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CJ
SEPTEMBER • OCTOBER 2008

125
OVER YEARS
IN THE BUSINESS OF
RETAILING JEWELLERY

Holiday Trends
STYLES AND CATEGORIES
YOU NEED TO STOCK
CANADIAN JEWELLER

canadian jeweller
magazine
Original G.
MASTER DESIGNER
SIMON GHANIMIAN SPEAKS

E xcellence in Design:
SEPTEMBER • OCTOBER 2008

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A NEW LOOK AT COLOURED
PLUS: DIAMOND FLUORESCENCE

ALL THE LATEST MARKET NEWS, TRENDS & EVENTS


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marketwatch

Geomarketing Comes to

Jewellery
Di Modolo, Milano 18K
gold Triadra necklace.

In every business, the ability to put the right


product into the right market at the right time is the
proverbial ‘Holy Grail.’ And from the point of view of
any business analyst, the jewellery industry has
been massively inefficient in this regard since the
dawn of large-scale jewellery manufacturing.

B Y R OBIN G AMBHIR

roducing any piece of jewellery is a capital intensive

P business requiring expensive input costs in raw materials


such as precious metals, diamonds, gemstones and labour.
In addition, jewellery is a luxury item which asks consumers
to spend discretionary income on a something that appeals on
an emotional level — something which adds a greater degree
of uncertainty to a product’s success in the market.

SEPTEMBER • OCTOBER 2008 CJ 59


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“prefer
Happily, most consumers still
to purchase their jewellery
from a store in their community;
local jewellers provide a level
of service that online-only retailers
will never be able to match.

With the advent of online shopping, the process of tracking of finished jewellery, loose diamonds, watches, clocks and
consumer behaviour and preferences became easier for online giftware on a retail site), it gives independent retailers
retailers, who could track product sales from their website. more inventory to drive a sale than any other jewellers’
That was fine for online-only plays such as Blue Nile, but what website. Every time consumers shop on a site powered by
about independent jewellers who do the majority of their sales OpenBlue, everything they click on is recorded and fed back
in a store? Happily, most consumers still prefer to purchase to the retailer and their suppliers. When a supplier’s rep
their jewellery from a store in their community; local jewellers visits the store, there is no doubt about the items that should
provide a level of service that online-only retailers will never be held in stock by the retailer. Using this data, suppliers can
be able to match. But independent jewellers and their suppliers deploy the right product into the right market. Retailers who
need new tools to compete in markets that are faster and want to give it a try, can go to www.openbluestores.com.
smarter than ever before.
See the Market
Giving Local Jewellers the Tools to Compete Up until now, readers of CJ have had the benefit of seeing
OpenBlue’s raison d’etre has always been to provide those the market for different categories of jewellery through
local, independent jewellers with modern websites that give statistics; these statistics and the magazine’s consumer-driven
them the ability to compete by leveraging their suppliers’ lists of the top 10 and top 100 are unprecedented in the
inventory. This approach provides consumers shopping industry. With this edition of Canadian Jeweller, OpenBlue is
online with an inventory that is wider and deeper than any pleased to show the next level of market data — maps. In this
online-only retailer could match. And since OpenBlue sites and upcoming editions of “Market Watch,” you will be able to
drive traffic into the store (displaying an average of 10,000 items actually see the market for jewellery.

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marketwatch

Map 1. A world map where each balloon represents one or more


consumers from the particular city that clicked on the Canadian
diamonds category. Noticeably, there is a lot of traffic from the
United States.

screen snapshot

screen snapshot

Map 2. Results for consumers searching for loose Canadian


diamonds. The map depicts interest in Canadian diamonds/
diamond jewellery across the country, as well as central
and eastern United States.

Map 3. In this map, there is a different distribution pattern for


a particular style. There is some interest from the west coast of
the United States, as well as heavy concentrations in Ontario
and Alberta.

screen snapshot

Using this new technology, OpenBlue can now map market OpenBlue retail sites have a category of finished jewellery
data for any category of jeweller, any loose diamond, watch, called “Made with Canadian Diamonds.” Shown on this page
clock or giftware item. This serves as a broad step towards that is a world map (Map 1) where each balloon represents one or
‘Holy Grail’ of putting the right product into the right market more consumer(s) from the particular city that clicked on this
at the right time. Using geographical data to guide sales and category. While the majority of OpenBlue-powered retail sites
marketing is known as Geomarketing. OpenBlue will make are based in Canada, there is a lot of traffic from the United
this data available to the industry as a free service this fall at States and some scattered distribution across the globe. That
www.thewiredjeweller.com. Detailed statistics, along with our means that a lot of Americans are finding these Canadian
top 10/100 lists, will continue to be available in the pages of retailers and shopping at their sites.
Canadian Jeweller.
Many OpenBlue retailers also have loose diamond searches
Mapping The Market For Canadian Diamonds on their sites and one of the options on those searches is to only
So-called “blood diamonds” have led to an increased demand show Canadian diamonds. Map 2 shows all the consumers who
for Canadian diamonds as their “conflict-free” status seems selected that option when searching for loose diamonds.
unimpeachable amongst consumers. Indeed, Canadian
diamonds have become the “brand” for diamonds free of the Maps 1 and 2 depict a lot of interest in Canadian diamonds and
blood diamond stigma. So while retailers offer Canadian Canadian diamond jewellery across Canada and in central and
diamonds, and diamond jewellery made with Canadian eastern United States. These maps represent broad trends and
diamonds are largely based in Canada, the demand for them in the online version of the mapping system, you can zoom in
could extend outside of North America. on any area and pick out specific areas of concentration.

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marketwatch

“Applying this sort of Geomarketing technology to jewellery


takes a lot of the guesswork out of deploying products for both
retailers and manufacturers.

Polar Ice Canadian


For a supplier trying to decide where to market a specific diamond solitaire
style and for a retailer who is trying to decide what to stock,
they need very specific information. To illustrate, we selected
a Polar Ice Canadian diamond solitaire.

When we look at map 3 on the previous page, we can see that


this particular style has a different distribution pattern,
compared to the broader maps which show general interest
Dall'Avo for Gold Expressions 18K
in Canadian diamonds. Here, the style of the ring itself
gold white cromo collection with
comes into play and we can see some interest from the west hardened white ceramic.
coast of the United States. In Canada, there is strong
interest across the country, with heavy concentrations in
Ontario and Alberta.

Applying this sort of Geomarketing technology to jewellery


takes a lot of the guesswork out of deploying products for
both retailers and manufacturers. Over time, geomarketing
will yield efficiencies and save everyone time and money by
putting the right products in the right markets. [CJ]

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