FURA Gems launches marketing council to grow color stone market

By Deborah A. Yonick

FURA Gems, the Dubai-based precious gemstone producer, has a plan and $2 million to undertake an ambitious marketing program for emeralds, rubies, and sapphires that it’s banking will benefit the color stone industry at large.

Investments in Major Mines

FURA operates the famed 400-year-old Coscuez mine in Colombia, which produces a wide range of emerald qualities and sizes; a significant ruby claim in Montepuez, Mozambique, that is reported to supply half of the world’s gem quality ruby; and Capricorn and Great Northern licenses, Australia’s largest producer of sapphires (blue, green, yellow, and a range of hues in between, as well as multi-color and black).

For 2021, FURA is projecting 300,000 carats of Colombian emeralds, 6 million carats of Mozambican rubies, and 5.5 million carats of Australian sapphires. The company plans to ramp up supplies in 2022 to produce 500,000 carats of emeralds, 8 million carats of rubies, and 10 million carats of sapphires.

“We’re creating the future of gemstones, opening the closed world of precious gems for the first time,” says Dev Shetty, president and CEO of FURA. “We are funding trade support of over $2 million in just the first-year launch of the FMC.”

Rupak Sen, vice president of marketing and sales, says that while it may seem unusual for a color gemstone mining company to support their rough all the way to retail, helping the market grow in a healthy and sustainable manner has always been the company’s goal.

Consumers Love Color

Demand is high for color gemstones among consumers, and in all jewelry categories, including fashion, bridal, men’s, self-purchase, and youth jewelry, reports Liz Chatelain, president of MVI Marketing and of the FMC.

MVI conducted a consumer color gemstone survey last fall of more than 1,000 U.S. jewelry consumers. The survey saw an overwhelming 93 percent of those jewelry consumers say they love emeralds, rubies, and sapphires. In fact, 46 percent of those surveyed have purchased sapphires and 41 percent rubies and emeralds in the recent past, with nearly 70 percent very or somewhat likely to buy these precious gems in the next two years.

In addition, the study revealed that consumers not only want to buy traditional precious gemstone jewelry, they also are interested in non-traditional colors. Nearly 70 percent of consumers embrace fancy sapphire, with 70 percent indicating they love or like black sapphires, and 78 percent love/like multi-color sapphires, which FURA is calling “parti” sapphires.

But MVI’s research, in a companion trade survey of about 50 jewelers (manufacturers and retailers), found disconnects not only B2C, but also B2B.

“Jewelry manufacturers told us they think sales associates do not know how to sell color, and retailers say that manufacturers do not advertise color, offer co-op support, or provide enough information,” says Chatelain.

While more than 60 percent of the consumers surveyed by MVI want to see more color gemstone jewelry across all categories in jewelry stores, and most jewelers report higher margins for color stones than diamonds, Chatelain says color stones remain only 9 percent ($2.4 billion) of U.S. specialty jeweler sales, which total $27 billion. Diamonds currently represent 54 percent ($14.6 billion) and watches/gold/pearls/repairs account for 36 percent ($9.7 billion).

Investing in Color

To address disconnects in the supply chain, FURA is building a cohesive industry growth plan through FMC with the aim to increase the gemstone industry’s market share, explains Darlene Smith, FMC program manager.

Among the key takeaways from the consumer study is that jewelry customers want transparency. In fact, 42 percent find it very important to know country of origin for color gemstones, and 49 percent find it very important to know that workers at a mine or cutting factory are treated well.

The objective of FMC, says Smith, is to unite the supply chain with multi-label marketing stories and brands; raise “responsibly mined” to new levels; invest in transparency and chain of custody sourcing; develop quality standards, color communications, and education; and invest in marketing support and sales training for sell-through retail. There will be multiple levels of support in training and marketing assets for both B2B and B2C members.

“The goal is to help everyone in the supply chain do better,” says Smith, who says she has been impressed with FURA’s investment not only in its operations and workers—including elevated healthy and safety measures and eliminating gender-biased job descriptions—but also in the communities where they operate.

“Corporate social responsibility is at the heart of its business,” she says. “FURA believes in joining together with local villages and authorities to create a unified community where we can all prosper.”

That translates into protecting and preserving the local landscape, as well as investing in education, communication, and infrastructure in the communities around the mines. Among its many initiatives are educational opportunities for school children and adults in Coscuez, Colombia; boosting the technical infrastructure of organizations in Central Queensland, Australia; and supporting local tourism, aiding recreational mining, and assisting in gemstone training in Mozambique.

FMC’s initial focus will be in three markets: North America, India, and Australia. Retailers, manufacturers, and dealers can apply to become members of FMC. Membership support includes advertising funds, sales training, and layers of promotional assets for all levels of the supply chain, as well as consulting support from MVI Marketing. Companies interested in learning more can stop by the FURA Gems booth (#15039) at the JCK Las Vegas show in late August.