LINK TO ARTICLE AT NJN.COMBy Catherine Dayrit
Las Vegas - When designers and high-end retailers gathered poolside at the Wynn Las Vegas to hear pop singer Seal croon his famous line, "We're never gonna survive... unless we get a little crazy," the lyrics weren't the only entreaties aimed at the Couture show crowd.
Signs from
Palladium Alliance International's (PAI) new branding campaign lined the stairways, surrounded the pool and flashed on a giant outdoor screen, declaring "Palladium is Now," "White, Light, Natural, Now" and "Do You Have the Metal?". It was all part of the first phase of branding for palladium, a precious member of the platinum metals group that, amid higher metals prices, has been embraced by a host of designers.
PAI, which formed just over two years ago to establish palladium as a distinctive metal, hired market research firm McKinsey to do extensive consumer research and chose
DJS Advertising of Miami to create and execute the campaign.
"We know what the consumer reaction is going to be with the terms 'white,' 'light,' 'natural' and 'now' - all of that rich information about the DNA of the product," DJS President Deborah Scarpa says of the research. The result has been to-the-point messaging that has been hitting home.
"The retailer and manufacturer response was very tremendous," PAI Chairman John Stark says.
Scarpa says unique visitors to the PAI Web site multiplied from several thousand to 27,000 during and right after the launch.
Scott Kay began spreading the word on palladium three years ago when he led a JCK Show seminar on the topic. The brand's palladium bridal business in particular is doing phenomenally, he says.
"It's not an alternative, it's an opportunity," Kay says. "When you have something that's natural and is viewed as a precious resource, that's a great opportunity. You're really going to see it carve its way into the marketplace and take a large share from gold."
Designer Barry Kronen, new to palladium, has produced two palladium pieces so far and hopes PAI's messaging will resonate with the brand's customers.
"Direct is good, especially when you're working with consumers," Allison Pellegrino, Barry Kronen director of marketing and advertising, says of the campaign. "A lot of the fluff gets lots in translation anyway, so here there's nothing missing."
At about half the cost of gold, price often comes up as a reason a designer is test-driving the metal. But, PAI says, as with other jewelry products, palladium shouldn't be sold on price or compared to other metals.
"That's the point that we're trying to establish," Stark says. "It's not a metal that's in competition with platinum, or with white gold. Its position in the marketplace is as a luxury white metal."
Among its attributes is its purity and naturalness, Scarpa says, along with the fact that it is white and durable, yet lightweight.
"The main thing is that it's new and it's now," she says. "This is the metal for the 21st century."
PAI has already made an extensive foray into jewelry trade shows, and plans are in the works to hold a press conference and a national tour in conjunction with Conde Nast publications this fall to reach more retailers. In late August, PAI is aiming to launch a PAI membership program, allowing retailers exclusive access to marketing materials. Online initiatives will also be key to the campaign.
On the consumer level, ads that tag manufacturers and play up palladium's attributes are scheduled to run in luxury service magazines.
While the word about palladium is currently diffusing through the industry, insiders say the next step lies at the retail level.
"It's not only about advertising, it's education," says Patrick Hoffman, vice president of Ulysse Nardin, which at the moment produces four watch models in palladium. "It is up to us to educate the people in the stores about how to sell palladium."
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