Trends

Designer’s Diary: The Consignment Crisis

TrendsApr 05, 2016

Designer’s Diary: The Consignment Crisis

In her latest diary entry, Jacqueline Stone examines the thorny issue of consignment from all sides.


Consignment seems to be the topic of heavy debate these days, casually making its way into conversations that quickly get heated.  

Jacqueline Stone is the chief creative officer of her company, Salt + Stone, working primarily with private clients to build custom engagement rings and wedding bands.

The issue seemingly divides the jewelry industry into two camps. After doing a deeper dive on the subject, I started to wonder: Is consignment the subconscious reason for overall discord within the jewelry industry at large?  Why is this tactic causing so much strife?  And what can we all do about it?

Before we start to look at solutions, it’s always best to examine the situation at hand first. I did my best to reach out to both retailers and designers alike to gather their opinions.

Creative freedom
One thing that designers seem to love about consignment is the ability to create freely and not adhere to line sheets or merchandising plans. This sales strategy works out extremely well for artists who create one-of-a-kind work. As designer Cynthia Eid put it, “I make what I want to make instead of filling orders and that’s a lot more fun. Usually the store takes more (of my jewelry on consignment), and it creates a larger body of work in their store.” 

A great point: Minimums at trade shows have been created to help the retailer and designer partner together to create a story. We all know customers don’t buy matchy-matchy anymore, but ironically still like to see a cohesive collection in the case line.  

On the other end of the spectrum, some retailers prefer to stay away from consignment for it allows them to truly build their own brand aesthetic. Jeweler Tara Silberberg, owner of The Clay Pot in Brooklyn, does not consign from the majority of her artists. 

“I find it really important to curate my collections and I need to have the freedom to merchandise what I know will sell, not what can be easily provided on consignment. Buying jewelry from my designers provides me with the ability to buy multiples to handle volume, allows me to take educated risks and most importantly helps my emerging designers with cash flow. It's really important to me to support the jewelry community and emerging talent.”

Entry roadblock
Speaking to both retailers and designers alike, everyone seems to agree: Entry into this market is at a huge standstill.  

It’s
harder than ever for new designers to break into the mold due to material cost constraints (gold is currently at more than $1,200/ounce; it was less than half that 10 years ago), the change in buyer landscape (jewelry-focused versus hybrid stores) and the inability to compete with manufacturers importing items from overseas at a much more desirable price point.  

Bianca Lopez, owner of Bianca Lopez Studio of Jewelry Art and Design finds consignment disheartening as she mentors new students and craftsmen in New York City.

“What today is all about is capturing and holding the interest of the consumer. New undiscovered designers, with impressive and distinctive jewelry, are the goldmine of untapped revenue for retailers and consignment creates a barrier than many can’t cross,” she said.  

Sia Maravelias, director of Quadrum in Boston understands that struggle, but realizes consignment is a valuable part of any business structure. “[Consignment] is a risky business. In the same regard, it is a risky business for the retailer who has huge overhead. The retailer is responsible for carrying the weight of, at times, a very large, expensive lease, sales associates’ salaries, advertising and promotional expenses. Even when no one walks through the door, the retailer is working hard to reach out to customers, create new opportunities for sales and promoting new work.”  

It’s helpful to have Sia’s perspective as the jewelry store where she works is known for actually seeking and getting back to new talent. Her intent is not only to support her customers but also her artists.

Jewelry designer Todd Reed agrees: “It’s important if a designer is to use consignment, to do it in such a manner that will support both retailer and designer. New designers or experienced designers struggling to find reasonable distribution channels can get pied in the face by the promise of a healthy consignment door. Remember the un-turned inventory sitting on the books is still inventory even in someone else’s store. If consignment can work it’s good, but for a new or growing designer I think it’s a poor model to start with.”

The inventory issue
With the increasing cost of gold, many retailers have had trouble keeping up with inventory turn. Demand for product has increased steadily over the years, but not at the speed of the rising material costs.  

Instead of having extra cash flow to discover new talent, most retailers are crushed with trying to turn pieces they’ve had in stock. Keeping product on consignment allows them to tackle this hurdle while still supporting emerging designers. Jewelry designer Alexis Barbeau, who is part of the CJDG, has had many years’ experience with the ups and downs of the economy and the lessons that have come with each cycle. She understands the give-and-take that needs to be established with her retail partners.

“If done right, consignment can be an extremely beneficial arrangement for both parties. If the retailer is responsible, approaches the exchange as a partnership and meets their end of the obligation, it can help you expose your work to a new audience and actually can increase sales in the long run,” she said.

It’s also extremely important to see the inventory issue from the perspective of a designer. If a designer is sending out the majority of their work on consignment, it ties up their cash flow to build new product and the new product development cycle is halted.
 
Leeorah Betan-Hartman from Lulu & Shay realizes the focus needs to fall on the importance of communication between each party.

“I have been in situations where an owner may fall in love with some of my more expensive pieces and ask them to stock them in their store on consignment,” she said. “I then need to trust that the retailer will truly understand their customer and knows what will sell, otherwise at the end of the season I will be stuck with stock of highly expensive goods that have been returned.”  

Communication seems to be the much bigger lesson we could all benefit from as our industry is in trouble on both sides. The number of U.S. jewelers who closed their doors last year climbed 24 percent--not a good sign of things to come unless some serious changes are made.

Balance
As most of my previous articles can attest, I’m a big believer in balance. Shops that adhere to only one type of buying strategy are putting themselves and their talent at a disadvantage.

It should be noted that two reputable retailers I reached out to who only take work on consignment refused to comment for my article--perhaps they inherently understand that their model will only continue to run for so long before they need to implement a more balanced viewpoint.

In my opinion, consignment needs to be put back in its place: to be used only as a tool. If you aren’t buying any new inventory from designers, well I hate to break to you, but you are a part of the problem.  

I’ve been fairly open and honest about my struggles through the years. Do I have a huge wholesale business? Absolutely not, and a lot of that has to do with the financial constraints associated with entry into market. Some retailers have said they won’t even look at a new designer unless they’ve displayed their wares at three to four trade shows. Who is fronting the money for that expense?  

And just because a designer has only done one trade show thus far, does that make them any less talented? That is a huge risk that, unfortunately, new talent is expected to face and those like myself, without an angel investor or trust fund to cash out, have to build each collection organically and over time.  

I started my jewelry journey in 2005 and I’ll be ready to start wholesale trade shows this year, 11 years later. Is that the experience that new talent had to go through in previous years? Perhaps.  

The reality is that we are in a luxury business that is aesthetically challenged at the moment. While it’s true that established designers continue to push the envelope, it’s disheartening to watch new talent consistently water down their work in the hopes of building collections that sell. Even retailers have taken note. In many recent conversations I hear that they are “bored” and there is “too much of the same.”

I ask each jeweler to serious consider a massive spring cleaning.  

What has been sitting in your inventory in the back room or safe for more than five years that is just taking up space and has no sentimental value? What can be melted down for cash flow increases? When was the last time you made a new designer’s day?  

And to the designers I say much of the same. Are you truly treating your retailers as partners rather than a separate team? What are you doing to help them with their inventory constraints? Are you able to restock your product line at reasonable fees to give the store more variety each season? Do you have an annual budget devoted to consignment?

And to both, I ask them to consider trunk shows. It’s an excellent way to try out someone new and see in real time how your audience reacts to his or her work. Even if it doesn’t work out you’ve created an event that is worthy of both your customers’ attention: You’re trying something new.

Jacqueline Stone has a background in finance, marketing, advertising, product development, fine jewelry manufacturing, design and sourcing. She currently is the chief creative officer of her company, Salt + Stone, working primarily with private clients to build custom engagement rings and wedding bands. Stone can be reached at shine@saltandstone.com.
Jacqueline Stoneis a recovering jewelry designer who now works in marketing and runs her own e-commerce site, TotemsandTarot.com.

The Latest

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

Pomellato Nudo toi et moi ring
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%

Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.

Deborah Meyers Experience The Birds Earrings
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ Earrings

Designer Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

Melee diamonds from De Beers
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid Uncertainty

The company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy