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8 The Jewelry Business Magazine The Chinese have a saying that goes something like this May you live in interesting times. To say the least the times we have today are indeed interesting When Barack Obama launched his presidential campaign based on hope change and fundamental transformation of the United States of America many if not most likely thought the three pillars of his run for office were simply talking points and the reality would be the country would continue along the same old pathways of the prior years. Little did we know how much change would be thrust upon the country in governance in business in education and in almost every facet of American life. Today the current situation within the jewelry industry mimics what is going on in the country. The consumer appears to be changing before our eyes. The Millennials and Gen Xers buy differently by using technology more and more. On the other hand the fundamental changes occurring in the jewelry industry happen to be the same as they were twenty years ago. Fluctuating diamond and gold prices manufacturers trying to become brands retailers trying to upscale their businesses and everyone attempting to figure out whats happening and how to navigate the rocky shoals of the tough business environment we find today. We have opinions galore and but seemingly precious little research asking the relevant questions supporting the conclusions of those opinions. Everything is anecdotal. Everything is what the last jeweler said. On the manufacturing side everything is what the last manufacturer thinks. There does not seem to be any consensus. At the same time we see tremendous activity at the spring shows in Tucson and Phoenix. And soon after that well have New York and Atlanta and before you know it will be time for the plethora of shows in Las Vegas bringing buyers and sellers from around the world together with the goal of doing business and getting a better sense of whats going on. Speaking of Phoenix and Tucson it is fair to say there were significant number of jewelers attending Centurion and JCK AGTA and GLDX in Tucson. Jewelers were buying negotiating and talking in casual relaxed atmospheres. The idea of going to Arizona in the winter and escaping the cold weather of the Northeast and the Midwest seemed like a good idea to me. The fact is the weather for the most part was as cold in Arizona for much of the time I was there. I did however get the sense that jewelers were coming off an unspectacular holiday season. Not a bad season but certainly not a great season. Some attribute the situation to a general business malaise stemming from the current political wars and the 24-hour news cycle. Some attribute it to the number of people who are underemployed. And still others drop back to the old favorite of the Millennials and Gen Xers somehow not buying jewelry in favor of buying some new technology toy. Whatever it is we are transitioning from one set of expectations to another. And the other is in the process of being defined as we speak. Change is always difficult. It is hard to believe customs ingrained in a population would change significantly as so many project onto Gen X and the Millennials as these two groups come into significant purchasing power positions within the economy. Sure they are more technology oriented and find ways to employ technology to save time and energy not to mention the ability to sift through reams of data on whatever interests them. Buying jewelry remains a significant remembrance for singular life events. Jewelers need to adapt to the new communication methods to reach these markets effectively as well as communicating with them in a more typical marketing mix. As an example I would point you to the discussions of the proposed decline in radio when television first came on the scene. It didnt happen and in fact radio is stronger today than ever while television has become the principal advertising communication tool. Newspaper and other print publications also offer specific opportunities for jewelers promotional efforts. Warren Buffet isnt buying local newspapers just for the fun of it. Hes buying them because they reach a market segment the big regional papers do not reach effectively. So beware the siren call of placing all your promotional eggs in one basket. As with investing effective promotion requires a balanced approach to navigate these transitional times. Frank Dallahan co-publisher of The Retail Jeweler Email FranktheRetailJeweler.com TRANSITIONS By Frank Dallahan EFFECTIVE PROMOTION requires a balanced approach to navigate these transitional times.