Richline Group Acquires Three Italian Brands

The Richline Group jewelry company has bought three privately held Italian jewelry brands for undisclosed amounts, Reuters reports.

Richline, headquartered in Mount Vernon, N.Y., and Tamarac, Fla., bought the rights to children’s jewelry maker Erz, earrings and bracelets maker Farinex and 7AR, a part of the Rosato jewelry group, based in Arezzo and Milan, Italy, according to the report.

“This is another important and strategic addition to our expansion into the international arena,” Dennis Ulrich, chief executive officer of Richline Group, reportedly said in a statement.

Richline Group announced in January it would buy privately owned Italian jewelry manufacturer Rosato, known for its gold and enamel charms. Instead, Richline opted to buy the 7AR brand, a branch of Rosato, Reuters reports.

Richline Group, a wholly-owned subsidiary of Berkshire Hathaway Inc., was formed in 2007 and includes such brands as Andin, Alarama, Aurafin, Auragem and Bel-Oro.

Is the Kimberley Process Dead? Does Anybody Know or Care?

A miner holds the fruit of his labor at the Marange mine.

While the international jewelry industry was meeting in Las Vegas this week, the big news was coming out of Africa as the Voice of America and other publications reported that the Kimberley Process Certification Scheme is in “turmoil” after South Africa announced that it will purchase diamonds mined at the controversial Marange diamond field in Zimbabwe.

A spokesman for South African Mineral Resources Minister Susan Shabangu, said the country’s position is the same as that of Kimberly Process Chairman Matthieu Yamba, who issued a statement in January saying Zimbabwe can freely sell its diamonds from Marange, even though there was never a consensus among Kimberley Process members.

Meanwhile, the World Federation of Diamond Bourses, which protects the interests of the world’s diamond bourses, held a dog-and-pony show at the JCK Las Vegas jewelry trade show last week. I didn’t bother to attend, opting instead to keep scheduled appointments with jewelry manufacturers and designers who were actually doing something relevant. Prior to its event, the WFDB stated that it supports the exports of diamonds from Marange.

Again a little backtracking is needed. Please forgive me if you read this before. The Kimberley Process is an international organization made up of diamond industry representatives, government officials from 75 countries and non-governmental organizations. It is charged with preventing trade in illicit diamonds—commonly called “blood” or “conflict” diamonds, depending on whether you have a vested interested in the diamond industry. Illicit diamonds under the organization’s mandate are the result of diamonds being used to fund brutal civil wars where innocent people are being killed and mutilated by those involved in these conflicts.

The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as “conflict-free.”

I’ve been wondering what the KP does besides hold closed-door meetings, which to me is its biggest failure. How can an organization that exists primarily to ensure consumers that its products have been mined through legal means and without human rights abuses can provide that assurance while meeting in private. In fact, the KP does such a poor job of communicating with consumers that I would doubt that one in 20 jewelry shoppers know what the hell a “Kimberley Process” is, much less what it does.

The Marange diamond field, which many say contain the largest deposit of diamonds in the world, has been the scene of murders and other human rights abuses by Robert Mugabe’s government and its military. The Zimbabwe government say those abuses have stopped but human rights advocates say they continue; that money from mines is being used to finance the ruling party’s operations, including upcoming elections; and diamond smuggling is rampant. However, the country is not involved in a civil war, therefore under the KP’s mandate, Zimbabwe’s government and its allies believe they can sell its diamonds. Expanding that mandate to include human rights abuses not funded by civil war is one of the sticking points.

The human rights abuses eventually led the Kimberley Process to suspend buying diamonds from Marange. The KP voted to reinstate Zimbabwe in July, 2010, allowing two supervised exports of rough diamond from the Marange production in August and September. The date of the second sale was changed and the sale was held without public knowledge.

The issue of reinstating Zimbabwe into the KP Certification Process was the main item on the agenda when the organization met in November, 2010 in Jerusalem. After four days of closed door meetings (of course), participants failed to reach a conclusion. The issue is still unresolved with communications being issued only among KP participants and no information being presented to the public, unless it is leaked.

For its part, Zimbabwe government officials insist that it received approval to sell diamonds from Marange through the KP certification scheme. In addition, it has made statements that if the organization refuses to allow it to sell its diamonds it will do so anyway, possibly flooding the market with diamonds and reducing their value.

Meanwhile, a variety of organizations have already either banned its members from dealing in diamonds from Marange or have encouraged their members not to do so, including the Responsible Jewellery Council, RapNet, and MasterCut and the Company of Masters Jewellers in the U.K.

Now that South Africa will reportedly buy diamonds from Marange, there is no doubt in my mind and others that India and China will follow. So the market will either be flooded with diamonds that are not KP certified, or the KP will cave to the pressure and certify the diamonds. The first scenario should create a quick end to the KP while the second scenario will probably lead to a much slower demise.

In the end I wonder if it matters, since the general public has no idea that this organization ever existed in the first place.

First Look at New Royal Asscher Heritage Jewelry

Royal Asscher Diamond Company, the Holland-based firm that has been the jeweler to royalty throughout its 157-year history, earned its first Royal Title from the Dutch monarchy in 1980. That title was renewed in February and in its honor the company introduced two new rings.

Mike and Lita Asscher, representing the sixth generation of the family owned company, were on hand at Luxury at JCK jewelry trade show Wednesday to unveil the new creations.

The first is part of the company’s Stars of Africa collection, in which proceeds from the sales will go toward infrastructure, healthcare and education for children from African countries where diamonds are mined.

The 18k gold rings are plated with palladium to better enhance its white color. It incorporates the same clear half-sphere made of sapphire crystal filled with small diamonds that is the signature of the collection since it was introduced two years ago. The crystal half shells are filled with a clear silicone, which allow the tiny diamonds to float inside the ring as it is moves. In this case the diamonds are orange, representing the color of Holland. But as light hits the ring, the diamonds also take on a golden glow. The edge of the ring is lined with white diamonds and the side features the Royal Asscher crown logo.

The second piece is the Legacy vintage-inspired engagement ring, first mentioned last week on the Jewelry News Network, designed by Toronto-based jewelry designer Reena Ahluwalia. A signature Asscher cut diamond serves as the center stone of the platinum wave-like ring with smaller diamonds of different cuts detailing each side of the ring.

Jewelry News Network Turns 1

It’s hard to believe but my little blog that could is a year old today. It began with the idea that there was a need for a place online to bring consumers who are passionate about jewelry with jewelry, fashion and luxury professionals with stories that appeal to both groups.

The year has gone surprisingly well. Readership on the blog has grown at an average of 37 percent per month. I started a Twitter page that has grown as constantly and steady as the blog along with a facebook fan page. And, because of this blog, I’ve been able to reach larger audiences through Forbes.com, JewelleryNetAsia and Farlang.

This first year was an experiment to see if this type of format would have appeal. The answer is a resounding yes. There will be a number of changes for the second year. Among them is the Jewelry News Network will now be accepting advertising. In addition, there will be a newsletter for the blog.

Further down the road there are plans to expand the website and to increase our international coverage by building a team of correspondents in key jewelry markets around the world. The Jewelry News Network will be a network between the jewelry industry and passionate consumers and network within the global jewelry industry.

So thank you for taking the time to read this blog and I look forward to making this publication bigger and better in the upcoming year. As always, please contact me with any concerns, ideas or advice.

Anthony DeMarco
President and Editor-in-Chief

Las Vegas Jewelry Week

Mandalay Bay, the new home of JCK Las Vegas

The upcoming week in Las Vegas is going to be one of the most important for the U.S. jewelry industry in some time. The performance of jewelry trade shows for the next several days will help determine whether the industry is returning to a period of sustained growth following the single event of the economic meltdown of 2008, or if it is the victim of something bigger and more widespread—a cultural and technological change that is steamrolling traditional ways of assessing luxury, beauty and fashion; while providing new ways of delivering messages and products that are beyond the reach of an aging industry.

Of course the big news is that one of the largest and most successful shows in the international jewelry industry—JCK Las Vegas and its affiliate shows, Luxury at JCK and Swiss Watch at JCK—will be held for the first time at Mandalay Bay.

The change is the result of some downsizing and rightsizing due to recent economic realities and competition within the industry. Celebrating its 20th year, JCK Las Vegas has always been held at the Sands Expo & Convention Center, one of the largest conventions facilities in the country, which along with the adjacent Venetian Las Vegas offers approximately 1.8 million square-feet of space. The show was so successful that even in this space there was an annual waiting list of hundreds of companies.

Things changed dramatically during the 2008 global economic meltdown, which resulted in a dramatic shrinkage of the jewelry industry. No more waiting lists. More empty spaces. Fewer buyers. So now the show will be held at the newer, nicer although smaller space. Still, at 1 million square feet, it is huge by normal expo space standards.

Things have been changing for some time as other jewelry shows have opened and taken away some JCK exhibitors. The most notable change is that what has been termed JCK Las Vegas for years by the industry is now known in the industry as “Las Vegas Jewelry Week” or “Las Vegas Jewelry Market Week.”

The week begins with JCK at Luxury (May 31 – June 6). The first three days of the show is an invitation only gathering of luxury jewelry retailers and consumer press, which the show has been since its inception. The next four days, the show is open for all of those attending JCK Las Vegas. This is in no doubt in recognition of the only segment of the jewelry industry that continues to grow during this sluggish recovery. Autore, Breuning, Carl Messler and Danhov are among the approximate 230 luxury exhibitors at the show.

Swiss Watch at JCK (June 2 - 6) remains an appointment only event. There is no desire and seemingly no need for the luxury Swiss watch industry to change the way it does business as it continues to experience exceptional sales growth and consumer passion for its timepieces. Exhibitors run from Breitling to Zenith who will be seeing buyers in suites at the Mandalay Bay Hotel and the Four Seasons Hotel in the same building.

Wynn Las Vegas, home of the Couture Show.  Photo Credit: Destination360

The Couture Show, over in the Wynn Las Vegas (June 2 – 6), features some of the best-known high-end jewelry brands in the world, including Damiani, John Hardy, David Yurman, Judith Ripka, Kwiat, Mikimoto, Roberto Coin and Stephen Webster. These are among the companies that broke off with JCK Las Vegas to form a show that is specific to their niche in the industry. In the past, the show lived off its close proximity to the Sands Convention Center. The question this year is whether enough buyers will want to make the trip from the south end of the strip to the Wynn. There are certainly enough destination brands for buyers to make the trip.

The American Gem Trade Association attached itself to JCK Las Vegas a number of years ago with its own show, AGTA GemFair Las Vegas. The collection of gem and pearl dealers from all over the world will continue its successful association with JCK at Mandalay Bay (June 2 – 7).

Then there’s JCK Las Vegas (June 3 – 6), still the dominate jewelry trade show on “The Strip” even if its status is slightly tarnished. This show contains all aspects of the jewelry industry from bridal to manufacturing equipment and technology suppliers. Low-, mid-, and high-end tiers of the market are resented as well as international jewelry manufacturers.

Planet Hollywood is the location for Niche: The Show

Finally there’s Niche: The Show at Planet Hollywood (June 4 – 6). This is show dedicated for designers of handcrafted jewelry and other materials and mediums, such as glass, ceramic and wood. This event is an answer to the long-term struggle small jewelry designers had at JCK. The show was just too big and attracted too many buyers from large-scale operations with orders that these types small businesses couldn’t fill.

There are other shows as well, specializing in antiques, dedicated for watch dealers and for bead makers that round out the festivities. But it’s the major trade shows that will determine the shape and scope of what the U.S. jewelry industry will look like in the coming years.

Many in the industry will be crossing their fingers.

Neiman Marcus Q3 Sales Up 10%, Net Earnings Up 150%

Neiman Marcus reported a year-over-year increase in revenues of 9.9 percent to $983.8 million for its fiscal third quarter. Comparable revenues increased 9.7 percent. Operating earnings for the period ended April 30 increased 45 percent year-over-year to $123.2 million.

The Dallas-based luxury retailer said Friday that net earnings totaled $46.2 million for the 13-week period compared to $18.5 million in the prior year, a staggering 149.7 percent increase. EBITDA increased 23 percent to $169.9 million for the period.

For the 39 weeks ended April 30, the company reported total revenues of $3.08 billion compared to $2.87 billion in the prior year. Comparable revenues increased 7.3 percent. The Company recorded operating earnings for the 39 weeks ended April 30, 2011 of $312.3 million compared to $227.3 million for the comparable period a year ago, an increase of 37 percent.

The company’s year-over-year net earnings rose 200.9 percent to $93 million for the 39-week fiscal period, ended April 30. EBITDA increased 18 percent for the period to $457.2 million.

WFDB and Local Zimbabwe Group at Odds Over Diamond Sales

The Marange diamond fields.

Two organizations are sending different messages on whether Zimbabwe should sell diamonds from its controversial Marange diamond fields, where human rights abuses and smuggling have happened in the past and are alleged to be continuing, according to reports from Zimbabwe newspapers. 

The World Federation of Diamond Bourses is urging the Kimberley Process Certification Scheme to allow the country to sell diamonds from the mine, which is considered by many to contain the largest deposit of diamonds in the world. 

Meanwhile, the Zimbabwe Blood Diamonds Campaign, an advocacy group, warned against any rushed decision to allow Zimbabwe to resume diamond trading, saying the local industry is still not compliant with international standards. 

Zimbabwe, for its part, has maintained that it adheres to the guidelines of the Kimberley Process and will sell its diamonds with or without its permission or certification scheme. 

The Kimberley Process, for its part, is divided over the issue and has been at a stalemate that is threatening to bring down the entire organization, which is charged with ending the trade in "blood" or "conflict" diamonds, which have fueled decades of devastating conflicts.

To read stories from the Zimbabwian newspapers, go to the Jewelry News Network Twitter feed, @JewelryNewsNet. To read more about the issue go to the Jewelry News Network search engine on the home page and do a search with the words "Zimbabwe" or "Kimberley Process."