Nowadays, very low-end and very high-end jewelry set the style, says Valery Radashevich, a member of the Russian Jewelers Guild, an expert of the ‘Estet’ Jewelry House. “A jewelry industry is an indicator of the economy state: the demand for jewelry grows only when the population of the country feels confident about the future. Weak expectations adversely affect a jewelry market. The situation is also aggravated due to talks about a new crisis as well as the financial turmoil observed in Europe and the US fiscal policy. It should be emphasized that the crisis mainly affected the small- and medium-scale businesses. Both the manufacturers and the consumers. The middle class just emerged before the crisis was lost. This resulted in changing the product range: it split into low-end bulk goods and high-end premium jewelry.”
The findings of the annual study done by RIA ‘RosYuvelirEkspert’ among the ‘Jewelry Russia’ Programme participants helped to form an industry rating of the companies that showed the highest results and steady business growth dynamics in 2012. The TOP-10 comprised the most famous Russian companies: ‘Sanis’, ‘Kameya’, ‘Yuveliry Severnoi Stolitsy’, ‘Alkor’, ‘Kristall’, ‘Smolenskiye Brillianty’, ‘Samorodok’, ‘Valtera’, ‘Gold of Brasil’ and ‘Akvamarin’.
St. Petersburg-based ‘SANIS’ is an innovation leader in the jewelry industry. Every its collection or a new product extension evoke a warm response among the buyers as their production is always based on a thorough market research and a consumer preferences analysis. For example, the modern trends and one-of-a-kind technical solutions, style and reasonable price were interwoven harmoniously in a new collection of hollow gold bracelets set with ‘Bless’ cubic zirconia.
The ‘BROSCO’ collection was officially recognized among the best jewelry lines in Russia. A novelty of 2013 is a new eye-catching jewelry line made of white gold with traditional white and new colour cubic zircon stones. Every collection was designed with the use of a peculiar stone setting of their own-design the factory is famous for.
The ‘ESTET’ Jewelry House, premium jewelry manufacturer, was again received the honourable title of ‘Leader Of The Russian Jewelry Market – 2012’ at the ceremony of rewarding the leading Russian jewelry manufacturers. Its ‘Ariadna’ necklace was awarded the highest prize in the nomination ‘The Best Jewelry Of Russia’ at the JUNWEX Jewelry Fair held in September 2012. The ‘Ariadna’ Collection has become a symbol of reasonably priced casual luxury jewelry.
The ‘Adamant’ Jewelry House has launched a new product line – ‘Superlight chains’ that are 3 times lighter than full-weigh chains, and 1.5 times lighter compared to hollow chains made by other manufacturers, without being inferior to them in terms of quality and beauty.
Chain Retailers
At present, ‘Adamas’, ‘Almaz-Holding’, ‘MYuZ’ (Moscow Jewelry Factory), ‘Jewelry Chain ‘585’’and ‘Yashma Zoloto’ remain in the top five of the Russian retailers as for the number of stores. Operators developing the jewelry retailing ‘from the manufacturer’ (‘Almaz-Holding’, ‘Adamas’, ‘MYuZ’), continue to demonstrate the best sustainability.
Major jewelry retail chains of the federal level further strengthen their position on the promising – in terms of sales – markets in the Central, Privolzhsky and Southern Federal Districts. According to ‘MYuZ’ developing the chain of stores of the same name, the sales of the largest jewelry chains in Russia (about 10-11 in the market) made RUB30-35 billion. At that, these retailers have a 15 to 20-percent share in the jewelry market, says Ilya Adamsky, commercial director of the factory.
‘Nashe Zoloto’, a renowned Siberian chain, has 77 stores in various regions of the country. The company intends to increase the number of stores up to 100 by the end of 2013, up to 120 by 2014 and up to 150 by the end of 2015. The chain revenue in 2011 totaled over RUB1 billion.
In the rigid competition environment, the weaker operators could start leaving the business. Maksim Vainberg, ‘Adamas’, says: “In April-May and September-October, when there is a decline in the consumption, the federal or local players operating over 20 stores do not decrease the purchases. With a substantial promotion budget they have, they can attract the customers. Meantime, the non-chain retailers decrease the purchases by several times, from 5 - 7 kilogramme per month to one kilogramme. And this dynamics persists from year to year.
However, major players are eager to acquire small chains. ‘Adamas’ announced they were ready for merger and takeover and several purchasing options are under consideration now, starting from individual jewelry stores to small-scale chains. Maksim Vainberg told about this in the framework of the Retail Business Russia 2012 Summit, adding that the chain has no intentions to enter the towns with the population under 100 000.
In 2013, ‘Adamas’ expects to start up about 30 own and franchise stores. At present, the chain consists of 200 jewelry stores all over the country.
By the way, the company is an official supplier of gold medals for the Olympic Games’2014 in Sochi. It was granted the contracts for the manufacture of the medals and the licensed jewelry products with the Olympic symbols. The jeweler promises to make ‘innovation medals of interesting design’.
While the jewelry market players tell that not much can be earned on making medals, the company believes that the chance to be associated with such a significant event is extremely rewarding and helpful to its image and future sales.
Besides, ‘Adamas’ vested with this right is going to launch special collections with the Olympic symbols. ‘They are already designed,” – said Maksim Vainberg. The jewels will be made covering all various price categories, both for men and women. He also noted that the company would increase the number of stores in Sochi up to seven and more, if necessary.
Veronica Novoselova, Rough&Polished
