Risk and Margin Management in International Jewelry Trade

Citation: Oleksii Kovernikov, "Risk and Margin Management in International Jewelry Trade", Universal Library of Business and Economics, Volume 02, Issue 01.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

International jewelry trade is traditionally perceived as a “beautiful” business. In practice, it is a segment with high price volatility, complex logistics, and sensitive margins. Small and medium-sized companies operating at the intersection of production centers (Italy, Turkey) and markets in Central and Eastern Europe face combined risk: fluctuations in gold prices and exchange rates, seasonal demand, differences in customer preferences, and regulatory requirements in different countries. The article examines the practical experience of risk and margin management in the family company Kove Jewelry s.r.o., based in the Czech Republic and specializing in wholesale supply of gold jewelry from Italy and Turkey to B2B clients in the Czech Republic, Slovakia, Poland, and Romania. Key tools are described: diversification of suppliers and markets, demand-oriented assortment planning, turnover and credit risk management, as well as a conscious refusal of retail and online experiments in favor of focusing on a B2B model. It is shown how the family management format can combine with discipline in financial and operational analytics, turning a small business into a sustainable participant in international trade.

Keywords: Jewelry Market; International Trade; Risk Management; Margin; Family Business; Wholesale Supply; Central Europe; Assortment; Turnover; B2B.

https://doi.org/10.70315/uloap.ulbec.2025.0201011