The diamond miner and marketer warned last week that it expected to be in the red after significantly cutting prices in Q2.
The 3 Biggest Stories of 2015
Our Editor-in-Chief Michelle Graff shares the three stories she thinks had the greatest impact on the jewelry industry in 2015.
When putting together this list last year, I had it easy. The story choices were obvious: the Signet-Zale merger, the Hearts On Fire purchase, and all the controversy surrounding EGL International coming to a head.
They are not in any particularly order, as their importance to readers will vary depending on which segment of the industry they represent.
Did I miss anything major? Let me know in the comments section below.
The diamond industry bubble
In 2014, it was the discord surrounding over-graded diamonds and the subsequent dismantling of EGL International that made headlines all year long.
The topic certainly didn’t disappear in 2015, but on the main international stage the issue took a backseat to the profitability problems experienced by those in the middle of the diamond supply chain.
Rough prices were too high and cutters and polishers weren’t making any money while, at the same time, sitting on a pipeline overstuffed with goods that weren’t selling due in part to the lack of a unified marketing campaign for the stones.
Articles about the crisis popped up all over the trade throughout the year, including on this blog.
In India, former GJEPC Chairman Sanjay Kothari said the cutters should shoulder at least some of the blame for their unscrupulous business practices, while the always outspoken Martin Rapaport rallied for the resignation of De Beers CEO Phillippe Mellier. He even encouraged the trade to email Mark Cutifani, CEO of De Beers parent company Anglo American, and urge him to give Mellier the ax.
Cutifani hasn’t heeded Rapaport’s call, at least not so far.
Mellier was among the Anglo American executives who gave a presentation at a December news conference announcing a radical paring down in just three business units, one of which is diamonds.
Stung by the drop in commodities prices, Anglo American will be laying off a staggering 85,000 workers over the next few years, including 1,500 at De Beers.
It’s a complicated story that will continue in 2016 and has very sad, very human implications that often get overlooked in the rush to point fingers. When I wrote the story about Anglo’s restructuring all I could think was: Where
Retail competition intensifies
Gap, Macy’s, Sears and J.C. Penney are on the long list of chains that are closing stores as retail continues to evolve. Fewer physical locations are needed and retailers have to sink more money into creating a seamless connection between their online and off-line operations.
In the jewelry industry, figures from the Jewelers Board of Trade show that through the third quarter, a total of 612 retailers have closed their stores, up 30 percent from last year.
The problems plaguing jewelers are the same confronting retailers in a wide range of industries: the rapid changes in technology; online competition eating into margins and taking away sales; and fewer discretionary dollars to go around, particularly among the shrinking middle class.
There’s also the issue of demographics.
The baby boomers, a generation second only to Millennials in size, are reaching retirement age. They’re either not able, or not willing to, overhaul their entire retail model to adjust to the changing times and many don’t have children that want to take over the family business.
Like the profitability problems in the diamond sector, this is a story that’s going to continue in 2016 and even beyond.
The smartwatch avalanche
I know one person who’s sick of all the smartwatch news--our Senior Editor Hannah, who had the distinct honor of combing through a full year of “The Week in Photos” to pull together “The Year in Photos” and ended up with eight smartwatch slides. See all privileges the title of senior brings you here at National Jeweler?
This year marked the introduction of the long-awaited Apple Watch as well as TAG Heuer’s “Connected,” which reportedly is in high demand so far, along with smartwatches of varying sorts from Movado, IWC, Richline Group and Montblanc, to name just a few.
When we return to real life on Monday, I’ll be working on a preview of the upcoming Baselworld show.
Smartwatches were the talk of the town in white asparagus country last year, and I bet they will be again in 2016.
Thanks for your support this year. I wish all our readers a very healthy and prosperous 2016.
Happy New Year!
The Latest

Jewelers of America’s 35th annual design contest recognized creativity, artistry, style, and excellence.

Tratner succeeds Andie Weinman, who will begin stepping back from the buying group’s day-to-day operations.

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

The president made the announcement via Truth Social Wednesday, adding that India also will face a penalty for its dealings with Russia.


The luxury titan’s star brand Gucci continued to struggle amid a "tough" environment.

Its opening marks the completion of the retailer’s new 11,000-square-foot store in the Texas capital.

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Respondents shared concerns about tariffs and commentary on the “Big Beautiful Bill.”

“Making a Killing in Diamonds” tells the story of Mimi Rosen, the disappearance of a scientist, and the murder of lab-grown diamond CEO.

The first-time exhibitors, set to debut at the New York City show, share a devotion to craftsmanship, storytelling, and material integrity.

The online auction house’s September sale will feature rough Brazilian emeralds of various qualities.

She’ll lead an executive committee consisting of President-Elect Bryan Moeller, Mitchell Clark, Bill Farmer, and Larry Rickert.

Announced Sunday, the deal will set the tax on goods imported into the United States from the European Union at 15 percent.

A new edition of the Italian brand’s “Ipanema” collection has debuted with gemstones that evoke Brazil’s breathtaking views.

The retailer will refer its customers to WonderCare, founded by venture capitalist and watch collector Kevin O’Leary.

The jeweler’s largest store yet is set to open in Little Rock next fall.

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.