Seven years in the industry, tens of thousands of kilometers of travel between the Czech Republic, Slovakia, and Poland, direct contracts with Italian and Turkish factories, a family management model, and a fundamentally different approach to procurement. Entrepreneur Oleksii Kovernikov has created a company that does not simply sell jewelry but shapes demand and offers B2B clients exactly what their customers truly need. In a candid interview, he explains how the European jewelry market works, why the family format has become an advantage for them, and how important it is in this industry to manage risks.
Oleksii Kovernikov founded Kove Jewelry s.r.o. in the Czech Republic two years ago after five years of working in the jewelry industry as an employee. Today his company supplies gold jewelry from Italy and Turkey to B2B clients throughout Central Europe, providing more than a hundred stores with a stable assortment. But the key difference of Kove Jewelry lies not in its scale, but in its methodology: the team studies the market itself and forms procurement based on specific demand. This is an approach that almost no one uses in the region. In our conversation, Oleksii explains in detail how profitability works in the industry, why gold remains one of the most stable commodities, and what lies behind the seemingly simple word “wholesale.”
Oleksii, you have been working in the jewelry industry for seven years. How has your perception of the market changed during this time?
— When I first entered this field, it seemed to me that the jewelry market was something absolutely stable and measured. But over time I realized that its stability is only an external shell. Inside, everything is governed by a very complex logic: fluctuations in the gold price, buyer behavior, the political situation, changes in legislation, and the nuances of Turkish and Italian production.
We started small, but every year our understanding of the processes became deeper. Now I look at the jewelry market not as trading a product, but as an ecosystem where everything is interconnected—from the chemical analysis of alloy purity to logistics across half of Europe.
Many companies operate according to established schemes. What made you look for your own approach?
— I noticed that most wholesalers live by the principle: “Whatever the factory offers, we’ll bring.” It’s a convenient model, but it completely excludes understanding real demand.
We decided to take a different path: to study what the end customer actually wants and then form the order at the factory based on that. It takes longer, it’s more complicated, and it requires a huge number of meetings with clients. But the result is obvious: our products sell faster, turnover is higher, and stores are consistently satisfied with the assortment.
So you essentially transformed the role of the wholesaler?
— Yes. A wholesaler is usually just an intermediary. We became an analytical link between factories and retail.
Clients often say: “You bring exactly what we need.” That’s our goal. We study demand, analyze sales, seasonality, and observe which trends come to Europe from Turkey and which from Italy. In the end, we order not what simply exists, but what will sell.
That is our uniqueness: I don’t know other companies in the Czech Republic or Slovakia that work with such a model.
You mentioned that the market is very specific. What exactly makes it so?
— First, retail jewelry in Europe does not sell without physical contact. We tried online and we tried retail, and neither direction showed the desired results. Buyers want to see the item, touch it, compare it, feel the weight. That’s traditional.
Second, the industry is incredibly closed. People work through recommendations and build trust for years. You cannot simply enter and say “we’re new.” It doesn’t work. You need connections, reputation, stability, and an understanding of the buyer’s culture.
Your company is a family business. How much of an advantage is that?
— A huge one. The three of us—my wife, my sons, and I—control every stage. That means fast decision-making, no bureaucracy, and minimized mistakes.
When we go to purchase goods, we know exactly what our clients need. When my wife analyzes sales, she knows what displays each store has. We don’t divide processes into “mine” and “yours.” We are one unit.
This is especially valuable in jewelry, where a mistake can cost tens of thousands of euros.
Your business started with just a few kilograms. How did you grow the volume?
— At the very beginning we purchased about three kilograms; now it’s around ten. The growth happened gradually through reinvestment, constant product rotation, exchanges with manufacturers, proper price management, and of course through customer trust.
In this industry, business does not scale in sudden jumps. Caution is important: no one will allow you to hold a million euros’ worth of gold if previously you handled goods worth one hundred thousand.
Two years ago you registered the company in the Czech Republic. Why did Central Europe become your main market?
— The Czech Republic is an ideal logistics center for the region. From here it is convenient to work with Poland, Romania, Slovakia, and Germany. The economy is stable, the rules of doing business are clear, and there is a high level of business protection.
In addition, the market itself turned out to be very open to new suppliers, especially those who do not simply sell products but offer a well-thought-out assortment strategy. We immediately saw that we could meet the needs of B2B clients more effectively than local players, and that became a decisive factor.
What difficulties were the most unexpected when launching the company in the Czech Republic?
— Banks. Opening an account was a quest. We visited about eight banks before one finally agreed.
The second issue was logistics. No one explains how to properly transport jewelry here—you learn through mistakes.
And the third is legislation. It protects the market but sometimes makes processes slow. You must be extremely careful with reporting and compliance.
You previously worked in the automotive business in Ukraine. Is the experience very different?
— Enormously. In Ukraine business is more flexible and faster. In Europe it is structured and formalized. Here you cannot “solve a problem tomorrow.” But you always know the rules of the game.
And if you follow them, you get stability. In jewelry especially: everything is based on trust, legal clarity, and transparency.
Youmentioned that you were robbed this summer. How did that experience affect your work?
— It was a painful lesson. We lost goods worth 200,000 euros. But I believe the experience made us stronger.
We reconsidered security, logistics, insurance, and routes. Today we work much more carefully. The jewelry business is not about “beautiful boxes.” It’s about risk. And only those who know how to control it can grow.
What are your relationships with clients like? Do you travel a lot?
— Half the month we are on the road. Every month. We personally visit stores in the Czech Republic, Slovakia, Poland, and Romania. It’s a mandatory part of the system.
Otherwise it’s impossible to understand the market. No one will tell you the truth about sales over the phone. But when you see the display, when you see the buyers, many things become clear.
How has demand for gold grown in recent years?
— In front of my eyes the price of a gram of pure gold grew from about €60–65 to €120. And that’s not the limit.
But the most interesting thing is that sales are not falling. People increasingly see gold as a way to preserve wealth. Some buyers directly say: “I’m not buying jewelry, I’m investing.”
How do you react to price volatility?
— We have learned to use it to our advantage. For example, if at the beginning of September we had purchased goods and simply stored them for three months without selling anything, we would have earned around €20,000 just from the price increase.
But of course we sell the goods, which means the profit essentially doubles.
What do you consider the main factor behind Kove Jewelry’s success?
— Honesty and analytics. We never promise the impossible, we always bring exactly what was requested, and we always tell the client the truth about the situation.
And we know how to look at the market deeper than a typical wholesaler. We don’t trade “gold.” We manage demand.
Many buyers still don’t understand how to distinguish high-quality jewelry. What should people pay attention to when choosing gold?
— The most important thing is not the hallmark, as many think, but the factory. The hallmark only confirms that the piece meets the standard for gold content. It says nothing about workmanship: soldering, clasps, coating, symmetry, polishing.
Good Italian and Turkish factories have such high standards that their products retain their appearance for decades.
The second point is weight. If a piece is too light, the manufacturer likely saved on metal. Such jewelry bends easily, breaks, and loses its shape.
And finally, the place of purchase. Jewelry is the type of product where saving money often leads to double expenses. It is better to buy from trusted retailers or recommended suppliers.
Today many people view gold as an investment. How justified is it to buy jewelry for this purpose?
— Jewelry is not a gold bar, but it preserves value better than most consumer goods. If the piece is high quality, factory-made, with proper weight and a classic design, it will always remain liquid.
Of course, it’s difficult to make speculative profit from it—the retail markup still exists. But preserving capital in jewelry is quite possible. In Europe many people do this: they buy classic 18K pieces and keep them as family assets.
Strategically speaking, gold always wins in the long run. It does not depend on banks, political cycles, or market bubbles. That is why I believe jewelry has not only aesthetic value but also financial value.
