EPL Diamond, Yakutia’s diamond manufacturing flagship, has reached its 20th anniversary. It is largely due to this company the notion of "Yakut diamonds" (as it happened before to the Russian Cut) traveled around the world turning into a brand.
EPL is the largest diamond manufacturer in Yakutia and the third largest exporter of polished diamonds in the Russian Federation. EPL accounts for more than 55% of jewelry production in the Republic of Sakha (Yakutia) and for more than 70% of jewelry sales in this republic. In the first nine months of this year, EPL Diamond’s jewelry sales exceeded RUB 1.6 billion.
Pyotr Fyodorov, the founder and CEO of EPL Diamond, answered the questions fr om Rough&Polished telling about the factors behind this success story and about the company’s further goals.
During the 20 years of existence, your company made great strides, despite the stiff competition and challenges that are common to the whole country and to this industry. How do you do it?
When we started this business, all our production facilities were housed in a small room where we also had our meals and meetings. And I told our workers that we should catch up and overtake one of the then well-known brands. Later on, what was the target for jokes turned to become the main idea being implemented in our plans, schedules and concept of steady development based on teamwork. Each of us felt that the life and future depends on our contribution to the final result. Business and emotional qualities of our team, our personnel policy appear to be the basic thing in our business. We have never used ethnic or family ties to recruit our employees.
What was new in your company in the past two or three years and what is planned in the near future?
The environment around us is continuously changing, and our task is to make EPL develop in the right direction. Permanent transformation is the way of movement employed by humanity. We choose ourselves between progress and degradation. Any company, environment and changes in the world stem fr om a set of human ideas. In order to make "discoveries" and achieve results, it is important to generate worthwhile ideas and implement them effectively. EPL does not set targets having a growth ceiling or limitations in development. We want to meet the requirements of customers, going ahead of their desires, and we align production to their needs, not to what is more convenient and easier to produce. A brand should push each member of your team to greater feats.
What does your company do to make diamond manufacturing and jewelry sales efficient? What kind of technology do you use?
If you want to be competitive in today's market realities, you have to operate state-of-the-art technology and employ specialists, who are professionals a priori. This is true for any industry. We have good craftsmen, and we are attaining quality goals in the same way as it is done throughout the rest of the world - using the most advanced cutting and polishing technology and high-level professionalism. These are technologies developed by the world's leading companies - Sarin, OGI, Diamark Z, Maxicat, Quazer, Dialit and others. The high quality of Yakut diamonds has long been recognized and they successfully compete with other diamond goods all over the world. You know that EPL is producing diamond goods in different price ranges. People with different incomes can buy diamonds at our stores. EPL Diamond Group has its own diamond-cutting facilities, jewelry manufacturing line and jewelry-trading network. Due to stable demand fr om its own network of boutiques, the company itself can be a source of permanent orders for its own diamond-cutting factory. As a result, EPL can guarantee prices to its customers without markups added by intermediaries. This is one of our key advantages. And we are making diamonds in Yakutia and we will continue to produce here.
Does EPL encounter any difficulties in obtaining rough?
No, we do not. EPL is a long-term client of ALROSA and we have no problems regarding the access to rough, as well as regarding its amount and assortment.
You have 40 boutiques across Russia. Does the strategy of opening new boutiques and new branches paying back or is the focus in jewelry trade shifting towards online sales?
Of course, developing and expanding our jewelry network is justified. This is reflected in brand awareness and in higher sales. We try to meet the expectations of our customers not only in the showcases of our boutiques, but also in communication, creating an atmosphere of friendliness and willingness to help. Each of our selling assistant can tell about diamonds everything that may interest buyers.
Online sales are also gaining momentum. Now, customers increasingly prefer to shop viewing online catalogs. This year, EPL’s online sales went up twofold. We forecast further growth in online sales, so the development of the online platform in EPL’s retail trading is a must-have trend in which we will continue to invest.
Does EPL take part in all jewelry shows or views them selectively? What kind of jewelry shows do you attend and why? What is EPL’s attitude to the exhibition policy pursued in the sphere of domestic jewelry?
Buyers who visit exhibitions are looking for something new, trying to detect early trends in jewelry fashion. EPL can offer all this not only at exhibitions but also at each of its boutiques accompanied by individual service. We upd ate our exclusive range of goods with such regularity that sometimes it is unproductive for us wait for an exhibition.
Despite this, EPL cannot ignore global exhibitions, wh ere the company's products can compete with those displayed by major players in the jewelry market. The geography of EPL jewelry showrooms is reaching out to all the cities wh ere such exhibitions take place.
Is there anything new your company plans in the field of public relations and advertising? How effective are these activities?
Our team is always carefully analyzing the effect of a particular type of cooperation and draws conclusions for the future. At certain stages of development, our emergence in some projects helped us to be closer to our customers. Now, we have reached the point wh ere we can generate our own large-scale events. We do know that our brand should be always presented to the public in a new way. Like a living creature, it should grow, evolve and surprise. This year, we intend to launch the Theatre of EPL Diamond Jewelry Fashion, making it in a grand way.
There are jewelry pieces that need to be presented in a special way. We shall give our customers a possibility to get acquainted with such jewelry at the Theatre of Diamond Fashion, which should fascinate its visitors by vivid displays of the best masterpieces produced by EPL jewelers and diamond cutters. To maintain close contact with our customers, we decided to organize live get-to-know sessions featuring the company’s unique jewelry pieces right from the stage of the EPL theatre.
What do you think about the prospects of the diamond jewelry market in the light of recent political and economic developments?
The world economy has always been characterized by cyclic recurrence with alternating growth and recession periods. The specifics of Russian jewelry products lie in that there is a safety margin with respect to these factors.
This is why we se t ourselves new targets and preparing to open new EPL boutiques overseas - until the end of the year we plan to open a signature showroom in London – “EPL. Yakut diamonds."
Galina Semyonova, Rough&Polished
