Date post: | 10-Dec-2015 |
Category: |
Documents |
Upload: | larissa-hutchcroft |
View: | 217 times |
Download: | 1 times |
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
United States Diamond Jewelry Trade Sentiment Study
January 2007
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
United States Trade Sentiment Study of Diamond Jewelry
GfK Audits & Surveys75 Ninth Ave, 5th FloorNew York, NY 10011
World Diamond Council
3
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Background
The purpose of this study was to provide a gauge on the issues surrounding conflict diamonds among large jewelry retailers and the factors affecting sales of diamond jewelry.
To accomplish this objective, a sample of independent/small chain and large entity jewelry retailers were contacted. The large entity retailers were recruited by WDC and include traditional jewelry retailers including high-end carriage trade, discount, department, internet and home shopping retailers. A substantial sample of small chain and independent jewelry retailers were developed from lists drawn from GfK Audits & Surveys' own 2003 National Retail Census, the American Gemological Society, the JA and other "list" sources regularly used by GfK Audits & Surveys.
Most charts within this presentation are an aggregate of the large and small chain/independent study. In a few circumstances, slides from the separate studies are used to highlight key findings/trends.
Trend data has been included for independent/small chain retailers due to the availability of comparable historical surveys.
The resulting sample comprised 302 independent and small chain jewelry retailers plus 16 large entity jewelry retailers and was weighted by diamond jewelry annual dollar sales from a secondary research source.
4
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Background (continued)
The sample was weighted using the following percentages of annual diamond jewelry dollar sales for each channel:
55.4% Independent and small chain jewelry retailers 30.8% Large chain jewelry retailers 7.6% Department stores 0.7% TV retailers 5.5% Online retailers
Interviewing was conducted using GfK Audit & Surveys' executive interviewers and GfK Audit & Surveys' CATI system at several of our TIS (Telephoning Interviewing Services) Group. These retailers were asked to answer a questionnaire regarding the issue of conflict diamonds along with other related questions. GfK is an independent research company, specializing in all major retail
categories. [From WDC -- This study covers a representative sample of 90% of the value sold by
the major channels of retailers selling diamond jewelry -- excluding discounters. (Discounters represent less than 10% of the value of the market.) We specifically mention "major channels" as the study does not cover fringe retailers who do not predominantly sell diamond jewelry/fine jewelry, e.g. pawn shops, military bases, gift shops.]
5
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Two-thirds of jewelers surveyed had received at least some questions concerning conflict diamonds.
10% 10%
31%23% 25%
25% 26%
34%39%
10%
25%
34%
1%8%
NET Conflict Conflict-Free Diamonds Conflict / Blood Diamonds
DK
No
Yes, 1 or 2
Yes, some
Yes, a lot
6
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Overall high awareness of industry safeguards which protect the legitimate supply of diamonds with four out of five retailers stating they felt confident in their ability to explain the Kimberley Process.
75%
11%
7%
9%18%
1%
80%
Aware of Kimberley Process Aware of System of Warranties
DK
Not aware
Aware, can notexplain fully
Aware, canexplain fully
7
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
U.S. Retailers were aware of key issues affecting the diamond industry.
100% of Retailers Read or Heard About Any Issues
83%75%77%
73%
97%97%94%90%
Kimberly Process Conflict Diamonds Blood Diamonds Hollywood Movie AlluvialDiamonds/
Artisanal Mining
MoneyLaundering
DeceptiveJewelers
Benefit to Africa
99% Any Conflict/BloodDiamonds Issues
8
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Three quarters of all retailers surveyed were aware of the informational website www.diamondfacts.org.
24%
75%
Aware of diamondfacts.org Not aware of diamondfacts.org
9
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Nearly all retailers surveyed (97%) were very/somewhat prepared to answer conflict/blood diamond customer questions.
1%2%
22%
75%
Very prepared Somewhat prepared Not at all prepared Too early to tell/DK
10
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
As education efforts increased, the independent, small chain retail segment felt more prepared to answer conflict diamond questions.
52%
41% 39%
7%2% 1%
32%51% 56%
14%4%2%
Q2 November Q4
Too early to tell/DK
Not at all prepared
Somewhat prepared
Very prepared
11
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
U.S. Retailers have taken encouraging steps to educate staff and customers on conflict diamond issues and a full 88% have asked for or received guarantees from their suppliers that their diamonds are from sources free from conflict.
56%
50%
51%
38%
27%
5%
8%
9%
18%
16%
8%
10%
7%
7%
10%
15%
15%
14%
2%
93%
85%
81%
72%
62%
96%
89%
91%
91%
66%
64%
66%
52%
29%
84%
83%
80%
88%
46%
54%
72%
77%
89%Train staff
Provide staff with written responses
Educational phamplets on hand
Store's website explanation
Direct customers to third party source
NET Asked for/Received conflict-free guarantee
Asked for conflict-free guarantee
Received a conflict-free guarantee
Store policy in place
Conflict Diamonds Confidence Pack from internet
Issue conflict-free store guarantee
Reassure customers - diamonds do good for Africa
Stock diamonds from Canada
Any other action
Have done
Might do
Base = 97% of Retailers Very/Somewhat Prepared
12
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
84%
80%
65%
68%
67%
63%
53%
48%
54%
42%
30%
29%
82%
82%
76%
76%
66%
60%
57%
55%
49%
49%
47%
39%
88%
85%
84%
81%
73%
74%
63%
69%
59%
54%
55%
50%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Train staff
Received a conflict-free guarantee
Store policy in place
Asked for conflict-free guarantee
Provide staff with written responses
Reassure customers - diamonds do good for Africa
Issue conflict-free store guarantee
Educational phamplets on hand
Stock diamonds from Canada
Direct customers to third party source
Conflict Diamonds Confidence Pack from internet
Store's website explanation
Q2
November
Q4
Small chain/independent retailer preparation has intensified over last six months
13
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
When looking at a base of large chain retailers only, nearly all have taken the necessary steps to address the conflict diamond issue.
73%
74%
35%
31%
38%
1%
8%
8%
1%
1%
10%
14%
100%
100%
95%
99%
67%
100%
100%
100%
99%
74%
75%
45%
45%
38%
100%
100%
94%
91%
60%
100%
100%
99%
100%
Train staff
Provide staff with written responses
Educational phamplets on hand
Store's website explanation
Direct customers to third party source
NET Asked for/Received conflict-free guarantee
Asked for conflict-free guarantee
Received a conflict-free guarantee
Store policy in place
Conflict Diamonds Confidence Pack from internet
Issue conflict-free store guarantee
Reassure customers - diamonds do good for Africa
Stock diamonds from Canada
Any other action
Have done
Might do
Base = 100% of Retailers Very/Somewhat Prepared
14
GfK Group January 2007GfK Audits & Surveys
I/SC & Large Entity Trade Sentiment Study of Diamond Jewelry
© Copyright GfK Retail & Technology 2006. Proprietary and Confidential
Summary
Efforts to educate retailers and their consumers about conflict diamonds are showing encouraging results: Many retailers (two-thirds) recently received questions from
consumers concerning conflict diamonds and the vast majority (97%) felt prepared to answer these questions
Most jewelers (89%) said they had trained their staff to handle customer questions about the issue, while four out of five said they felt confident of their ability to explain the Kimberley Process.
Most retailers (88%) have asked for or received guarantees from their suppliers that all their diamonds are conflict-free.
Education efforts need to continue Awareness of the Kimberley Process and System of Warranties has
increased substantially but more still needs to be done. Every retailer needs to be asking for and receiving a conflict-free
guarantee from their supplier. The majority of retailers have trained and prepared their staff but
there is still room for improvement and everyone should be taking measures.