Erum Jewelry Case Study Essay

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Ebtissam Algosaibi is described as being "very persuasive," since the time she convinced her father to send her to a British boarding school (6). Her determination became a driving factor in the success of Erum, her jewelry company. Algosaibi's education in art and art history fueled her passion for design. She initially designed furniture, and then realized her deeper vision was to create jewelry. Armed with her new vision, Algosaibi sunk all her personal savings into precious stones and set about designing a line of jewelry with Islamic aesthetics that would be relevant to the luxury market in her home country, Saudi Arabia. Several other personal factors contributed to Algosaibi's success and the success of Erum. For one, Algosaibi did not become deterred by setbacks. Second, Algosaibi had access not only to financial capital and security but also the privileges of social connections with elite clientele and the persons in power able to facilitate her business. As the first line of Erum jewelry made waves with elite Saudi women, Algosaibi anticipated the consumer demand for a broader array of products including a "silver" line with more affordable but still luxurious pieces and a third line of "mid range" or "boutique" jewelry that could help build her brand. Algosaibi has always had one foot in the Western world, allowing her access to and knowledge of multiple business, political, and cultural environments.

2. Algosaibi contends with several challenges embedded in part to Saudi law. For example, her initial vision was to open a store in Marbella, Spain, a market she knew because she has a family estate there.

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However, the store failed because the kingdom of Saudi Arabia imposes heavy duties on both the materials she sells abroad and also that which she re-imports if it did not sell there. Another challenge that persistently presented itself to Algosaibi was the issue of design pilfering, which occurred in unlikely places such as from an "erstwhile reputable" French jeweler (p. 5). One interesting challenge for Algosaibi that becomes a potential barrier is her tight control over artistry and design; it is "difficult for her to either delegate the design work to someone else, or force herself to design" when she is not in the mood (p. 7). Algosaibi also has trouble competing with established jewelry brands because she does not have the huge marketing and distribution channels companies like Cartier have. However, Erum operates within a healthy market environment in Saudi, where the jewelry market has grown at a rate twice that of the rest of the world, and in which the luxury market is set to remain strong. Her biggest challenge is fulfilling her goal of breaking more ground in the European market and gaining more recognition as a top designer.

3. Erum jewelry should remain firmly connected with its primary audience and target demographic in the Middle East. This is the sector with the greatest growth potential,….....

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