Friday, October 29, 2010
Tuesday, October 12, 2010
Luxury Brands Recognize Vast Potential in India
The diamond industry in particular can attest to changes underway across India as it evolves past just being a polished sourcing center and grows into a successful marketplace for luxury goods. The Confederation of Indian Industry (CII) held a luxury goods forum yesterday meant to address ways in which luxury firms can transform and grow their market share as consumerism increases.
In a presentation shared by A.T. Kearney, titled Indian Luxury Market, the group contended that India's luxury marketplace represents $4.76 billion today, but has the almost immediate potential to tap another $3 billion to $3.5 billion. More importantly, A.T. Kearney found a major component of this market is for jewelry. The group's principal Neelesh Hundekari said that the mature luxury markets have reached a plateau, but the middle class in India -- with an annual household income of around $23,000 (Rs. 10 lakhs)-- represented a vastly untapped market.
"Another interesting fact emerges from this study is that lndian luxury market is 60 percent dominated by men, if we remove the jewelry," Hundekari said. "The hindrances are supply-chain constraints...and scattered customer. What is needed is micro segmentation of the customer. What is also needed is getting the real estate component with local knowledge of real estate and right pricing for the Indian customer to hit it off the right way."
Jyotiraditya Scindia, India's minister of state for commerce and industry, urged foreign designers to establish manufacturing hubs in India and make it the gateway to other parts of the world for their products, according to a closing statement released by CII.
Scindia (pictured at the lectern) explained that the potential for growth in the luxury goods sector exists because consumers are hungry for products, there is continued high income growth in tier I, II and III cities, and credit and leverage in finance is more readily available.
CII's committee on retail chairman, Thomas Varghese, who is also chief executive of Aditya Birla Retail Ltd., said one challenge marketers face is in how best to understand the psyche of India's luxury customer. "This understanding will drive the product and service offerings, formats and business models. On one hand, we have new customers emanating from the middle class backgrounds whose higher disposable incomes may not necessarily translate in to higher spend.
"We need to induce trials, educate and create awareness about various luxury brands, products, services at suitable price points. On the other hand, we need to ensure that the expectations are well catered to in terms of range and freshness of merchandise. Also infrastructure development, regulatory framework (especially FDI), fiscal incentives and suitable employee skill sets are also challenges," Varghese stated.
The aspiring middle class, tier II and III cities in India represent an emerging population that represent the brink of explosive growth, noted Sanjay Kapoor, managing director for Genesis Luxury Fashion Pvt. Ltd. "Luxury goods awareness is growing exponentially. The mindset of the discerning customer is changing slowly to suit our lifestyle."
One of the sessions during this luxury forum, centered upon the unique Indian luxury consumer, and trends in luxury retailing in a market where growth of high-net-worth individuals is astounding and consumers are increasingly exposed to international firms offering luxury goods.
John Hooks, deputy chairman of the Giorgio Armani Group, said that India must remove trade barriers on luxury products and marketers must penetrate the marketplace with new, innovative campaigns that resonate with consumers.
The forum touched upon successful business plans that have managed to succeed in India and ensured price competitiveness for luxury goods compared with main competitors in Dubai and Singapore.
Marco Bizzarri, chief executive of Bottega Veneta, indicated that "super specialization" was paramount for brands in India to succeed and maintain identity given how local competitors use regional flavors to suit local tastes.
In a presentation shared by A.T. Kearney, titled Indian Luxury Market, the group contended that India's luxury marketplace represents $4.76 billion today, but has the almost immediate potential to tap another $3 billion to $3.5 billion. More importantly, A.T. Kearney found a major component of this market is for jewelry. The group's principal Neelesh Hundekari said that the mature luxury markets have reached a plateau, but the middle class in India -- with an annual household income of around $23,000 (Rs. 10 lakhs)-- represented a vastly untapped market.
"Another interesting fact emerges from this study is that lndian luxury market is 60 percent dominated by men, if we remove the jewelry," Hundekari said. "The hindrances are supply-chain constraints...and scattered customer. What is needed is micro segmentation of the customer. What is also needed is getting the real estate component with local knowledge of real estate and right pricing for the Indian customer to hit it off the right way."
Jyotiraditya Scindia, India's minister of state for commerce and industry, urged foreign designers to establish manufacturing hubs in India and make it the gateway to other parts of the world for their products, according to a closing statement released by CII.
Scindia (pictured at the lectern) explained that the potential for growth in the luxury goods sector exists because consumers are hungry for products, there is continued high income growth in tier I, II and III cities, and credit and leverage in finance is more readily available.
CII's committee on retail chairman, Thomas Varghese, who is also chief executive of Aditya Birla Retail Ltd., said one challenge marketers face is in how best to understand the psyche of India's luxury customer. "This understanding will drive the product and service offerings, formats and business models. On one hand, we have new customers emanating from the middle class backgrounds whose higher disposable incomes may not necessarily translate in to higher spend.
"We need to induce trials, educate and create awareness about various luxury brands, products, services at suitable price points. On the other hand, we need to ensure that the expectations are well catered to in terms of range and freshness of merchandise. Also infrastructure development, regulatory framework (especially FDI), fiscal incentives and suitable employee skill sets are also challenges," Varghese stated.
The aspiring middle class, tier II and III cities in India represent an emerging population that represent the brink of explosive growth, noted Sanjay Kapoor, managing director for Genesis Luxury Fashion Pvt. Ltd. "Luxury goods awareness is growing exponentially. The mindset of the discerning customer is changing slowly to suit our lifestyle."
One of the sessions during this luxury forum, centered upon the unique Indian luxury consumer, and trends in luxury retailing in a market where growth of high-net-worth individuals is astounding and consumers are increasingly exposed to international firms offering luxury goods.
John Hooks, deputy chairman of the Giorgio Armani Group, said that India must remove trade barriers on luxury products and marketers must penetrate the marketplace with new, innovative campaigns that resonate with consumers.
The forum touched upon successful business plans that have managed to succeed in India and ensured price competitiveness for luxury goods compared with main competitors in Dubai and Singapore.
Marco Bizzarri, chief executive of Bottega Veneta, indicated that "super specialization" was paramount for brands in India to succeed and maintain identity given how local competitors use regional flavors to suit local tastes.
Monday, May 17, 2010
Does the thought of purchasing a diamond ring overwhelm you? Here are some buying tips to help you...
A jeweler tells you, "This is a blue-white diamond."
This is a very old term that is now carefully controlled by the FTC because of misuse and scams in the past. The dealer will probably tell you that it is a better diamond, but actually it is just the opposite. Blue-white refers to the fluorescence that results in natural light, which contains ultraviolet wavelengths. This blue fluorescence actually makes a colorless diamond look a little oily or milky in sunlight and decreases its value. However, for stones with a faint yellow color, a moderate amount of fluorescence can make it look whiter because it cancels some of the yellow.
The tag only states the CTW
Many jewelry tags only list the "carat total weight" of diamonds in a ring and do not list the center stone separately. You can't compare prices with another ring if you don't know the weight and quality of the main diamond. This is crucial because one large diamond is worth much more than 6 small ones that total the same weight. For instance, if you have one G/VS2 diamond weighing 1.00 carat, it might be worth about $5,500. But 10 smaller G/VS2 diamonds totalling 1.00 carats might only be worth about $1,800. Big difference! And normally, smaller diamonds at such stores are much lower quality than this example, so the actual ring would be worth still less.
Huge Sales at Jewelry Stores
If you see a sale price in the newspaper, don't fall for it. You will probably pay much more than the regular price at an honest dealer. We know of a major store in Florida that marked gold chains up from $100 cost to $500 regular price, then marked them half-price during a sale. That means the customer paid $250, thinking it was a great price. This same thing happens with diamonds on sale. Liquidation and "going out of business" sales are usually no different. We heard of one store in New York City that has been going out of business for 15 years.
The advertised diamond is sold when you get there
This is an old trick still used by many stores. Although outlawed by the FTC, it still happens because it is hard to monitor 25,000 stores in the U.S. Bait-and-Switch is when a store advertises a diamond at a great price, but when you arrive to buy it, it's already sold. They usually offer to show you something much more expensive. They bait you with the fake item, then switch you to something at a high profit.
You could avoid all these problems by working with a Diamond Broker. By working through an established broker you are able to make a purchase directly without entailing the significantly increased mark up prices that retailers have to make to cover overheads, staffing costs and profit margins. You either save money or get more for your money!
For more information please check my website on www.diamondsbyappointment.org
A jeweler tells you, "This is a blue-white diamond."
This is a very old term that is now carefully controlled by the FTC because of misuse and scams in the past. The dealer will probably tell you that it is a better diamond, but actually it is just the opposite. Blue-white refers to the fluorescence that results in natural light, which contains ultraviolet wavelengths. This blue fluorescence actually makes a colorless diamond look a little oily or milky in sunlight and decreases its value. However, for stones with a faint yellow color, a moderate amount of fluorescence can make it look whiter because it cancels some of the yellow.
The tag only states the CTW
Many jewelry tags only list the "carat total weight" of diamonds in a ring and do not list the center stone separately. You can't compare prices with another ring if you don't know the weight and quality of the main diamond. This is crucial because one large diamond is worth much more than 6 small ones that total the same weight. For instance, if you have one G/VS2 diamond weighing 1.00 carat, it might be worth about $5,500. But 10 smaller G/VS2 diamonds totalling 1.00 carats might only be worth about $1,800. Big difference! And normally, smaller diamonds at such stores are much lower quality than this example, so the actual ring would be worth still less.
Huge Sales at Jewelry Stores
If you see a sale price in the newspaper, don't fall for it. You will probably pay much more than the regular price at an honest dealer. We know of a major store in Florida that marked gold chains up from $100 cost to $500 regular price, then marked them half-price during a sale. That means the customer paid $250, thinking it was a great price. This same thing happens with diamonds on sale. Liquidation and "going out of business" sales are usually no different. We heard of one store in New York City that has been going out of business for 15 years.
The advertised diamond is sold when you get there
This is an old trick still used by many stores. Although outlawed by the FTC, it still happens because it is hard to monitor 25,000 stores in the U.S. Bait-and-Switch is when a store advertises a diamond at a great price, but when you arrive to buy it, it's already sold. They usually offer to show you something much more expensive. They bait you with the fake item, then switch you to something at a high profit.
You could avoid all these problems by working with a Diamond Broker. By working through an established broker you are able to make a purchase directly without entailing the significantly increased mark up prices that retailers have to make to cover overheads, staffing costs and profit margins. You either save money or get more for your money!
For more information please check my website on www.diamondsbyappointment.org
Monday, May 3, 2010
Diamonds as Investment
The main reason diamonds are the best investment is that the diamond industry is a monopoly that has controlled the price for the past fifty years. Emeralds used to be controlled to some extent from Columbia but that ended in 1998. In Brazil, you have small, coloured stone mines that will sell their merchandise for the best price they can get if and when they need the money. I’ve seen some coloured stone prices drop by 50% in the past five years. Diamonds, however, are controlled, with the price of “rough uncut diamonds” going up at least 20% per year to site holders. There are fewer than 100 site holders in the world who are allowed to buy diamond rough only 10 times per year. They, in turn, manufacture the rough into cut and polished diamonds that are then sold in your local jewellery stores.
Diamonds, are normally not considered an immediate, short-term investment if you buy them from a retail jewellery store. They are only a good, solid investment if you can buy them directly from the rock-bottom, wholesale source. If you’re looking for an investment in diamonds, this means you will have to deal with a wholesaler who can buy directly from the Diamond Trading Company (DTC). Then you have a controlled investment that will be scheduled to increase on the wholesale level at 20% per year.
If you would like to buy a diamond, wether for investment or a gift, please contact me and I will make it happen. For additional info, please visit my website at www.diamondsbyappointment.org
Diamonds, are normally not considered an immediate, short-term investment if you buy them from a retail jewellery store. They are only a good, solid investment if you can buy them directly from the rock-bottom, wholesale source. If you’re looking for an investment in diamonds, this means you will have to deal with a wholesaler who can buy directly from the Diamond Trading Company (DTC). Then you have a controlled investment that will be scheduled to increase on the wholesale level at 20% per year.
If you would like to buy a diamond, wether for investment or a gift, please contact me and I will make it happen. For additional info, please visit my website at www.diamondsbyappointment.org
Thursday, April 29, 2010
Diamond Buyer's Checklist
Learn as much as you can about Diamonds. Decide and write down, in order of importance, which of the 5C's are most important to you: Cost, Carat, Color, Clarity or Cut.
1. Once you know what you are looking for, physically visit jewelry stores. Identify a jeweler who is willing to spend some time with you showing you diamonds. Look at as many diamonds as you can that match your specs and budget. Make sure when comparing prices that you compare apples to apples. This can be more difficult than it sounds. For example, sometimes relatively minor differences in cut/proportions can have an impact on a stone's price and beauty. Most importantly, do NOT compare the price of a certified Diamond with the price of a Diamond which is not certified, or is only certified by an unknown Laboratory. You may be in for a surprise because the quality asserted by a no name lab may not match the quality asserted at a reputable lab. Which would translate into paying more money for something that is less than you thought it was.
2. Always ask for a certificate. There are several Independent Laboratories out there. The most well-known are GIA, the Gemological Institute of America and HRD, the Antwerp Gemological Institute.
3. The Rapaport Diamond Report (Rap Sheet). There is a standard report of Diamond Prices known as the Rap Sheet. This officially lists high wholesale diamond prices in the diamond world. There are market fluctuations which change according to supply and demand. The best way to know prices for the specific Diamond you are looking for is to shop around for a Certified Diamond of a quality range you desire, within your budget.
4. Don't pay a premium for one of the C's only to turn around and get low quality in another C. While there are exceptions to this rule, for example if you are getting a great price, why would you pay a premium for a branded ideal cut diamond and then get a low color or clarity? Save some money on the brand name and upgrade the other C(s).
The best advice I can give you to work with a Diamond Broker like me. I can take you through the diamond world and help you make the best decision.
For additional information, please visit my website at www.diamondsbyappointment.org
1. Once you know what you are looking for, physically visit jewelry stores. Identify a jeweler who is willing to spend some time with you showing you diamonds. Look at as many diamonds as you can that match your specs and budget. Make sure when comparing prices that you compare apples to apples. This can be more difficult than it sounds. For example, sometimes relatively minor differences in cut/proportions can have an impact on a stone's price and beauty. Most importantly, do NOT compare the price of a certified Diamond with the price of a Diamond which is not certified, or is only certified by an unknown Laboratory. You may be in for a surprise because the quality asserted by a no name lab may not match the quality asserted at a reputable lab. Which would translate into paying more money for something that is less than you thought it was.
2. Always ask for a certificate. There are several Independent Laboratories out there. The most well-known are GIA, the Gemological Institute of America and HRD, the Antwerp Gemological Institute.
3. The Rapaport Diamond Report (Rap Sheet). There is a standard report of Diamond Prices known as the Rap Sheet. This officially lists high wholesale diamond prices in the diamond world. There are market fluctuations which change according to supply and demand. The best way to know prices for the specific Diamond you are looking for is to shop around for a Certified Diamond of a quality range you desire, within your budget.
4. Don't pay a premium for one of the C's only to turn around and get low quality in another C. While there are exceptions to this rule, for example if you are getting a great price, why would you pay a premium for a branded ideal cut diamond and then get a low color or clarity? Save some money on the brand name and upgrade the other C(s).
The best advice I can give you to work with a Diamond Broker like me. I can take you through the diamond world and help you make the best decision.
For additional information, please visit my website at www.diamondsbyappointment.org
Friday, April 23, 2010
Investing in Diamonds
The biggest misconception that investors make with diamonds is they assume that they should behave like a commodity. A commodity is anything for which there is demand, but which is supplied without qualitative differentiation across a market. In other words, copper is copper. Rice is rice. Diamonds, due to their differences in quality, do not fit in as a true commodity. Most commodities have terminal markets, some form of a commodities exchange, clearing house, and central storage facilities. The existence of these terminal markets makes commodities have a high liquidity. Diamonds are not a commodity, so they have a relatively low liquidity. Most diamonds are sold through retail stores at very high profit margins. In other words, if you try and make some quick cash by selling your diamond necklace, you will most likely suffer an enormous loss. When it comes to investing in diamonds, the only way to make a real buck is to buy the diamonds at wholesale prices.
I can help you buy the best diamonds at wholesale price for investment or for that special someone.
Please visit my website at www.diamondsbyappointment.org
I can help you buy the best diamonds at wholesale price for investment or for that special someone.
Please visit my website at www.diamondsbyappointment.org
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