Lawrence Graff is now 81 years, with estimated worth around $4.8 billion USDTHEMANWITHTHEDIAMONDTOUCH
ARTICLE|2NOVEMBER,200712:05AM|BYCLAIREADLERClaireAdlerisaLondon-basedluxurygoodsjournalist.
LaurenceGraffispossiblythemostimportantjewellerintheworldtoday.However,asheengagesinasignificantexpansionprogrammeforthebusiness,thesizeofhisfamilyispartofthechallenge,asClaireAdlerdiscovers…
Securingaface-to-faceinterviewwithLaurenceGraffisnoeasytask.WithhomesinLondon,NewYork,CapFerratinthesouthofFrance,Geneva,aFeadshipyacht,aGlobalExpressSRSplane,awineryandvineyardinStellenbosch–theNapaValleyofSouthAfrica–andawell-knownpreferenceforavoidingthepress,Graffissomethingofaninternationalmanofmystery.Thenagain,morethanalmosteveryotherfinejewellerinthebusiness,hesuccessfullypilesheapsofmystiqueontotheeye-poppingdiamondshesells.
Tojewelleryindustryinsiders,hisisahouseholdname.Worthanestimated$2.5billion,Graff,69,hasprobablyhandledmoreimportantdiamondsthananyindividualthiscentury.TheSultanandQueenofBrunei,OprahWinfrey,ElizabethTaylorandDavidandVictoriaBeckhamcountamongGraff'slongstandingclients.
TheGraffempire,whichlastyearpostedaturnoverof$400million,issplitbetweenGraffDiamondsInternational(GDI)andSafdico.GDIincludesallcorporateoffices,jewelleryworkshopsandretailstoresworldwide.Thecompanyhas27Graffstoresglobally,fromLondonandTokyotoKuwaitandLasVegas.Thereisevenastoreonboardtheluxuryfivestarcruiseship,theResidensea.
Safdicoisaworld-classdiamondcompanywithofficesinJohannesburg,NewYork,Geneva,MauritiusandAntwerp.Safdico'sworldwidediamondmarketinganddistributionnetworkspecialisesintop-endextraordinarydiamonds,whichincludetheQueenofAfrica102caratintenseyellowcushiondiamondandtheSafia90.97caratDFlawlessroundbrilliant.Inareassuringexampleofhowthediamondindustryishelpingthelocaleconomyandgivingemployeesaqualityoflifewhichwouldn'thavebeenavailabletothem,Safdicoemployssixdeafpeoplewhoarebeingtrainedinfancypolishing,whilelecturerscomeandspeaktostaffaboutHIVandprevention.
Laurence'sbrother,Raymond,isproductiondirector,whilehisson,Francois,43,ismanagingdirector.Francoisjoinedthecompanyin1986,aged22.LaurencehasbeenmarriedtoFrancois'Frenchmotherfor45yearsandthecouplehavetwootherchildrenwhohavechosennottojointhefamilybusiness–Stephaneisanartistandwriter,whileKistelleownsridingstables.Laurence'snephewandRaymond'sson,Elliot,managesthedesign,diamondbuyingandmanufacturingofGraffjewellery.Rawambition
WhentheimmaculatelydressedGraffenterstheairyboardroom,whichissurroundedbyvastpaintingsandaflatscreenswitchedtoBloombergTV,itisimpossibletoforgetthelegendaryjourneyhehasmadetogethere.HespenthisfirstsevenyearsinasingleroomwithhisJewishRomanianmotheronCommercialRoadinLondon'simpoverishedEastEnd.Aged14,hismarksatschoolweresopoor,hisfamilyencouragedhimtofindatrade.Anewly-releasedcoffeetablebookaboutGraffdocumentshow,aged15,hewassackedafterthreemonthsathisfirstapprenticeshipatajewellernamedSchindlerinLondon'sHattonGarden,wherehisdutiesincludedgoingouttobuysandwichesfortheworkers.ButGraff'sunstoppablepassionfordiamondscombinedwithrawambitionandatalentforbuildingclientrelationshipsbroughthimimmensesuccess,evenatasurprisinglyyoungage.
"IwasveryobservantasayoungboygrowingupintheEastEndofLondonandwantedtolearneverything,"remembersGraff."Iwasbroughtupfromanearlyagewiththevaluesofhonestyandrespectandthesehavestayedwithmeallmylife.IwasmakingjewellerywhenIwas15andwhenIsawmyfirstdiamondthissetoffapassioninmethathastakenmeallthewaytobeingknownasoneoftheworld'sleadingdiamantaires.Eachstonehasapersonality.There'ssomuchgoingoninsuchasmallgem.Theprocessofcuttingandpolishingastonethatcomesfromthegroundisthesameirrespectiveofsize."At17,makingStarsofDavidinhisfreetimeatabenchinhisparent'shousetoselltofriends,LaurenceGraffcouldnothaveimaginedthathewouldopenover20storesgloballyandreceivefourQueen'sAwardsforEnterprise.Duringhis20s,GrafftravelledtotheFarEast,holdingbi-monthlyexhibitionsatSingapore'sdepartmentstore,Robinsons,forgingrelationshipswithMalaysian,IndianandChineseclientswhohaveremainedloyalclientseversince.
In1974GraffopenedhisfirstmajorretailstoreinKnightsbridgewherehewelcomedclientsfromallovertheworld."TheSultanofBruneicameintothestoreandsodideverymemberoftheSaudiArabianroyalfamilyandotherMiddleEasternfamilies,"remembersGraff,whowasalreadyapersonalfriendoftheSultanofBrunei'sbrother,PrinceSufri.
GraffroutinelyhelpedhisnewlywealthyArabclientsfindtheirwayinLondon,connectingthemwithdoctorsanddrivers.WhenSaudiprincessesreturnedfromtheirshoppingtrips,theywouldchangeintotheirnewclothesinGraff'soffice.Oneunforgettableday,SaudiPrinceTurkibinAbdulAzizwalkedinunannouncedandboughtouttheentireshopincludinga14caratdiamond.
In1987themostsuccessfuljewelleryauctioneverwasheldinGenevaforthejewelsbelongingtoWallisSimpson,DuchessofWindsor.GraffboughttheWindsorYellows,apairoffancyyellowpear-shapeddiamondsof51.01and40.22caratsrespectively.Graffalsoboughtthemosthistoricandsentimentalpieceofall–theDuchessofWindsor's19caratemeraldengagementring."ItisoneofthefinestemeraldsIhaveeverseen,'hewasquotedassayingatthetime."I'vegottheoriginaljeweller'sinvoicewhichwasmadeoutto'TheKing'."Graffgavetheringtohiswifefortheir25thweddinganniversary.
Lastyear,whenthe15thlargestroughdiamondeverdiscoveredcametolightintheMalutiMountainsofLesotho,thepresidentofLesothohimselftelephonedGraffimmediatelywiththenews.Withindays,diamondexpertsfromSafdico,Graff'smanufacturingandtradingarm,wereinLesotho.
InAntwerp,biddingpartieseachspentfourhoursexaminingthe603caratroughstone.Twodayslatertheyhadpresentedtheirsealedoffers.Atarecord-breaking$20,500percarat,Graffsecuredthestoneformorethan$12million.
InMay2007,thefirstcutwasmade,markingthestartofastressful,timeconsumingandpreciseyear-longoperationtotransformthishugeroughcrystalintomagnificent,flawlessdiamonds.Thereisnotry-before-you-buywithroughdiamonds,soGraffdevelopedcuttingedgesoftware,toolsandcuttingmachinesspeciallyfortheLesothoPromise,asitwasnamed,andithassinceyielded26stones.
Integratingbusinessandfamily
Graff'sbusinessbecamethefirstinthediamondindustrytobeverticallyintegrated–ie,takingadiamondallthewayfromacquiringitintheroughthroughtosellingjewelsinhisownshops.VerticalintegrationcontinuestogiveGraffaleadingedgeintheindustry,andthebenefitsmeanthecompanycanproduceatamorecompetitiverateandofferamoreexclusiveselectionofthefineststonestoclientsworldwide.Theintegrationofmanufacturing,craftsmanshipandretailmakescommercialsenseandcallsfornewskillstocomplementtraditionalones.GraffbuysdiamondsintheroughfromminesinCanada,Australia,RussiaandSouthAmericabutthemajoritycomefromAfrica.ManyarefromthePremierMine,oneofSouthAfrica'soldestminesstillyieldinghighqualitystones.GraffisalsoaDTC(DiamondTradingCompany)sightholder,whichmeansitisoneof93selectedcompaniesin33countriesentitledtobuyroughdiamondsfromtheDeBeerssalesandmarketingarm.
Today,inordertomakethisverticalintegrationcompleteandcapitaliseonthebenefitsthiscouldbring,Graffiskeentobuyamine.LastyearhisattempttoacquiretheLesotho'sLetsengminefellthroughjustweeksbeforetherecord-breakingLesothoPromisewasdiscovered.Graffwillnotsaywhereelseheissearchingforaminetopurchase,butitisclearthatowningamineisahugeandexpensiveinvestmentandsometimesunpredictable–thesupplyofdiamondsneedstobeconsistenttojustifythecost.
Despitethesedifficultiesassociatedwithexpansion,Graffadmitsthefirstmajorchallengehefacesisfindinggoodpeople."Takingapersonintoyourcompanyisliketakingsomeoneintoyourfamily,"hesays."Itdoesn'tmatteraboutthereferences,thetruthprevailsintheend."
Graffinsiststhattheworkingrelationshipbetweenfamilyandnon-familyisgood,buthesays:"Themainproblemwithworkingwithfamilyisthattherearen'tenoughofthem.SometimesIwishIwasanIndianwithahugefamilyaroundmetojointhebusiness.Jewellerybusinesseshavetraditionallybeenfamilybusinesses.Whenyousellsuchexpensiveitems,trustiseverything."
GrafffullyintendstohandthebusinessovertosonFrancoisoneday."Thegoodpartisthatafamilymemberknowsintheirheartthatonedaytheywillpossesssomethingveryspecial.Butwhenthingsgetdifficult,familymembersarehardertofire.It'salsoeasiertoloseyourtemperwithfamily,"hesays.Thesecondmajorchallengeisfindingexceptionalstonesandbalancingthestockintheboutiquesroundtheworld."Diamondsareminedeveryday,butqualitydiamondsarenot,"saysGraff.
BurgeoningdemandfromChina,IndiaandRussiahascontributedtoanincreasedshortageofdiamonds.ButGraffdoesn'twanttodelveintotheissueofhowheplanstofindenoughdiamondstokeephisshopsbrimmingwithtreasures.
GraffisnowconcentratingonAsianexpansionduetosoaringgrowthinrecentyearsoftheChineseandIndianeconomiesandtheincreasingnumbersofmiddleclasseswithdisposableincome.
EverypieceofjewelleryatGraffisaone-off.ThesameGraffadvertisingimagesareusedinbothEasternandWesternmarketsanditisnotunusualforGrafftoseethesameclientsatdifferentlocations.Hiscustomerskeeponreturningforhisrarediamonds,timeless,classicaljewelleryandworld-classcraftsmanship.
Yetdespiteseveralnewstoreopenings–TokyoandHongKongthisyear,GenevaandNewYorkin2008,andmoretofollowinShanghaiandBeijingin2009–haven'tsomeofGraff'smostseriousbuyersofhighendjewellerytakenahitoverthesummer?
"Therearemorepeopleouttherewithmoremoneythaneverbefore,"maintainsGraff."ThesurgehasbeenboostedbynewmoneyfromRussia,ChinaandIndiawhichinitselfisreshapingtheveryhighendofluxuryevenasglobalmarketstakeaslighthit.Newmoneyisspentmoreeasilythanoldmoney.Thereisanexpression,'Makeiteasily,spenditeasily'.Ibelieveweareinaboomnow."Anartform
Askmostjewellerstodaywhoorwhattheirrivalsare,andmostciteholidaysorhighspecelectronicgoods.YetGraffsuggestsart,hisself-confessedsecondlove,isarivaltojewellery.WithanaveragecustomerspendatGraff"ofatleastsixfigures"accordingtoGraff,he'sprobablynotfarwrong."Wehavepiecesfor£5,000allthewaytoseveralmillions,"hesays.Graffhimselfownsamodernandcontemporaryartcollectionestimatedat$250millionandelementsofitadorntheGraffofficesonAlbemarleStreet,Mayfair,includinganacrobaticwhitesculptureofsupermodelKateMossatthereception.
ThevastmajorityofGraff'sjewelleryproductiontakesplaceinGraff'sheadquarters,intwoadjacent18thcenturytownhousesinMayfair,acoupleoffloorsbelowthecompanyboardroom.Here,inaworkshopthoughttobethelargestintheworldforhandmadejewellery,diamondsettersandpolisherssurroundedbythemostadvancedlaserweldingmachinesonthemarketandtopqualityLeicamicroscopessitinanairy,spotlessroom.Between400and600piecesareproducedheremonthly.
Morethananyotherjeweller,Graffalignshimselfcloselytotheartworld,andtoartcollectorsinparticular,byexhibitinghisjewelseveryFebruaryattheprestigiousInternationalFineArt&AntiquesFairinPalmBeach.ForGraff,thelinkbetweenjewelleryandartisnatural."Iconsiderdiamondcuttingoneofthegreatestartformsthereis,"hesays.
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So he survived the GFC.
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