Luxury Business' Falters

It is impossible not to notice the increasing number of jewelry companies going out of business these days. Within the industry we constantly hear of the maladies of producers and wholesalers, but what it really comes down to is the demise of the retailers. Consumers are not spending much on luxury goods these days. The only retailers that seem to be doing well are those with a cost-competitive niche or those that sell a recession-proof product. The world is turning into a spam-is-in, bling-is-out sort of consumer market.

Luxury goods dealers are dropping like flies, closing up stores and holding fire sales. The fire sales turn into a windfall for shoppers on the prowl for a deal, and speed the decline of the retailers struggling to hang on.

The biggest players have certainly not been immune to the faltering economy. In fact, they seem to be some of the hardest hit. Zale Corp. just announced closure of 115 stores around the country, and the Shane Company has their suppliers duly worried after posting a $29 million loss in 2008. Now that, my friends, is a chunk of change!

The problems and bankruptcies extend around the world. Miki of Japan, once the largest jewelry chain in the country, declared bankruptcy in January. And the falling demand for stones is already hitting the cutters around the world.

Even the American Icon Tiffany & Co., is shuttering its newest gem, Iridesse. I guess it is no secret why Cepek bailed on the World Pearl Forum now.

The writing is on the wall. Only the strongest, most innovative companies are going to survive this recession. And when it is over, a new breed of giants will take the center stage.

Coming up! The rumblings in the South Sea pearl industry - from the production side!