The Balt company, set up by brothers Leszek and Adam Dulinski, specializes in a production of functional objects and silver and gold jewellery decorated with Baltic amber. The company is a member of the Gdansk Amber Centre and has a recommendation of the International Amber Association. Leszek Dulinski, a co-owner of Balt, tells us about a difficult situation on the global amber market and the prospects for the nearest future.
The beginning of the year was quite difficult for the trade and there was a lot of talking about a necessity to improve a product’s design and quality in order to be more competitive. However, only few companies introduced new collections. Why?
New designs and a further quality improvement should be borne in mind all the time, not only in a situation of a danger and a decrease in sale of previous assortment – then it is usually too late for that. But I feel bothered by another question: will the market be able to absorb new designs in a difficult situation? In my opinion no. Because if a given buyer has assigned a specific amount of money for purchases, it is only a question of buying from this company and not the other one, but having the same limited financial means. It must be remembered that both manufacture and introduction of new products on the market are equivalent to additional costs for the company.
Before the Ambermart fair the situation in the amber trade was quite tense, there were a lot of reports on closing down the companies and dismissing employees. When did a deterioration in the trade’s condition become noticeable?
Actually the situtation started to deteriorate after this year’s Amberif fair. Admittedly we did expect that it would be a worse year because of strengthening zloty, but we did not think that it would get worse to such an extent. The producers were forced to increase the prices so that the sale would be profitable. Some of them tried to exchange USD for euro but this try was not accepted by wholesale buyers, previously accounting for in USD. A slump in the American market has turned out to be a real catastrophy – in this way we have lost approximately 80% orders. Profitability is decreasing, a price of the material is dramatically increasing – it seems that we have to bounce back and only then the situation can improve.
Is this a reason why Balt decided not to take part in the Ambermart fair?
We had taken part in Ambermart for the previous 3 years, this year we have decided against our presence in this event. Traditionally just before the fair – Amberif or Ambermart – the clients come a few days earlier and make their first purchases. It has been no different this year. Having assumed that we decided to take a risk, knowing we would not lose too much in this way.
The Ambermart’s exhibitors were appalled by a presence of representatives of the companies which did not have their own stands and tried to “take over” the clients. This charge was also levelled against Balt. How can you explain it?
And why should I do it? All the potential clients came to us before the fair anyway.
Balt will be also absent at the Gold Silver Time fair in Warsaw. Why?
Because of a lack of results. This fair is not good for amber – as its name indicates this is a good event for the companies offering gold, silver and watches. It is visited by the clients mostly from Poland, a bit different from those attending Amberif, who do not constitute our target group. Indeed, it would be possible to conquer Warsaw with amber, yet not with such assortment like ours but with the one better adapted to the needs of a gallery.
Moreover, it is a common knowledge that those who want to buy amber do not go to Warsaw but to Gdansk. And even they do not have to go anywhere as the producers’ representatives will come to them. I have fond memories of the 90’s when the shops kept asking for a contact and a new, big delivery…
But isn’t it worth fighting for the Polish market, especially now, when our zloty is strong and many previous exporters start to look for buyers from Poland in order to partially make up for their losses in export?
It would be a good course of action for sure, but only if the Polish women bought amber jewellery. Meanwhile they are not able to consume everything what is already present on this market. There is no enough awareness too – the Polish women extremely eagerly buy plastic jewellery offered in chain stores like H&M, Reserved or Zara, convinced that it is pretty and fashionable. Unfortunately, women’s magazines confirm them in their choices, promoting Chinese junk.
Our company is present on the Polish market by means of a co-operation with big wholesale buyers.
What scenario of a development of the market situtation can we expect in your opinion?
Truly this question should be presented to a fortune-teller (laugh). The optimists claim that the crisis will last till the end of the year, the pessimists think we will have to struggle with it for about 3 years.
I perceive the situation development in a rather pessimistic way and in my opinion we should expect an even bigger crisis. If the market were ready for the products, there would be some hope. But now the market is rather closing up. Moreover, the offer of consumer goods addressed to women is too rich and too tempting. Unfortunately, jewellery is placed at the end of consumer needs. However, I can see great chances for development in the sector of luxury jewellery.
Amber is rather without a chance to be a luxury product.
Absolutely! Luxury is reflected by a product’s price, its uniqueness and the clients’ awareness. Striped flint is present only in Poland and its output is even smaller that in the case of diamonds, and this fact does not make it a luxury product yet.
There is a need for promotion as well.
Individual companies cannot afford a large-scale promotional campaign of amber. At least a few large companies would have to band together and only they would have been able to take up some shared activities in this direction. In its time the Gdansk Amber Centre could undertake such task, but this chance was squandered. However, it must be admitted that the idea of founding the Gdansk Amber Centre was good, but as usual everything foundered from a human mentality – for some people Manhattan meant only additional profits. It was conceived as a stately place where – because of a certain specialization of individual companies – we were also to exchange clients. A potential was huge: a shared marketing concept, shared advertisements and trips to the fairs. It is a pity it did not work out.
