Embrace technology or expect to see your competitors take business away from you, was the message from Sector C Executive Vice President Simon Rainer at the Sector B and C gathering.

He spoke about the rapid changes taking place in technology and how advancements can help both jewellery manufacturers and retailers. It is also forcing changes in business models.

Rapid prototyping for new manufacturing processes are shaping how jewellery is being made – with CAD and lasers. The key challenge is to teach designers about these new technologies, he explained.

Advances in technology are bringing about greater complexity of jewellery design, including the use of 3D printing machines.

Speaking about the United Kingdom, where he is based, Mr. Rainer said that retailers are also embracing technology, and that is vital in the UK, where jewellery sales are expected to be flat and only in line with inflation in the coming years.

High Street retailers are under threat, he said, with a possible 22 percent loss of outlets by 2018 from 2012. That could see 1,500 stores closing in the next three years from the current level of 6,800 retailers.

He explained that the biggest challenge to bricks and mortars stores all around Europe, especially in the United Kingdom, France and Germany, continues to come from online sales. The rise in online sales in 2014 and again in 2015 is predicted to be 14 percent, he said.

“Once it would have been unthinkable to sell diamonds online. Consumers were worried about sending their financial details and about not seeing and feeling the jewelry before purchasing it,” he said.

He added that it was interesting to see how Blue Nile, a major U.S.-based jewellery retailer, is now changing to a bricks and mortar presence.

Mr. Rainer said sales initiated from mobiles and tablets are increasingly important, with 58 percent of consumers seeing mobile as way of buying this year.

He also said that online and offline are becoming increasingly linked, with Click & Collect becoming more popular. “Even Cartier has teamed with Selfridges to offer this service in the UK,” he commented.

It is projected that 76 percent of shoppers will be buying via Click & Collect by 2015 in the UK, and that this will grow in popularity by 20 percent annually, he said, adding that it was hoped that it would help stem the decline in offline sales.

Photo Caption: Members of the audience, during the Sector B & C session.

The meeting of CIBJO’s Sector A, which deals with gem materials in the jewellery sector, discussed at length issues relating to the term “altered,” and whether its should be changed to  “modified” in the Blue Books.

Finally, it was agreed that each of the CIBJO Sector A commissions will receive by email the changes that are proposed, and be requested to vote on them.  After a majority vote, they will be presented to the Board of Directors for final approval, after which the new versions of the Blue Books will be placed online.

Sector A President Roland Naftule said that the timeframe for making the changes will be about three months.

Following that decision, Naftule said it was important to thank the CIBJO members who carry out the Sector A work, and especially for the very intensive effort involved in updating the Blue Books.

He also raised the possibility of creating a computer and mobile application, which would feature shorter versions of the Blue Books.

Mr Naftule spoke about the CIBJO treatment disclosure codes, which are meant to used solely by members of the trade. “One of the problems is that a large part of our trade at the retail level does not disclose all the information about the jewellery items,” he stated, noting that the use of the codes would help address the problem.

Thomas Lind said that he supports full disclosure to consumers about jewelry items in order to help them make a purchasing decision. “How that information is passed on to consumers at the retail level is something they need to decide,” he stated.

Photo Caption: Voting during the CIBJO Sector A meeting.

The Diamond Commission held a lengthy debate relating to issues that were addressed in the Grading and Laboratory Ethics Special Session on Monday. The meeting, which was chaired by Diamond Commission President Udi Sheintal, discussed the three main themes that emerged from that gathering which suggested using CIBJO as an auditing body for labs, creating a guidance book by CIBJO on grading, and a program to educate the trade and ultimately retailers, on how to assess a lab report.

Sector A President Roland Naftule told the meeting that the subject of grading and origin reports was extremely important and that he felt uncomfortable with the idea of not having a further debate until next year.

“The seriousness of this subject needs to be addressed as soon as possible,” Mr. Naftule said. “There has been a lot of bad publicity. There could be a number of lawsuits. Our industry could be extremely damaged if we do not review this quickly. We cannot leave here without finding a way of working together on these issues and talking to the labs to meet and discuss it further and find a solution before it becomes catastrophic. As a group, we can present recommendations on how to proceed.”

There followed a lengthy discussion about the standards and terminology of the different grading reports, particularly that of the GIA.

Some members of the audience suggested it was not the work of CIBJO to deal with claims of fraud and misrepresentation regarding grading reports.

Cecilia Gardner, CEO of the Jewelers Vigilance Committee, said she did not believe that CIBJO should be involved in auditing work. “It is much too complicated and it is not an appropriate use of CIBJO resources. But we can have a role in guidance.”

Alex Popov, the Chairman of the World Diamond Mark had earlier suggested that its guidance, which would be ready in June, could serve as a basis for CIBJO’s approach.

James Riley, CEO of Gem-A, said CIBJO had a role in educating the trade about what is right scientifically so that they do not pass on wrong information to consumers.

Meanwhile, Diamond Commission President Sheintal said CIBJO could work to invest more in education so that consumers have the tools available so that they are not mislead.

Photo Caption: Diamond Commission President Udi Sheintal.

Meeting for the second time in formal session, CIBJO’s Coral Commission, which debuted in 2014, presented its proposal for a new Blue Book. The document was reviewed by the Coral Commission President, Enzo Liverino.

The Coral Blue Book deviates from the other Blue Books in that it provides a set of academic and similar references at its end.

There ensued a lengthy debate regarding the references. These used to feature in the Blue Books for pearls, diamonds and coloured stones, but frequently were so long that it was decided to remove them, explained Sector A President Roland Naftule.

Mr. Naftule explained that, since coral is an endangered species and the commission is doing different work to that with diamonds, pearls and gemstones, some members felt it would be better to leave the references in.

Sector A Vice President Thomas Lind proposed that the references stay in and that the commission decide next year what to do with them, because “this is a work in progress and we can decide in the coming year or two how to proceed with this issue.”

The meeting ended with a vote in favour of retaining the references with slight modifications, and this would be reviewed at the next CIBJO Congress, in 2016.

The Coral Commission Steering Committee will review the references, and retain only those that relate to CITES, the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival.

Photo Caption: Coral Commission Chairman Enzo Liverino.

Meeting at the 2015 CIBJO Congress, the organisation’s CAENCOM Commission, which serves as a network for executives of industry organisations, was presented with a briefing about the Brazilian jewellery sector by Clarissa Maciel, International Affairs Manager for IBGM, the Brazilian industry association that is hosting the congress this year.

The presentation, entitled “Market Situation Trends and Opportunities,” gave an overview of Brazil’s financial situation. Among the economic details that she provided, Ms. Maciel stressed that Brazilian household consumption is high and accounts for about 63 percent of Gross Domestic Product.

The country, which has become a leading global economy in the past decade due to the commodities boom, has a labour force of 111 million people, while unemployment is just 5.7 percent.

Brazil, she said, is the world 11th largest gold producer, the 13th largest consumer of gold, and one of the top three gemstone producers in the world. She presented figures showing that exports of rough last year were $57 million, while exports of cut and polished stones had a value of $131 million.

Among the trends that had been identified in recent years in the country’s jewellery industry are that the number of independent retailers is declining, and there is increasing concern with sustainability, fair trade and compliance issues. In addition, jewellery companies are under continuous pressure to reduce production costs.

Ms. Marciel added that major international brands have entered the Brazilian market, and there is a growing number of chains of stores.

She explained that gold-plated jewellery and fashion jewellery set with natural stones are becoming increasingly popular with Brazilian consumers, as is fine jewellery made with smaller amounts of gold.

There has been a slight decline in silver jewellery sales, and rising imports of fine jewellery and fashion jewellery. As with countries in the rest of the world, Brazil’s jewellery industry also faces competition for disposable income from electronics products, travel and fashion labels.

IBGM, she said, is a trade association with two offices in Brazil. It is a non-profit organisation, representing the whole of the country’s jewellery pipeline from mines to market, and is the Brazilian representative to CIBJO and the International Colored Gemstones Association. IBGM is a member of the Responsible Jewellery Council.

IBGM organizes Brazil’s Feninjer trade fair which is held twice a year, with 150 exhibitors of all types of jewellery and watches.

IBGM partners with the government body, Apex Brasil, the Brazilian Trade and Investment Promotion Agency, to boost investment in Brazil and sponsor Brazilian firms at international tradeshows around the world.

Photo Caption: CAENCOM President Simon Rainer address the commission.

The issue of colour digital grading was widely discussed at the meeting of the Gemmological Commission. The debate followed a presentation by Menahem Sevdermish of the digital colour language in his GemeWizard system. According to Mr. Sevdermish, a digital system enabling precise colour grading and communication is possible.

The computerized system can provide precise colours of all stones, he said, adding that his company had worked together with the GIA to develop it. “It is a digital record of colours. Digitalisation is the future,” he said.

Gemmological Commission PresidentHanco Zwaan said that, regardless of CIBJO’s position on colour grading, digital colour detection methods already exist and he would like to explore further whether it is possible to pinpoint colours for certain of commercial terms used in the trade. But it is necessary to identify other factors that are considered when applying those commercial terms and to formulate standards for lighting and viewing techniques.

Mr. Zwaan made it clear that the Gemmological Commission does not have a preference for any particular system.

Douglas Hucker, CEO of AGTA, asked if CIBJO or the Gemmological Commission was intending to endorse commercial terms. “If a lab wants to pursue this language, that is okay, but are we saying CIBJO is getting behind it?”

James Riley commented that in any case labs are developing digital methodologies and those organisations that do not know about them will look to CIBJO for information.

Thomas Lind suggested a motion that the Gemmological Commission look into how these labs are using these terms and present a report to the Commission next year. The motion was passed unopposed. “CIBJO is not determining the terminology but looking at how labs are using this digital communication,” he said.

Among the other issues mentioned at the meeting were developments concerning lead-glass filled ruby – and a GIT report on the introduction of “organic ruby,” the enhancement of emeralds after certification, and tanzanite nomenclature in the Gemmological Commission Blue Book, and a short update regarding the Laboratory Manual Harmonisation Committee.

Photo Caption: Gemmological Commission PresidentHanco Zwaan addressing the commission. Together on the podium with him are Claudio Milisenda (left) and Pornsawat Whatanakul.