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Jeweller - April Issue 2017

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OFFICIAL MAGAZINE FOR THE<br />

JEWELLERS ASSOCIATION OF AUSTRALIA<br />

APRIL <strong>2017</strong><br />

www.jewellermagazine.com<br />

Tick tock<br />

MAKING SENSE OF THE FAST-PACED<br />

FASHION WATCH ARENA<br />

Opal revival<br />

+ +<br />

LOCAL CONSUMERS ARE SHOWING<br />

A NEWFOUND PENCHANT FOR OPAL<br />

Pairing up<br />

SECRETS TO STRIKING A PROFITABLE<br />

BUSINESS COLLABORATION


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MAKING SENSE OF THE FAST-PACED<br />

FASHION WATCH ARENA<br />

OFFICIAL MAGAZINE FOR THE<br />

JEWELLERS ASSOCIATION OF AUSTRALIA<br />

LOCAL CONSUMERS ARE SHOWING<br />

A NEWFOUND FONDNESS FOR OPAL<br />

APRIL <strong>2017</strong><br />

www.jewellermagazine.com<br />

SECRETS TO STRIKING A PROFITABLE<br />

BUSINESS COLLABORATION<br />

CONTENTS<br />

APRIL <strong>2017</strong><br />

18/<br />

25/<br />

30/<br />

FEATURES REGULARS BUSINESS<br />

18/ RIGHT ON TIME<br />

Making sense of the market shifts<br />

keeping fashion watches on trend.<br />

25/ OPAL RECOVERY<br />

The industry is no longer content<br />

typecasting opal as a cheap souvenir.<br />

30/ PERFECT MATCH<br />

A national treasure has found itself<br />

a new home in South Australia.<br />

32/ PARTING WAYS<br />

Why <strong>Jeweller</strong> will no longer provide<br />

financial backing to the JAA.<br />

9/ Editorial<br />

11/ Upfront<br />

12/ News<br />

16/ New Products<br />

37/ Gems<br />

Revealing inclusions: emerald<br />

38/ JAA Executive Director’s<br />

report<br />

39/ JAA Member’s profile<br />

48/ My Bench<br />

50/ Soapbox<br />

Brent Weatherall wonders what<br />

fruit and flowers have in common<br />

with jewellery.<br />

41/ Business feature<br />

Pair up with others for profit,<br />

advises Francesca Nicasio.<br />

43/ Selling<br />

Thomas Young offers tips for<br />

improving trust.<br />

45/ Management<br />

Marian Thier outlines the seven<br />

traits of a proficient listener.<br />

46/ Marketing<br />

Never underestimate the power of<br />

networking, reports David Brown.<br />

47/ Logged On<br />

There are four SEO mistakes to<br />

avoid, states Chris Ashton.<br />

Tick tock<br />

Opal revival<br />

+ +<br />

Pairing up<br />

Front cover description:<br />

Opal is gaining fame and status<br />

within the local market.<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 5


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EDITORIAL<br />

THE END OF A 20-YEAR RELATIONSHIP<br />

This issue marks the end of <strong>Jeweller</strong>’s<br />

two-decade alliance with the JAA.<br />

For more than 20 years this magazine has<br />

been a major financial contributor to the<br />

association as well as providing non-cash<br />

support; however, I called JAA president<br />

Selwyn Brandt on February 9 to advise<br />

him that we would not be renewing our<br />

sponsorship agreement.<br />

Late last year the JAA asked to begin<br />

discussions about a new contract so Brandt<br />

was understandably surprised by my phone<br />

call. He asked if the decision not to renew<br />

could be reviewed. I informed him that<br />

we had completed an industry survey in<br />

which we polled 200 jewellery retailers –<br />

JAA members and non-members – about<br />

industry topics, including their views on the<br />

JAA. The results would not please him, I said.<br />

Indeed I told Brandt that the outcome of<br />

the survey played a significant part in our<br />

decision to quit the JAA and, as a result, our<br />

decision was final.<br />

It is no secret that many people in the<br />

industry believe the JAA has lost its way.<br />

One indicator of that is the association’s<br />

declining membership. More importantly,<br />

however, are the names of the businesses<br />

that are quitting the JAA after decades of<br />

uninterrupted and loyal membership.<br />

For the record, we had already decided to<br />

conduct an industry survey so adding a few<br />

questions about the JAA wasn’t a big step<br />

and I would be surprised if anyone can put a<br />

positive spin on the results. For a start, how<br />

is it that only 62 per cent of members agree<br />

that the JAA is “recognised and respected for<br />

excellence and trusted leadership”?<br />

Why isn’t that figure 90 per cent or above?<br />

I have already detailed the wider survey<br />

findings online – and now here starting<br />

on page 32 – so what follows are additional<br />

results not previously published. But first:<br />

the most recent turmoil in which the JAA<br />

finds itself follows the announcement to cut<br />

ties with Expertise Events to create and run<br />

a competing tradeshow this year.<br />

Not only was the JAA foregoing more than<br />

$100,000 in cash sponsorship from Expertise<br />

Events for, effectively, doing nothing, but the<br />

decision also caused an industry rift because<br />

suppliers and buying groups were suddenly<br />

being forced to decide between two fairs on<br />

the same days in the same city.<br />

The resulting backlash and division has been<br />

widely reported yet the fallout continues to<br />

this day, which begs the question of how the<br />

JAA management didn’t foresee the perfect<br />

storm the decision would create?<br />

After all, when announcing the decision<br />

in May 2016, JAA executive director<br />

Amanda Hunter said she had “detailed<br />

research, analysis and discussion” about<br />

its new <strong>Jeweller</strong>y Tradeshow. Then JAA<br />

vice president Laura Sawade was also<br />

emphatic: “There has been an overwhelming<br />

HOW IS IT<br />

THAT ONLY<br />

62 PER CENT<br />

OF MEMBERS<br />

AGREE THAT<br />

THE JAA IS<br />

“RECOGNISED<br />

AND<br />

RESPECTED FOR<br />

EXCELLENCE<br />

AND TRUSTED<br />

LEADERSHIP”?<br />

WHY ISN’T<br />

THAT FIGURE<br />

90 PER CENT OR<br />

ABOVE?<br />

amount of support from the industry when<br />

researching this idea.” That was news to<br />

almost everyone in the industry, especially<br />

to major suppliers as well as buying groups.<br />

Leading Edge knew nothing about the<br />

new show and it, along with Nationwide<br />

<strong>Jeweller</strong>s, polled their members and the<br />

JAA show got the big thumbs down, so it’s<br />

unclear who Hunter and Sawade surveyed.<br />

We know who we surveyed and our research<br />

shows that JAA members are resolute in<br />

their view that the industry does not need<br />

a second trade fair on the same days as the<br />

traditional fair – more than 90 per cent of<br />

respondents voted against it. Furthermore,<br />

85 per cent were in favour of Darling Harbour<br />

as the preferred site for the fair. Just one<br />

per cent voted for Moore Park, the JAA’s<br />

nominated venue!<br />

How could Brandt, Hunter and Sawade –<br />

who has since left the industry – get it so<br />

wrong? If that’s not already a slap in the face,<br />

fewer than 30 per cent of members believed<br />

the JAA should risk membership funds by<br />

operating its own commercial ventures.<br />

That aside, the very first question Hunter<br />

and Sawade should have researched was<br />

whether it’s the job of the JAA to be running<br />

a jewellery tradeshow in the first place.<br />

Only 43 per cent of its own members believe<br />

it should. Damning really!<br />

Coleby Nicholson<br />

Managing Editor<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 9


Call for entries to the prestigious<br />

<strong>Jeweller</strong>y Design Awards.<br />

With over $80,000 in prizes,<br />

it’s a call not to be missed.<br />

The winner of the ‘Supreme Award’ will receive two business class tickets and four night’s accommodation to Baselworld 2018, and a full page<br />

advertisement in The Australian Women’s Weekly magazine*. Designers may enter as many categories as they wish.<br />

Each category entered into requires a separate application and each entry incurs a $50 fee. This fee includes entry to the Awards evening for one<br />

person per entry. Finalists will be showcased in an interactive display at the International <strong>Jeweller</strong>y Fair <strong>2017</strong> at ICC Sydney.<br />

This is also where the Fair Visitors’ Choice Award will be decided.<br />

Entries close June 1st, <strong>2017</strong> – Visit www.jewelleryfair.com.au to enter<br />

• 1ST & 2ND YEAR APPRENTICE/STUDENT<br />

• 3RD & 4TH YEAR APPRENTICE/STUDENT<br />

• FAIR VISITOR CHOICE<br />

INSTITUTE OF AUSTRALIA<br />

JEWELLERY<br />

JIA<br />

JEWELLERY INSTITUTE OF AUSTRALIA ®<br />

• MEN’S ACCESSORIES & JEWELLERY<br />

• AUSTRALIAN OPAL AWARD<br />

• PEARL AWARD<br />

• BRIDAL AWARD<br />

• CAD/CAM/CAST AWARD<br />

• PRECIOUS METAL AWARD<br />

• COLOURED GEMSTONE AWARD<br />

• DIAMOND AWARD<br />

• SUPREME AWARD WINNER – The entry that receives<br />

the highest point score out of all of the finalists will be<br />

determined as the ‘Supreme Award Winner’<br />

*Insertion at the discretion of The Australian Women’s Weekly.<br />

INTERNA TIONAL<br />

JEWELLERY FAIR<br />

AUGUST 26 > 28, <strong>2017</strong><br />

INTERNATIONAL CONVENTION CENTRE SYDNEY<br />

Organised by


UPFRONT<br />

“To an older<br />

demographic<br />

possibly but the<br />

trend for some<br />

time now is more<br />

towards smart<br />

technology and<br />

social media<br />

when looking<br />

to purchase.”<br />

Are catalogues still relevant in the jewellery industry?<br />

TREVOR LESTER,<br />

LESTER’S<br />

MANUFACTURING<br />

JEWELLER<br />

BULLETIN BOARD<br />

n SHINE ON<br />

With diamond the official birthstone of<br />

<strong>April</strong>, Diamond Producers Association<br />

CEO Jean-Marc Lieberherr’s advice<br />

couldn’t be more relevant. Lieberherr<br />

told Rapaport News that retailers<br />

should think about the experience<br />

they provide customers and ask if it is<br />

‘worthy’ of diamonds. “We all need to<br />

challenge ourselves to do justice to the<br />

diamonds we are selling,” he explained.<br />

n SMALL IS BEAUTIFUL<br />

Less is more when it comes to store<br />

size in <strong>2017</strong>, according to retail<br />

software provider Vend. Evolving<br />

consumer preferences mean smallerformat<br />

stores are key. Customers no<br />

longer want to waste time wandering<br />

around the endless aisles of enormous<br />

stores; they want the ease and<br />

efficiency that online shopping brings.<br />

n GOOD SUGGESTION<br />

Facebook is making it easier to<br />

recommend businesses. The new<br />

recommendations feature recognises<br />

when a user creates a post asking for<br />

suggestions like where they can find<br />

a product or service. Friends are able<br />

to comment on the post and perform<br />

tasks like tagging a store’s page.<br />

“I believe that<br />

catalogues work<br />

to a lesser degree<br />

these days. Young<br />

people are all about<br />

Facebook and<br />

Instagram, where<br />

the more mature<br />

customer still<br />

likes to receive<br />

a catalogue.”<br />

DIGITAL<br />

BRAINWAVE<br />

ANTOINETTE CROSS,<br />

ANTOINETTE’S<br />

SHOWCASE JEWELLERS<br />

“We don’t use<br />

catalogues; we have<br />

always focused on<br />

social media and<br />

other forwardthinking<br />

strategies<br />

to stand out from<br />

the crowd, so I’m not<br />

sure if they still work.”<br />

SANDRA<br />

GREENBERGER,<br />

LESKE’S JEWELLERS<br />

PAY ATTENTION<br />

Retailers should look at how they can increase<br />

a person’s viewing time on websites – the longer<br />

someone remains on a website, the more time<br />

business owners have to convince, connect and<br />

convert them into customers. Eric Siu, CEO of digital marketing agency Single Grain,<br />

revealed on entrepreneur.com seven ways to make consumers stay longer, including<br />

adding video, in-depth guides and articles as well as a related post section. “Content<br />

should amaze, inspire or educate, but it should never be boring,” Siu said. “Video,<br />

podcasts, graphics, charts and reports can all take centre stage in your strategy.”<br />

TOP PRODUCT<br />

Sams Group Australia’s 0.27-carat, oval cut vivid pink diamond was sourced from<br />

the Argyle diamond mine in the East Kimberley region of Western Australia. The stone<br />

was the most popular product last month ranked by views at jewellermagazine.com.<br />

www.jewellermagazine.com<br />

Managing Editor<br />

Coleby Nicholson<br />

Editor<br />

Emily Mobbs<br />

emily.mobbs@jewellermagazine.com<br />

Journalist<br />

Talia Paz<br />

talia.paz@gunnamattamedia.com<br />

Advertising Manager<br />

Gary Collins<br />

gary.collins@jewellermagazine.com<br />

Digital Manager<br />

Angela Han<br />

angela.han@gunnamattamedia.com<br />

Production Manager<br />

& Graphic Design<br />

Jo De Bono<br />

art@gunnamattamedia.com<br />

Accounts<br />

accounts@gunnamattamedia.com<br />

Subscriptions<br />

info@jewellermagazine.com<br />

<strong>Jeweller</strong> is published by:<br />

Gunnamatta Media Pty Ltd<br />

Locked Bag 26, South Melbourne,<br />

VIC 3205 AUSTRALIA<br />

ABN 64 930 790 434<br />

Phone: +61 3 9696 7200<br />

Fax: +61 3 9696 8313<br />

info@gunnamattamedia.com<br />

Copyright: All material appearing<br />

in <strong>Jeweller</strong> is subject to copyright.<br />

Reproduction in whole or in part is strictly<br />

forbidden without prior written consent<br />

of the publisher.<br />

Disclaimer: <strong>Jeweller</strong> is the official magazine<br />

of the <strong>Jeweller</strong>s Association of Australia<br />

(JAA). The views and opinions expressed<br />

in <strong>Jeweller</strong> do not necessarily reflect those<br />

of the JAA and opinions expressed by<br />

authors are not necessarily those of the<br />

publishers or the JAA. All statements<br />

made, although based on information<br />

believed to be reliable and accurate at<br />

the time, cannot be guaranteed and no<br />

fault or liability can be accepted for<br />

error or omission.<br />

Gunnamatta Media Pty Ltd strives to<br />

report accurately and fairly and it is our<br />

policy to correct significant errors of fact<br />

and misleading statements in the next<br />

available issue. Any comment relating to<br />

subjective opinions should be addressed<br />

to the editor where the opposing position<br />

will be published on the letters pages to<br />

encourage open debate. The publisher<br />

reserves the right to omit or alter any<br />

advertisement and the advertiser agrees<br />

to indemnify the publisher for all<br />

damages or liabilities arising from the<br />

published material.<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 11


NEWS<br />

Michael Hill hit by 20-second robbery<br />

While there have been a spate of daytime<br />

armed attacks on independent jewellery<br />

stores in Melbourne, it would appear that<br />

chain stores located in shopping centres<br />

are now also in the firing line.<br />

The Michael Hill store at Westfield Plenty<br />

Valley in Mill Park was robbed just before<br />

midday on March 14.<br />

CCTV footage showed four people smashing<br />

display glass cabinets and filling bags with<br />

jewellery before fleeing the shopping centre<br />

in an alleged stolen vehicle. The incident<br />

took about 20 seconds and the robbers<br />

were reportedly armed with hammers.<br />

A Victoria Police statement issued on March<br />

17 confirmed that four men aged between<br />

19 and 27 years old were arrested in relation<br />

to the alleged armed robbery and car theft.<br />

At the time of publication, detectives were<br />

searching for a fifth man in relation to the<br />

armed robbery.<br />

The incident follows a series of brazen<br />

heists taking place at independent jewellery<br />

businesses across Melbourne in <strong>2017</strong>.<br />

Victoria Police did not respond to <strong>Jeweller</strong>’s<br />

request for comment regarding whether<br />

the Michael Hill incident was related to<br />

these previous jewellery store robberies.<br />

Institute to revive specialised skills<br />

A new jewellery institute has opened in<br />

an effort to provide the local industry with<br />

greater access to specialised skills training.<br />

The Sydney-based <strong>Jeweller</strong>y Institute of<br />

Australia (JIA) offers short training courses<br />

with a focus on hand engraving, diamond<br />

setting, micro-pave setting, 3D CAD design<br />

and laser welding.<br />

According to founder Gabriel Owen, the JIA<br />

was established because he saw a gap in the<br />

market for a school where jewellers could<br />

advance their skills in niche areas.<br />

“After attending the Alexandre School<br />

for Optical Diamond Setting in Belgium, I<br />

started to look into teaching organisations<br />

WORK BENCHES IN THE JIA TRAINING ROOM<br />

here in Australia,” Owen explained. “I found<br />

that there were no advanced classes for<br />

micro-pave setting and hand engraving.”<br />

In addition to conducting his own courses,<br />

Owen said ‘masters’ would also teach classes.<br />

‘Significant’ synthetics discovery<br />

IN BRIEF<br />

*<br />

DIGITAL JEWELLERY LESSONS<br />

Research company L2’s latest annual<br />

Digital IQ Index: Watches & <strong>Jeweller</strong>y<br />

report detailed the digital strengths and<br />

weaknesses of 70 watch and jewellery<br />

brands. Tiffany & Co and Cartier were the<br />

only companies to receive the highest<br />

score of ‘genius’ status; 16 placed in the<br />

second best category of ‘gifted’, including<br />

Swarovski, Pandora and Alex and Ani.<br />

*<br />

$10,000 JAA DONATION<br />

The JAA has received a $10,000<br />

anonymous donation to be used in<br />

support of a student or apprentice<br />

jeweller. A JAA statement read: “The<br />

donation came with a request that the<br />

JAA put the funds towards an initiative<br />

that fosters the skills and talent of an<br />

entrant to a Student/Apprentice category<br />

at the <strong>2017</strong> JAA <strong>Jeweller</strong>y Awards.”<br />

*<br />

AUSSIE MAKES PARIS DEBUT<br />

Australian jewellery graduate Jessica<br />

McMaster garnered international<br />

exposure following the unveiling of her<br />

collection at an exhibition held during<br />

Paris Fashion Week. The N°10 Showroom<br />

has been described as a platform to assist<br />

emerging designers and is attended<br />

by buyers of independent fashion and<br />

accessory stores and department stores.<br />

*<br />

RARE GREEN DIAMONDS<br />

Merlin Diamonds has announced the<br />

discovery of five green diamonds – the<br />

largest weighing 1.4 carats – at the Merlin<br />

diamond mine. This follows news of a<br />

35.26-carat brown rough being found in<br />

January <strong>2017</strong> and a 0.124-carat blue stone<br />

being found in December 2016.<br />

The Gemological Institute of America (GIA)<br />

recently uncovered a ‘significant’ amount<br />

of undisclosed synthetic melee diamonds<br />

mixed with natural melee stones.<br />

A GIA spokesperson confirmed to <strong>Jeweller</strong><br />

that almost one third of the diamonds in<br />

a parcel submitted to the organisation’s<br />

Melee Analysis Service in Mumbai, India<br />

were chemical vapour disposition (CVD)<br />

synthetic stones.<br />

GIA director of research and development<br />

Wuyi Wang told the Rapaport Group’s<br />

diamonds.net that the GIA regularly<br />

identified small quantities of undisclosed<br />

synthetic melee diamonds in parcels<br />

submitted for analysis; however, he stated<br />

this was the first time “such a significant<br />

percentage” of CVD melee mixed with<br />

natural melee had been found.<br />

No further details on what had transpired<br />

since the discovery were provided.<br />

+ MORE BREAKING NEWS<br />

JEWELLERMAGAZINE.COM<br />

*<br />

ICONIC STORE CLOSES<br />

Melbourne jewellery store Kozminsky<br />

has closed after 165 years of operation,<br />

with remaining stock selling at a Leonard<br />

Joel auction. The $1.23 million sale was<br />

reportedly the most valuable singleowner<br />

jewellery auction held in Australia.<br />

The highest-selling items were a sapphire<br />

and diamond ring and an art deco riviere<br />

necklace, which each sold for $27,280.<br />

12 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


NEWS ANALYSIS<br />

Investigating<br />

the jewellery<br />

landscape<br />

A QUALITATIVE STUDY OF AUSTRALIAN JEWELLERS HAS REVEALED A NUMBER<br />

OF INSIGHTS ABOUT THE STATE OF THE INDUSTRY. EMILY MOBBS REPORTS.<br />

hile many would agree that the retail industry has never been<br />

easy, it would appear that recent market conditions have been<br />

particularly difficult. There will always be businesses that perform<br />

well above trends but general consensus from research conducted<br />

by various industry organisations as well as anecdotal evidence suggests that<br />

retail trading, and specifically that for jewellery stores, has been flat at best.<br />

As <strong>Jeweller</strong> reported in February this year, feedback from a cross-section of<br />

the industry revealed that Christmas trading in 2016 was on par with, or just<br />

below, that of 2015. In addition, most jewellers and industry organisations did<br />

not believe conditions would change in <strong>2017</strong> – the ‘new normal’ was a phrase<br />

constantly used.<br />

In order to gain a better understanding of the state of the industry, <strong>Jeweller</strong><br />

recently conducted an in-depth qualitative survey involving 200 Australian<br />

jewellery retailers.<br />

The survey was comprehensive, polling jewellers with a wide range of stores<br />

nationally. Retailers were asked about a series of issues including business<br />

turnover and profitability as well as industry challenges.<br />

RESEARCH RESULTS REVEALED<br />

Supporting <strong>Jeweller</strong>’s earlier reports about trading results during the festive<br />

period was the fact that of those surveyed, approximately 42 per cent stated<br />

their Christmas and New Year trading in 2016/<strong>2017</strong> had decreased compared<br />

with the corresponding period the year before (See Chart 1 on page 14).<br />

Only 29 per cent of respondents said trading had increased, while a similar<br />

number indicated it was the same as the previous year.<br />

Taking a longer-term view, Chart 2 on page 14 shows that about one third<br />

of jewellers had increased annual revenue over the past three years; however,<br />

the more concerning figure was the greater number – 66.5 per cent – who<br />

said annual revenue had remained the same or decreased, at 32.5 and 34 per<br />

cent respectively.<br />

The results in Chart 3 on page 14 are noteworthy, recognising that a business’<br />

profitability can decrease at the same time that its annual revenue increases.<br />

When asked about their store profitability over the past three years, almost 73<br />

per cent of jewellers stated that profitability had decreased or remained the same,<br />

whereas about 27 per cent believed their profit had increased.<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 13


NEWS ANALYSIS<br />

CHART 1. QUESTION: WHEN THINKING ABOUT YOUR CHRISTMAS/NEW YEAR TRADING<br />

IN 2016/<strong>2017</strong> COMPARED TO THE PREVIOUS YEAR, HAS IT…<br />

Most interesting was how few people nominated ‘cheap imports’ as a major<br />

challenge, something that would arguably have gained more prominence<br />

five to 10 years ago.<br />

DECREASED<br />

41.75%<br />

29.13%<br />

29.13%<br />

INCREASED<br />

SAME<br />

What’s more, retail leasing costs and landlord negotiations – which has<br />

traditionally been a challenging issue for jewellers – was not highly mentioned.<br />

PROVIDING ADDITIONAL INDUSTRY ANALYSIS<br />

While <strong>Jeweller</strong> acknowledges the survey results can be interpreted in different<br />

ways and may only represent a snapshot of the industry, further analysis<br />

conducted by software and consulting business Retail Edge Consultants (REC)<br />

showed similar findings.<br />

CHART 2. QUESTION: WHEN THINKING ABOUT YOUR TRADING OVER THE PAST THREE<br />

YEARS, DO YOU THINK ANNUAL REVENUE HAS...<br />

Michael Dyer, sales manager of REC, said the data of more than 300 stores in<br />

Australia and New Zealand that REC monitored indicated that although there<br />

were businesses reporting same trading or increased trading during the most<br />

recent Christmas and New Year period, the overall findings showed a decrease<br />

on the previous year.<br />

DECREASED<br />

33.98%<br />

33.50%<br />

32.52%<br />

INCREASED<br />

SAME<br />

Dyer also explained that REC’s analysis found an overall increase in sales dollars<br />

during the 2014 and 2015 calendar year but a 1 per cent to 2 per cent decrease<br />

in the 12-month comparison between the 2015 and 2016 calendar year.<br />

In terms of gross profit dollars, Dyer stated that an overall increase was recorded<br />

in the 12 months between the 2014 and 2015 calendar year, while a 2 per cent<br />

to 3 per cent decrease occurred between the 2015 and 2016 calendar year.<br />

When asked how he would describe the current local jewellery retail landscape,<br />

Dyer said ‘challenging’; however, added that there would always be some retailers<br />

who saw opportunity where others saw adversity.<br />

CHART 3. QUESTION: WHEN THINKING ABOUT YOUR BUSINESS PROFITABILITY OVER<br />

THE PAST THREE YEARS, DO YOU THINK IT HAS…<br />

He believed that the internet was arguably the latest major disruptor in the<br />

industry since the introduction of GST, and while most retailers weren’t averse<br />

to adapting to change, there was no denying that the pressure of continuity and<br />

shortening frequency of changes were making conditions increasingly difficult.<br />

DECREASED<br />

34.47%<br />

27.18%<br />

INCREASED<br />

“Retail has and always will be challenging; there are no ‘free rides’,” Dyer said,<br />

adding, “Whilst the retail outlets – in the world of bricks or clicks – grow at a<br />

rate greater than the population and its ability to consume product, there will<br />

be more migration of sales rather than overall growth.”<br />

38.35%<br />

SAME<br />

According to Dyer, the consulting side of REC had recently increased and the<br />

main business challenges currently highlighted by clients included generating<br />

sales while preserving margin, as well as controlling stock levels.<br />

The interesting observation comes about when comparing Chart 2 and<br />

Chart 3 – 33.5 per cent of those surveyed stated they had increased annual<br />

revenue over the past three years, while only 27 per cent had become more<br />

profitable during the same period. Increased revenue does not always translate<br />

into increased profitability.<br />

The survey also polled jewellers on the biggest challenges impacting business,<br />

and perhaps not surprisingly, many respondents were concerned about the<br />

effect of the internet. Although this question was free-form – multiple choice<br />

answers were not listed – about 63 per cent of those surveyed nominated the<br />

internet as the biggest challenge impacting business.<br />

Competition, the economy and a decrease in demand for jewellery – including<br />

changing spending preferences and a cautious spending mentality – rounded<br />

out the top four challenges faced by jewellery retailers.<br />

NEW CHALLENGES FOR CONSIDERATION<br />

Dyer added that stock management was now more complex because consumers<br />

expected to receive product on their terms.<br />

“Historically, retailers may have stopped buying stock to ‘trade’ their way out<br />

of cash flow issues,” he said. “[However] in a consumer market that is very ‘now’<br />

driven, being out of fast-seller, consumer-demand product could inadvertently<br />

push customers to competitors.<br />

“Fast-sellers are oxygen to the sales and cash flow of a retail business, and if you<br />

don’t have them that won’t stop customers buying them, it will just stop them<br />

buying them from you.”<br />

The challenges facing the jewellery retail industry are varied, and if Dyer’s analysis<br />

and the results from <strong>Jeweller</strong>’s survey are any indication, store owners and<br />

managers would be wise to recognise that the ‘new normal’ has changed the<br />

business landscape, which, in turn, will require a review of existing practices. i<br />

14 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


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The La Fleur Ave del Paraiso watch has a Swiss quartz<br />

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JOS VON ARX<br />

Jos Von Arx has added new sterling silver-plated<br />

cufflinks to its range. The offering comprises<br />

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A freshwater pearl takes centre stage in the<br />

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PERNILLE<br />

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These 18-carat yellow goldplated<br />

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OUMA CHAIN<br />

This sterling silver Elegance bracelet consists of<br />

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Heart shapes are fashioned to dangle from the<br />

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PASTICHE<br />

The Desire two-tone cuff and Azalea bangle are<br />

from the Henna collection. The pieces are rose<br />

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of the range. Visit: pastiche.com.au<br />

16 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


WEST END COLLECTION<br />

18 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


FASHION WATCHES<br />

On<br />

on<br />

time and<br />

trend<br />

THE UBIQUITOUS FASHION WATCH IS AS POPULAR AS EVER BUT IT’S CRUCIAL<br />

FOR JEWELLERS TO STAY IN TUNE WITH MARKET SHIFTS TO ENSURE THIS<br />

RELIABLE ITEM REMAINS LUCRATIVE. ANGELA TUFVESSON REPORTS.<br />

n jewellery circles, the fashion watch is somewhat of an anomaly –<br />

it isn’t timeless; it’s not immune to passing fads; it’s not passed down<br />

through generations. Instead, the fashion watch is unashamedly a sign of<br />

the times, a trend vehicle that uses lifestyle cues to project identity and<br />

it seems consumers can’t get enough of these affordable timepieces.<br />

Over the past few years, there has been an upward shift in consumer<br />

demand for fashion watches characterised by understated styles.<br />

The brash, blingy watches of the past have been replaced by sleek, simple<br />

designs that reflect authentic lifestyles. This trend shows no signs of abating<br />

so it’s essential that jewellers keep up with subtle market changes that are<br />

altering the way consumers purchase fashion watches.<br />

Here’s a taste of what’s in store for fashion watches.<br />

CONSUMER DEMAND<br />

Sleek, utilitarian designs from the likes of Daniel Wellington are as popular<br />

as ever, according to John Rose, general manager of West End Collection,<br />

which distributes the brand along with others including Christian Paul<br />

and Olivia Burton.<br />

“There is no doubt that the ‘bling’, which was so popular a few years back,<br />

is no longer on trend,” Rose says. “Simple, classic styling is where the market<br />

is experiencing its greatest success at the moment. Daniel Wellington<br />

embodies classical minimalism perfectly.”<br />

Indeed, Rose notes that Daniel Wellington achieved a 56 per cent increase<br />

in sales in Australia and New Zealand in 2016.<br />

The versatility inherent in simple designs is a major selling point of fashion<br />

watches, states Simon Garber, director of Cluse distributor Heart & Grace.<br />

“Classic minimalist styles seem to be more popular than ever,” Garber<br />

says. “The versatility of simple design is key and, with colour-coordinated<br />

interchangeable straps in leather or stainless steel mesh, there is the appeal<br />

of being able to match with any outfit and style.”<br />

David Faraday, managing director of Oozoo Timepieces and Dukudu<br />

distributer Hipp, agrees.<br />

“Because they’re classic and versatile, [fashion watches are] able to be worn<br />

with a greater variety of outfits. They make a strong statement about the<br />

wearer’s good taste while still being understated,” he says.<br />

Of course, the market isn’t stagnant and there are noticeable changes in<br />

some areas.<br />

“There’s been a shift towards more variations in colour, textures and<br />

materials such as mother of pearl and coloured leather straps,” Faraday adds.<br />

Jeanette Sceats, managing director of Pierre Cardin supplier Instyle Watches,<br />

says although understated, simple styles remain strong, the brand’s latest<br />

iterations have been injected with stylish accents.<br />

“The minimalist, chic-yet-simple watch has continued to take the lead in<br />

the market,” Sceats states, adding, “Pierre Cardin watches have evolved these<br />

particular styles with mirrored dials and crystal accents.”<br />

Rose says the most significant new trend that has occurred in the past 12<br />

months is the emergence of patterned dials, which can be seen in brands<br />

such as Olivia Burton and Ted Baker.<br />

“This new feminine take on watch design is influenced by floral patterns that<br />

top designers are showing on catwalks in New York, Paris and London,” he<br />

explains. “It gives the watch a personal touch and exemplifies the concept that<br />

a watch is a fashion accessory and an expression of your own personal style.”<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 19


INSTYLE WATCHES<br />

HEART & GRACE<br />

At the other end of the spectrum, Sceats<br />

says gender-neutral styles are also popular.<br />

“<strong>Jeweller</strong>s are focusing on more of a unisex<br />

style – styles that have that ability to cross<br />

over from male to female are striking in<br />

minimalistic design with a point of detail. This<br />

also opens the style to a broader audience.”<br />

SIZE MATTERS<br />

Big isn’t always better and, along with<br />

stocking sleek and simple designs, Garber<br />

says jewellers should pay particular attention<br />

to changing size preferences, especially<br />

among women’s watches.<br />

“Over the past year, we’ve noticed the<br />

beginning of a move from the popular,<br />

oversized women’s watch to smaller styles,”<br />

he explains. “The shift began with fashionforward<br />

designers primarily in Europe, and<br />

now we see them becoming more popular<br />

in the wider market here in Australia and<br />

New Zealand.<br />

“As there is increasing demand for smaller<br />

faces in fashion watches, it’s important<br />

jewellers offer the most popular colour<br />

combinations in the smaller face sizes as<br />

well as the proven oversized styles.”<br />

Garber says Cluse offers two smaller<br />

variations to the popular 38 mm diameter<br />

case: 33 mm and 24 mm.<br />

Ken Abbott, managing director of<br />

Timesupply, which distributes Danish<br />

Design and Jacob Jensen, agrees.<br />

metal or mesh bracelets for women.<br />

GOING SOCIAL<br />

No discussion about fashion watches is<br />

complete without mentioning the industry’s<br />

most significant branding tool: Instagram.<br />

It’s hard to remember how suppliers and<br />

retailers marketed to the masses before the<br />

advent of the photo-sharing behemoth.<br />

“For the younger generation, Instagram is<br />

the new Westfield – consumers look to<br />

Instagram to be inspired, informed and to<br />

shop,” says Phil Edwards, managing director<br />

of Duraflex Group Australia, which distributes<br />

brands including Jag, Police and Thomas<br />

Sabo. Along with a desire for personalisation<br />

and status, Edwards says Duraflex has<br />

identified technology as one of the biggest<br />

trends influencing the choices consumers<br />

make about fashion watches.<br />

Larry Porter, CEO of Ice Australasia, which<br />

distributes Ice-Watch and Henry London,<br />

says social media platforms like Instagram<br />

are powerful because they create brand<br />

awareness as well as boost sales.<br />

Just as consumer preferences and watch<br />

styles change, so too does the way<br />

consumers use Instagram. Claire Beale,<br />

program manager of the Bachelor of Arts<br />

(Textile Design) at RMIT University, says<br />

endorsements by average people – or<br />

minor celebrities who purport to be vaguely<br />

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“Watch diameters have stabilised at a<br />

more user-friendly size and we are seeing<br />

increased sales with Danish Design in<br />

smaller-sized cases, particularly for women’s<br />

watches,” he says.<br />

To keep up with this trend, Abbott suggests<br />

jewellers carry 40 mm case sizes for men<br />

and women in a variety of styles and colours,<br />

along with a collection of smaller cases with<br />

TIMESUPPLY


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DURAFLEX GROUP AUSTRALIA<br />

HIPP<br />

average – increasingly carry more weight<br />

now than paid celebrity endorsements.<br />

“Social media is replacing a whole lot of other<br />

traditional marketing channels,” Beale says.<br />

“People are living the life and self-reporting<br />

what they like, and it’s something that<br />

consumers are much more likely to put trust<br />

in and believe.<br />

“A platform like Instagram that focuses on<br />

quality images and short text seems more<br />

reliable as something you can interpret<br />

yourself. If you’re following someone on<br />

Instagram that you really like and they say<br />

they got a fantastic new watch last week,<br />

you’re already picturing yourself as being<br />

part of that person’s lifestyle.”<br />

Indeed, when model Kendall Jenner<br />

posted an image of herself wearing a<br />

Daniel Wellington watch to her 75 million<br />

Instagram followers, the image received<br />

2.7 million likes and 113,700 comments.<br />

The result? West End Collection sold out<br />

of the timepiece within 24 hours.<br />

Closer to home, Rose says Australian brands<br />

such as Christian Paul, which has a ‘huge’<br />

local social media following, are also able<br />

to influence consumer behaviour directly<br />

through Instagram.<br />

“Christian Paul reaches over one million<br />

of their target market through their social<br />

network for a product launch, which leads<br />

to immediate sales at store level,” he says.<br />

As for other popular forms of social media,<br />

Faraday says Facebook is still relevant<br />

and Snapchat is huge with the younger<br />

demographic but Instagram should be the<br />

top priority for retailers.<br />

“Social media and especially Instagram is<br />

key in reinforcing trends,” he states.<br />

LOOKING AHEAD<br />

Looking further ahead, Beale says external<br />

factors are likely to have a significant impact<br />

on how consumers make purchasing<br />

decisions about fashion watches.<br />

Crucially, she says a global shift towards<br />

conservatism is driving a sense of nostalgia<br />

for the past. This is resulting in less appetite<br />

for edgy designs or watches that step outside<br />

the status quo.<br />

“If you look at what’s going on in the world<br />

economically and politically, we’re quite<br />

destabilised,” she says.<br />

“It’s a pattern we saw in the last recession and<br />

after the fall of communism, cycles in history<br />

where long-established ways collapsed and<br />

we become uncertain about the future. When<br />

this happens, consumers become distrustful<br />

of the unusual, which means designers are<br />

less likely to take risks.”<br />

Consumers are likely to favour strong design,<br />

simplicity and affordability, which Faraday<br />

says is good news for jewellers selling<br />

fashion watches.<br />

“Money is generally<br />

tighter these days<br />

and consumers are<br />

conscious of their<br />

spending, which propels<br />

them towards fashion<br />

watches that can deliver<br />

the look of the day<br />

and help consumers<br />

accessorise and refresh<br />

their outfit with<br />

relatively little expense,”<br />

he says. “You get a lot of<br />

fashion bang for your<br />

buck with a well-chosen<br />

fashion watch.” i<br />

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OPAL REPORT<br />

DF OPALS<br />

An opal<br />

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AFTER YEARS OF<br />

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BE RECEIVING REVERED<br />

FAME AND STATUS AMONG<br />

AUSTRALIANS? EMILY<br />

MOBBS INVESTIGATES.<br />

pal has caused division within the industry for years. It’s a regular fixture<br />

in the jewellery collections of high-end luxury brands and often resides<br />

in the pages of magazines and online style editorials, yet has been<br />

relegated in Australia to ‘tacky’ tourist stores and duty-free outlets.<br />

Aussies might be known for their patriotism but they are reluctant to embrace<br />

their national gemstone. That is until now, according to Atheka Le Souëf, director<br />

of Melbourne-based retail store Lightning Ridge Opal Mines.<br />

“The gemstone has actually become a lot more popular with Australians and<br />

there has definitely been an increase in opal sales within the local market over<br />

the past four years,” Le Souëf states, specifically citing black and boulder opal in<br />

both finished jewellery and loose gemstones as good sellers.<br />

Le Souëf attributes this surge in demand to recent media exposure: “There was a<br />

lot of media attention probably about four years ago and I think that heightened<br />

the profile of opal within the local market.”<br />

Scott Coggan, manager and opal cutter at Sunshine Coast-based Opals Down<br />

Under, agrees.<br />

“Over the past six to seven years our domestic sales have increased enormously,”<br />

he explains.<br />

Coggan, who acknowledges that the business has invested in significant<br />

marketing during this time, says opal engagement rings are a standout,<br />

particularly with consumers aged around 25 to 30 years old.<br />

“I think the younger generation is looking for an individual piece rather than the<br />

standard diamond,” he says, adding, “Opal is a softer gemstone so what many<br />

are doing is wearing their wedding ring on an everyday basis and treating their<br />

engagement rings more like a dress ring.”<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 25


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Coggan also comments on the popularity of<br />

free-form boulder opal pendants set in gold.<br />

It’s not only opal specialist retailers who<br />

are noticing a rise in demand. Rick Stearns,<br />

director of Stearns Showcase <strong>Jeweller</strong>s in<br />

Bendigo, Victoria, says he has also noticed<br />

an increased interest in opal jewellery in<br />

the past two years.<br />

Stearns has sold opal jewellery for about<br />

30 years but admits he only recently started<br />

giving the category special attention.<br />

Unsurprisingly, it was at this time that<br />

demand surged.<br />

“We saw an opening,” he states. “No one<br />

else was doing it because a lot of jewellers<br />

just don’t carry opal but, once we started<br />

to expand the range, the market just grew.”<br />

Stearns says expanding his product variety<br />

played a big role in stimulating sales: “You<br />

can’t sell what you don’t have. We weren’t<br />

selling a lot of opal in the past because we<br />

never had a lot of different pieces; however,<br />

once we put in a full range of it with<br />

earrings, pendants and rings, all of a sudden<br />

there was some interest.”<br />

The store carries the Firegem Australian<br />

Opal range, distributed by Paterson Fine<br />

<strong>Jeweller</strong>y. Stearns says all jewellery pieces<br />

in the range are popular but adds that ring<br />

sales are particularly higher than what they<br />

have been in the past.<br />

OTHER OPTIONS<br />

Black and boulder opal remain firmly<br />

ingrained in this gemstone’s narrative but<br />

triplet opal – typically defined as a thin<br />

slice of opal sandwiched between a black<br />

backing and a clear dome-shaped capping<br />

– is also finding its niche, according to<br />

Paterson Fine <strong>Jeweller</strong>y managing director<br />

David Paterson.<br />

“We have been selling opal jewellery for<br />

more than 70 years and the demand has<br />

never been higher for us,” Paterson says.<br />

“Triplet opals have always been second<br />

cousins to the main market, featuring<br />

Australian boulder (QLD) and black opal<br />

(NSW); however, these gemstones have<br />

become very popular in Europe and<br />

Asia and the prices have been driven up<br />

accordingly,” he explains.<br />

Paterson says price rises have meant more<br />

expensive pieces are now often out of the<br />

realms of the independent retailer, thus<br />

giving rise to a greater popularity and<br />

demand in triplet opals.<br />

“Boulder and black opals will always have<br />

their strong place in the market, especially<br />

for custom-made pieces, but triplet opal<br />

jewellery is now much more common in<br />

readily-available stock and retail collections,”<br />

he states.<br />

Dennie Fickling, director of DF Opals,<br />

suggests doublet opal – comprising a slice<br />

of opal with a black backing – is another<br />

option for retailers to consider.<br />

“Doublet opal is a good entry-level opal<br />

piece for the first-time opal buyer,” Fickling<br />

explains, adding, “I have had customers<br />

that have purchased a doublet opal piece<br />

and then later they want a solid, natural<br />

piece. I think doublet opals are very good<br />

as long as they are looked after and are<br />

sold as doublet opals.”


Fickling, who he has been selling loose opals for a “long time” and<br />

began selling boulder and doublet opal jewellery about five years<br />

ago, says most of his loose opal stock is sold overseas but adds that<br />

he is starting to sell more jewellery in Australia.<br />

“I don’t really know why this is the case,” he states. “I think the<br />

jewellery store owners are starting to give opal a go and it seems<br />

to be working.”<br />

INVEST IN KNOWLEDGE<br />

Le Souëf says jewellers stocking or considering opal jewellery<br />

need to appreciate the importance of investing in education.<br />

“Opal is not like a diamond that can be easily quantified; opal can<br />

be quite subjective in a lot of ways so you do need quite a lot of<br />

experience to correctly identify it and value it in order to sell it<br />

properly,” she says, warning that incorrect valuations can damage<br />

the industry. “If people are sold an item they think is worth a lot<br />

of money when actually it isn’t, this will have a negative impact<br />

on the image of opal.”<br />

One supplier focusing on educating retailers and the endconsumer<br />

is Opals Australia, which has a branded-jewellery offering<br />

comprising more than 1,000 jewellery designs in 18-carat gold,<br />

14-carat gold and sterling silver.<br />

According to Opals Australia national accounts manager Clayton<br />

Peer, the main reason for developing a brand as opposed to selling<br />

unbranded product is because it is one of the most effective ways<br />

to provide education about Australian opal jewellery.<br />

Peer says Opals Australia stockists receive numerous support tools<br />

and services to help increase sales.<br />

“These include, but are not limited to, a variety of display stands,<br />

fantastic easy-to-follow training materials for staff education, a large<br />

selection of professional photography to be used as advertising<br />

support and a website that holds thousands of jewellery designs for<br />

easy ordering,” he explains.<br />

Peer adds that Opals Australia’s range performs well in the Australian<br />

opal-producing regions of<br />

Lightning Ridge and Coober<br />

Pedy where “Baby Boomers are<br />

experiencing the many sights that<br />

Australia has to offer”.<br />

He admits that there is still a large<br />

PATERSON FINE JEWELLERY


THE WORLDS<br />

MOST ELITE<br />

& INCLUSIVE<br />

OPAL EXPERIENCE<br />

SHOWCASING THE<br />

EXQUISITNESS OF<br />

AUSTRALIA’S<br />

NATIONAL GEMSTONE<br />

The <strong>2017</strong> Exhibition presents an<br />

opportunity to view the largest and most<br />

amazing range of opal and opal jewellery<br />

seen in one attractive location.<br />

Thursday<br />

3rd August <strong>2017</strong><br />

9.00 am - 5.00 pm<br />

& Friday<br />

4th August <strong>2017</strong><br />

9.00 am - 4.00 pm<br />

Australian<br />

OPAL<br />

EXHIBITION<br />

QT Gold Coast<br />

7 Staghorn Avenue<br />

Surfers Paradise<br />

Queensland 4217<br />

Australia<br />

Opal fun facts<br />

Why not share these snippets with customers?<br />

n No two opals are identical; the proud<br />

owner can delight in the fact that their<br />

gemstone is unique<br />

n Opal is the official birthstone of<br />

October and is used to mark the 14th<br />

year of marriage<br />

n It is believed opal derived its name<br />

from the Roman word ‘opalus’<br />

n Opal is a form of hydrated silica<br />

number of jewellers and consumers who<br />

have little to no knowledge of Australia’s<br />

national gemstone.<br />

Maxine O’Brien, coordinator of the annual<br />

Australian Opal Exhibition and secretarymanager<br />

of the Lightning Ridge Miners’<br />

Association, believes it will take time before<br />

any opal publicity results in noticeable local<br />

retail sales.<br />

“The domestic market caters mainly to<br />

international tourists; however, I do believe<br />

opal has lost its negative connotations<br />

in Australia due to a rise in international<br />

jewellery designers using Australian opal<br />

and winning international awards,” she says.<br />

“Australian jewellery designers are creating<br />

beautiful works and this will hopefully<br />

translate into more sales over time,” O’Brien<br />

adds. “In the past, Australians related opal<br />

to a tourist souvenir and were never really<br />

exposed to high-end gemstones or fine<br />

opal jewellery but this is changing and<br />

social media will continue to have a<br />

n Australian opal was reportedly<br />

discovered by German geologist<br />

Johannes Menge in Angaston,<br />

South Australia in 1849<br />

n While found in small amounts from<br />

other countries such as Brazil, Ethiopia<br />

the US and Mexico, Australian opal is<br />

widely considered to be the finest<br />

and brightest in the world<br />

major impact as Australians come to<br />

appreciate the spectacular beauty of<br />

their national gemstone.”<br />

Similar to Coggan, Paterson states that<br />

young consumer demographics are<br />

spearheading the opal hype.<br />

“Our experience has been that the younger<br />

generation are leading the revival because<br />

of the colourful nature of the gemstone, the<br />

story that the gemstone has and its rarity,”<br />

he says. “It will always be a popular tourist<br />

product because 98 per cent of all opal is<br />

mined in Australia and the two per cent that<br />

is mined overseas has poor, incomparable<br />

colour. Also, new jewellery trends are all<br />

about colour and difference and what better<br />

gemstone to feature than Australian opals.”<br />

While opal jewellery might not be on the<br />

wish-list of every Australian right now,<br />

there’s no denying that tides are turning.<br />

<strong>Jeweller</strong>s would do well to pay this category<br />

some attention because, as Stearns says,<br />

“You can’t sell what you don’t have.” i<br />

TRADE ONLY<br />

Contact: Maxine O’Brien,<br />

Australian Opal Exhibition Inc.<br />

PO Box 731 Lightning Ridge<br />

NSW 2834 Australia<br />

T: 0427 920 474<br />

International<br />

T: +61 427 920 474<br />

F: +61 2 6829 0830<br />

E: mail@austopalexpo.com.au<br />

www.austopalexpo.com.au<br />

DF OPALS<br />

OPALS AUSTRALIA


Creating Timeless Memories<br />

PERSONALISED<br />

PENDANTS


FIRE OF AUSTRALIA<br />

Aussie opal<br />

on fire<br />

FIRE OF AUSTRALIA OPAL<br />

ONE OF THE WORLD’S MOST VALUABLE OPALS HAS JUST BEEN PLACED<br />

IN A NEW HOME. ANGELA TUFVESSON CHARTS THE JOURNEY OF THE FIRE OF<br />

AUSTRALIA FROM 1940S MINING MARVEL TO NATIONAL TREASURE.<br />

t was 1946, a time of post-war euphoria – Ben Chifley was Australia’s<br />

prime minister, King George VI headed up the monarchy and the baby<br />

boom was just beginning. After two world wars and the Great Depression,<br />

things were finally looking up.<br />

Opal miner Jack Bartram, a farmer who had been forced off his land during the<br />

depression, saw huge potential at the recently-discovered Eight Mile field in<br />

Coober Pedy, South Australia. He suggested his children and their families join<br />

him in the region to try their luck.<br />

Eight Mile proved to be a prolific field for many, including the Bartram family.<br />

The epitome of their success was the discovery by Jack’s son Walter Bartram of<br />

an almost 5,000-carat, 998-gram opal dubbed the Fire of Australia. According<br />

to the Federal Government’s Department of Communications and the Arts, the<br />

Fire of Australia is valued at an estimated $900,000 and believed to be the most<br />

valuable piece of rough opal in existence.<br />

The gemstone’s exceptional quality is said to be highlighted by its vibrant<br />

colour, which changes from green to yellow to red – a rare opal hue –<br />

depending on the angle from which it is viewed. There is no known example<br />

of another gemstone of this size consisting entirely of gem-quality opal, a<br />

statement released by the Department of Communications and the Arts notes.<br />

“Even though there have been large finds in other areas, this was the initial<br />

and most significant find in the opal industry in South Australia at that time,”<br />

says Walter’s son Alan Bartram, who also works in the family trade. “It was quite<br />

shallow ground and they were able to mine virtually from the surface<br />

down to about 14 feet.”<br />

THE BARTRAM FAMILY TRIUMPH<br />

Alan Bartram states most people working in the area were successful to some<br />

extent; however, his family was ‘very’ successful.<br />

“[Artist and author] Jack Absalom, in one of his programs, referred to the Bartram<br />

brothers at the Eight Mile at Coober Pedy taking it [opal] away in banana crates<br />

at that time,” he says. “To some extent that wasn’t too exaggerated.”<br />

The Fire of Australia remained untouched, apart from the polishing of two faces<br />

to reveal its quality, and in the Bartram family for the next 70 years.<br />

Alan Bartram explains that the gemstone was initially kept in his parent’s house<br />

before it was placed on display in the family’s former jewellery store The Opal<br />

Mine in Adelaide. The opal also spent time in a bank safety deposit.<br />

Following Walter Bartram’s death and after witnessing the increasing popularity<br />

of the opal in overseas exhibitions, the family decided to transfer it to the South<br />

Australian Museum in Adelaide early this year for a ‘reduced’ rate of $500,000.<br />

The goal was to secure the opal’s legacy in Australia and prevent it from<br />

overseas buyers who might cut it into smaller gemstones.<br />

“In thinking about why we retained it, it was more or less the centre of our<br />

business,” Alan Bartram says. “It’s an inspiring piece and, although I’ve been<br />

30 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


a trader for 55 years and I’ve been exposed<br />

to an awful lot of opal in that time, nothing<br />

has exceeded this one.<br />

“We are very happy the South Australian<br />

Museum could purchase the Fire of<br />

Australia opal at a much-reduced rate. It<br />

was what we wanted because it is so South<br />

Australian and it reflects the outstanding<br />

nature of this piece.”<br />

Unsurprisingly, South Australian Museum<br />

mineral collections manager Ben McHenry<br />

is pleased with the latest acquisition, which<br />

was made possible by a $455,000 Federal<br />

Government grant.<br />

“South Australia is known as the opal<br />

capital of the world because we have<br />

produced up to 80 per cent of the world’s<br />

precious opal, so it’s quite important for the<br />

South Australian Museum to actually have<br />

representative material of our state and<br />

national gemstone,” McHenry explains.<br />

“It’s the finest piece of quality opal rough<br />

found in existence,” he says of the Fire of<br />

Australia, “and it’s an Australian national<br />

treasure. It’s for all Australians to see<br />

whereas, if it were in private hands, it would<br />

be sitting in somebody’s safe somewhere. It<br />

would be a shame if something as amazing<br />

as this was kept out of the public domain.”<br />

McHenry states the Fire of Australia was<br />

hugely popular among the general public<br />

at a recent exhibition conducted by the<br />

museum and also enjoyed pride of place<br />

in the museum foyer until the end of<br />

February. The gemstone now resides in the<br />

museum’s permanent opal collection.<br />

NATIONAL TREASURES<br />

Of course, Australia is blessed with opal<br />

riches and the Fire of Australia is not the<br />

country’s only celebrated gemstone.<br />

The Olympic Australis, which was also<br />

unearthed at Eight Mile field and is now<br />

housed in Sydney store Altmann and<br />

Cherny, is reported to be the largest and<br />

most valuable gem-quality opal ever found.<br />

It weighs 3.45 kg and 17,000 carats and was<br />

valued at $2.5 million in 2005.<br />

McHenry says the Bartram family’s legacy<br />

complements the museum’s other treasure,<br />

the Virgin Rainbow, which is said to be the<br />

world’s most valuable cut and polished opal.<br />

“It’s nice to have two of the best pieces of<br />

opal ever found, [and we hope] to have<br />

an opal gallery here at the museum in the<br />

future,” he says.<br />

There’s no doubt opals and opal jewellery<br />

have battled negative connotations<br />

in Australia but Wayne Sedawie, a<br />

spokesperson for the Opal Association,<br />

says public display of the Fire of Australia<br />

will help to improve the perception and<br />

value of opals locally.<br />

“Opals mostly go to America, China, Russia<br />

and lots of other countries but not Australia,”<br />

he says. “Having and promoting this opal<br />

is brilliant; it’s educational for Australians<br />

as they don’t know about opals. The<br />

compound effect of putting it on display<br />

for the public means people will talk about<br />

it and may decide to visit Coober Pedy and<br />

possibly buy opals.”<br />

As any jeweller selling any kind of<br />

gemstone knows, this is a rare imagebuilding<br />

trifecta. i<br />

ALAN BARTRAM ON BARTRAM ST, COOBER PEDY<br />

THE FIRE OF AUSTRALIA IS PRIZED FOR VIBRANCY<br />

SamsGroup.com.au<br />

Sale@samsgroup.com.au<br />

02 9290 2199


PARTING<br />

ways with the JAA<br />

THIS MONTH MARKS THE END OF JEWELLER’S<br />

20-YEAR RELATIONSHIP WITH THE JAA. HERE,<br />

COLEBY NICHOLSON EXPLAINS WHY THE FINANCIAL<br />

BACKING OF THE ASSOCIATION WILL NOT CONTINUE.<br />

fter 20 years of ‘sponsoring’ the <strong>Jeweller</strong>s Association of Australia (JAA),<br />

Gunnamatta Media, publisher of <strong>Jeweller</strong>, has decided to not renew its<br />

publishing contract. Given the magazine has supported the JAA since<br />

1996 with substantial financial backing, we believe it appropriate to<br />

provide an explanation for the reasons this course of action was taken.<br />

While two detailed explanations about the decision have been made on<br />

<strong>Jeweller</strong>’s website, it’s also important to publish a printed record.<br />

Since I launched Australian <strong>Jeweller</strong> – as it was known back then – more than<br />

two decades ago, the magazine has provided financial support to the JAA with<br />

cash and ‘in kind’ – marketing-related services, such as advertising space – to<br />

the tune of hundreds of thousands of dollars.<br />

Such sponsorship agreements for industry associations are not unusual; the JAA<br />

receives financial support from Marsh Advantage Insurance and, until last year, it<br />

also received substantial financial payment from Expertise Events, the organiser<br />

of the International <strong>Jeweller</strong>y Fair (IJF) and the Australian <strong>Jeweller</strong>y Fair.<br />

Each of these agreements began at a different time and for different reasons<br />

and yet each company would have made its decision in the belief that<br />

businesses that service an industry should also support that industry.<br />

I know the management of <strong>Jeweller</strong> believed that and I have no doubt Marsh<br />

and Expertise Events would have had similar views. Industry associations<br />

effectively have two major sources of income – membership fees, which<br />

represent their core activity, and sponsorship income in various forms. The job<br />

of an industry association is, first and foremost, to represent its members.<br />

With the current five-year contract concluding this month, the JAA requested<br />

to begin negotiations on a new agreement late last year.<br />

CONTINUING MEMBERSHIP DECLINE<br />

It’s no secret that <strong>Jeweller</strong>, and many others in the industry, have been<br />

concerned about the management and direction of the JAA for some time.<br />

All associations and businesses have blips along the way but the number of<br />

people who have raised concern about the JAA’s direction and some of its<br />

decisions has become too many to ignore.<br />

It’s also no secret that membership has been falling year-on-year to the extent<br />

that, according to the JAA’s own financial reports, at one point annual staff costs<br />

became greater than annual membership income.<br />

I have previously called for changes at the JAA – in late 2014, I wrote that the<br />

32 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


JAA CONTRACT<br />

previous two to three years had been an<br />

inglorious period for the JAA office and I<br />

called for an independent review of the CEO<br />

position following the decision not to renew<br />

the contract of former CEO Ian Hadassin.<br />

There was no independent review of the<br />

JAA office and structure. Instead, in June<br />

2014, the JAA appointed Amanda Hunter<br />

as its executive director.<br />

Hunter said she would “bring strong<br />

business skills to manage the organisation<br />

and take it forward strategically”.<br />

She added that, “Growing the JAA whilst<br />

helping the members also grow their<br />

businesses is very appealing and fits<br />

well with my past coaching and salesmanagement<br />

experience.”<br />

I acknowledged a few months into her<br />

tenure that Hunter had gotten off to a<br />

good start but also noted the strong<br />

industry expectation that a fresh-faced<br />

industry outsider was necessary to reunite<br />

a somewhat fractious industry and<br />

reinvigorate the trade.<br />

Nearly three years after Hunter’s<br />

appointment, where are we now?<br />

Well, membership continues to decline<br />

and many long-term retail and supplier<br />

businesses have deserted the JAA for a<br />

number of different reasons.<br />

A YEAR TO FORGET<br />

Looking back, last year did not start well.<br />

In February the JAA announced the 2016<br />

edition of its biennial Australasian <strong>Jeweller</strong>y<br />

Awards then cancelled them just one<br />

month later because of lack of sponsorship.<br />

It was an embarrassing decision because<br />

the JAA had two years to secure the<br />

sponsorship and failed, in part because<br />

the 2014 Awards night was not perceived<br />

as a glowing showcase of the industry. It<br />

should be noted that the JAA steadied and<br />

recently announced the <strong>2017</strong> Awards with<br />

a list of sponsors.<br />

Alas, worse was to come. In May, after a<br />

25-year affiliation with Expertise Events, the<br />

JAA informed the industry that it would run<br />

its own trade fair in direct competition with<br />

the Expertise Events show. Not only did the<br />

JAA walk away from a guaranteed $100,000<br />

in cash sponsorship plus additional noncash<br />

support, but its decision also caused<br />

a major rift among suppliers and retailers.<br />

Suppliers were now being asked to exhibit<br />

at two fairs on the same days in the same<br />

city to service the same buyers.<br />

Understandably, they were up in arms.<br />

Many complained that the JAA, a<br />

membership-based association, had<br />

overnight become a trade-fair business<br />

and were thereby putting member’s funds<br />

at risk with a large commercial venture.<br />

Additionally, several people asked whether<br />

the JAA had the resources or infrastructure<br />

to run a tradeshow given its small staff.<br />

It was a bold gamble because it meant<br />

the JAA must generate a substantially<br />

larger profit than $100,000 just to be in the<br />

same position with the Expertise Events<br />

sponsorship, and for which it had to do,<br />

effectively, nothing.<br />

A media release issued on May 23 about<br />

the ‘<strong>2017</strong> JAA <strong>Jeweller</strong>y Fair’ declared, “This<br />

landmark announcement is being delivered<br />

amidst great excitement, after detailed<br />

research, analysis and discussion by the<br />

JAA board and executive director.”<br />

That announcement started a legal battle<br />

between lawyers for the JAA and Expertise<br />

Events. In fact, having announced that it<br />

had “undertaken detailed research, analysis<br />

and discussion”, the JAA quickly had to<br />

rename its event ‘JAA <strong>Jeweller</strong>y Tradeshow’<br />

because of legal issues over the name.<br />

So much for detailed research and analysis!<br />

Suppliers and all three buying groups<br />

were rightly worried about the effect<br />

of the dispute on the then upcoming<br />

2016 Sydney IJF; Nationwide <strong>Jeweller</strong>s<br />

and Leading Edge Group <strong>Jeweller</strong>s both<br />

announced to members that the respective<br />

groups would make a decision about<br />

the <strong>2017</strong> trade fair after the 2016 Sydney<br />

show. Showcase <strong>Jeweller</strong>s had previously<br />

announced attendance at the JAA<br />

<strong>Jeweller</strong>y Tradeshow.<br />

Things went quiet for a few months leading<br />

up the 2016 IJF and then all hell broke<br />

loose once the fair concluded.<br />

On September 7, following extensive<br />

consultation with its members and<br />

suppliers, Nationwide declared that<br />

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JAA CONTRACT<br />

the only location appropriate for a jewellery fair was at the International<br />

Convention Centre, Darling Harbour – the site of Expertise Events’ IJF –<br />

rather than the former Sydney Showground, Moore Park – the site of<br />

the JAA <strong>Jeweller</strong>y Tradeshow.<br />

Leading Edge made a similar announcement the subsequent day.<br />

THE INDUSTRY FALLOUT BEGINS<br />

Although Nationwide announced its decision to members and suppliers<br />

late on September 7, it had informed the JAA earlier that day, ahead of the<br />

scheduled board meeting on September 8.<br />

This was done because Nationwide managing director Colin Pocklington was<br />

also a JAA board member and he felt it was important for the JAA to know<br />

about the decision before the board meeting to avoid any conflict of interest.<br />

Pocklington did not attend the board meeting, which allowed the board to<br />

freely discuss the ramifications.<br />

This is the point where the industry went into freefall. On the day of the<br />

board meeting, Pocklington reflected on the situation and his position as a<br />

board member and decided that it would be appropriate to resign to avoid<br />

any future conflict of interest, given that the JAA would need to focus on<br />

launching its new trade fair.<br />

Pocklington advised Hunter of his resignation on the morning of September 9.<br />

Later on that same day, Pocklington said he received email correspondence<br />

from the board that contained allegations about his professional reputation<br />

that he found “offensive”. He subsequently resigned from his other JAA<br />

positions on the Code Committee and National Industry Advisory Council.<br />

Legal action ensued.<br />

Not content with that outcome, the JAA issued a media release on September<br />

29 titled ‘JAA Board replies to resignation of director’.<br />

It alleged a “further conflict of interest” by Pocklington and was ‘signed’ by<br />

JAA president Selwyn Brandt, vice president Laura Sawade (now resigned)<br />

and executive director Amanda Hunter.<br />

Nationwide immediately consulted with its lawyers and then declared<br />

that Australasia’s largest buying group would quit the JAA after 25 years<br />

of continuous membership.<br />

This resulted in a wave of support for Pocklington and Nationwide from its<br />

members and well-known suppliers criticising the JAA and/or declaring they<br />

would also cancel their memberships. As many as 100 Nationwide members<br />

are also members of the JAA – well, at least at that time.<br />

In addition, many suppliers told me in confidence they could not believe<br />

the JAA’s attack on Pocklington and would also cancel their memberships.<br />

MAKING A FINAL DECISION<br />

This brought Gunnamatta Media to a point where we had to make a decision<br />

about whether we, as publisher of <strong>Jeweller</strong>, should continue to help finance and<br />

support an industry association that is not only in decline but also has split the<br />

industry with a series of misguided decisions.<br />

Prior to making a final decision, <strong>Jeweller</strong> undertook a qualitative survey of 200<br />

jewellery retailers – 100 JAA members and 100 non-JAA members – to help<br />

understand the state of the industry.<br />

The survey was extensive, polling jewellers about a wide range of issues<br />

including business turnover and profitability, challenges facing retailers – see<br />

page 13 – the issue of two jewellery trade fairs, as well as their views on the JAA.<br />

TABLE 1. QUESTION: The JAA is recognised and respected as an<br />

organisation for excellence and trusted leadership in the jewellery<br />

industry. Agree, disagree or undecided?<br />

TYPE AGREE DISAGREE UNDECIDED<br />

JAA MEMBER 62% 20% 18%<br />

NON MEMBER 43% 27% 30%<br />

OVERALL 52.43% 23.30% 24.27%<br />

TABLE 2. QUESTION: Thinking about your annual JAA membership fee,<br />

how would you describe it as value for money?<br />

VERY GOOD GOOD ACCEPTABLE POOR VERY POOR<br />

6.93% 27.72% 44.55% 18.81% 1.98%<br />

TABLE 3. QUESTION: Thinking about how the JAA supports your<br />

business, are you…<br />

VERY<br />

SATISFIED<br />

SATISFIED NEUTRAL DISSATISFIED<br />

VERY<br />

DISSATISFIED<br />

0.99% 37.62% 46.53% 10.89% 3.96%<br />

TABLE 4. QUESTION: Thinking about your JAA member benefits over<br />

the past three years, would you say they have…<br />

INCREASED SAME DECREASED<br />

15.84% 74.26% 9.90%<br />

TABLE 5. QUESTION: The JAA is my first point of contact for<br />

business advice?<br />

TYPE AGREE DISAGREE UNDECIDED<br />

JAA MEMBER 17% 80% 3%<br />

NON MEMBER 22% 68% 10%<br />

OVERALL 19.37% 73.91% 6.72%<br />

TABLE 6. QUESTION: The JAA is my first point of contact for best<br />

practice business advice?<br />

TYPE AGREE DISAGREE UNDECIDED<br />

JAA MEMBER 23% 72% 5%<br />

NON MEMBER 27% 63% 10%<br />

OVERALL 24.72% 67.57% 7.71%<br />

34 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


After collating and analysing the survey information, the results<br />

played a major part in the decision to end our 20-year financial<br />

sponsorship of the JAA.<br />

One notable finding, as outlined in Table 1, is the response received<br />

when asked about the Vision and Mission Statement listed on the JAA<br />

website. The results show that only 62 per cent of the JAA members<br />

surveyed agree that their own association is recognised and<br />

respected for excellence and trusted leadership.<br />

While it is unreasonable to believe that any industry association<br />

would achieve a 100 per cent ‘agree’ on such a question, surely the<br />

result should be above 90 per cent by anyone’s reckoning.<br />

Put another way, 38 per cent of its own members are undecided or<br />

do not agree that their professional association can be relied upon<br />

for excellence and trusted leadership in the jewellery industry.<br />

The figure is understandably worse among non-members, with only<br />

43 per cent agreeing with the statement. This means only half of the<br />

jewellery retailers surveyed believe the JAA is achieving its vision to<br />

be recognised and respected for excellence and trusted leadership.<br />

Recognising that statistics can be read in various ways, what should<br />

concern the JAA – given membership numbers are in decline – is<br />

that about 21 per cent of the JAA members surveyed view their<br />

membership fee as ‘poor’ or ‘very poor’ value for money, while about<br />

45 per cent rank it as ‘acceptable’, as shown in Table 2.<br />

Another question that should be a major concern for the JAA is<br />

that of those surveyed, less than 40 per cent of members are satisfied<br />

with how the JAA supports their business, as outlined in Table 3.<br />

These two results may go a long way to explaining the decline in<br />

membership in recent years.<br />

Finally, Table 4 shows that the majority of JAA respondents – 74 per<br />

cent – believe that there has been no significant change in member<br />

benefits over the past three years.<br />

What is outlined here is only some of the research conducted;<br />

other questions achieved similar results (see Table 5, Table 6 and<br />

jewellermagazine.com), and therefore, after extensive internal<br />

consideration and external consultation, Gunnamatta Media decided<br />

it could no longer support an association that is in continual dispute<br />

and disagreement with its own retail members, its own supplier<br />

members, its financial sponsors and even its own board members.<br />

The money we will save on JAA sponsorship played no part in<br />

the decision and over the coming months we will be looking to<br />

re-divert our financial sponsorship dollars to another cause, perhaps<br />

supporting jewellery apprentices.<br />

The JAA’s ‘perfect storm’ did not happen overnight, or even over<br />

the past 12 months; the disunity among its own retail and supplier<br />

members, financial sponsors, board members and resigning<br />

members goes a long way to explaining the survey results and,<br />

eventually, our decision to end <strong>Jeweller</strong>’s financial sponsorship. i<br />

The earlier detailed reports and explantions can be found on<br />

jewellermagazine.com.


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GEMS<br />

FASCINATING EMERALD INCLUSIONS<br />

in emeralds from other countries, including<br />

Australia. Figure 3 shows an example of a<br />

spiky three-phase inclusion from Torrington<br />

in New South Wales.<br />

With appropriate lighting, brightly-coloured<br />

liquid films parallel to the basal pinacoid<br />

are found in many natural beryls, including<br />

emerald. Crystals such as biotite mica,<br />

phlogopite, calcite, pyrite, actinolite and many<br />

others may be also discovered as inclusions.<br />

Emeralds are also subjected to various<br />

treatments, such as oiling, fracture filling and<br />

dyeing, in order to lessen the appearance<br />

of cracks; surface cracks and cavities may be<br />

in-filled with plastic, epoxy, or wax, again to<br />

reduce the visibility of surface area flaws.<br />

They may be coated with such products as<br />

lacquer, paint or stain to enhance their colour.<br />

FIGURE 1. SYNTHETIC FLUX EMERALD FIGURE 2. HYDROTHERMAL EMERALD FIGURE 3. NATURAL EMERALD<br />

Understanding emerald inclusions<br />

is a vital part of the sales process.<br />

JUNE MACKENZIE reports.<br />

Emeralds differ from corundum mineral –<br />

known for ruby and sapphire – which has<br />

the same refractive index (RI) and specific<br />

gravity (SG) regardless of being natural or<br />

synthetic. The RI and SG for emerald generally<br />

vary between synthetic flux, synthetic<br />

hydrothermal and natural gemstones so<br />

these constants can point a gemmologist in<br />

the right direction when observing inclusions.<br />

With set gemstones it may be possible to<br />

obtain the RI but not the SG and, as the RI<br />

for the flux-grown emerald is lower than<br />

for hydrothermal and natural gemstones,<br />

this is helpful information when viewing<br />

the inclusions.<br />

The RI for hydrothermal emeralds is higher<br />

than flux and generally lower than the natural<br />

gemstones, although they may overlap.<br />

Again, this is a guideline for recognising<br />

the types of inclusions visible.<br />

Flux-grown synthetics may have coarse or<br />

fine flux inclusions, often opaque (Figure<br />

1). They may be wispy and are not liquid. In<br />

contrast, hydrothermal inclusions may consist<br />

of liquid feathers, sometimes in a spiral shape.<br />

They may present as roiled to angular growth<br />

zoning, appearing as ‘chevron’ shapes, or the<br />

growth zoning may appear as a slightly wavy,<br />

undulating pattern (Figure 2). If a synthetic<br />

hydrothermal emerald has been grown in a<br />

gold-lined crucible, gold inclusions may be<br />

found. To date, no gold inclusions have been<br />

found in natural emeralds.<br />

Natural emeralds from different locations<br />

present different types of inclusions. While<br />

some may contain two or three-phase<br />

inclusions, the spiky three-phase inclusions<br />

were thought to be diagnostic for Colombian<br />

emeralds but these have since been found<br />

NATURAL<br />

EMERALDS<br />

FROM DIFFERENT<br />

LOCATIONS<br />

PRESENT<br />

DIFFERENT TYPES<br />

OF INCLUSIONS<br />

In summary, natural emeralds from different<br />

locations generally provide evidence of<br />

different inclusions and synthetic emeralds<br />

made by different processes exhibit different<br />

inclusions from one another as well as from<br />

natural gemstones.<br />

Retailers need to be aware that some<br />

treatments greatly affect the price of a<br />

gemstone. The Australian Competition<br />

and Consumer Commission (ACCC) states<br />

that businesses in Australia must be able<br />

to guarantee what they sell.<br />

If gemstones are treated, this must be<br />

disclosed to the purchaser and written<br />

on their receipt.<br />

So if a natural emerald has been dyed to<br />

enhance colour, for example, this must be<br />

written on the receipt whether the seller is<br />

a supplier or a retailer. i<br />

June Mackenzie FGAA Dip DT, is a qualified<br />

gemmologist and gemmology teacher in NSW.<br />

She is the developer and presenter of the GAA<br />

Advanced Gemstone Inclusions course.<br />

For more information, visit: gem.org.au<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 37


JAA REPORT<br />

WHAT THE JAA IS DOING FOR YOUR INDUSTRY<br />

It has been a busy first two months of<br />

<strong>2017</strong>, with many developments coming to<br />

fruition and a variety of projects underway<br />

that promise to be of great relevance to the<br />

industry and members that we represent.<br />

First, I wish to welcome Jo Tory to the <strong>2017</strong><br />

JAA Board of Directors. Jo has a 30-year<br />

strong career at the helm of Najo where<br />

she is the managing and creative director.<br />

In addition to her extensive business<br />

experience, Jo brings with her a wealth of<br />

industry knowledge, especially in the field of<br />

marketing and a passion for the Australian<br />

jewellery community. Jo attended the first JAA<br />

Board meeting of the year held on Thursday<br />

February 9 and we are looking forward to<br />

forging ahead into <strong>2017</strong> with Jo who will<br />

no doubt be a valuable member to the<br />

JAA Board.<br />

On January 24, the JAA in conjunction with<br />

Victoria Police held a productive and wellreceived<br />

security seminar in Melbourne.<br />

This resulted from discussions in late 2016<br />

to assist retailers to liaise closely with lawenforcement<br />

agencies. The event sold out<br />

due to substantial industry interest in light<br />

of an unfortunate spate of armed robberies<br />

targeting jewellery stores in Victoria.<br />

The event provided attendees with useful<br />

information and tips outlining how to keep<br />

their business secure and what to do in the<br />

event of a robbery. This information was then<br />

disseminated to our members nationally. Our<br />

Victorian Branch Committee is coordinating<br />

liaisons and workgroups to further this<br />

important collaboration.<br />

On February 14, the prestigious JAA<br />

Australasian <strong>Jeweller</strong>y Awards were<br />

announced for <strong>2017</strong>. The Awards are a<br />

ON JANUARY<br />

24, THE JAA IN<br />

CONJUNCTION<br />

WITH VICTORIA<br />

POLICE HELD<br />

A PRODUCTIVE<br />

AND WELL-<br />

RECEIVED<br />

SECURITY<br />

SEMINAR IN<br />

MELBOURNE<br />

celebration of industry talent that showcases<br />

exceptional pieces across several categories.<br />

This year sees the inclusion of a new category<br />

Contemporary/Non-Precious, which will allow<br />

contestants to enter pieces made from nonprecious<br />

and organic materials. This will allow<br />

a greater range of talented individuals to enter<br />

this esteemed industry-endorsed program<br />

that has run since 1968.<br />

Exciting developments are ahead for the <strong>2017</strong><br />

JAA <strong>Jeweller</strong>y Tradeshow set for August this<br />

year. We have added a few new attractions<br />

to our list of exclusive offerings available to<br />

visitors and exhibitors.<br />

The Young <strong>Jeweller</strong>s Group will be supporting<br />

this industry run event and will host their<br />

ever-popular Design and Manufacturing<br />

Championships in a live arena. Contestants<br />

will have the chance to compete under<br />

four categories - engraving, settings,<br />

manufacturing, and CAD-technician. The<br />

Young <strong>Jeweller</strong>s Group has an impressive<br />

online following of talented jewellery<br />

professionals and the JAA is delighted that<br />

they are exclusively supporting the <strong>2017</strong><br />

JAA <strong>Jeweller</strong>y Tradeshow.<br />

The JAA is building industry run projects<br />

to further strengthen the Association so that<br />

in future years the JAA has a strong revenue<br />

base to enable membership fees to remain<br />

at a level that offers great value and to add<br />

resources to enable the Association to<br />

provide the vast array of non-revenue<br />

generating services that the industry<br />

requires. We look forward to your support<br />

and involvement for the projects run by the<br />

industry for the industry.<br />

Amanda Hunter<br />

Executive Director<br />

<strong>Jeweller</strong>s Association<br />

of Australia<br />

Suite 33, Level 8,<br />

99 York Street,<br />

Sydney NSW, 2000<br />

Telephone: 02 9262 2862<br />

Freecall: 1800 657 762<br />

Email: info@jaa.com.au<br />

Website: www.jaa.com.au<br />

JAA BOARD<br />

Selwyn Brandt<br />

President<br />

George Proszkowiec<br />

Vice President<br />

Brett Bolton<br />

Director<br />

Frank Salera<br />

Director<br />

Karen Lindley<br />

Director<br />

Jo Tory<br />

Director<br />

STAFF<br />

Amanda Hunter<br />

Executive Director<br />

Emma Ward<br />

Membership and<br />

Marketing Manager<br />

Roberta Mesturini<br />

Member and Consumer<br />

Relations Coordinator<br />

<strong>Jeweller</strong> is the official<br />

magazine of the <strong>Jeweller</strong>s<br />

Association of Australia<br />

(JAA) but is published<br />

independently by<br />

Gunnamatta Media Pty<br />

Ltd. The views expressed in<br />

<strong>Jeweller</strong> do not necessarily<br />

reflect those of the JAA<br />

and comments should be<br />

addressed to the Editor.<br />

38 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


JAA MEMBER<br />

LEADING THE CHARGE FOR MALE CONSUMERS<br />

Tom Boie is the owner and founder of Kavalri<br />

(pronounced Cavalry), a business based in<br />

Melbourne that offers custom-made, lifestyle<br />

jewellery for the man of the 21st century.<br />

The products are designed to suit the style<br />

and needs of male customers and range from<br />

stylish men’s bracelets in leather and steel<br />

to bold cufflinks of carbon fibre or black and<br />

silver-plated stainless steel designs.<br />

Boie has tungsten rings that also combine<br />

wood, carbon fibre or plated colours and<br />

necklaces in black and silver-plated stainless<br />

steel. His custom-made wedding rings<br />

are unique, including combinations such<br />

as the Brushed Tungsten and Gold Plated<br />

Pipecut Ring or the Black and Rose Gold<br />

Plated Pipecut Tungsten Ring – all can be<br />

customised by size and width and finished<br />

with a personalised engraving.<br />

Boie has amassed a strong education in<br />

business to back his jewellery brand. He<br />

attained a Bachelor of Commerce in 2006<br />

and then undertook postgraduate study<br />

with a Master of Diplomacy and Trade from<br />

Monash University in 2015. He also worked<br />

in marketing for more than a decade,<br />

holding positions with various national and<br />

international organisations across a range<br />

of industries; however, it was Boie’s interest<br />

in developing his own jewellery brand that<br />

led to the inception of Kavalri in 2012.<br />

Boie was aware of the lack of jewellery<br />

and accessories brands catering directly to<br />

men and felt a stylish and fashion-forward<br />

jewellery brand targeting men would be<br />

well received. Starting Kavalri was a natural<br />

progression for Boie who says he saw “a great<br />

niche opportunity in the men’s accessories<br />

and fashion/wedding jewellery segment”.<br />

Therefore, Kavalri was “born in response to<br />

the fact that very few jewellery and accessory<br />

brands were dedicated to men”.<br />

Boie acknowledges that he has learned a<br />

lot through trial and error and is still “refining<br />

my products and brand so that they will be<br />

well received in the market and appeal to<br />

my target audience”.<br />

He hasn’t been afraid to do this because<br />

his business philosophy is not to let fear of<br />

setbacks or failure be a reason for not pursing<br />

a certain aspiration.<br />

“Once you realise that it is ok to fall short<br />

initially, you will embrace the idea that<br />

these setbacks are often a necessary step to<br />

achieving eventual success,” he states.<br />

Not reaching goals has been part of the<br />

learning experience for Boie who says each<br />

setback has led him closer to achieving<br />

greater success.<br />

“Be passionate about what you do. If you love<br />

what you’re doing you will naturally find your<br />

niche and enjoy continued success,” he adds.<br />

It was an important step for Boie to join<br />

the <strong>Jeweller</strong>s Association of Australia (JAA)<br />

and have the opportunity to network in the<br />

jewellery community.<br />

Boie feels Kavalri has a lot to offer the<br />

jewellery industry when it comes to meeting<br />

the needs of an emerging fashion conscious<br />

male demographic.<br />

“Being a member of the JAA enables us<br />

to have industry-wide exposure through<br />

a leading association that actively looks after<br />

and fosters the interests of its members.<br />

We are proud to be a member of the JAA,”<br />

he says.<br />

”BE PASSIONATE<br />

ABOUT WHAT<br />

YOU DO. IF YOU<br />

LOVE WHAT<br />

YOU’RE DOING<br />

YOU WILL<br />

NATURALLY FIND<br />

YOUR NICHE<br />

AND ENJOY<br />

CONTINUED<br />

SUCCESS.”<br />

TOM BOIE<br />

Boie sees Kavalri’s position as a supplier of<br />

male-only jewellery as an advantageous point<br />

of difference.<br />

“Being one of the few jewellery brands<br />

that offers product only for men, I feel that<br />

the Kavalri brand resonates well with our<br />

customers. As such, our products are tailored<br />

to what we think men will like. I think men<br />

appreciate buying from a fashion forward<br />

men’s only jewellery brand,” he explains.<br />

So, from humble beginnings, Boie’s jewellery<br />

brand Kavalri has emerged as “an exciting<br />

brand that adds a new dimension to men’s<br />

lifestyle fashion” and it’s successful because it<br />

manages to combine innovative style with an<br />

urban edge that is meeting the needs of the<br />

modern-day man.<br />

Boie invites men to enjoy the Kavalri<br />

experience as he and his team are dedicated<br />

to ensuring a positive customer experience<br />

and in providing unique male pieces of<br />

jewellery design. Kavalri has stockists in both<br />

Sydney and Melbourne. i<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 39


Rising Stars Arena<br />

Young <strong>Jeweller</strong>s Group Championships<br />

<strong>Jeweller</strong>y Services Pavilion<br />

Business Services Pavilion<br />

Security Pavilion<br />

Educational Seminars<br />

Industry Leadership Panel<br />

Onsite Parking<br />

Private Networking Areas<br />

Quality Exhibitors<br />

Champagne Bar<br />

Complimentary Shuttle Buses<br />

jaajewellerytradeshow.com.au<br />

show@jaa.com.au


BUSINESS<br />

THE POWER OF PAIRING UP FOR PROFIT<br />

Retail partnerships can help businesses<br />

leverage each other’s strengths to get<br />

ahead. FRANCESCA NICASIO discusses<br />

what retailers need to know when<br />

collaborating with other businesses.<br />

Teaming up with businesses can result in<br />

a win-win outcome for all parties involved.<br />

When done right, collaborations result<br />

in additional exposure that earns more<br />

customers, more sales and more revenue.<br />

That said, striking up those winning<br />

partnership agreements is not always a walk<br />

in a park. In addition to investing the time and<br />

effort to find, vet and woo potential partners,<br />

businesses also need to carefully craft the<br />

terms of any agreement to ensure that costs<br />

and responsibilities are clear to all involved.<br />

This article addresses the steps that should<br />

be taken before, during and after retailers<br />

team up with another business to ensure<br />

that any collaboration is a success.<br />

FINDING A MATCH<br />

Deciding which business to join and the<br />

nature of the partnership is a crucial first step<br />

as it enables retailers to figure out the best<br />

way to reach out to potential partners.<br />

The outreach approach will depend on who<br />

is being contacted as well as the type of<br />

agreement one is looking to make. As such,<br />

it’s important to determine these details<br />

before contacting other businesses.<br />

Shel Horowitz, a best-selling marketing author<br />

and green business profitability consultant,<br />

says that the following points are what<br />

businesses should consider when picking<br />

good business partners:<br />

• Complementary offerings – any partnering<br />

businesses should appeal to the same<br />

demographic and should offer products<br />

and services that work well in tandem or<br />

in groups, like a one-stop wedding shop<br />

offering services from jewellers, florists,<br />

caterers, photographers and more<br />

• Willingness to enact joint marketing<br />

campaigns – consider collaborating with<br />

businesses willing to pursue cooperative<br />

advertising campaigns that no party could<br />

afford on their own – a bridal show with 50<br />

participants would be one good example<br />

• Complementary operational expertise<br />

ANY PARTNERING<br />

BUSINESSES<br />

SHOULD APPEAL<br />

TO THE SAME<br />

DEMOGRAPHIC<br />

AND SHOULD<br />

OFFER PRODUCTS<br />

AND SERVICES<br />

THAT WORK WELL<br />

IN TANDEM<br />

– take, for instance, the collaboration<br />

announced in 2014 between Australia<br />

Post and Chinese super-retailer Alibaba.<br />

The partnership means Australian<br />

companies can access Alibaba’s online<br />

shopping platform Tmall, normally<br />

restricted to companies registered as<br />

Chinese business entities. Australia Post<br />

receives its own space within Tmall that<br />

it can on-sell to Australian retailers and<br />

Alibaba can satisfy growing demand<br />

for Australian products, specifically in<br />

baby care, health and nutrition. In return,<br />

Australia Post now stocks Alipay gift cards,<br />

which allow Australians to shop at Tmall<br />

• Charity/not-for-profit partnerships with<br />

organisations whose missions are aligned<br />

with the brand identity – this is popular<br />

in the jewellery industry where there are<br />

many examples of brands, suppliers and<br />

retailers collaborating with charities.<br />

SCULPTING AN AGREEMENT<br />

Businesses should also think about the nature<br />

of any agreement. How will the collaboration<br />

work and what’s the ideal outcome? The<br />

answer to this depends on the type of<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 41


BUSINESS<br />

business that both partners have and the<br />

goals of the venture; however, a few common<br />

examples of business team-ups that work<br />

well include contests, sales and distribution<br />

agreements, events and social-media<br />

marketing opportunities:<br />

• Contests – businesses are teaming<br />

up so they can tap into each other’s<br />

fan bases and encourage sales or<br />

engagement. These types of collaborations<br />

are increasingly common on social<br />

media, owing to sites like Facebook<br />

and Instagram, which make it easy for<br />

users to tag, comment and engage<br />

with businesses. New Zealand-based<br />

apparel retailer The Shelter, for example,<br />

collaborated with other businesses to<br />

create an excellent Mother’s Day prize<br />

pack consisting of items and offers from<br />

their stores. Users would simply have to<br />

comment on The Shelter’s Facebook post<br />

in order for a chance to win. This allowed<br />

the retailer to increase fan activity while<br />

putting the spotlight on its store and other<br />

retailers at the same time<br />

• Sales and distribution agreements – some<br />

retailers strike up sales and distribution<br />

deals with other retailers wherein one<br />

party agrees to sell the goods of the other.<br />

An example is online retailer The Honest<br />

Company, which has an agreement with<br />

Target to sell its products<br />

• Events – other retailers decide to co-host<br />

events with organisations and fellow<br />

retailers. Such partnerships can enable<br />

retailers to share costs, improve exposure<br />

and connect with more consumers<br />

• Social buzz and marketing – sometimes<br />

a collaboration can be as simple as being<br />

social media ‘friends’. Popular among<br />

social-savvy small businesses, these<br />

agreements can include promoting or<br />

mentioning each other on social media,<br />

contributing articles or content to each<br />

other’s sites and running joint online<br />

competitions, among other things.<br />

These collaborations are just some of the<br />

types of agreements businesses could enter.<br />

REACH OUT THE PROPER WAY<br />

As mentioned earlier, there are many ways to<br />

attract the attention of potential partners. It<br />

all depends on who is being targeted and the<br />

type of deal one is looking to strike. One idea<br />

is to become a customer. This works best if<br />

reaching out to a small business in the same<br />

area. Stores that want to team up with a local<br />

business should first become customers.<br />

Swing by the location and experience<br />

the products or services first-hand. Form<br />

relationships with managers or owners then<br />

bring up the idea of a collaboration once<br />

enough rapport has been built.<br />

Those eyeing larger partners should target<br />

their efforts. Landing collaborations with<br />

big-name businesses may seem daunting but<br />

it’s not impossible. The key is figuring out the<br />

best way to get a foot in the door. For some<br />

retailers, this could be collaborating with a<br />

large not-for-profit. For others, such as new<br />

jewellery manufacturers, this could mean<br />

getting in touch with retail store buyers.<br />

Some retailers have landed partnerships<br />

by finding key contacts. Take TerraCycle for<br />

example, a small business that turns waste<br />

into green products. Its products are now<br />

stocked in Walmart thanks to shrewd online<br />

networking and persistence.<br />

According to a story on entrepreneur.com,<br />

founder Tom Szaky scoured LinkedIn and<br />

alumni networks to find the right contacts<br />

and then called Walmart “10 times a day,<br />

every day for three weeks” until he finally got<br />

through and set up a meeting.<br />

Similarly, Here on Biz – an app that lets users<br />

connect and keep tabs with professional<br />

contacts while travelling – landed a<br />

partnership with Virgin America and in-flight<br />

internet provider Gogo by investing time into<br />

building relationships with particular people<br />

within the company.<br />

According to inc.com, Here on Biz co-founder<br />

Nick Smoot, “used LinkedIn heavily, reaching<br />

out to key people within Virgin America to<br />

genuinely compliment them on things he<br />

believed the company was nailing”.<br />

There are some functions out there that are<br />

made specifically for partnerships. US-based<br />

Business Matchmaking is one example of<br />

a service that aims to offer procurement<br />

opportunities for small businesses. In<br />

Australia, there are various businesses that<br />

oversee collaborations between small to<br />

medium-sized enterprises, like Business<br />

Chicks and Dynamic Business. Local councils<br />

and business chambers will also organise<br />

and lead trade trips and networking events.<br />

LANDING<br />

PARTNERSHIPS<br />

WITH BIG-NAME<br />

BUSINESSES MAY<br />

SEEM DAUNTING<br />

BUT IT’S NOT<br />

IMPOSSIBLE.<br />

THE KEY IS<br />

FIGURING OUT<br />

THE BEST WAY<br />

TO GET A FOOT<br />

IN THE DOOR<br />

Of course, jewellery trade fairs are an ideal<br />

networking opportunity as well.<br />

CRAFTING THE AGREEMENT<br />

Needless to say, agreements struck between<br />

businesses will depend on what each party<br />

hopes to accomplish. The terms for a product<br />

distribution partnership, for instance, will<br />

be entirely different from a social media<br />

promotion deal.<br />

Be sure to conduct research on the rules<br />

and requirements of the other business. For<br />

instance, most jewellers will be aware that<br />

when entering into a product distribution<br />

deal, businesses may need to provide details<br />

such as minimum orders, lead times, payment<br />

terms, wholesale and retail prices and more.<br />

Doing a social media deal? Each party will<br />

need to know each other’s numbers when it<br />

comes to traffic, readership, email marketing<br />

lists and follower counts.<br />

Other interested parties will likely ask for<br />

some information of their own so be sure to<br />

have all the relevant documents ready. As<br />

entrepreneur.com puts it, businesses need<br />

to “prepare for scrutiny” and have all their<br />

financial and legal ducks in a row.<br />

If working on a big or complicated<br />

collaboration, it may be best to seek legal<br />

help. See to it that the terms are clearly<br />

outlined. Who has to deliver what and by<br />

when? What happens if one party can’t<br />

deliver? These are just some of the things<br />

that should be ironed out.<br />

TEST, TEST AND TEST<br />

It’s also a good idea to test the partnership<br />

first before entering into a huge commitment.<br />

For example, if contributing content to<br />

another retailer’s website or blog, write a<br />

couple of articles first before agreeing to fill<br />

up the other business’ editorial calendar.<br />

As long as both parties test the waters,<br />

measure results and use that information to<br />

determine whether or not to continue the<br />

agreement, there’s no reason why successful<br />

collaborations can’t be formed in <strong>2017</strong>. i<br />

FRANCESCA NICASIO is<br />

a retail expert from Vend, a<br />

POS, inventory and customer<br />

loyalty software for merchants.<br />

Learn more: vendhq.com<br />

42 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


SELLING<br />

TIPS FOR INCREASING CUSTOMER TRUST<br />

THE SECRET TO DRIVING REPEAT BUSINESS LIES IN BUILDING STRONG CUSTOMER RELATIONSHIPS AND GOOD CUSTOMER<br />

RELATIONSHIPS BEGIN BY ESTABLISHING TRUST. THOMAS YOUNG OUTLINES WAYS RETAILERS CAN IMPROVE TRUST.<br />

The Better Business Bureau is a not-for-profit<br />

organisation focused on consumer protection<br />

and industry self-regulation in America<br />

and Canada. During one of its Excellence in<br />

Customer Service Award events, guest speaker<br />

Dr Chris Hart gave an excellent presentation<br />

that clearly expressed how building trust<br />

results in customer loyalty, which results in<br />

more profitable customers and a greater<br />

chance for marketing and sales success.<br />

Most businesses struggle because trust is<br />

not yet present in a loyal customer base.<br />

Their customers range from merely satisfied<br />

to unhappy. The challenge is to move people<br />

into the loyal customer category, which<br />

means building trust.<br />

WHAT IS TRUST?<br />

Trust is the glue that holds the business<br />

relationship together and is expressed<br />

repeatedly through actions. This includes what<br />

the business does and does not do. Simple<br />

things are key, such as returning phone calls<br />

immediately and being consistent in words<br />

and actions. Trust is an absolutely essential<br />

part of sales, as well as business in general.<br />

If trust is not present, customers will not buy.<br />

TRUST IS AN INVESTMENT<br />

Building trust is not cheap; it is an investment<br />

in service to customers. This means hiring<br />

good people and providing them with<br />

ongoing training, offering money-back<br />

guarantees, and going out of the way to<br />

better meet customer needs. The catch is<br />

that these investments pay off handsomely<br />

in improved profits and a strong referral base.<br />

Remember, word-of-mouth marketing is the<br />

best way to generate new sales – when trust<br />

is high, customers will make a special effort<br />

to tell others about the business.<br />

ELIMINATE CUSTOMER SACRIFICES<br />

Retailers need to ask what customers have to<br />

endure to do business with them? These are<br />

barriers to success. Look at the companies you<br />

are passionate about. How easy is it to do to<br />

SELLING IS<br />

THE PROCESS<br />

OF BUILDING<br />

A TRUSTING<br />

RELATIONSHIP<br />

WITH PEOPLE.<br />

THIS IS NOT A<br />

PASSING TREND<br />

OR SALES<br />

TECHNIQUE BUT<br />

A WAY OF LIFE<br />

BUILD TRUST WITH FREQUENT INTERACTIONS<br />

business with those organisations? Remove<br />

consumer sacrifices and build loyal customers.<br />

COMPETENCE AND CREDIBILITY<br />

Trust is built by showing competence and<br />

credibility. Competence is getting the job<br />

done right, better than the competitors.<br />

It is expressed through knowledge of the<br />

customer’s needs, the business’ product and<br />

service and the ability to work with others.<br />

Credibility is the retailer’s character, integrity<br />

and honesty. Business owners and staff<br />

should only say what they really mean and be<br />

people of integrity. Show genuine concern for<br />

customers through unselfish behaviour. The<br />

focus is on the customer and his or her needs.<br />

TRUST CREATES HONESTY<br />

Don’t expect full honesty from people until<br />

trust is present. This is why objections really<br />

come from a lack of trust – customers fear<br />

that salespeople will take advantage of them<br />

if they share their shortcomings. When a<br />

customer trusts a salesperson, that customer<br />

is more inclined to tell them how to meet<br />

their needs specifically.<br />

HOW TO BUILD TRUST<br />

Trust is built through frequent interactions.<br />

These interactions are an opportunity to build<br />

trust. In fact, any interaction with customers<br />

has an impact on trust.<br />

Communication is about trust, not technique<br />

– when trust is high, it is effortless; when low,<br />

it is a huge burden. Listening builds trust<br />

because it shows the customer how much<br />

they are valued. It meets a deep psychological<br />

need to be respected as a person.<br />

Listening is the single most important way<br />

to build trust.<br />

Some other ways include the following:<br />

• Trust customers to do the right thing<br />

• Return all phone calls immediately<br />

• Send thank you notes<br />

• Be extremely organised and dependable<br />

• Do something different and special;<br />

be creative<br />

• Handle complaints promptly with empathy<br />

and honesty<br />

• Offer great customer service<br />

• Show sincere appreciation<br />

• Understand customers<br />

• Become a valuable resource to<br />

the customer<br />

• Create solutions that add value for<br />

the customer<br />

• Partner with the customer<br />

• Create a customer, not a sale<br />

• Do not over-promise but always do what<br />

is promised<br />

• Do something that is not expected<br />

• Always give more than expected<br />

• Do these things without any expectation<br />

of a return from the customer.<br />

Always act in the best interest of customers.<br />

Selling – in fact, doing business – is the<br />

process of building a trusting relationship<br />

with people. This is not a passing trend or<br />

sales technique but a way of life.<br />

Make it a challenge to find at least three ways<br />

to build trust with customers this month. i<br />

THOMAS YOUNG is CEO of<br />

Intuitive Websites and author<br />

of Winning the Website War and<br />

Intuitive Selling. Learn more:<br />

intuitivewebsites.com<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 43


WHAT DOES THE JAA<br />

A G R E A T E R V O I C E<br />

Through industry input the JAA<br />

lobbies to influence legislative changes<br />

and national curriculum.<br />

Working to protect your interests by<br />

having a united voice builds a stronger<br />

industry and shapes a sustainable<br />

future.<br />

The JAA works to represent your<br />

interests and support your needs.<br />

JOIN US ><br />

JAA.COM.AU/SIGNUP


MANAGEMENT<br />

SEVEN TRAITS OF A PROFICIENT LISTENER<br />

IT’S COMMON FOR PEOPLE TO ASPIRE TO BE GOOD LISTENERS IN THEIR PERSONAL LIVES SO IT FOLLOWS THAT<br />

PEOPLE SHOULD TAKE THE SKILL OF LISTENING TO THE WORKPLACE. MARIAN THIER REPORTS.<br />

A question that people in business often<br />

forget to ask themselves is: Am I a good<br />

listener? Sure, many people see the value in<br />

developing communication skills with friends<br />

and family but they should be encouraged to<br />

apply a similar principle to their professional<br />

lives with the aim of changing the way<br />

organisations are run for the better.<br />

It’s rare to find people who are good listeners<br />

in every situation. Listening is like any other<br />

skill in that anyone can develop proficiency.<br />

Proficiency comes from educating oneself<br />

on how to develop a stronger skill-set then<br />

applying this skill-set to different situations.<br />

For example, Dan might be considered a<br />

great listener when discussing the weekend’s<br />

football results but a poor listener when he is<br />

presented with a personal problem between<br />

his co-workers.<br />

What follows are seven ways in which Dan,<br />

or anyone, can learn to be a proficient listener<br />

in more than one context. Remember,<br />

the information can be applied to both<br />

relationships with colleagues and customers.<br />

GIVING FULL ATTENTION<br />

Prepare to listen and set aside all potential<br />

distractions. In this situation, Dan would stop<br />

his current task of unpacking stock, put his<br />

phone away and show through action that<br />

he is interested in being completely present<br />

for the conversation.<br />

INDIVIDUALISE THE SPEAKER<br />

Make an effort to notice different qualities<br />

of each person such as accent, tone-of-voice,<br />

body language, facial expression or frequency<br />

of giving input. This is straightforward,<br />

although it is important to note that not<br />

everyone is always focused on other people<br />

while they are listening. This is a learned skill<br />

that requires the effort of noticing smaller,<br />

often-ignored details in another person.<br />

ENGAGE THROUGHOUT INTERACTION<br />

Ask closed, open and probing questions, wait<br />

to respond and take turns speaking. It might<br />

IT’S RARE TO<br />

FIND PEOPLE<br />

WHO ARE GOOD<br />

LISTENERS IN<br />

EVERY SITUATION.<br />

LISTENING IS LIKE<br />

ANY OTHER SKILL<br />

IN THAT ANYONE<br />

CAN DEVELOP<br />

PROFICIENCY<br />

WATCH FOR VERBAL AND NON-VERBAL CLUES<br />

come more naturally for Dan to talk about<br />

the Sydney Swans; however, he might get so<br />

excited that he doesn’t realise he interrupted<br />

Jane while she was sharing her experience at<br />

the latest game.<br />

No matter what the context is, ask a variety<br />

of questions, give space for others to respond<br />

and allow each person to take a turn.<br />

SEE VALUE IN ALL COMMUNICATION<br />

This means not taking everything literally<br />

all of the time – it’s about using verbal and<br />

non-verbal clues to search for meaning.<br />

For example, if Dan was giving a lecture<br />

on the danger of children under the age<br />

of 15 playing football and Jane is crinkling<br />

her eyebrows or looking completely<br />

dumbfounded with her eyes bulging with<br />

anger but saying, “Oh yeah, I totally agree,”<br />

Dan could take her words literally or he could<br />

question her non-verbal cues, which reflect<br />

her own experience of her two sons playing<br />

football since they were four.<br />

INTERPRET TO GAIN UNDERSTANDING<br />

Separate main and supporting points and<br />

follow a sequence of ideas/messages/<br />

instructions to draw insightful inferences.<br />

This point is important because it integrates<br />

many tools into one. It looks at all of the<br />

pieces. An individual with this skill has<br />

the ability to prioritise each method of<br />

communication – non-verbal cues; tone<br />

of voice; the enthusiasm of the speaker;<br />

the literal words – in an effort to gain the<br />

most information and insight.<br />

EVALUATE CREDIBILITY<br />

Everyone speaks and communicates from<br />

the lens of their own personal experiences,<br />

as seen in the example of Dan and Jane.<br />

Having this awareness is important because<br />

it brings forward the value of not making<br />

assumptions. Dan might see sending<br />

four-year-old kids out onto the field to play<br />

football as an invitation to injury but Jane<br />

might see football as the key to each child’s<br />

future. One’s experience has the potential<br />

to cloud one’s ability to listen fully without<br />

assumed understanding.<br />

FOLLOW THROUGH ON INTERACTION<br />

Give feedback, paraphrase what was said and<br />

identify next steps. If Dan ignores Jane’s facial<br />

expressions and just takes her words literally,<br />

he’ll miss a key opportunity to understand<br />

Jane’s perspective, which could cloud her<br />

perception of him as a leader.<br />

If he instead pulls her aside after the lecture,<br />

mentions that he’d noticed her shocked looks<br />

and invites her to share what she is really<br />

thinking either in that moment or at another<br />

time, he would be opening the door to allow<br />

for honest feedback. Following through on<br />

important conversations is key to having the<br />

qualities of a skilled listener.<br />

In conclusion, even though these seven traits<br />

of a proficient listener are important, always<br />

remember the platinum rule of listening:<br />

listen to others as they want to be heard. i<br />

MARIAN THIER is founder<br />

of Expanding Thought,<br />

a coaching service for<br />

business leaders. Learn more:<br />

expandingthought.com<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 45


MARKETING & PR<br />

ARE YOU NETWORKING EFFECTIVELY?<br />

NETWORKING REMAINS ONE OF THE BEST RESOURCES FOR DEVELOPING AND EXPANDING A BUSINESS.<br />

DAVID BROWN DISCUSSES SOME TECHNIQUES RETAILERS CAN USE TO INCREASE THEIR NETWORKING OPPORTUNITIES.<br />

With developments in technology there<br />

is now an increasingly large number of<br />

resources available to help business owners<br />

operate their stores more effectively.<br />

As great as technology is though, one of<br />

the best resources for improving business<br />

has been around for decades and it’s<br />

absolutely free – it’s called networking.<br />

Networking provides a huge number of<br />

benefits for any business owner. Here are<br />

some reasons why:<br />

• Knowledge – no person is an island and<br />

no one has a monopoly on the best ideas<br />

and practices that are available. Sharing<br />

knowledge with fellow retailers is one of<br />

the best ways to drive a business forward<br />

• Sourcing of product – there is such<br />

a huge selection of suppliers and no<br />

one business owner can have a full<br />

handle on everyone’s offerings or<br />

prices. Networking with other retailers<br />

can show who has the best deals and<br />

benefits and can also provide some<br />

social proof before embarking on<br />

dealing with new suppliers, particularly<br />

in the trade-show environment where<br />

retailers often encounter suppliers they<br />

have not met or dealt with previously.<br />

There are plenty of retailers who will<br />

only deal with recommended suppliers<br />

and attend trade shows armed with a<br />

recommended go-to list of businesses<br />

from whom they’ll purchase. This<br />

can save considerable time and that<br />

overwhelming feeling<br />

• Psychological benefits – being a<br />

business owner can be a lonely road. The<br />

camaraderie and support of a network of<br />

similar operators can be a great source of<br />

comfort when things get tough and also<br />

provide someone to celebrate with when<br />

things go well<br />

• Social – most business networks become<br />

the foundation of firm friendships that<br />

can last well past the existence of the<br />

business relationship.<br />

SETTING UP AN EFFECTIVE NETWORK<br />

The most important requirement is that<br />

jewellers find like-minded retailers who<br />

share the same values but have strengths<br />

in areas in which they may lack. A similar<br />

type of store is a plus as is similar size and<br />

market place.<br />

It’s important that the arrangement is<br />

formalised and it’s recommended that<br />

regular meetings take place about every<br />

quarter, either face-to-face – perhaps<br />

coinciding with buying days or trade fairs<br />

– or via online methods such as Skype.<br />

One of the key criteria is finding retailers<br />

who are willing to contribute and openly<br />

share. Everyone needs to be willing to<br />

commit and bring something to the<br />

discussion. The aim is to find committed<br />

business owners willing to help others – this<br />

is no place for people only looking to take.<br />

An ideal size is about six business owners<br />

who can each provide fresh ideas without<br />

meetings becoming bogged down<br />

and difficult to run. Rotating store visits<br />

is also encouraged to provide physical<br />

commentary on each participating store.<br />

WHAT CAN BE ACHIEVED AT MEETINGS?<br />

Having an agenda is critical to maximising<br />

time together. Here are some valuable topics<br />

to discuss:<br />

• Finance and stock – a comparison of<br />

financial reports can be a great starting<br />

point. Who is achieving the best mark-ups?<br />

Who has the highest diamond sales?<br />

What about the best average? These are<br />

the perfect starting points for discussion.<br />

If one store is achieving a better margin<br />

than the rest, ask them why. From great<br />

questions come great answers<br />

• Competition – competing with each<br />

other can be fun and encourages staff to<br />

strive for better results. In the good old<br />

days of the fax machine, I knew two stores<br />

that would compete to see which store<br />

achieved the most sales of $500 or more<br />

in a month. The winner shouted the loser<br />

IT’S IMPORTANT<br />

THAT THE<br />

ARRANGEMENT<br />

IS FORMALISED<br />

AND IT’S<br />

RECOMMENDED<br />

THAT REGULAR<br />

MEETINGS TAKE<br />

PLACE ABOUT<br />

EVERY QUARTER,<br />

EITHER FACE-<br />

TO-FACE OR VIA<br />

ONLINE METHODS<br />

NEVER UNDERESTIMATE NETWORKING VALUE<br />

McDonalds vouchers! Faxes would whizz<br />

back and forward between the stores,<br />

creating a real spirit of friendly competition<br />

• Marketing – working together with other<br />

stores can provide great buying benefits<br />

when sourcing large quantities of product.<br />

It can also offer unique marketing<br />

opportunities that can be shared<br />

between the parties involved. I know<br />

a group of four stores who set up their<br />

own diamond collection, developing<br />

collectively a unique arrangement with<br />

a supplier that provided them with a<br />

selection they might not have been able<br />

to establish individually. The range would<br />

tour the four stores and they were able to<br />

produce marketing material at a shared<br />

cost that would have been costly for<br />

them to create on their own.<br />

Networking is an often under-utilised<br />

opportunity to generate value by tapping<br />

into the knowledge of others. Setting up<br />

a formal network with like-minded retailers<br />

will lift businesses to another level that<br />

cannot be achieved on one’s own. i<br />

DAVID BROWN is<br />

co-founder and business<br />

mentor of Retail Edge<br />

Consultants. Learn more:<br />

retailedgeconsultants.com<br />

46 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


LOGGED ON<br />

FOUR SEO TRAPS THAT BUSINESSES ENCOUNTER<br />

ALTHOUGH SEARCH ENGINE OPTIMISATION HAS BEEN AROUND FOR A LONG TIME, MANY BUSINESSES STILL FALL INTO<br />

SOME FAMILIAR TRAPS. CHRIS ASHTON REPORTS ON COMMON SEO MISTAKES THAT NEED TO BE DODGED.<br />

Plenty of myths exist regarding search engine<br />

optimisation (SEO) so businesses new and<br />

old to SEO can be misled easily and it’s not<br />

entirely their fault.<br />

<strong>Jeweller</strong>s who want to get the best rankings<br />

for their websites need to avoid these four<br />

common SEO mistakes.<br />

KEYWORD STUFFING<br />

Optimising websites with the right keywords<br />

is one of the cornerstones of SEO but many<br />

businesses make the mistake of filling<br />

their pages with keywords for the sake of<br />

enhancing search results, a practice called<br />

keyword stuffing. This technique was popular<br />

in the early days of SEO when keyword<br />

density – the number of times a keyword is<br />

used compared to the total number of words<br />

in a page – increased search rankings.<br />

Those days are over and keyword stuffing<br />

simply doesn’t work today. In fact, it’s likely<br />

to do more harm than good to a website<br />

– Google is now smarter and penalises<br />

websites that spam pages with keywords.<br />

Tip: Go for quality over quantity. Aim to use<br />

keywords as naturally as possible and avoid<br />

filling content with keywords for the sake of<br />

using them.<br />

MESSY SITE STRUCTURE<br />

A well-organised site structure is the<br />

backbone of good SEO, not to mention<br />

great user experience. Unfortunately, many<br />

websites take site structure for granted. One<br />

knows bad site structure when they see it:<br />

messy navigation, missing pages and no clear<br />

way of getting from one page to another.<br />

When site structure is messy, website visitors<br />

will struggle to find the content they need.<br />

This will increase a site’s bounce rate and<br />

reduce dwell time, both of which have<br />

shown to impact rankings. A disorganised<br />

site also makes it more difficult for Google<br />

to crawl a website and index its pages. This<br />

could lead to some pages not being ranked<br />

for search results.<br />

Tip: Organise the site’s main navigation<br />

and make sure all pages in the website<br />

are organised logically.<br />

UN-MOBILE-FRIENDLY WEBSITES<br />

With more people using mobile devices<br />

every day, one would think that businesses<br />

would prioritise mobile-friendly websites.<br />

Surprisingly, that’s not the case.<br />

Many websites that aren’t optimised for<br />

mobile devices have unresponsive designs<br />

that don’t adapt to smaller screens. This<br />

makes it difficult for visitors to view them<br />

in smartphones and tablets.<br />

Why is this an issue? Research has shown<br />

that more people are now using mobile<br />

devices to browse the internet. In fact, a<br />

StatCounter report showed that people<br />

accessed the internet through mobile<br />

devices more than desktop computers for<br />

the first time in October 2016. This trend<br />

shows no signs of stopping anytime soon.<br />

In order to reach the biggest market possible,<br />

websites need to be accessible through all<br />

major mobile devices.<br />

Google itself confirmed mobile-friendliness<br />

as a ranking factor, which makes correcting<br />

this mistake even more critical. It should be<br />

noted that taking a website from ‘not mobilefriendly’<br />

to ‘mobile-friendly’ does require<br />

work by a developer but, as mentioned, the<br />

investment is worth it.<br />

Tip: Adapt to the times and use a responsive,<br />

mobile-friendly design. Not only will this<br />

make the website accessible to more people<br />

but it can also improve user experience.<br />

SPAMMY LINKBUILDING<br />

A strong link profile – the body of links from<br />

other websites pointing to the website – is<br />

essential to getting higher rankings in search<br />

results; however, many businesses often take<br />

this too far, listing themselves in too many<br />

directories or even taking part in interlinking<br />

blog networks for the sake of getting as<br />

many links pointing to their sites as possible.<br />

AVOID FALLING INTO THE TRAP OF USING OUTDATED SEO METHODS<br />

A WELL-<br />

ORGANISED SITE<br />

STRUCTURE IS<br />

THE BACKBONE<br />

OF GOOD SEO,<br />

NOT TO MENTION<br />

GREAT USER<br />

EXPERIENCE.<br />

UNFORTUNATELY,<br />

MANY WEBSITES<br />

TAKE IT FOR<br />

GRANTED<br />

Others also abuse reciprocal links – ‘I link to<br />

you, you link to me’ – or pay for links, which<br />

Google generally discourages.<br />

This method may have worked several years<br />

ago but Google is getting much better at<br />

detecting spam links in a link profile and will<br />

quickly disregard them.<br />

This isn’t to say that links from directories<br />

such as True Local are not important because<br />

they are, especially for local SEO, but again it’s<br />

about quality and variety rather than quantity.<br />

The best links are those that come naturally<br />

from opportunities like editorials or blogs.<br />

Tip: Aim for variety in link profiles. The<br />

strongest link profiles are those that contain<br />

a good mix of links from different types<br />

of sources.<br />

By avoiding these common mistakes,<br />

businesses can ensure that their websites<br />

are in the best position to improve their<br />

search rankings. i<br />

CHRIS ASHTON is a<br />

partner and SEO manager at<br />

Kymodo, a Brisbane digital<br />

marketing agency.<br />

Learn more: kymodo.com.au<br />

<strong>April</strong> <strong>2017</strong> <strong>Jeweller</strong> 47


MY BENCH<br />

Marion<br />

Schweitzer<br />

WORKS AT:<br />

Marion Schweitzer <strong>Jeweller</strong>s<br />

AGE: Don’t be silly; never<br />

ask a woman her age<br />

YEARS IN TRADE:<br />

A long time<br />

TRAINING: <strong>Jeweller</strong>y<br />

apprenticeship, FGAA<br />

FIRST JOB: A local<br />

manufacturing jeweller<br />

based in Brisbane, QLD<br />

Favourite gemstone:<br />

I love them all, but diamond<br />

(a girl’s best friend), sapphire<br />

and tourmaline are my<br />

special favourites.<br />

Favourite metal:<br />

18-carat yellow gold.<br />

Favourite tool:<br />

My hands and brain.<br />

Best new tool discovery:<br />

Oh, I don’t know! I would<br />

like a genie in a bottle or<br />

some of those little elves<br />

that come in at night and<br />

do all of my work.<br />

Best tip from a jeweller:<br />

The quality of your work<br />

is everything.<br />

Best tip to a jeweller:<br />

Be passionate about your<br />

job and aim to be the best<br />

at what you do.<br />

What’s the most difficult<br />

resource to source locally?<br />

Human resources by far<br />

are the hardest things to<br />

find and keep. I am lucky<br />

to have a great team.<br />

Love jewellery because:<br />

<strong>Jeweller</strong>y to me is like art –<br />

it’s to be admired and to be<br />

an expression of one’s self<br />

– but not hung on the wall.<br />

I love bringing pieces to life.<br />

My bench is always:<br />

Messy, because I am always<br />

so busy dealing with a<br />

million things at once.<br />

Favourite sports team:<br />

Sorry, I am not a sporting<br />

kind of girl. My passion<br />

is travel.


SOAPBOX<br />

A TALE OF CABBAGES, BREAD AND JEWELLERY<br />

Would you like to know what cabbage,<br />

fruit, bread and flowers have in common<br />

with jewellery? Nothing!<br />

We’re so fortunate in this industry that the<br />

products we sell are not like vegetables, a<br />

loaf of bread or the latest piece of clothing<br />

where the item goes off or becomes last<br />

season if it doesn’t sell within the first six<br />

weeks. We’re in the business of precious<br />

metals and gemstones, great electronics<br />

and timekeeping, so why are so many<br />

jewellers selling themselves cheap to get<br />

rid of ‘old’ stock?<br />

One can blame outside sources for this<br />

ludicrous mentality but the reality is that this<br />

mindset is mostly the result of an inside job.<br />

Too many jewellers are lazy as hell and the<br />

industry is falling over because of it.<br />

Buying groups definitely play their role in<br />

supporting the industry – they offer great<br />

networking opportunities and promotional<br />

ideas to name a few – but retailers shouldn’t<br />

forget to think for themselves.<br />

If you want to do the same thing and carry<br />

the same stock as every other jeweller in<br />

a buying group then you may as well be a<br />

chain store. As an independent retailer, you’ve<br />

got to find your niche and what works for<br />

you that is different to the competition.<br />

Additionally, forgetting to think for yourself<br />

and consequently stocking your store full<br />

to the brim of product from international<br />

brands that dictate range, price and profit<br />

margin is retail suicide.<br />

There’s no point in following competition<br />

down any route, particularly price wars.<br />

I’m my own person, I know my industry<br />

and I’m forever trying to find product that<br />

is unique and will fit in with my store. My<br />

selections are also not necessarily based on<br />

how much money I will make; however, I<br />

am determined to not sell it cheap and this<br />

philosophy has served me well.<br />

I have operated my business since 2002<br />

and in that time have never held a sale.<br />

If a customer wants to buy something and<br />

they think it’s cheaper down the road, well<br />

good luck to that retailer. They may have<br />

made a sale but they didn’t make a profit like<br />

I will eventually. It’s not selling quick enough,<br />

you say? Well I won’t buy that product again.<br />

We should all go to work to make money,<br />

not give it away. The running cost of any<br />

business does not go down – your staff don’t<br />

say they’re going to work for half of their<br />

wage, your landlord doesn’t plan to reduce<br />

your rent by half, so why give away half your<br />

profit? My father used to say to me that<br />

profit is not a dirty word and I stand by that<br />

sentiment. You buy ‘mistakes’ at the supplier’s<br />

price, so why sell them for no profit? I’ve had<br />

my share of mistakes in the past and it’s best<br />

to put them down to a learning experience<br />

and obviously don’t replenish them.<br />

I’m sick of perceived industry ‘experts’ – some<br />

of whom I must say come from their own<br />

pretty ordinary retail backgrounds – filling<br />

our heads with their beliefs. I don’t think<br />

jewellers should put the price up just to bring<br />

it down. You purchase product – or at least<br />

should purchase product – because you<br />

believe in its value. Should that item not sell<br />

then why not negotiate with the supplier?<br />

I DON’T VIEW THE<br />

FACT THAT MY<br />

BUSINESS HAS<br />

OLD STOCK IN A<br />

NEGATIVE LIGHT<br />

EITHER. IN FACT,<br />

I RECEIVE MORE<br />

ENJOYMENT OUT<br />

OF SELLING AN<br />

OLD PIECE AT FULL<br />

PROFIT THAN I DO<br />

A NEW PIECE THAT<br />

WE’VE HAD FOR<br />

FIVE MINUTES<br />

I don’t view the fact that my business has<br />

old stock in a negative light either. In fact, I<br />

receive more enjoyment out of selling an old<br />

piece at full profit than I do a new piece that<br />

we’ve had for five minutes.<br />

Of course old stock will look dated if you<br />

leave it out on the floor gathering dust so it’s<br />

important to constantly move it around and<br />

keep it in pristine condition with fresh pricing.<br />

As an industry, we need to get off our<br />

backsides, work hard and appreciate the<br />

opportunities we have been given. We’re<br />

so lucky to be working with jewellery –<br />

I wouldn’t want to be in the rag trade<br />

and I wouldn’t want to be operating an<br />

independent fruit and vegetable store<br />

competing with the likes of Coles.<br />

Some may say that times are difficult but<br />

people don’t stop falling in love, they don’t<br />

stop getting married and they don’t stop<br />

having anniversaries. People ask me all the<br />

time whether business is tough and I respond<br />

by asking them if they have stopped having<br />

birthdays. <strong>Jeweller</strong>s cater for life in good<br />

times and in bad because those passionate<br />

parts of life never go out of fashion.<br />

Our industry is set up to make lots of<br />

money; we’re so bloody lucky and there’s<br />

no need to sell ourselves cheap. I come<br />

back to the words of my father: profit is<br />

not a dirty word. i<br />

Name: Brent Weatherall<br />

Business: Brent Weatherall <strong>Jeweller</strong><br />

Position: director<br />

Location: Dunedin, New Zealand<br />

Years in the industry: 37 years<br />

50 <strong>Jeweller</strong> <strong>April</strong> <strong>2017</strong>


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VISIT THE INTERNATIONAL JEWELLERY<br />

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competing for the Nationals and World Championships<br />

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under the microscope from the <strong>Jeweller</strong>y Institute of Australia<br />

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