Due to the undersupplied premium segment of the jewelry market its customers have to buy what there is to offer in Russia or to seek the wanted jewelry piece abroad, says the “Delovoy Petersburg” daily.
According to Larissa Dobrygina, Chief Manager of the Olivin jewelry network, this is done particularly in Italy, where jewelry companies are based on small workshops and jewelry production is family business.
Quite often Russian customers are purchasing jewelry abroad, for instance in France or Germany, just to harmonize the price and the quality.
“To order a jewelry piece in Russia is not a very rewarding affair, since the range of products is essentially enormous and there is a possibility of choice. At the same time, one can speak of the undersupplied premium segment or, to be more exact, of scarce top quality mass consumption products. There are brands, which are very well established in Russia, but we lack some European brands, non-existent here,” Larissa Dobrygina says.
Besides, top brands as a rule do not specialize in wedding rings production, often manufacturing them by special orders. This is why there are narrowly specialized companies, which are small and not very well known.
“Demand for premium-class jewelry shows a positive growth trend spurred by the emerging middle class. Its representatives subsequently need to confirm their status. Customers do not want any more to buy simple rings made of a gold piece since their tastes are becoming more exacting. In particular, not only engagement rings, but also diamond wedding rings become popular since people believe that these stones safeguard their marriage,” Larissa Dobrygina notes.
One of the tendencies is not to make diamonds by all means conspicuous. Only the ring’s owner knows about it since the stone is set on the inner side of the jewelry piece.
Similar trends may be seen in the other end of this country, in the Primorski Krai or Primorje. Igor Tolstyakov, General Manager of Paritet, says, “Demand for luxury in Primorje exists, but the question is where it is met. As a rule, local consumers of similar goods prefer to buy them abroad. One may go there for holidays or a business trip and go in for shopping. The luxury marketers in Primorje are trying to influence this situation forming up a certain range of products and cultivating special services. In my view, the major part of purchased luxury things and accessories in local boutiques today are bought as gifts because not everyone is able to go abroad or to the capital to be in time for some special date.”
Ksenia Sterlikova, Director of the Ignat jewelry boutique (selling jewelry produced by the Korloff Jewelry House) agrees with him: “Demand for de luxe jewelry exists but it is mainly met outside Vladivostok. Many would-be buyers are trying to make such purchases abroad or in Moscow. Someone believes that money may be saved in this way, while others are afraid to buy a fake. Although today jewelry boutiques in Vladivostok positioned in the de luxe segment are unlikely to sell such things. This would involve enormous risk for their standing.”
According to Ms. Sterlikova’s estimates, only 30% of those residents of Primorje, who can afford brand adornments and accessories, are buying them here, while the rest do it mainly abroad.
As for the most devoted luxury buyers – the top officials and business people (in Primorje these are often the same persons) – the recent “sweeping raids” against government authorities, according to the local marketers, delivered a significant blow to the level of expensive brand sales. “This is because top officials not only bought these or other things, but because they were shaping purchasing environment involving their relatives, friends, lovers and so forth. This brought to life some sort of a community, which is notably cringed today,” Tolstyakov says wistfully.
There is a trend which can be traced over the world: luxury things are gradually losing their show-off aspect which served to demonstrate one’s status and are more and more becoming a kind of personal pleasure. In Russia and Primorje the majority of people treat luxury brands as a way to demonstrate their status. Luxury goods are acting as evidence of success creating some illusion of being near the top social sphere, says the “Konkurent” weekly (Vladivostok).
