The reliable image of a trademark is currently turning more meaningful for buyers trying to choose jewelry. Customers seek a higher level of quality and related guarantees for products they buy. They are now more sensitive to negative information.
Sales taking place at large jewelry stores, small outlets, shopping centers or by way of online catalogs in recent years become increasingly spread in the Russian consumer market.
The growing wealth of the population, gradual rise of domestic jewelry production and rapid influx of imported goods, all this is pushing companies involved in jewelry trade towards continuous development within a tough competitive environment.
The past experience and professionalism of its personnel allow the Elana Factory to occupy a worthy place in the jewelry world. We asked Andrey Nikolayev, CEO of Elana, to answer our questions.
Against the background of a global rise in prices for gold and diamonds what is your take of prospects facing jewelry production in the near future?
Of course, we should not lose heart and accept it as an obstacle. We must continue to work to build momentum and move forward. We should draw conclusions from any perturbation and find right solutions to arising problems.
Is competition in the field of jewelry design in the Russian market strong enough? Does your factory feel itself able to meet such competition?
Competition, of course, does exist, and it is strong enough. Having one thousand years of experience in the jewelry business is a plus for Russian producers, because it is instrumental to identifying strong companies and bringing highly qualified firms to the front. In the Russian market there are more than a thousand companies engaged in jewelry production.
Do you think our Russian companies are able to occupy a prominent place in the global jewelry market?
Few Russian manufacturers are striving to enter the world market in Europe or Asia. The Russian jewelry market is large, and if you try to win it all, it will take quite a lot of time. We are quite satisfied with the scale of the market and the number of buyers in our vast country.
However, to enter the world market, we do not have enough professional management. The most pressing challenge now is to develop the export of jewelry products from the marketing point of view.
What kind of jewelry are you making? What is of interest about your products?
Our main advantage is the hands of our craftsmen who create fashionable and modern jewelry pieces, classical and elegant adornments that are popular with Russian buyers. Our factory is developing a wide range of silver and gold jewelry pieces of different colors, turning out goods with precious, semiprecious and ornamental stones. In recent years, there is a great demand for jewelry with large natural stones, and we also offer a huge selection of jewelry with cubic zirkonia.
Also, our craftsmen are making exclusive high-end pieces on order.
What kind of jewelry meets best the needs of Russian buyers?
Cheap classic rings and earrings in the range from 5,000 to 25,000 rubles. Gold earrings are a "classic of the genre." Every woman has a few pairs of such earrings starting from tiny low-key ringlet-shaped pieces to luxurious things with pendants and precious stones. Gold rings and earrings with diamonds, rubies, topazes, pearls, agates, other colored gems and crystals will always be of current interest.
What diamonds are the most relevant and demanded by retail?
This is mainly small-sized diamonds, more of a melee kind. Oddly enough, black diamonds are gradually coming out of fashion, though a few years ago they were very popular.
What can you say about the prospects of a jewelry fashion line for men?
We have a collection of stylish men's signets, but, unfortunately, jewelry is not in great demand among Russian men, in contrast to their European counterparts. Still, in recent time jewelry for men is becoming more sought for and fashionable. Following the general trend, men have to pay more attention to their appearance. Not only wedding rings and gold chains but also such jewelry goods as tie clips, cufflinks and key chains are becoming popular among many modern men, which in turn serves as an indicator of their status and taste.
What strategy do you practice to attract buyers?
The main task is to manufacture low-cost products, while at the same time they should be of high quality and off-beat. We try to offer the widest range of pricing alternatives so that jewelry goods were affordable to everyone and our models are designed for all ages and tastes.
During holidays, our customers receive gifts, while our loyal customers are offered good discounts and often enough, we carry out various actions.
For wholesale customers we have created conditions for long-term and mutually beneficial cooperation.
Our designers are developing about 100 new models every month and they are carefully monitoring fashion trends and consumer demand.
You successfully launched your factory in 2000, what results have you achieved today?
At the present time, the company has a retail chain of 9 stores in St. Petersburg and Vyborg. In general, we have a fairly good outlook for the future. Our team consists of more than 100 people. Our operation placed on an area of 650 square meters brings together jewelers of the highest skill, who have a work record of more than 20 years and who have been schooled at the Russian Gems Factory which makes them able to make high-art pieces of personal jewelry.
In addition to retail stores our factory has a website offering a wide range of goods to be purchased online, which is highly popular in recent years.
Using advanced technologies, we plan to build up our technical capacity. To cast our products, we were one of the first companies to use the latest German technology offered by Indutherm-vs500d, while the recent achievements in alloying permit to handle gold and silver in a soft way.
Which jewelry shows do you choose to take part in and what does it give to you?
Of course, whenever possible, we try not to skip them and take part in almost all major Russian exhibitions. The company has repeatedly won top places during such events.
At the last exhibition, JUNWEX MOSCOW, the company was included in the TOP 20 among the leading enterprises developing jewelry business for its good performance and stable dynamics of business growth.
What are your major partners?
ZAO Samotsvety Plus, OAO Krasnoyarsk Plant of Nonferrous Metals named after V.N. Gulidov (Krastsvetmet), Yuveliry Severnoy Stolitsy, Best Jeweler, ORA.
In your opinion, does the existing legal framework meet the requirements of modern jewelry business in Russia?
The Federal Law "On Precious Metals and Precious Stones" was adopted long ago and has a lot of drawbacks, although later it was amended several times. For example, there is still no consensus as to how jewelry should be hallmarked in Russia. It is also necessary to ensure equal conditions for doing jewelry business in the country. To develop the sector there is a need in a joint dialogue between the representatives of the jewelry business and those of the legislature.
What suggestions can be made by Russian jewelers at this stage?
Undoubtedly, the development of jewelry production in Russia is a long and difficult journey, but we are willing to work and improve, if the legislature would also be interested in forming a stable and profitable industry.
The Russian jewelry industry has a great potential and requires continuous development. To date, jewelry imports outstrip domestic production. The Ministry of Trade is carefully protecting the interests of foreign business, and we would like to see that this ministry will also protect the interests of the Russian jewelry business.
In Europe, the jewelry industry consumes more gold than it is produced there, while in Russia the situation is the opposite.
The state is mainly concerned with primary industries, rather than jewelry production. Russia, which gas inexhaustible supplies of precious metals, is the fifth largest gold producer in the world, but is the twelfth in jewelry manufacturing. The jewelry industry in the huge Russia could be a major element in the country’s diamond and gold complex.
Veronika Novoselova, Rough&Polished
