The amount of advertising coming from jewelry stores in 2007 went up about 15%, which was due to the increased number of companies in the market. This was the evaluation of the situation in Novosibirsk given by the “Continent Siberia” weekly. “Television advertising for jewelry business is the most efficient: the picture on the screen is very vivid and beautiful. All the more so that it is viewed by a great number of people,” told Irina Kuznetsova, General Manager of the Almazy Yakutii Jewerly Network, to the weekly. “For advertising we use all media except radio. Now it is difficult to find radio stations with clearly defined listening audience; besides, before the block of ads people often switch over to other bands and the ads miss the target,” adds Natalya Sokolova, General Manager of the Russkiy Yuvelir Jewelry Network in Novosibirsk. Many players of the jewelry market stake on advertising various actions, discounts and handing out flyers. “Consumers respond quite well to such actions. Although it is a bit strange that season discounts are now tied to such an out-of-season product as gold,” argues Tulbek Azimbayev, General Manager of the Charoit Jewelry Boutique.
According to the weekly, the large-scale distribution of flyers by the 585 Jewelry Network stores in Novosibirsk looks as the most conspicuous and rather aggressive way of advertising. “Our company’s ideology is to convince that we are selling gold not as an investment tool, but as a quite affordable and beautiful gift for you and your friends and relatives. All the more so that the wellbeing level of the population permits to do it,” comments Alexander Tarasov, heading the group for promoting the 585 Jewelry Network stores. “This is why besides the TV, street and other types of advertising widespread in the jewelry market we use ads aimed at people at large.” The demand amplitude in the jewelry mass-market is changing from year to year. “Peaks of demand always happen before high tide holidays – the New Year, February 23 and March 8. Prominent recessions in our area are observed from mid-September to late October and from late May to April,” says Natalya Sokolova. “During these periods people change their shopping priorities: first of all they have to buy new season clothing.”
Along with regional television, one of the efficient channels to promote your brand is to advertise it in the so-called “folksy” newspapers - the “Komsomolskaya Pravda” and “Argumenty i Facty”. Mind it that depending on the required scale of audience coverage, this may be their all-national issues or just provincial inserts.
Altyn is one of the traditional advertisers appearing in the “Komsomolskaya Pravda”. During previous reporting months, the company published at least one ad a month. In November – December there was a sharp rise in its advertising campaign: they posted six ads in the “Komsomolskaya Pravda” and its provincial inserts.
Altyn is positioning itself as “the largest jewelry company having its own jewelry factories and a widespread network of gold hypermarkets in Russia, Kazakhstan, Kyrgyzstan and the United Arab Emirates.” Social responsibility plays an important role in the company’s image making:
“Today in the jewelry market it is not enough to produce high quality goods and provide fine service. To be socially responsible to the society, to support nation-wide humanitarian programs and to be engaged in sponsorship activities become important components in the work of those companies, which are viewing the situation at large and in a statesmanlike manner. Sponsorship is in no case a way of self-promotion, but the dictates of soul of the new generation of Russian businesspersons and a real example for others as to how it is possible to work for the sake of one’s own country and its future. Before everything else, children are the future of the new Russia and it is the civil duty of every businessperson in this country to support all-Russian charitable programs.”
To be noticed, there is a difference in how the stores belonging to various national networks present their advertising. Thus, press releases are the typical form to furnish advertising information for Altyn. The 585 Network is using another publication format – “buyers’ impressions”:
“Recently in our city there was opened a new jewelry store, which immediately gave rise to most contradicting rumors. Some people told about unbelievably low prices there, while others did not believe it saying that genuine gold jewelry cannot be that cheap. My girlfriend Zinaida and I were also convinced that inexpensive jewelry did not exist and having decided to draw our own opinion of this store went there when we were free.”
The new subsidiary of Khabarovsk-based OOO Almaz in Birobidzhan follows the same advertising pattern:
“…I came out of the Almaz-2 store with mixed feelings. On the one hand, it was pleasant to know that the number of real company stores in our city was growing and to have a jewelry boutique was just a good present to all women. On the other hand, it was a bit frustrating to be aware that my salary was yet a week away and at the same time to feel that a small topaz ring there would be so matching my eyes… My doubts did not last long – I quickly returned to the store and said, “I’ll take it!” When I saw the discount, my last doubts fell away and I walked out into the frosty air with a small and beautiful present for myself. If a woman is a real jewel then genuine jewels are her setting.”
Along with discounts so much liked by the Russians, jewelry companies use the “gift” strategy (or the strategy of selling “two items at the price of one”, etc.) already approved in other fields of commerce:
“…the Altyn trademark is strongly associated with such notions as a “good purchase”, “worthy acquisition” and “wonderful present”. Thus, on December 3, the gold hypermarket network will launch a “Gold Certificate” action. In essence, it will permit any buyer, who has purchased 15,000 roubles worth of jewelry, to receive a gold jewelry piece as a present. Moreover, the more expensive your purchase will be, the more expensive present you will get. It is always pleasant to have a present, so hurry up to “Altyn” to give some joy to yourself, your relatives, close friends and the people you love.”
Provincial mass media remind that too aggressive promotion ways are fraught with troubles. Thus, according to the “Tverskaya Zhizn”, one of the jewelry stores had to pay for unscrupulous and unreliable advertising:
“The jewelry displayed in the *** boutique are distinguished for their one-of-a-kind and stylish design and European quality, which puts our store one stage above others.” The others revolted against such self-exaltation at the expense of competitors’ merits. They transformed their revolt into an arbitration suit against distributing unscrupulous, unreliable and knowingly false advertising by way of television and radio broadcasting stations in Tver. Improper comparisons of their goods with similar goods in other boutiques deceived buyers and played on their trust or insufficient experience and knowledge. The balance was restored when the defendant distributed a counter commercial. Although the boutique in question did not want to eat the leeks, the Arbitration Court of the Tver Region did not sustain its indignation.”
The Department of the Russian Federal Antimonopoly Service (FAS of Russia) for the Orel Region recognized OAO Moscow Jewelry Plant (MJP) guilty of violating the laws “On Advertising” and “On Protecting Competition”. The FAS press service reported that an action was brought against the pant due to a complaint filed by an Orel resident, who informed that MJP was distributing ads about a 20-percent discount on diamond jewelry in its stores. However, the informer, who bought such a jewelry piece, was not given any discount by the store: “It was found out that, indeed, no discounts were offered for diamond jewelry by the Moscow Jewelry Plant’s store located at the address pointed out by the buyer. The discount could be received at a store located at another address.”
The Orel Department of FAS recognized the distributed advertisement as improper and ordered OAO Moscow Jewelry Plant to correct the violations of the Federal Law “On Advertising”. Besides, the antimonopoly department qualified the MJP activities as unfair competition. The antimonopoly department is going to bring the plant to administrative responsibility.
Among the trends, which are more and more popular in the Russian jewelry market, one can point to the practice of attracting stars (celebrities) to promoting jewelry. Of those mentioned by mass media in November – December we can distinguish Natasha Koroleva, Stas Pjekha and the “Silver” band. A specific feature of Russian stars taking part in jewelry promotion is that they are not only playing the roles of faces for this or that brand, but also position themselves as jewelry designers.
In particular, Natasha Koroleva regards herself not only as the face of the Kristall Mechty Jewelry Company and a designer of its adornments, but also as a developer of its conceptual collection:
“Now I regularly visit the jewelry factory. I am already one of them there. I know all the subtleties of work with gems and gold. I want my products, which will soon be put on sale, be affordable in terms of price. In team with my colleagues, we have designed a very attractive collection entitled “Daughters-Mothers” – this was a move devised by me. These will be twin adornments: for children and for their mothers all at once. Thus, we shall make it easy for fathers-husbands to find holiday presents. Simultaneously, using precious metals and natural stones, we are trying to avoid sky-high prices.”
