Among the ways ChatGPT, which recently released an app, can help retailers: writing social media posts, brainstorming ad copy, reworking past content, generating content ideas, crafting product descriptions, improving copy, and producing team documentation of procedures.

But the tool has its downsides. ChatGPT “can be biased,” Shaheen said. ”It can be inaccurate and delusional. The data in ChatGPT only goes back to 2021. A lot has happened in two years.”

The tool can also be repetitious and slow. And users should always be aware that their data is not secure. “It says in its terms and conditions that it is keeping track of all the things put in there,” Shaheen said. “So if you have something proprietary, don’t enter it.”

Success on ChatGPT relies on exact “prompt engineering,” she said.

“Prompts are a set of instructions,” she explained. “You have to carefully craft your set of prompts. It’s all about the directions, what you want it to do.”

Shaheen likened choosing prompts to asking a genie for a wish. If you were wishing for a diamond, you would want to specify quality and size. If you are looking to write a good product description, you need to specify that you want copy that’s engaging and conversational, benefit-oriented, specific and factual, unique and creative, and evidence-based.

One oft-used trick she mentioned: “Tell ChatGPT to act like a person with a specific background or level of experience.” For instance, if you get a negative review on a social media network and are not sure how to respond, ask the bot to create an even-keeled reply like a customer service person with 20 years’ experience would.

Shaheen also addressed the differences between ChatGPT-3.5, the free version, and the newer ChatGPT-4, which costs $20 per month. “The quality of the writing is better on ChatGPT-4,” she said.

She advised users to back everything up and use the “data export” function. In the end, she noted, “ChatGPT is a tool, not a replacement for people.”

(Photograph by Camilla Sjodin)

With consumer interest in laboratory-grown diamonds (LGDs) rapidly increasing and currently accounting for 10% of the diamond engagement ring market, what’s the best way to market these stones to consumers?

Most retailers who spoke with JCK are sticking with a formula that looks something like this: “We focus our bridal business on showing natural diamonds first, then lead into lab-grown diamonds as a secondary option,” says Amy Corey, diamond buyer at Day’s Jewelers, a retailer with locations in Maine and New Hampshire. “When speaking about lab-grown diamonds, we stick to the basics and there is not a lot of romancing.”

From where lab-grown advocates sit, however, there’s a lot more to dig into at the counter beyond the basics. For instance, it’s a bit passé to only address the fact that LGDs are chemically the same as mined diamonds, especially since most customers have already done extensive research on their own before making an inquiry or browsing in-store.

One way to elevate your lab-grown pitch is to borrow the “love language” framework—a theory that suggests that people like to give and receive love in five distinct ways and that recognizing these languages can help with communication in a relationship. If one approach isn’t working, finding a different love language may be in order—a good reason to be fluent in all of them.

Below, we offer a snapshot of five effective ways to speak to the lab-grown curious.

More for Less

Instead of presenting lab diamonds as a less expensive alternative to mined diamonds, retailers might consider emphasizing that buyers who opt for lab-grown can acquire a larger diamond of much higher quality without spending more.

“We have found that about 70% of our customers choose lab-grown so they can get a larger center diamond,” says Gary Bond, co-owner of Garrick Jewelers in Hanover, Pa. “They often settle in on a natural diamond then ask what size lab-grown they could get with the same budget.”

This tactic aligns with recent consumer research conducted by Marty Hurwitz, CEO of Austin, Texas–based MVI Marketing, which found that 36% of consumers would go over budget if it meant they could get a LGD that was twice the size of a mined diamond.

Innovation and Ingenuity

With some customers, the secret to closing the sale lies in romancing the technology that goes into creating gems in the lab and how those processes are continually updated and refined.

“We speak openly about the science behind lab-grown diamonds and their origins—just as we would do for a mined stone,” says Jenny Chung Seeger, founder and owner of No.3 Fine Jewelry in San Francisco, and Eliette, an online business specializing in lab-grown jewelry.

Leading grower WD Lab Grown Diamonds and its branded subsidiary, Latitude Diamonds, favor an approach in which retailers communicate that LGDs are the result of “human ingenuity and the interplay between art and science,” says chief marketing officer Brittany Lewis. The company’s “Seed to Stone” story, conveyed via a multimedia countertop display or a two-minute video looped on a store’s large-screen TV, “is compelling for WD and Latitude customers, as they can learn about the scientists, engineers, and craftsmen whose work goes into creating these modern marvels across each of their development stages.”

Aether Diamonds, a newcomer to the lab diamond space, is hoping to persuade consumers and retailer partners alike to buy into the company’s innovative production technique: The carbon used to create its product is pulled from the atmosphere (specifically, in the Swiss Alps—yes, really). “We’re putting out detailed videos to educate sales staff and consumers on how we do what we do,” says Aether cofounder and “chief alchemist” Ryan Shearman. “When you look at the direct air capture machines in the Alps that are used to capture all of the carbon that have made it into every Aether diamond thus far, it’s picturesque, it’s beautiful.”

Next-Level Transparency and Traceability

At this point, most retailers know the “LGD is more sustainable” narrative is problematic and a risky marketing approach, lest they be accused of greenwashing. But while growers acknowledge that the environmental conversation is highly nuanced, they still think it’s a primary pillar of the overall value proposition.

“We’ve always been transparent about the fact that our LGDs are a manufactured product that requires a lot of energy to produce, and as such, we’ve always been committed to reducing our environmental impact,” says Nick Smart, commercial director at Lightbox, De Beers’ lab-grown subsidiary. “We are constantly developing new ways to improve efficiencies in our process,” he adds, “and we are proud to say that all of our stones are now grown in our state-of-the-art manufacturing facility in Gresham, Oregon, with energy from 100% renewable sources.”

Other growers think the conversation with consumers should focus on third-party accreditation because “it’s important that the consumer understands that not all lab-grown diamonds are created equal,” says Anna-Mieke Anderson, founder and CEO of MiaDonna & Co., a by-appointment showroom and design studio specializing in lab-grown stones in Portland, Ore., with certified B Corp status (signifying high social and environmental standards). “The quality and ethics vary widely.”

Oscar Massin, a French fine jewelry brand that utilizes Latitude diamonds, says its sales team communicates the fact that “our lab-grown diamonds have been globally, sustainably certified under SCS 007 certification and have achieved the highest rating of an A+,” says cofounder and chief operating officer Youri Vaisse. “Our stones are 100% climate-neutral and completely traceable with 99% accuracy throughout the entire U.S. chain of custody.”

At No.3 Fine Jewelry in San Francisco, “we source strictly from U.S. labs that operate consciously and have a minimal carbon footprint, something that just isn’t explicitly regulated overseas,” Seeger says.

Meanwhile, New York City–based ALTR Created Diamonds “has worked to set the language standard for the lab-grown diamond industry by prioritizing and providing education for all our sales associates,” says president Amish Shah. “This ensures they can deliver an accurate makeup report to the consumer while also highlighting how they have standardized e-certificates, use recycled gold, are carbon-neutral, and rely on renewable energy for their facilities.”

Aether Diamonds prides itself on being a B Corp–certified LGD producer. “We’re now working with Bureau Veritas to have another layer of supply chain tracing on top of B Corp,” Shearman says, “just so that we can then prove that a particular diamond came from Switzerland in the month of May and, as we expand, to be able to say this other one came from Paris in the month of June. Because that level of transparency is so vital to our ongoing storytelling, and it resonates deeply for some retailers and their customers.”

Simply the Best

As consumers become more educated on all LGD-related matters, a certain type of engagement ring shopper is going to be seduced by the idea of being able to acquire a Type IIa diamond. These D-color, internally flawless stones are devoid of any chemical impurities and are rarely found in nature, accounting for just 1 to 2% of mined diamonds.

Ironically, Type IIa has become a new aesthetic standard for LGD growers to aspire to. As Shah of ALTR puts it, “We’ve helped the average consumer access Type IIa diamonds, the highest quality in the world, which were previously only available to the ultrawealthy.”

The prospect of owning a Type IIa stone may be enough to enchant some customers, but others will prize unique characteristics over manufactured perfection. This is the ticket for Seeger: “Our team handpicks lab-grown diamonds for their beauty and fire, not necessarily their cut and clarity alone,” she says.

“Lab-grown diamonds, when made without extra HPHT [high-pressure, high-temperature] processes, are not perfect,” she adds. “They come with microscopic inclusions and warm colors and all sorts of personality—we know and celebrate this. Words like rare or handpicked and fire resonate—it’s not unlike how we might talk about mined diamonds.”

An Heirloom for the Modern Age

Many in the jewelry trade are quick to point out that lab-grown diamonds are not sound investments, as the stones are largely regarded as a declining asset. “Our sales staff stress the fact that pricing is still moving and there is no inherent value to lab-grown—and we do not offer a trade-in/upgrade program with lab-grown diamonds, only with natural,” says Corey at Day’s Jewelers.

Garrick Jewelers takes a different approach: “We explain that we will trade in any natural or lab-grown diamond toward another at the current market price,” Bond says. “This allows us to adjust for the ever-changing prices of natural as well as lab-grown diamonds.”

It’s true that the resale space for LGDs has not yet been established, but for consumers, “the purchase of a lab-grown diamond is not oriented around the ‘store of value’ issue,” according to Lewis at WD. “For them, the diamond has become a ‘store of emotion’—it’s a new kind of heirloom for the modern age.”

And in any case, Lewis adds, “as the consumer further drives the growth and evolution of the diamond space, the purchase of responsibly created and sustainably certified lab-grown diamonds isn’t about protecting and preserving an investment. It’s about protecting and preserving the planet for future generations.”

Top: Lab-grown diamond drop earrings by Lightbox

From huggie to huge, glistening with gems or detailed metalwork, a classic round arc or a whimsical heart, the hoop earring comes in so many varieties that no customer who loves wearing them can stop at only one pair. Totally collectible and even lending itself to be styled in groups, a good hoop lightens any mood, enhances any look, and leaves a lasting impression.

That’s why this significant category of earring is a practical choice for any retailer’s lab-grown diamond offering.

The option is going to give customers one major look at a more approachable price point, whether they’re adding a little bling to an earring party or going full red-carpet glam.

The roundup here showcases a vast assortment of styles, though they all have one very sparkly thing in common: lab-grown diamonds.

Top: À L’interieur 30 mm hoop earrings in 18k white gold with 0.8 ct. t.w. lab-grown diamonds, $2,250; Or & Elle

Buy now, pay later, generally abbreviated to BNPL, is a burgeoning trend in retail payment. Billed as an alternative to cash or credit cards, this form of financing aims to give customers flexibility by letting them pay for purchases over time, without the high interest rates many credit cards charge.

The pitch is proving popular with inflation-strapped consumers. Adobe Analytics reported that from Thanksgiving through the following Cyber Monday, BNPL purchases jumped by a whopping 85% compared with the week prior.

If you’re considering offering BNPL as a payment option, here’s what you need to know.

What is it, anyway?

Today’s pay-later programs are most often compared to the layaway plans common in earlier, pre–credit card generations. The big difference that makes BNPL appealing to a customer base used to instant gratification: While buyers still make a set of fixed installment payments, they get their merchandise before—not after—paying off the entire amount. Often, they won’t incur any interest or fees if they agree to pay off their purchase in a series of payments, usually four payments on a biweekly basis.

Shoppers, especially young shoppers, don’t view BNPL as negative because they perceive it as “free” money, according to marketing experts. “It started as an appeal to Gen Z and younger consumers who have this preconceived notion of credit cards as negative,” says Anastasiya Ghosh, a marketing professor at the University of Arizona.

Retailers who use these platforms agree. “It helps close the sale, which is great,” says Elizabeth Gibson, founder and CEO of Austin, Texas–based Eliza Page, who says her store has been using the BNPL provider Affirm for a few years.

Gibson adds that the sales processed through BNPL seem to be incremental, rather than cannibalizing credit card purchases. “When a customer sees it on your website, it lowers the barrier to entry,” she says. “If they don’t have $5,000 at that moment, they feel like ‘I can afford this.’”

How does it work?

Companies offering BNPL loans are generally fintechs—that is, financial technology companies that perform bank-like functions without actually being banks. Similar to how you might contract with a credit card payment processor—either a traditional bank or a startup like Square (whose corporate parent, Block, acquired BNPL company Afterpay last year)—you can work with one or more BNPL platforms to give customers the option to split up the cost of their spending and pay over time. Your customers see the option to pay with BNPL when they initiate the checkout process.

Another appeal of BNPL versus traditional financing is easy access. For most shoppers, getting approved for a BNPL account is faster than applying for a credit card, since it doesn’t involve an in-depth evaluation—a “hard pull”—of their credit report. Shoppers who already have an account with the BNPL provider can make a purchase as quickly as with a credit card.

The flagship offering of BNPL companies is interest-free financing that is paid off in four equal installments on a biweekly basis. In addition to their basic short-term, no-interest loan offering, a growing number of BNPL providers have begun to also offer customer financing using a model that looks more like a traditional installment loan, with the borrower agreeing to pay a preset amount of principal as well as interest each month.

Although it might seem redundant, some retailers who use BNPL say it’s helpful to offer more than one option because customers generally have preferred platforms on which they’ve created an account, making checkout quick and seamless.

How much does it cost? 

Like credit card processing arrangements, the payment platform takes a percentage of the purchase price. Some may also charge the merchant a nominal per-transaction processing fee or a monthly account fee akin to a bank account maintenance fee if a minimum threshold of spending isn’t met. (One BNPL platform, Sezzle, charges $15 per month if monthly transactions are below $300.)

The percentage charged by the BNPL processor is contingent upon a number of variables: the company’s own policies, how much of your transaction volume the company believes it can reasonably capture, and the type of payment arrangement you want to offer your customers.

Overall, the transaction fees are comparable to those charged by credit card processing networks, with most falling in the 2% to 7% range. They can be higher if you choose to offer customers the opportunity to finance their purchases over a longer term—say, 12 months versus two months.

Are there any caveats?

Because it falls outside the oversight of other types of consumer debt like credit cards and personal loans, the BNPL industry at present operates in a regulatory gray zone. Some observers—including government regulators—have expressed concern about payment platforms that encourage people to take on debt in any form for discretionary purchases.

“BNPL is still accumulating debt,” Ghosh says. “It just feels different because it segregates the payments.”

Ghosh says younger shoppers prefer the BNPL model to credit cards, which can have borrowers making interest payments for years if they only pay the monthly minimum. Instead, the BNPL installment loan schedule is designed so buyers have a fixed end date by which they complete payment for their purchase. If a buyer misses a payment, there can be fees—generally $10 or less—or other financial penalties assessed, or the platform might prohibit any new purchases until the account is brought back into good standing.

Companies providing pay-later loans use sophisticated credit modeling software to manage their exposure to risk. In practice, this means they limit the dollar amount of transactions they will process through their networks—which can be a headache for jewelers selling high-priced items. If you’re considering adding BNPL to your customer payment options, have a conversation with a company representative to ensure that its transaction limits are suitable for your price points.

Another consideration is that, unlike credit cards that can be used online and in-store, BNPL is generally thought of as wholly for e-commerce transactions. That said, retailers can create a workaround if they want to offer BNPL for in-store purchases by routing the transaction through their website or the BNPL provider’s mobile app on the customer’s phone.

What are the benefits?

“I’m personally an online shopper, and I appreciate the flexible payment options,” says Alexis Padis, president of San Francisco–based Padis Jewelry. “It really allows an opportunity to fit unique budgets and cash flows.”

Padis says her site has offered BNPL via Sezzle for about a year, and she plans to add Klarna, another BNPL platform, in the near future. “Any kind of offering where you can break up the payments without any additional interest is really appealing to clients,” she says.

The growing ubiquity of BNPL among big-box stores and mall brands puts a kind of peer pressure on small retailers to follow suit, Ghosh says. “Nowadays, there’s almost an expectation that most large retailers and even smaller ones offer BNPL like they offer credit cards.”

Padis, though, sees a silver lining in providing the same conveniences as larger rivals. “As these fintech companies become more prominent on other websites, if—as an independent retailer—I can offer that same branded experience, it’s a win for everybody.”

A spokeswoman for Afterpay says the platform, which lets users browse retailers from its app, can help independent businesses reach a broader customer base, particularly hard-to-target young adults. “The Gen Z shopper loves to shop small,” she says.

Stores offering BNPL also benefit from being able to outsource the risk and the management of consumer lines of credit. While many jewelers have historically offered their own financing, BNPL makes that process quicker and easier for both stores and customers, according to Monika Krol, owner of Meeka Fine Jewelry in Camp Hill, Pa. “We initially created a layaway system, but it was just a manual process and not very streamlined.”

Krol says she has used Shopify’s BNPL offering, Shop Pay Installments, in the past. She currently uses Bread Financial and is considering adding more BNPL options based on customer responses.

“It’s great from our end,” Krol says. “We accept the order and we ship the piece, and at that point Bread pays us the full amount and they handle the payments from there.”

•  •  •  •  •

Meet the Big Players in BNPL

Affirm

Afterpay

Bread Financial

Klarna

PayPal Pay in 4  

Sezzle  

Shopify Shop Pay Installments

Zip

Top: Getty Images

Once a jewelry trend reveals itself, all of us in the industry know we can count on it to stick around for quite a few seasons. So with that in mind, fresh takes on tennis necklaces and other classic gold-and-diamond fashion jewels remain solidly in demand going into 2023.

So, too, are charms that allow for personalization, storytelling, and the marking of important milestones. Enamel will continue its run in 2023, while permanent jewelry remains a runaway retail success, especially if you’re catering to a younger clientele.

Beyond these well-established examples, however, lie two paradigm shifts most retailers are likely aware of by now—and if not, they should be: Lab-grown diamonds (LGD) and genderless jewels are now unequivocally mainstream.

The big prediction regarding the former is that the category is poised to make a major splash on the fine fashion jewelry scene. “2023 will be the year when more LGD fine fashion jewelry hits the stores, and retailers should embrace this opportunity as consumers have been asking to see it,” Marty Hurwitz, CEO of The MVEye, a market research and jewelry consulting firm, tells JCK.

Like lab-grown diamonds, gender-fluid jewelry (or jewelry that might still be marketed as “men’s jewelry”) has begun the transition from novel idea to evergreen category, making it not just a safe 2023 investment, but a wise one.

In fact, it’s a good idea to stop assigning gender to jewelry altogether, says Jennifer Gandia, co-owner of Greenwich St. Jewelers in New York City. “There’s so much more conversation around sexuality and gender,” she says. “And with there being so much more openness around that conversation, it is empowering people who maybe didn’t think of themselves as jewelry wearers to think about wearing a piece of jewelry.”

What other jewelry trends should you be paying attention to in 2023? JCK put that question to top industry pros and came up with a list of six not-to-miss trends and one key takeaway about what today’s consumers want from their jewelry.

Maximalist Moment

While there will always be a less-is-more contingent of buyers, experts report that 2023 will usher in a more pronounced trend toward bigger and bolder adornment. “Expect more maximalist and less minimalist, with thicker bangles and necklaces, bigger earrings, and medallions in both yellow gold and diamonds,” says Katie Reusch, director of marketing and communications at Canadian retailer Birks.

Randi Udell Alper, vice president at London Jewelers in New York City and Manhasset on Long Island, is on board with maximalism, too: “People are pulling all their goods out and sizing up, and they’re mixing and matching bigger pieces in their everyday look as well as dressier looks,” she says. “We’re definitely seeing people go big.”

Bold Gold

To stay on trend in 2023, keep the gold vibes going. (Bonus: The latest styles dovetail nicely with the maximalist moment.)

“I think yellow gold is here to stay—bezel-set and gypsy-set rings, cigar bands, big thick hoops, cuffs, and large medallions,” says jewelry stylist and Town & Country contributing editor Will Kahn (@willsnotebook).

It’s not that the paper-clip chain moment has passed entirely, but burlier and brawnier versions of the classic gold chain necklace are eclipsing it. Think tubogas collars, Cuban links, and ’70s-inspired wheat and foxtail chains that have more girth than your average pendant chain and are sturdy enough to hold quite a few of them.

The bolder proportions will likely spark a new demand for electroplated jewelry—a staple of Italian gold centers like Vicenza and Arezzo—which can offer a heftier look for less. Jennifer Curry, fine jewelry buyer at Florida-based Marissa Collections, says European designers such as IsabelleFa in Germany and Lauren Rubinski in France are trendsetters in this regard.

Curry also notes the direction of Zoë Chicco’s gold chain offering, which is scaling chunkier these days, with herringbones, rope chains, and curb links bumped up to 3 mm or higher. “She does some really great affordable chains,” Curry says. “There’s a vintage feel to them, almost like she got them out of her grandma’s jewelry box.”

Majors like Kay Jewelers and Zales are leaning into the yellow metal category because “we continue to see gold as a trend driver,” says Angela Kennedy, vice president of merchandising at Signet, parent company of both brands. Zales has begun a partnership with PDPaola, a Spanish brand specializing in 14k gold and demi-fine pieces made in 18k gold over silver or brass, with prices ranging from $65 to $1,800. And Kay recently introduced the gold line Italian Brilliance, with pieces priced from $239 to $2,999.

Silver Streak

While yellow gold remains strong, a few trend whisperers are hearing the call of a silver revival.

“I feel a resurgence of everything from Elsa Peretti to Southwestern-style pieces could happen—just an inkling,” Kahn says. “It is perfect timing, considering demand for larger statement pieces—and the lower price point of silver in comparison to gold—and there was a Western micro trend happening at Couture” in Las Vegas in June.

Martha Garza, a New York City-based luxury branding consultant and strategist, agrees: “I expect to see more and more silver take over on the runways and on the streets,” she says. “It feels like Gen Z is embracing this, especially as we move to bigger and chunkier styles.”

To JB Jones, cofounder of New York City Jewelry Week, silver seems more futuristic. “Young designers have been doing some really cool and interesting things with silver,” she says. Plus, its vibe and color “play so well into the NFT [non-fungible token] digital jewelry world.”

Mixed Metals

Mixing metal colors—darkened/oxidized gold and silver, mainly, with yellow gold accents—will be a new direction for 2023 as designers look for ways to offer the fashion-minded customer fresh takes that layer seamlessly into an existing collection of gold and/or silver baubles.

“It’s a trend about texture, a certain edginess,” says Gandia. She cites Erica Molinari’s two-tone charms and talismans as an example of the look.

Two-tone is yet another way for designers to offer a sizable statement piece for less than it would cost to render the jewel in solid gold. Other masters of the 2023 mix include Sylva & Cie, Rene Escobar, Todd Reed, and Lika Behar.

Playful Nostalgia

Call it a return to the 1980s, 1990s, or Y2K. Or just call it a comeback of the “sort of iconography that feels young, fun, and comforting,” Jones says. “I think we will be seeing more hearts, bows, teddy bears, and that nod to childhood.”

Rosena Sammi, designer and founder of The Jewelry Edit, an online brand specializing in independent, mostly female, and often BIPOC designers has likewise “noticed a trend away from traditional styles and a yearning for something more playful with personality.

“We saw an uptick in sales of colorful enamel pieces like lip rings by Raphaele Canot or personalized pendants by Agaro,” Sammi says.

At Eliza Page in Austin, Texas, founder Elizabeth Gibson says the “playful” style is bearing out in “big hoops, cuffs and bangles, beaded jewelry, baroque pearls, and nameplate necklaces, bracelets, and rings.”

Speaking of nameplates, “I see it as a ’90s trend,” says Garza, the luxury branding consultant. “Think Carrie Bradshaw’s Carrie necklace. I’m also seeing the nameplates with statements instead of names, especially among Gen Z, a generation that stands for a lot and has a lot to say.”

Pinks+

The industry was “thinking pink” long before everyone started talking about Pantone’s 2023 color of the year, Viva Magenta.

“If fashion gave us anything this year it was Valentino Pink, and that shade is coming to jewelry next,” Jones says. “I see pink stones, pink enamel, pink bows…basically ‘pretty in pink’ vibes everywhere.”

Gandia has a similarly rosy outlook: “I think pinks and magenta are good color choices for the industry,” she says. “A good barometer [for color trends] is the designer Jamie Joseph. The shades of Indian ruby and bubble-gummy pink tourmaline are selling well within her line.”

In addition to pinks that pop, industry pros report an interest in prasiolite and green amethyst (influenced by Jennifer Lopez’s green diamond engagement ring) that will continue into 2023. “They are very neutral greens, very soft and watery feeling,” says Fort Worth, Texas, retailer Jo Latham. “And blue topaz is having a bit of a resurgence. You can get that big colored-stone fix—that elevated cocktail ring look—but you’re not breaking the bank.”

On the supplier side, Dave Bindra, vice president of B&B Fine Gems (@gemfluencer) says all shades of spinel will maintain their popularity, including pink and red. “I also think blue-green and teal sapphires will also continue to have strong demand into next year.” And stick a pin in orange and purple garnets, two emerging favorites that are poised to have some staying power, he says.

Redesigns and Reimaginings…
One final idea to keep in mind as you determine your inventory plan for the new year: More and more independent designers have been catering to clients who wish to upcycle their existing jewelry into a modern design or use an heirloom stone in a custom engagement or anniversary ring. Now, smart retailers are offering similar services.

Not every jeweler is equipped—or even keen—to honor such custom-design requests due to bandwidth. Others, however, are embracing the creative possibilities these kinds of projects afford. Alper says redos are becoming a leading pillar of the Long Island location of London Jewelers, and there’s more in the queue for 2023. “We have a full-time designer in house and that’s all she does—taking some of the older pieces that clients bring in and revamping them to be something unique,” she says. “People want something different that nobody else has.”

Latham reports a similar uptick in bespoke design projects at her store and relies on her stable of designers, from Jade Trau to Sorellina, to execute them. “People have been looking at their jewelry collections and asking, ‘What can be reinvented?’ or ‘How can I enjoy this piece in a new way?’” she says.

“And what I’ve loved about our resetting or reinvention projects is that our designers are really embracing them,” Latham adds. “When they take on these projects, they welcome the challenge of putting their perspective and personality into the design.”

Top: Charm Chain necklace with vintage Swarovski rhinestones, darkened sterling silver, metal leaf, and resin; $1,800; Yours by Claire Webb

In some ways, social media seems tailor-made for jewelry marketing. Retailers can create and cultivate their brands with the help of dazzling images and edgy or elegant film clips using platforms such as Instagram and TikTok, both of which have cemented themselves as digital destinations for all kinds of sellers.

For jewelry retailers searching for a way to cut through the clutter and connect with customers on a more meaningful level, however, a surprising tech platform is emerging as a key digital channel for engaging viewers: YouTube. A geriatric in technological terms, YouTube debuted back in the relative dark ages of 2005—two years before the launch of the iPhone—and has been owned by Google (now Alphabet Inc.) since 2006.

The pandemic prompted a number of jewelry retailers to either start or increase their presence on YouTube. Now, even as customers have returned to showrooms, YouTubers say they believe that video content can bring value to their brand image and drive sales.

“It’s taken time, but every day now, we’re garnering more subscribers,” says Brian Walker, managing partner at Shreve, Crump & Low, a retailer with stores in Boston and Greenwich, Conn., that announced the launch of its YouTube channel in early November. Walker adds that video gives his team a lot of flexibility to be creative in a way traditional advertising—even traditional digital advertising—can’t deliver. “It’s so incredibly impactful—a tangible connection,” he says. “If done right, there can be a real call to action in terms of converting clients to come into the stores.”

Jewelry store owners and managers who have an active presence on the platform say the ability to post videos gives them creative freedom to grow their brand and present themselves in a more nuanced way than still images and sound bites can capture. Without the sense of urgency imposed by a one- or two-minute time limit, marketers can dispense with the hard sell and focus on letting their customers get to know them.

Adherents acknowledge that creating longer videos can be expensive and initially intimidating. But being able to cultivate a presence that conveys authority and knowledge about particular topics, while developing an intimacy and rapport with potential customers, makes the endeavor worthwhile. And though YouTube isn’t a social network per se, users can build profiles, curate playlists of their favorite content, and respond to and comment on posted content—all features marketers can use to foster dialogue with viewers.

Drawing—and Keeping—YouTube Viewers

If you want to introduce a YouTube channel for your brand, it’s important to ensure that the profile name and Google account associated with the channel aligns with your overall brand, says George Blair IV, co-owner and vice president of Jeweler Websites Inc. in Riverside, Calif. To help viewers easily find your content, “make sure you have your formatting unified, that you have all of your names and information clear and understandable,” he says.

In addition to organic traffic, you can expand the reach of your videos by cross-posting or uploading material across your social footprint. Using hashtags will help people who are searching for videos about, say, collectible watches or lab-grown diamonds find your channel. You also have the option of paid promotions.

To hold people’s interest, jewelers who are regular YouTube posters say there’s a “Goldilocks medium” when it comes to frequency and duration. Weekly uploads are popular, but there isn’t the same imperative as with some other digital platforms for a constantly updated stream of new material. Because YouTube is less characterized by immediacy, it’s possible to shoot several videos at a time, then space out their releases.

More Bang for Your Video Buck

Creating a YouTube channel isn’t that hard to do technologically, but it is hard to do well, says Elizabeth Smith, head of marketing at Oliver Smith Jeweler, a retailer with stores in Scottsdale, Ariz., and Aspen, Colo.

Smith says she started shooting video for the company’s nascent YouTube channel during the Covid lockdowns. While she initially used her iPhone, the process has since been considerably upgraded. “There’s some serious production behind it—we actually now have a full-time videographer.”

Paul Schneider, co-owner of Twist, which has stores in Portland, Ore., and Seattle, acknowledges how expensive the process can be. “We have a staff of around five full-time people that just work on our website” and other digital content, he says, and the videos are outsourced to a professional film production firm.

The good news is there are a couple of ways you can get more mileage out of your investment. For Schneider, the brand’s videos serve as training and sales tools. New hires use the store’s video library as a sort of study guide to familiarize themselves with featured designers before hitting the sales floor. And customers can do more or less the same by scanning QR codes right in the display cases that will take them to the related video content about a particular piece or creator.

Schneider also says he gets more bang for his video buck by asking the production company to deliver, along with the finished product, an edited, 60-second snippet that can be posted to short-form platforms like Instagram Reels or even YouTube’s own Shorts platform, introduced in 2020.

“Take your long-form videos and find your most interesting or entertaining 45 seconds,” Blair advises. Though there is a caveat: Like TikTok, Instagram and YouTube also use the portrait (vertical) setting of a phone camera rather than the traditional horizontal landscape format typical for long-form videos.

Up-Close and Personal

YouTube has been a boon for watch sellers, since collectors of rare timepieces generally want to see what a watch looks like in three dimensions and on the wrist.

“Watches are highly collectible and a very interesting product category to a very broad demographic of people,” Walker says. “For some of these watches, there are so few available on the market that when we do these review videos with these super high-quality images, people really appreciate them.”

The up-close-and-personal approach is popular for other types of YouTube content as well. While social media is awash in influencers, independent jewelers are likely to profit from their YouTube investment by just being themselves, Smith says, adding that the focus of Oliver Smith Jeweler’s videos is “on answering questions.”

Recently, Oliver Smith Jeweler has started to experiment with a new reality show–style of video that offers a glimpse behind the scenes. “For us, it’s a way to establish trust with who we are,” Smith says. “It doesn’t get us nearly as many views, but it gets us more engagement, more comments, and more people coming in to talk about it¾I think because it’s different and clients can really feel like they know us and want to be a part of the brand.”

As Smith explains, “We get new clients all the time who say, ‘I found you on YouTube.’”

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It’s been more than a decade since podcasts first went mainstream. And in that time, the audio format has only gotten more popular.

According to Nielsen, the number of podcast titles and episodes has jumped by nearly 200% over the last two years, and the audience for podcasts has increased 40%, spurred on by the pandemic.

Within the jewelry trade, the podcast trend has followed a similar trajectory, thanks to easy and affordable platforms such as Zencastr (used by JCK), which offers free and/or inexpensive options and requires little more than an internet connection.

We’ve sampled the jewelry-specific podcasts and put together this far from exhaustive list of those we think would be worth your while—while highlighting notable guests and linking to episodes that provide a good introduction to the show or that we particularly enjoyed. The podcasts run the gamut from ultra professional to personal and chatty. That said, they all offer lots of advice, insights, and commentary—plus, they’re free. (Asterisks denote podcasts in which the author has appeared as a guest.)

If Jewels Could Talk With Carol Woolton

Targeted at people both inside and outside the industry, If Jewels Could Talk features historian and British Vogue contributing editor Carol Woolton discussing noteworthy jewels and jewelers.

Vibe:
Elegant people having tea

Notable guests:
Actress Brooke Shields, journalist and author Karina Longworth, and models Jerry Hall and Georgia May Jagger

One to sample:
“Superstitious Gems” with designer Stephen Webster and the Smithsonian Institution’s Jeffrey Post

•  •  •  •  •

BAJ (British Academy of Jewellery) Podcast  

This podcast features discussions with jewelry craftspeople and experts from across the pond.

Vibe:
Businesslike and British

One to sample:
Conversation with jewelry historian Jack Ogden

MJSA (Manufacturing Jewelers & Suppliers of America) Podcasts*

This podcast from the venerable jewelry organization showcases industry leaders and experts, who share tips for manufacturers and retailers. Some shows have a video component as well.

Vibe:
Professional but conversational, like a seminar at the MJSA Expo

One to sample:
Jeweler and educator Nanz Aalund on “The Next Generation of Jewelers”

•  •  •  •  •

For the Love of Jewelers

In this podcast produced by Rio Grande, designer, metalsmith, and business consultant Courtney Gray discusses jewelry design with her fellow creatives.

Vibe:
Friendly and engaging

One to sample:
Episode featuring goldsmith and educator Jeanette Caines

The Jewelry District

Cohosted by the author and JCK editor-in-chief Victoria Gomelsky, The Jewelry District alternates between news discussions and guest-focused segments. “Explores nearly every question you might have about the jewelry business and then some,” says Gotham mag. We’re biased, obviously, but we agree.

Vibe:
Serious, but not too serious

Notable guests:
Signet CEO Gina Drosos, De Beers CEO Bruce Cleaver, Pandora CEO Alexander Lacik, and Brilliant Earth CEO Beth Gerstein

One to sample:
Conversation with Gen Z marketing expert Ziad Ahmed

•  •  •  •  •

Jewelry Artist

Hosted by Katie Hacker, this well-done podcast features jewelry experts sharing their stories and lessons learned.

Vibe:
Falls into that sweet spot between friendly and educational

One to sample:
“Todd Reed and the 5th C of Diamonds”

Jewelry Business Academy Podcast

Jewelry business coach Robyn Clark (pictured) gives success tips for just-starting jewelry designers, with a focus on social media. The show tends to tackle off-the-beaten-path topics (one recent episode was on self-discipline) and experts from outside the industry (owners of a body care company, app developers).

Vibe:
Friendly, tip-oriented

One to sample:
“How to Wholesale and Get Your Jewelry Into Stores With Katie Hunt”

•  •  •  •  •

Jewelry Navigator

Hosted by GIA graduate gemologist Brenna Pakes, jewelers and designers talk about their craft.

Vibe:
Chatty, with personal asides

One to sample:
The episode featuring master polisher Stephen M. Goldsmith

Joy Joya Jewelry Marketing Podcast

Jewelry marketing expert Laryssa Wirstiuk offers digital marketing tips for designers and retailers. Includes interviews and lots of useful information.

Vibe:
Friendly and practical

One to sample:
“Your Brain Is Sabotaging Your Marketing”

Paul Zimnisky Diamond Analytics Podcast*

In this interview-based podcast, the respected analyst chews over recent events in the diamond industry. Zimnisky (pictured) hosts off-the-beaten-track guests as well as industry veterans who take a long view of the trade.

Vibe:
Well-informed and smart

Notable guest:
Former De Beers executive Stephen Lussier

One to sample:
Episode featuring lab-grown diamond pioneer Tom Chatham

Pearls of Wisdom Jewelry Podcast

Cosponsored by Southern and Mid-America Jewelry News and Jewelry Store Marketers, Pearls of Wisdom presents actionable tips for jewelers.

Vibe:
Like a seminar at the Atlanta jewelry show, with lots of personal talk

One to sample:
Fifth-generation jeweler Aleah Arundale with practical pointers for increasing sales

•  •  •  •  •

The Plumb Club’s Podcast

The venerable industry organization shares business strategies for jewelry professionals, featuring various industry experts.

Vibe:
All business

One to sample:
Author Paco Underhill (Why We Buy, Call of the Mall) on “What Do They Want? The Evolving Consumer”

The Rapaport Diamond Podcast*

This biweekly podcast is mostly—but not entirely—diamond focused, with a mix of guests and discussions among the Rapaport staff (though so far its namesake, Martin Rapaport, has not made an appearance).

Vibe:
Well-informed people talking diamonds

Notable guests:
Ben Bridge CEO Lisa Bridge, Lucara CEO Eira Thomas, and Stuller founder and chairman Matt Stuller

One to sample:
Interview with industry analyst Kieron Hodgson

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Designer Sophie Bille Brahe said, “A jewelry box is a place where you put your dearest belongings, it is the keeper of your intimate dreams.” This newly released, stainless steel cloud box is ideal for the one who always seems to have their head in the clouds, and it acts as a daily reminder to keep dreaming.

The stars aligned to create this collaboration between fine jeweler Sorellina and jewelry-box maker Trove. Particularly perfect for the astrology enthusiast, this limited-edition box features a delicate gold inlay design of talismans and more.

Silvia Furmanovich’s horse design is equal parts jewelry box and objet d’art. Made from wood with yellow gold accents, the piece showcases incredibly detailed marquetry. A beautiful gift for anyone, this one’s especially ideal for the horse lover in your life.

Jonathan Adler is not one to shy away from a cheeky design moment—and this high-gloss lacquered jewelry box is the perfect example. Featuring two eyes wide open, it’s eye-catching in more ways than one. Plus, it has a lavender, velvet-lined interior for an added sense of indulgence.

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It can be easy to take cybersecurity for granted—until it’s compromised.

For jewelers, the stakes are especially high. Not only is cybercrime—illegal activity that uses or targets computers or the internet—on the rise, but the jewelry industry is also a tempting target for digital scammers and hackers. Digital security firm Check Point Software Technologies Ltd. says cyberattacks rose by 32% in the second quarter of 2022 compared with a year earlier, hitting an all-time high. The increase in the wholesale and retail sector was even steeper, rising by 54%.

The reasons jewelry designers, wholesalers, and retailers are especially vulnerable to cybercrime vary, according to experts. The goods themselves are small and high-value, making them easy to move and transport without detection. The industry is home to a sizable number of small businesses, which means greater opportunity to exploit potential vulnerabilities. And ordinary transactions typically involve large amounts of money.

“Because it’s such a high-dollar and high-volume business, scammers count on someone not paying attention,” says Josh Burwick, cofounder and CEO of software company CaratX. In a “department where a lot of money is moving, someone might not notice $10,000 or $20,000 that went missing.”

Personal Devices Can Spread Malware

It’s important to make sure employees practice safe cybersecurity practices when it comes to hardware—including their own devices—as well as when working in the cloud or on a wireless network.

“Allowing people to plug thumb drives into company-owned equipment can really increase the likelihood of a cyberattack from a hardware perspective,” says Andrew Chipman, vice president of Berkley Asset Protection, which specializes in fine art and jewelry insurance.

Chipman also says the proliferation of cloud computing increases vulnerability because staffers might use their own devices to access company technology or access their personal email accounts from company computers. If this happens, any malware their devices or accounts may be harboring can infect your business’s technological infrastructure.

“Take an aggressive stance on not letting people use their personal emails on company-owned equipment,” Chipman advises.

Phishing Is a Go-to Tactic for Crooks

Many phishing cyberattacks involve sending fraudulent messages that appear to come from a legitimate source but are intended to deceive recipients into divulging confidential information.

“The main thing we see is people are essentially using social engineering to pretend to impersonate somebody else,” says John Kennedy, president of Jewelers’ Security Alliance (JSA). This impersonation often occurs via email, although thieves are known to use text messages and sometimes even phone calls to exploit their targets.

But Burwick says that phishing emails, texts, and calls are “just the tip of the iceberg.” A staffer might inadvertently click on a malicious link in an email and download rogue software, which can introduce ransomware or other types of harmful programs into the computer system.

Even though email and the internet have been a fixture of the business world for decades, security pros point out that human error is still the weak link when it comes to cybersecurity. The damage results from “people giving away information,” says Zach Lipsky, founder and president of software provider Boss Logics. “We recommend you limit what your associates and team can do.” The smaller the number of people who have the ability to override login credentials or retrieve passwords, for instance, the better.

The Fake-Remittance Ruse

“One of the most common types of phishing attack in our industry is a fake remittance,” Burwick says. While these are fashioned to look like legitimate documents, in reality they are created by criminals to trick you into sending money or merchandise to them.

“They’ll send an email with a sense of urgency, telling you they need to have a payment processed,” says Ryan Ruddock, senior crime analyst at JSA. “They’re using deception in an effort to acquire payment directly from the jeweler,” or in some cases they might try to trick you into providing your payment information so they can fraudulently withdraw funds from your bank.

“You have to make sure that the people who have communicated with you are the people you think they are,” Kennedy says.

Beware of Ransomware

“The most common cybercrime that jewelers are reporting to Jewelers Mutual Group involves a ransomware event,” says Don Elliott, the insurance company’s director of claims.

These crimes start when someone unwittingly clicks on a link that triggers a download of malware. The ransomware then infects your computers and prevents your accessing the programs you need to operate your business.

“If they’re going to be getting into your internal network,” Lipsky says, “they can hold your site hostage or your network hostage.”

Experts consider ransomware to be every organization’s most critical threat. That’s because often the only way to recover your data is to pay the ransom, usually in the form of cryptocurrency, Chipman says.

How to Fight Back

The good news is there are steps you can take to protect your company, your reputation, and your bottom line from an expensive and disruptive cybercrime.

• Invest in your digital security.
Jewelers’ Security Alliance recommends that businesses invest in software protection including firewalls and antivirus and anti-malware programs. If your business isn’t large enough to have an information technology professional or team on staff, work with a third-party cybersecurity expert or business.

Cyber liability insurance comes highly recommended because it can compensate you for losses due to business interruption and the cost of recovering compromised data. If the cybercrime included the theft of customer data, your coverage can also cover money you spend on a crisis communications plan, as well as damages associated with ransom payments and associated legal bills.

“The technology in the field is changing so rapidly, it helps to work with a specialized carrier,” Chipman advises.

• Mitigate human error through training.
“I can’t stress enough that every organization should really be training their employees on things to be aware of, like phishing schemes,” Chipman says.

Companies such as HMH Consultants & Security Services, which has offices in Houston and London, can perform audits by staging a mock phishing campaign to pinpoint where your staff might need additional education.

Experts advise conducting training on a regular basis to reinforce vigilance. “The training piece is not a one and done—it’s got to be a recurring thing,” Chipman says.

• Update software and passwords regularly.
Another way to defend your cybersecurity is to shore up employee credentials such as passwords. Janet V. Hallahan, a partner at the law firm Practus LLP, recommends implementing software that requires the use of strong passwords and mandating that your staffers update those passwords regularly.

Jewelers Mutual recommends establishing and maintaining a protocol for key employees to periodically verify security patches and software updates with tech providers, because these companies regularly revisit their offerings in order to strengthen security. To thwart fraudulent transactions, JM also suggests having clear procedures with multiple layers of authorization in order to approve changes in payment processes, accounts, or vendors.

• Tread carefully when it comes to customer info.
Implement good practices around handling customer data by asking for information on a need-to-know basis, using strong encryption software, and never storing payment information.

“For credit cards, the best thing to do is to not store them,” Lipsky says. “You can use tokens”—which securely link to, rather than store, customers’ credit card data—“or store them on the processor side. Passwords you have to store, so they should be encrypted.”

• Have an emergency plan.
The best time to develop a response to a cyberattack is before the incident takes place.

If you suspect a breach, get offline so the crook can’t send directions to the malicious software. “If you’re hacked, disconnect from the internet,” Ruddock says.

In the event customer data is compromised, those customers need to be informed. Companies that have suffered a cyberattack “would need to assemble a crisis communications team, including hiring an attorney,” Ruddock says. “All 50 states have data breach notification laws—they need to make sure they’re going to be in compliance.”

It’s also critical to contact law enforcement and your bank as soon as you uncover the crime. In some cases, they may be able to stop a fraudulent transaction or payment transmission.

But time is of the essence, according to Ruddock. “If you contact law enforcement within 72 hours, they have a chance at returning your funds.”

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You’re feeling it. Customers are feeling it. The state of the economy, fraught with rising prices and interest rates, is weighing you down in the middle of the holiday season.

How does inflation affect consumer spending? How will it affect your bottom line? What can you do to mitigate losses? How do you move product when everyday expenditures like gas and groceries are through the roof? We asked retailers and industry analysts to offer answers to these questions and more.

A Look Back

To start, let’s put the current economy in context. Is the situation as dire as the financial crisis of 2008, which triggered a massive recession that industry people still talk about?

Not by a long shot, says Paul Zimnisky, a New York City–based diamond industry analyst. “That was a banking, credit, and mortgage crisis,” he tells JCK. “At the moment, banks are not distressed and the housing market, while volatile, is not on the brink of a collapse, based on my analysis. The economy and the American workforce are resilient, but all of this volatility can give you vertigo.”

That said, protecting margins is important and affects how you should price this season’s stock. “Luckily, jewelry is a luxury item, so in general consumers are less sensitive to price changes,” Zimnisky says. “This becomes more apparent at higher price points, but in general this holds true with luxury.”

Feeling the Burn

OK, so it’s not 2008-bad. Even so, “the impact of inflation will likely be passed along all the way through the supply chain,” Zimnisky says.

And what, exactly, does that mean for retailers?

“Everything is more expensive in 2022,” says Anne Russell, executive vice president of Hamilton Jewelers, which has locations in New Jersey and Florida. “One recent example is the costs to publish our in-house Hamilton Accent magazine. The newest edition was at least 20% more expensive to produce, from paper to postage.”

Tiffany Bayley, owner of Avalon Park Jewelers in Orlando, Fla., says inflation has impacted the cost of custom work, the melee she uses for repairs, even lunch. “I treat my staff to lunch two to three times a week,” she says. “For four to five people, lunch used to run about $50–$65. Now it’s always over a hundred. Those numbers will add up at the end of the year.”

As a bench jeweler, Derek VanVlerah of Bolenz Jewelry in Alpena, Mich., recently received a cost-of-living raise. “The cost of my time on jobs has gone up, so the customer is paying more for labor,” he says.

Debbie Klein, owner of Art & Soul, a jewelry gallery in Boulder, Colo., says the cost of labor is her biggest concern. “My retail sixth sense tells me that it’s going to be a long winter,” she tells JCK. “I had a staff turnover last January and had to raise my starting rate in order to be competitive. To be fair to my existing staff members, I had to raise their pay rates as well. With my increase in labor combined with the price increase in all of our supplies, packaging, and shipping, it won’t take much to tip the balance.”

For any jewelry business, controlling costs is a vital step toward staying afloat in an inflationary environment. Regarding labor costs, David Cochran, president and CEO of Manufacturing Jewelers & Suppliers of America (MJSA), cautions against permanent wage hikes to cover temporary price increases because “wage and salary increases are hard to rescind,” he says. “I favor bonuses and incentive-based compensation, which floats with conditions.”

One often overlooked suggestion is to take a hard look at your overhead expenses. “It is a rare company that can’t save 5%,” Cochran says. “I’ve learned that examining every line item can yield meaningful savings. Every company benefits from a scrounger and a negotiator.

“Sometimes just asking for a lower price works,” Cochran adds. “Other times, getting three quotes does the trick. Whether it’s bottled water, alternative energy suppliers, maintenance costs, lease savings, or tax abatements, the savings can be substantial.”

Navigating Price Increases

The cost of goods has gone up at virtually every stage of the supply chain. “For instance, a prominent diamond miner recently said that their explosive costs are up over 80% year-over-year,” Zimnisky says.

In the retail trenches, costs of materials like melee, chain, and findings as well as designer collections are up 5%–10%, according to retailers. Most business owners that JCK spoke with said they are proceeding with their usual markups, but not without anxiety.

“When a designer increases their prices, we re-price our current stock to be in line with theirs,” says Klein, whose store carries brands such as Alex Sepkus and Atelier Zobel. “Most of my designers have increased their prices over the past year to a varying degree, but a small increase for them can often put an item into a different price category, making it seem like a large increase.”

It’s the same for Harvey Rovinsky, owner of Bernie Robbins, which has multiple locations in New Jersey. With nonbranded jewelry, “we adjust the pricing to the market, but will discount heavily if we are looking to move the merchandise.”

Not every supplier or designer is automatically passing on inflationary cost increases to retailers, according to MJSA. “It’s largely dependent on each company’s individual circumstances, including their margins by product, tolerance for reduced margins, whether they are selling from existing inventory or newly manufactured goods, the strength of their customer relationships, the position their competitors have taken, among other considerations,” Cochran says.

But price-increase policies that vary from vendor to vendor can strain retailer/supplier relationships. And according to Andrea Hill, president and CEO of Hill Management Group, which specializes in the jewelry, luxury, and lifestyle business sectors, it’s not necessarily inflation that’s causing the tension. Rather, “it’s poor relationship dynamics,” she says.

“Much like a marriage may seem fine until a teenager starts acting out, inflation pushes buttons that a weak relationship isn’t prepared to deal with,” Hill explains. “A rational person knows that we are all dealing with cost increases right now, so if relationships are strong, nobody is tempted to feel personally attacked or slighted when prices are raised. But if a retailer is not already dealing with trusted suppliers or is shopping across a few hundred suppliers and not concentrating their relationship power, then those relationships weren’t strong to begin with and will likely become weaker under the pressure of price increases.”

Customer Response

On a macro level, Zimnisky says his research and analysis suggest that “consumer spending on sub-$500 price point merchandise has clearly declined,” an indication that low- to moderate-income Americans are tightening their belts.

But for people who are in stores, or shopping for jewelry online, inflation does not seem to be top-of-mind, retailers tell JCK. The most common explanation: Consumers have grown accustomed to price increases in their everyday lives, so the price for a jewel that was $999 last year and is now $1,048.95 doesn’t feel like highway robbery.

“I’m finding that our customers really want unique pieces that not everyone is selling or seeing elsewhere,” says Laura Kitsos, owner of Gem Jewelry Boutique in Oak Park, Ill. “They are willing to pay the appropriate price for something special like that.”

Rovinsky at Bernie Robbins—whose branded lines include Roberto Coin, Rolex, Marco Bicego, David Yurman, Hearts On Fire, and Shy Creation—says he hasn’t noticed any price resistance among customers. Year-over-year price increases have “not impeded our sales or consumers’ preferences and purchasing behavior.”

Moving—and Pricing—Tired Inventory

If sales are slow during this tricky economy, you could end up with dead stock—and you need to clear the decks for fresh holiday merchandise. What then?

“I have heard a lot of jewelers say they are not raising their prices on old inventory,” Bayley says. “They better! We are all going to be spending more this year on everything. You have to raise your prices. The money has to come from somewhere. It can’t be from your profits.”

If it’s a piece that is made to order (and reorder), some jewelers are adjusting their pricing to account for current gold prices and what the market will bear. If it’s a one-of-a-kind, they keep the legacy price intact in the hopes of moving the item. “You lose the opportunity to have an increased margin on that particular piece, but cash in hand is better than an old piece in the case, and you will make a few extra dollars on the more current work,” Klein says.

Meanwhile, Bayley suggests putting the unsold goods up for sale under another business name online (i.e., Etsy). “This prevents my customers from becoming upset that they were not offered that price,” she says. “I also ship it to other stores to sell at full retail, which allows them to benefit from the profit and I don’t lose on my investment.”

A number of stores offer layaway plans, where customers pay for their jewelry over time. Diane Richardson of The Gold Hatpin has a brick-and-mortar store in Oak Park, Ill., and also does brisk business on Instagram. “I often suggest layaway when I get a sense that the customer is on a tight budget, which frequently helps to make the sale,” she says.

Visible Pricing

Besides finding ways to cut costs internally, various retailers report that making price tags visible in the case is a selling strategy that has worked for them.

“We are combating that old adage, ‘If you have to ask, you can’t afford it,’” says Jamie Hollier, owner of Balefire Goods in Denver. “Some people are intimidated by jewelry shopping, so having transparency allows people to feel more comfortable with the process and to feel like we are not trying to hide anything.”

Hollier thinks stores may hide prices in the belief that the customer will fall in love with the piece first and then purchase, or that they can more easily upsell when prices aren’t visible. “We find it is actually easier to create a loyal customer and upsell when the customer perceives that we aren’t wasting their time by showing pieces that are just not attainable.”

Other retailers take a different approach to displaying prices.

“The tags make the case look a mess,” says Bob Goodman, co-owner of Robert Goodman Jewelers in Zionsville, Ind.

Bayley, too, falls in this camp: When all of your prices are visible, “it looks like a Costco,” she says. “But you should select two to three items from each case that have great perceived value and show the price. Even if a customer is ‘just browsing,’ they will have a different perception of your inventory. Having great-looking stock is one thing. Having great-looking stock that customers perceive to be affordable is another.”

For Klein, not showing prices gives staff the opportunity to explain to a client why something costs what it does in terms of material or labor or both. “I do have a few cases in my store where I display lower-end lines, especially for holiday,” she adds. “A tag flipped over here and there shows that we do have a variety of price points available.”

When it comes to selling on Instagram, “I don’t know why more sellers don’t post prices,” Richardson says. “For a long time, I had thought there was some unwritten rule that Instagram wants the site to be social instead of salesy. I think seeing the price without having to request it helps the customer consider her purchase without embarrassment and removes that extra step in her busy life of having to request and then wait for the answer.”

More Ways to Increase Margins

Ahead of an inflation-plagued holiday season, some retailers say the key to improving margins hinges on curating the perfect mix of big-ticket items and price-point purchases that are snapped up quickly—and often.

“The sweet spot is between $250 to $1,250,” Kitsos says. “We are doing well with Celine Daoust, Pascale Monvoisin, Gigi Clozeau, and Petite Baleine, mostly in yellow gold.”

At Muse x Muse, located in New York City on an upscale block in Manhattan’s West Village, owner Jennifer Shanker, who also heads an adjacent showroom by the same name, says she and her team will focus on “maintaining an interesting assortment of quirky collectibles for quick neighborhood needs or spontaneous splurges”—including midcentury modern vases, custom candles, and colorful cashmere. Shanker says accessibly priced jewels by designer Bea Bongiasca fit the bill. “The carved heart, moon, and eye charms from Ten Thousand Things are also well priced, as are the gender-fluid beads from Luis Morais.”

The Road Ahead

Perhaps the best advice for navigating this inflationary holiday season comes from Hill. Try tuning out the news for awhile, she advises. “Inflation has always been a part of economies and it always will be,” she says. “It will pass, and in the process, some businesses will get really smart and sharpen their saws, other businesses will flounder through it, and still others will not be able to survive.

“In all those cases,” Hill adds, “the outcomes will be driven by the underlying strength and characteristics of the business, and not by inflation itself.”

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