By Glen A. Beres

 

If all goes according to plan, the U.S. jewelry industry - and American consumers - will be hearing a lot about Russian diamonds in the coming months. That’s because Kristall Smolensk, one of Russia’s leading diamond manufacturers, is implementing some major initiatives targeted at raising U.S. awareness of the Kristall brand name and the Russian diamonds it manufactures and distributes. These initiatives include:

• A new alliance with the Leading Jewelers Guild to supply the U.S. buying group with a collection of certified diamond bridal and fashion jewelry.

• It has teamed up with American Idol star Paula Abdul to create “Innergy”, Abdul’s signature collection featuring diamond charm pendants with dog tags engraved with inspirational messages. The collection, which retails from $250-$500, was launched in Sam’s Club locations across the United States and on the warehouse club chain’s Web site in September 2004.

• Kristall wants to become a “jewelry supplier to the stars”, and is aiming to break into the Hollywood celebrity circuit. The firm plans to produce higher-end designs specifically for celebrities to wear at award shows, fashion shows and photo shoots, as well as in TV and movie roles, advertisements, personal tours and other appearances.

• Having made major inroads in the U.S. mass retail market, Kristall is increasing its focus on the U.S. independent market - primarily single stores and smaller regional chains.

• Kristall says it sees a major growth opportunity in selling to U.S. online retailers and is beefing up its marketing efforts to this segment. “Russia is an important part of the diamond business and produces a sizeable quantity of high-quality diamonds of consistent make,” said Chad C. Haggar, president and chief executive officer of Kristall, Inc., the manufacturer’s U.S. division. “Our marketing strategy stresses the uniqueness, superiority and mystique of Russian diamonds. We want the U.S. market to know that the Kristall brand is synonymous with superior diamonds.”  

 

Since opening its U.S. offices in Los Angeles three years ago, the company has enjoyed strong growth stateside and has become a major provider of finished diamond jewelry to large retailers like Sterling Inc., Sam’s Club, Reeds Jewelers and Fred Meyer, among others. Although Kristall, Inc. works extensively with mid-market mass retailers, Haggar says the company focuses on higher end product that increases the average ticket of the retailer.

 

Through its Russian parent, Kristall, Inc possesses cutting-edge manufacturing technology and some of the industry’s finest craftsmen. Kristall Smolensk has developed more than 80 unique fancy diamond cuts, including the Venus, the only 10-sided cut on the market which is exclusive to North Carolina based Reeds Jewelers. In addition, there is the Symphony, an elongated radiant; and the Kristall Radiant, an 81-facet square diamond of exceptional brilliance. Kristall Smolensk is also the world’s only Russian DTC Sightholder.

 

According to Haggar, the resources and support from the parent firm means that the U.S. division can offer customers consistent and immediate access to a wide range of sizes, clarities, colors and cuts - although the supplier also specializes in goods of higher quality.

 

The recent alliance with Leading Jewelers Guild is part of the company’s strategy to expand its presence among strong single-store independents and smaller chains. The Guild, which consists of 25 jewelers representing more than 140 retail locations, is an ideal venue for Kristall to build its brand name in the U.S. market, Haggar stressed.

 

“We are very excited to be working with successful regional chains that are dominant in their markets,” he said. “Our first experience in this strategy was with Reeds Jewelers which today is one of our most important partnerships. With Leading Jewelers Guild we get to work with a solid group with long histories and great reputations. They represent the perfect market for us to showcase the brilliance and superior make of diamonds from Kristall Smolensk.”

 

Members of the Leading Jewelers Guild say the partnership with Kristall gives them a chance to differentiate themselves in the market.

 

“We felt that bringing in the Kristall Colorless Collection would help position us as more than just a mall jeweler,” said Amy Greenberg-Sachnoff, co-president of Greenberg’s Jewelers, an eight-store chain based in Sioux City, Iowa. Greenberg-Sachnoff is also head of the Guild’s Buying Committee.

 

Another Guild member, 19-store Morgan Jewelers, Salt Lake City, Utah, noted that the opportunity to work with a vertically integrated manufacturer like Kristall offers price and supply advantages. “Whenever you can align yourself with someone that sources right from the mine, it cuts out the middle man and means your customers can get better products at better prices,” said Brad Campbell, merchandise manager for Morgan Jewelers and a member of the Guild’s Buying Committee.