Good question. I think Mr. Rapaport's organization is peerless in the gathering of broad industry information, but I think they're somewhat entrenched in traditional channels.
I would just hope he would attempt to envision a bit further than the industry bubble borders! There is a whole jewelry world out there which is detached from that bubble.Date: 6/10/2010 11:07:40 PM
Author: John Pollard
Good question. I think Mr. Rapaport''s organization is peerless in the gathering of broad industry information, but I think they''re somewhat entrenched in traditional channels.
Fully agree on that one..., one wonders sometimes what Rap bases his price-list on?? You say traditional, I say primitive.
His view of the world economy has been portentous, especially transfer of wealth to China and India. Credit him for accurately predicting details in those emerging markets as early as 2005. After spending time in China I believe some of his data and predictions may even be conservative. He was dead-on about Indian attendees coming to JCK this year as buyers rather than suppliers and he is not the first person to compare aspects of the social mood there and in China to the US when our economy was booming. I''ll be in those countries again before the end of 2011 and look forward to the experiences.
I think the domestic pinch he predicts - where a jeweler in NY wants XYZ polished but someone in India or China can pay a better price - will appear in the foreign rough market first (more discussion in this active thread). That shouldn''t be surprising, since faster adaptation in B2B sectors is logical. Meanwhile consumer supply in young markets will undergo resets, adjustments and seasonal trends. Stabilization may take years and I think change to existing supply lines isn''t as imminent as Rapaport suggests. Still, I wouldn''t put off buying a large or unique polished piece at a good price if you can snag it now: High-value one-ofs will be the first candidates for global rerouting.
His overview on the US climate came off pretty grim, but that may be to strengthen his positioning of diamonds as the ultimate emotional and financial luxury item. I agree with what he''s saying when it comes to wealth uncertainty but I''m in stores all around the country regularly, and there is excited, enthusiastic buying taking place. Logically there''s limited affordability in a recession, but when people believe they''re getting quality and value they''re not afraid to reach for their wallets. Those who deal in quality are doing ok. One thing he hits spot-on is the need to add value and educate consumers the right way if you wish to eliminate bottom-line price competition. He has been delivering that important message for years - though it reflects the showroom jeweler''s reality far more than the internet seller''s.
In that sense I go away each year feeling he missed a small but cutting-edge opportunity to educate his audience. Rapaport''s internet references are typically limited to BN.
And let not forget "Rapnet"..., see John..., I see it as lack of knowledge! He doensn miss because he (and surprisingly the advisors surrounding Rap) doesnt know of its existence..., I believe as far as he is concerned a GIA 3X is the ultimate cutting edge (well, maybe some non-cutting edge proprietors branded cuts
).
For years he has pointed out that most consumers are doing research on the internet, but has not followed-up with strategies for dealers to learn and adapt. He suggests getting a website, an iPad, knowing your competition (BN), etc... but he has not mentioned the presence of consumer or trade e-sources like Pricescope or Polygon. I understand that PS is barely known in the industry-at-large but it''s a rich resource available to anyone, anywhere in the world, free of charge.
IMO, the majority of industry members think "Internet consumer research" is simply surfing through a few jewelers websites (BN etc...) comparing prices &.....?
Most industry pro''s ( I know of who are not regular PS contributors ) that are knowledgeable of PriceScope either dont have the patience to read or dont believe they can be educated or gain anything from consumers showing and/or voicing their interests & concerns..
I have long agreed with his views on the practice of memo. I''m also firmly in his camp when it comes to social responsibility and awareness. Candidly, I think he used this year''s platform to shake people up and generate interest in his Fair Trade Jewelery initiative - did anyone else think the blood-red backdrop he prepared before staging his tirade was a giveaway? To his credit that shakeup was effective. He made a powerful impression and I personally feel the ends will justify his impression of Thespis if some of the current stakeholder gridlock is broken in the interest of social responsibility.
No doubt there are many who do not agree with his world view. And while his broad strokes cannot cover every detail I find him a well-traveled man of the world who is not afraid to bring forward important issues with passion.
The price list question is raised each year, sometimes with vigor: "Rapaport you are the driver of high prices. You make the mines rich and us poor..." (2010)Date: 6/12/2010 1:05:29 PM
Author: DiaGem
Date: 6/10/2010 11:07:40 PM
Author: John Pollard
Good question. I think Mr. Rapaport's organization is peerless in the gathering of broad industry information, but I think they're somewhat entrenched in traditional channels.
Fully agree on that one..., one wonders sometimes what Rap bases his price-list on?? You say traditional, I say primitive.
It's not a lack of awareness. Credit him for being a curious guy. I sat and gave him a tour of the old PS webinar system after a session where PS was mentioned in 2007. His son and I have made tentative plans to chat about what's happening on the internet several times over the years with no follow-up. Garry Holloway has had discussions and interviews with him and brings up PS. He knows about it but my opinion is that it's just not "big" enough in his world/his network to merit significant attention. In a statistical sense he's right - the entire internet is less than 10% of US business to begin with and in industry terms PS is a speck on the vast global radar - but I think the potency of PS in terms of how it could enrich individual members of his audience goes beyond simple statistics.Date: 6/12/2010 1:05:29 PM
Author: DiaGem
In that sense I go away each year feeling he missed a small but cutting-edge opportunity to educate his audience. Rapaport's internet references are typically limited to BN.
And let not forget 'Rapnet'..., see John..., I see it as lack of knowledge! He doensn miss because he (and surprisingly the advisors surrounding Rap) doesnt know of its existence...,
Well said.Date: 6/12/2010 1:05:29 PM
Author: DiaGem
IMO, the majority of industry members think 'Internet consumer research' is simply surfing through a few jewelers websites (BN etc...) comparing prices &.....? Most industry pro's ( I know of who are not regular PS contributors ) that are knowledgeable of PriceScope either dont have the patience to read or dont believe they can be educated or gain anything from consumers showing and/or voicing their interests & concerns..
I would just hope he would attempt to envision a bit further than the industry bubble borders! There is a whole jewelry world out there which is detached from that bubble.
Plenty of opportunities that are basically a must in these new and changing times.
Date: 6/14/2010 11:46:52 AM
Author: John Pollard
The price list question is raised each year, sometimes with vigor: ''Rapaport you are the driver of high prices. You make the mines rich and us poor...'' (2010)Date: 6/12/2010 1:05:29 PM
Author: DiaGem
Date: 6/10/2010 11:07:40 PM
Author: John Pollard
Good question. I think Mr. Rapaport''s organization is peerless in the gathering of broad industry information, but I think they''re somewhat entrenched in traditional channels.
Fully agree on that one..., one wonders sometimes what Rap bases his price-list on?? You say traditional, I say primitive.
Each time it comes up Rapaport explains that the RapNet pricelist is a real-time reflection of real prices offered by real suppliers using the service. Meanwhile, he says, the Rapaport Price List is something his group puts out ''to let the world know where we see prices.'' They have their trusted sources - see ''entrenched'' from my prior post - and he says they adjust the list higher when they see those prices rising.
Rapnet are "offered" prices, we never know the actual close-dealing pricetag. And the "trusted sources" tagline is passe big time! The huge Rap discount/premium spreads are proof!
Many think this is a catch-22, since the trade-at-large raises in response to the list...''they adjust the list higher''...the trade-at-large raises in response to the list...''they adjust the list higher''...the trade-at-large raises in response to the list... ad nauseum.
Meanwhile in his annual talk he is exhorting people not to wish for higher prices: ''If you don’t own a diamond mine why do you want higher prices? When prices go up your insurance goes up. You make 3% more but you sweat blood trying to sell. The whole idea of higher prices is not a great way to make a living so don’t hope for them.''
So now you have people in the audience stewing because - right or wrong - they see Rapaport as the driver of high prices. Meanwhile Rapaport says higher prices are bad and is telling ''them'' that ''they'' are the ones raising prices. As someone who came from another industry it really is an odd little dance. I always get a fresh cup of coffee when I see it beginning. Which came first hen or egg?
It''s not a lack of awareness. Credit him for being a curious guy. I sat and gave him a tour of the old PS webinar system after a session where PS was mentioned in 2007. His son and I have made tentative plans to chat about what''s happening on the internet several times over the years with no follow-up. Garry Holloway has had discussions and interviews with him and brings up PS. He knows about it but my opinion is that it''s just not ''big'' enough in his world/his network to merit significant attention. In a statistical sense he''s right - the entire internet is less than 10% of US business to begin with and in industry terms PS is a speck on the vast global radar - but I think the potency of PS in terms of how it could enrich individual members of his audience goes beyond simple statistics.Date: 6/12/2010 1:05:29 PM
Author: DiaGem
In that sense I go away each year feeling he missed a small but cutting-edge opportunity to educate his audience. Rapaport''s internet references are typically limited to BN.
And let not forget ''Rapnet''..., see John..., I see it as lack of knowledge! He doensn miss because he (and surprisingly the advisors surrounding Rap) doesnt know of its existence...,
Yes..., and I call it primitive. Everybody knows the Internet is only a small part of the overall picture..., but they also know it is basically the only path showing steady & significant growth..., PS is way too transparent for mainstream dealers! I believe PS would make a lot of industry members mad! Rap needs to sell info, transparency as regularly practiced on PS wont be welcomed info. Go figure.
Well said.Date: 6/12/2010 1:05:29 PM
Author: DiaGem
IMO, the majority of industry members think ''Internet consumer research'' is simply surfing through a few jewelers websites (BN etc...) comparing prices &.....? Most industry pro''s ( I know of who are not regular PS contributors ) that are knowledgeable of PriceScope either dont have the patience to read or dont believe they can be educated or gain anything from consumers showing and/or voicing their interests & concerns..
I would just hope he would attempt to envision a bit further than the industry bubble borders! There is a whole jewelry world out there which is detached from that bubble.
Plenty of opportunities that are basically a must in these new and changing times.
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