AGS Conclave - Cowboys and Cuts

The 2nd day of the AGS Conclave in Texas featured a standing room only presentation by the renowned Gabi Tolkowsky on fancy cut research. The AGS is at the forefront in the research and development in diamond cuts. Recently the Society added ray tracing software to their research arsenal, enabling greater clarification, additional findings, as well as checks and balances into the on-going development of fancy cuts.

In his 'State of the Retail Industry' address, Frank Dallahan, publisher of the JCK Magazine turned attentention to the proliferation of diamond brands currently on the market. Whilst diamond manufacturers are busy spending millions in promotion and developing their diamond brand (there are an estimated 120 diamond brands currently on the market), jewelry retailers are becoming more and more disenchanted with the brand wagon. According to a JCK research survey, over 80 percent of jewelry retailers feel that there is no more room on the market for branded diamonds, with around some 60-70 percent of retailers not selling any brand name diamonds.

Dallahan stressed to the audience that the survey conducted was in no way entirely representational. But, speaking to retailers at the Conclave, it appears the JCK survey is on the mark. Whether it's a small chain store retailer on the East Coast, a stand-alone Mid-west retailer or a well known California chain of jewelers, all agree that branded diamonds are not living up to expectations yet. "They certainly aren't bringing in any additional premiums," noted one representative of a medium-sized East Coast retail chain. "It's very rare that consumers come into the shops looking for a particular brand. It's basically only an extra selling point for the goods and even then, we see most consumers are more concerned about price and design, rather than any brand name." "There's too many out there," avered one Mid-West independent. "We used to carry three brand name stones, but found that the premiums over other stones were too high and customers were simply not prepared to pay the extra."