Russkaya Yuvelirnaya Kompaniya (Russian Jewellery Company) established in 1998 is now an advanced company manufacturing exclusive jewellery and selling it in the Russian market. The Holding comprises Moskovskaya Yuvelirnaya Fabrika (Moscow Jewellery Factory) and multi-brand stores located in Moscow, Novosibirsk and other Russian cities. The jeweler's retail store chain offers a wide range of goods starting from high-end diamond jewellery sets to the one-of-a-kind designer silver jewellery. It is also a partner of leading Russian and foreign manufacturers like MYuZ, Russkie Samotsvety (Russian Gems), Adamas, MZSS and other firms. Igor Kevchenkov, Director General of Russkaya Yuvelirnaya Kompaniya, answers the questions from Rough&Polished.
Do you take part in the major jewellery exhibitions despite the present economic situation or have you cut your exhibition budget?
Yes, I keep on taking part in the exhibitions despite the present economic situation. Although, many exhibitions decrease their importance and turn into retail fairs, thus lowering the sales in retail chains. We had to cut the exhibition budget but I think it necessary to participate in the exhibitions to renew the assortment in the retail chain. We purchase the proven goods only – I do not want to run a risk, and as for experimenting, I can afford this with our own products only. I would like to draw your attention to a rather limited new jewellery range displayed at the JUNWEX- St. Petersburg.
A good collection - it could be seen at the exhibition in St. Petersburg and in the Internet. How are the marketing policy, range of jewellery and sales conditions changing?
The marketing policy has changed in compliance with the present day requirements. The manufacturers make the customized items. The retail chains chose what goods exactly to purchase - these are jewellery pieces (including the men’s jewellery) made of yellow and pink gold, many big-size polished diamonds and other precious stones: amethysts, topazes, rubies.
How do you assess the results of your participation in the latest Junwex - has it justified your expectations, what new trends have appeared and what has remained unchanged in the exhibition sphere?
I liked the exhibition. It has moved to a new venue in the ‘Expoforum’ where it has more space and is convenient, the organization and logistics are good.
What range of jewellery was in higher demand - based on the results of the late last year and early this year?
The goods offered at a moderate price were in higher demand and those sellers won who did not adjust their selling prices to the higher dollar exchange rate but refused part of their profits and set reasonable prices. These were Russian manufacturers.
Is there any ‘crisis’ range of jewellery? What customers do you count on in the crisis times?
A ‘crisis’ range of jewellery as such does not exist. We keep on manufacturing the diamond jewellery as we did before. But to satisfy the customers’ demand we decrease the number of studs to lower the price.
How justified are the polished diamonds as an investment vehicle?
The big-size polished diamonds only are an investment vehicle, starting from 0.5 ct and higher. The less carat diamonds cannot be considered an investment. The price of a 1-ct polished diamond with average characteristics was US$10,000 in November 2014 and is the same today. But the price of RUB340,000 in November and RUB620,000 today is a great difference, quite literally. It is worth mentioning that the price in luxury segment is always approximately the same, even in recession time. The jewellery from the limited collections, the unique natural gem jewellery items are the jewels that nobody else has and their prices will only grow with time. The money invested in polished diamonds and gold are the most reliable investments.
What is your take on the semi-precious gems segment?
My take on the semi-precious gems segment is positive. But the semi-precious gem jewellery accounts for maximum 10 percent of the market, and the diamond jewellery accounts for 50 percent.
Can you see any new trends appearing on the market?
New firms appeared and became active that are promoting jewellery in the ‘reasonable gift’ segment, consequently, the stud quality and the quantity of the precious metal in the pieces are sooner like in the fashion jewellery than in the real jewellery. In the today’s economic situation, this niche is in the highest demand and the leaders in this segment are Sunlight, Valtera with their manufacturing units in China.
What new trend appeared in marketing?
The shift of the advertising to the social networks can be considered as a new trend in jewellery marketing. As for the negative aspects – these are unprecedented 70 percent discounts for gold diamond jewellery (then the question arises, what the markups on the material are).
What is your attitude to synthetic diamonds?
It is clear, that one cannot stop the technological progress and increasingly more synthetic diamonds will come to the market. The main thing is that there is no substitution of the natural diamonds for the synthetics. To avoid this, the rules of their turnover and certification by the manufacturer are required.
What is the situation with the polished diamond prices, are there enough polished diamonds on the market, what is your stand on the demand for diamond jewellery? What are your expectations regarding the polished diamonds and jewellery sales in the mid- and long-term?
The situation with the polished diamonds and diamond jewellery is rather stable, the fluctuations are usual seasonal ones. The supply on the market is satisfactory, except for good quality ‘melee’. In the mid-term, the sales of diamonds and diamond jewellery will drop in terms of pieces, and will remain the same in terms of roubles. It is difficult to make any long-term predictions.
In your opinion, what are the reasons of the slow development of the industry?
Apart from the objective conditions of the economic situation, the industry has a slow growth rate mostly due to lack of the government support and proper legislation to regulate the operation of the jewellery and cutting&polishing factories, as well as the lack of solidarity in the jewellery community within the framework of a public organization. Although of late, some activity is seen in this respect aimed at overcoming this situation.
What steps should be taken to remain successful in the jewellery sales in the time of recession?
The success can be achieved through the ongoing efforts and during a downturn it is necessary to work even harder. We do our best to visit jewellery exhibitions, track new collections, interesting ideas, co-operate with many Russian jewellery companies to be able to offer nice and high quality jewellery to our customers. We work much with the individual orders: the Holding renders services in making jewellery pieces using individual designs.
Please, tell a few words about your company and its recent achievements.
The history of the company started with opening a small-scale jewellery creative shop in Moscow in 1991 that grew into a high-tech factory that covered all the cycle from jewellery design to manufacture.
‘Russkaya Yuvelirnaya Kompaniya’ (RYuK) specializes on the diamond jewellery including the unique big-size diamond jewellery. Each RYuK’s jewellery piece meets the high international standards, which was repeatedly confirmed by our successful participation in the national and international fairs and exhibitions – in Basel, Vicenza, Hong Kong. Several times, we were the prize winners for the unique design thanks to the combination of the high world class technologies and traditions of the Russian jewellery school. The graduates from the Carl Faberge Art School, School of Art Handicraft and the Academy named after Stroganov regularly join our highly qualified personnel.
Galina Semyonova, for Rough&Polished
