ARTICLES

LOVE'S LABORS - An Inside Look at J B Star

By Janet Volkman

JB Star (Jewels by Star) has been designing, manufacturing, and selling high-end diamond and precious gemstone jewelry for 22 years, under the guidance and artistry of owner and designer Rafael Fouzailoff. For both retailers and consumers, this high-end jewelry is a special niche with somewhat different requirements from the creating and selling of other fine jewelry. Rafael, 52, along with his father, uncles, and brother, has developed and perfected a blueprint for making it work.

The first asset the company has is not easy to imitate—longevity. Rafael literally grew up with diamonds. His father has been in the diamond business in Israel since 1946. So, behind him, Rafael has over a half century of expertise, for which there is simply no substitute. As a young boy, he was already "in the industry"—bookkeeping, sorting, pricing, and, while in college, selling loose diamonds. While earning his MBA in international marketing and finance at NYU in 1981, he already knew what he wanted to do. He sympathized with other students struggling with career choices, and with those who, he knew, would always be taking orders from someone else. He, on the other hand, would have the luxury of being his own boss.

Rafael set up shop in New York City, shortly thereafter, and presides today over a company that is one of the most prestigious and successful of its type, serving close to 250 retailers nationwide. He immediately added jewelry to what had previously been just a loose-diamond business, a point of personal pride. "It was a beautiful, natural extension of the (diamond) business," explains Rafael, "creating product that is more of a statement, seeing the end user, and selling something that has your signature on it."

His "signature" is well known. Using only platinum and 18-karat gold, his jewelry is stunning. The quality of the stones and the care given to the craftsmanship, which is always done by hand, shows in every JB Star creation. They are true statement pieces. The diamonds are always G, VS. or better, rubies are from Myanmar (Burma), emeralds from Zambia, and sapphires from Ceylon.

The stone-cutting for JB Star is still done in Israel, by family-owned sight holder, Paz, and distributed by JB Star Diamonds. Once rough diamonds are obtained, every other stage of making and selling the jewelry is a family affair. Rafael describes his company, which designs and manufactures all in the same ninth-floor facility on Fifth Avenue in New York City, as "a true business that completes the circle."

Rafael's designs are part of the company's formula for success. In his own words, "High price cannot be trapped into short-term fashion," Consequently, his designs over the years have evolved gently and subtly, retaining distinction "without ever being passé," Rafael explains, "I like to stay ahead of the curve but not go too far forward." In this way, the designs remain fresh, yet enduring and timeless—the very definition of what is often called "heirloom jewelry."

Rafael is certainly not averse to high-end jewelry trends or trendsetting. Currently, the company is doing very well with natural fancy-yellow diamonds along with the marquis and baguette diamonds for which it is already well known. "We don't look commercial or mass-produced," says Rafael. "Our Fancy-yellow diamonds are distinctive, not trendy. Our designs are difficult to make, which prevents knock-offs and brings perceived value to the customer who knows about jewelry." The company is also well respected for its custom and one-of-a-kind work.

JB Star began with most of its business in the bridal market. Rafael was well aware that this is where one can begin a lifelong relationship with a young fine jewelry consumer. His engagement rings and bands consequently have an energetic, youthful feel. Today, bridal is still 20-25 percent of the business and growing, a mainstay of JB Star's product, which now includes many other lines as well. JB Star's lines include the Canary collection, the Embrace collection, and Realize the Fantasy. Bridal customers come back to upgrade for special anniversaries and move to bracelets, necklaces, and precious color to celebrate other milestones.

By far, the strongest reason for the company's success, according to Rafael, is its philosophy, which is simply stated but not simply realized: "Retailers are our most important asset." These are not just empty words. Rafael explains, "Success is measured by retailer satisfaction, not by how much money is made. It is incumbent upon me to provide a dedicated amount of service, design, quality assurance, and a flawless warranty." Many retail clients have been with JB Star for years-some for more than two decades. "It represents a tremendous amount of loyalty," says Rafael.

One part of the company's commitment to retailers is JB Star's extensive Website. Designed expressly for retailers, it shows hundreds of pieces of JB Star's jewelry, arranged by category, such as bands, bracelets, color, etc. Each item is pictured, and each image can be enlarged for more detail.

According to Rafael, the Web site is "the most comprehensive in the business." It is a business-to-business site for their [retailers'] reference. "The key to the Web site is the referral feature," he says. The office gets roughly 20 calls a day off the site, calls in which retailers are very specific about what they want and simply read off a style number. This kind of direct-response vehicle, says Rafael, is "very cost-effective for a line like ours."

The Website is, of course, an adjunct to JB Star's dedicated sales force, another area of strength for the company. Salespeople are charged with developing a true partnership with the retailer, getting to know store personnel, setting up the company's elegant rosewood displays, and running in-store events and promotions. According to Rafael, many of the sales executives have been with the company 15 years or more. He attributes this unusual allegiance to two factors: the diversity of the company's line, which has something for everyone; and the fairness with which they are treated. "We treat them with respect," says Rafael. "They have a tremendous amount of independence to make their own decisions and that is very empowering."

Salespeople meet four times a year to see new styles and discuss the nuances of each geographical region in the country. "It is a lucrative career choice for them," says Rafael, "with good security and a sense of camaraderie." He also supports their work in the field with a broad advertising program in both consumer and trade magazines including the new Realize the Fantasy campaign.

It might help, too, that Rafael himself is a committed optimist, who strongly believes in his business and his way of doing business. For example, he's not worried about diamond branding, the latest trend in diamond sales. First of all, he says, "Branding can be a waste of money. A cut can be branded, but you can't stop others from copying it because the law is difficult and expensive to enforce." In fact, his father and uncle actually invented the princess cut back in the 1970s.

Nor is he concerned about the current economic upheaval. In fact, he says, it might be working in his favor. The erratic behavior of the stock market is forcing many people to invest in durables instead, such as real estate or precious gems. "The economy is working," Rafael states. "It's the stock market that's failing the U.S. investor. But consumers are still spending. And hard goods are all the more attractive for stability."

Of course JB Star suffered after 9/11, but, according to Rafael, the company "had the strongest December [it} ever had." Even societal factors are helping him out. As men marry later, they are more apt to buy a high-end, larger diamond ring. In his view, companies who sell stones or jewelry as a commodity are more vulnerable to economic forces. But a "philosophy-based company," says Rafael, is less so because of its dependence on quality, reliability, and relationships.

JB Star, he says, has made its reputation by getting the details right: by making sure that even the smallest component of a piece of jewelry is carefully inspected; his team analyzes every piece using the latest technology, including lasers. Even the warranty is constantly re-examined. "Ultimately the retailers' problem must be addressed," he says. "There is not just one hard and fast policy; it's the relationship between consumer and retailer that is the driving force in such decisions."

"As a company, we are very fortunate," says Rafael. "JB Star is a very profitable company because, for me and all who work here, it is a 'labor of love'".