Articles and News

New York, NY—Earlier this year, industry consultant Ben Janowski penned a blog identifying 10 key trends happening in the industry. With a keen eye of more than 35 years’ observation in the retail, wholesale, and diamond industries, Janowski pegs these as the issues that are shaping and will continue to shape our business. The Centurion caught up with Janowski for a short video interview highlighting some of these key issues. Click here to watch.

Here is a summary of the trends Janowski sees. Click here to read each blog post in its entirety.

1. Growth of recycling. For both diamonds and precious metal, the allure continues. For diamonds, it’s highly profitable for jewelers, and for metals, it’s appealing to environmentally conscious consumers.

2. Growth of man-made diamonds at retail. Synthetic diamonds aren’t new news, but Janowski believes a paradigm shift is coming where they are accepted at retail. Consumer acceptance of high-low shopping in all categories, along with mixes of things like silver plated with platinum, and costume jewelry mixed with fine jewelry, means consumers will accept synthetic diamonds readily (with disclosure), he says. And, he argues, in many cases, they may come to prefer a better-quality manmade stone to a lower-quality natural stone.

3. Top-Bottom mirror of society. The bifurcation of haves and have-nots is a global economic issue, not solely an American one, and the warp speed at which technology is advancing means more routine, repetitive tasks that once required a human to perform can now be automated—putting more low-skilled workers out of work and creating a potential permanent underclass of un- and under-employed.

4. No capital, no business. Fewer and fewer banks are willing to finance the diamond industry, meaning large companies will need to find alternate sources of capital, perhaps through hedge funds. Smaller companies will do as they’ve always done—put up personal collateral or even use credit cards.

5. New designers and manufacturers. Whether it’s a new way to use classic design (David Yurman), a new retail model (Blue Nile), a new way to customize jewelry (Pandora) or newly aggressive marketing (Alex & Ani), the same-old, same-old isn’t going to work anymore.

6. The evolution of retail channels. It goes without saying that the Internet is the single greatest disruptive force in retailing of all time. Successful retailers have learned to harness it, jewelers have discovered that yes, people will buy fine jewelry online, and it remains the fastest-growing retail channel for jewelry.

7. Millennials. Jewelers for years rode the wave of Boomer shoppers, but Boomers grew up in an unparalleled time of economic growth and expansion. Millennials, on the other hand, have grown up in a time of instant information and a lot of global and domestic chaos. They're not young Boomers, they're a different breed altogether. They question everything. They’ve delayed marriage and childbearing, and while love and commitment are timeless, they’ve redefined what can symbolize love.

8. Maturing of brands. A brand cannot be a name without something substantive behind it. Local jewelers have always enjoyed a good brand reputation in their own market, and national designer brands have enjoyed varying degrees of success. But the key behind it is an great idea even more than a great product.

9. Experientialism and environmentalism. Luxury is less about “stuff” and “bragging rights” and more about th eexerpiece, appreciating tradition, the savoring of the special, bespoke, artisanal, unique, and precious. It’s also about the memory of that experience and the ability to tell a story about it to friends and family. But consumers will not stand for desecration of the environment in pursuit of luxuries, so any luxury good has to be able to exist without causing damage to the environment or to those who create it in any way.

10. The end of growth? We’re seeing an increase in consolidation, and growth is coming from more dollars, not more units. Growth as we knew it in the past may very well never return; the industry needs to adjust to the new paradigm.