Fashion Jewelryfor Neiman Marcus

Alia Rafiq

Trade Show Schedule SIHH

• Geneva, Palexpo Hall 6 – Access via Hall 5.500 metres from Geneva airport.• January 18 – 22, 2010• http://www.sihh.org/sihh2010

New Munich Trade Fair Centre• MessegeländeD-81823 München, Germany• February 19 - 22, 2010 • http://www.messe-muenchen.de

Spring 2010 Trend Report

highly dramatic Statement jewelry

swirled and sparkled materials ranging from feminine fabric petals

and diamonds to harder looks with arrowheads

and metals

2010 Color Story

Pantone.com

Nature is Blooming

Botanical

Silver & Gold

Oxidized Silver

& geometric shape

Cuffed

exotic

Ethnic&

Chunky Beads

& Stone

Bigger is

Better

Com

petito

rs

•High end Merchandise•Limited selection•Fine Store Environment•Effective Window Display•Few sales people•Easy to navigate•Jewelry department carries names from David Yurman to Juicy Couture•Price range from $8,000-$38

Saks Fifth AvenueCustomer Profile:• Upper Class Customer• Age 30-55• 80% women• Browsers

Visual Presentation:• Organized layout• Engaging first floor display• Tasteful store design• Easy to access desired garments

Saks Fifth AvenueMerchandise assortment: David Yurman, Gucci, Elizabeth & James, Dior…Necklaces: • High price point: $6,650.00 Marco Bicego Diamond & Gold disk• Low price point: $38 Juicy Couture Charm necklacesWatches:• High price point: $8,375 Cartier Large Ballon Bleu Watch• Low price point: $400 Philip Stein Stainless Steel Silicone StrapEarrings• High price point: $5,480 Roberto Coin diamond hoops• Low price point :$38 Marc by Marc Jacobs script earringsBracelets• High price point: $5,150 Gucci black onyx and diamond bracelet • Low price point $38 Juicy Couture charm braceletRings• High price point: $3,950.00 David Yurman Citrine Diamond ring• Low price point: $45 Kenneth Jay Lane Rope ring

Neimans Vs. Saks

David Yurman Blue Topaz, Diamond & Sterling Silver

Necklace

Saks: $975Neimans: $975

Gucci Silver and Bamboo Horsebit Bracelet

Saks: $1,650Neimans: $1,650

Barneys• High end• Posh & almost unfriendly staff• Highly imaginative displays• Very open retail floors• Older clientele• Prices from $200-$13,000• Names from Cathy Waterman

To Mallary Marks

Barney’sCustomer Profile:• Disposable Income• Ages 30-60• Desires to be unique/fashionable

Visual Presentation:• Highly imaginitive displays• Often impractical yet visually pleasing• Even mannequins seem to be a work of art• Minimal merchandise to highlight display

Barney’sMerchandise assortment: Maronni, Simone Coste, Fallon…

Necklaces: • High price point: $12,620 Mallary MarksTassel Necklace• Low price point: $285 Etten Eller chain necklace

Watches:• High price point: $5,000 Bell & RossBR-02 Watch• Low price point: $365 LIP White Fridge

Earrings• High price point: $17,800 Ileana MakriBlack Diamond Lace Earrings• Low price point : $190 Jeanine PayerMeriwether Earrings

Bracelets• High price point: $19,950 Rettore Zebu Horn Cuff• Low price point $375 Jennifer Meyer Diamond Bangle

Rings• High price point: $39,800 Renee Lewis Marquis Ring• Low price point: $550 Malcolm Betts Two-Tone Diamond Ring

Barney’s Vs. Neiman’s

Barneys: $2,020 Me & Ro flat fine bangle

Neiman’s: $500 Roberto Coin oval bangle

Bloomingdales• Large store• Over crowded• Looming sales people• Bright, neat displays

• Mid to high end merchandise• Carries names from Me&Ro to Aqua

• Price range from $25-$430

BloomingdalesCustomer Profile:• Middle to High income• Age 20-50• Store Loyalty• Mostly women

Visual Presentation:• Grand displays, becoming trendier• Large retail areas• Busy yet still clean & crisp displays

BloomingdalesMerchandise assortment: D&G, Adidas, Badgley Mischka, Burberry…• High price point: $612 Gemma Redux Pyrite and Chain Necklace• Low price point: $28 Aqua Short Multi Faux Pearl and Ribbon Necklace

Watches:• High price point: $425 Burberry Women's Rose Dial Bracelet Watch• Low price point: $55 Adidas "Response Light" Digital Watch

Earrings• High price point: $395 Me&Ro Full Lotus Drop Earrings• Low price point : $30 Aqua Hoop Earrings

Bracelets• High price point: $475 Robert Lee Morris for Elizabeth and James

Feather Cuff • Low price point: $25 Aqua Chain and Faux Pearl Bracelets, Set of 7

Rings• High price point: $225 Judith Jack "Bohemian Rhapsody" Stone Ring• Low price point: $45 House of Harlow Sunburst Leather Cocktail Ring

Neimans Vs. Bloomingdales

Elizabeth and James Onyx Snake Cameo Stud

Earrings

Bloomingdales: $225.00

Neimans: $395

Neiman Marcus Additionsfrom Barney’s

ZoeAgate bangle

$7,700

Judy HudsonMorpho Butterfly Pendant

$1,750

Neiman Marcus Additionsfrom Sak’s

Alexander McQueen Skull Cocktail Ring/Silvertone

$310

Alexander McQueen

Skull Ring$250

Merchandising Plan

• U.S. jewelry retail industry has about 30,000 specialty stores • Combined annual revenue of about $25 billion dollars• Sales are determined on customer income.• In tern, profitability depends on advertisement, marketing, and merchandising• Jewelry’s gross margins are exceptionally high, often marked up as high as 50%• Mass merchants then cut price and take market share

http://www.hoovers.com/jewelry-retail/--ID__66--/free-ind-fr-profile-basic.xhtml

Industry Report

Industry Report: Neiman Marcus

*Designer & Precious Jewelry= 11%

• October Jewelry Sales Estimates Conflict with Reported Results– “Conflicting sales reports make forecasting fourth quarter sales

even more difficult for jewelry retailers.  But, volatile consumer spending patterns, large competitors promotional plans, and emerging macroeconomic forces may play a much bigger role in the final outcome than actual sales in August, September, or October” -Gerson Lehrman Group

– “Luxury retailers reported mixed results. Neiman Marcus reported a 6% decline” -GLG

• Retailers’ Sales for September Only Reach 2005 Level– “In an interview, Mr. McNamara explained that in a sector like

jewelry, for instance, sales increased 1.2 percent in September from September 2008. But the dollar volume of sales “is still about 5 percent lower than we were in September 2007 and about 10 percent lower than the sector was in September 2006” –NY Times

• U.S. Retailers Report Weak Jewelry Sales for Sept– “Neiman Marcus' sales fell 14.8 percent to $354 million and

comparable store sales were down by 16.9 percent. The company noted that its performance was weakest in the home and jewelry categories” –diamond.net

Industry Report: Neiman’s Jewelry Report’s

Neiman Marcus Advertising

Neiman’s Christmas Book

“We want you to be completely happy with your order.

If for any reason you are not satisfied, we will gladly accept your timely return

of unworn, unwashed, or defective merchandise.

Returned merchandise should include the vendor packaging and tags and be in the

same condition as when it was delivered to you.

Used merchandise cannot be returned unless defective. Return Within Amount of

Credit

Any merchandise purchased at a Neiman Marcus store should be returned

to a Neiman Marcus store”

“All precious jewelry and Cartier watches must be returned within 60 days from the date of

receipt and must include all original documentation”

Cele

bri

ty

En

dors

em

en

ts

Star-powered media attention

A-List Credibility

&

Customized Advertising Plan

for Neiman Marcus

Interview with Kelly Smitten:

Owner of Elite Yacht Charters

(Beverly Hills, CA)

& loyal Neiman

Marcus Customer

AR: What draws you to Neiman

Marcus and what advantages does

the jewelry department have

compared to other stores you have

shopped at?

KS: The customer service is incredible. I have developed a relationship with not only the associates but with the store itself. I go to Neiman’s and I know what to expect…quality.

Again, the service. The layout is neat and precise, I am helped whenever I approach the counter and I can find something for everyone in the Jewelry department. A business gift, a birthday, and mothers day day can all be taken care of all in the same display case!You can never go wrong with Neiman’s. I anticipate The Book every year and I always get update emails from associates letting me know about new jewelry that I may be interested in which is extremely helpful considering I have to travel so much for my job and rarely find time to browse the store anymore.

Fine Jewelry For:

Neiman Marcus

Buyer: Alia Rafiq