Outsourcing
The jewelry industry has dealt with outsourcing for the past 35 plus years.Many American jewelry manufacturers started by using factories in India. These factories were able to produce finished jewelry at costs far below what these same items would cost in America. American jewelry manufacturers selling to retail stores kept the practice a secret.Although the cost of production was so little that the cost of labor often was not considered. When the wholesale price was offered to retailers, the cost to those retailers were not reduced.The American jewelry manufacturers profits soared. Many American jewelry manufacturers found the problem of competeing almost impossible by using American workers.In the meantime American consumers continued to buy jewelry but not recognizing lessor quality of workmanship. Price was king not quality of workmanship. As more American jewelry manufacturers understood, if they intended to stay in business they must close their American factories, dismiss their help and outsource their designs.India was first but not last. Some work went to Thailand.After Pres. Nixon went to China in 1972, the Chinese doors started to open. In the 1980's Chinese annual jewelry sales was $25 million which has increased to $12 billion,most of which is sold in the United States.Those of us who were employed in the jewelry business tried to cry out to our fellow Americans.No one was listening. Quality of workmanship was reduced as well as prices.Our industry in America was being destroyed but our American department store buyers were only interested in price. TV selling was starting and the jewelry sales increased over the TV and later on the Internet. Now years later many other industries are affected by outsourcing. The factories from Ohio to Georgia and other states have closed. Refrigerators are made in Mexico and now I understand that our military vehicles are being outsourced. Will it ever end ? Is price still king ? What happened to quality of workmanship and pride in what we made ?Your thoughts...Uncle Marty
posted by Uncle Marty at 6:07 PM
12 Comments:
First outsourcing hit the manufacturing industry. Now it's hitting our service industries. What will be left for the American workers?
I think we are starting to come full circle.
I know of European jewelry craft people who have come to America recognizing a need. They are designing and making fine jewelry with quality workmanship understanding that there are some consumers who want to own better jewelry. Some consumers are willing to pay for well made jewelry and not the poorly constructed jewelry made with diamonds that resemble spit and gemstones that have weak colors.
This is just a trickle but I believe it is a possible trend.
In my active days the thought of jewelry being made in steel set with diamonds and synthetic material being manufactured as look alike diamonds being sold as fine jewelry was unthinkable.
Will the American public be willing to pay for an American product that is made to last ?
Years ago when a refrigerator was made by an American company consumers expected quality.
The same with automobiles. Why is Toyota, Honda and others able to make and sell here in America a better product, use our labor pool and American supplied raw materials and still make a comfortable profit? What is wrong with the American companies that are failing ?
if you need information about buying or selling jewelry just ask.
I have over 50 years experience in this industry
People have a dollar store mentality. They have no concept of quality hence the way they will buy any old dish rag to wear because it has a designer label. The designer label on a cheap piece of sweatshop-made fabric means to the modern person what an invisible hem and neat buttonholes meant to my mother. Jewellery has met the same fate: DeBeers, et al, have convinced us diamonds are "the real thing" regardless of how cheap they are or how mass-produced their settings. I hope you are right about European jewellers in the US (please let us keep some in Europe too!) because it depresses me as someone who studied art & design that jewellery which has so much potential and is so fascinating a craft has degenerated the way it has.
Luz,
I know of 2 jewelry manufacturers, both located in New York City who employ bench jewelers, diamond setters,polishers and simliar trade experts that employ Polish workers.
Thursday I visited one of these, and was pleased to see both men and women working side by side.
The quality of workmanship reminded me of past times when each step of the manufacturing process was reviewed by the owner of the company and the final finished product was reviewed for
perfection prior to shipment.
Perhaps there is a new trend starting here.
We owned a jewelry store for 32 years in Freeport NY.
We made much of our own made jewelry. However we did sell beautiful jewelry made in France by Garnier.
I remember the young son of the Garnier family visiting our store.
He told us he was traveling the United States to get to know all his companies customers personally.
What happened to that personal touch?
Luz,
Have you read what Georgeanne wrote about on Jewelryarts ?
I will respond if she joins this blog.
Just the last couple of posts. Yahoo has lost some of my mail so I missed the beginning.
Luz, I would like to know where you studied and see some of your work. Possible ?
Anjaka,
Please be more specific about your request.
If you want to market your product line with Google contact them directly. Some sellers say they are worth the price but be prepared to pay by the click. Clicks are no guarantee that anyone will make a purchase.
Before you go to Google filter down what you are selling and to whom you want to sell. If you are prepared to sell to the ultimate consumer understand that retailers will not buy from you. Why should they compete with you with your own merchandise (a no winner).
Filter down what your specific items of a single type of what you intend to sell rather than showing all types of merchandise.
If you want me to review your website and select a segment of what you should advertise, I will but there is a price.
I do consulting for other jewelry companies. Write me privately for my fees at uncmarty@att.net. All information in strict confidence.
Any consultant that works for free, in my opionion is worth 0 anyway.
I find your jewelry to be the most attractive I have seen anywhere. Here is my problem. My husband is a huge collector of toilets and he has some from some very notable individuals - Vivian Leigh, Mel Torme, Honey Boo Boo and Henry Kissinger. Would you be willing to do a trade in kind for one of these - perhaps the Kisssinger or the Teddy Roosevelt for one of your pieces - he also has a 10K gold one but its value is $35,000.00. Please let me know.
I can send you pictures if you are interested
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