Behave or Lose Consumer Confidence

“Honor, trust and reputation,” said CIBJO president Gaetano Cavalieri at the opening of the “Importance of Reputation” seminar at the Jewellery and Watch Fair in Hong Kong today (Wednesday), are the ingredients the diamond and jewelry industry will have to have in order to maintain consumer confidence.

These words were said at the opening of the seminar that expressed a simple idea: put reputation at the heart of your business or risk compromising future success.

At a time when consumers are less trusting, more knowledgeable and socially conscious, speakers urged jewelers to ensure they are paying more than just lip service to their social, technical and ethical responsibilities to win consumer trust.

According to Bob Gannicott, chairman and CEO Aber Diamond Corporation, “a key component of retail margin is based entirely on the level of trust – in diamond jewelry sales, lower trust equals lower margins.”

Another speaker, Beryl Raff, Executive Vice-President of Fine Jewelry at JC Penney, said that brands must strike a balance between conscience and profits.

CRJP CEO Michael Rae, speaking with IDEX Online at the sidelines of the seminar, provided a glimpse into how his organization will help provide consumers and the industry confidence in doing business.

A monitoring system that starts with a questionnaire, followed by a third-party independent examination of a business will ensure that an industry company – be it a miner, manufacturer or a retailer – meets the code of ethics. The code covers business practices, environmental and social issues and meeting legal requirements and regulations.

A firm that does not meet the code will be required to make the appropriate corrections or lose its standing with CRJP. The goal is that the CRJP will serve as a seal of approval. Losing it will mean losing credibility in the eyes of the consumer, or even industry clients and suppliers – and possibly losing business.