IJ Special – Pre-Diwali expectations - Fall in gold price, Rise in Sale

Jewellers are expecting healthy 25 -30% jump in sales of gold jewellery as compared to last year.

Post By : IJ News Service On 14 October 2014 1:18 AM
Many television viewers around the world tuned into the live telecast of the 82nd Academy Awards recently, only to ogle at the best designer jewellery showcased on Hollywood stars and celebrities.$$ Cameras zoomed in on Titanic star Kate Winslet’s gorgeous neckline that looked stunning with the white and yellow diamond necklace, worth US $ 2.5 million, that came from Tiffany’s.$$ Jennifer Lopez’s diamond ear clips from Cartier received their fair share of adulation as did Julianne Moore’s diamond and platinum bracelet from Bulgari.$$ All these exquisite pieces came from top international jewellery houses that have introduced royalty and celebrities worldwide to exclusive jewellery handcrafted from fine metals and precious stones. $$ These jewellery houses have been around for decades and established themselves as the brands to aspire for.
Traffic by Harry Winston, Three Row Diamond Ring
{{BRAND VALUATION}} As a prominent ad man quips, “Top jewellery brands have probably acquired more market value over time, than the jewellery they produce.” %% While brand valuation is a business exercise for commercial companies, useful during mergers and acquisitions, tax planning and measuring a return on investment, it also helps marketing managers to create value for their brands.”%% Informs Sumeet Chugh, a Delhi based chartered accountant, “there are several methods to assess brand value. The top of the line method is a calculation of economic earnings generated by the brand, or its turnover. Other methods calculate the profits to earnings ratio while another method adds the investment made by the company in marketing or popularising the brand to earnings from the brand.”%% However, as many of the luxury jewellery houses are family owned enterprises and do not publish their turnover figures, there have been surveys done to calculate brand success.%% In 2009, New York-based Luxury Institute, an impartial and objective ratings and research organisation for luxury products, conducted a survey on leading jewellery brands among wealthy American consumers, with minimum net investable assets of US $2 million.%% |*The 20 jewellery brands that were considered were {{Asprey, Blue Nile, Boucheron, Buccellati, Bulgari, Carrera y Carrera, Cartier, Chanel, Chopard, David Yurman, DeBeers, Dior, FRED, Graff, Gucci, Harry Winston, Ivanka Trump, Mikimoto, Piaget, Tiffany, Van Cleef and Arpels.}}*|%% These brands were short listed as they were high on the Luxury Brand Status Index (LBSI). The LBSI incorporated four main ‘pillars’ of brand stature: quality as measured by the delivery of consistently superior quality products; exclusivity, social status associated with the product, when owned by people who are admired and respected; self enhancement, when the brand makes the consumer “feel special” across all aspects of the customer experience.
According to {{Milton Pedraza}}, founder and CEO of the Luxury Institute, |*“The strength of the brand, as weighed against these criteria, would influence the price premium on the brand, willingness to recommend the brand to others as well as being most likely to be considered for the next purchase.*|”%% Agrees {{Lyle M. Rose}}, president of United Brands LLC, Beverly Hills-based management consultants and marketing agents for diamond, jewellery and fashion brands, |*“When we compiled top 10 lists of leading jewellery brands, our rankings were based on factors that include product quality, design commitment, consumer value, consumer recognition, brand differentiation and marketing effectiveness.”*| Some of the Luxury Institute survey outcomes indicated that while Graff was the most exclusive brand, not many were familiar with the brand name. On the other hand, Tiffany came out as the most well-known jewellery brand that wealthy consumers are most likely to consider for purchase. Harry Winston was ranked as the brand most worthy of a price premium followed by Cartier and Van Cleef and Arpels, which scored high on quality and exclusivity. Buccellati was most worn by people who are admired and respected while Bulgari made its customers feel special. %% Get up close and personal with the top 10 international jewellery houses from foundation to fame, their future brand plans and bottom lines. These are the top brands that have carved a niche in the hearts of its high net worth customers, willing to pay significantly high premiums. %% After all, buying jewellery is always an emotional purchase, isn’t it?$$ |*The brands have been arranged alphabetically and do not reflect superiority within this elite list.*|$$ 1. Bourcheron,$$ 2. Buccellati,$$ 3. Bulgari,$$ 4. Cartier,$$ 5. Chopard,$$ 6. Graff Diamonds,$$ 7. H stern,$$ 8. Harry Winston,$$ 9. Tiffany,$$ 10. Van cleef and arpels.
BOUCHERON
{{|*MEET THE TOPPERS*|}} {{BOUCHERON}}%% The French House of Boucheron, headquartered in Paris, creates and markets jewellery, watches and luxury fragrances around the world. Owned and run by four generations of the Boucheron family, the company was acquired by the multi-brand luxury group, Gucci in 2000. High end jewellery remains its core business. Its pieces are inspired from culture and nature, with the snake being the House favourite.%% {{Success Mantra}}$$ Creative flexibility is the secret of its success. Boucheron developed an international system for diamond rating (BIRD), whereby diamond valuation is based on a combined analysis of colour and clarity. The company uses top 10 per cent of the diamonds for its jewellery.%% {{ History}}$$ In 1858, Frederic Boucheron (1830-1902) founded the House of Boucheron in Paris. Its high jewellery won awards and was popular among the wealthy and titled royalty. His son Louis Boucheron succeeded him. Four generations of the Boucheron family helped the company’s expansion and diversification into new product lines, until being acquired by the Gucci group in 2000.
Jewellery from Boucheron
{{Products & Prices}}$$ Boucheron manufactures and markets high jewellery, watches and luxury fragrances through its flagship Place Vendôme store, directly-operated stores, franchises, department stores and exclusive multi-brand boutiques. The company also sells online.%% The company designs and creates three kinds of jewellery lines. Its costume jewellery is priced less than 5000 euros. Its fine range of jewellery, with unique centrepiece stones of exceptional weight and quality, is priced at over 50,000 euros. Jewellery between these two price ranges uses gold and precious stones.%% {{Innovation & Strategy}}$$ Boucheron innovates with design, techniques, materials and products. It launched the first wristwatch with interchangeable straps. Its new eyewear collection uses gold and wood. %% The company created the world’s first high jewellery limited edition gold cell phone, based on its famous snake design and encrusted with precious stones, in a joint venture with the phone company, Vertu. %% {{Business Statistics}}$$ • Boucheron has 47 boutiques worldwide and 100 certified retailers.$$ • Boucheron accounts for less than 5 per cent of revenues in the Gucci group, that reported a turnover of 3.3 billion euros for the year 2009, and employs more than 11,000 employees across the world.
Buccellati
{{BUCCELLATI}}%% Buccellati is a Milan, Italy based, family run top jewellery brand. %% {{Success Mantra}}$$ The company’s focus is on luxury and exclusivity. Its techniques are traditional. It handcrafts its exclusive, customised pieces, using centuries old techniques. For instance, a candlestick or a chess set can sometimes take years to complete.%% {{History}}$$ Mario Buccellati took over the jewellery firm where he worked and renamed it Bucellati in 1919. Inspired by Renaissance craftsmen, Buccellati created a unique style of texture engraving that has become its trademark.$$ On Mario Buccellati’s death, the business was split among his five sons, each of whom managed a location. They expanded the business and opened new shops around the world. Today, the company is in the hands of the third generation.
{{Products & Prices}}$$ Buccellati is known for its signature lace rings and necklaces, priced between US $15,000 and US $45,000. Ancient piercing techniques are used on these pieces to create a lace or a honeycomb effect. It also uses mixed metals like gold and platinum or silver and gold, in its exclusive designs.%% {{Innovation & Strategy}}$$ Buccellatti believes in tradition and is known for its unique style in design, texture and intricate engraving work. Its craftsmen, qualified in the House style, are the sons and grandchildren of craftsmen who worked with the House when it was established. Its jewellery is still produced in small workshops.%% {{Business Statistics}}$$ • Buccellati has around 250 best craftsmen in Italy. • The company makes 3,000 jewellery pieces a year. • While the slowdown has impacted sale of its rings and necklaces priced between 10,000 euros and 30,000 euros, demand for high end jewellery priced above 100,000 euros has not suffered. • The company enjoys good growth in India, China and Russia.
SHOP_GEORGEV_EXTERIOR
{{BULGARI}}%% Headquartered in Italy, Bulgari, a family controlled public company, is an international luxury brand in jewellery, toiletries, accessories and hotels. It is rated as the third largest jeweller in the world.%% {{Success Mantra}}$$ According to Bulgari’s CEO, Francesco Trapani, “We are a jeweller that sells products for everyday use, not just for special occasions. This is the secret of our success.”%% {{History}}$$ The founder of Bulgari, Soutirio Boulgaris, (1857-1932) was a Greek silversmith. He founded a variety store in Italy, in 1880, selling tableware and silver accessories. He went on to open a huge shop at No. 10 Via Condotti in Rome, the company headquarters. Bulgari became a high class jewellery house.$$ After him, his sons, Giorgio and Costantino took over the company and formally changed the company logo to “BVLGARI,” an application of the traditional Roman alphabet.$$ The family's third generation, Giorgio's three sons Paolo, Gianni, and Nicola, took over the company in 1967 and expanded internationally. Paulo and Nicola, bought out eldest brother Gianni, who gave up his stake in Bulgari to set up Fila, a footwear company. Their nephew Franscesco Trapani was appointed CEO and is responsible for aggressive expansion.
Jewellery by Bulgari
{{Products & Prices}}$$ The company, traditionally into jewellery and watches, has expanded its range of products to include perfumes, silk scarves, handbags, eye ware and accessories. Consumers have a choice of more than 800 styles in each product category. Items range from under US $200 to about US $38,000. %% {{Innovation & Strategy}}$$ Each of its unique collections are based on a theme. New lines in watches, that account for 30 per cent of the turnover, are introduced every year. Regular diversification into new product lines. Environment friendly practices.%% {{Hotels}}$$ The company has a joint venture with hotel chain, Marriott International, to launch Bulgari Hotels and Resorts in Milan and Bali. Bulgari supplies all the luxury goods used in the rooms and guests can order Bulgari jewellery from room service! Bulgari also supplies luxury goods aboard ships.%% {{Business Statistics}}$$ • Bulgari sells its products through 252 boutiques of which 155 are company owned. • For the year ended 2009, Bulgari recorded a sales turnover of 926.6 million Euro, as against revenues in 2008 of E 1,075 million Euro and a net income of $115.9 million. About 43 per cent of the revenues came from jewellery. • Bulgari recorded a net loss of 47 million Euro compared to a profit of 82.9 million Euro in 2008. • Bulgari employs more than 4000 employees worldwide.
Jewellery at cartier
{{CARTIER}}%% Swiss company Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, owns Cartier, the brand with the largest share in the Richemont bottom line. Van Cleef and Arpels is anotherRichemont brand. Cartier is known for its handcrafted jewellery and watches. It is the world’s second largest watch producer after Rolex.”%% {{Success Mantra}}$$ Cartier’s success came as a stroke of marketing genius when it ventured from luxury accessories to a line of affordable products known as ‘Les Must de Cartier’ or You must buy a Cartier. From lighters, pens watches, leather goods and sunglasses, these items sold fast. Strategically, the brand was no longer confined to royalty.$$ According to Bernard Fornas, CEO, Cartier, “The affordable products, starting at US $200 are an initiation strategy of bringing new customers to a Cartier boutique.”%% {{History}}$$ Louis Francois Cartier (1819-1904) founded Cartier, as an upscale jewellery store in Paris in 1847. For more than 120 years, the Cartier family run the company, until the 1970s when it was taken over in a fragmented state and put together by the Richemont group, earlier known as Vendome. %% {{Products & Prices}}$$ Cartier has 10 different product lines embracing jewellery, timepieces, watches, perfume, leather goods, sunglasses, apparel and accessories. However, nearly three fourths of the Cartier turnover comes from jewellery and watches.%% {{Innovation & Strategy}}$$ Cartier has a long history of innovation. It designed and made the first flat men’s wristwatch.$$ “Luxury is innovation,” says Fornas. “We will continue to find new ways of doing things, with new materials, shapes and combinations while respecting the DNA of the brand,” he adds.%% {{Business Statistics}}$$ • Cartier has 300 boutiques across the world. • Cartier’s design department employs 30 people from 11 countries. • In 2009, Cartier reported decline in sales from its own boutiques and third party retailers.
{{CHOPARD}}%% Chopard is a privately owned, Geneva-based luxury watch, jewellery and fashion accessories company, controlled by the Scheufele family. %% {{Success Mantra}}$$ “Passion for excellence is the company motto,” according to Daphne` Secretan, press officer, Chopard, “which is expressed through its product quality, tradition, innovation and commitment to philanthropic activities.”%% {{History}}$$ Louis-Ulysse Chopard (1836-1919), a watchmaker, founded Chopard, as a small shop in Sonvillier, Switzerland in 1860. Chopard’s motto was “Quality with the maximum possible work by hand,” and each watch was marked with his initials L.U.C. $$ Two Chopard generations managed the business until 1963, when Andre-Paul Chopard, the founder’s grandson, sold the company to Karl Scheufele, a goldsmith and watchmaker in Germany.$$ Scheufele carried on the Chopard brand name and transformed the company into a high end jewellery and watch brand.
Haute_Joaillerie_Necklace
{{Products & Prices}}$$ Chopard developed an extensive range of products including collections of watches and jewellery, perfume, eyewear, leather, silk scarves, china and silverware besides luxury fountain pens, Twister and Racing. Chopard distributes its products through 13 subsidiaries around the world.%% {{Innovation & Strategy}}$$ Louis Chopard was a traditional watchmaker who made the movements for its pocket watches. However, after Scheufele took over the company, it started to buy movements from different companies. Chopard once again wants to be a true manufacturer and qualify as haute horlogerie.$$ Chopard plans to introduce a new line of luxury watches set with rare diamonds in a partnership with William Goldberg Diamond Corporation, an international supplier of precious stones.$$ The company supports various charities and sponsors the Mille Miglia, the famous motor race in Italy besides being the official partner of the Canne Film Festival. $$ {{Business Statistics}}$$ • Chopard has 123 boutiques and 1600 points of sale worldwide. It employs about 1750 employees worldwide. • The company reported a turnover of more than CHF 500 million Swiss francs or around US $468 million for 2008. • The brand produces 150,000 pieces every year, including watches and jewellery. • Chopard expanded its Geneva factory, extended its Germany factory, bought over a gold chain factory, and built a factory in Fleurier to produce LUC watches. • Celebrating its sesquicentennial year at Baselworld in March, Chopard launched its 150 piece High Jewellery Animal World collection and four new L.U.C watches with four new calibres. • Its most popular products are the Happy Sport Ladies’ watches and the 1000 Miglia Men’s watches.
{{GRAFF}}%% Graff Diamonds are a global jewellery and watch company headquartered in London. Graff specialises in high quality, flawless stones, especially those steeped in myth and mystery.$$ Founded by Laurence Graff in 1960, its world wide operations range from cutting and polishing to the manufacture of fine high end jewellery, retailed from its chain of 26 stores worldwide. %% {{Success Mantra}}$$ Large, flawless stones, skilled craftsmen and the company’s vertically integrated model are the keys to its success. $$ Graff sources the stones from mines in Canada, Australia, Russia, South America and South Africa. The stones are assessed to release the full potential, cut and polished and set into fine jewellery, at the company’s manufacturing operations in Johannesburg, Antwerp, Mauritius and New York. Rare gems and the best diamonds move to Graff's headquarters in Mayfair, London, to be set into iconic jewellery.%% {{History}}$$ Laurence Graff, (1938) designed jewellery and sold it to jewellers all over England. He eventually set up Graff Diamonds in 1960 that sold to the rich and famous. Known as the Prince of Jewellers, Laurence Graff has owned the world’s most fabulous gemstones.
graff-superstar-ladies-watch
{{Products & Prices}}$$ All Graff jewellery is handmade in its workshops. Each piece is set with the minimum of platinum or gold to maximize the intrinsic beauty of the stones.%% {{Innovation & Strategy}}$$ Graff only sells near flawless diamond jewellery. Skilled gem cutters with Graff have developed a special emerald cut that truncates the corners and gives a classic, rectangular shape to the stone. %% {{Business Statistics}}$$ • Graff’ diamond cutting and polishing centre in Johannesburg, South Africa is one of the largest workshops in the world with 300 skilled craftsmen. • Graff employs 200 highly skilled craftsmen in its manufacturing locations in Antwerp, Johannesburg, London, Mauritius and New York. Many of the craftsman have served their apprenticeship with the company. • Graff plans to open a flagship store in Kiev, Ukraine this year. • Graff retails its jewellery in 26 company owned stores worldwide as well as selected Saks outlets.
{{H. STERN}}%% H. Stern is the largest jewellery house in South America. Headquartered in Rio de Janeiro, Brazil, since 1945, it ranks among the five most prestigious jewellery brands. %% {{Success Mantra}}$$ Each piece of design jewellery is hand crafted. Change is the company’s success mantra with two new collections being launched every year.$$ According to Christian Hallot, H.Stern ambassador and advisor to the company’s board of directors, “The H.Stern design team regularly creates new gemstone cutting and polishing techniques.”%% {{History}}$$ Hans Stern (1922-2007), a Jewish immigrant, set up H Stern in 1945, to market coloured gemstones, amethysts, tourmalines and topazes, found in Brazil. $$ Obsessed with quality and workmanship, he created an International Warranty Certificate to attest to the quality of his jewels. He created an international interest in ‘coloured gemstones’, so that even today, coloured gemstones are called ‘Brazilian coloured stones’ even if these are not sourced in Brazil. Hans Stern became known as ‘King of the Coloured Gemstones.’
{{Product and Prices}}$$ According to Hallot, “Our price range is large and flexible. At the high end, we design pieces for women who want to make a personal style statement. At the other, our jewellery can be worn for going to work and the movies. %% {{Innovation & Strategy}}$$ Introduced the concept allowing customers to trade in unwanted gold pieces, as part payment on purchase of new jewellery that was replicated by jewellers around the world.$$ Opened Hans Stern’s private museum with a rare collection of tourmalines in more than 1100 shades of colour.$$ The company’s new headquarters housed every area in the manufacturing and retailing of fine jewellery, workshops, laboratories, training facilities, offices, museum and showrooms. $$ To counter the threat of the economic downturn, H.Stern offered jewellery purchase on instalments spread over 10 months.%% {{Business Statistics}}$$ • The company sells more than 200,000 pieces of jewellery annually. • It has a network of 165 company stores in 31 countries plus an additional 170 retail outlets through wholesale partners worldwide. • Has a staff of 2800 professionals of which, at least 50 craftsmen have been with the company for more than 20 years. • More than 50 per cent of the company’s business is located in Brazil.
Central Park by Harry Winston, Emerald and Diamond Five Stone Ring
{{HARRY WINSTON}}%% Harry Winston Inc., is a prestigious New York-based diamond jeweller and watch retailer with salons established in key world locations. $$ This company is the retail subsidiary of Harry Winston Diamond Corporation (HWDC), earlier known as Aber Diamond Corporation, a Toronto, Canada-based specialist diamond company focussed on the mining and retail segments of the diamond industry.%% {{Success Mantra}}$$ Harry Winston success mantra is its presence into the mining and retailing of diamonds.$$ HWDC owns a 40 per cent interest in the Diavik Diamond Mine, in Canada, a global supplier of rough diamonds.$$ Its presence in diamond mining offers a reliable source of high quality polished diamonds for its retail subsidiary.%% {{History}}$$ Harry Winston (1896--1978) an Ukraine immigrant in United States, learnt the trade in his father’s jewellery shop. He also designed and handcrafted jewellery. In 1920, he set up his first business, Premier Diamond Company on Fifth Avenue in New York. He bought the jewellery collection of one of the richest women in America and redesigned it. $$ Winston purchased the largest and best diamonds from all over the world from dealers, royalty, collectors and maharajahs. Many historically famous diamonds passed through his hands.$$ After Winston, his elder son Ronald, controlled the company while his younger son, a university drop out, loved sailing and sports cars. An ugly rift between the brothers led to Ronald buying out his brother’s share for US $ 44 million, funds for which came from a private equity group, that acquired a share in the company.$$ In 2003, Aber Diamond Corporation of Canada bought out the group’s share for US $85 million and acquired a 51 per cent stake in Harry Winston. It brought out the rest of the company for US $ 157 million. The name Aber was changed to HWDC. In May 2008, Ronald Winston formally exited the company.
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{{Products & Prices}}$$ Harry Winston retails a range of fine, handcrafted diamond and coloured stone jewellery and luxury watches. The company has recently opened a new watch-making facility in Geneva, Switzerland.$$ The opening price for a small pair of Harry Winston diamond earrings is US $3,700 with prices touching a million dollars and more for a single piece!%% {{Innovation & Strategy}}$$ In a growth initiative, Harry Winston plans to expand its international network of salons and introduce a broad range of luxury watches and handcrafted jewellery collections.%% {{Business Statistics}}$$ • HWDC operates 25 salons worldwide. • The company recorded an annual sales turnover of US $680 million, for the fiscal year ended January 31, 2008, of which sales from rough diamonds amounted to more than US $413 million. The company’s retail sales amount to US $ 265 million. Average sales amounts to US $40,000 and US $50,000. • The company’s annual net earnings amounted to 106 million as of January 2008.
{{TIFFANY & CO}}%% Headquartered in New York, the Tiffany brand is famous for jewellery, neatly packaged in its trademark blue box. As a brand, Tiffany is synonymous with engagement rings. $$ The company designs, manufactures and sells its jewellery exclusively through its stores and boutiques worldwide. Jewellery is sold through wholesale distributors, e-commerce enabled websites and mail catalogue, well known as the Blue Book. The company also sells fragrances, leather goods and accessories.%% {{Success Mantra}}$$ Tiffany attributes its success to the quality, sophistication, design and beauty of its products. %% {{History}}$$ Charles Lewis Tiffany (1812-1902) set up Tiffany and Company in 1837, as a small fancy goods store on borrowed business capital of US $ 1000. The shop sold handicrafts, stationery, knick knacks and costume jewellery. $$ When Tiffany bought a fancy, yellow 128.5 carat diamond and named it ‘The Tiffany Diamond’, his store became an emporium of luxury goods. Sales were only made in cash. $$ He also set up a shop in Paris and bought the French Crown jewels when the monarchy was overthrown, making Tiffany a home for diamond jewellery. After Tiffany management changed and the company went public.
Rings
{{Products & Prices}}$$ Tiffany sells jewellery, silverware, key chains, fragrances, leather goods and accessories available across various price ranges.%% {{Innovation & Strateg}} Tiffany regularly launches new product lines, design collections and store expansions. $$ Tiffany adds less expensive items like key chains and bookmarks In a downturn or high prices itself out of this market during an upturn.%% {{Business Statistics}}$$ • Tiffany operates 220 company stores and boutiques worldwide. • the company’s net worldwide sales revenue fell by 3 per cent to US $2.9 billion for the year ended January 2009 with net income falling by 76 per cent in the last quarter of this bad year. • Tiffany has 8,800 employees worldwide. • The company closed down its loss making Indesse stores, an outlet for exclusive pearl jewellery.
Van Cleef & Arpels
{{VAN CLEEF & ARPELS}}%% Van Cleef & Arpels designs and handcrafts fine jewellery, watches and perfumes. Managed by the Van Cleef & Arpels family for generations, it was taken over in 1999 by Swiss Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, that also owns the Cartier brand.%% {{Success Mantra}}$$ Creativity and collections are the company success mantra. Charlotte Gounant, press officer with Van Cleef & Arpels says, “We use the very best stones, purest and strongest in colour, and the best craftsmen. We launch two collections every year.”%% {{History}}$$ Van Cleef & Arpels was founded in 1896 by Salomon Arpels and his son-in-law Alfred Van Cleef. They opened their first boutique in 1906 at 22 Place Vendôme, Paris and registered the Van Cleef & Arpels trademark. Descendents of the family expanded the business into other countries until 1999, when it was taken over by Richemont.
{{Products & Prices}}$$ Van Cleef & Arpels uses rare and magnificent stones and each piece is specially and exquisitely handcrafted. Called high jewellery, each piece is priced more than US $100,000. %% {{Innovation & Strategy}}$$ The main plank of this company is creativity. It constantly innovates design and material to handcraft luxury couture jewellery using rare stones and materials. It has created the Zip necklace that can be opened and closed like a zip. It uses unusual materials like mother of pearl, snakewood and lacquer in its pieces.$$ It also innovates methods of stone cutting and setting. The company is known for having perfected the ‘mystery setting’, a fine paving procedure that uses fine gold or a platinum net to set diamonds and precious gem stones so that no claws are visible. The minimum use of metal enhances the reflection of light. (See picture).%% {{Business Statistics }}$$ • Van Cleef & Arpels has a network of 65 boutiques across four continents. • Van Cleef & Arpels regularly exhibits its magnificent pieces. Exhibitions are planned in New York city, Paris and Beijing. Together sales of Cartier and Van Cleef & Arpels brands accounted for nearly 50 per cent of sales turnover of the entire Richemont group in 2008. However, in 2009, sales of both these maisons, decreased by 14 per cent while operating profit decreased by 22 per cent to 349 million Euros.
{{OLD IS GOLD}}%% These top echelon jewellery houses have survived and delivered consistently in a global diamond jewellery market, currently valued at approximately US $68 billion with an average annual forecasted growth rate of 4 per cent.%% The resilience of these brands, their survival skills, have been honed by four main challenges, which they have faced with impunity to remain at the top.%% {{Challenge of Recession}}%% Over time, jewellery houses have survived several economic depressions and downturns. $$ The last two years, 2008 and 2009, have challenged the industry and wiped out many old timers from the market. Although, every company experienced a cut in revenues, strong visionaries have survived by widening market reach.$$ Francesco Trapani, CEO of Bulgari, says, “In these times, we sell more to be more profitable. To driver growth, we sell products for special occasions and everyday use.”%% {{Challenge From Counterfeits}}%% Top jewellery houses are aware that their exclusive, handcrafted ornament showcased by the stars, may soon be replicated indiscriminately for the hoi polloi. $$ Recently, a US federal court ruled against Tiffany that it was the company’s responsibility to protect its trademark and that an auction site like ebay was not responsible for the fake Tiffany products being sold online. $$ Although Tiffany has appealed, most companies have risen to the occasion by interpreting it as a demand for up market products.$$ Says Christian Hallot, H.Stern’s ambassador and advisor to the company’s board of directors, “Our price range is wide and flexible. Then why wear an imitation?
Bulgari too, has countered the problem of fakes through registering its products with a unique serial number.$$ At Graff Diamonds, all diamonds are laser-inscribed with the Graff logo and a Gemological Institute of America identification number. $$ As Gounant of Van Cleef & Arpels quips, “Exceptional creativity is our best weapon against fake jewellery and the economic crisis.” Probably imitation is the best form of flattery.%% {{Security Challenge}}%% In December 2008, three men wearing wigs and women’s clothes, entered a Harry Winston boutique in Paris and robbed it of more than US $100 million worth of jewellery and watches. In October 2007 too, robbers had got away with about US $25 million worth of jewellery.$$ At Graff Diamonds, London, in a huge heist two men posing as customers stole jewellery worth nearly £40 million or US $65 million. $$ Luxury jewellery houses are reluctant to disclose security arrangements or the amount spent on security but they are prepared for the worst with the best that technology offers.%% {{Customer Loyalty}}%% The most important challenge in retaining market share and brand value is preserving customer loyalty. This is essentially managed through marketing, while ensuring product quality and customer satisfaction. $$ These top companies therefore support charities and sponsor popular events to ensure visibility and recall besides loyalty.$$ For instance, at Cartier, customers for low end initiation products are treated so well that eventually they turn up to buy the high end pieces.$$ These challenges have prepared luxury companies for the future. Tomorrow, you may be a Harry Winston or a Graff customer.
Many television viewers around the world tuned into the live telecast of the 82nd Academy Awards recently, only to ogle at the best designer jewellery showcased on Hollywood stars and celebrities.$$ Cameras zoomed in on Titanic star Kate Winslet’s gorgeous neckline that looked stunning with the white and yellow diamond necklace, worth US $ 2.5 million, that came from Tiffany’s.$$ Jennifer Lopez’s diamond ear clips from Cartier received their fair share of adulation as did Julianne Moore’s diamond and platinum bracelet from Bulgari.$$ All these exquisite pieces came from top international jewellery houses that have introduced royalty and celebrities worldwide to exclusive jewellery handcrafted from fine metals and precious stones. $$ These jewellery houses have been around for decades and established themselves as the brands to aspire for.
Traffic by Harry Winston, Three Row Diamond Ring
{{BRAND VALUATION}} As a prominent ad man quips, “Top jewellery brands have probably acquired more market value over time, than the jewellery they produce.” %% While brand valuation is a business exercise for commercial companies, useful during mergers and acquisitions, tax planning and measuring a return on investment, it also helps marketing managers to create value for their brands.”%% Informs Sumeet Chugh, a Delhi based chartered accountant, “there are several methods to assess brand value. The top of the line method is a calculation of economic earnings generated by the brand, or its turnover. Other methods calculate the profits to earnings ratio while another method adds the investment made by the company in marketing or popularising the brand to earnings from the brand.”%% However, as many of the luxury jewellery houses are family owned enterprises and do not publish their turnover figures, there have been surveys done to calculate brand success.%% In 2009, New York-based Luxury Institute, an impartial and objective ratings and research organisation for luxury products, conducted a survey on leading jewellery brands among wealthy American consumers, with minimum net investable assets of US $2 million.%% |*The 20 jewellery brands that were considered were {{Asprey, Blue Nile, Boucheron, Buccellati, Bulgari, Carrera y Carrera, Cartier, Chanel, Chopard, David Yurman, DeBeers, Dior, FRED, Graff, Gucci, Harry Winston, Ivanka Trump, Mikimoto, Piaget, Tiffany, Van Cleef and Arpels.}}*|%% These brands were short listed as they were high on the Luxury Brand Status Index (LBSI). The LBSI incorporated four main ‘pillars’ of brand stature: quality as measured by the delivery of consistently superior quality products; exclusivity, social status associated with the product, when owned by people who are admired and respected; self enhancement, when the brand makes the consumer “feel special” across all aspects of the customer experience.
According to {{Milton Pedraza}}, founder and CEO of the Luxury Institute, |*“The strength of the brand, as weighed against these criteria, would influence the price premium on the brand, willingness to recommend the brand to others as well as being most likely to be considered for the next purchase.*|”%% Agrees {{Lyle M. Rose}}, president of United Brands LLC, Beverly Hills-based management consultants and marketing agents for diamond, jewellery and fashion brands, |*“When we compiled top 10 lists of leading jewellery brands, our rankings were based on factors that include product quality, design commitment, consumer value, consumer recognition, brand differentiation and marketing effectiveness.”*| Some of the Luxury Institute survey outcomes indicated that while Graff was the most exclusive brand, not many were familiar with the brand name. On the other hand, Tiffany came out as the most well-known jewellery brand that wealthy consumers are most likely to consider for purchase. Harry Winston was ranked as the brand most worthy of a price premium followed by Cartier and Van Cleef and Arpels, which scored high on quality and exclusivity. Buccellati was most worn by people who are admired and respected while Bulgari made its customers feel special. %% Get up close and personal with the top 10 international jewellery houses from foundation to fame, their future brand plans and bottom lines. These are the top brands that have carved a niche in the hearts of its high net worth customers, willing to pay significantly high premiums. %% After all, buying jewellery is always an emotional purchase, isn’t it?$$ |*The brands have been arranged alphabetically and do not reflect superiority within this elite list.*|$$ 1. Bourcheron,$$ 2. Buccellati,$$ 3. Bulgari,$$ 4. Cartier,$$ 5. Chopard,$$ 6. Graff Diamonds,$$ 7. H stern,$$ 8. Harry Winston,$$ 9. Tiffany,$$ 10. Van cleef and arpels.
BOUCHERON
{{|*MEET THE TOPPERS*|}} {{BOUCHERON}}%% The French House of Boucheron, headquartered in Paris, creates and markets jewellery, watches and luxury fragrances around the world. Owned and run by four generations of the Boucheron family, the company was acquired by the multi-brand luxury group, Gucci in 2000. High end jewellery remains its core business. Its pieces are inspired from culture and nature, with the snake being the House favourite.%% {{Success Mantra}}$$ Creative flexibility is the secret of its success. Boucheron developed an international system for diamond rating (BIRD), whereby diamond valuation is based on a combined analysis of colour and clarity. The company uses top 10 per cent of the diamonds for its jewellery.%% {{ History}}$$ In 1858, Frederic Boucheron (1830-1902) founded the House of Boucheron in Paris. Its high jewellery won awards and was popular among the wealthy and titled royalty. His son Louis Boucheron succeeded him. Four generations of the Boucheron family helped the company’s expansion and diversification into new product lines, until being acquired by the Gucci group in 2000.
Jewellery from Boucheron
{{Products & Prices}}$$ Boucheron manufactures and markets high jewellery, watches and luxury fragrances through its flagship Place Vendôme store, directly-operated stores, franchises, department stores and exclusive multi-brand boutiques. The company also sells online.%% The company designs and creates three kinds of jewellery lines. Its costume jewellery is priced less than 5000 euros. Its fine range of jewellery, with unique centrepiece stones of exceptional weight and quality, is priced at over 50,000 euros. Jewellery between these two price ranges uses gold and precious stones.%% {{Innovation & Strategy}}$$ Boucheron innovates with design, techniques, materials and products. It launched the first wristwatch with interchangeable straps. Its new eyewear collection uses gold and wood. %% The company created the world’s first high jewellery limited edition gold cell phone, based on its famous snake design and encrusted with precious stones, in a joint venture with the phone company, Vertu. %% {{Business Statistics}}$$ • Boucheron has 47 boutiques worldwide and 100 certified retailers.$$ • Boucheron accounts for less than 5 per cent of revenues in the Gucci group, that reported a turnover of 3.3 billion euros for the year 2009, and employs more than 11,000 employees across the world.
Buccellati
{{BUCCELLATI}}%% Buccellati is a Milan, Italy based, family run top jewellery brand. %% {{Success Mantra}}$$ The company’s focus is on luxury and exclusivity. Its techniques are traditional. It handcrafts its exclusive, customised pieces, using centuries old techniques. For instance, a candlestick or a chess set can sometimes take years to complete.%% {{History}}$$ Mario Buccellati took over the jewellery firm where he worked and renamed it Bucellati in 1919. Inspired by Renaissance craftsmen, Buccellati created a unique style of texture engraving that has become its trademark.$$ On Mario Buccellati’s death, the business was split among his five sons, each of whom managed a location. They expanded the business and opened new shops around the world. Today, the company is in the hands of the third generation.
{{Products & Prices}}$$ Buccellati is known for its signature lace rings and necklaces, priced between US $15,000 and US $45,000. Ancient piercing techniques are used on these pieces to create a lace or a honeycomb effect. It also uses mixed metals like gold and platinum or silver and gold, in its exclusive designs.%% {{Innovation & Strategy}}$$ Buccellatti believes in tradition and is known for its unique style in design, texture and intricate engraving work. Its craftsmen, qualified in the House style, are the sons and grandchildren of craftsmen who worked with the House when it was established. Its jewellery is still produced in small workshops.%% {{Business Statistics}}$$ • Buccellati has around 250 best craftsmen in Italy. • The company makes 3,000 jewellery pieces a year. • While the slowdown has impacted sale of its rings and necklaces priced between 10,000 euros and 30,000 euros, demand for high end jewellery priced above 100,000 euros has not suffered. • The company enjoys good growth in India, China and Russia.
SHOP_GEORGEV_EXTERIOR
{{BULGARI}}%% Headquartered in Italy, Bulgari, a family controlled public company, is an international luxury brand in jewellery, toiletries, accessories and hotels. It is rated as the third largest jeweller in the world.%% {{Success Mantra}}$$ According to Bulgari’s CEO, Francesco Trapani, “We are a jeweller that sells products for everyday use, not just for special occasions. This is the secret of our success.”%% {{History}}$$ The founder of Bulgari, Soutirio Boulgaris, (1857-1932) was a Greek silversmith. He founded a variety store in Italy, in 1880, selling tableware and silver accessories. He went on to open a huge shop at No. 10 Via Condotti in Rome, the company headquarters. Bulgari became a high class jewellery house.$$ After him, his sons, Giorgio and Costantino took over the company and formally changed the company logo to “BVLGARI,” an application of the traditional Roman alphabet.$$ The family's third generation, Giorgio's three sons Paolo, Gianni, and Nicola, took over the company in 1967 and expanded internationally. Paulo and Nicola, bought out eldest brother Gianni, who gave up his stake in Bulgari to set up Fila, a footwear company. Their nephew Franscesco Trapani was appointed CEO and is responsible for aggressive expansion.
Jewellery by Bulgari
{{Products & Prices}}$$ The company, traditionally into jewellery and watches, has expanded its range of products to include perfumes, silk scarves, handbags, eye ware and accessories. Consumers have a choice of more than 800 styles in each product category. Items range from under US $200 to about US $38,000. %% {{Innovation & Strategy}}$$ Each of its unique collections are based on a theme. New lines in watches, that account for 30 per cent of the turnover, are introduced every year. Regular diversification into new product lines. Environment friendly practices.%% {{Hotels}}$$ The company has a joint venture with hotel chain, Marriott International, to launch Bulgari Hotels and Resorts in Milan and Bali. Bulgari supplies all the luxury goods used in the rooms and guests can order Bulgari jewellery from room service! Bulgari also supplies luxury goods aboard ships.%% {{Business Statistics}}$$ • Bulgari sells its products through 252 boutiques of which 155 are company owned. • For the year ended 2009, Bulgari recorded a sales turnover of 926.6 million Euro, as against revenues in 2008 of E 1,075 million Euro and a net income of $115.9 million. About 43 per cent of the revenues came from jewellery. • Bulgari recorded a net loss of 47 million Euro compared to a profit of 82.9 million Euro in 2008. • Bulgari employs more than 4000 employees worldwide.
Jewellery at cartier
{{CARTIER}}%% Swiss company Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, owns Cartier, the brand with the largest share in the Richemont bottom line. Van Cleef and Arpels is anotherRichemont brand. Cartier is known for its handcrafted jewellery and watches. It is the world’s second largest watch producer after Rolex.”%% {{Success Mantra}}$$ Cartier’s success came as a stroke of marketing genius when it ventured from luxury accessories to a line of affordable products known as ‘Les Must de Cartier’ or You must buy a Cartier. From lighters, pens watches, leather goods and sunglasses, these items sold fast. Strategically, the brand was no longer confined to royalty.$$ According to Bernard Fornas, CEO, Cartier, “The affordable products, starting at US $200 are an initiation strategy of bringing new customers to a Cartier boutique.”%% {{History}}$$ Louis Francois Cartier (1819-1904) founded Cartier, as an upscale jewellery store in Paris in 1847. For more than 120 years, the Cartier family run the company, until the 1970s when it was taken over in a fragmented state and put together by the Richemont group, earlier known as Vendome. %% {{Products & Prices}}$$ Cartier has 10 different product lines embracing jewellery, timepieces, watches, perfume, leather goods, sunglasses, apparel and accessories. However, nearly three fourths of the Cartier turnover comes from jewellery and watches.%% {{Innovation & Strategy}}$$ Cartier has a long history of innovation. It designed and made the first flat men’s wristwatch.$$ “Luxury is innovation,” says Fornas. “We will continue to find new ways of doing things, with new materials, shapes and combinations while respecting the DNA of the brand,” he adds.%% {{Business Statistics}}$$ • Cartier has 300 boutiques across the world. • Cartier’s design department employs 30 people from 11 countries. • In 2009, Cartier reported decline in sales from its own boutiques and third party retailers.
{{CHOPARD}}%% Chopard is a privately owned, Geneva-based luxury watch, jewellery and fashion accessories company, controlled by the Scheufele family. %% {{Success Mantra}}$$ “Passion for excellence is the company motto,” according to Daphne` Secretan, press officer, Chopard, “which is expressed through its product quality, tradition, innovation and commitment to philanthropic activities.”%% {{History}}$$ Louis-Ulysse Chopard (1836-1919), a watchmaker, founded Chopard, as a small shop in Sonvillier, Switzerland in 1860. Chopard’s motto was “Quality with the maximum possible work by hand,” and each watch was marked with his initials L.U.C. $$ Two Chopard generations managed the business until 1963, when Andre-Paul Chopard, the founder’s grandson, sold the company to Karl Scheufele, a goldsmith and watchmaker in Germany.$$ Scheufele carried on the Chopard brand name and transformed the company into a high end jewellery and watch brand.
Haute_Joaillerie_Necklace
{{Products & Prices}}$$ Chopard developed an extensive range of products including collections of watches and jewellery, perfume, eyewear, leather, silk scarves, china and silverware besides luxury fountain pens, Twister and Racing. Chopard distributes its products through 13 subsidiaries around the world.%% {{Innovation & Strategy}}$$ Louis Chopard was a traditional watchmaker who made the movements for its pocket watches. However, after Scheufele took over the company, it started to buy movements from different companies. Chopard once again wants to be a true manufacturer and qualify as haute horlogerie.$$ Chopard plans to introduce a new line of luxury watches set with rare diamonds in a partnership with William Goldberg Diamond Corporation, an international supplier of precious stones.$$ The company supports various charities and sponsors the Mille Miglia, the famous motor race in Italy besides being the official partner of the Canne Film Festival. $$ {{Business Statistics}}$$ • Chopard has 123 boutiques and 1600 points of sale worldwide. It employs about 1750 employees worldwide. • The company reported a turnover of more than CHF 500 million Swiss francs or around US $468 million for 2008. • The brand produces 150,000 pieces every year, including watches and jewellery. • Chopard expanded its Geneva factory, extended its Germany factory, bought over a gold chain factory, and built a factory in Fleurier to produce LUC watches. • Celebrating its sesquicentennial year at Baselworld in March, Chopard launched its 150 piece High Jewellery Animal World collection and four new L.U.C watches with four new calibres. • Its most popular products are the Happy Sport Ladies’ watches and the 1000 Miglia Men’s watches.
{{GRAFF}}%% Graff Diamonds are a global jewellery and watch company headquartered in London. Graff specialises in high quality, flawless stones, especially those steeped in myth and mystery.$$ Founded by Laurence Graff in 1960, its world wide operations range from cutting and polishing to the manufacture of fine high end jewellery, retailed from its chain of 26 stores worldwide. %% {{Success Mantra}}$$ Large, flawless stones, skilled craftsmen and the company’s vertically integrated model are the keys to its success. $$ Graff sources the stones from mines in Canada, Australia, Russia, South America and South Africa. The stones are assessed to release the full potential, cut and polished and set into fine jewellery, at the company’s manufacturing operations in Johannesburg, Antwerp, Mauritius and New York. Rare gems and the best diamonds move to Graff's headquarters in Mayfair, London, to be set into iconic jewellery.%% {{History}}$$ Laurence Graff, (1938) designed jewellery and sold it to jewellers all over England. He eventually set up Graff Diamonds in 1960 that sold to the rich and famous. Known as the Prince of Jewellers, Laurence Graff has owned the world’s most fabulous gemstones.
graff-superstar-ladies-watch
{{Products & Prices}}$$ All Graff jewellery is handmade in its workshops. Each piece is set with the minimum of platinum or gold to maximize the intrinsic beauty of the stones.%% {{Innovation & Strategy}}$$ Graff only sells near flawless diamond jewellery. Skilled gem cutters with Graff have developed a special emerald cut that truncates the corners and gives a classic, rectangular shape to the stone. %% {{Business Statistics}}$$ • Graff’ diamond cutting and polishing centre in Johannesburg, South Africa is one of the largest workshops in the world with 300 skilled craftsmen. • Graff employs 200 highly skilled craftsmen in its manufacturing locations in Antwerp, Johannesburg, London, Mauritius and New York. Many of the craftsman have served their apprenticeship with the company. • Graff plans to open a flagship store in Kiev, Ukraine this year. • Graff retails its jewellery in 26 company owned stores worldwide as well as selected Saks outlets.
{{H. STERN}}%% H. Stern is the largest jewellery house in South America. Headquartered in Rio de Janeiro, Brazil, since 1945, it ranks among the five most prestigious jewellery brands. %% {{Success Mantra}}$$ Each piece of design jewellery is hand crafted. Change is the company’s success mantra with two new collections being launched every year.$$ According to Christian Hallot, H.Stern ambassador and advisor to the company’s board of directors, “The H.Stern design team regularly creates new gemstone cutting and polishing techniques.”%% {{History}}$$ Hans Stern (1922-2007), a Jewish immigrant, set up H Stern in 1945, to market coloured gemstones, amethysts, tourmalines and topazes, found in Brazil. $$ Obsessed with quality and workmanship, he created an International Warranty Certificate to attest to the quality of his jewels. He created an international interest in ‘coloured gemstones’, so that even today, coloured gemstones are called ‘Brazilian coloured stones’ even if these are not sourced in Brazil. Hans Stern became known as ‘King of the Coloured Gemstones.’
{{Product and Prices}}$$ According to Hallot, “Our price range is large and flexible. At the high end, we design pieces for women who want to make a personal style statement. At the other, our jewellery can be worn for going to work and the movies. %% {{Innovation & Strategy}}$$ Introduced the concept allowing customers to trade in unwanted gold pieces, as part payment on purchase of new jewellery that was replicated by jewellers around the world.$$ Opened Hans Stern’s private museum with a rare collection of tourmalines in more than 1100 shades of colour.$$ The company’s new headquarters housed every area in the manufacturing and retailing of fine jewellery, workshops, laboratories, training facilities, offices, museum and showrooms. $$ To counter the threat of the economic downturn, H.Stern offered jewellery purchase on instalments spread over 10 months.%% {{Business Statistics}}$$ • The company sells more than 200,000 pieces of jewellery annually. • It has a network of 165 company stores in 31 countries plus an additional 170 retail outlets through wholesale partners worldwide. • Has a staff of 2800 professionals of which, at least 50 craftsmen have been with the company for more than 20 years. • More than 50 per cent of the company’s business is located in Brazil.
Central Park by Harry Winston, Emerald and Diamond Five Stone Ring
{{HARRY WINSTON}}%% Harry Winston Inc., is a prestigious New York-based diamond jeweller and watch retailer with salons established in key world locations. $$ This company is the retail subsidiary of Harry Winston Diamond Corporation (HWDC), earlier known as Aber Diamond Corporation, a Toronto, Canada-based specialist diamond company focussed on the mining and retail segments of the diamond industry.%% {{Success Mantra}}$$ Harry Winston success mantra is its presence into the mining and retailing of diamonds.$$ HWDC owns a 40 per cent interest in the Diavik Diamond Mine, in Canada, a global supplier of rough diamonds.$$ Its presence in diamond mining offers a reliable source of high quality polished diamonds for its retail subsidiary.%% {{History}}$$ Harry Winston (1896--1978) an Ukraine immigrant in United States, learnt the trade in his father’s jewellery shop. He also designed and handcrafted jewellery. In 1920, he set up his first business, Premier Diamond Company on Fifth Avenue in New York. He bought the jewellery collection of one of the richest women in America and redesigned it. $$ Winston purchased the largest and best diamonds from all over the world from dealers, royalty, collectors and maharajahs. Many historically famous diamonds passed through his hands.$$ After Winston, his elder son Ronald, controlled the company while his younger son, a university drop out, loved sailing and sports cars. An ugly rift between the brothers led to Ronald buying out his brother’s share for US $ 44 million, funds for which came from a private equity group, that acquired a share in the company.$$ In 2003, Aber Diamond Corporation of Canada bought out the group’s share for US $85 million and acquired a 51 per cent stake in Harry Winston. It brought out the rest of the company for US $ 157 million. The name Aber was changed to HWDC. In May 2008, Ronald Winston formally exited the company.
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{{Products & Prices}}$$ Harry Winston retails a range of fine, handcrafted diamond and coloured stone jewellery and luxury watches. The company has recently opened a new watch-making facility in Geneva, Switzerland.$$ The opening price for a small pair of Harry Winston diamond earrings is US $3,700 with prices touching a million dollars and more for a single piece!%% {{Innovation & Strategy}}$$ In a growth initiative, Harry Winston plans to expand its international network of salons and introduce a broad range of luxury watches and handcrafted jewellery collections.%% {{Business Statistics}}$$ • HWDC operates 25 salons worldwide. • The company recorded an annual sales turnover of US $680 million, for the fiscal year ended January 31, 2008, of which sales from rough diamonds amounted to more than US $413 million. The company’s retail sales amount to US $ 265 million. Average sales amounts to US $40,000 and US $50,000. • The company’s annual net earnings amounted to 106 million as of January 2008.
{{TIFFANY & CO}}%% Headquartered in New York, the Tiffany brand is famous for jewellery, neatly packaged in its trademark blue box. As a brand, Tiffany is synonymous with engagement rings. $$ The company designs, manufactures and sells its jewellery exclusively through its stores and boutiques worldwide. Jewellery is sold through wholesale distributors, e-commerce enabled websites and mail catalogue, well known as the Blue Book. The company also sells fragrances, leather goods and accessories.%% {{Success Mantra}}$$ Tiffany attributes its success to the quality, sophistication, design and beauty of its products. %% {{History}}$$ Charles Lewis Tiffany (1812-1902) set up Tiffany and Company in 1837, as a small fancy goods store on borrowed business capital of US $ 1000. The shop sold handicrafts, stationery, knick knacks and costume jewellery. $$ When Tiffany bought a fancy, yellow 128.5 carat diamond and named it ‘The Tiffany Diamond’, his store became an emporium of luxury goods. Sales were only made in cash. $$ He also set up a shop in Paris and bought the French Crown jewels when the monarchy was overthrown, making Tiffany a home for diamond jewellery. After Tiffany management changed and the company went public.
Rings
{{Products & Prices}}$$ Tiffany sells jewellery, silverware, key chains, fragrances, leather goods and accessories available across various price ranges.%% {{Innovation & Strateg}} Tiffany regularly launches new product lines, design collections and store expansions. $$ Tiffany adds less expensive items like key chains and bookmarks In a downturn or high prices itself out of this market during an upturn.%% {{Business Statistics}}$$ • Tiffany operates 220 company stores and boutiques worldwide. • the company’s net worldwide sales revenue fell by 3 per cent to US $2.9 billion for the year ended January 2009 with net income falling by 76 per cent in the last quarter of this bad year. • Tiffany has 8,800 employees worldwide. • The company closed down its loss making Indesse stores, an outlet for exclusive pearl jewellery.
Van Cleef & Arpels
{{VAN CLEEF & ARPELS}}%% Van Cleef & Arpels designs and handcrafts fine jewellery, watches and perfumes. Managed by the Van Cleef & Arpels family for generations, it was taken over in 1999 by Swiss Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, that also owns the Cartier brand.%% {{Success Mantra}}$$ Creativity and collections are the company success mantra. Charlotte Gounant, press officer with Van Cleef & Arpels says, “We use the very best stones, purest and strongest in colour, and the best craftsmen. We launch two collections every year.”%% {{History}}$$ Van Cleef & Arpels was founded in 1896 by Salomon Arpels and his son-in-law Alfred Van Cleef. They opened their first boutique in 1906 at 22 Place Vendôme, Paris and registered the Van Cleef & Arpels trademark. Descendents of the family expanded the business into other countries until 1999, when it was taken over by Richemont.
{{Products & Prices}}$$ Van Cleef & Arpels uses rare and magnificent stones and each piece is specially and exquisitely handcrafted. Called high jewellery, each piece is priced more than US $100,000. %% {{Innovation & Strategy}}$$ The main plank of this company is creativity. It constantly innovates design and material to handcraft luxury couture jewellery using rare stones and materials. It has created the Zip necklace that can be opened and closed like a zip. It uses unusual materials like mother of pearl, snakewood and lacquer in its pieces.$$ It also innovates methods of stone cutting and setting. The company is known for having perfected the ‘mystery setting’, a fine paving procedure that uses fine gold or a platinum net to set diamonds and precious gem stones so that no claws are visible. The minimum use of metal enhances the reflection of light. (See picture).%% {{Business Statistics }}$$ • Van Cleef & Arpels has a network of 65 boutiques across four continents. • Van Cleef & Arpels regularly exhibits its magnificent pieces. Exhibitions are planned in New York city, Paris and Beijing. Together sales of Cartier and Van Cleef & Arpels brands accounted for nearly 50 per cent of sales turnover of the entire Richemont group in 2008. However, in 2009, sales of both these maisons, decreased by 14 per cent while operating profit decreased by 22 per cent to 349 million Euros.
{{OLD IS GOLD}}%% These top echelon jewellery houses have survived and delivered consistently in a global diamond jewellery market, currently valued at approximately US $68 billion with an average annual forecasted growth rate of 4 per cent.%% The resilience of these brands, their survival skills, have been honed by four main challenges, which they have faced with impunity to remain at the top.%% {{Challenge of Recession}}%% Over time, jewellery houses have survived several economic depressions and downturns. $$ The last two years, 2008 and 2009, have challenged the industry and wiped out many old timers from the market. Although, every company experienced a cut in revenues, strong visionaries have survived by widening market reach.$$ Francesco Trapani, CEO of Bulgari, says, “In these times, we sell more to be more profitable. To driver growth, we sell products for special occasions and everyday use.”%% {{Challenge From Counterfeits}}%% Top jewellery houses are aware that their exclusive, handcrafted ornament showcased by the stars, may soon be replicated indiscriminately for the hoi polloi. $$ Recently, a US federal court ruled against Tiffany that it was the company’s responsibility to protect its trademark and that an auction site like ebay was not responsible for the fake Tiffany products being sold online. $$ Although Tiffany has appealed, most companies have risen to the occasion by interpreting it as a demand for up market products.$$ Says Christian Hallot, H.Stern’s ambassador and advisor to the company’s board of directors, “Our price range is wide and flexible. Then why wear an imitation?
Bulgari too, has countered the problem of fakes through registering its products with a unique serial number.$$ At Graff Diamonds, all diamonds are laser-inscribed with the Graff logo and a Gemological Institute of America identification number. $$ As Gounant of Van Cleef & Arpels quips, “Exceptional creativity is our best weapon against fake jewellery and the economic crisis.” Probably imitation is the best form of flattery.%% {{Security Challenge}}%% In December 2008, three men wearing wigs and women’s clothes, entered a Harry Winston boutique in Paris and robbed it of more than US $100 million worth of jewellery and watches. In October 2007 too, robbers had got away with about US $25 million worth of jewellery.$$ At Graff Diamonds, London, in a huge heist two men posing as customers stole jewellery worth nearly £40 million or US $65 million. $$ Luxury jewellery houses are reluctant to disclose security arrangements or the amount spent on security but they are prepared for the worst with the best that technology offers.%% {{Customer Loyalty}}%% The most important challenge in retaining market share and brand value is preserving customer loyalty. This is essentially managed through marketing, while ensuring product quality and customer satisfaction. $$ These top companies therefore support charities and sponsor popular events to ensure visibility and recall besides loyalty.$$ For instance, at Cartier, customers for low end initiation products are treated so well that eventually they turn up to buy the high end pieces.$$ These challenges have prepared luxury companies for the future. Tomorrow, you may be a Harry Winston or a Graff customer.
Many television viewers around the world tuned into the live telecast of the 82nd Academy Awards recently, only to ogle at the best designer jewellery showcased on Hollywood stars and celebrities.$$ Cameras zoomed in on Titanic star Kate Winslet’s gorgeous neckline that looked stunning with the white and yellow diamond necklace, worth US $ 2.5 million, that came from Tiffany’s.$$ Jennifer Lopez’s diamond ear clips from Cartier received their fair share of adulation as did Julianne Moore’s diamond and platinum bracelet from Bulgari.$$ All these exquisite pieces came from top international jewellery houses that have introduced royalty and celebrities worldwide to exclusive jewellery handcrafted from fine metals and precious stones. $$ These jewellery houses have been around for decades and established themselves as the brands to aspire for.
Traffic by Harry Winston, Three Row Diamond Ring
{{BRAND VALUATION}} As a prominent ad man quips, “Top jewellery brands have probably acquired more market value over time, than the jewellery they produce.” %% While brand valuation is a business exercise for commercial companies, useful during mergers and acquisitions, tax planning and measuring a return on investment, it also helps marketing managers to create value for their brands.”%% Informs Sumeet Chugh, a Delhi based chartered accountant, “there are several methods to assess brand value. The top of the line method is a calculation of economic earnings generated by the brand, or its turnover. Other methods calculate the profits to earnings ratio while another method adds the investment made by the company in marketing or popularising the brand to earnings from the brand.”%% However, as many of the luxury jewellery houses are family owned enterprises and do not publish their turnover figures, there have been surveys done to calculate brand success.%% In 2009, New York-based Luxury Institute, an impartial and objective ratings and research organisation for luxury products, conducted a survey on leading jewellery brands among wealthy American consumers, with minimum net investable assets of US $2 million.%% |*The 20 jewellery brands that were considered were {{Asprey, Blue Nile, Boucheron, Buccellati, Bulgari, Carrera y Carrera, Cartier, Chanel, Chopard, David Yurman, DeBeers, Dior, FRED, Graff, Gucci, Harry Winston, Ivanka Trump, Mikimoto, Piaget, Tiffany, Van Cleef and Arpels.}}*|%% These brands were short listed as they were high on the Luxury Brand Status Index (LBSI). The LBSI incorporated four main ‘pillars’ of brand stature: quality as measured by the delivery of consistently superior quality products; exclusivity, social status associated with the product, when owned by people who are admired and respected; self enhancement, when the brand makes the consumer “feel special” across all aspects of the customer experience.
According to {{Milton Pedraza}}, founder and CEO of the Luxury Institute, |*“The strength of the brand, as weighed against these criteria, would influence the price premium on the brand, willingness to recommend the brand to others as well as being most likely to be considered for the next purchase.*|”%% Agrees {{Lyle M. Rose}}, president of United Brands LLC, Beverly Hills-based management consultants and marketing agents for diamond, jewellery and fashion brands, |*“When we compiled top 10 lists of leading jewellery brands, our rankings were based on factors that include product quality, design commitment, consumer value, consumer recognition, brand differentiation and marketing effectiveness.”*| Some of the Luxury Institute survey outcomes indicated that while Graff was the most exclusive brand, not many were familiar with the brand name. On the other hand, Tiffany came out as the most well-known jewellery brand that wealthy consumers are most likely to consider for purchase. Harry Winston was ranked as the brand most worthy of a price premium followed by Cartier and Van Cleef and Arpels, which scored high on quality and exclusivity. Buccellati was most worn by people who are admired and respected while Bulgari made its customers feel special. %% Get up close and personal with the top 10 international jewellery houses from foundation to fame, their future brand plans and bottom lines. These are the top brands that have carved a niche in the hearts of its high net worth customers, willing to pay significantly high premiums. %% After all, buying jewellery is always an emotional purchase, isn’t it?$$ |*The brands have been arranged alphabetically and do not reflect superiority within this elite list.*|$$ 1. Bourcheron,$$ 2. Buccellati,$$ 3. Bulgari,$$ 4. Cartier,$$ 5. Chopard,$$ 6. Graff Diamonds,$$ 7. H stern,$$ 8. Harry Winston,$$ 9. Tiffany,$$ 10. Van cleef and arpels.
BOUCHERON
{{|*MEET THE TOPPERS*|}} {{BOUCHERON}}%% The French House of Boucheron, headquartered in Paris, creates and markets jewellery, watches and luxury fragrances around the world. Owned and run by four generations of the Boucheron family, the company was acquired by the multi-brand luxury group, Gucci in 2000. High end jewellery remains its core business. Its pieces are inspired from culture and nature, with the snake being the House favourite.%% {{Success Mantra}}$$ Creative flexibility is the secret of its success. Boucheron developed an international system for diamond rating (BIRD), whereby diamond valuation is based on a combined analysis of colour and clarity. The company uses top 10 per cent of the diamonds for its jewellery.%% {{ History}}$$ In 1858, Frederic Boucheron (1830-1902) founded the House of Boucheron in Paris. Its high jewellery won awards and was popular among the wealthy and titled royalty. His son Louis Boucheron succeeded him. Four generations of the Boucheron family helped the company’s expansion and diversification into new product lines, until being acquired by the Gucci group in 2000.
Jewellery from Boucheron
{{Products & Prices}}$$ Boucheron manufactures and markets high jewellery, watches and luxury fragrances through its flagship Place Vendôme store, directly-operated stores, franchises, department stores and exclusive multi-brand boutiques. The company also sells online.%% The company designs and creates three kinds of jewellery lines. Its costume jewellery is priced less than 5000 euros. Its fine range of jewellery, with unique centrepiece stones of exceptional weight and quality, is priced at over 50,000 euros. Jewellery between these two price ranges uses gold and precious stones.%% {{Innovation & Strategy}}$$ Boucheron innovates with design, techniques, materials and products. It launched the first wristwatch with interchangeable straps. Its new eyewear collection uses gold and wood. %% The company created the world’s first high jewellery limited edition gold cell phone, based on its famous snake design and encrusted with precious stones, in a joint venture with the phone company, Vertu. %% {{Business Statistics}}$$ • Boucheron has 47 boutiques worldwide and 100 certified retailers.$$ • Boucheron accounts for less than 5 per cent of revenues in the Gucci group, that reported a turnover of 3.3 billion euros for the year 2009, and employs more than 11,000 employees across the world.
Buccellati
{{BUCCELLATI}}%% Buccellati is a Milan, Italy based, family run top jewellery brand. %% {{Success Mantra}}$$ The company’s focus is on luxury and exclusivity. Its techniques are traditional. It handcrafts its exclusive, customised pieces, using centuries old techniques. For instance, a candlestick or a chess set can sometimes take years to complete.%% {{History}}$$ Mario Buccellati took over the jewellery firm where he worked and renamed it Bucellati in 1919. Inspired by Renaissance craftsmen, Buccellati created a unique style of texture engraving that has become its trademark.$$ On Mario Buccellati’s death, the business was split among his five sons, each of whom managed a location. They expanded the business and opened new shops around the world. Today, the company is in the hands of the third generation.
{{Products & Prices}}$$ Buccellati is known for its signature lace rings and necklaces, priced between US $15,000 and US $45,000. Ancient piercing techniques are used on these pieces to create a lace or a honeycomb effect. It also uses mixed metals like gold and platinum or silver and gold, in its exclusive designs.%% {{Innovation & Strategy}}$$ Buccellatti believes in tradition and is known for its unique style in design, texture and intricate engraving work. Its craftsmen, qualified in the House style, are the sons and grandchildren of craftsmen who worked with the House when it was established. Its jewellery is still produced in small workshops.%% {{Business Statistics}}$$ • Buccellati has around 250 best craftsmen in Italy. • The company makes 3,000 jewellery pieces a year. • While the slowdown has impacted sale of its rings and necklaces priced between 10,000 euros and 30,000 euros, demand for high end jewellery priced above 100,000 euros has not suffered. • The company enjoys good growth in India, China and Russia.
SHOP_GEORGEV_EXTERIOR
{{BULGARI}}%% Headquartered in Italy, Bulgari, a family controlled public company, is an international luxury brand in jewellery, toiletries, accessories and hotels. It is rated as the third largest jeweller in the world.%% {{Success Mantra}}$$ According to Bulgari’s CEO, Francesco Trapani, “We are a jeweller that sells products for everyday use, not just for special occasions. This is the secret of our success.”%% {{History}}$$ The founder of Bulgari, Soutirio Boulgaris, (1857-1932) was a Greek silversmith. He founded a variety store in Italy, in 1880, selling tableware and silver accessories. He went on to open a huge shop at No. 10 Via Condotti in Rome, the company headquarters. Bulgari became a high class jewellery house.$$ After him, his sons, Giorgio and Costantino took over the company and formally changed the company logo to “BVLGARI,” an application of the traditional Roman alphabet.$$ The family's third generation, Giorgio's three sons Paolo, Gianni, and Nicola, took over the company in 1967 and expanded internationally. Paulo and Nicola, bought out eldest brother Gianni, who gave up his stake in Bulgari to set up Fila, a footwear company. Their nephew Franscesco Trapani was appointed CEO and is responsible for aggressive expansion.
Jewellery by Bulgari
{{Products & Prices}}$$ The company, traditionally into jewellery and watches, has expanded its range of products to include perfumes, silk scarves, handbags, eye ware and accessories. Consumers have a choice of more than 800 styles in each product category. Items range from under US $200 to about US $38,000. %% {{Innovation & Strategy}}$$ Each of its unique collections are based on a theme. New lines in watches, that account for 30 per cent of the turnover, are introduced every year. Regular diversification into new product lines. Environment friendly practices.%% {{Hotels}}$$ The company has a joint venture with hotel chain, Marriott International, to launch Bulgari Hotels and Resorts in Milan and Bali. Bulgari supplies all the luxury goods used in the rooms and guests can order Bulgari jewellery from room service! Bulgari also supplies luxury goods aboard ships.%% {{Business Statistics}}$$ • Bulgari sells its products through 252 boutiques of which 155 are company owned. • For the year ended 2009, Bulgari recorded a sales turnover of 926.6 million Euro, as against revenues in 2008 of E 1,075 million Euro and a net income of $115.9 million. About 43 per cent of the revenues came from jewellery. • Bulgari recorded a net loss of 47 million Euro compared to a profit of 82.9 million Euro in 2008. • Bulgari employs more than 4000 employees worldwide.
Jewellery at cartier
{{CARTIER}}%% Swiss company Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, owns Cartier, the brand with the largest share in the Richemont bottom line. Van Cleef and Arpels is anotherRichemont brand. Cartier is known for its handcrafted jewellery and watches. It is the world’s second largest watch producer after Rolex.”%% {{Success Mantra}}$$ Cartier’s success came as a stroke of marketing genius when it ventured from luxury accessories to a line of affordable products known as ‘Les Must de Cartier’ or You must buy a Cartier. From lighters, pens watches, leather goods and sunglasses, these items sold fast. Strategically, the brand was no longer confined to royalty.$$ According to Bernard Fornas, CEO, Cartier, “The affordable products, starting at US $200 are an initiation strategy of bringing new customers to a Cartier boutique.”%% {{History}}$$ Louis Francois Cartier (1819-1904) founded Cartier, as an upscale jewellery store in Paris in 1847. For more than 120 years, the Cartier family run the company, until the 1970s when it was taken over in a fragmented state and put together by the Richemont group, earlier known as Vendome. %% {{Products & Prices}}$$ Cartier has 10 different product lines embracing jewellery, timepieces, watches, perfume, leather goods, sunglasses, apparel and accessories. However, nearly three fourths of the Cartier turnover comes from jewellery and watches.%% {{Innovation & Strategy}}$$ Cartier has a long history of innovation. It designed and made the first flat men’s wristwatch.$$ “Luxury is innovation,” says Fornas. “We will continue to find new ways of doing things, with new materials, shapes and combinations while respecting the DNA of the brand,” he adds.%% {{Business Statistics}}$$ • Cartier has 300 boutiques across the world. • Cartier’s design department employs 30 people from 11 countries. • In 2009, Cartier reported decline in sales from its own boutiques and third party retailers.
{{CHOPARD}}%% Chopard is a privately owned, Geneva-based luxury watch, jewellery and fashion accessories company, controlled by the Scheufele family. %% {{Success Mantra}}$$ “Passion for excellence is the company motto,” according to Daphne` Secretan, press officer, Chopard, “which is expressed through its product quality, tradition, innovation and commitment to philanthropic activities.”%% {{History}}$$ Louis-Ulysse Chopard (1836-1919), a watchmaker, founded Chopard, as a small shop in Sonvillier, Switzerland in 1860. Chopard’s motto was “Quality with the maximum possible work by hand,” and each watch was marked with his initials L.U.C. $$ Two Chopard generations managed the business until 1963, when Andre-Paul Chopard, the founder’s grandson, sold the company to Karl Scheufele, a goldsmith and watchmaker in Germany.$$ Scheufele carried on the Chopard brand name and transformed the company into a high end jewellery and watch brand.
Haute_Joaillerie_Necklace
{{Products & Prices}}$$ Chopard developed an extensive range of products including collections of watches and jewellery, perfume, eyewear, leather, silk scarves, china and silverware besides luxury fountain pens, Twister and Racing. Chopard distributes its products through 13 subsidiaries around the world.%% {{Innovation & Strategy}}$$ Louis Chopard was a traditional watchmaker who made the movements for its pocket watches. However, after Scheufele took over the company, it started to buy movements from different companies. Chopard once again wants to be a true manufacturer and qualify as haute horlogerie.$$ Chopard plans to introduce a new line of luxury watches set with rare diamonds in a partnership with William Goldberg Diamond Corporation, an international supplier of precious stones.$$ The company supports various charities and sponsors the Mille Miglia, the famous motor race in Italy besides being the official partner of the Canne Film Festival. $$ {{Business Statistics}}$$ • Chopard has 123 boutiques and 1600 points of sale worldwide. It employs about 1750 employees worldwide. • The company reported a turnover of more than CHF 500 million Swiss francs or around US $468 million for 2008. • The brand produces 150,000 pieces every year, including watches and jewellery. • Chopard expanded its Geneva factory, extended its Germany factory, bought over a gold chain factory, and built a factory in Fleurier to produce LUC watches. • Celebrating its sesquicentennial year at Baselworld in March, Chopard launched its 150 piece High Jewellery Animal World collection and four new L.U.C watches with four new calibres. • Its most popular products are the Happy Sport Ladies’ watches and the 1000 Miglia Men’s watches.
{{GRAFF}}%% Graff Diamonds are a global jewellery and watch company headquartered in London. Graff specialises in high quality, flawless stones, especially those steeped in myth and mystery.$$ Founded by Laurence Graff in 1960, its world wide operations range from cutting and polishing to the manufacture of fine high end jewellery, retailed from its chain of 26 stores worldwide. %% {{Success Mantra}}$$ Large, flawless stones, skilled craftsmen and the company’s vertically integrated model are the keys to its success. $$ Graff sources the stones from mines in Canada, Australia, Russia, South America and South Africa. The stones are assessed to release the full potential, cut and polished and set into fine jewellery, at the company’s manufacturing operations in Johannesburg, Antwerp, Mauritius and New York. Rare gems and the best diamonds move to Graff's headquarters in Mayfair, London, to be set into iconic jewellery.%% {{History}}$$ Laurence Graff, (1938) designed jewellery and sold it to jewellers all over England. He eventually set up Graff Diamonds in 1960 that sold to the rich and famous. Known as the Prince of Jewellers, Laurence Graff has owned the world’s most fabulous gemstones.
graff-superstar-ladies-watch
{{Products & Prices}}$$ All Graff jewellery is handmade in its workshops. Each piece is set with the minimum of platinum or gold to maximize the intrinsic beauty of the stones.%% {{Innovation & Strategy}}$$ Graff only sells near flawless diamond jewellery. Skilled gem cutters with Graff have developed a special emerald cut that truncates the corners and gives a classic, rectangular shape to the stone. %% {{Business Statistics}}$$ • Graff’ diamond cutting and polishing centre in Johannesburg, South Africa is one of the largest workshops in the world with 300 skilled craftsmen. • Graff employs 200 highly skilled craftsmen in its manufacturing locations in Antwerp, Johannesburg, London, Mauritius and New York. Many of the craftsman have served their apprenticeship with the company. • Graff plans to open a flagship store in Kiev, Ukraine this year. • Graff retails its jewellery in 26 company owned stores worldwide as well as selected Saks outlets.
{{H. STERN}}%% H. Stern is the largest jewellery house in South America. Headquartered in Rio de Janeiro, Brazil, since 1945, it ranks among the five most prestigious jewellery brands. %% {{Success Mantra}}$$ Each piece of design jewellery is hand crafted. Change is the company’s success mantra with two new collections being launched every year.$$ According to Christian Hallot, H.Stern ambassador and advisor to the company’s board of directors, “The H.Stern design team regularly creates new gemstone cutting and polishing techniques.”%% {{History}}$$ Hans Stern (1922-2007), a Jewish immigrant, set up H Stern in 1945, to market coloured gemstones, amethysts, tourmalines and topazes, found in Brazil. $$ Obsessed with quality and workmanship, he created an International Warranty Certificate to attest to the quality of his jewels. He created an international interest in ‘coloured gemstones’, so that even today, coloured gemstones are called ‘Brazilian coloured stones’ even if these are not sourced in Brazil. Hans Stern became known as ‘King of the Coloured Gemstones.’
{{Product and Prices}}$$ According to Hallot, “Our price range is large and flexible. At the high end, we design pieces for women who want to make a personal style statement. At the other, our jewellery can be worn for going to work and the movies. %% {{Innovation & Strategy}}$$ Introduced the concept allowing customers to trade in unwanted gold pieces, as part payment on purchase of new jewellery that was replicated by jewellers around the world.$$ Opened Hans Stern’s private museum with a rare collection of tourmalines in more than 1100 shades of colour.$$ The company’s new headquarters housed every area in the manufacturing and retailing of fine jewellery, workshops, laboratories, training facilities, offices, museum and showrooms. $$ To counter the threat of the economic downturn, H.Stern offered jewellery purchase on instalments spread over 10 months.%% {{Business Statistics}}$$ • The company sells more than 200,000 pieces of jewellery annually. • It has a network of 165 company stores in 31 countries plus an additional 170 retail outlets through wholesale partners worldwide. • Has a staff of 2800 professionals of which, at least 50 craftsmen have been with the company for more than 20 years. • More than 50 per cent of the company’s business is located in Brazil.
Central Park by Harry Winston, Emerald and Diamond Five Stone Ring
{{HARRY WINSTON}}%% Harry Winston Inc., is a prestigious New York-based diamond jeweller and watch retailer with salons established in key world locations. $$ This company is the retail subsidiary of Harry Winston Diamond Corporation (HWDC), earlier known as Aber Diamond Corporation, a Toronto, Canada-based specialist diamond company focussed on the mining and retail segments of the diamond industry.%% {{Success Mantra}}$$ Harry Winston success mantra is its presence into the mining and retailing of diamonds.$$ HWDC owns a 40 per cent interest in the Diavik Diamond Mine, in Canada, a global supplier of rough diamonds.$$ Its presence in diamond mining offers a reliable source of high quality polished diamonds for its retail subsidiary.%% {{History}}$$ Harry Winston (1896--1978) an Ukraine immigrant in United States, learnt the trade in his father’s jewellery shop. He also designed and handcrafted jewellery. In 1920, he set up his first business, Premier Diamond Company on Fifth Avenue in New York. He bought the jewellery collection of one of the richest women in America and redesigned it. $$ Winston purchased the largest and best diamonds from all over the world from dealers, royalty, collectors and maharajahs. Many historically famous diamonds passed through his hands.$$ After Winston, his elder son Ronald, controlled the company while his younger son, a university drop out, loved sailing and sports cars. An ugly rift between the brothers led to Ronald buying out his brother’s share for US $ 44 million, funds for which came from a private equity group, that acquired a share in the company.$$ In 2003, Aber Diamond Corporation of Canada bought out the group’s share for US $85 million and acquired a 51 per cent stake in Harry Winston. It brought out the rest of the company for US $ 157 million. The name Aber was changed to HWDC. In May 2008, Ronald Winston formally exited the company.
NEW_LACE_1_r2
{{Products & Prices}}$$ Harry Winston retails a range of fine, handcrafted diamond and coloured stone jewellery and luxury watches. The company has recently opened a new watch-making facility in Geneva, Switzerland.$$ The opening price for a small pair of Harry Winston diamond earrings is US $3,700 with prices touching a million dollars and more for a single piece!%% {{Innovation & Strategy}}$$ In a growth initiative, Harry Winston plans to expand its international network of salons and introduce a broad range of luxury watches and handcrafted jewellery collections.%% {{Business Statistics}}$$ • HWDC operates 25 salons worldwide. • The company recorded an annual sales turnover of US $680 million, for the fiscal year ended January 31, 2008, of which sales from rough diamonds amounted to more than US $413 million. The company’s retail sales amount to US $ 265 million. Average sales amounts to US $40,000 and US $50,000. • The company’s annual net earnings amounted to 106 million as of January 2008.
{{TIFFANY & CO}}%% Headquartered in New York, the Tiffany brand is famous for jewellery, neatly packaged in its trademark blue box. As a brand, Tiffany is synonymous with engagement rings. $$ The company designs, manufactures and sells its jewellery exclusively through its stores and boutiques worldwide. Jewellery is sold through wholesale distributors, e-commerce enabled websites and mail catalogue, well known as the Blue Book. The company also sells fragrances, leather goods and accessories.%% {{Success Mantra}}$$ Tiffany attributes its success to the quality, sophistication, design and beauty of its products. %% {{History}}$$ Charles Lewis Tiffany (1812-1902) set up Tiffany and Company in 1837, as a small fancy goods store on borrowed business capital of US $ 1000. The shop sold handicrafts, stationery, knick knacks and costume jewellery. $$ When Tiffany bought a fancy, yellow 128.5 carat diamond and named it ‘The Tiffany Diamond’, his store became an emporium of luxury goods. Sales were only made in cash. $$ He also set up a shop in Paris and bought the French Crown jewels when the monarchy was overthrown, making Tiffany a home for diamond jewellery. After Tiffany management changed and the company went public.
Rings
{{Products & Prices}}$$ Tiffany sells jewellery, silverware, key chains, fragrances, leather goods and accessories available across various price ranges.%% {{Innovation & Strateg}} Tiffany regularly launches new product lines, design collections and store expansions. $$ Tiffany adds less expensive items like key chains and bookmarks In a downturn or high prices itself out of this market during an upturn.%% {{Business Statistics}}$$ • Tiffany operates 220 company stores and boutiques worldwide. • the company’s net worldwide sales revenue fell by 3 per cent to US $2.9 billion for the year ended January 2009 with net income falling by 76 per cent in the last quarter of this bad year. • Tiffany has 8,800 employees worldwide. • The company closed down its loss making Indesse stores, an outlet for exclusive pearl jewellery.
Van Cleef & Arpels
{{VAN CLEEF & ARPELS}}%% Van Cleef & Arpels designs and handcrafts fine jewellery, watches and perfumes. Managed by the Van Cleef & Arpels family for generations, it was taken over in 1999 by Swiss Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, that also owns the Cartier brand.%% {{Success Mantra}}$$ Creativity and collections are the company success mantra. Charlotte Gounant, press officer with Van Cleef & Arpels says, “We use the very best stones, purest and strongest in colour, and the best craftsmen. We launch two collections every year.”%% {{History}}$$ Van Cleef & Arpels was founded in 1896 by Salomon Arpels and his son-in-law Alfred Van Cleef. They opened their first boutique in 1906 at 22 Place Vendôme, Paris and registered the Van Cleef & Arpels trademark. Descendents of the family expanded the business into other countries until 1999, when it was taken over by Richemont.
{{Products & Prices}}$$ Van Cleef & Arpels uses rare and magnificent stones and each piece is specially and exquisitely handcrafted. Called high jewellery, each piece is priced more than US $100,000. %% {{Innovation & Strategy}}$$ The main plank of this company is creativity. It constantly innovates design and material to handcraft luxury couture jewellery using rare stones and materials. It has created the Zip necklace that can be opened and closed like a zip. It uses unusual materials like mother of pearl, snakewood and lacquer in its pieces.$$ It also innovates methods of stone cutting and setting. The company is known for having perfected the ‘mystery setting’, a fine paving procedure that uses fine gold or a platinum net to set diamonds and precious gem stones so that no claws are visible. The minimum use of metal enhances the reflection of light. (See picture).%% {{Business Statistics }}$$ • Van Cleef & Arpels has a network of 65 boutiques across four continents. • Van Cleef & Arpels regularly exhibits its magnificent pieces. Exhibitions are planned in New York city, Paris and Beijing. Together sales of Cartier and Van Cleef & Arpels brands accounted for nearly 50 per cent of sales turnover of the entire Richemont group in 2008. However, in 2009, sales of both these maisons, decreased by 14 per cent while operating profit decreased by 22 per cent to 349 million Euros.
{{OLD IS GOLD}}%% These top echelon jewellery houses have survived and delivered consistently in a global diamond jewellery market, currently valued at approximately US $68 billion with an average annual forecasted growth rate of 4 per cent.%% The resilience of these brands, their survival skills, have been honed by four main challenges, which they have faced with impunity to remain at the top.%% {{Challenge of Recession}}%% Over time, jewellery houses have survived several economic depressions and downturns. $$ The last two years, 2008 and 2009, have challenged the industry and wiped out many old timers from the market. Although, every company experienced a cut in revenues, strong visionaries have survived by widening market reach.$$ Francesco Trapani, CEO of Bulgari, says, “In these times, we sell more to be more profitable. To driver growth, we sell products for special occasions and everyday use.”%% {{Challenge From Counterfeits}}%% Top jewellery houses are aware that their exclusive, handcrafted ornament showcased by the stars, may soon be replicated indiscriminately for the hoi polloi. $$ Recently, a US federal court ruled against Tiffany that it was the company’s responsibility to protect its trademark and that an auction site like ebay was not responsible for the fake Tiffany products being sold online. $$ Although Tiffany has appealed, most companies have risen to the occasion by interpreting it as a demand for up market products.$$ Says Christian Hallot, H.Stern’s ambassador and advisor to the company’s board of directors, “Our price range is wide and flexible. Then why wear an imitation?
Bulgari too, has countered the problem of fakes through registering its products with a unique serial number.$$ At Graff Diamonds, all diamonds are laser-inscribed with the Graff logo and a Gemological Institute of America identification number. $$ As Gounant of Van Cleef & Arpels quips, “Exceptional creativity is our best weapon against fake jewellery and the economic crisis.” Probably imitation is the best form of flattery.%% {{Security Challenge}}%% In December 2008, three men wearing wigs and women’s clothes, entered a Harry Winston boutique in Paris and robbed it of more than US $100 million worth of jewellery and watches. In October 2007 too, robbers had got away with about US $25 million worth of jewellery.$$ At Graff Diamonds, London, in a huge heist two men posing as customers stole jewellery worth nearly £40 million or US $65 million. $$ Luxury jewellery houses are reluctant to disclose security arrangements or the amount spent on security but they are prepared for the worst with the best that technology offers.%% {{Customer Loyalty}}%% The most important challenge in retaining market share and brand value is preserving customer loyalty. This is essentially managed through marketing, while ensuring product quality and customer satisfaction. $$ These top companies therefore support charities and sponsor popular events to ensure visibility and recall besides loyalty.$$ For instance, at Cartier, customers for low end initiation products are treated so well that eventually they turn up to buy the high end pieces.$$ These challenges have prepared luxury companies for the future. Tomorrow, you may be a Harry Winston or a Graff customer.
Many television viewers around the world tuned into the live telecast of the 82nd Academy Awards recently, only to ogle at the best designer jewellery showcased on Hollywood stars and celebrities.$$ Cameras zoomed in on Titanic star Kate Winslet’s gorgeous neckline that looked stunning with the white and yellow diamond necklace, worth US $ 2.5 million, that came from Tiffany’s.$$ Jennifer Lopez’s diamond ear clips from Cartier received their fair share of adulation as did Julianne Moore’s diamond and platinum bracelet from Bulgari.$$ All these exquisite pieces came from top international jewellery houses that have introduced royalty and celebrities worldwide to exclusive jewellery handcrafted from fine metals and precious stones. $$ These jewellery houses have been around for decades and established themselves as the brands to aspire for.
Traffic by Harry Winston, Three Row Diamond Ring
{{BRAND VALUATION}} As a prominent ad man quips, “Top jewellery brands have probably acquired more market value over time, than the jewellery they produce.” %% While brand valuation is a business exercise for commercial companies, useful during mergers and acquisitions, tax planning and measuring a return on investment, it also helps marketing managers to create value for their brands.”%% Informs Sumeet Chugh, a Delhi based chartered accountant, “there are several methods to assess brand value. The top of the line method is a calculation of economic earnings generated by the brand, or its turnover. Other methods calculate the profits to earnings ratio while another method adds the investment made by the company in marketing or popularising the brand to earnings from the brand.”%% However, as many of the luxury jewellery houses are family owned enterprises and do not publish their turnover figures, there have been surveys done to calculate brand success.%% In 2009, New York-based Luxury Institute, an impartial and objective ratings and research organisation for luxury products, conducted a survey on leading jewellery brands among wealthy American consumers, with minimum net investable assets of US $2 million.%% |*The 20 jewellery brands that were considered were {{Asprey, Blue Nile, Boucheron, Buccellati, Bulgari, Carrera y Carrera, Cartier, Chanel, Chopard, David Yurman, DeBeers, Dior, FRED, Graff, Gucci, Harry Winston, Ivanka Trump, Mikimoto, Piaget, Tiffany, Van Cleef and Arpels.}}*|%% These brands were short listed as they were high on the Luxury Brand Status Index (LBSI). The LBSI incorporated four main ‘pillars’ of brand stature: quality as measured by the delivery of consistently superior quality products; exclusivity, social status associated with the product, when owned by people who are admired and respected; self enhancement, when the brand makes the consumer “feel special” across all aspects of the customer experience.
According to {{Milton Pedraza}}, founder and CEO of the Luxury Institute, |*“The strength of the brand, as weighed against these criteria, would influence the price premium on the brand, willingness to recommend the brand to others as well as being most likely to be considered for the next purchase.*|”%% Agrees {{Lyle M. Rose}}, president of United Brands LLC, Beverly Hills-based management consultants and marketing agents for diamond, jewellery and fashion brands, |*“When we compiled top 10 lists of leading jewellery brands, our rankings were based on factors that include product quality, design commitment, consumer value, consumer recognition, brand differentiation and marketing effectiveness.”*| Some of the Luxury Institute survey outcomes indicated that while Graff was the most exclusive brand, not many were familiar with the brand name. On the other hand, Tiffany came out as the most well-known jewellery brand that wealthy consumers are most likely to consider for purchase. Harry Winston was ranked as the brand most worthy of a price premium followed by Cartier and Van Cleef and Arpels, which scored high on quality and exclusivity. Buccellati was most worn by people who are admired and respected while Bulgari made its customers feel special. %% Get up close and personal with the top 10 international jewellery houses from foundation to fame, their future brand plans and bottom lines. These are the top brands that have carved a niche in the hearts of its high net worth customers, willing to pay significantly high premiums. %% After all, buying jewellery is always an emotional purchase, isn’t it?$$ |*The brands have been arranged alphabetically and do not reflect superiority within this elite list.*|$$ 1. Bourcheron,$$ 2. Buccellati,$$ 3. Bulgari,$$ 4. Cartier,$$ 5. Chopard,$$ 6. Graff Diamonds,$$ 7. H stern,$$ 8. Harry Winston,$$ 9. Tiffany,$$ 10. Van cleef and arpels.
BOUCHERON
{{|*MEET THE TOPPERS*|}} {{BOUCHERON}}%% The French House of Boucheron, headquartered in Paris, creates and markets jewellery, watches and luxury fragrances around the world. Owned and run by four generations of the Boucheron family, the company was acquired by the multi-brand luxury group, Gucci in 2000. High end jewellery remains its core business. Its pieces are inspired from culture and nature, with the snake being the House favourite.%% {{Success Mantra}}$$ Creative flexibility is the secret of its success. Boucheron developed an international system for diamond rating (BIRD), whereby diamond valuation is based on a combined analysis of colour and clarity. The company uses top 10 per cent of the diamonds for its jewellery.%% {{ History}}$$ In 1858, Frederic Boucheron (1830-1902) founded the House of Boucheron in Paris. Its high jewellery won awards and was popular among the wealthy and titled royalty. His son Louis Boucheron succeeded him. Four generations of the Boucheron family helped the company’s expansion and diversification into new product lines, until being acquired by the Gucci group in 2000.
Jewellery from Boucheron
{{Products & Prices}}$$ Boucheron manufactures and markets high jewellery, watches and luxury fragrances through its flagship Place Vendôme store, directly-operated stores, franchises, department stores and exclusive multi-brand boutiques. The company also sells online.%% The company designs and creates three kinds of jewellery lines. Its costume jewellery is priced less than 5000 euros. Its fine range of jewellery, with unique centrepiece stones of exceptional weight and quality, is priced at over 50,000 euros. Jewellery between these two price ranges uses gold and precious stones.%% {{Innovation & Strategy}}$$ Boucheron innovates with design, techniques, materials and products. It launched the first wristwatch with interchangeable straps. Its new eyewear collection uses gold and wood. %% The company created the world’s first high jewellery limited edition gold cell phone, based on its famous snake design and encrusted with precious stones, in a joint venture with the phone company, Vertu. %% {{Business Statistics}}$$ • Boucheron has 47 boutiques worldwide and 100 certified retailers.$$ • Boucheron accounts for less than 5 per cent of revenues in the Gucci group, that reported a turnover of 3.3 billion euros for the year 2009, and employs more than 11,000 employees across the world.
Buccellati
{{BUCCELLATI}}%% Buccellati is a Milan, Italy based, family run top jewellery brand. %% {{Success Mantra}}$$ The company’s focus is on luxury and exclusivity. Its techniques are traditional. It handcrafts its exclusive, customised pieces, using centuries old techniques. For instance, a candlestick or a chess set can sometimes take years to complete.%% {{History}}$$ Mario Buccellati took over the jewellery firm where he worked and renamed it Bucellati in 1919. Inspired by Renaissance craftsmen, Buccellati created a unique style of texture engraving that has become its trademark.$$ On Mario Buccellati’s death, the business was split among his five sons, each of whom managed a location. They expanded the business and opened new shops around the world. Today, the company is in the hands of the third generation.
{{Products & Prices}}$$ Buccellati is known for its signature lace rings and necklaces, priced between US $15,000 and US $45,000. Ancient piercing techniques are used on these pieces to create a lace or a honeycomb effect. It also uses mixed metals like gold and platinum or silver and gold, in its exclusive designs.%% {{Innovation & Strategy}}$$ Buccellatti believes in tradition and is known for its unique style in design, texture and intricate engraving work. Its craftsmen, qualified in the House style, are the sons and grandchildren of craftsmen who worked with the House when it was established. Its jewellery is still produced in small workshops.%% {{Business Statistics}}$$ • Buccellati has around 250 best craftsmen in Italy. • The company makes 3,000 jewellery pieces a year. • While the slowdown has impacted sale of its rings and necklaces priced between 10,000 euros and 30,000 euros, demand for high end jewellery priced above 100,000 euros has not suffered. • The company enjoys good growth in India, China and Russia.
SHOP_GEORGEV_EXTERIOR
{{BULGARI}}%% Headquartered in Italy, Bulgari, a family controlled public company, is an international luxury brand in jewellery, toiletries, accessories and hotels. It is rated as the third largest jeweller in the world.%% {{Success Mantra}}$$ According to Bulgari’s CEO, Francesco Trapani, “We are a jeweller that sells products for everyday use, not just for special occasions. This is the secret of our success.”%% {{History}}$$ The founder of Bulgari, Soutirio Boulgaris, (1857-1932) was a Greek silversmith. He founded a variety store in Italy, in 1880, selling tableware and silver accessories. He went on to open a huge shop at No. 10 Via Condotti in Rome, the company headquarters. Bulgari became a high class jewellery house.$$ After him, his sons, Giorgio and Costantino took over the company and formally changed the company logo to “BVLGARI,” an application of the traditional Roman alphabet.$$ The family's third generation, Giorgio's three sons Paolo, Gianni, and Nicola, took over the company in 1967 and expanded internationally. Paulo and Nicola, bought out eldest brother Gianni, who gave up his stake in Bulgari to set up Fila, a footwear company. Their nephew Franscesco Trapani was appointed CEO and is responsible for aggressive expansion.
Jewellery by Bulgari
{{Products & Prices}}$$ The company, traditionally into jewellery and watches, has expanded its range of products to include perfumes, silk scarves, handbags, eye ware and accessories. Consumers have a choice of more than 800 styles in each product category. Items range from under US $200 to about US $38,000. %% {{Innovation & Strategy}}$$ Each of its unique collections are based on a theme. New lines in watches, that account for 30 per cent of the turnover, are introduced every year. Regular diversification into new product lines. Environment friendly practices.%% {{Hotels}}$$ The company has a joint venture with hotel chain, Marriott International, to launch Bulgari Hotels and Resorts in Milan and Bali. Bulgari supplies all the luxury goods used in the rooms and guests can order Bulgari jewellery from room service! Bulgari also supplies luxury goods aboard ships.%% {{Business Statistics}}$$ • Bulgari sells its products through 252 boutiques of which 155 are company owned. • For the year ended 2009, Bulgari recorded a sales turnover of 926.6 million Euro, as against revenues in 2008 of E 1,075 million Euro and a net income of $115.9 million. About 43 per cent of the revenues came from jewellery. • Bulgari recorded a net loss of 47 million Euro compared to a profit of 82.9 million Euro in 2008. • Bulgari employs more than 4000 employees worldwide.
Jewellery at cartier
{{CARTIER}}%% Swiss company Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, owns Cartier, the brand with the largest share in the Richemont bottom line. Van Cleef and Arpels is anotherRichemont brand. Cartier is known for its handcrafted jewellery and watches. It is the world’s second largest watch producer after Rolex.”%% {{Success Mantra}}$$ Cartier’s success came as a stroke of marketing genius when it ventured from luxury accessories to a line of affordable products known as ‘Les Must de Cartier’ or You must buy a Cartier. From lighters, pens watches, leather goods and sunglasses, these items sold fast. Strategically, the brand was no longer confined to royalty.$$ According to Bernard Fornas, CEO, Cartier, “The affordable products, starting at US $200 are an initiation strategy of bringing new customers to a Cartier boutique.”%% {{History}}$$ Louis Francois Cartier (1819-1904) founded Cartier, as an upscale jewellery store in Paris in 1847. For more than 120 years, the Cartier family run the company, until the 1970s when it was taken over in a fragmented state and put together by the Richemont group, earlier known as Vendome. %% {{Products & Prices}}$$ Cartier has 10 different product lines embracing jewellery, timepieces, watches, perfume, leather goods, sunglasses, apparel and accessories. However, nearly three fourths of the Cartier turnover comes from jewellery and watches.%% {{Innovation & Strategy}}$$ Cartier has a long history of innovation. It designed and made the first flat men’s wristwatch.$$ “Luxury is innovation,” says Fornas. “We will continue to find new ways of doing things, with new materials, shapes and combinations while respecting the DNA of the brand,” he adds.%% {{Business Statistics}}$$ • Cartier has 300 boutiques across the world. • Cartier’s design department employs 30 people from 11 countries. • In 2009, Cartier reported decline in sales from its own boutiques and third party retailers.
{{CHOPARD}}%% Chopard is a privately owned, Geneva-based luxury watch, jewellery and fashion accessories company, controlled by the Scheufele family. %% {{Success Mantra}}$$ “Passion for excellence is the company motto,” according to Daphne` Secretan, press officer, Chopard, “which is expressed through its product quality, tradition, innovation and commitment to philanthropic activities.”%% {{History}}$$ Louis-Ulysse Chopard (1836-1919), a watchmaker, founded Chopard, as a small shop in Sonvillier, Switzerland in 1860. Chopard’s motto was “Quality with the maximum possible work by hand,” and each watch was marked with his initials L.U.C. $$ Two Chopard generations managed the business until 1963, when Andre-Paul Chopard, the founder’s grandson, sold the company to Karl Scheufele, a goldsmith and watchmaker in Germany.$$ Scheufele carried on the Chopard brand name and transformed the company into a high end jewellery and watch brand.
Haute_Joaillerie_Necklace
{{Products & Prices}}$$ Chopard developed an extensive range of products including collections of watches and jewellery, perfume, eyewear, leather, silk scarves, china and silverware besides luxury fountain pens, Twister and Racing. Chopard distributes its products through 13 subsidiaries around the world.%% {{Innovation & Strategy}}$$ Louis Chopard was a traditional watchmaker who made the movements for its pocket watches. However, after Scheufele took over the company, it started to buy movements from different companies. Chopard once again wants to be a true manufacturer and qualify as haute horlogerie.$$ Chopard plans to introduce a new line of luxury watches set with rare diamonds in a partnership with William Goldberg Diamond Corporation, an international supplier of precious stones.$$ The company supports various charities and sponsors the Mille Miglia, the famous motor race in Italy besides being the official partner of the Canne Film Festival. $$ {{Business Statistics}}$$ • Chopard has 123 boutiques and 1600 points of sale worldwide. It employs about 1750 employees worldwide. • The company reported a turnover of more than CHF 500 million Swiss francs or around US $468 million for 2008. • The brand produces 150,000 pieces every year, including watches and jewellery. • Chopard expanded its Geneva factory, extended its Germany factory, bought over a gold chain factory, and built a factory in Fleurier to produce LUC watches. • Celebrating its sesquicentennial year at Baselworld in March, Chopard launched its 150 piece High Jewellery Animal World collection and four new L.U.C watches with four new calibres. • Its most popular products are the Happy Sport Ladies’ watches and the 1000 Miglia Men’s watches.
{{GRAFF}}%% Graff Diamonds are a global jewellery and watch company headquartered in London. Graff specialises in high quality, flawless stones, especially those steeped in myth and mystery.$$ Founded by Laurence Graff in 1960, its world wide operations range from cutting and polishing to the manufacture of fine high end jewellery, retailed from its chain of 26 stores worldwide. %% {{Success Mantra}}$$ Large, flawless stones, skilled craftsmen and the company’s vertically integrated model are the keys to its success. $$ Graff sources the stones from mines in Canada, Australia, Russia, South America and South Africa. The stones are assessed to release the full potential, cut and polished and set into fine jewellery, at the company’s manufacturing operations in Johannesburg, Antwerp, Mauritius and New York. Rare gems and the best diamonds move to Graff's headquarters in Mayfair, London, to be set into iconic jewellery.%% {{History}}$$ Laurence Graff, (1938) designed jewellery and sold it to jewellers all over England. He eventually set up Graff Diamonds in 1960 that sold to the rich and famous. Known as the Prince of Jewellers, Laurence Graff has owned the world’s most fabulous gemstones.
graff-superstar-ladies-watch
{{Products & Prices}}$$ All Graff jewellery is handmade in its workshops. Each piece is set with the minimum of platinum or gold to maximize the intrinsic beauty of the stones.%% {{Innovation & Strategy}}$$ Graff only sells near flawless diamond jewellery. Skilled gem cutters with Graff have developed a special emerald cut that truncates the corners and gives a classic, rectangular shape to the stone. %% {{Business Statistics}}$$ • Graff’ diamond cutting and polishing centre in Johannesburg, South Africa is one of the largest workshops in the world with 300 skilled craftsmen. • Graff employs 200 highly skilled craftsmen in its manufacturing locations in Antwerp, Johannesburg, London, Mauritius and New York. Many of the craftsman have served their apprenticeship with the company. • Graff plans to open a flagship store in Kiev, Ukraine this year. • Graff retails its jewellery in 26 company owned stores worldwide as well as selected Saks outlets.
{{H. STERN}}%% H. Stern is the largest jewellery house in South America. Headquartered in Rio de Janeiro, Brazil, since 1945, it ranks among the five most prestigious jewellery brands. %% {{Success Mantra}}$$ Each piece of design jewellery is hand crafted. Change is the company’s success mantra with two new collections being launched every year.$$ According to Christian Hallot, H.Stern ambassador and advisor to the company’s board of directors, “The H.Stern design team regularly creates new gemstone cutting and polishing techniques.”%% {{History}}$$ Hans Stern (1922-2007), a Jewish immigrant, set up H Stern in 1945, to market coloured gemstones, amethysts, tourmalines and topazes, found in Brazil. $$ Obsessed with quality and workmanship, he created an International Warranty Certificate to attest to the quality of his jewels. He created an international interest in ‘coloured gemstones’, so that even today, coloured gemstones are called ‘Brazilian coloured stones’ even if these are not sourced in Brazil. Hans Stern became known as ‘King of the Coloured Gemstones.’
{{Product and Prices}}$$ According to Hallot, “Our price range is large and flexible. At the high end, we design pieces for women who want to make a personal style statement. At the other, our jewellery can be worn for going to work and the movies. %% {{Innovation & Strategy}}$$ Introduced the concept allowing customers to trade in unwanted gold pieces, as part payment on purchase of new jewellery that was replicated by jewellers around the world.$$ Opened Hans Stern’s private museum with a rare collection of tourmalines in more than 1100 shades of colour.$$ The company’s new headquarters housed every area in the manufacturing and retailing of fine jewellery, workshops, laboratories, training facilities, offices, museum and showrooms. $$ To counter the threat of the economic downturn, H.Stern offered jewellery purchase on instalments spread over 10 months.%% {{Business Statistics}}$$ • The company sells more than 200,000 pieces of jewellery annually. • It has a network of 165 company stores in 31 countries plus an additional 170 retail outlets through wholesale partners worldwide. • Has a staff of 2800 professionals of which, at least 50 craftsmen have been with the company for more than 20 years. • More than 50 per cent of the company’s business is located in Brazil.
Central Park by Harry Winston, Emerald and Diamond Five Stone Ring
{{HARRY WINSTON}}%% Harry Winston Inc., is a prestigious New York-based diamond jeweller and watch retailer with salons established in key world locations. $$ This company is the retail subsidiary of Harry Winston Diamond Corporation (HWDC), earlier known as Aber Diamond Corporation, a Toronto, Canada-based specialist diamond company focussed on the mining and retail segments of the diamond industry.%% {{Success Mantra}}$$ Harry Winston success mantra is its presence into the mining and retailing of diamonds.$$ HWDC owns a 40 per cent interest in the Diavik Diamond Mine, in Canada, a global supplier of rough diamonds.$$ Its presence in diamond mining offers a reliable source of high quality polished diamonds for its retail subsidiary.%% {{History}}$$ Harry Winston (1896--1978) an Ukraine immigrant in United States, learnt the trade in his father’s jewellery shop. He also designed and handcrafted jewellery. In 1920, he set up his first business, Premier Diamond Company on Fifth Avenue in New York. He bought the jewellery collection of one of the richest women in America and redesigned it. $$ Winston purchased the largest and best diamonds from all over the world from dealers, royalty, collectors and maharajahs. Many historically famous diamonds passed through his hands.$$ After Winston, his elder son Ronald, controlled the company while his younger son, a university drop out, loved sailing and sports cars. An ugly rift between the brothers led to Ronald buying out his brother’s share for US $ 44 million, funds for which came from a private equity group, that acquired a share in the company.$$ In 2003, Aber Diamond Corporation of Canada bought out the group’s share for US $85 million and acquired a 51 per cent stake in Harry Winston. It brought out the rest of the company for US $ 157 million. The name Aber was changed to HWDC. In May 2008, Ronald Winston formally exited the company.
NEW_LACE_1_r2
{{Products & Prices}}$$ Harry Winston retails a range of fine, handcrafted diamond and coloured stone jewellery and luxury watches. The company has recently opened a new watch-making facility in Geneva, Switzerland.$$ The opening price for a small pair of Harry Winston diamond earrings is US $3,700 with prices touching a million dollars and more for a single piece!%% {{Innovation & Strategy}}$$ In a growth initiative, Harry Winston plans to expand its international network of salons and introduce a broad range of luxury watches and handcrafted jewellery collections.%% {{Business Statistics}}$$ • HWDC operates 25 salons worldwide. • The company recorded an annual sales turnover of US $680 million, for the fiscal year ended January 31, 2008, of which sales from rough diamonds amounted to more than US $413 million. The company’s retail sales amount to US $ 265 million. Average sales amounts to US $40,000 and US $50,000. • The company’s annual net earnings amounted to 106 million as of January 2008.
{{TIFFANY & CO}}%% Headquartered in New York, the Tiffany brand is famous for jewellery, neatly packaged in its trademark blue box. As a brand, Tiffany is synonymous with engagement rings. $$ The company designs, manufactures and sells its jewellery exclusively through its stores and boutiques worldwide. Jewellery is sold through wholesale distributors, e-commerce enabled websites and mail catalogue, well known as the Blue Book. The company also sells fragrances, leather goods and accessories.%% {{Success Mantra}}$$ Tiffany attributes its success to the quality, sophistication, design and beauty of its products. %% {{History}}$$ Charles Lewis Tiffany (1812-1902) set up Tiffany and Company in 1837, as a small fancy goods store on borrowed business capital of US $ 1000. The shop sold handicrafts, stationery, knick knacks and costume jewellery. $$ When Tiffany bought a fancy, yellow 128.5 carat diamond and named it ‘The Tiffany Diamond’, his store became an emporium of luxury goods. Sales were only made in cash. $$ He also set up a shop in Paris and bought the French Crown jewels when the monarchy was overthrown, making Tiffany a home for diamond jewellery. After Tiffany management changed and the company went public.
Rings
{{Products & Prices}}$$ Tiffany sells jewellery, silverware, key chains, fragrances, leather goods and accessories available across various price ranges.%% {{Innovation & Strateg}} Tiffany regularly launches new product lines, design collections and store expansions. $$ Tiffany adds less expensive items like key chains and bookmarks In a downturn or high prices itself out of this market during an upturn.%% {{Business Statistics}}$$ • Tiffany operates 220 company stores and boutiques worldwide. • the company’s net worldwide sales revenue fell by 3 per cent to US $2.9 billion for the year ended January 2009 with net income falling by 76 per cent in the last quarter of this bad year. • Tiffany has 8,800 employees worldwide. • The company closed down its loss making Indesse stores, an outlet for exclusive pearl jewellery.
Van Cleef & Arpels
{{VAN CLEEF & ARPELS}}%% Van Cleef & Arpels designs and handcrafts fine jewellery, watches and perfumes. Managed by the Van Cleef & Arpels family for generations, it was taken over in 1999 by Swiss Compagnie Financière Richemont, the second largest retailer of luxury goods in the world, that also owns the Cartier brand.%% {{Success Mantra}}$$ Creativity and collections are the company success mantra. Charlotte Gounant, press officer with Van Cleef & Arpels says, “We use the very best stones, purest and strongest in colour, and the best craftsmen. We launch two collections every year.”%% {{History}}$$ Van Cleef & Arpels was founded in 1896 by Salomon Arpels and his son-in-law Alfred Van Cleef. They opened their first boutique in 1906 at 22 Place Vendôme, Paris and registered the Van Cleef & Arpels trademark. Descendents of the family expanded the business into other countries until 1999, when it was taken over by Richemont.
{{Products & Prices}}$$ Van Cleef & Arpels uses rare and magnificent stones and each piece is specially and exquisitely handcrafted. Called high jewellery, each piece is priced more than US $100,000. %% {{Innovation & Strategy}}$$ The main plank of this company is creativity. It constantly innovates design and material to handcraft luxury couture jewellery using rare stones and materials. It has created the Zip necklace that can be opened and closed like a zip. It uses unusual materials like mother of pearl, snakewood and lacquer in its pieces.$$ It also innovates methods of stone cutting and setting. The company is known for having perfected the ‘mystery setting’, a fine paving procedure that uses fine gold or a platinum net to set diamonds and precious gem stones so that no claws are visible. The minimum use of metal enhances the reflection of light. (See picture).%% {{Business Statistics }}$$ • Van Cleef & Arpels has a network of 65 boutiques across four continents. • Van Cleef & Arpels regularly exhibits its magnificent pieces. Exhibitions are planned in New York city, Paris and Beijing. Together sales of Cartier and Van Cleef & Arpels brands accounted for nearly 50 per cent of sales turnover of the entire Richemont group in 2008. However, in 2009, sales of both these maisons, decreased by 14 per cent while operating profit decreased by 22 per cent to 349 million Euros.
{{OLD IS GOLD}}%% These top echelon jewellery houses have survived and delivered consistently in a global diamond jewellery market, currently valued at approximately US $68 billion with an average annual forecasted growth rate of 4 per cent.%% The resilience of these brands, their survival skills, have been honed by four main challenges, which they have faced with impunity to remain at the top.%% {{Challenge of Recession}}%% Over time, jewellery houses have survived several economic depressions and downturns. $$ The last two years, 2008 and 2009, have challenged the industry and wiped out many old timers from the market. Although, every company experienced a cut in revenues, strong visionaries have survived by widening market reach.$$ Francesco Trapani, CEO of Bulgari, says, “In these times, we sell more to be more profitable. To driver growth, we sell products for special occasions and everyday use.”%% {{Challenge From Counterfeits}}%% Top jewellery houses are aware that their exclusive, handcrafted ornament showcased by the stars, may soon be replicated indiscriminately for the hoi polloi. $$ Recently, a US federal court ruled against Tiffany that it was the company’s responsibility to protect its trademark and that an auction site like ebay was not responsible for the fake Tiffany products being sold online. $$ Although Tiffany has appealed, most companies have risen to the occasion by interpreting it as a demand for up market products.$$ Says Christian Hallot, H.Stern’s ambassador and advisor to the company’s board of directors, “Our price range is wide and flexible. Then why wear an imitation?
Bulgari too, has countered the problem of fakes through registering its products with a unique serial number.$$ At Graff Diamonds, all diamonds are laser-inscribed with the Graff logo and a Gemological Institute of America identification number. $$ As Gounant of Van Cleef & Arpels quips, “Exceptional creativity is our best weapon against fake jewellery and the economic crisis.” Probably imitation is the best form of flattery.%% {{Security Challenge}}%% In December 2008, three men wearing wigs and women’s clothes, entered a Harry Winston boutique in Paris and robbed it of more than US $100 million worth of jewellery and watches. In October 2007 too, robbers had got away with about US $25 million worth of jewellery.$$ At Graff Diamonds, London, in a huge heist two men posing as customers stole jewellery worth nearly £40 million or US $65 million. $$ Luxury jewellery houses are reluctant to disclose security arrangements or the amount spent on security but they are prepared for the worst with the best that technology offers.%% {{Customer Loyalty}}%% The most important challenge in retaining market share and brand value is preserving customer loyalty. This is essentially managed through marketing, while ensuring product quality and customer satisfaction. $$ These top companies therefore support charities and sponsor popular events to ensure visibility and recall besides loyalty.$$ For instance, at Cartier, customers for low end initiation products are treated so well that eventually they turn up to buy the high end pieces.$$ These challenges have prepared luxury companies for the future. Tomorrow, you may be a Harry Winston or a Graff customer.
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