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January 2000 Diamonds News Brand Express – Branding Update Many jewelers are already sick of branding. But if diamond manufacturers are right, there will be more branded diamonds in the years ahead The new year is a time of predictions. Consider these from the head of one of the nations' fastest-growing branded-diamond manufacturers:
Glenn Rothman, CEO of Hearts on Fire,® Boston, MA, told about 300 retail jewelers attending a three-day training program in Las Vegas he expects De Beers to expand its branding program to the U.S. because it has changed from a company benevolent to retailers to one paying attention to disgruntled stockholders. "This means creating the maximum amount of profit possible," he says. "If De Beers can control [diamonds] from the mine to the finger, it will maximize profits." But Rothman, who is admittedly probranding, doesn't feel this will hurt the diamond business. "It will open up new opportunities. It will result in branded diamonds being thought of as 'new diamonds' and worth more. It will create a new industry." Do Others Agree? Along with Rothman's Hearts on Fire, several other well-established
names have taken the consumer branding plunge, including Lazare
Kaplan and Keepsake, a division of Frederick Goldman, both based
in New York City. Industry experts are bracing for the rush of
other names to appear soon. Richard Goldman of Frederick Goldman, which bought the Keepsake brand and reintroduced it in late 1998 and early 1999, agrees. "Retailers need a proper mix of branded and generic diamonds because brands will attract people," he says. "It's important for retailers to pick the best brands for their market, to be consistent with the image of the store." He advises retailers to look for companies that will help promote their brands with events such as trunk shows. "You've got to add a little theater," he says. The exclusivity of a brand will help jewelers get higher profit
margins and differentiate their stores, says Marcie Feinberg
of Lazare Kaplan, which is also bullish on brands. Brands draw the public, because the public understands that a branded product means quality and that someone will stand behind it, says Feinberg, whose company was the first to call well-cut diamonds Ideal cut. She advises starting slowly with one brand to "see how it works." She also advises retailers to always research and choose companies that will stand behind their products. If You Choose Retailers need to act quickly when choosing a brand, says Rothman. "Get it before it's taken by someone else in the neighborhood," he says, adding that though many brands may be available, history shows only the top few are highly recognized. When will the big rush start? Rothman thinks De Beers will have its branded diamonds in the U.S. in three to five years, offering them through retailers rather than directly to consumers. He didn't rule out direct sales on the Internet. "It's conceivable De Beers will have a delivery system directly to the consumer," he says. – by Jack Heeger
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