A Note from Las Vegas

It's that time of the year again. Magazines are full of celebrity babies, stores are packed with the summer gems, and the jewelry industry is sweating en masse in the middle of the desert. It's Vegas time for jewelers and friends as the Venetian and Wynn Hotels fight for the attention of the international visitors who have traveled here in their thousands to find out what's new and what's news.

Tomorrow, following the JCK and Signature Saloons, the Luxury and Couture Shows – which highlight the wares and ideas of those catering to the higher-end of jewelry consumer demands – kick off. As the shows close today to make way for their larger sister shows, initial reports indicate that new styles are finally taking hold. Jewelry is slowly becoming fashion forward with many designers highlighting the urban chic theme that dominated most of the European shows earlier in the year.

At Luxury, Phil Lempert, a leading consumer trend analyst and author likened spotting trends to spotting an elephant. “Once you see the elephant you want to capitalize on it. Like elephants, trends are big and lumbering and move slowly. It’s important to isolate the trend and get in front of it to take advantage of opportunities,” he said.

According to Lempert, “The future of the luxury market is in the 3 C’s: Cater to educating the shopper; Create a convenient shopping experience; and Celebrate the purchase – make the customer feel good about buying the item.”

Personal relationships and trust are key aspects. “You need to build a relationship,” Lempert stressed. “Decide if you want to sell a piece of jewelry once or every time the customer has a life experience. Reach out to them to keep them buying your product.” One attendee reinforced this point when she shared how her husband would spend one – two hours with a customer, talking to them about everything – their children, family, pets, etc. and he always made the sale – typically averaging $10K - $30K.

Lempert identified nine important trends affecting the luxury market today:

• Consumers are hungry for information. Technology and hand held devices are key, as  customers have more information at their immediate disposal than ever before. Be sure to Google your brand store to know what is being said and what is out there.
• Obsession with celebrities. Track this and incorporate who they are and what they are wearing.
• Aging Baby Boomers buy luxury items for themselves. It makes them feel better. In the next 15 years inherited wealth and estate jewelry will also change the landscape.
• Luxury hits the Internet hard. Sell on the Internet and use it to reach out.
• Store marketing – use the power of the senses and technology to your advantage.
• Think America the Green. Consumers are more concerned about the environment.
• Identity and theft protection fuels growth of RFID (Radio Frequency Identification) in products and services and fuels new levels of conscience awareness and acceptance. Look for ways to incorporate to your advantage.
• Jewelry designers and retailers target their products to consumer tastes and desires on a regional basis. You’ll offer different pieces to a Latin population than to Chicago. Ask the customer what they want.
• Rise of community focused retailer shifts dollars and shoppers.