In normal times, Las-Vegas is a place where things that happen should definitely be laid to rest and never spoken of again. After all, it wasn't named "Sin City" for nothing. 

This year, however, the JCK 2009 jewelry trade show, the centerpiece of all jewelry and diamond shows, should serve up a lot more than just sin, and, what many in the industry hope, should make an a positive impact after a tough period for the industry. 

Just a few months after the worst holiday season in decades and in the midst of a record-breaking global recession, the Vegas show should not be taken lightly, and could potentially be just what the diamond doctor ordered – a much-needed boost for the entire industry and a lifeline for many jewelers and diamond dealers.

From a glance at the topics that would be spoken about at the conference that is accompanying the trade show, it seems that the issue of "how to deal with the recession" has taken on great importance.

With planned discussion topics such as "Profit Management vs. Sales Management in a Downturn Economy," "Steps to Take to Recession Proof Your Business," "Steps to Take to Maximize Sales in Tough Times," it's clear that the organizers are determined to help those who have been struggling in the past year and also those who want to avoid being dragged deeper into the recession. 

Organizers are also offering discussions on issues such as "Adding Value by Greening Your Business," "Search Engine & Social Media Marketing," and "Using New Technology and Innovation to Reach Today's Consumer," in a clear effort to help the members of the industry adapt to new trends such as the environment and embrace the Internet as a marketing tool.

So, other than the usual entertainment, food and, of course, gambling Vegas has to offer, the 2009 JCK show can provide the expected 18,000 attendees from 22 countries much needed support in this time of crisis. Now it's all up to all of us to grab this opportunity and make sure that what happens in Vegas doesn't only stay in Vegas. 

A guest post by Iris Hortman, IDI's information officer.

During an ordinary evening this week, just as my family and I were set to start our dinner, my 14 year-old son stormed into the house, and as he normally does, flew straight to the computer. He was holding a new computer game he had jus bought and refused to join us at the dinner table until he read what people said about the game. I didn't understand and asked him what he looked for on the computer. Of course, after the usual shrug I got from him, he told me he was reading in a gaming website what other people thought about the game he had just bought. He told me that "many people said the game was 'rad' and he is relaxed and could now eat his dinner at peace.

What is a social network?

A social network is a group of people who maintain contact between them bound by a common interest. Social networks have been in existence for a long time because the need for social bonding is a necessity for all humans. In fact, social networks have existed forever in the form friendships, sects, political parties, trade unions, etc. The Internet just made it all very easy and accessible.

How do you join a social network? All you need to do is pick one (or more) of the leading websites, sign up, list all of your friends, they will list off of their friends, and before you know it, you are a part of a brand new social circle. Each member can post and share on their homepage items such as messages, videos, photos, fan clubs, events etc, using the network's platform.

Most social networking websites are divided into two categories: community networks and business networks.
Business networks have great business potential and allow for unmediated networking for business purposes. The business network allows business owners to promote their business in a variety of ways both to prospective clients and to other businesses.

It can serve as a giant conference room where everyone can consult and communicate on business issues directly with one another and with no regards to the distance from one another. Joining a network is free of charge, so each jeweler or retailer can expose their business to thousands of potential clients, especially to a younger crowd which spends most of their money on engagement rings.

A study conducted by an American internet marketing research company found that the use of social networks is mostly done by relatively young age groups – maybe not the ideal target for jewelry sales – but they are the next generation of jewelry buyers. The age groups of 35 and younger serve as the heaviest users of the Internet and of social networks both in order to gather information and in order to make purchases.

In many cases, young people don't even physically reach the stores. In this case, social networks have been growing in popularity mainly because those people use them to hear what others say about the product they want to buy. It boosts their confidence during the purchase. A retailer, jeweler or diamond dealer can open a "fan page" and allow members to join the page as a "fan" of the brand. The Tiffany Company recently opened a page on "Facebook" in an effort to reach fans of fine jewelry around the world. So far, 124,000 people visited the page, which was opened only a month ago.

"Conversation Marketing" is also another up and coming marketing tool that that has lately been creating a "buzz". Through Conversation Marketing, businesses use social networking tools such as web logs (blogs), chats, instant messaging, etc, in order to promote a product or a brand. The idea behind it is revolutionary: turning the relationship between the merchant and the client from a one-way street to a two-way street in a way that allows real dialogue to develop between the two sides.

Despite all of the commercial and marketing advantages of social networking, any merchant or business owner must be aware of the risk they are running when using social networking. Because the basis of these networks is social, it is important not to "cross the line" between legitimate use for the purpose of communicating with and better understanding potential clients, and manipulative and deceptive behavior for commercial purposes.

U.S. retail jewelry sales for specialty jewelers in Q1 ran at about 86% of last year’s levels, according to IDEXonline.

Another source said they were down about 14% from 2008’s Q1, while March jewelry sales were down about 16%. March appears fairly weaker than January and February's sales, with 12% down and 13% respectively – but not out of line with the trend established several months ago, according to Ken Gassman's article on IDEXonline.

Earlier this week we posted that Avraham (Bumi) Traub, Chairman of the IDI Finance Committee and Honorary President of the Israel Diamond Manufacturers Association, said  with an optimistic tone that from the end of January, diamond prices rose about 35%, and gave a boost to the industry.

According to a RBC report from last month, rough diamond prices have firmed  in the past 2 month with rises of 5%-10% in some categories. But it warned that investors should not read too much into recent strengthening in rough prices.

"A temporary shortage of rough diamonds resulting from production and sales cutbacks by major mining companies has led to a small pick-up in prices. But this is off a low base and it is not a start of a new rising trend," RBC said.

Might it be the end of the recession? Perhaps, but not for sure. Consumers must buy more diamonds jewelry and watches, and that's where we all need to put our efforts.

Now is a time when design must be the more creative and revolutionary than ever. Use your beautiful stones, and create a shiny craft. We need to tempt those ladies, no matter if their husbands didn't receive any bonus this year,– it actually becomes twice as important.

We encourage you to share with us how you think the industry should face the crisis. Lowering prices, or introducing state-of-the-art design? We want to hear from you about your opinion regarding dealing with the current crisis!

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