About the brand
The personal brand SOKOLOV appeared on the jewelry market in 2014, but its history began in 1993. It was at this time that the spouses Elena and Alexey Sokolov decided to open their first workshop called Diamant. The company opened its first stores in Switzerland. In Russia, the brand was first presented in St. Petersburg.
SOKOLOV jewelry is the result of a successful collaboration between European and Russian manufacturers. Today, products of the presented brand can be purchased in 16 countries in Europe, North America, the CIS, Asia, Oceania and Australia.
Aggressive hunter
18-year-old Artem Sokolov joined the company in 2011 as a marketing specialist. Before him, such a position did not exist in the company. “I took up marketing, the Diamant brand, then I had to work on the product - expand the range, create a unique design, this is what I focused on first. After all, “Diamond” then copied more Asian and European models, but this could not last forever. Therefore, it was decided to build a design bureau,” says the heir to the jewelry business. At first, Elena Sokolova and several artists were responsible for the design, but when the company decided to make unique things, the staff of designers was expanded. Today, the SOKOLOV design bureau employs 40 people, they draw about 600 models a month.
Sokolov began to build business processes. “We didn’t have HR,” he recalls. - Finance, accounting - everything was somehow unstructured. My father had everything manually controlled. For three years I rebuilt the units that the company lacked.”
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“Sokolov Jr. has a Western management style. His company behaves aggressively in the market, he is quite assertive and does not skimp on personnel. The market knows this. If he likes the work of an employee at a competitor, he can easily scam him,” says a representative of a jewelry manufacturer.
The founder and creative director of the jewelry brand Avgvst Jewerly, Natalya Bryantseva, recently wrote about a similar incident on the social network Facebook. After meeting with Artem Sokolov, the businesswoman accused him of violating business ethics: “He said that we have a very consistent, cool brand, interesting, fresh jewelry design and cool visuals on Instagram. I asked who was responsible for all this on the team. […] Three hours after the meeting, several of my guys immediately received job offers from the HR manager of the glorious company Sokolov! Some immediately become an art director, and some become a designer.”
Sokolov, commenting on Bryantseva’s post, referred to “a slight lack of communication within the team.” Bryantseva did not answer Forbes’ calls.
Distinctive features of the brand
The most important advantage of jewelry from SOKOLOV is the high quality and strict control in the production of products. The Sokolovs use bank metal, and buy stones from the world's leading manufacturers.
Also, SOKOLOV jewelry has gained wide popularity and the hearts of buyers thanks to its reliable fastenings, as well as the resistance of metals to deformation. All this thanks to advanced European technologies - laser engraving, rhodium plating, cold stamping.
The designers of the new collections are leading artists and jewelers who are not only aware of the latest fashion trends, but also predict the dynamics of the fashion market themselves. In their reviews of SOKOLOV jewelry, consumers have repeatedly noted the exclusive style of these products.
Love for metal
“Since childhood, I spent a lot of time at the factory, because my parents worked there from morning to night. Then I had no idea that it would develop into a family business,” recalls Sokolov Jr. As a teenager, he was interested in history; in the 10th and 11th grades he studied maps of the surrounding villages with his friends. “We went through the entire Kostroma region with metal detectors. We found a lot of trophies: for example, a two-kilogram Chinese silver coin from the 12th century, breastplate icons, and a bullet with a name from 1917. Scrap metal was also collected from all villages. We had missile points in the region, and there was a lot of abandoned grease, we also collected it and tried to sell it in villages for agricultural machinery,” he shares.
After school, he entered Kostroma University at the Faculty of Economics. “Well, I did it - I submitted documents, but I’ve never been there. In 2011, he flew to London for language and marketing courses at London business school, but six months later he returned back to the plant. So I don’t have a higher education,” says Sokolov Jr.
In 2013, the businessman decided to enroll in MIRBIS (Moscow International Higher Business School), but without a higher education he was denied admission. “Then I wrote to all the teachers I could find on social networks and by e-mail that I needed knowledge, not a diploma, I convinced them to take me, and in the end I was accepted. However, they never gave me a diploma,” he says.
Watch
This is an indispensable attribute of any business person in the modern world. When purchasing this accessory, you must carefully consider its quality and appearance.
The watch is hand-assembled in Switzerland. This accessory from a well-known brand also contains Japanese quartz movements from the world's largest watch concern Miyota.
Another feature of SOKOLOV brand watches is the use of high-quality diamonds from the KGK Group, the world's largest company, whose partners are ALROSA and De Beers. A rich color palette helps to create unique design solutions using cubic zirconia.
In a number of models, the watch mechanism is inlaid with moonstone, which gives products for ladies incredible femininity and luxury.
Spring collections 2015
Collection Fleur
Jewelry from the Fleur collection
For the spring season of 2015, SOKOLOV jewelers have created a new Fleur collection. The jewelry in this series is imbued with the romance and mystery of warm spring nights. The stone that is present in all products of the Fleur line is Swarovski topaz in the “Kashmir” color. The Sokolov brand was the first in the world to use this shade of stone, created by specialists from the Austrian company Swarovski.
Rings
Rings from the famous SOKOLOV brand are known throughout the world for their sophistication and originality.
Every girl dreams of feeling like a queen. Thanks to this brand, every man has the opportunity to make his beloved’s dream come true. Crown rings from SOKOLOV are made from a range of precious stones that make them unique and luxurious. Silver and gold rings with diamonds or cubic zirconia are waiting for you in SOKOLOV jewelry stores.
Another feature of this brand are rings made in the shape of an infinity sign. The simple design combined with sparkling and bright cubic zirconia will appeal to all lovers of talismans that bring good luck. Also, such a gift can become a symbolic expression of the infinity of love.
SOKOLOV is the undisputed leader in the production and production of wedding rings. For those who decided not only to tie the knot in the registry office, but also to undergo a mysterious wedding ceremony, the brand produces rings with religious symbols. Products with the inscription “Save and Preserve” are especially popular.
A ring in the shape of a baby's heel will be an ideal gift for a new mother. An elegant design in the form of a baby's footprint, decorated with cubic zirconia, will be a daily reminder of the most significant event in the life of any woman.
This is just a small part of the designer rings from the famous jewelry brand. In their reviews of SOKOLOV jewelry, many girls note the variety of models. It is also extremely important for representatives of the fair sex that the rings do not cause any discomfort and do not cling to clothes or hair. This means that jewelry will delight its owners every day.
Silver bet
Meanwhile, production in Krasnoye expanded. By 2005, the area of the enterprise increased to 10,000 square meters. m (today it is already 26,000 sq. m). The plant produced gold items with diamonds and semi-precious inserts. The Sokolovs’ clients in those years were wholesalers,” says Artem Sokolov.
In 2008, when Artem was 15 years old, the company’s turnover was about 1 billion rubles. “Despite the crisis, [the parents] decided not to change plans and went to the federal level - they opened the first office and showroom in Moscow, which were much more accessible in terms of transport than Krasnoe-on-Volga. At the same time, we continued to develop production, purchasing additional equipment to produce more complex products and expand the range,” says Artem Sokolov.
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And in 2009, Diamant launched the production of silver products. “It was a 100% hit, my father guessed the trend back then. Because today silver is a third of the market in monetary terms and two-thirds in physical terms,” notes Sokolov and is confirmed by the head of the Guild of Jewelers of Russia, Eduard Utkin. Today, 61% of SOKOLOV’s revenue comes from gold products, 5% from watches, and the rest from silver. Little by little, the assortment expanded from several hundred SKUs to tens of thousands of SKUs (an inventory accounting unit used in trade to track statistics on goods/services sold. - Forbes
).
Sokolov Photos
Earrings
Having crossed the threshold of the SOKOLOV store, almost any girl will not be able to leave without buying something. This has a lot to do with the incredibly wide range available. All earrings of the Russian brand can be divided into four categories:
- Classic.
- Hanging.
- Women's.
- Children's.
When it comes to castles, the tastes of ladies often do not coincide. Therefore, SOKOLOV produces them in various types: stud earrings, English lock, French lock.
In their reviews of jewelry from FALCONS, most girls are as satisfied as possible with their purchase. The main positive aspects are the quality and variety of earrings. Also, many were satisfied with the price of jewelry. You can buy beautiful silver earrings for only 1000 rubles.
Pendants and pendants
Create pendants, pendants and amulets, the designers of the SOKOLOV brand strive to fill them with a wide variety of meanings. That is why you can purchase not only jewelry, but also a symbol that reflects your inner world.
In the catalog and on store windows you can find more than 3,000 different models of pendants made of gold and silver with various coatings and inserts. The brand's assortment is constantly updated with original, exclusive and fashionable jewelry.
SOKOLOV offers its clients pendants in the shape of letters, names and zodiac signs. This can be a wonderful gift for family, friends and relatives. The brand also produces religious pendants and pendants: stylized crosses, icons, and Muslim pendants.
In reviews of SOKOLOV jewelry, customers note the variety of pendants and pendants, stating that here you can choose a symbol that matches any occasion in life. All pendant decorations are made of natural stones and metals that are resistant to environmental influences.
Bracelets
This is a classic decoration for any girl, capable of highlighting the grace of her hands and impeccable style. SOKOLOV regularly produces the most fashionable and unique hand accessories. When purchasing it, it is important to choose a quality product with reliable fastenings. All stones in SOKOLOV jewelry are attached by hand, which ensures the durability of the jewelry.
Another important part of the bracelet is its lock. The SOKOLOV brand completes its jewelry with individual locks such as carabiners and springels.
The range includes women's, men's and children's models. Chain bracelets, red threads, bracelets made of balls, leather and textiles are just a small part of what can be purchased from the famous Russian manufacturer. The company has released slave bracelets and questionnaires for the most fashionable representatives.
Unsurpassed elegance - this is exactly the epithet that customers choose for bracelets in their reviews of jewelry from SOKOLOV.
SOKOLOV brand plant
The jewelry production plant is located near Kostroma. In 2005, it was among the TOP 10 largest factories in the world. And today, according to experts from the State Assay Office, it is the leading Russian manufacturer in terms of the volume of gold jewelry produced. The number of jewelry pieces that leave the factory per day is almost 20,000, which is almost 5,000,000 pieces of jewelry per year. The range of jewelry includes more than 30,000 items.
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Brooches
A brooch is a very difficult accessory, the selection of which must be approached very seriously. For example, the “Iron Lady” Margaret Thatcher used this piece of clothing to demonstrate her mood to the public.
Finding a brooch is only half the battle. You need to understand how to wear it. For slender girls, miniature and elegant accessories are an ideal option. For ladies with a heavy build, round brooches are an excellent choice.
The SOKOLOV brand presents a whole range of brooches made of different metals. The most popular accessories of this brand are elegant gold brooches-pins, which complete the look, giving it gloss and luxury. For lovers of extravagant outfits, brooches in the shape of animals and elements of nature are the ideal solution.
Reviews of gold jewelry from SOKOLOV confirm the quality of the products. This is especially true for brooches from a famous brand. Gold brooches do not look vulgar at all; they add richness and elitism to the image.
For him
Tie clips and cufflinks are a necessary accessory for any modern businessman. Especially for such people, the SOKOLOV brand began to produce jewelry from a variety of metals with sophisticated inserts.
Cufflinks are an attribute of official style. To create a favorable impression, a man needs to correctly choose both the color and material of this accessory. Gold, silver, diamond-cut, cubic zirconia, sapphire - this is just a small part of the range of men's jewelry from the SOKOLOV brand.
Tie clips can boast the same variety. To create the perfect look, you need to choose a clip and cufflinks in the same style. This is exactly the kit that can be assembled in stores that sell products of the famous Russian brand.
In reviews of SOKOLOV jewelry, not only men, but also women note how jewelry products complement a man’s image, giving it solidity.
Souvenir products
Not only jewelry, but also souvenirs can be purchased from the popular Russian jewelry brand SOKOLOV. Tiaras, figurines, spoons, coins, pens, an ionizer, and much more made of pure silver and gold can be bought both for yourself and as gifts for your family and friends.
A children's collection of memorable gifts from SOKOLOV has been developed for the little ones. A silver bell for christening, a box, a comb, a rattle, a saucer, a glass - you can buy this and much more for your children.
In their reviews of SOKOLOV silver jewelry, many buyers noted the beauty of the brand’s souvenir products. The elegance and sophistication with which the goods are made amazes even the most indifferent to souvenirs and tableware. Also, customer reviews of SOKOLOV jewelry are replete with words of gratitude for products of such incomparable quality and price.
Price and places of purchase of SOKOLOV jewelry products
The price of jewelry from SOKOLOV is quite different. This brand will be ideal for both ordinary people and the very wealthy. This means that the company serves a variety of segments. In their reviews of the quality of SOKOLOV jewelry, consumers confirm the durability of the accessories.
SOKOLOV does not have its own jewelry stores in Russia. However, the products of this brand can be purchased without problems in chain jewelry stores such as Adamas, Mercury, JewelerCenter, Signlite and many others. “FALCONS” jewelry is presented in a fairly wide assortment in stores. If you have not found the product you want, then the ideal option for you would be to order the product you are interested in in the online store on the official website of the brand. It will be possible to pick up the goods at jewelry chains that present this brand in their windows.
Switzerland, crisis and bankruptcy
In 2014, the company registered the SOKOLOV brand. An office in Bern has been operating for several years. But in Russia everything was not so rosy.
Since the fall of 2014, a protracted crisis began in the Russian jewelry industry, points out Eduard Utkin from the Guild of Russian Jewelers—sales and the average bill in the stores of all jewelry companies collapsed. According to the Assay Office, 110 tons of jewelry were produced in 2014, and 59 tons in 2015. Retail sales of products also fell.
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It was during that period that the Federal Tax Service (FTS) actively worked to identify gray tax payment schemes, says arbitration manager Igor Illarionov. The most high-profile cases were those of the country's largest jewelry houses - TPK Yashma and Adamas, which took the path of bankruptcy.
In 2016, the Federal Tax Service accrued almost 10 billion rubles in VAT to Yashma, taking into account penalties and fines for 2011–2012. A criminal case was initiated under Article 199 of the Criminal Code of the Russian Federation (tax evasion). Searches were carried out at the company's central office. “The bankruptcy of Yashma is still going on. The chain, which consisted of more than 300 stores, ceased to exist,” says Illarionov.
The story also made a lot of noise. After inspections by the Federal Tax Service, it was found that from 2012 to 2014, the jewelry holding company conducted fictitious document flow with shell companies. These companies entered into agreements for the loan of gold bullion with the bank, thanks to which they did not pay VAT, and at the same time - agreements for the purchase and sale of bullion: this is how the obligations were extinguished. This is an old scheme from the 90s, says Illarionov. The damage caused to the state amounted to almost 6 billion rubles. In 2022, one of ) was declared bankrupt with a total amount of creditors' claims of 28.4 billion rubles. In February 2020, the Basmanny Court of Moscow arrested the former executive director of a jewelry company, Maxim Weinberg, in absentia for VAT fraud. “The largest creditor was Sberbank, the debt to it amounted to almost 2.5 billion rubles. The jewelry house miraculously survived; they managed to agree with creditors not to kill the company, but to restructure it and its debts,” says a former employee. In total, bankruptcy procedures were initiated in approximately 30 companies, says Igor Illarionov.
Artem Sokolov (Photo DR)
“Diamant” of the Sokolov family could have encountered similar problems, which also did not escape inspections. In the same 2014, Sokolov Sr. and his wife, leaving the business to their 20-year-old son, decided to move to Switzerland.
“My parents left because they were simply tired of 20 years of operating systems; they worked all their lives from morning to night. And they once had a vacation in Switzerland, they liked it: first they decided to open an office there, and then gradually began to live there more and more,” explains the son. — In 2014, I myself suggested to them: let me rule here, in Russia. Created and defended the development strategy for a new brand. At first, my father controlled the situation and was my mentor, but gradually retired.”
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“I realized then that if you don’t let Artem do what he wants, then it will be too late. He will simply lose motivation and interest in business. And then what? Artem has always been very independent, with character and great ambitions, he needed to be given the opportunity to go his own way and make his mistakes,” Alexey Sokolov told Forbes through the SOKOLOV press service.
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But there are other points of view. According to two Forbes sources in the jewelry market, the departure of the Sokolovs could be associated with possible difficulties at home. Another interlocutor claims that Sokolov Sr. left due to health problems. Artem Sokolov did not comment on this information.
In 2022, the company fell under bankruptcy proceedings. The tax authorities assessed her additional VAT in the amount of more than 300 million rubles. According to the file of arbitration cases, two of the Sokolovs' companies - Diamant-S LLC and Krasnoselsky Jewelry LLC (the founder of both is Elena Sokolova) - in 2022 tried in court to challenge this decision of the Federal Tax Service for the Kostroma Region.
Artem Sokolov confirmed the amount of claims and clarified that in 2017 the company carried out tax audits, but we were talking about already closed periods - from 2012 to 2014. Diamant received claims for reimbursement of unpaid VAT along the chain from the key jewelry counterparty at that time (SPB YuZ YUSS LLC). At that time it was the largest supplier of SOKOLOV.
“We used the legal bankruptcy procedure to make the claims settlement process transparent, predictable, and manageable. Thanks to this, production did not stop. Diamant continued to fulfill its obligations to the budget and partners, and all claims were dropped. The production of products under the SOKOLOV brand is concentrated today at Yuvelit LLC,” says Artem Sokolov.
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“This is a fairly common category of tax disputes, when claims from the tax authorities are made both against the taxpayer’s counterparties (for the fact that such counterparties did not actually conduct any activities, and the documents they submitted were fictitious), and, of course, against the taxpayer himself - for that he not only knew about the fictitiousness of the documents received, but also could control their preparation. Often such tax disputes continue with criminal prosecution, because an attempt to illegally obtain money from the budget is fraud,” explains Denis Zaitsev, lawyer, partner of the People of Business Bar Association.
Zaitsev suggests that the positive outcome for the companies was determined by two conditions. Firstly, taxpayers partially accepted the claims of the tax authorities, thus reducing the risks of criminal prosecution. Secondly, in the remaining part of the appealed additional charges, they presented irrefutable evidence that the budget did receive money in the form of VAT.
“The court sided with the taxpayer, applying not only the rule that deductions (refunds) of VAT are possible only from a generated source, but also the rule that it is inadmissible to create formal conditions for collecting taxes in excess of what is required by law,” says Zaitsev, who, at the request of Forbes, sorted out the court documents.
“It wasn’t easy for the Sokolovs. But Alexey left Artem with a strong management team, security service, and lawyers. So they managed,” explains Sokolov’s acquaintance.
Sokolov Photos
According to four Forbes interlocutors in the Russian jewelry market, Alexey Sokolov still continues to manage the company from abroad. “He makes important, strategic decisions,” says one. “For Artyom, his father is an authority; he consults him on everything,” confirms the second.
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“We must give him credit, he [Artem Sokolov] is involved in the interests of the industry. Still, the largest company on the market, and he defends our interests, initiates negotiations with the authorities, etc.,” adds the third interlocutor. “After Artem joined the company, it became completely different. What we have now is thanks to him, and dad created the foundation,” says a fourth industry source. There are still no transparent statistics on the jewelry market. According to the Assay Office, in the second quarter of 2022, Yuvelit LLC was in first place in the ranking of companies that submitted gold items for hallmarking.
Sokolov admits that he interacts a lot with the Federal Tax Service, the Ministry of Finance and the Ministry of Industry and Trade. “Recently, this has mainly concerned the introduction of jewelry labeling (started on September 1, 2022. - Forbes
), all tests were carried out in our production.
Prior to this, they were working on permission for online sales of jewelry (came into effect in December 2022. - Forbes
) and the abolition of mandatory silver hallmarking (cancelled in the summer of 2020. -
Forbes
). We would like the jewelry market to become as civilized and transparent as possible,” he says.
