Look Book

58 www.thejewelrybook.com S A F E J E W E L R Y R E N T A L J E W E L R S U N B L O C K E D The jewelry business, like virtually every other industry, must exhibit the ability to change with the times and evolve to include itself in our ever-changing world. PricewaterhouseCoopers predicts that the sharing econ- omy will grow to a $335 billion industry by 2025. In 2013, this industry was valued at $15 billion. So it is no surprise that the rental of jewelry is gaining popularity with jewelers and their customers alike. Such operations have driven Jewelers unBLOCKed™ to provide insurance solutions for those in the jewelry industry who are moving full-steam-ahead in the shared economy model. Jewelers in the United States and abroad are faced with competing in the evolving shared economy that is taking many different businesses by storm. The peer-to- peer concept of a sharing economy is changing how we consume, and how products and services are delivered. Airbnb was founded 8 years ago, and now the shared- room business has grown such that Airbnb dwarfs the largest hotel chain in number of rooms available. Uber has transformed employment in this country, in a very short time span, by providing people with a via- ble, fl exible opportunity to earn extra income part-time using their personal vehicle down-time productively. According to Robin Smith, CEO of WeGoLook, in 2013 alone it was estimated that revenue passing through the sharing economy and into people's wallets was more than $3.5 billion. The sharing economy makes people happy by making their lives affordable. For instance, 86% of respondents from a recent PwC survey agree that the sharing economy makes their lives more affordable. We see jewelry rentals handled both in-store and also on-line. Some jewelers limit rental offerings to their customers with whom they have a long time relation- ship. Others are happy to rent to even their more casual customers. Regardless of the type of client, jewelers now have another option other than a retail sale, or a "loaner" to a prolifi c customer. The logistics of implementation of the shared / rental concept may vary widely. Certainly more high-end product will be controlled differently than the more modestly valued pieces. However, the basic characteris- tics will be the same, with controls in place being some- what like the following: • A contractual agreement should be obtained from legal counsel ensuring that the responsibilities of the jeweler and the customer are clearly spelled out for the terms and conditions of the transaction • The jewelry should be inspected and assessed by a gemologist before leaving the jeweler, and also upon its return to the jeweler from the rental customer • Insurance coverage should be placed to protect the jewelry while being shipped to and from the rental customer • Coverage should also be placed to cover the jewelry while in the customer's possession • The transaction can be effected either in-store or on-line • Work fl ow protocols should be implemented to ensure return of rented goods by the customer According to Time magazine, 44% of U.S. adults have participated in the sharing economy in some fash- ion. The same study found that 22% of Americans have sold services in the sharing economy, and the vast ma- jority of those who offered services in the sharing econ- omy described their experience as a positive one. The sharing economy includes the jewelry industry, and Jewelers unBLOCKed™ is able to assist our client with the unique insurance coverages needed to protect such new exposures. About Jewelers unBLOCKed™ Jewelers unBLOCKed™, offered by CED 1976 LLC, is the national exclusive Managing General Underwriter for multina- tional A++ rated insurance companies in the jewelers block and luxury space. JUB provides proprietary customized insurance cov- erage to meet the challenges of the jewelry industry. Solutions are developed for retailers, designers, wholesalers, manufacturers and refi ners. Our services include the underwriting and issuance of industry leading jewelers block policies. In addition Jewelers unBLOCKed™ also provides bespoke insurance programs for the private client and collector. For more information, please visit www. jewelers-unblocked.com. Safe Jewelry Rental in the New Shared Economy BY PATRICIA K. LOW, PRESIDENT/CEO OF JEWELERS UNBLOCKED ™

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