A Gem of an Idea!

by Emily Lambert

Many years ago, it was during a fateful fishing expedition that Maui Divers made a discovery, which changed the future of their company: Hawaiian black coral. Shortly thereafter, in 1959, the Maui Divers turned luck into profit and established Maui Divers Jewelry, a company that designed, manufactured and sold Hawaiian black coral jewelry.

Today, in addition to manufacturing and selling deep sea precious black coral jewelry, the company also manufactures and sells jewelry made with Tahitian black pearls, South Sea pearls, freshwater pearls, Australian opals and diamonds, as well as a variety of other gemstones.

Pick-A-Pearl, a kiosk concept, has seen the fastest rate of growth in the past decade, says Doug Kreul, vice-president of merchandising and advertising. It unveiled its 19th kiosk location last December.

In addition to Pick-A-Pearl, Maui Divers has three other concepts, Maui Divers Jewelry, Island Pearls, and most recently, Maui Divers Jewelry Luxury Collection, all together totaling 60 locations spread throughout the major Hawaiian Islands, as well as one location in San Francisco, CA. Included in this total are Maui Divers Jewelry and Pick-A-Pearl store-within-a-store concessions in seven Hilo Hattie stores throughout Hawaii. This is a specialty store offering Hawaiian souvenirs and attire.

"Different concepts cater to different price points," says Kreul. Maui Divers Jewelry, with 34 locations, is a full line jewelry store that carries charms, Hawaiian coral, pearls, diamonds and opals, in prices ranging from $100-$20,000, he says.

Island Pearls, which opened in 1999 and has five locations, is a little more upscale. While Island Pearls carries an assortment of jewelry categories, the main focus is on pearls. Prices range between $150-$50,000.

Maui Divers Jewelry Luxury Collection, with their first location in the Royal Hawaiian Hotel in Waikiki as of March 2009, caters to an upscale clientele with prices ranging from $250-$75,000.

Along with company-owned stores, wholesaling has been a key ingredient to Maui Divers' success. "We grew predominantly as a wholesaler," says Kreul, selling to not only independent retailers throughout the island, but major department stores, such as Macy's.

The company has also grown through creative marketing initiatives that promote consumer awareness. What better way for a tourist to learn about the Hawaiian state gemstone (precious black coral) than a factory tour? "We bus people from main shopping centers into our Design Center," says Kreul. Over three million people have visited the Design Center to date.

During the 20-minute tour, that is free of charge, customers watch a video that includes the discovery of precious black coral, as well as "learn the extensive care we have taken over the years to preserve the balance of nature and harvest less than the pace of coral growth," says Kreul. After the video, customers watch as jewelry is created, starting with pouring the gold into castings, and finishing in the Pearl Room, where loose pearls are matched to settings and given a high polish.

Kiosks fuel Pick-A-Pearl expansion

The Pick-A-Pearl concept came to fruition in 1990 with the idea of having customers create their own jewelry. Customers pick an oyster sitting in salt water, watch as it is cracked open, pick their pearl out, pick their setting, including rings, earrings and pendants, and watch as their chosen piece comes to life.

Pearls come in a variety of colors: white/cream, pink/peach or blackish, and are set in one of 300 different designs in 14K and 10K gold. A popular design is "Plumeria," resembling a delicate flower with a pearl as centerpiece. Price points range from $45-$1,000. "Pick-A-Pearl is a fun adventure in creating your own jewelry," says Kreul. Tourists love both the experience, and the Hawaiian souvenir they bring home.

For a number of reasons, kiosks have been an integral part of this concept's growth, says Kreul. "It's easy to expand from an expense standpoint with a kiosk. You can pick prime locations, and if they're unsuccessful, it is easier to cut our losses." Not to mention, kiosks have great visibility. And lastly, "You can open more kiosks than you can full line jewelry stores before you hit a saturation point in an area. At the International Market Place [an open air market in the heart of Waikiki], we have two in-line stores and five kiosks. All five kiosks are profitable," he says.

As for future kiosk opportunities with other specialty retailers interested in Pick-A-Pearl start-up programs, plans are not yet on the table. Right now, Pick-A-Pearl is riding a wave of its own. "It's an all-around positive experience. The price points are moderate enough to make it an easy impulse purchase, the customers and sales people have fun and the customers leave with a great value and a piece of jewelry they helped custom make," says Kreul. With kiosks set on a tropical island with hordes of tourists, it looks like Pick-A-Pearl has picked a winner.