Ecomdigest Jewelry Newsletter - 10.03.2024

PLUS: Pandora reaches 100% recycled silver and gold milestone

Author

Sophie Bruxner-Randall
October 03, 2024 • Reading Time: 7 minutes

Specialty Bites 🍪

Sotheby's will auction a rare 18th-century diamond necklace, unseen for 50 years, possibly linked to Marie Antoinette. Estimated at 1.6-2.4 million CHF, the Georgian-era piece features 300 carats of diamonds. It will tour globally before the November auction in Geneva, highlighting its historical significance and exquisite craftsmanship.

Pandora has transitioned to using 100% recycled silver and gold, eliminating newly mined sources since December 2023. This shift significantly reduces greenhouse gas emissions, with recycled silver and gold having a much lower carbon footprint. The first products will be available by early 2025, marking a major industry milestone.

The Indian diamond industry has faced significant turbulence over the past two years, with recent months seeing a rise in polished inventories and fluctuating prices. Vipul Shah, chairman of India's Gem & Jewellery Export Promotion Council (GJEPC), emphasized the need for self-discipline as companies navigate these challenges independently. Various strategies have been adopted, such as Kiran Gems' unprecedented 10-day vacation and Venus Jewel's focus on maintaining industry confidence while adapting to market shifts. Hari Krishna Exports has also fine-tuned its operations, expanding its Kisna brand network in India and launching incentive programs to boost productivity and craftsmanship.

Despite a 49% decline in rough diamond imports and a 20-25% drop in polished diamond exports year-over-year, there are signs of recovery. Russell Mehta, CEO of Rosy Blue India, noted that while the U.S. market remains stable, China continues to struggle. The industry is seeing "green shoots" in certain categories, which need careful nurturing. Companies like D. Navinchandra Jewels report stable demand for lower-value items, though price volatility persists in the middle segment. Maintaining low inventory levels is a key focus to protect profitability.

Looking ahead, GJEPC plans to combine supply-side regulation with consumer demand campaigns, collaborating with stakeholders like the Natural Diamond Council. The industry is preparing for a "new normal," with a focus on long-term stability and adaptability. The pending sale of De Beers and the increased allocation of Botswana rough diamonds to Okavango Diamond Co. are critical factors to watch, as they could significantly impact the industry's future dynamics.

Retailers at the Coterie show sought new products to entice shoppers amid rising prices and changing consumer habits. Comfort and unique styles were key, with a focus on accessories, knitwear, and sportswear. Buyers aimed to discover new brands and trends to meet diverse customer needs and preferences.

Ksenia Mirella Jewellery has appointed Peter Ungar as CEO. Ungar, formerly with Messika and owner of Peter Ungar Jewellery, joins following a strategic partnership. This move aims to expand Ksenia Mirella's market presence in the UK. Mirella expressed excitement about Ungar's leadership and future growth opportunities.

Bonhams New York's auction of a single-owner jewelry collection achieved nearly $5 million, with standout pieces from Oscar Heyman and Paraba tourmaline jewels surpassing estimates. Highlights included an emerald ring selling for $508,500 and a Paraba tourmaline ring fetching $533,900. The collection showcased exceptional craftsmanship and vibrant gemstones.

Editor’s Pick 🌟

New guide reveals that Google Discovery is best for ROAS at low spend, whereas Performance Max delivers results at scale. To optimize performance in Google, brands should:

  • Invest in Performance Max, which comprises ~24% of budget on average and supports increased scale at similar performance.

  • Leverage Google Discovery for potentially strong ROAS, especially at lower spend levels.

  • Consider Google Shopping as a middle-ground option, offering good ROAS potential with more scale than Discovery.

This research was put together by Fospha, EMEA's leading marketing measurement platform. Fospha has $1bn spend under measurement across 150+ of the world's best eCom brands, including Free People and Gymshark. They've assembled a guide of the best Google channels & strategies to lead brands into H2 - you can read this here.

Performance Platters 🍽️

Brands are leveraging holistic video strategies to engage consumers across multiple platforms, driving full-funnel business outcomes. By utilizing first-party data and diverse video channels, companies like PepsiCo and Lexus achieve significant increases in brand awareness, consideration, and conversions. Amazon Ads exemplifies this approach, offering expansive opportunities for advertisers.

DMEXCO 2024 showcased AI's practical applications, retail media's growth, and the shift to cookieless solutions. Key trends included AI-driven transformation, the rise of retail media, and the importance of first-party data. The event emphasized collaboration, transparency, and the evolving landscape of digital marketing, highlighting innovation and future opportunities.

Brand websites remain crucial for the golden quarter, driving engagement and sales, according to Visualsoft's research. While social media is growing in importance, targeting the right consumers is essential. Newsletters and nostalgic Christmas ads also play significant roles, with nearly half of consumers driven by nostalgia.

Ecomdigest is a Contentive publication in the DTC Ecommerce division