Sunday, June 17, 2007
The Capping Mechanism In Name Only
Chaim Even-Zohar writes about the rising sense of frustration regarding DTC sight application processes + the ceiling on an applicant's sight allocation + the misunderstandings of the rules of the game @ http://www.idexonline.com/portal_FullEditorial.asp
Saturday, June 16, 2007
Ocean's Thirteen
Memorable quote (s) from the movie:
Linus Caldwell (Matt Damon): He owns all of the air south of Beijing.
Abigail Sponder (Ellen Barkin): The air?
Linus Caldwell (Matt Damon): Let me put it to you this way: try building something taller than three feet in the Tiangjin province, and see if his name comes up.
Linus Caldwell (Matt Damon): He owns all of the air south of Beijing.
Abigail Sponder (Ellen Barkin): The air?
Linus Caldwell (Matt Damon): Let me put it to you this way: try building something taller than three feet in the Tiangjin province, and see if his name comes up.
Marketing In The 21st Century
The author highlights the competitive nature of new version of gem and jewelry businesses + ways to improve customer satisfaction + challenges in maintaining high standards + reaching specialized and niche markets.
Pam Welborn (The Color Source, Texas, USA) writes:
In the 21st century, successful companies will have to bring their products to market efficiently. In the jewelry industry, this trend will favor those companies whose capabilities include gem rough sourcing, as well as in-house cutting, design, and manufacturing operations, and even distribution channels. Such companies can control quality and cost at every stage of production and will provide savings in terms of lower per-unit costs. Also, by controlling the design function and by associating with trusted partners in foreign markets, such companies can tailor their jewelry products to reflect the distinctive cultural designs of those markets for greater acceptance and sales. The Internet can also be used to post an online catalog of jewelry items, sell the products, and facilitate a rapid delivery service to the targeted market.
The increased efficiency of all these efforts will shorten the delivery time from the manufacturing center to the end consumer. A higher level of contact with the consumer using the Internet and call centers, located in favorable labor countries, will decrease response time and increase customer satisfaction.
Such companies are Internet savvy, computer driven, and focused on high quality standards of manufacturing. They are able to produce jewelry items for a specialized, niche market as well as produce a limited edition or an exclusive design for a national market. Global opportunities are limited for most companies. Therefore, a major upheaval in the next 10 years is likely as the jewelry industry adapts to this new paradigm.
Pam Welborn (The Color Source, Texas, USA) writes:
In the 21st century, successful companies will have to bring their products to market efficiently. In the jewelry industry, this trend will favor those companies whose capabilities include gem rough sourcing, as well as in-house cutting, design, and manufacturing operations, and even distribution channels. Such companies can control quality and cost at every stage of production and will provide savings in terms of lower per-unit costs. Also, by controlling the design function and by associating with trusted partners in foreign markets, such companies can tailor their jewelry products to reflect the distinctive cultural designs of those markets for greater acceptance and sales. The Internet can also be used to post an online catalog of jewelry items, sell the products, and facilitate a rapid delivery service to the targeted market.
The increased efficiency of all these efforts will shorten the delivery time from the manufacturing center to the end consumer. A higher level of contact with the consumer using the Internet and call centers, located in favorable labor countries, will decrease response time and increase customer satisfaction.
Such companies are Internet savvy, computer driven, and focused on high quality standards of manufacturing. They are able to produce jewelry items for a specialized, niche market as well as produce a limited edition or an exclusive design for a national market. Global opportunities are limited for most companies. Therefore, a major upheaval in the next 10 years is likely as the jewelry industry adapts to this new paradigm.
The Emerald Business In South America
Here is an interesting overview on the state of emerald mines and the new business model for the industry.
Andrew Lucas (GIA), Eric Welch (GIA), Jean Claude Michelou (ICA, Colombia), Marcelo Ribeiro (Belmont LTDA, Brazil), Luiz Martins (Stone World, Brazil), Pedro Padua (GIA) and Sergio Martins (Stone World, Brazil) writes:
South America is considered by many in the gemstone industry to be the most important continent for emerald production. Colombia is the number one exporter of emeralds to the United States, and Brazil is also a highly important commercial source of emeralds. This information was obtained during two trips to the mining areas organized by the International Colored Gemstone Association and subsequent correspondence with ICA members.
The techniques used to explore and develop new mines, such as the Piteiras mine in Minas Gerais, Brazil, are typically more common for diamond mines than for colored stone mines. Emerald cutter and wholesaler Stone World of Sao Paulo, Brazil, formed a joint venture with Seahawk Minerals to vertically integrate the operation from mine to cutter to wholesale office. The Belmont mine, also in Minas Gerais, began in a more traditional process for colored stone mines. Emeralds were found on this property, which still operates as a cattle ranch. The Belmont mine began as a highly successful open pit operation, which continues today. The most advanced resources in geological modeling and mine planning have led to the opening of an underground mine to complement the open-pit operation. Belmont has an extensive sorting operation for their rough to meet the needs of their customers.
The La Pita area in Colombia has become the major commercial emerald-producing area in the country, with most production coming from the Consorcio mine. A number of other productive underground mines also exist in this area by the Rio Minero, including the La Pita Tunnel, Cunas, El Totumo, and Polveros mines. The Puerto Arturo mine in Muzo is still in production and under control of the Carranza group, which also has a minor partnership in the Consorcio mine and an influential stake in the Cunas mine. Many of the mine stakeholders in Colombia, whether they have interests in the La Pita, Muzo, Coscuez, or Chivor areas, are also involved in cutting and wholesale sales of polished goods.
Andrew Lucas (GIA), Eric Welch (GIA), Jean Claude Michelou (ICA, Colombia), Marcelo Ribeiro (Belmont LTDA, Brazil), Luiz Martins (Stone World, Brazil), Pedro Padua (GIA) and Sergio Martins (Stone World, Brazil) writes:
South America is considered by many in the gemstone industry to be the most important continent for emerald production. Colombia is the number one exporter of emeralds to the United States, and Brazil is also a highly important commercial source of emeralds. This information was obtained during two trips to the mining areas organized by the International Colored Gemstone Association and subsequent correspondence with ICA members.
The techniques used to explore and develop new mines, such as the Piteiras mine in Minas Gerais, Brazil, are typically more common for diamond mines than for colored stone mines. Emerald cutter and wholesaler Stone World of Sao Paulo, Brazil, formed a joint venture with Seahawk Minerals to vertically integrate the operation from mine to cutter to wholesale office. The Belmont mine, also in Minas Gerais, began in a more traditional process for colored stone mines. Emeralds were found on this property, which still operates as a cattle ranch. The Belmont mine began as a highly successful open pit operation, which continues today. The most advanced resources in geological modeling and mine planning have led to the opening of an underground mine to complement the open-pit operation. Belmont has an extensive sorting operation for their rough to meet the needs of their customers.
The La Pita area in Colombia has become the major commercial emerald-producing area in the country, with most production coming from the Consorcio mine. A number of other productive underground mines also exist in this area by the Rio Minero, including the La Pita Tunnel, Cunas, El Totumo, and Polveros mines. The Puerto Arturo mine in Muzo is still in production and under control of the Carranza group, which also has a minor partnership in the Consorcio mine and an influential stake in the Cunas mine. Many of the mine stakeholders in Colombia, whether they have interests in the La Pita, Muzo, Coscuez, or Chivor areas, are also involved in cutting and wholesale sales of polished goods.
The Missed Boom...
Chaim Even-Zohar writes about the contraction of the rough diamond supply sources + pros and cons of present acquisitions and mergers in the mining world + explanations on non-diamond boom, especially in copper, cobalt, gold, zinc and nickel @
http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27576
http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27576
Gemstones Of The Future
Joel Arem writes:
Jewelry store is where the public learns about stones. And the typical jeweler’s business in colored stones is only 10% +/- of his overall trade. Because of this most jewelers are not well informed about colored stones and cannot effectively promote them. A cyclical chain of events begins here at the jewelry store and ends there as well. What is not offered to the public, the public has no chance to discover, and without awareness there is no demand. Therefore obviously without demand, there will be no sales or increased sales. The break in this vicious circle will come only through education. As we all know, education in the form of advertising is expensive but this is what is needed to change the direction of the gemstone market. The best example of this is the classic success story of the diamond industry on a grand scale and the familiar story of tanzanite on an impressive smaller scale. We, the gemologist, jeweler and gem dealer, have the responsibility to educate the public about what gems are available. This can be accompanied by increasing the varieties displayed and more importantly knowing all there is to know about each and every one of them. Of the 259 mineral + species only 30-40 are durable enough for us in jewelry and of the remainder about 15 are seen with regularity and are considered commercial. The rest are either too soft or fragile and should be classified as what he terms the ‘collector’ stones or ‘exotics’.
It is necessary to consider some of the reasons why diamonds are so popular. The first consideration is supply. There is sufficient quantity available to be marketed on a large scale. The market was created and maintained brilliantly. What the public buys is what the public sees. If gems are not shown to the public through the jewelry stores and if they are not promoted at this level, they will never become popular. There is also a fine balance between supply and demand. Some gemstones have disappeared from the marketplace due to exhausted sources. Gems are like oil wells, when they are depleted that’s the end. You go to some place else.
The real excitement will come when the gemologists can convince the jewelers to learn, to promote and to teach the public. This will achieve a ground swell of interests that will result in exposure, high prices, more enthusiasm and mining + new localities. It will all start to happen. It’s our job and our challenge.
Jewelry store is where the public learns about stones. And the typical jeweler’s business in colored stones is only 10% +/- of his overall trade. Because of this most jewelers are not well informed about colored stones and cannot effectively promote them. A cyclical chain of events begins here at the jewelry store and ends there as well. What is not offered to the public, the public has no chance to discover, and without awareness there is no demand. Therefore obviously without demand, there will be no sales or increased sales. The break in this vicious circle will come only through education. As we all know, education in the form of advertising is expensive but this is what is needed to change the direction of the gemstone market. The best example of this is the classic success story of the diamond industry on a grand scale and the familiar story of tanzanite on an impressive smaller scale. We, the gemologist, jeweler and gem dealer, have the responsibility to educate the public about what gems are available. This can be accompanied by increasing the varieties displayed and more importantly knowing all there is to know about each and every one of them. Of the 259 mineral + species only 30-40 are durable enough for us in jewelry and of the remainder about 15 are seen with regularity and are considered commercial. The rest are either too soft or fragile and should be classified as what he terms the ‘collector’ stones or ‘exotics’.
It is necessary to consider some of the reasons why diamonds are so popular. The first consideration is supply. There is sufficient quantity available to be marketed on a large scale. The market was created and maintained brilliantly. What the public buys is what the public sees. If gems are not shown to the public through the jewelry stores and if they are not promoted at this level, they will never become popular. There is also a fine balance between supply and demand. Some gemstones have disappeared from the marketplace due to exhausted sources. Gems are like oil wells, when they are depleted that’s the end. You go to some place else.
The real excitement will come when the gemologists can convince the jewelers to learn, to promote and to teach the public. This will achieve a ground swell of interests that will result in exposure, high prices, more enthusiasm and mining + new localities. It will all start to happen. It’s our job and our challenge.
Friday, June 15, 2007
Deal Cut On Elephants And Ivory
Richard Black writes about the deal made by South African nations on the immediate future of the ivory trade @ http://news.bbc.co.uk/2/hi/science/nature/6751853.stm
Blue Nile Blues
Rob Bates writes about Blue Nile, the thriving dot-com company that has been around for only eight years with striking sales of US$300 +/- million @ http://jckonline.com/article/CA6447692.html
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