The diamond and jewelry industry may be lagging behind in the technology sector, but it had better get on board with modern technological advances if it wants to maintain and increase its stake in the share of pocket of today’s notoriously fickle consumer. This was the key message from the Plumb Club Forum, held in New York March 2-3.

 

Adopting the theme of “The Changing Landscape of the Jewelry Industry,” the forum emphasized the importance of Web 2.0 with a host of speakers from marketing guru Seth Godin to Don Tapscott, author of Wikinomics: How Mass Collaboration Changes Everything.

 

For the Luddites in the audience, Web 2.0 was touted as the next generation of the Internet. If Web 1.0 means static websites that only offered information, Web 2.0 is interactive and user-driven and is characterized by sites such as Youtube and Facebook.

 

While it’s one thing to listen to business and motivational speakers, no matter how good they may be, this was only one part of the event. The forum also featured presenters explaining how they are using Web 2.0 to boost their own businesses. Pinny Gniwisch, founder and EVP marketing of Ice.com, showcased some of his company’s Youtube videos, which, for a remarkably small outlay of just over $1000, had generated revenue returns of many thousands of dollars.

 

Taking a more mainstream approach, Steve Larkin, senior VP of e-commerce at ZLC Direct/Zale Corp, talked about Zale’s new online rating and feedback system. This user-generated content, he said, provides important selling points beyond photo opportunities and product descriptions. “It adds a third party brand endorsement.”

 

Since its launch in November 2007, more than 5500 products have been commented upon, which has helped the browser-to-buyer conversion rate. The system has also enabled Zale to discover problems with products and even to pull a few items from the shelves as a result of consumer feedback.   

 

Moving away from technology, the forum touched on issues that are currently concerning the trade. Industry heavyweights Martin Rapaport, chairman of The Rapaport Group and Chaim Even-Zohar, founder of Tacy Ltd., both presented discussions about diamond matters. Rapaport spoke about the commoditization of diamonds, while Even-Zohar chaired a panel about rough diamonds.

 

Even-Zohar was joined on the panel by Jean-Marc Lieberherr, general manager of sales and marketing, Rio Tinto Diamonds, NV, Richard Lennox, executive VP/U.S. marketing director of the Diamond Promotion Service and Jeffrey Fischer, president of IDMA.

 

Fischer used his speech to address a concern about recent changes in the Rapaport Price List. Diamonds above 10 carats have been added to the list although the prices have not been increased. Rather, the length has increased, as three sizes have been consolidated into two. This move, posits Fischer, will change the prices of these stones.

 

“I believe it was a convenient way to make room for the 10 carat prices,” he said. “Watch as an entire industry meekly changes its merchandising and pricing to suit the graphic layout of his price list, just as we have conformed in the past. Mike [Martin Rapaport], hopefully you will reconsider the re-sizing.”

 

Fischer was careful to preface his remarks by saying, “I want to take great care to make clear that my remarks are not to be taken as criticism of Mike. They are meant as a criticism of our industry. I have great respect for Mike...”

 

Less controversially, the conference also touched upon the subject of corporate social responsibility. In a panel forum entitled “Issues That Keep You Up at Night,” Peggy Jo Donahue, director of Public Affairs at Jewelers of America; Cecilia Gardner, president, CEO and general counsel of JVC, Douglas Hucker, executive director/CEO of the American Gem Trade Association; and Beryl Raff, executive vice president and merchandise manager of fine jewelry at J.C. Penney Company Inc., all offered their thoughts on the most pressing problems of the moment, which ranged from non-compliance with issues such as Anti-Money Laundering to the scarcity of members of the next generation entering the trade. The last comment was a point picked up by the audience during a question and answer session that followed the panel presentations.

 

Other speakers included: Michael Rae, CEO of the Council for Responsible Jewellery Practices; Bill Montalto, executive vice president and COO of Sterling Jewelers Inc.; Philip Newman, research director of GFMS Ltd.; and Liz Chatelain, co-founder and president of MVI Market Ltd.