holiday season03:40 Inflation concerns09:15 Rolex launches certified pre-owned program19:30 Colored diamond category slows downEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: @jckmagazine, jckonline.comShow RecapModerate Hopes for the HolidaysAs they look ahead and talk about the holidays. When Victoria spoke to Abe Sherman at Buyers Intelligence Group (BIG) who said, “I’ll tell you in ten days.” For jewelers, things don’t come into focus until the very last moment. They suspect this holiday won’t be as strong as last year. Most of those who Rob has spoken to think that even if it is a few points lower than last year, they could still characterize this year’s holiday sales as a success.When Signet announced their results, Gina Drosos gave the reasoning that last year, many did their shopping early because of supply chain worries. This year, that doesn’t seem to be the case. October had been down, but things are picking up closer to the holiday. The last two years are such a high base. People don’t necessarily expect those levels to continue, but still hope for a successful year.Effects of InflationThough inflation has calmed, it is still higher than we are accustomed to. This affects how the middle class spends on jewelry. Whether it gives the wealthy pause about how they spend, Victoria is not sure. Increasingly, those markets are bifurcated: the upper class does not have to make adjustments to their spending the way the middle and lower-income shoppers do when economic concerns come up.The pattern of the last several years has been gains on the higher end and not as much on the lower and middle. During the pandemic, there were gains across the board. Now, we’re going back to the pre-pandemic pattern. Signet has noted that the gains they are seeing are at the high end, or “accessible luxury.”Something jewelers learned during the pandemic was to up their digital game. Rob has noticed a lot of jewelers putting out interesting content on TikTok. This is the way of the future when it comes to reaching buyers. Jewelers have also used YouTube to tell their store’s story in an appealing way. Rob comments on the organic nature of TikTok. It feels personal. There’s a strange charm to it being just one person with their phone.Rolex Enters the Pre-Owned SpaceOn December 1st, Rolex announced they were formally entering the preowned space. It is launching a program in Europe through Bucherer. Time will tell when it will come to the US. Bucherer is a Swiss retailer that has a presence in the US already through Tourneau, and are established in the secondhand space.A few big questions are, who is setting the pricing,

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates look ahead into 2023. The hosts, noting that it's folly to predict more than one year ahead, make some educated predictions for the year including: the end of the pandemic, which might bring an end to some new customs while others continue to be new norms; a shakedown in the lab-grown sphere resulting in many leaving the space as prices fall below profitable levels; growing demands for transparency of sustainability claims, including both consumer demand and legislative standards; and an increased presence of AI in the different aspects of the jewelry business.Sponsored by De Beers: institute.debeers.comShow Notes02:45 Looking ahead into 202307:30 Lab-grown diamond shakeout10:20 New transparency laws20:00 How AI is changing the industryEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (jckonline.com); @jckmagazine (https://www.instagram.com/jckmagazine/); institute.debeers.com (http://institute.debeers.com/)Show RecapLooking Ahead (But Not Too Far)The pace of change is so quick, and unexpected events—like the pandemic—make looking further than one year into the future a fool’s errand, so Rob and Victoria focus on the year at hand. Victoria found a list of predictions for 2023, one of which these is the end of the pandemic, which experts estimate will happen sometime in 2023.Some trends brought on by the pandemic are likely to remain—such as how it pushed businesses to take a digital-first approach—but others—like masks and distancing—may fade away. Jewelry companies seem much healthier now. They have a reserve of cash and goodwill, better consumer data, etc. Despite global economic factors like inflation, there is optimism.Lab-Grown Diamond ShowdownRob predicts that there will be a shakeout in the lab-grown diamond sector this year. Prices are falling, and not everyone can make the business profitable that way. Days of large margins are petering out, though demand is still strong. Rob foresees that lot of people will leave this market. The natural diamond industry is also dealing with challenges, falling prices. Lab prices are falling because they too are priced based on Rapaport, so when natural diamond prices fall, lab-grown prices follow suit. It has become a race to the bottom, and the rapid growth in this category is about to experience some upheaval.Demands for Transparency in Sustainability ClaimsGreenwashing was put to the test in 2022. People want proof you’re doing what you say. This will continue in 2023. Victoria spoke to a few researchers in this field. One was a Harvard student with a focus on sustainability science. She spent time and research poking holes in those sustainability claims different companies make. JCK published a story on how to create a sustainability report last year. This kind of transparency of reporting will soon become law. It has passed in the EU already. This will apply for public as well as private companies. These laws apply to larger companies that do business in Europe too.For a long time, the wide world of luxury brands got away with being very opaque. There was a mystique around how they did business. Gen Z will ensure that words and trust are not enough.