All participants of the Western jewellery market to some extent are facing a relatively new problem: the right positioning of one’s company or brand with a view to create a socially and ethically responsible business. The jewellers have to solve two main tasks: to convince public that their business complies with ethical norms and to demonstrate their readiness to act as art patrons and benefactors.
On May 29, the World Witness and Amnesty International non-government organizations circulated a statement saying that they had polled 42 jewellery sales agencies of Great Britain. According to these non-government organizations, the poll showed that the majority of British companies do not consider it necessary to inform public about their policy towards trade in disputable diamonds and to perform any checks of incoming stones. 13 out of 42 companies, including Cartier, House of Fraser and John Lewis, did not answer the questionnaire. According to the poll organizers, the summed-up data for the 29 companies, which responded, revealed that:
- 79% of retail traders had no checking procedures permitting to avoid sale of conflict diamonds;
- 62% of retail traders did not furnish any information on their web sites about their policies in relation to conflict diamonds.
The poll organizers noted that the minority of companies, including Signet (together with its subsidiaries Ernest Jones, H Samuel and Leslie Davis) and Tiffany & C, judging by their reports take tougher gems control measures than British retailers on the whole.
We are not going to judge the genuineness of conclusions made by World Witness and Amnesty International. However, no other information concerning the jewellery and gems market in May – June has been replicated by such a number of mass media as this one. This situation has convincingly proved that participants of the jewellery market should always be aware of the ethical side of their business. Some of them are already doing so. Thus, De Beers Diamond Jewellers provides appropriate certificates for their wares. In early June there was opened the http://www.fairjewelry.org site dedicated, as it is seen from its URL, to ethical problems of the jewellery industry.
The Faberge brand declaring its return to the gems market emphasizes that the history of every diamond offered for sale in the market will be made transparent for its clients.
The problem of social responsibility of business is the reverse side of the consumer boom in the USA. In 2006, for the first time after the terrorist attack of 2001 the Americans regained the former level of consumption. Out of 150 billion dollars spent on luxury articles in the world in 2006, 30% fell on the United States.
In 2007, the American society experienced an economic recession and a record price rise for gasoline. In the first place, this hit the middle class, which drastically cut their consumption of luxury items. At the same time, people with super incomes are on the contrary planning to spend more money for jewellery, clothing, traveling, etc. Some experts note that the American society has not seen such a social stratification since the Great Depression.
Experts and participants of the jewellery market say that well-to-do consumers are not chasing after brands any more as in the eighties and nineties. They are attracted by quality and exclusivity of the goods offered to them. If some article meets these standards, it will be bought whatever the price. The Cartier spokesmen in the United States say that just a few years ago lump-sum purchases for 1-2 million dollars were utterly rare, but now such things happen in the company’s American boutiques at least a couple of times in a month. The same is acknowledged by Bulgary.
Under such circumstances economists and mass media speak of a new type of buyer behavior: the “wealthy and famous” do not stop to consume top class commodities but prefer to purchase them from those shops (or manufacturers) which declare they are contributing some part of their revenue for various charitable needs.
Many participants of the Western jewellery market build up their image and advertising activities taking into account this tendency.
Thus, launching the Green Initiative Collection Simmons Jewellery has informed that 25% of the profit derived from its sale would be remitted to Diamond Empowerment Fund, a dedicated fund set up by the company to develop educational programs in Africa.
Cartier, which in early June announced the start of selling items from their new collection, promised to remit 10% of their cash receipts on the opening day to the accounts of charitable organizations. In this way in 2006, Cartier remitted 1.2 million dollars for beneficence.
Italian designer Roberto Coin has chosen super model Christy Turlington Burns, who is also famous for her participation in various charitable projects, to be the face of his advertising campaign. 5% of the net profit gained from sold decorations will be transferred to the YouthAIDS fund.
The Internet Auction organized by Bochic Jewellery in honor of the World Refugee Day and scheduled for June 19 – July 2 is worth mentioning as one of the events though outside the time limits of this review but emphasizing the steadiness of this trend.
Besides, on June 20 Nicky Oppenheimer, De Beers Chairman of the Board, was presented an award of the World Wildlife Fund for his contribution to environmental conservation in the Republic of South Africa.
Western public opinion is rather demanding towards diamond and jewellery business and the latter is trying in its turn to live up to these requirements.
Rough&Polished
