When Max and Clara Fortunoff, Russian immigrants to the United States, founded the 'pots a pans' business bearing their family name on Livonia Avenue in Brooklyn, they could hardly have envisioned the silver lining of the Fortunoff future sixty-seven years later. As the early business grew to eight shops with hand painted signs hanging from the ceilings and counters piled high with house and silver wares accommodating the needs of a burgeoning neighbourhood, Max and Clara's three children Lester, Marjorie and Alan joined the family business distributing their respective skills in the specific areas of their interests. Today, with five locations dotted around New York State, including a 20,000 square foot, three level store on Fifth Avenue, Fortunoff has come to be known as 'The Source' for quality.

Whilst renowned for their fine silver and flatware, the Fortunoff fortunes took an added turn upwards, when Alan met and married a young woman from his real estate appraisal class at New York University's business Management School. Helen Fortunoff is now the head of the Fortunoff fine jewellery division after having established this new facet of the family retailing empire in 1957. "Max and Clara were anxious to have the business expand as much as possible. They were young people, very much alive when they handed us the reigns, but they were very forward thinking people and they wanted to give their children a sense of independence. My husband and I were just married and we found ourselves in business", recalls Mrs. Fortunoff. "Alan was attending Law School and at the time I was busy having babies, so we decided that we would simply add to a business that was already involved in fine silver and china, by bringing in the dimension of fine jewellery.

"We went into that area quite cold with no previous experience really coupled with the fact that we were beginning in Brooklyn which was really starting to change at that time. We were very fortunate in that we met several influential people from Long Island, including the then owner of the property that we are now in. Business really began to boom when we moved to Long Island. We were an immediate success in this location. It was a very unique store for the area; the merchandise that we offered was very upscale and we provided a very broad selection. It really was a 'happening'".

Over her thirty-seven year career, Helene has been a pioneer in fine jewellery

in the United States, accruing countless accolades which applaud her acute business sense and forge a solid road for women in the jewellery industry in the process. She was the first woman member of the elite DeBeers group, The United States Carat Club, in addition to her ongoing commitments to the executive committees of the Jewellers of America, the Jewellery Industry Council and The Society of Jewellery Historians USA. She is a sought after public speaker and a tireless community worker as well as being a proud mother of six, several of whom are already active in the business thus carrying Fortunoff into a third generation of retailers.

Amongst the lofty echelons of Fifth Avenue jewellers, Fortunoff holds a particular appeal that can perhaps be best characterised by the personality of Helene Fortunoff. Warm and vibrant, like its principal-in-charge, the fine jewellery boutiques at Fortunoff display diamonds at many tens of thousands of dollars, but they are most likely to be purchased by the unassuming CEO "whose face one would not have seen in the newspaper", or by the "successful working career woman, making a purchase for herself". The family atmosphere at Fortunoff - the constant hive of activity and the fact their customers are not looking for rarefied air, implies a relaxed feeling that Helene actively encourages.

VIVE spoke with Mrs. Fortunoff in the Long Island store about the fortunes of an American retailing institution...

VIVE: How would you compare the American and European markets in terms of jewellery?

FORTUNOFF: I think that it is a very different mentality, they are very greatly stratified there. In other words you have a customer who is only in the very, very upper echelons of merchandise, she is looking for very expensive products and then you have a big chasm where it simply drops down enormously in quality. There is a middle class of jewellery consumer there of course, but somehow the jewellery doesn't seem to be appealing to it. In Italy where you have, let us say, an 'investment mentality', where every woman wants to have her gold chains and bracelets, that is a different case altogether. I think that in the States a woman is considerably more fashion oriented in that she wants to have a beautiful pair of earrings: she could be a person who earns a very nominal salary but when she goes out she wants fashion and because of that she is a repeat customer. I will say that in Europe, quality tends to be the paramount consideration when they make their selection and in the States perhaps that is not always necessarily the case: they frequently want a lighter item or they want an item that is larger and more fashionable, but I think that n the whole you have a certain joie de vivre when it comes to the acquiring of jewellery here.

VIVE: Whom do you feel is leading the way in terms of jewellery design today?

FORTUNOFF: I have a particular theory from a manufacturer's point of view that the French have the germ of the idea, the German's build it like a brick fortress and the Italians make thirty variations of the French item and really bring it to the marketplace. That is my own perception of the jewellery circle.

I don't think that the French are necessarily the leaders still because I feel that there is a narrowness in the design perspective; they are not as open to all of the various impetus. I would say that the Italians today are much more adventurous; certainly there are so many more companies and there is an enormous sense of family pride in the Italian manufacturing scene and I feel that they are much more receptive to change. The French make extraordinarily beautiful merchandise and I think a lot of it is very innovative but what I am saying is that they have very narrow lines and they appeal to only a certain segment of the population. The fact that Italian people themselves are acquirers of gold jewellery has led to a tremendous amount of development in their own right.

VIVE: How would you characterise American design skills by comparison?

FORTUNOFF: There are many wonderful American jewellery designers. I would say that we are seeing a renaissance of beautiful design from the young, talented designers today who are completely innovative, very forward thinking, and from them I see a complete metamorphosis. I now see for the first time, Italy copying from the States. We have a young man named Charles Krypell who designs jewellery for us that is very sophisticated, very architectural and I think that that sort of style has been developed here in the States. Jose Hess also, is a wonderful jewellery designer - very fluid, sensual, heavily into diamonds. Henry Dunay is different again, his work I would say is a little more architectural again, however, he has several unique specialities such as the way in which he works his gold and in many cases I feel that he is emulated by many people in the States. Robert Lee Moris represents a stable of very young designers. I think their work is modern, it appeals to a 'young artistic' crowd to a different clientele, but in many cases it is much warmer than the innovative Germanic look which is hard at times, almost grotesque. It is to hard for most people to wear and as such does not appeal to a broad spectrum of people. But a lot of the new designers have managed to retain the element of warmth - you still have a great line, you still have new stones, new faceting, a lot of experimentation and I think that today this is very much the American niche. We are carrying many young design people and one of my 'pets' again is to nurture young people. Secretly, I know that when I place an order it perhaps won't sell as quickly as one would like, but I want them to have the encouragement and the market place, I want them to have the exposure in a Fifth Avenue environment just to see how the customer will react to new looks. I know that in many cases, I have written the first order that they have ever had and I feel a pleasure in that.

VIVE: How do you find doing business in New York given the vast representation of people from such a wide cross-section of both American and international society?

FORTUNOFF: I think that first of all, by virtue of where our store is situated it is frequently like a bazaar. We get representatives from the United Nations coming in saying, 'Quick, I need a dinner service for thirty, for an important diplomatic function tonight!' They tend not to have it as readily available at their respective embassies as you might think so they come in to buy it from us as needed. There is a well-known businessman who came in with his fiancee and his bodyguard of all things, just prior to their costume engagement party. He stayed so long - after having bought $US90,000 worth of assorted jewellery, that after he had finished, he put on his costume in the store to go to his party and he insisted that the Floor Manager put on a costume and come as well! In the New York store we serve many celebrities, rock stars...In the Long Island store where I spend most of the time Barbara Streisand came in looking very simple and as unobtrusive as possible. This happens a good deal because we are close to Estbury Music Fair where many entertainers gather. Most of them do not want to be recognised, they want to come in, just shop and to be treated 'regularly'. On Fifth Avenue, this happens all the time. They just want to get in and out, as painlessly as possible and I would say that we go out of our way to accommodate that.

VIVE: What is the most expensive item you have sold?

FORTUNOFF: That would probably be a single diamond solitaire, costing about US$500,000, sold to just a successful businessman - not anyone that you would recognise off the streets. Ordinary success...

VIVE: What were some of the important lessons that you learned from your early years in business in the Bronx?

FORTUNOFF: As a young businesswoman, I learned some very valuable lessons regarding how to communicate with the public. I will never forget my very first pearl sale back in Brooklyn when a little old lady came in to the store wearing a house-dress. Normally, I suppose that many people would not have bothered with her very much because she looked so poor. As an owner - I don't like anyone to go unattended - I went over to her to see if she needed any assistance and she bought a string of cultured pearls for $500 which thirty years ago was not a little price. Everyone was astounded that she could afford them - maybe she had saved for this purchase for many years, I don't know, but you must remember that it was this sort of neighbourhood. That was a very good lesson which I have tried to instill in all of my staff - that they should approach everyone as if they have a million dollars in their pocket and not to pigeonhole anyone. We test them in this area too: we have a special service in the States that caters for this. 'Customers' come in giving all sorts of problems, demanding refunds, they ask technical questions and the staff's responses are all written up and placed in their files.

VIVE: What would your advice be to someone today, who wants to be sitting in your seat?

FORTUNOFF: I think that my advice would be to be completely unafraid; not to be afraid to make mistakes, to be extremely open to change and challenge. The environment today presents these elements and the one thing to ensure is that you retain your humility, don't believe your own P.R., and not to be afraid if you are doing something that is different to the rules. When I began in the business, I was often told not to do my displays in a certain way because they were different from the conventional manner. We display on three levels whereas I was told initially that jewellery showcases should only be on one level, but I had so much merchandise and so little space that I had to stack on three levels. I designed trays that held twenty pairs of earrings because nobody was making them. I didn't know that it wasn't the 'right' thing to do, I simply did it. I would say that that should be the rule today - develop your own methods, your own strategies....don't be afraid.

VIVE: Who are the people that really fascinate you in business today?

FORTUNOFF: You'll kill me when I say this, but I would have to say that it is my husband. He is the most extraordinary businessman that I have ever met: I think that he is an advertising genius and I have complete regard for both himself and his ethics. Apart from that, I would say that when I worked with Lauren Bacaul - she did some advertisements for us years ago - I certainly enjoyed it. She is a very 'salty' woman - she does not compromise, has strong beliefs and strong standards and she is an independent human being, her own person.

VIVE: Where do you think America is going in your opinion?

FORTUNOFF: That is a very good question. I want to be positive but I see too much polarisation. As a person who hopes for homogenisation, I see instead too much divergence between the people who live a very difficult existence and those who have the pleasure of a luxurious, leisurely lifestyle. So, I see an enormous split and I am concerned by it....

VIVE: Isn't this the country where you can be one or the other?

FORTUNOFF: Certainly I would say that I am delighted by the success stories of many of the new cultures that have come to the United States and so I see from that point of view, that there is a lot of what I call 'infusion' of small business, a tremendous vitality as far as that goes. But, I also worry about that lower economic strata of our society who I think are rapidly becoming desperate because they are being over-looked. I think that there are tremendous opportunities still in the United States for people who have imagination and ambition and who are not afraid to work hard.

VIVE: What are some of the aspects of the jewellery industry that you particularly enjoy?

FORTUNOFF: I tend to be very lucky in that I travel all over the world and I am given the opportunity to meet with some very interesting people. When I went to Israel, I got to dance with the Minister of Commerce who invited me to do a passe double. I had never done one in my life and he simply got up and did it this most difficult step beautifully. This was a white haired gentleman who's sitting at this very official dinner. I was a leader of the first jewellery fair that was held in Israel, and as the leader of the American group, the biggest delegation, I was put next to the most important officials. Interestingly enough, I never thought that [the Minister] would remember me, but I was in Israel about twelve years later, in 1982, dining in a wonderful restaurant and the Minister walked in and came right over to my table and chatted.

In India, where I go to purchase diamonds, I have been to weddings between people in the diamond business. They are arranged marriages where one spends three or four days in celebration, and one experiences the whole ritual which is quite extraordinary. a particular wedding was the first time, in fact that I had met some of the top people in the CSO.

VIVE: Do you do much business with Israel?

FORTUNOFF: We do a lot of business there; being a very big diamond capital we go there for many of our diamonds. The industry is constantly growing there and producing a fine quality. The rough comes by way of the Central Selling Organisation (CSO), buying from Antwerp. Within Israel itself, they have a very large cutting operation. I was very fortunate in that as I was the leader of the first delegation, they treated me very specially there and I made a lot of friends that were permanent. When my daughter went there she used to do her laundry at the house of the President of the Board! They are very aggressive in their diamond dealings, but I have admiration for them because they are under such stress there and I like the Israelis much more than most tend to, I suppose.

VIVE: The diamond industry seems to be a very close knit society, rather like a brotherhood. Has it been very difficult for a woman to penetrate it?

FORTUNOFF: I consider myself to be extremely lucky in this industry because I was the first woman for many, many things, and even now I would say that I probably have the most visibility of any woman in the industry in the United States. I don't know whether that is a good or a bad thing. I simply have a high profile because I am very active amongst executive committees. I like this sort of thing, I speak a good deal publicly, and I am very controversial about it. Because I harangue the manufacturers a great deal about quality and about design, I tend to be very outspoken, very blunt and I am pretty well known for that within the industry.

I was the first woman to become a member of the Carat Club in the United States, a private group sponsored by DeBeers made up of prominent retailers from all over the U.S. who are not allowed to meet in this country but gather at many places elsewhere around the world to meet with international members of the industry. At my first meeting in Banff, Canada, I had the pleasure of meeting Anthony Oppenheimer, of the DeBeers CSO board. He was to give the opening talk on the state of the diamond economy so, on the plane over, I honed up on all the facts; I knew the productivity and production ration of all the mines in South Africa, all sorts of statistics - I wanted so much to be knowledgeable being the first woman member. After he had given the talk, he asked if there were any questions. Now everyone is very awed by Mr. Oppenheimer and very careful about what they say, and as I sat there, I knew that I had a question that I wished to ask. I tentatively raised my hand, asked my question but I did not think that he had given me a full enough answer. I was probing, so I asked him again, rephrasing my question, and I began to push at him - he didn't wish to make a big deal about the question but I doggedly wanted to know, and as I asked the second time, all of a sudden, a member of their group, very gently nudged my knee and said, 'I have arranged for you to speak to Mr. Oppenheimer privately, don't pursue it now'. I immediately stopped. After the break, they reshuffled the seating and I was put next to Mr. Oppenheimer for the duration of the conference. He had a dossier on everybody, he knew everything, although he was very discreet. We got along very well, and after my last trip, when I was in Glen Eagle, Scotland, I took my first tour of Charter House street where the DeBeers operation is located. I had the privilege of being asked to the private dining room upstairs to lunch with the Chairman of Anglo-American - the gold company, and Oppenheimer. He kept pumping me for information about business operations in the States and I was so conscious of giving correct, interesting answers that I could feel the perspiration dripping down my face!

VIVE: What sort of relationship do you have now with these people?

FORTUNOFF: Let me say that that entire group is entirely fascinating: you don't have a conversation with them, they grill you, anyone and everyone - they are really tough cookies! I would say that my relationship with them is not as close as it is with the manufacturers. My husband does not get involved with the jewellery at all, although he does tend to check up on me! Firstly, I have made a lot of friends within the industry, travelling a lot by myself, we have had many escapades. I have loved to dance since I was small, and I used to go to the discotheques when I was a bit younger on my trips to Basel. I used to make many of the manufacturers take me dancing to this awfully sleazy disco there called 'Hazyland'. My husband would call at 11.00 p.m. having assumed that I had had a delicious business dinner and was safely in my room by 10.00 p.m. when really I was out discoing at Hazyland! He knows not to call now. I don't do it any more, of course, but I suppose I used to have quite a reputation amongst the American manufacturers!

VIVE: With the family tradition being so historically strong at Fortunoff, have you the same sort of ambitions for your children?

FORTUNOFF: Well, besides my daughter who is now our diamond buyer, my son Louis, is also involved in the business. An indication of his ability is that he is Head of Personnel: He is really great, very bright and well-educated. I am the sort of parent that insisted that my children work - it was never something that was decided upon themselves - in my family, you had to work. My children started work around me when they were nine or ten years old, they might scotch tape boxes or whatever. Louis would sell cutlery; a customer might come up and there is this little ten year old boy, dressed in a suit, and trying to do a good job selling cutlery. A man came up to him once and said; 'What are you doing here? Don't you realise that there are child labour laws? Louis argued back and forth with him and finally told him it was his job, that he belonged here, he was the owner's son and he could sell very well thank-you very much! My children did not get allowances, they earned their livings. My daughter, who is now active with the diamonds became a buyer when she was 14 - I had to know where she was in the afternoons - she was a wild child! She began to buy at that age, she would see salesmen and choose merchandise when they came here, and she would go to the trade shows. She didn't understand the technicalities of diamond grading until she was in her thirties but she grew up around the procedures. We began taking our children on business trips abroad when they were in High School. Normally they would come to France or Italy with us when they were 12 or so and attend the showings with us and then as their vacations permitted they would travel more extensively with us.

I also have children who don't necessarily live the same lifestyle as we do. One of my daughters lives on a farm in Oregon, drives a pick-up truck, raises her own vegetables, is a potter who built her own kiln and is very much into a holistic style of living. My children are quite diverse; another of my daughters is an architect, another daughter at Sotheby's and is about to come into the family business, so that will make a third. I have a fourth son, who is being trained now. I love working with my children: I would say that if there is a special pleasure that I take in business, it would be working with my children and watching them assume authority, and feeling assured knowing that they will take care of business without me having to check up. I know that it will be done properly. I love watching them grow and seeing them be successful.