Royal Asscher Plans China Expansion through Alliance with Sparkle Roll Group

Royal Asscher has begun a strategic alliance in China and Macau with the Sparkle Roll Group Ltd., a distributor of top-tier luxury goods in China.

The alliance is for a period of 10 years, with an option to be renewed for another 10 years and will focus on the promotion and sales of several Royal Asscher diamonds and jewelry lines, most notably Royal Asscher Cut Diamonds the Stars of Africa Collection

“We have established a firm foothold in the Japanese market for 45 years where we supply 125 jewelers,” said Edward Asscher, President of Royal Asscher. “Next to the U.S. and European markets, the People Republic of China (PRC) is the fourth greatest market for our 159 year-old Asscher family company. We believe that Sparkle Roll's market leadership and extensive distribution network will help expand our reach across the broad spectrum of target audiences in the China and thus reinforce our presence in the market.”

Ivan Tong, chairman of Sparkle Roll added, “We began this exclusive distributorship in March 2011 and we are confident that Royal Asscher will be one of the most successful jewelry brands in the PRC.” 

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Excellence: The Experience Your Customers Deserve

This is the first in a series of articles by Mónica Arias of Excellence Consulting, a luxury sales and marketing consulting firm based in Buenos Aires, Argentina. These articles will focus on ways that sales and marketing professional in the jewelry and luxury industry can improve their techniques.

So much has been said about improving customer service during the past decades that, given the global exposure of firms on the Internet and the world economic turmoil, one could easily assume this issue does not exist anymore simply because in theory, companies should have learned enough from the tough lessons associated with a poor customer assistance in the past.

Unfortunately, the problem not only persists but it has also become a real challenge to overcome, especially in the retail arena, and more specifically, in the luxury retail industry where excellence is non negotiable.

Customers are Kings (and Queens!). These words should be repeated like a mantra every day, all day long, by anyone trying to do business nowadays. And, more importantly, they should be put into practice just for the sake of business survival. Whether small or large, a company that provides luxury services or products that does not excel in customer service, even through small details, is paving the road to hell.

Let me give you an example: let´s imagine you may be inclined to get a lovely piece of jewelry for your beloved. The idea warmed up for a while in your head and the decision is finally made to visit a renowned jewelry store. You step in, confident that you will be received like a King—after all this is a shop you do not put your feet into everyday as it is the supermarket or any retail store you visit with certain frequency. Instead, you just get what I call “a scanning look” and someone with unforgettable body language clearly indicates you are not especially welcomed, even with a slight smile on their face. Believe me, you do not actually “see” this, but you clearly feel it.

You may think this is unusual in the luxury industry. It is my duty to tell you it is not. Reality shows that many luxury companies judge their clients either by their aspects, their race, their origin, the way they speak or move, they way they are dressed, and the list is endless. Moreover, they “rely” so much on their brands, reputation, tradition and marketing campaigns that they generally forget self-criticism and/or periodic research to understand what kind of feedback they receive from clients, how are they being perceived and, most importantly, if their customers  really like them.

Prejudice, unwillingness, lack of enthusiasm, poor or inexistent customer oriented training, payment systems that do not work properly after the sale is done, salespeople who are not trained in the appropriate way to offer a service of excellence to customers, the lack of a system to build trust and loyalty is only part of the problem.

Business owners and salespeople in the luxury segment have countless excuses not to address this lack of attention to their business core. Excuses come in all sizes and colors, and of course the matter of “budget” is one of the most common ones. However, excellence in customer service has more to do with small details, attitude and care than huge budgets.

People need to feel the great experience of having purchased with you, and you need to acknowledge that the sales process has evolved, so you need to learn how to transcend your clients` expectations by providing the excellence service they deserve. Always.

Mónica M. Arias is a luxury sales and marketing specialist and a Spanish and English translator. She has spent 15 years experience working in a variety of sales marketing positions for several multinational companies. She is skilled in advanced sales techniques and is a proven expert in person-to-person interaction—both commercial and personal. She can be reached at contacto@monicaarias.com.ar.

LJ International Revenues Up 36%

LJ International Inc. on Tuesday reported a 36 percent year-over-year increase in revenues for the third quarter ended September 30. Sales and income growth reflected an 83 percent rise in sales at LJI's ENZO retail chain of jewelry stores in China.

The Hong Kong based company makes gold, platinum, and sterling silver jewelry set with diamonds and precious and semi-precious stones at its plant in Shenzhen, China. It markets its jewelry primarily under the Lorenzo brand name to retailers in Europe and North America. It also sells jewelry through fine jewelers, discount chains, department stores, television shopping channels, and in about 100 of its own ENZO retail stores in China, Hong Kong, and Macau.

The company said it expects fourth quarter 2010 sales for ENZO to increase 40 percent year-over-year, offsetting an approximately 15 percent decrease in wholesale revenues.

"Today's results clearly demonstrate how our retail-based growth strategy is succeeding as planned," said Yu Chuan Yih, LJI's chairman and CEO. "Our ENZO division is the primary driver of both sales growth and margin improvements at all levels, from gross to net profit. Retail sales also are rising not just from the opening of new stores but from significantly higher sales on per-store basis. With new financing in place to fund at least 60 new ENZO stores in 2011, LJI is on track to take advantage of continuing economic growth in China while holding its own as a leading jewelry wholesaler in slower-growing global markets."

LJI's company-wide revenues for the third quarter rose 36 percent year-over-year to $35.7 million. Retail revenues were up 83 percent to $21.1 million. Same store retail sales rose 13 percent for the period. Wholesale revenues were down less than 1 percent to $14.6 million.

Rising retail revenues reflected expanded store count (up to 124 at the end of the third quarter from 92 a year earlier) and growing consumer interest in ENZO jewelry lines coupled with the continued rise of disposable income in China's expanding economy.

As in past quarters, gross margins for retail revenues were substantially higher than wholesale. Gross retail profit in the third quarter of 2010 was $10.6 million, or 51 percent of retail revenues. Gross wholesale profit was $3.4 million, or 23 percent of wholesale revenues. Overall gross profit was $14 million, or 39 percent of revenues.

LJI's operating income for the third quarter of 2010 was $3.7 million, or 10 percent of revenues, up 188 percent from $1.3 million, or 5 percent of revenues, a year earlier. The improvement was due both to the sharp rise in higher-margin retail sales along with effective controls on sales, general and administrative expenses, the company said.

Retail operating income was $3.1 million, or 15 percent of retail revenues, up from $1 million, or 8 percent of retail revenues, a year earlier. Wholesale operating income was $1 million, or 7 percent of wholesale revenues, compared to $$500,000, or 4 percent of wholesale revenue, in the third quarter of 2009.