The Two Less Important Questions

The two popular questions of the week are "Who’s in?" and "Who’s out?" There is natural curiosity in wanting to know who was added to the coveted DTC Sightholders list, that exclusive club with a small, very limited membership. Monthly flights to posh London, a secretive and closed clubby gathering, events and museums, buying and selling for millions of dollars… the appeal is obvious.

Wanting to know who is out is a tad yellow, a little gossipy. Not that anyone intends to gloat, but while good news travels far, bad news travels fast. We all want to know who was banished from the club.

There are, of course, some serious business reasons for the need to know. Who, after a rigorous examination, did not make the cut, it is as if it says, “They are just not good enough and maybe we should be suspicious of their financial abilities now?”

This mainly touches about 80 companies – the 72 that are on the short list, in addition to those that had a Sight and lost it. I'm purposely not joining the speculation game. Most anyone knows the answer to the questions, and those that don't will soon know anyway.

This is a cruel game, with a few companies having their hopes dashed. Some of them are not willing to admit to it publicly, however, it is their right to lick their wounds in the private quarters of public ambiguity until their peers learn the truth.

No need to discuss, either, the companies that had a Sight, lost it, but somehow want to give the impression that they are still “in.”

As we are nearing the end of what DTC CEO Varda Shine called a “crazy year,” there are more important questions to ask. For example, are we ready for a possibly turbulent 2012? A few companies have very large polished diamond stocks, and therefore, are we ready for a small flood of cheaper goods? If 2012 will be the tough year it is predicted to be, are jewelers – manufacturers and retailers – focusing on unique designs, remembering that in difficult times you need to stand out to sell?

Are brick and mortar retailers learning how to face growing challenges from the online jewelry marketplace? As traditional advertising vehicles no longer carry the critical mass and value they once did, are retailers learning to use the new venues? Consumers are again butting up against credit limits after more robust spending in the fourth quarter, are lower cost diamond jewelry items being prepared as an alternative offering?

Given that holiday sales are good, are there plans to take advantage of the lower wholesale prices and make early 2012 a good replenishment season and a chance to bring in fresh goods for the spring fashions?

Hoping you had a great holiday season so far, wishing you very happy holidays, and a fantastic start in 2012.