Commentary on JCK's "Can US Jewelry Manufacturer's Survive?"

I read with interest the March 1, 2009 published piece on JCK's website, by William George Shuster. You can read it in it's entirety by clicking on the title of this blog.

As I see it, the fundamental problem with our industry is the business model. Bruce Pucciarello of Novell is right in saying, "Learning not to resist necessary change, manufacturers must adjust their technology and electronic commerce systems to the new economy."

We have perpetuated an archaic system of business for far too long, resisting participation in the technology age to a large degree. Sure there are jeweler websites and certainly there are those who sell jewelry through e-commerce, yet there is far greater room for efficiencies through technology than most realize. And I'm not techie. Many people these days are carrying out business in a virtual environment. Whether conducting meetings, introducing new products, or closing sales, companies and industries in whole have embraced technology as a faster, more efficient, and more cost effective path to doing business.

Our industry was built largely on handshakes and personal relationships. An honorable and worthy way of establishing and perpetuating partnerships, but it required regular hands-on, face to face visits in order to work well. With travel costs skyrocketing, a general decline in retail sales, and swollen inventories it has become extremely difficult for vendors to make those visits profitable.

So what can be done? Change. Change the way we do business. Get more comfortable with virtual meetings, video conferencing, web-cam product introductions, and electronic inventory analysis and management. And plan on an in-person meeting a couple times a year, both in the store and at trade shows.

Jeweler's will have to become more knowledgable in selecting the right vendors to partner with, and in so doing become a more loyal partner. And they will have to become more disciplined at keeping their vendor list shorter. Vendor's will have to become better partners by having a real interest and role in making sure their product goes over the counter into the hands of consumers, thereby earning the jeweler's loyalty. And they will have to get better at helping the jeweler manage inventory for proper turn and profit so business for both can grow.

The old ways of doing business simply don't cut it anymore, but we have to be in this together to make it work. Still, through this transition there will be many who can't or won't change and that is just the way it is. For us to get better as an industry we must also get leaner.

To the victors go the spoils, but there will be plenty to go around.