From the Knoxville News comes another sign that many segments of the jewelry industry are struggling: Jewelry Television has canceled their new headquarters. The jewelry shopping channel and website was planning a $20 million new headquarters but the company has decided they are not in a position to move forward with the project. In 2005, the Knox County Commission had approved a 20-year tax break for the Knoxville-based cable channel based on the plans for a 300,000-square-foot headquarters at the Pellissippi Corporate Center. Unfortunately the economic picture in 2005 was a bit different. The company plans to remain in the area and instead will spend around $1.2 million to relocate its production studios and buying operations from its Kingston Pike headquarters to the Parkside Drive location which is the hope of the company's internet division, shipping and delivery. The company also eliminated 200 jobs back in May.
Part of this is the economy but I think that part of it is also that the jewelry shopping channels have been slow to adapt to the changing needs of the consumer who wants to know more about the product. They have the perfect forum for doing much more educating and informing and could capture a whole new crowd of people interested in learning more about jewelry. They could also be powerful voices for reform and change in the industry. Instead they continue aiming the same basic sales pitches at the same market which is diminishing due to economic and demographic factors.
2 comments:
Interesting observations about the new corporate HQ building. As a current JTV employee, I'm going to remain anonymous. Your observation isn't entirely inaccurate, but the economy is only part of the reason. It wasn't going to happen in the near-term anyway, simply because A) the cost is enormous, and B) there are so many changes regarding structure that they really don't know what kind of building they NEED or how big it should be...it just doesn't make any sense to build it until there is a better understanding of future space needs.
Also, you are right about the educational aspects. I would just add that JTV customers can go to JTV.com and learn a LOT about gemstones, jewelry, and jewelry making there. We currently have a section called the "Learning Library" which is good, but is about to be re-vamped and re-launched; and the new Learning Library is going to be a phenomonal, FREE educational tool for JTV.com.
I love JTV! When I met my husband I watched it for hours on end. It's amazing he wanted to marry me.
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