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OFFICIAL MAGAZINE FOR THE

JEWELLERS ASSOCIATION OF AUSTRALIA

MARCH 2017

www.jewellermagazine.com

Oh mother

LEARN TO OUTSHINE COMPETITORS

THIS MOTHER’S DAY

It’s personal

+ +

CONSUMER NARCISSISM IS ON THE

RISE, JEWELLERS BETTER DELIVER

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LEARN TO OUTSHINE COMPETITORS

THIS MOTHER’S DAY

OFFICIAL MAGAZINE FOR THE

JEWELLERS ASSOCIATION OF AUSTRALIA

CONSUMER NARCISSISM IS ON THE

RISE, JEWELLERS BETTER DELIVER

MARCH 2017

www.jewellermagazine.com

A CAUTIONARY TALE OF DIAMOND

AND TULIP MANIA

CONTENTS

MARCH 2017

23/

29/

31/

FEATURES REGULARS BUSINESS

18/ ONE OF A KIND

Jewellers are in prime position to

tap into consumer narcissism.

23/ MUM’S THE WORD

Uncovering what it takes to outsmart

and outshine this Mother’s Day.

9/ Editorial

10/ Upfront

12/ News

37/ Gems

Revealing inclusions: sapphire

38/ JAA President’s report

41/ Business feature

David Brown explores

advancements that are

rejuvenating traditional retail.

43/ Selling

Spark results with referral teams,

reports Michael Griffiths.

29/ DIAMOND BUBBLE

Lessons learned from the diamond

and tulip investment bubbles.

31/ BRACE FOR IMPACT

Lifting the lid on top trends expected

to impact retailers.

39/ JAA Member’s profile

48/ My Bench

50/ Soapbox

James Tyler is fed up with

bad quality metals.

45/ Management

Chris Hallberg outlines the daily

habits of successful leaders.

46/ Marketing

Stephanie O’Brien discusses

strategies for managing

angry customers.

47/ Logged On

Increase engagement with

Facebook Live, advises Lux Narayan.

Oh mother

It’s personal

+ +

Stone mania

Front cover advertiser:

The Kameleon collection is a

new customisable jewellery

offering by Portobello. Visit:

portobellojewellery.com.au

March 2017 Jeweller 5


Win your share of more than $80,000

in prizes at the Jewellery Design Awards!

Entries close June 1st.

The winner of the ‘Supreme Award’ will receive two business class tickets and four night’s accommodation

to Baselworld 2018. The Jewellery Design Awards will be held at the 2017 International Jewellery Fair at the brand new

International Convention Centre Sydney. To enter please register at www.jewelleryfair.com.au for terms and conditions.

All entries are to be received at Expertise Events on or before June 1st 2017.

Picture courtesy of Baselworld

Entries will be accepted in the following categories:

• 1st & 2nd year Apprentice/Student Award

• 3rd & 4th year Apprentice/Student Award

• Australian Opal Award

• Bridal Award

• CAD/CAM/CAST Award

• Coloured Gemstone Award

• Diamond Award

• Fair Visitors’ Choice Award

• Men’s Accessories & Jewellery Award

• Pearl Award

• Precious Metal Award

• Supreme Award – The entry that receives the highest

point score out of all of the finalists will be

determined as the ‘Supreme Award’ winner

All prizes on offer are category specific and aim to help the businesses and designers who enter. Finalists will be showcased in an

interactive display at the International Jewellery Fair 2017 at ICC Sydney. This is also where the Fair Visitors’ Choice Award will be decided.

INSTITUTE OF AUSTRALIA

JEWELLERY

JIA

JEWELLERY INSTITUTE OF AUSTRALIA ®


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In All Sizes

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Suite 1204, 227 Collins St

Melbourne, Victoria 3000

Australia

Ph (03) 9639 1008

Fax (03) 9639 0179

E sales@vitaldiamonds.com.au

www.vitaldiamonds.com.au

For The Health

Of Your Business

FOR THE HEALTH OF YOUR BUSINESS


Beauty

and

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Beast

the

Until the last

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P 02 8764 4258 disneycouture.com.au


EDITORIAL

TIPS TO TREASURE IN TOUGH TIMES

Jewellers have seen tough times in retail

trading before. Capitalism means, or demands,

that there are boon times followed by slow

times, but the current trading conditions

seem a little different to those past.

It was recently announced that Australia

avoided a technical recession by posting

positive GDP figures. There’s no doubt the

Australian economy has been resilient; there

are very few countries that can brag about

escaping an economic recession for 25 years.

In fact, we have had one of the world’s

longest growth streaks and are now expected

to surpass the Netherlands’ 26-year streak

(1982–2008). That aside, successful trading

has not been achieved across the board.

There has been constant reference to the

‘two-speed’ economy – the first buoyed by

the mining and resources boom and the

second being a far slower and less positive

situation. Categories within the overall retail

market have performed to varying success

levels and jewellery has had ups and downs.

The reason why this slow-down seems

different is because the market has changed

– or, more precisely, the consumer has

changed. To be even more specific, I think the

main difference is the change in shopping

avenue as opposed to the change in shoppers

themselves; consumers now have more

product choice and more choice of retail

sellers. The rise of multi-channel shopping

allows consumers to review everything.

Of course, there’s more to the current tough

trading times than internet activity but the

challenge is to find a niche in this digital era.

Although I regularly hear of jewellers who

are bucking the trend and recording good

sales, there’s no doubt many retailers are

probably thinking Australia is in a recession.

I don’t profess to have all the answers but

today’s retail landscape did make me think

about some of the advice Jeweller gathered

a few years ago about tips for trading in tough

times. A refresher in ‘basics’ never goes astray.

One that initially springs to mind: don’t

fall into a false sense of panic and start

discounting everything. This will just reduce

margins (profits) and raise expenses by

replenishing stock at more expensive prices.

I might sound like a broken record but

retailers need a strategy that covers all areas

of business. The first sector seeking attention

is stock and product choice. Move slow-selling

stock out of the store and review the entire

product range often, thinking about which

products actually work and the marketing

spend that each product requires.

Slow-selling stock has already been seen

by regular customers so devise a way to sell

it to non-regular customers. It can even be

used in special promotions or giveaways,

or to say ‘thank you’ to non-regular customers.

Once you have addressed the dead stock

issue consider working better with fewer

I REGULARLY

HEAR OF

JEWELLERS

WHO ARE

BUCKING THE

TREND BUT

THERE’S NO

DOUBT MANY

ARE PROBABLY

THINKING

AUSTRALIA IS

IN A RECESSION

suppliers. Choose your best suppliers and

advise that you want to work more closely

with them throughout these tougher times.

Suppliers are likely to be under just as much

pressure as you are when times are tough,

so be careful not to make decisions that harm

business relationships. A little extra time spent

helping suppliers will go a long way.

It’s also important to be aware of heavily

discounted product prices from suppliers.

These may be items that you haven’t had

before that have been slow sellers in other

stores. Buy warily – a discounted product is

not a bargain until it is sold and if it sits on

the shelves, then it wasn’t a bargain at all.

Jewellers need to look internally too. First

up, ensure staff have a mentality of striving,

not surviving. Know the business’ breakeven

point to determine the minimum sales

required to stay in operation. Use slower

times in store to educate staff – teach them

how to up-sell and give them greater product

knowledge on diamonds and coloured

gemstones. Also offer suppliers more chances

to come in and train staff on product specifics.

There are many other tips but I think the most

effective one is to smile. Consumers are more

likely to buy from happy, friendly and cheerful

staff. Store owners and managers can also

benefit from smiling every once in a while

– even I do it sometimes!

Coleby Nicholson

Managing Editor

March 2017 Jeweller 9


UPFRONT

“We generally do

it quite regularly

with staff induction

and in peak times

such as Christmas;

however, it is

ongoing with

training and in

our day-to-day

routines.”

How often do you provide staff training on security?

ALAN SOBBI, LINDA

& CO DESIGNER

JEWELLERS

BULLETIN BOARD

n GREENER OUTLOOK

Is it time to add some greenery to the

store? Colour authority Pantone has

unveiled its 2017 Colour of the Year –

Greenery. Expected to inspire trends in

jewellery and other creative industries,

the hue has been described as a fresh

and zesty yellow-green that works with

many colour combinations.

n A GOOD FINISH

Setting the stage for a productive day

is all about ending the previous day

right, states business speaker Michael

Kerr. In a Business Insider Australia

article, Kerr reveals the common traits

that successful people do in the last

10 minutes of the workday, such as

determining primary goals and leaving

in a positive frame of mind.

n MORE THAN PRODUCT

‘Experiential’ retail is predicted to forge

a presence this year. The concept is

based on the idea that consumers are

looking for more than just product;

they are seeking experiences and

relationships. A Forbes report suggests

thinking along the lines of interactive

storefront windows and in-store events.

Remember technology assists but the

focus should be on human interaction.

“So far we haven’t

done any formal

training; we

discuss situations

on occasions,

especially after

news or industry

events. It is

something we all

agree needs to be

assessed.”

JAI HAY, JAI HAY

JEWELLER

DIGITAL

BRAINWAVE

“We provide staff

with official security

training involving

police once a year,

but we do regularly

cover this subject

in our weekly staff

meetings, mainly

referring to walk-in

opportunistic

thieves.”

DAVID EVERETT,

EVERETT BROOKES

HOW ‘PINTERESTING’

Pinterest’s latest updates are bound to change

the way jewellers utilise the social media site in

the future. Shop the Look allows users to click

on individual items in photos and make instant

purchases, or if they’re not for sale, view similar products that are. Next, by pointing a

smartphone camera towards any item in the real world, Lens will find it or the next

best thing. Shop the Look is currently available with select retailers and Lens is in testing

stage and expected to initially roll out in the US. Like most technology advancements,

however, it should only be a matter of time before local jewellers can take advantage.

TOP PRODUCT

Thomas Sabo’s 18-carat gold-plated sterling

silver earrings are from the spring/summer 2017

collection. Distributed by Duraflex Group Australia,

the earrings were the most popular product last

month ranked by views at jewellermagazine.com.

www.jewellermagazine.com

Managing Editor

Coleby Nicholson

Editor

Emily Mobbs

emily.mobbs@jewellermagazine.com

Journalist

Talia Paz

talia.paz@gunnamattamedia.com

Advertising Manager

Gary Collins

gary.collins@jewellermagazine.com

Digital Manager

Angela Han

angela.han@gunnamattamedia.com

Production Manager

& Graphic Design

Jo De Bono

art@gunnamattamedia.com

Accounts

accounts@gunnamattamedia.com

Subscriptions

info@jewellermagazine.com

Jeweller is published by:

Gunnamatta Media Pty Ltd

Locked Bag 26, South Melbourne,

VIC 3205 AUSTRALIA

ABN 64 930 790 434

Phone: +61 3 9696 7200

Fax: +61 3 9696 8313

info@gunnamattamedia.com

Copyright: All material appearing

in Jeweller is subject to copyright.

Reproduction in whole or in part is strictly

forbidden without prior written consent

of the publisher.

Disclaimer: Jeweller is the official magazine

of the Jewellers Association of Australia

(JAA). The views and opinions expressed

in Jeweller do not necessarily reflect those

of the JAA and opinions expressed by

authors are not necessarily those of the

publishers or the JAA. All statements

made, although based on information

believed to be reliable and accurate at

the time, cannot be guaranteed and no

fault or liability can be accepted for

error or omission.

Gunnamatta Media Pty Ltd strives to

report accurately and fairly and it is our

policy to correct significant errors of fact

and misleading statements in the next

available issue. Any comment relating to

subjective opinions should be addressed

to the editor where the opposing position

will be published on the letters pages to

encourage open debate. The publisher

reserves the right to omit or alter any

advertisement and the advertiser agrees

to indemnify the publisher for all

damages or liabilities arising from the

published material.

10 Jeweller March 2017


Creating Timeless Memories

PERSONALISED

PENDANTS


NEWS

Jewellers to benefit from lease reforms

For the first time in more than a decade,

significant updates have been made to

the NSW Retail Leases Act. The changes

are expected to create fairer and more

transparent relationships between tenants

and landlords.

Under the reforms, landlords will be obliged

to disclose outgoing costs and leases of more

than three years will need to be registered

with Land and Property Information. The act

will also include the removal of the minimum

five-year lease term.

Nationwide Jewellers managing director

Colin Pocklington said the buying group

supported the amendments; however, it

was disappointing that the government was

unable to include several other changes.

“Retailers were seeking a stop to the need

12 Jeweller March 2017

to supply monthly sales figures to landlords,

when percentage rent was not payable,”

Pocklington explained, adding, “This gives the

landlords an advantage in lease negotiations.

Retailers were also seeking a right of refusal

at the end of a lease.”

An Australian Retailers Association

spokesperson said it was difficult to

determine whether other states would follow

suit. “We do know that South Australia was

waiting to see the outcome of this NSW bill,

so it will be interesting to see what they do

next,” the spokesperson added.

The Retail Leases Amendment (Review) Bill

2016 was introduced to NSW Parliament by

Minister for Small Business John Barilaro on

November 8, 2016, before passing parliament

on February 21, 2017.The lease reforms are

expected to come into effect July 1, 2017.

Perth store full of ‘stolen’ jewellery

Western Australia Police has seized an

entire store of allegedly stolen jewellery.

A statement made on the WA Police

Facebook page, dated February 26, read:

“Perth detectives have worked hard to obtain

evidence to seize an entire jewellery store in

Perth of allegedly stolen items recently.”

According to multiple reports, police

conducted a search warrant for the store

and charged one man with several offences

in relation to the incident.

Images of the alleged stolen jewellery,

including watches, rings, bracelets and

necklaces, have been posted to the WA Police

Facebook page in an attempt to reunite

the pieces with the owners. The public was

encouraged to view the photos and contact

police if they recognised the items.

While very few details have been released,

a comment on the Facebook page did

indicate that WA Police were unsure how

long ago the pieces were stolen.

Jeweller contacted WA Police for more

information regarding the reported charges,

as well as the approximate value of the stolen

jewellery, but had not received a response at

the time of publication.

Michael Hill on the up

Michael Hill International (MHI) recorded

a 5.4 per cent rise in revenue for the six

months ended December 31, 2016.

According to the company’s latest

financial report, sales for the period

totalled $327.5 million, while same-store

sales increased 0.8 per cent year-on-year

to $306 million.

“The first half result was pleasing,

especially given the difficult trading

period in the lead up to December and

the critical Christmas trading period,” the

statement read.

MHI, which finalised its primary listing on

the Australian Securities Exchange in July

2016, consists of the Michael Hill and

Emma & Roe businesses.

In Australia, Michael Hill recorded a

2.9 per cent revenue increase to $182

million compared with the previous year.

The Emma & Roe business achieved a

72 per cent sales rise to $8.7 million

across both regions.

As of December 31, there were 23 Emma

& Roe stores in Australia and one in

New Zealand. A total of 305 Michael Hill

stores existed throughout Australia, New

Zealand, Canada and the US.

Financial Statements

The Directors are pleased to present the financial

statements of Michael Hill International Limited for the

year ended 30 June 2016. The Board of Directors

of Michael Hill International Limited authorised these

financial statements for issue on 18 August 2016.

Emma Hill

Chair

44 Statement of comprehensive income

45 Statement of financial position

46 Statement of changes in equity

47 Cash flow statement

48 Notes to the financial statements

58 Statement of segmented results

MICHAEL HILL INTERNATIONAL 2016 FINANCIAL STATEMENTS 43


The only buying

group that returns

all profits to its

members.

It’s been our way for 35 very successful years.

tellmemore@showcasejewellers.com.au

Profit is just one benefit our members realise from their partnership

with Showcase Jewellers. Other Showcase member benefits include;

• The industry’s most generous supplier discounts going directly to members

• Market leading business systems designed with retail in mind

• A Diamond Specialist working for members and

access to exclusive diamond brands

• No monthly management fee


NEWS

IN BRIEF

*

NATIONWIDE HEADS OVERSEAS

The 2018 locations for the Nationwide

Jewellers biennial trip have been finalised.

More than 100 members will tour South

Africa in May next year. The excursion is

set to commence in Johannesburg, with

members also calling upon Capetown

and Zambia. Those attending will have

the option to visit a Diamond Trading

Company rough sorting facility and a

diamond-cutting factory in Botswana.

*

NEGATIVE SWISS EXPORT RESULTS

Statistics released by the Federation of the

Swiss Watch Industry (FH) revealed that

Swiss watch exports started the year on

a negative note. Exports declined 6.2 per

cent year-on-year for the month of January.

However, the report did outline that the

negative trend of 2016 had ‘flattened out

somewhat’ in the past three months.

*

SYNTHETIC DETECTOR AUDIT

The Diamond Producers Association is

said to be ‘laying the groundwork’ for

a committee that will test diamondscreening

devices. The proposed plan will

reportedly provide more information on

the range of synthetic detecting machines

in the market. A group of industry

representatives were expected to meet in

March to assess the program’s scope.

*

RAPAPORT GRADING REPORT

Rapaport Group has launched a grading

report – the Rapaport Investment

Diamond Report. The certificate is available

for diamonds that meet ‘stringent’ Rapaport

gemmological and investment grade

standards and stones will have a GIA report.

Local design competitions heat up

Australian and New Zealand jewellers have

been asked to put their skills to the test with

the announcement that two award programs

will take place in 2017.

Applications are now open for the

Jewellery Design Awards (JDA), developed

by International Jewellery Fair organiser

Expertise Events.

Expertise Events managing director Gary

Fitz-Roy said the inaugural JDA, which has a

prize pool exceeding $80,000, had generated

significant interest. He explained this was

largely due to the fact that each category

winner received a minimum prize of $2,500 in

cash or product and that the overall Supreme

Award winner received a trip to BaselWorld.

The Jewellers Association of Australia (JAA)

has also confirmed that the Australasian

Jewellery Awards will take place in 2017.

The awards consist of 11 categories, including

the new Contemporary/Non Precious Award,

and the winner of the overall Jeweller of the

Year Award will receive a trip to Hong Kong to

compete in the 2018 International Jewellery

Design Excellence Award program.

Applications for the JAA Australasian

Jewellery Awards were not open at the time

of publication.

Award recipients of the JDA and JAA

Australasian Jewellery Awards will be revealed

in August during separate events scheduled

to take place in Sydney.

Australia bags Pandora’s top store

Pandora has reported a 21 per cent increase

in global revenue for 2016, with Australia

maintaining momentum and yielding the

year’s ‘best-performing’ store.

Australian revenue increased 37 per cent for

the full year compared with 2015. Although

the exact sales figure was not disclosed,

Australia accounted for about 40 per cent

of Asia Pacific’s total sales and therefore,

revenue roughly equated to DKK1.5 billion

(AU$278 million).

The ‘best-performing’ store in terms of sales

was Pandora’s Pitt Street outlet in Sydney.

With a 500 per cent increase in revenue since

2012, Pandora Australia finance vice president

Warren Goode said achieving the ‘top spot’

PANDORA PITT STREET STORE

had been a company objective for some

time. Goode added that he expected 2017

to be another solid year for the region.

The company’s overall sales in 2016 totalled

DKK20.3 billion (AU$3.8 b).

De Beers profits double in 2016

*

ALROSA EMBRACES BRANDING

Alrosa is reportedly upping the ante

with its marketing game. According to

diamonds.net, Alrosa president Andrey

Zharkov stated that pilot marketing

programs promoting Russian-mined

diamonds would take place in ‘key’ regions

this year. Zharkov added that the diamond

industry needed to make a concerted

effort to raise consumer demand, which

was one of the catalysts for the decision.

+ MORE BREAKING NEWS

JEWELLERMAGAZINE.COM

De Beers Group’s profits more than doubled

in 2016, which was accredited to strong

rough diamond demand, cost-cutting

measures and favourable exchange rates.

A 2016 financial report published by De Beers

parent company Anglo American stated

underlying earnings – or profit – jumped

from US$258 million (AU$336 m) in 2015 to

US$667 million (AU$869 m) in 2016.

Revenue increased 30 per cent to US$6.1

billion (AU$7.9 b), driven by a 37 per cent

increase in rough diamond sales to US$5.6

billion (AU$7.3 b).

Rough diamond production decreased 5

per cent to 27.3 million carats. According to

the company statement, this reflected the

decision made in 2015 to scale back mining

operations following weak trading conditions.

The report outlined that rough diamond

demand was expected to normalise in 2017,

with production predicted to be in the range

of 31 to 33 million carats.

14 Jeweller March 2017


NEW PRODUCTS

NEW PRODUCTS

HERE, JEWELLER HAS COMPILED A SNAPSHOT OF THE LATEST PRODUCTS TO HIT THE MARKET.

STONES & SILVER

OLIVIA BURTON

+ MORE NEW PRODUCTS

JEWELLERMAGAZINE.COM

Stones & Silver are now supplying a collection

of natural uncut diamonds that are set in

black wax. Pieces are rhodium-plated sterling

silver. Visit: stonesandsilver.com.au

This 38 mm watch combines a floral print with a grey

leather strap and gold-plated case. Olivia Burton is

distributed by West End Collection.

Visit: westendcollection.com.au

KAGI

The Winter Solstice

pendant is paired with the

Steel Me petite necklace.

The pendant is rhodium

and 18-carat gold-plated

and is accented with cubic

zirconia. Visit: kagi.net

PORTOBELLO

Titled Anne, this 9-carat white gold ring features a

smokey quartz surrounded by diamonds. The piece

is part of the Kameleon collection, which offers

personalised design choices.

Visit: portobellojewellery.com.au

WORTH &

DOUGLAS

New designs have been released in the

Ziro bi-tones ring range. Selected styles

are now available with black zirconium

bases and gold or sterling silver inlays.

Visit: wdrings.com

DISNEY COUTURE

This 14-carat gold-plated charm bracelet

is from the Beauty and the Beast

collection. The piece features characters

from the Disney fairytale’s enchanted

castle. Visit: disneycouture.com.au

COLLECTIVE

DESIGNS

The supplier continues to collate collections from

around the world with this necklace by Gabrielle

Bruni. The piece is rhodium-plated sterling silver

with 14-carat gold plating.

Visit: collectivedesigns.com.au

March 2017 Jeweller 15


D

I S C O V E R

MEANING

Y O U R

IT’S YOUR STORY.

HOW WILL YOU SHARE

IT WITH THE WORLD?


FOLLOW THESE STEPS TO CREATE A PERSONALISED

STACK THAT TELLS YOUR UNIQUE STORY - YOUR WAY

1.

Start from the beginning

with a birthstone

2.

Add something signature

like your initial

3.

Show your favourite colours

4.

Celebrate your unique

energy with a meaningful

symbol you resonate with

5.

Mix in some texture with a

metal beaded bangle

6.

Top it off with your soul

number


PERSONALISED JEWELLERY

One of a

kind

PERSONALISATION IS A MAJOR

TREND BUT WHAT IS IT ABOUT

BEING IN CHARGE THAT EXCITES

CONSUMERS AND HOW WILL

IT IMPACT JEWELLERY IN 2017?

ANGELA TUFVESSON REPORTS.

ne might say the hype started when customers of luxury

brands like Louis Vuitton and Hermes began requesting

bespoke products in return for the thousands of dollars

they spent on handbags or scarves. In Australia, allowing

customers to choose the colour, material and style of a pair of

shoes has catapulted online retailer Shoes of Prey from three

people to almost 200 across five offices, and all in just seven years.

This is the power of personalisation or customisation, as it’s also

known. Arguably the hottest trend in retail, it flips the switch from

passive buyer to active purchaser and puts the consumer in charge

of their consumption destiny. As a result, the way retailers do

business has undergone a profound shift, even among jewellers

whose wares have long been classed as personalised purchases.

NIKKI LISSONI

Take Tiffany & Co, for example, which used Instagram to promote

its personalised engraving services as ’thoughtful’ and ’artisanal’

additions to Christmas gifts. Likewise, Pandora Australia introduced

a ‘Gift Bar’ pop-up store concept in time for the 2016 festive season,

where customers could use an interactive, style-matching app

18 Jeweller March 2017


TIFFANY & CO

LOVE LOCKETS

to choose the perfect gift, after which Pandora supplied personalised

gift-wrapping.

The shift towards personalisation says much about modern

consumers; mostly that people like to add some personal flair to

the products they buy and if retailers want to ensure customer loyalty,

they’d better deliver.

MASTERS OF THEIR OWN DESTINY

According to UK research by Deloitte, 36 per cent of consumers are

interested in personalised products or services and one in five interested

consumers are willing to pay a 20 per cent premium to get it.

“Everyone wants to feel special,” Céline Fenech, consumer business

research manager at Deloitte UK, says. “What used to be the privilege

of a few has become increasingly affordable and accessible to many.

Consumers have not only embraced customised products to express

their individuality and enjoy a level of exclusivity but they are also

rejecting mass-produced goods that ‘fit all’.”

Clinical psychologist Dr Jennifer Baumgartner is the US-based author

of You Are What You Wear: What Your Clothes Reveal About You.

She agrees that increased demand for personalisation signals growing

dissatisfaction with mass-produced goods.

“It’s a response to fast-fashion,” Baumgartner says. “It’s been going on

for a couple of years now as clothing has become more disposable,

easier to get, cheaper, and, as the pace of trends is increasing,

the rates of our trends are almost weekly now. Fast-fashion has a

disposable quality but with customisation we’re able to personalise;

we’re able to make something our own.”

Plus, she continues, personalised fashion is the freest form of selfexpression:

“It allows us to express emotion and be able to tailor

what we wear to what speaks to us and our individuality.”

Does it follow that consumers are becoming increasingly narcissistic?

Pippa Kulmar, a senior strategist at retail consultancy Retail Oasis,

thinks so.

“It comes back to a question of identity and the fact that we are

egocentric beings,” she says. “Having our names on cans of soft

drink and the like signifies identity and who you are as a person.”

Indeed, studies show that narcissism has increased in the last three

decades due to the rise of social media and self-promoting trends.

A report by Washington State University (WSU), University of St

March 2017 Jeweller 19


PERSONALISED JEWELLERY

Gallen and Ruhr University Bochum, titled

It is all about me: role of narcissism in

customised products, found this trend

in narcissism is causing retail and

manufacturing businesses that offer

customisable products to rethink their

marketing strategies. Retailers are advised to

offer products with a variety of customisable

attributes like colour and style in markets

populated by narcissists, as well as share

information such as how frequently an

option is selected by other consumers.

DECISIONS, DECISIONS

In addition to the need to satisfy their

narcissistic sides, could the preference for

personalisation be attributed to a desire for

consumers to get exactly what they want?

This would be the case if consumers knew

their exact specifications; however, most

consumers don’t have a clear idea of what

they want a pair of shoes, a scarf or piece of

jewellery to look like, University of Geneva

economic psychologist Professor Benjamin

Scheibehenne says.

“WITH THINGS LIKE THE SELFIE

TREND, WE’RE MUCH MORE

EGOCENTRIC AND NARCISSISTIC

BUT I DON’T WANT PEOPLE TO VIEW

THAT IN A NEGATIVE LIGHT.”

DAWNN KAREN

One of the report’s studies even

demonstrated that businesses could

put consumers into a “temporary narcissistic

state of mind” with marketing techniques.

WSU marketing professor and co-author

of the report David Sprott suggests

businesses could create narcissistic ’states’

with appropriate word choice.

“A Nike tagline ‘my mass-customised Nike

shoes look amazing,’ could be changed to

‘my mass-customised Nike shoes impress,’

to induce a narcissistic state that encourages

a consumer to self-design a unique product,”

Sprott says.

Fashion psychologist Dawnn Karen, the

US-based founder of Fashion Psychology

Institute, believes focusing on oneself

isn’t necessarily a negative trait and may

in fact help to develop greater emotional

connection to purchases, which bodes well

for retailers.

“We’re more into ourselves,” she says. “With

things like the selfie trend, we’re much more

egocentric and narcissistic but I don’t want

people to view that in a negative light.”

Instead, Karen states narcissism is a natural

consequence of the move from massproduced

goods to personalised products

that allows consumers to develop stronger

connections to products.

What’s more, he believes personalisation

generally only happens after consumers have

made decisions about core product attributes

like size and colour. Retailers must therefore

be mindful of making sure they help

consumers narrow down their core criteria

before introducing a personalised option so

as not to overcomplicate the process.

“There is a core of features that are really

relevant and drive the decision process,”

Scheibehenne says. “On top of these, there

is a personalisation where you can freely

choose a few aspects – you add a little feature

so that it becomes a product that you can

use to express your personality. I think these

are two different processes that go one after

the other.”

Dr Isabella Maggioni, a senior research

consultant at the Australian Consumer,

Retail and Services research unit at Monash

Business School, agrees that buying

personalised products can be a more onerous

process for consumers than mass-produced

goods. She says retailers like Shoes of

Prey and Pandora experienced customers

dropping out mid-purchase because the

sheer number of styles and combinations

were so overwhelming. As such, they’ve had

to simplify the buying process.

“What they’ve done is create some

inspirations; some sample styles that a person


PERSONALISED JEWELLERY

Handthread

facetted

REAL gems

Detachable sliders

sold separately

can start modifying from,” Maggioni states.

“This helps to reduce the level of effort,

which could be mental effort but also

physical effort to actually customise and put

together a product. This is something that

needs to be taken into account when retailers

and/or brands decide to go down the road

of personalisation.”

LOYALTY TO BRAND OR SELF?

It may seem like personalisation drives selfloyalty

rather than brand loyalty but Maggioni

says putting the consumer in charge helps to

strengthen ties with brands and retailers.

however, as personalisation influences the

full retail spectrum, does jewellery risk losing

its appeal as a truly personal gift?

Not at all, according to Fenech, who believes

the rise of personalisation presents jewellers

with opportunities rather than threats.

“It encourages more people to see

personalisation as something accessible to

all,” she says. “While some product categories

such as jewellery are better positioned than

others to offer customised products, there

is room for many categories in this space as

there are several degrees and drivers

of personalisation.”

+

“WHEN THE CUSTOMER HAS THE

OPPORTUNITY TO CREATE THEIR

OWN STYLE, THEY TEND TO COME

BACK TO THE SAME BRAND.”

ISABELLA MAGGIONI

Confetti

IS COMING!

Don’t miss your exclusive

opportunity to stock this

must have new collection.

Contact Rachael

at Kagi today:

P: +64 22 657 8193

E: Rachael@kagi.net

“Personalisation is definitely implemented

for loyalty creation,” she says. “It’s about

creating a strong relationship with customers

but making the customer feel the brand

understands them. When the customer has

the opportunity to create their own style,

they tend to come back to the same brand

and they tend to customise products for

other people if they’re doing gifts.”

Karen says personalised products encourage

a stronger sense of ownership that boosts

word-of-mouth referrals.

“Consumers have a strong sense of

ownership and control that they contributed

to the making of this product,” she explains.

“Offering personalised products to

consumers will create more loyalty and more

tie to the brand, which will in turn increase

sales because consumers want everyone to

feel what they felt when they customised

their bracelets – she’s got to tell her mum;

she’s got to tell her sister; she’s got to tell her

best friend; she’s got to tell everyone and

she’s going to get her daughter one on her

10th birthday.”

INTO THE FUTURE

Long before personalised Coca-Cola cans

and jars of Nutella appeared, consumers

viewed jewellery as a personalised purchase;

This is good news because product

personalisation shows no signs of abating.

“It’s going to be one of the key themes,

especially for this year,” Maggioni

comments. “There are also some interesting

developments in technology such as the

application and potential of 3D printing

– where it is becoming possible to create

specific and customised products on the

spot in store. This is something that is set

to boom in the next few years.”

Further, Maggioni suggests personalisation

perfectly taps into the desires of a ‘new’

generation of consumer: “If we look at the

new generation, those specific needs of

feeling unique, valued and original are key

factors defining the new generation,

in particular Generation Z.”

Ultimately, Fenech says niche

categories like fashion and

jewellery are well placed to

thrive in a personalised

consumption

environment because

they are products with

which consumers develop

an emotional attachment –

narcissistic

or otherwise. i

TWIN PLAZA METALS


MOTHER’S DAY

A mother

NAJO

MOTHER’S DAY SHOULD BE

A JOYOUS OCCASION FOR

FAMILIES AND JEWELLERS

ALIKE. EMILY MOBBS FINDS OUT

WHAT IT TAKES TO GET THOSE

CASH REGISTERS RINGING.

n retail, special occasions are worth celebrating and now that Christmas

and Valentine’s Day are over, attention turns to the emotionally-driven

Mother’s Day.

Competition is rife in the gift-giving sector; however, retail industry bodies

such as the Australian Retailers Association (ARA) and the National Retail

Association (NRA) have traditionally listed jewellery as a category that benefits

from additional sales relating to the all-important event.

“Last year, we predicted jewellery sales would reach a whopping $135.3 million,

which was a 4.3 per cent increase compared with 2015 and represented

approximately 8.7 per cent of all sales spent in the lead-up to Mother’s Day,” NRA

CEO Dominique Lamb says.

Overall Mother’s Day retail spend in 2016 was estimated to fall between $1.5

billion and $2 billion, according to the ARA and NRA. ARA executive director

Russell Zimmerman added that Mother’s Day was one of Australia’s biggest

spending occasions, second only to Christmas.

It would appear there’s no shortage of sales to be won. With this in mind, Jeweller

has sought advice from various retail specialists and suppliers on how retailers

can gain their fair share of the sales pie for Mother’s Day, which this year falls on

Sunday May 14.

March 2017 Jeweller 23


Dress

GENUINE

CULTURED

PEARLS

When it comes to making a good first impression, Retail Doctor

Group marketing and global retail insights manager Vikki Weston

says jewellers should consider the three-second rule.

“In-store and shop window visual merchandising has just three

seconds to make an impact on a customer,” she states, adding that

it is therefore crucial for retailers to ask themselves if displays capture

attention, clearly show what is sold and motivate consumers to

enter the store.

Natalie Coulter, director of Belle Flaneur and a teacher for Sydney

TAFE’s visual merchandising department, says currency is key to a

successful Mother’s Day display.

“Retailers sometimes fall into the trap of creating a display that’s a

little bit ‘mumsy’ and perhaps dated,” she explains.

Coulter warns against playing victim to ‘soft’ and ‘nurturing’

presentations that can easily look old-fashioned with dried-up fake

flowers and ribbon.

“What we want is to remain really current,” she advises, stating that

identifying Pantone colour trends is a good place to start.

“Greenery is the 2017 Pantone Colour of the Year but there are other

colours in this year’s palette and tones from 2016 like rose quartz and

serenity that are still relevant,” she says.

Coulter also points to homewares, florals, textures and objects – she

says geometric, empty square shapes are in – as areas of inspiration.

Being current doesn’t necessarily mean allocating large budgets for

new display items either.

“I’m all into reinvesting in some really nice Mother’s Day props, and

re-purposing those or re-imagining those year after year,” Coulter

says. “There’s nothing wrong with faux flowers and fake greenery

but let’s take them out [of storage] and look after them like they’re

really precious, and then maybe add the colour of the season into

the display somehow.”

www.ikecho.com.au


MOTHER’S DAY

While Coulter believes a Mother’s Day display should be installed

between two and three weeks prior to that special Sunday, Sigrid

de Kaste, a former jeweller and marketing consultant and director

of Stickybeak Marketing, adds that preparations can start as early

as the Christmas before.

“I suggest starting customer research around this [Mother’s Day] as

early as Christmas,” de Kaste says. “Gather what the customers say,

keep records and then use the customers’ words and likes to create

your marketing three weeks out from Mother’s Day.”

So the display is up and running but when should it be taken down?

“No one really wants to look at Mother’s Day the day after Mother’s

Day,” Coulter states, adding, “I would say get your Mother’s Day

window display out [after Sunday close] and replace it with

something really clean.”

“It doesn’t need to include props or anything because you’ve just

put a lot of energy into the Mother’s Day installation. Give yourself

a proper break; give the consumer a break by paring it right back

and then think about what the next holiday is that you can start

preparing for.”

DIP FOR A DIAMOND

When asked if she has any out-of-the-box examples of how jewellers

can stand out from the crowd and increase sales, de Kaste recounts

her ‘most successful’ Mother’s Day promotion, Dip for a Diamond, held

when operating her jewellery business.

“We put one quality diamond into a glass jar filled with hundreds of

cubic zirconia of the same size,” she explains.

“The activity started about two weeks out from Mother’s Day and

customers were encouraged to participate by filling in their details

on a slip that went into a box in the shop. They would then use a

pair of diamond tweezers to pick one stone out of the jar, which was

immediately tested.”

Customers who missed out on the diamond were offered a Mother’s

Day special where they received a complimentary second cubic

zirconia to be made into stud earrings for a set price.

“We also offered to draw the diamond at the end if no one picked

it – hence the details kept – and we made a big deal of the final day

for customers to come into the store for the draw with lots of other

in-store specials,” she adds. “There are many ways this activity can be

used with other jewellery and in other forms – think outside the box

but inside your customer and target market.”

.

i

l:

i I

. ,,. ,.

I

CLU


®

TONES & SILVER

WHOLESALERS OF QUALITY JEWELLERY

ESTABLISHED & TRUSTED SINCE 2003

MOTHER’S DAY

ALEX AND ANI

Testing,

Neil Arrowsmith is global CEO of Greater

Group, a retail design consultancy with

customers including Alex and Ani, Pandora,

Bonds, JB Hi-Fi and Vodafone.

As part of research conducted for a jewellery

chain to establish the ‘impact’ of various

types of window displays, Arrowsmith’s

team installed a different display over

four consecutive weeks.

WEEK 1 – Minimalistic display

without prices

WEEK 2 – Minimalistic display

with prominent prices

WEEK 3 – Massive ‘hello girls’ type

sexy poster

WEEK 4 – Lots and lots of stock

with prices

HEART & GRACE

According to Arrowsmith, the winner – consumers that looked and

entered the store (closure rate wasn’t measured) – was Week 4 by

a ‘significant way’, followed by Week 2.

The test was for a store located in a shopping centre, and Arrowsmith

states that if the store was on a high street with lots of passing road

traffic, then Week 3 would be his overwhelming choice.

Ph: +61 3 9587 1215

Email: info@stonesandsilver.com.au

Surely, this offers food for thought.


Oh

IKECHO PEARLS

There are many demographics shopping for

Mother’s Day gifts; however, Retail Doctor

Group marketing and global retail insights

manager Vikki Weston says there’s value in

paying attention to men.

“A study conducted in the UK by Mintel

last year found that whilst women are still

more likely to buy a Mother’s Day present

than men, when men do spend, they spend

more,” she explains. “Mintel’s study saw sons

spending £12.18 (approximately AU$20)

more on mothers than daughters did on

Mother’s Day.”

Weston says the study also highlights that

men are more likely to purchase on impulse

than women, which is an important factor

to consider. How can retailers ensure men

buy jewellery for Mother’s Day in 2017?

Weston has this advice:

• Remember men seek an efficient and

seamless experience and are less likely

[than women] to wander and ponder

for inspiration

• Sale assistants need to be aware of

body language when interacting with

a male customer – men are often very

self-conscious when shopping for a

gift or in an environment they are not

familiar with

• Open questions from sales staff based

on practicalities such as budget and

mother’s style work well in generating

conversation and speeding up the

process of the sale for all involved

• Keep the conversation simple when

talking about style. For example, big

bold jewellery versus elegant small

jewellery. The sales assistant should

make recommendations based on this

information but also suggest the store’s

most popular items or Mother’s Day

specials as this will give the customer

confidence in making a decision

• If the sales assistant is not getting great

responses to these questions, don’t

push it as a male consumer will flee if

he feels pressured!

• Pre-packaged gift sets/boxes and small

add-on purchases at POS will always

work well as they take out the stress

and hassle of decision-making

• Suggest a gift receipt if possible so

that the customer knows their mother

can return if they don’t like it. From

my experience, men are more likely to

purchase if they can get a gift receipt

as once again, the risk is minimised

• When it comes to completing the sale,

offer complimentary gift-wrapping.

The majority of male customers are

time poor, self-conscious and can

get frustrated easily within shopping

experiences. Make it easy.

SamsGroup.com.au

Sale@samsgroup.com.au

02 9290 2199


>

Timesupply

watches + jewellery

Time to

No amount of marketing and sales expertise will

work unless stores have the goods to back it up.

A selection of suppliers provide insight on some

of the products and special promotions expected

to whet consumer appetites this year.

<

“Our Thomas Sabo Charm Club spring/summer

2017 collection release features new charms

that are perfect for Mother’s Day gifts. We are

also providing a sales-driving promotion: spend

$99 on Thomas Sabo jewellery to receive a

free Charm Club bracelet.” – Phil Edwards,

Duraflex Group Australia

“We already have a special necklace

called My Mother and are working

on a new piece that will complement

this. In addition, we will give away

our limited edition makeup purse

to consumers with each necklace

sold.” – Helen Thompson-Carter,

Fabuleux Vous

“We have South Sea rings, pendants and

stud earrings in 9-carat yellow gold, which

can be purchased separately or as a set

for a special price. We think on this special

occasion, something as beautiful and unique

as South Sea pearls are better suited than

other more common pearls and setting in

9-carat yellow gold makes it all the more

appealing.” – Erica Madsen, Ikecho Pearls

>

“Our new Cluse La Roche Petite range

launches just in time for Mother’s Day – a

33 mm face made from natural marble to

create a beautifully unique watch. We are

also running a special gift pack featuring two

of our best-selling items – the La Boheme

watch and additional strap.” –

Simon Garber, Heart & Grace

>

<

“We are launching a dedicated Alex and Ani

collection of Mother’s Day pieces, designed

to celebrate the unconditional love of

mum. The highlight pieces are a stunning

three-piece value set in light blue or light

aqua with ‘Mum’ on the enamel. We are

introducing another set called Infinite Love,

which is a two-piece value set – one with

‘Daughter’ and one with ‘Mother’.” –

Karin Adcock, House of Brands

“Mother’s Day is big for our brand, Stow Lockets.

We expect pieces such as this 9-carat gold

Stow locket and chain featuring various charms,

including the gold Stowaway boy, girl and my

family, to work well as a precious gift for mum.” –

Daniel Adriatico, Stow Lockets

>

Timesupply

watches + jewellery

p +61 (0)8 8221 5580

sales@timesupply.com.au

timesupply.com.au

exclusive distributor AU & NZ

“Consumers who spend more than $129 will receive our

‘Love You’ necklace as a gift. The necklace includes an

engraved 12 mm sterling silver disc with thread-through

belcher chain and is reversible. The offer is available to

retailers in packs of 10.” – Jo Tory, Najo


DIAMOND BUBBLE

Courting catastrophe:

tulip and diamond

MANIA

TWO INVESTMENT BUBBLES OVER

340 YEARS APART PROVIDE PROOF

OF EDMUND BURKE’S FAMOUS

OBSERVATION THAT THOSE WHO

DO NOT KNOW HISTORY ARE

DOOMED TO REPEAT IT. NURIT

ROTHMANN REPORTS.

t was 1554 when Ogier Ghiselin de Busbecq, ambassador of Holy Roman

Emperor Ferdinand I to the court of Suleiman the Magnificent, the Sultan

of the Ottoman Empire, returned to Vienna from Constantinople carrying

the first tulip bulbs ever seen in Western Europe. Little did he know that

this simple act would set off a chain of events resulting in the first

speculative bubble in recorded history.

It would become known as Tulip Mania – Tulips began popping up from Vienna

to Augsburg and all the way west to the shores of the North Sea; however, their

transformation into the national flower of the Netherlands began in 1593 after

Flemish botanist Carolus Clusius published an academic paper at the University

of Leiden that showed the plants were unusually able to tolerate and adapt to

the difficult and harsh weather conditions of the Low Countries. Weather was

not the only reason for the increasing popularity of the tulip, whose intense

colours provide it with a noble appearance that certainly helped turn it into a

sought-after status symbol.

All this was happening during a period when the Netherlands was at the

height of its economic prowess. An abundance of wealth held by its citizens

coupled with an undersupply of tulips led to the price of tulips doubling

from year to year. As the economic benefits of the trend became more obvious,

the number of individuals getting in on the action rose exponentially – flower

auctions were taking place everywhere in Amsterdam, Haarlem and other

Dutch cities; people were taking out loans to trade in futures, which essentially

meant buying plants that had not yet grown, let alone bloomed. Contracts

could be purchased one day and sold the next for a sizeable premium and it

seemed prices could go nowhere else but up.

At the height of Tulip Mania in the winter of 1637, certain single tulip bulbs

were being sold for more than 10 times the annual income of a skilled

professional then, suddenly and without warning, a rumour spread about one

specific type of tulip not finding a buyer at auction. The startling news spread

quickly and panic set in. Like all bubbles, this one had burst. Investors were left

with little more than a handful of dry and almost worthless tulip bulbs.

THE TURN OF DIAMOND MANIA

For diamond industry old-timers, the story of Tulip Mania will rekindle stilltraumatic

memories of the diamond investment bubble in the late 1970s

and early 1980s.

It essentially began in 1976 when an Israeli government anxious to attract

foreign currency through the quick development of its country’s diamond

industry began supplying huge amounts of capital to the commercial banks

at very low interest rates. By passing the discount onto their clients, it was

hoped that the Israeli diamond sector would manage to increase inventory

and, consequently, exports.

March 2017 Jeweller 29


DIAMOND BUBBLE

inventories and receivables, were forced to declare bankruptcy, among them

some of the most well-known names in the industry. Recovery did not come

until about 1987 on the back of the massive expansion of a diamond-jewellery

buying culture in Japan.

As part of the new policy, US dollars brought into Israel through the sale of

diamonds received more favourable exchange rates. This made speculating in

rough diamonds a particularly attractive prospect, resulting in the creation of

apparent demand for rough, which bore no relationship to what was happening

in the polished diamond market.

Because prices were rising so rapidly, it made sense for companies to simply retrade

boxes of rough rather than cut and polish them as there was no certainty

that they would get a viable return in the polished diamond consumer markets.

Making matters worse, the standard practice was for a diamantaire to deposit

their rough in a bank as collateral for a low-interest loan, which then was mainly

being used to buy more rough diamonds. Israel’s three main diamond-financing

banks were holding enough over-valued inventory to threaten the stability of

the entire world market.

The fever that began in Israel spread to Antwerp and New York and also began

catching the attention of speculators in the investment community. Diamond

investment firms began opening in the US and Europe, promoting one carat

and larger polished diamonds, sometimes with buy-back agreements.

In March 1977, a 1-carat, D-colour, flawless diamond was selling in the trade

for US$7,200 (AU$9,360). Three years later, in March 1980, that same stone could

fetch more than US$60,000 (AU$78,000).

THE SPECULATIVE BUBBLE BURSTS

In an attempt to prevent the markets from veering completely out of control,

De Beers Group began adding sizeable surcharges on sightholder boxes in the

spring of 1978, making it known to the Israeli banks that they were effectively

financing diamonds at grossly-inflated values.

The first surcharge was 40 per cent in March 1978 and that was followed by a

25 per cent surcharge in May, a 15 per cent surcharge in June and a 10 per cent

surcharge in July. The diamond producer also cancelled the sights of companies

that it knew were taking premiums on unopened boxes or who were simply

financially unstable.

De Beers then instituted a 30 per cent average price increase in August 1978,

a 13 per cent price increase in September 1979 and a 12 per cent price increase

in February 1980.

De Beers’ actions, coupled with the onset of a severe economic recession in

the US and Western Europe, led to the deflation and ultimate bursting of the

speculative bubble.

Equilibrium was eventually re-established in the rough diamond market and

the prices for high-quality polished stones began returning to more reasonable

levels. Between March 1980 and September 1981, the value of a 1-carat,

D-colour, flawless diamond halved and, by September 1985, it was selling at

about 20 per cent of its price just four years earlier.

The effect of this on the diamond sector was devastating. Hundreds of

companies that were holding onto debts, sometimes worth multiples of their

INVESTMENT PROSPECTS FOR A NON-COMMODITY

The popularity of a diamond as a means of investment in the late 1970s

coincided with a general increase in the commodity investment market;

however, the fact is that diamonds have always had difficulty conforming to

the profile of a typical commodity.

Commonly, commodities are products that can be bought in bulk and usually

do not have any – or very few – distinguishing characteristics among individual

units. A general requirement for a product to be treated as a commodity is that

units can be mutually substituted. For example, copper and oil are commodities,

where the price per unit changes almost daily across the globe, according to

supply and demand on various commodity markets. The number of copper

and oil categories is limited. In contrast, a car is not a commodity because it is

produced in numerous different-quality levels and different types. The same

essentially is true of the diamond.

When rough diamonds arrive from the mines, De Beers’ Diamond Trading

Company sorts them into more than 11,000 different categories according to

their size, shape, quality and colour. Polished gem-quality diamonds come in

hundreds of different categories, based on the particular permutations of carat,

clarity, colour, cut and shapes of the stones. It is virtually impossible to substitute

one diamond for another and therefore it is almost impossible to qualify the

diamond as a commodity.

Despite both this and also the trauma of the investment bubble of the 1970s

and 1980s, many diamond dealers still fantasize about selling their products as

they would a commodity, believing that this will open another sales avenue.

This is not to say that diamonds do not have investment value. They most

certainly do but their value is mainly as preservers of wealth. When the diamond

business works properly, diamond prices are non-volatile and they rise slowly

and steadily, hopefully a few ticks above the rate of inflation.

The anchor of the diamond business remains the jewellery market and the bridal

jewellery market in particular. In the US, the country that is responsible for more

than 40 per cent of all diamond sales, up to 85 per cent of the diamond jewellery

are associated with matrimony.

It is also worth remembering that, regardless of the ebb and flow of economies

or the inflation and deflation of speculative bubbles, young people continue

to get married and, when they do, they generally buy diamonds. The industry’s

primary mission is to make certain that they continue doing so.

For those who are interested in learning more about the disturbing but

fascinating story of the diamond investment bubble of the 1970s and 1980s,

please read An Economic Review of the Past Decade in Diamonds, which was

written by William E Boyajian, then-president of the Gemological Institute of

America (GIA), in 1988. It was published in the autumn 1988 edition of the GIA

Gems and Gemology journal. i

NURIT ROTHMANN specialises in brokering rough

diamond deals, managing tenders and writing market

reports. Learn more: n-rothmann.com

30 Jeweller March 2017


RETAIL TRENDS

Lifting the lid

on retail trends

A RAFT OF DEVELOPMENTS ARE

EMERGING TO MEET CHANGING

CONSUMER EXPECTATIONS.

RICHARD SHAPIRO PROVIDES

INSIGHT ON THE TOP TRENDS

TO IMPACT RETAILERS IN 2017.

ast year was an exciting one for the retail industry. A parade of innovative

options, widgets and new businesses wowed consumers and continued

to drive a sea change in their preferences and expectations. Online and

bricks-and-mortar retailers alike found themselves scrambling to stay

relevant and competitive. Retailers can expect more of the same in 2017

as shifting consumer attitudes force them to rethink and possibly reinvent their

channels, product mixes and service strategies.

The New Year promises to be a winner for retailers and consumers alike. Looking

ahead, here are some of the trends expected to feature.

THE RISE OF THE REVIEW

When Amazon began encouraging its customers back in 1995 to post reviews of

the products they were purchasing, the initial reaction was that the online retailer

had lost its marbles. Some critics considered it a recipe for retail suicide. Fastforward

20 years and reviews are now a fixture of retail that consumers trust and

rely upon more than ever.

March 2017 Jeweller 31


RETAIL TRENDS

Who doesn’t scour reviews to find the ‘perfect’ hotel or vacuum cleaner?

Consumers have become review junkies, studying product comments and

relying on the customer community to answer their toughest questions.

In 2017, businesses will be evaluating comments from their customers and their

competitor’s customers more diligently, using ad hoc reviews strategically and

responding to those who comment in a more systematic fashion.

BRICKS-AND-MORTAR IS STILL RELEVANT

Bricks-and-mortar will experience continued stagnation in 2017 because of the

onslaught of online shopping; however, this stagnation comes with a caveat as

the good news for many terrestrial retail categories, particularly jewellery, is that

the basic human need to see, touch, feel and try items before purchasing is an

enduring one that will keep traditional retailers alive.

Online searches for locations nearest to shoppers are on the upswing, indicating

that consumers still want ‘hands on’ before they buy. Further proof of the power

of bricks-and-mortar is the fact that Amazon has announced plans to expand its

physical footprint by opening stores in Australia.

MORE BRAND-ONLY STORES

Brands will continue to open company-owned boutiques. This concept holds

undeniable appeal for any brand wanting to tell and control its own story, sales,

inventory and service ethos in a way that many department stores are simply

unprepared to do.

This doesn’t mean brands will cease selling product via independent retailers

but it does mean they will be more selective and allow only those retailers who

provide exceptional customer service to carry their inventory.

SENSORY CUSTOMER EXPERIENCES

The customer experience is all encompassing. Stores today aren’t just about the

products and services they offer. Look, feel and aroma are all key brand markers

important to the experience now. Brands are creating proprietary scents not

only for use in stores but also for use in the packaging of online purchases –

consumers will recognise the brand before they even open the box! Lighting,

colour, scent, texture, sound and taste will all become an integral part of the

competitive differentiator.

AMAZON’S PHASE 2 – SHOPPING WITH ALEXA

Amazon continues to take centre stage and it’s not only due to great customer

service, competitive pricing, an unbeatable product mix, reliable user reviews,

strong support and the gold standard Prime membership program offering

member discounts, same-day delivery and entertainment options.

Now, Amazon’s ‘Just Ask’ feature on virtual assistant Echo (Alexa) has essentially

made shopping effortless. Alexa offers daily promotions and special deals,

supported by a device in Echo that knows the customer’s buying history,

delivery address and payment preferences. The reverberations of this winning

combination will be felt by every retailer; it’s a game changer forcing other

businesses to work even harder to make their shopping experience easy.

GEO-FENCING, GEO-TARGETING, GEO-CONQUESTING

Location and proximity-based messaging with store beacons is fast becoming

a predominant tool that bricks-and-mortar retailers use to communicate with

nearby and in-store customers. It’s still early days for this technology yet it

already takes many forms – US clothing and accessories retailer American Eagle

Outfitters sends targeted offers to any shopper with the store’s app installed just

as that shopper pulls into the car park; meat production company Oscar Mayer

uses deli counter beacons to geo-target customers, highlighting menu specials

including its products. Geo-conquesting, meanwhile, allows businesses to send

customers messages when they are about to visit a competitor.

Luxury watch brand Audemars Piquet is another example of retailers using

beacon technology – when a customer picks up a watch in-store, a screen

providing information about that model’s price and technical specifications

automatically opens on a nearby smart device. Beacon technology is poised

to outgrow its current, relatively-limited geographic range in 2017 as an array

of new applications emerge.

VIRTUAL SHOPPING

Retailers will enhance and personalise the in-store shopping experience through

the use of holograms and virtual reality displays. One such application lets

customers ‘try on’ an outfit without ever changing clothes, while others create

entire virtual environments.

Retailers will be particularly drawn to the technology as they discover how

relatively little physical space is required to create dynamic 3D experiences.

Outdoor sports retailer The North Face has fashioned a display that places the

customer in the middle of Yosemite National Park, while US hardware giant

Lowe’s uses Microsoft’s HoloLens technology to let any homeowner design their

virtual dream kitchen with every imaginable appliance.

SHOPPING CENTRES IN TRANSITION

The traditional shopping centre is passé. Today’s consumer wants everything

conveniently located in one place. Thus the shopping centre is being redefined

as a multi-purpose space that showcases not only traditional staples such as

clothing, fashion accessories, home goods and food but also neighbourhoodstyle

shops and services.

In these new shopping centres, consumers will find everything they need,

including doctor’s offices, schools, libraries, hair salons, grocery stores, real estate

and business offices, restaurants, movie theatres and, yes, residential apartments.

The idea is once people enter, they’ll never have to leave. Look at Hudson Yards

in Manhattan and similar projects in Australia like Arden Gardens in Melbourne

and Northshore Hamilton in Brisbane as the new standard.

INSTANT GRATIFICATION

THINK HUMAN-CONNECT FIRST

THEN WORK BACKWARDS TO

ADD THE TECHNOLOGY FEATURES

THAT CUSTOMERS ARE MOST

LIKELY TO USE, LOVE AND TELL

THEIR FRIENDS ABOUT

Consumers feel busier than ever before and they appreciate instant gratification.

This, coupled with the staggering popularity of mobile and online shopping,

have given rise to an army of consumers who purchase on their devices then

drive to nearby outlets to retrieve their bounty. Savvy computer hardware

and software business Newegg now offers a free ‘will-call’ service option that

32 Jeweller March 2017


RETAIL TRENDS

provides local customers the convenience of pick up from the Newegg Hybrid

Centre in place of shipping. Bricks-and-mortar retailers that make the pickup

process an effortless and positive experience for online buyers are sure to

generate repeat business. Naturally, this won’t work with all jewellery purchases

but may be an option for branded jewellery products that customers are

comfortable purchasing online.

GPS DELIVERY TRACKING

Today’s consumers expect companies to have technology in place to pinpoint

deliveries. Some businesses do fulfil this request but others have yet to make

the necessary investment. If shoppers want to know if that pizza they ordered

is still in the oven or almost at the door, Domino’s has the solution. Similar to

Uber’s technology, the company’s ‘pizza tracker’ uses GPS to let customers know

exactly where the driver is on the route. No matter what the good or service is,

telling customers their purchases are “on the way” is no longer adequate.

THE PACKAGING REVOLUTION

Everyone loves receiving parcels and this feeling is being upgraded through

enhanced package design. Packaging is an integral part of the customer

experience, significant for both the brand and the retailer. It is another piece of

the differentiator puzzle and supports a business’ unique signature. Can anyone

imagine receiving an Apple product in a large box filled with styrofoam peanuts

or bubble wrap?

SUBSCRIPTION SERVICES

Companies such as Harry’s and Dollar Shave Club have become fierce

competitors to Gillette, a division of Procter and Gamble – shavers, razor blades

and shaving creams arrive automatically and are specifically tailored to a

consumer’s individual preferences.

This is built-in repeat business and what more could any retailer ask? In addition

to consistently selecting and sending only the right stuff, astute subscription

services such as Trunk Club, Birchbox and Loot Crate utilise innovative, distinctive

packaging that enhances the customer experience. It’s happening in the

jewellery sector too. Businesses such as Myntbox, Bezel Box and Rocksbox are

offering jewellery on a subscription service basis.

PEER-TO-PEER E-COMMERCE

Social networks have for some time permitted and occasionally even helped

users sell to one another but with the official entry of Facebook Marketplace –

the social media giant’s version of peer-to-peer e-commerce allowing users to

buy and sell items within their personal networks – retailers owe it to themselves

to take notice and watch what happens next.

RENTING VERSUS OWNING

The notion of a sustainable economy is often in the news and one result is an

increasing appreciation of the economics of sharing, especially among the

youth. How often is a suitcase used? What about a leaf blower? Does every

home on the block really need one? Rent the Runway has revolutionised the

way women are ‘purchasing’ evening gowns and accessories, while subscription

service Rocksbox uses a ‘loan’ model. This trend is neither new nor a trifling one

in some European nations so don’t be surprised as it takes hold in other regions.

MEMBERSHIP/LOYALTY PROGRAMS

No doubt inspired by the success of Amazon Prime, most major retailers are

experimenting with membership programs. Bed Bath and Beyond is looking

to eliminate its coveted “20 per cent off a single item” coupon that customers

receive in the mail, online or clip from a magazine. The business has initiated an

invitation-only, fee-based membership loyalty program that offers 20 per cent

off the entire purchase any time a member customer shops in one of its stores

or online. Free shipping is included, of course. Given that membership fees

have historically helped improve business margins, it’s a win-win combination,

especially for those consumers who are already loyal shoppers.

SMART GARMENTS

Wearable technology was a significant trend last year and there have been more

major advancements – fashion designers are working to create gowns that use

technology to glow in the dark and produce other special effects, for example.

With the advent of IBM’s Watson technology, apparel manufacturers are making

garments that think – fabrics that get lighter or heavier as the temperature

changes from day to night; Nike just released self-lacing sneakers.

While this trend is more to do with apparel, it’s possible that jewellery pieces

might start including technology similar to those in smart watches. This is

only the tip of the iceberg where wearables are concerned and the sector will

develop in years to come.

Trends come and go but an overwhelming number of consumers now describe

customer service as “very important” when selecting a business. According

to the 2016 Microsoft State of Global Customer Service report, 55 per cent of

customers have higher expectations for service today than they did a year ago.

With transactions ‘de-humanised’ through innovation, the human element is

even more central. Embrace the noteworthy 2017 trends, run with the changes

and remember that any channel can employ the human connection.

Think human-connect first then work backwards to add the technology features

that customers are most likely to use, love and tell their friends about.

For more 2017 retail trend insights, turn to page 41. i

RICHARD SHAPIRO is founder of The Center For Client Retention,

offering research, training and consulting services, and author of

The Endangered Customer: Eight Steps to Guarantee Repeat Business.

Learn more: tcfcr.com

March 2017 Jeweller 33


An intimate affair

IT MIGHT HAVE BEEN SMALLER

IN SIZE THAN PREVIOUS YEARS

BUT EMILY MOBBS DISCOVERS

THERE WERE STILL RETAILERS

AND SUPPLIERS READY TO DO

BUSINESS AT THE BRISBANE FAIR.

he Australian Jewellery Fair (AJF) drew to a close in Brisbane on

Monday February 27.

The AJF marked the local industry’s first trade show of the year and

although it was a smaller-sized fair, most exhibitors seemed to have

set expectations accordingly and there was a general positive atmosphere

on the floor.

Stones and Silver managing director Cheryle Roberts said she was pleased

with results over the two-day event.

“It’s a small show but we gained new customers on Sunday and the last

few hours of Monday have been good so we’re happy,” Roberts stated,

adding that the supplier’s new uncut diamond range set in black wax

received significant attention.

34 Jeweller March 2017


BRISBANE FAIR REPORT

It seemed Brisbane fair visitors were on the hunt for fresh offerings;

Kagi sales manager Rachael McLeod also noted that the exhibitor’s

latest range gained a favourable response.

“Our Confetti collection, which is set to launch in May, has done

really well,” she said. “We have had lots of really strong feedback.”

Along with the more established suppliers like Timesupply – which

distributes Coeur de Lion – Peter W Beck and World Shiner, there

were a number of first-time exhibitors.

Portobello was one new stand that appeared to be busy throughout

the show. Portobello director Astral Maheshwari explained that

the supplier had introduced its personalised jewellery range

Kameleon at the fair and that they had received lots of enquiries

and positive feedback.

Another first-time exhibitor – and also the only watch supplier

present – was Mulco Watches Australia. CEO Richard Ramos said

most buyers were at the show in search of jewellery; however,

several were open to his range once they saw it.

The diamond and gemstone sectors were represented as well.

DSM (Pacific), which specialises in diamonds, seemed to have

steady traffic at its stand over the two days, as did The Gemstone

Trading Company.

The Gemstone Trading Company’s Jack Sahagian said Sunday trading

was positive, with sapphire, morganite and aquamarine proving to

be ‘hot’ gemstones.

OTHER NOTABLE MENTIONS

Perhaps unlike previous years when there was a rush of visitors as

soon as doors opened, buyers seemed to trickle in across Sunday

and Monday.

One set of visitors that could not go unnoticed on the first day was

a group of almost 30 jewellers that had travelled from Indonesia.

The group were taking part in an Australia Awards program –

organised by Griffith University with support from the Australian

Department of Foreign Affairs and Trade – that aimed to boost trade

between Indonesia and Australia.

Indonesian Ministry of Trade representative Pipit Roesfitawati said

both countries had huge trade potential and that the AJF reflected

a “global market view for [jewellery] product”. While the visit was

primarily used as a networking opportunity, some visitors reportedly

purchased jewellery at the show and others were considering

exhibiting at future Australian fairs.

Several education seminars were also held on the show floor.

A presentation by QLD Police detective senior sergeant Jason

Hindmarsh on Sunday was one notable session.

Organised in light of the spate of jewellery store armed robberies

in Melbourne, Hindmarsh outlined crime trends in Australia and

Queensland as well as target hardening strategies for jewellers.

The 2017 AJF was held at the Brisbane Convention and

Exhibition Centre. i


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GEMS

REVEALING INCLUSIONS: SAPPHIRE

FIGURE 1. NATURAL, BEHT SAPPHIRE

Inclusions are an integral part of

identifying any range of treatments

that can be applied to gemstones to

boost value. JUNE MACKENZIE reports.

If diamonds are a girl’s best friend then

inclusions are surely a gemmologist’s best

friend. Taking sapphires as an example,

inclusions determine whether a gemstone is

natural, natural but heat-treated, natural but

beryllium heat-treated (BeHT) or synthetic.

Although there are synthetic flux sapphires

and synthetic hydrothermal sapphires on

the market, generally the favoured synthetic

used in the trade is flame fusion, also known

as Verneuil and named after the man who

invented it. This is also the cheapest.

While there are gemmological tests to

determine what type of sapphire is being

tested, a 10X loupe or microscope with

higher magnification enhancing the

inclusions usually provides confirmation.

FIGURE 2. SYNTHETIC, FLAME FUSION SAPPHIRE

Sapphires may undergo more than one

treatment. One mine-run (batch) of

gemstones may undergo many different

treatments, making it difficult for anyone who

has not been involved with the processes to

be able to determine the type of treatments

and how many have been undertaken.

A natural sapphire showing liquid films

proves that the gemstone has not been

heated or treated as these films would

disperse or explode upon any type of

treatment. A sapphire containing iridescent

‘silk’ of rutile needles, some with ‘arrow twins’

in a nest, also proves lack of heat-treatment.

A natural sapphire that has been heat-treated

may show various tell-tale signs, such as

long rutile needles that have been damaged

and become lines of tiny particles. Discoid

fractures may also be present. These are

generally roundish and shiny or mirror-like

in appearance with little sign of healing.

A NATURAL

SAPPHIRE

SHOWING

LIQUID FILMS

PROVES THAT THE

GEMSTONE HAS

NOT BEEN HEATED

OR TREATED

Depending on the heat, crystals within the

sapphire may be damaged to varying degrees

as different crystals have different melting

points. For example, rutile has a melting

point of 1,600 degrees Celsius, zircon of 1,855

degrees Celsius and corundum of 2,030

degrees Celsius to 2,050 degrees Celsius.

BeHT sapphires often change colour; they

may have been blue or greenish-blue

and change to orange after treatment as

demonstrated by the Songean sapphire

(Figure 1). Depending on the period of time

that a sapphire is exposed to heat during

the beryllium treatment, the colour may not

completely diffuse into the gemstone but a

different coloured rim from the colour in the

centre of the gemstone may be visible when

immersed in liquid. Blue, circular inclusions

may be present as well as flux droplets.

Synthetic, flame fusion sapphires may contain

bubbles, undissolved nutrient and curved

striae. Some may show streaks of tiny bubbles

known as brush strokes, which also confirm

their identity (Figure 2).

These examples indicate the importance of

inspection of a gemstone to indicate its status

as natural, treated or synthetic – invaluable

information for gemmologists and jewellers.

Retailers need to be aware that some

treatments greatly affect the price of a

gemstone. In addition, the Australian

Competition and Consumer Commission

(ACCC) states that businesses in Australia

must be able to guarantee what they sell.

If gemstones are treated, then this must

be disclosed to the customer and written

on their receipt. To finish, never forget that

inclusions can also tell a wonderful story

about gemstones. i

June Mackenzie FGAA Dip DT, is a qualified

gemmologist and gemmology teacher in NSW.

She is the developer and presenter of the GAA

Advanced Gemstone Inclusions course.

For more information, visit: gem.org.au

March 2017 Jeweller 37


JAA REPORT

STRENGTH IN NUMBERS

Entering my fifth term as the president of the

JAA, I look upon the opportunities of the year

ahead and imagine what the industry can

achieve when we work together. With many

exciting developments coming to fruition in

2017, it is imperative that we look towards

the potential of the Australian jewellery

industry and forge head-first into the future.

The new year brings forth exciting

developments for our association. The JAA

board of directors appointed at the annual

general meeting held in October 2016 see

myself and Brett Bolton nominated by the

general membership. Directors nominated

and elected through the National Industry

Advisory Council (NIAC) include Karen Lindley

– supplier representative; Frank Salera – retailer

representative; and George Proszkowiec –

buying group representative. Proszkowiec

also remains the vice president of the board.

The movement of NIAC representations has

allowed the co-opted director’s position on

the board to become vacant, and will allow

the board to bring in fresh approaches and

special skills as required. An announcement

will be made in due course regarding the

appointment of the co-opted position.

In addition to these appointments, a special

resolution was passed at the JAA annual

general meeting in 2016, implementing

changes to the constitution. This resolution

enables the staggering of terms for directors

appointed via general members and the NIAC.

I foresee that once elections for NIAC directors

and elected directors are held in alternate

years, we will see greater consistency within

the board as projects and events may run

across consecutive years.

THIS YEAR, IT

IS IMPORTANT

TO REMEMBER

THAT THERE

IS STRENGTH

IN NUMBERS

AND TOGETHER

WE CAN MAKE

MEANINGFUL

CONTRIBUTIONS

TO THE

AUSTRALIAN

JEWELLERY

INDUSTRY

I would also like to extend a warm welcome to

the new faces joining the NIAC in 2017: John

Rose from West End Collection – watch sector

councillor; Jane Williams from JW Jewellery

– SA/NT state councillor; Peter Keep from

Jewellery Creations by Peter Keep – WA state

councillor; Tony Smallwood from Advanced

Gemmological Services – opal sector

councillor and JAA CIBJO representative; and

Lucas Blacker from Gold and Silversmiths

Guild of Australia (GSGA) – GSGA councillor.

I am also pleased to welcome the GSGA,

who will be providing a representative to be

involved in NIAC strategic planning in 2017.

Additionally, Josh Zarb, Leading Edge Group

councillor, will continue as NIAC chair for 2017.

Lastly, I would like to acknowledge the great

effort of our outgoing councillors, Ken Anania,

Tony Nash, Phil Edwards and Carson Webb.

In conclusion, I ask that you keep an eye

out for the co-opted director’s position

appointment when it is announced. We now

have a chance to welcome a new director

who will bring new ideas and added input

to the board and bring us forward into 2017.

This year, it is important to remember that

there is strength in numbers and together we

can make meaningful contributions to the

Australian jewellery industry.

Finally, I welcome members to have their

say and contact us with anything regarding

the industry or the association by visiting

jaa.com.au. Remember this is your association

and your involvement and participation

ensures not only our future but prosperity

for the whole industry.

Selwyn Brandt

President

Jewellers Association

of Australia

Suite 33, Level 8,

99 York Street,

Sydney NSW, 2000

Telephone: 02 9262 2862

Freecall: 1800 657 762

Email: info@jaa.com.au

Website: www.jaa.com.au

JAA BOARD

Selwyn Brandt

President

George Proszkowiec

Vice President

Brett Bolton

Director

Frank Salera

Director

Karen Lindley

Director

STAFF

Amanda Hunter

Executive Director

Emma Ward

Membership and

Marketing Manager

Roberta Mesturini

Member and Consumer

Relations Coordinator

Jeweller is the official

magazine of the Jewellers

Association of Australia

(JAA) but is published

independently by

Gunnamatta Media Pty

Ltd. The views expressed in

Jeweller do not necessarily

reflect those of the JAA

and comments should be

addressed to the Editor.

38 Jeweller March 2017


JAA MEMBER

CONTINUOUS IMPROVEMENT

Sarah Rothe has shaped herself into a fine

craftsman with a strong and vibrant jewellery

practice by studying jewellery design,

undertaking excellent training opportunities

and applying herself through hard work.

Based in Adelaide, where she runs Sarah

Rothe Jewellery and Design, Rothe graduated

in 2006 from the Adelaide Centre for the

Arts – now known as the Adelaide College

of the Arts – with a Bachelor of Visual Arts

and Applied Design specialising in Jewellery

Design. She then joined the Jam Factory’s

associate training program in the metal

studio under creative director Sue Lorraine.

The Jam Factory is a hub for learning and

creativity with purpose-built studios that

provides skills and business training for

artists and designers across a two-year

program. This was a good opportunity

for Rothe as the Jam Factory is supported

by the South Australian Government and

recognised globally as a centre for excellence

that supports and promotes outstanding

design and craftsmanship.

During this period, Rothe also completed

a residency at the Pottery Workshop in

Jingdezhen, China. Again, this offered a great

opportunity for learning as the academy is

set up to assist emerging artists to realise

their visions and build sustainable practices.

By 2010, Rothe was at the Gray Street

Workshop in Adelaide, which is a collectivelyrun

studio and access facility for artists

working in the field of contemporary

jewellery. The philosophy of the workshop

is to encourage a rich exchange of ideas

and knowledge between established and

experienced jewellers and those who are

emerging in their careers.

Throughout her studies and commercial

life, Rothe has developed her own business

philosophy: “I aim to create and promote

unique and contemporary jewellery that

inspires.” She applies this philosophy in her

business, Sarah Rothe Jewellery and Design,

which is based in the Regent Arcade in

Adelaide’s CBD, and says the arts-based and

conceptual training she has garnered in

contemporary jewellery has helped her find

a point of difference.

“There are certainly many other retail spaces

similar to mine but I predominantly support

other South Australian makers and designers,

as well as stocking and making my own work,”

Rothe explains, adding, “In my own practice, I

primarily specialise in contemporary titanium

as well as making custom pieces in more

traditional precious metals and gemstones.”

Rothe also regularly exhibits and sells her

work at design markets and fairs across

Australia. The jeweller says she was initially

interested in joining the JAA because she

wanted to become more involved and

support the wider jewellery industry.

“For many years the contemporary/art

jewellery makers and the trade jewellery

industry have been quite separated. I would

like to see more interaction and support for

each other,” she states.

From this year, Rothe is a committee member

of the JAA South Australian branch and says

she will “look forward to contributing my

experience and perspective as well as gaining

wider knowledge in other areas that are not

my specialisation”.

She also sees opportunity in being a JAA

member: “It really is a wonderful chance

”LIKE MANY

OTHERS I

SUSPECT,

JEWELLERY IS

ALL CONSUMING

AND I DO NOT

PURSUE TOO

MANY OTHER

ACTIVITIES

OUTSIDE OF

JEWELLERY AND

MY BUSINESS.”

SARAH ROTHE

to showcase your work with the potential

for receiving a great deal of promotion and

exposure across relevant platforms.”

When asked about her hobbies, Rothe

comments, “I must admit, like many others

I suspect, that jewellery is all consuming and

I do not pursue too many other activities

outside of jewellery and my business.”

Roche takes satisfaction in her hard work to

date, which has resulted in unique exposure

for many of her designs.

She lists some highlights as creating a brooch

for the US 2016 presidential candidate, Hillary

Clinton, and contributing a neck-piece from

the same collection to the Powerhouse

Museum in Sydney.

Rothe has this advice for emerging designers:

“Stay true to your passion and work hard for

what you want. It may take longer than you

envisage to establish the practice you want,

stay determined.” i

March 2017 Jeweller 39


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BUSINESS

MAJOR TRENDS EXPECTED TO IMPACT RETAIL

The future is bright for service-oriented

traditional retailers as new technologies

and platforms emerge to help them

ensnare customers away from online

outlets. DAVID BROWN reports.

There is no doubt the retail game has

undergone some massive changes in the

past few years and the pace of change will

only continue to increase as technology

develops and customers demand more.

Recently, I did a little research online in this

area and discovered a few different opinions

on future trends of retail. I have summarised

those with which I agree, adding my own

beliefs on what retailers can expect to see

over the next couple of years.

RISING DEMAND FOR EXPERIENCES

Customers are increasingly expecting more

than just products from retailers. Already,

much of what consumers buy can be sourced

online for at least the same price, if not less.

Where bricks-and-mortar retailers still offer

a significant advantage over online retailers

is in the physical experience – the ability to

tap into all five senses of touch, smell, sight,

hearing and taste. Of these five, only sight

and sound can be offered online and, even

then, in a relatively-limited regard.

The future success of traditional retail

depends upon the sector’s ability to harness

the advantages that a real world environment

can provide. This trend is evident in several

shopping centres where concierge services,

unique food concepts and even mini theme

parks are being used to drive foot traffic;

however, independent retailers including

jewellers need to adopt more of this

experience approach into stores.

PENCHANT FOR EDUCATION

Hand-in-hand with the user experience is

education. The introduction of in-store yoga

classes by retailers of high-profile fitness

apparel is an example of this. Apple has also

offered classes in using its computers and

software for some time.

The higher the quality and perceived luxury

of a product, the greater a consumer’s

expectations are of retailers to provide valueadded

information and experiences –

I recently purchased some Miele kitchen

THE FUTURE

SUCCESS OF

TRADITIONAL

RETAIL DEPENDS

UPON THE

SECTOR’S ABILITY

TO HARNESS THE

ADVANTAGES THAT

A REAL WORLD

ENVIRONMENT

CAN PROVIDE

appliances and was not only offered advice

on how to clean and care for our appliances

but also given cooking lessons. Nowadays,

even shoppers buying dress jeans will often

receive cleaning and care instructions.

Jewellery stores have been providing basic

cleaning and care instructions for decades

and it’s no secret to them that this is an

important part of the jewellery experience

that needs to be celebrated and delivered

with enthusiasm in order to meet consumer

expectations. Today, more jewellery retailers

are also offering comprehensive service plans

that not only generate significant cash-flow

but encourage frequent repeat store visits,

and thus sale opportunities, as well.

Looking for more inspiration? Hats off should

go to Sydney-based Gregory Jewellers, which

recently held a watchmaking class allowing

customers to disassemble and reassemble an

IWC Schaffhausen watch movement.

RENT DON’T BUY

The shared economy has been one of the

biggest driving changers in recent years.

Businesses like Uber and Airbnb have

March 2017 Jeweller 41


BUSINESS

harnessed people’s desire to borrow not buy

and this will present opportunities for savvy

retailers to tap into this trend. It will require

a little thinking outside the square but it’s

an area worth watching.

One way this could be adapted for the

jewellery industry is a finance and credit

model. This system has become an

increasingly important selling tool for the

chain stores, with some boasting about

having a good percentage of customers on

finance permanently – once a customer has

completed payment for one item of jewellery,

they roll the monthly payment into the next

item. Even a small amount like $20 per week

adds up to more than $5,000 across five years

without the customer really noticing.

This is also a good way to capture the lifetime

value of customers. Why would they go to

another jewellery store or any other retail

outlet for that next special birthday gift when

they already have a standing relationship?

In addition, discounting tends to be far less

of an issue when finance terms are offered.

VISION AND PASSION

Customers are increasingly searching for

retailers who have a vision and a passion

for what they do and what they represent.

Consumers no longer want just a product;

they want to believe in the businesses from

which they purchase.

It’s no longer enough for retailers to be in it

for the money alone. Successful stores evolve

and adjust based on the rapidly changing

retail jewellery scene. Others resort to

discounting or run never-ending sales as a

way to combat more sophisticated operators

who are stealing market share away from

them; however, this does neither them nor

the industry any favours.

Those businesses that seek to create and

refine their unique points of difference

create an environment that sets them apart.

Rather than trying to compete with the

chain stores, they seek to establish their own

markets, which is the right approach because

discerning customers are increasingly

looking for specialisation, customisation and

personalisation. In other words, consumers

want to deal with experts who can customise

jewellery for them instead of selling them

the same mass-produced products found in

every shopping centre across the country.

ADAPTING FOR BABY BOOMERS

The Baby Boomer generation is ageing but

they still represent a significant amount of the

retail spend and will continue to do so for the

foreseeable future.

This means adapting to their needs with

more legible displays, clearer instructions

for use of technologies and an adjustment

in the store’s physical layout to allow for a

greater number of less mobile customers.

SHOPPING ON SOCIAL MEDIA

Social media is moving beyond the social

zone to offer online shopping experiences.

Businesses that don’t take advantage of the

tools available to turn ‘scrollers’ into shoppers

will lose out to those that do.

Bricks-and-mortar is rapidly becoming bricksand-clicks

and it is imperative for retailers to

at least stay abreast of developments in this

area, which typically requires making sure

there is a social-media-savvy staff member

or a third-party expert who can help manage

this department.

DATA WILL BECOME MORE POWERFUL

The ability to segment customers, know their

spending history and use that to predict

trends will be crucial in the future. Retailers

are now capable of knowing when customers

need to buy and the ability to harness it on an

individual basis will expand.

Access to this data is largely via POS software;

however, there are other elements to

consider. Storeowners and managers need

to create a customer-centric culture, which

means there is a genuine commitment

to collect, maintain and utilise customer

information in a meaningful and professional

manner. Unless salespeople buy into ‘why’

this information is important, they will be

casual and inconsistent in the way they

gather and use it.

It is crucial that stores maintain accurate

contact and personal information for

customers entering the store each day.

Email, mobiles and social media preferences

are all important as is the increasing trend

of ‘wish lists’ whereby customers choose the

items they would like to receive and the store,

or the customer, shares that information with

the purchaser. How much easier and more

rewarding is it to buy something for that

LED BY

BUSINESSES

SUCH AS

AMAZON,

SPEEDIER

SERVICE IS

BECOMING THE

CATCH CRY OF

THE ONLINE

WORLD AND

TRADITIONAL

RETAILERS NEED

TO KEEP UP WITH

THIS TREND TOO

special someone from a list of their own

hand-picked items rather than trying to

guess what they may like?

TECHNOLOGY WILL EXPAND

The amount of technology available to boost

shopping experiences will soar in the near

future but not all of it will be relevant.

Jewellers will need to develop an ability to

identify and harness those new technologies

that will provide a competitive advantage.

For example, bricks-and-mortar and online

jewellers alike are beginning to use 3D

technology, CAD design and prototype

ranges to provide customers with the ability

to try on their rings in advance.

These strategies are helping customers

experience the product before buying;

however, it doesn’t stop there. Having made

their selections, customers want the items

quickly and so turnaround time becomes

an increasingly important consideration.

Remember, these are the same customers

who want ‘instant gratification’ and waiting

more than a few days can be enough to put

them off a purchase.

FASTER SERVICE

Led by businesses such as Amazon, speedier

service is becoming the catch cry of the

online world and traditional retailers need to

keep up with this trend too.

Millennials are now expecting instant

responses and faster delivery times and

receiving it because they represent the future

of the customer landscape.

The rate of change can be daunting and

intimidating but change also has the ability

to present opportunity and the chance to

truly differentiate one store from another.

It’s critical that jewellery retailers keep

themselves in the know with the developing

trends in all aspects of retail and be willing to

adopt those that can give their business an

advantage over competitors. i

DAVID BROWN is

co-founder and business

mentor of Retail Edge

Consultants. Learn more:

retailedgeconsultants.com

42 Jeweller March 2017


SELLING

SPARK RESULTS WITH REFERRAL TEAMS

RETAILERS WHO BELIEVE THAT GENERATING REFERRALS IS AS EASY AS TURNING UP TO NETWORKING EVENTS, DOING A GOOD

JOB WITH CUSTOMERS OR JOINING REFERRAL GROUPS ARE LEAVING MONEY ON THE TABLE. MICHAEL GRIFFITHS REPORTS.

There are many things that need to be done

to generate referrals but the biggest impact

and best results come when businesses

create their own referral teams.

it into new networks. Most people just hope

someone will see and share their content.

Instead, ensure that people do this by

making them content distributors.

A referral team is a group of people that

help to generate new business. They should

be seen as part of the sales team but they

are not paid as salespeople.

Referral teams might be a whole new

concept for small businesses; however,

in some ways, many owners are already

generating their own just without the

structure or process that this article is

about to outline.

A referral team can just be a group of people

who help create new opportunities for a

business – they are opening new doors,

giving businesses new exposure, filling the

sales funnels and promoting products and

services whenever they can.

Just imagine what having 66 people

promoting a business every day would do

for the bottom line? There are five different

groups of people within my organisation’s

referral team and they all play a role in

generating new business.

PROFITABILITY PARTNERS

This is the A team, the people who have

similar networks to yourself and people you

really like and trust.

You can have up to six profitability partners –

any more and you will not have the time

to help them.

This is a one-on-one conversation between

you and your partner every week. The phone

call should not last more than 10 minutes

and you go through and strategise how you

can help one another.

Most people are lucky if they talk to their

referral partners every month, let alone

every week. With constant communication,

constant strategising and constantly being

front of mind, you will be amazed how much

business you can pass each other.

A REFERRAL

TEAM IS A

GROUP OF

PEOPLE THAT

HELP TO

GENERATE NEW

BUSINESS. THEY

SHOULD BE

SEEN AS PART OF

THE SALES TEAM

BUT THEY

ARE NOT PAID AS

SALESPEOPLE

BE PROACTIVE AND BUILD A REFERRAL TEAM

SUPER GROUP

The super group is up to eight people

that come together once a month. With

technologies these days, you can do this

face-to-face or via webinar or some other

conferencing platform.

Your super group is about all eight people

sharing their networks, sharing their

customers and creating new opportunities

for one another. The super group needs to

include people that all sell to the same type

of person but sell something different.

CROSS PROMOTION

Cross promotion is the quickest and simplest

way to expand a business. A cross promotion

is when you promote someone to your

network and they promote you to their

network. Cross promotions could be sharing

content, videos, webinars, live presentations,

PDFs and more.

To set up a cross promotion all you need to

do is ask someone that has a similar network

to you if they would like to cross-promote.

I believe if you have 12 cross-promotion

partners then you can do two per month

and that is a business changer.

CONTENT DISTRIBUTORS

There is no point putting up content on

social media unless other people are sharing

Every month, ask people if they would be

happy to share your content if you share

their content. Every month we have more

than 20 people sharing our podcasts,

webinars, articles, videos and that allows us

to build a following and reach thousands of

new people every month.

AFFILIATE PARTNERS

This is the only group of people that get

paid for creating a sale – every other type

of partner is helping me because I’m

committed to helping them but affiliates

are happy to sell a product or service for a

commission. Many people don’t use this type

of partnership correctly and they often fail.

The key is great communication and building

the relationship.

FINAL WORD

Referral teams don’t get built overnight; they

need the right sorts of people. You might

have to talk to several businesses before

getting the right team in place.

While I have a 66-person referral team, it

should be noted that this number could

vary depending on the size and nature of

the business in question.

The important point to remember is that

the team members need to have the same

mindset and values as well as the desire to

help one another.

Without these, the referral relationship is

going to fail before it has even started. i

MICHAEL GRIFFITHS

is described as the #1

authority on referral

marketing training. Learn more:

referralmarketingguru.com.au

March 2017 Jeweller 43


Australia's longest running

jewellery awards program,

with an emphasis on

handmade jewellery that

expresses one's individuality

jaa.com.au/awards


MANAGEMENT

SEVEN DAILY HABITS OF SUCCESSFUL LEADERS

THERE IS SUCH A THING AS A FORMULA FOR SUCCESS AND CHRIS HALLBERG SAYS IT BEGINS BY INCORPORATING CERTAIN

ACTIONS INTO ONE’S DAILY SCHEDULE THAT PROMOTE PROPER ROUTINES, STRONG NETWORKS AND GOOD HEALTH.

Success is not a matter of luck or a happy

accident that happens to some people but

not others. Those who study the daily habits

of successful business leaders will find that

this group has many qualities in common.

To cultivate success, consider incorporating

these habits of effective leaders.

START EVERY DAY WITH REFLECTION

There’s an old Buddhist saying: you should

meditate for one hour every day unless you

are too busy. If you are too busy, you should

meditate for two hours.

Successful people carve out the time to

reflect because they recognise the value

of slowing down. Contemplation and

reflection allows them to make strategies

instead of always reacting. It makes them

more clearheaded so that they can be more

effective throughout the day.

Retailers who make time for reflection every

day will find they are more centred and

able to determine what actions to take to

improve their businesses.

ALWAYS STRATEGISING

Successful leaders are always thinking

several moves ahead; they develop shortterm

and long-term strategies. Constantly

reacting to issues only as they come up will

lead to poor decision making.

Developing detailed strategies assists

retailers to predict potential hurdles and

craft multi-facet plans that will help reach

business goals. Business strategies that are

well considered, detailed and flexible have a

greater chance of success. Strategy requires

studying the industry and everything that

is related to business success. By learning as

much as possible and incorporating this into

plans, retailers can move deliberately in the

direction that will build continued success.

CONTINUOUS LEARNING

Learning isn’t something that ends once

school finishes. Successful business owners

are learning all the time. Technologies

RETAILERS WHO

MAKE TIME FOR

REFLECTION

EVERY DAY WILL

FIND THEY ARE

MORE CENTRED

AND ABLE TO

DETERMINE WHAT

ACTIONS TO TAKE

TO IMPROVE THEIR

BUSINESSES

INCORPORATE HABITS OF EFFECTIVE LEADERS

change rapidly and an owner who stays

up-to-date on the latest information in their

niche and is always bettering themselves

and honing their skills can succeed. Seek

out mentors. Read industry resources. Take

a class if one is appropriate. By remaining

open to learning new things, retailers can

increase the size of their toolkits for success.

SAY THANK YOU

One of the things that employees say that

they want most in a workplace is to be

appreciated. Successful business leaders

know this and show gratitude accordingly.

This attitude sets the foundation for better

relationships and keeps employees in the

business. Gratitude leads to better managers

and employees who all want to contribute

to the success of the business.

EMBRACE INNOVATION

People who are resistant to change and

innovation will be left behind. Those who

understand that progress is inevitable

and healthy will catch the tide and ride it

toward success. Be on the lookout for new

developments. Look for areas where new

technology and ideas are needed. By being

able to see where progress should go,

business owners can put their organisations

at the forefront of the next trend.

PERFORM REGULAR EXERCISE

Studies show that exercise improves

cognition; brings emotional stability and

makes it easier to deal with the hurdles

that life puts in the way. It also facilitates

focus and productivity and makes people

more energetic. Health experts recommend

a minimum of 30 minutes of exercise a

day, five days a week. Choose an activity

according to the benefits it provides – a

solitary activity, for instance, can be a

good time for reflection and regrouping;

group activities, such as tennis, can provide

networking opportunities.

Regular exercise helps build confidence

and someone who is physically fit projects

a level of confidence that others can see.

MAKE TIME FOR FAMILY

No matter how successful one becomes

or how time-intensive their work, family

needs to remain a priority. By taking the

time to keep strong connections with

family, business owners will ensure they

have relationships in place when they need

support. Those who aren’t working for the

good of a family might find success hollow

so it’s important to include people who

mean something into business successes.

Family connections can also help with

emotional stability in hard periods. Family

can provide encouragement during times

of challenge. Strong connections at home

can also help alleviate burnout.

There is no magic bullet that makes

someone a successful business leader.

Success is built by incorporating successful

actions and attitudes every day. By including

these habits, business owners can change

their outlook and improve their odds of

becoming a successful business leader. i

CHRIS HALLBERG is

president of TractionInc. His

aim is to help entrepreneurs

achieve their vision. Learn more:

tractioninc.com

March 2017 Jeweller 45


MARKETING & PR

NAVIGATING THE UNHAPPY CUSTOMER TERRAIN

A BAD REVIEW CAN HARM A BUSINESS’ REPUTATION AND DRIVE AWAY CUSTOMERS. STEPHANIE O’BRIEN OUTLINES

WAYS THAT BUSINESSES CAN MANAGE STRESSFUL SITUATIONS AND HELP AVOID DAMAGING FEEDBACK.

Few things are as stressful for a business owner or salesperson as

an angry customer and irate exchanges can make it challenging

to keep emotions calm and conversations constructive.

The ways in which these moments are handled are critical to a

business’ reputation, to the satisfaction of customers and to the

integrity of a business owner. Here are five strategies to help

salespeople navigate this challenging terrain.

DON’T GET ANGRY AND DEFENSIVE

When being accused of something and feeling like you’re under

attack, it’s natural to want to protect yourself and prove the accuser

wrong; however, if you want to reconcile with your displeased

customer and protect your business’ reputation then it’s important

not to treat your customer as the enemy or to prioritise your pride

over their needs. Stay calm and polite and remember that the goal

is to satisfy the customer, not to silence them.

TAKE RESPONSIBILITY FOR INVOLVEMENT

If there was a misunderstanding, tell them, “I can see how what I

said could have come across that way. That wasn’t what I meant

and I’m sorry for the mix-up.” Then explain your point of view.

This allows you to explain yourself without starting an argument over

what you did or did not say. If there was a mistake made regarding

product, service or scheduling information, tell them, “I’m sorry for

the mistake we made. It’s very important to me that you get what

you need from my business and I want to make it up to you.”

ASK QUESTIONS AND SEEK UNDERSTANDING

This may seem counterintuitive because when someone is saying

bad things about you, it’s natural not to want to hear more; however,

the first step toward reconciling with another person is to understand

the source of their upset and to demonstrate that their problem

matters. With this in mind, instead of trying to silence an angry

customer, ask them questions and do your best to get a complete

understanding of the problem. Also, ask if there are any other

problems they’ve been having with you or your product.

This shows that you’re truly committed to making sure they have a

good experience, and gives you a chance to expose and deal with

any hidden sources of resentment that might otherwise poison your

relationship and their opinion of your business. It also gives you the

chance to learn from your mistakes and fine-tune practices.

PAY ATTENTION TO WHAT CUSTOMERS SAY

One mistake that I’ve seen even large companies make repeatedly

is to show that they didn’t truly listen to customer questions and

concerns. Sending identical information repeatedly, giving customers

a link to the exact same help page on which they were requesting

ONE MISTAKE

THAT I’VE SEEN

EVEN LARGE

COMPANIES

MAKE

REPEATEDLY IS

TO SHOW THAT

THEY DIDN’T

TRULY LISTEN

TO CUSTOMER

QUESTIONS

AND CONCERNS

EMBRACE THE FIVE STRATEGIES OF ACHIEVING HAPPY CUSTOMERS

clarification and sending links to forums that address the general

topic of their problem but don’t actually offer a workable solution

are examples of these mistakes.

When staff have a store filled with customers plus incoming phone

calls and emails that need attention, it can be tempting to cut corners

and skim over messages instead of paying careful attention to each

one. This approach creates the risk of telling customers the business

doesn’t care about them.

Failing to address concerns correctly can also increase the time a

business must spend on each customer well beyond what would’ve

been spent had the business taken the time to find the right solution

from the outset. In the wise words of US basketball player and coach

John Wooden, “If you don’t have time to do it right, when will you

have time to do it over?”

OFFER A CONCRETE SOLUTION

This might seem obvious but if there is a product defect, either fix

it or organise a replacement. If the customer wasn’t happy with the

service offered, discuss with them how the problem can be rectified.

Whatever the nature of the mistake or misunderstanding, businesses

should show they take problems seriously and are committed to

giving customers the best experiences and services possible by

proposing specific solutions.

As sure as the sun rises, there will be unhappy customers in retail.

How business owners and staff handle these customers will inevitably

decide whether businesses can turn pain into profit. i

STEPHANIE O’BRIEN is founder of Coach Client

Connection. She specialises in marketing and

copywriting. Learn more: coachclientconnection.com

46 Jeweller March 2017


LOGGED ON

KEEPING UP BUSINESS DEMAND WITH LIVE VIDEO

FACEBOOK LIVE IS ONE OF THE REMARKABLE, RECENT DEVELOPMENTS IN THE SOCIAL MEDIA-MARKETING WORLD.

LUX NARAYAN REPORTS ON HOW SMALL BUSINESSES CAN USE THE FEATURE TO INCREASE CUSTOMER ENGAGEMENT.

Released in 2016, Facebook Live allows

Facebook users to share live video with

their followers. One of the key benefits of

Facebook Live is its flexibility; it can be used

for a wide range of purposes, depending

on the business’ social media objective.

Here, we take a look at what businesses

have achieved using live videos and the

takeaways this exercise offers.

WHY GO LIVE?

Live videos are an excellent way to grab an

audience’s attention in real-time. They can

be particularly useful to highlight a major

event such as product launches, contests,

buying trips and in-store events.

While a sizeable chunk of live videos

are put out by industries that have prior

experience with the live format – think

media, entertainment and sports sectors

– this is not to say that small businesses

should not try their hand at it.

Here are a few reasons to go live.

INTRODUCE A PRODUCT OR SERVICE

Airtime can be quite expensive for a small

enterprise to acquire and an advertisement

might not provide the opportunity to

showcase the unique features of a product.

Live videos enable businesses to show

products in use and in real-time – a valuable

asset when promoting the intricate details

of an item like jewellery. Videos also remove

any doubts customers may have about

the truth-value of what is shown in an

advertisement. Demonstrations of a jeweller

on the bench and tutorials on pearl care are

excellent ways to exhibit expertise.

E-commerce brand Zulily is an example of

how to make great use of the live video

format. Targeting the ‘back to school’ period,

Zulily conducted tutorials and demos on

how its hair products could be essential for

school-going children. Viewers were also

given a gentle push to shop the product

with a special offer and the social media

manager painstakingly replied to every

comment, which conveys that the business

cares about its audience and their feedback.

PROJECT THE BRAND PERSONALITY

Large brands often use live videos to

highlight the brand’s human side, granting

audiences a peek at the people responsible

for making the brand what it is. A fun

way to do this can be to tap into current

internet sensations. Dairy Queen Mexico,

for example, capitalised on the Mannequin

Challenge with a video that showed

customers ordering and eating ice cream in

freeze-frame, mannequin mode. Jewellers

can also use video to show audiences that

they participate in sector-relevant, highprofile

events such as trade fairs.

MOTIVATE AUDIENCE INTERACTION

Listening tools and market research are

essential to finding out what potential

customers like and dislike. For small

businesses, live video can be an effective

way to understand what people would like

in their products or services.

For instance, conducting a live video

demo of a product gives the audience the

opportunity to ask questions regarding

the features of the product. Encouraging

audiences to like, comment and share are

also beneficial as this interaction not only

helps live videos gain a better reach but

to fuel further interaction on other posts.

BUILD EXCITEMENT AROUND AN EVENT

Product launches, sales, contests and

giveaways are all super exciting but if

no one gets to know about the events,

all those fabulous plans will fall through.

Facebook Live is an easy and effective way

to get audiences interested in an in-store

event. Videos that show retailers preparing

for an event or providing exclusive

backstage coverage to customers will boost

enthusiasm. Mercedes-Benz did a great job

of this: tinyurl.com/mercvideo

LIVE VIDEOS OFFER SMALL BUSINESSES AN EFFECTIVE WAY TO ENGAGE

LIVE VIDEOS

ENABLE

BUSINESSES TO

SHOW PRODUCTS

IN USE AND

IN REAL-TIME

– A VALUABLE

ASSET WHEN

PROMOTING

THE INTRICATE

DETAILS OF

JEWELLERY

Don’t forget that events can take place

exclusively within a live video too. As

discussed earlier, offering a few freebies

via a contest can encourage social media

audiences to take part in the event.

Something else to consider is Instagram

Live Stories, which was launched in

December 2016 in the US and recently

became available globally.

In summary, here are some tips for ensuring

businesses get the most out of live videos:

• Use Facebook Analytics to see peak views

and other metrics – what time of day are

customers most active on the page?

• With this data, decide on the optimum

duration and approach

• Rope in ‘influencers’ – examples include

local celebrities and brand ambassadors

• Announce the live video in advance with

some sneak-peek posts

• Promote the live video post-streaming to

extend the reach and viewership

• Encourage audiences to comment –

audience interaction and feedback are

worth well over a few freebies. i

LUX NARAYAN is the CEO

and co-founder of Unmetric,

a social media intelligence

and analytics company.

Learn more: unmetric.com

March 2017 Jeweller 47


MY BENCH

Hampar

Arzuman

WORKS AT:

Baguette Diamond Setting

AGE: 47

YEARS IN TRADE: A long

time! More than 30 years

TRAINING: Apprenticeship

FIRST JOB: The Grand

Bazaar in Istanbul

Favourite gemstone:

Old-cut diamond because

I like its unevenness and

more natural appearance.

Favourite metal:

18-carat gold because it

is simple to work with and

it has a very nice finish.

Favourite tool:

That’s easy. My bench is

my favourite tool!

Love jewellery because:

It’s my family’s profession –

my brothers, cousins are all

jewellers. It’s important for

me to continue that legacy.

Worst part of job:

Always having to look for

new systems and tools and

learning how to use them.

Best tip to a jeweller:

I know I said this is the

worst part of the job but

in the same breath, it really

is important to always be

searching for new systems

and tools. You don’t want

to be left behind.

Is your work primarily

custom-makes or repairs?

I do both custom-make and

repair work.

Do you buy tooling locally,

overseas or a mix of both?

Usually local but of course

sometimes overseas as well.

My bench is always:

A bit messy because I have

so many jobs going.

Favourite sport/team:

I love AFL and follow

Hawthorn Football Club.

Fingers crossed they will

win this year.


SOAPBOX

IT’S A WORLD OF METAL MADNESS

At 47, I don’t class myself as old. Certainly

I’m old to my 12 and 13-year old boys

because I’m not up-to-date with current

YouTube celebrity videos or memes.

Theirs is a different world but I am happy

in the world of jewellery manufacture

and still feeling pretty current.

What does make me question my age is my

jewellery language. In the old days I could

order “18-carat stock gauge and it wouldn’t

crack and split upon the first roll”.

Once upon a time, I wouldn’t find “gas

bubbles in a new 18-carat white gold bar”

and when I was a younger jeweller, I never

saw “new platinum come with massive

folds that needed peeling apart before

I could start”.

Today I struggle to find consistency in

materials that were predictable up until

15 years ago. Am I simply too fussy for my

own good or is there something wrong

with the materials we are now being

supplied? My guess is the latter.

A good job needs good materials;

foundations of anything are important.

I have watched the CAD world take off in a

big way but will shout for a few years longer

that current-blended cast material is too

brittle for lasting quality.

I choose to proceed in a classical way and

work with stock gauge so I can guarantee

the durability and quality of my work.

When calculations are done to quote a job,

it is with very fine tolerances of waste. Let’s

be realistic – precious metals are expensive,

right?! My experience has taught me that

I do not need 50 grams of stock gauge to

produce a simple four-gram ring and I am

proud of this skill.

Clean, newly-refined material has always

been a joy to work with; it’s contaminated

metals that are a pain. The deal now is that

newly-purchased stock metal does not

react in a joyous predictable way but more

like the contaminated mystery blends that

come from customers presenting old rings

to be melted down. In order to work with

contaminated, rogue-behaving materials,

a greater quantity is needed to allow for

all the inherent cracking and failure.

The second issue with the currently-available

spate of designed metals is that trimmings

and lemel are not capable of taking to

re-melting like a decade ago. The new

generation of gold refiners are kept mighty

busy processing third-rate product that

artificially generates work from products

via inbuilt design failure.

All too often, material that would once

respond to my gentle, skilled caress is now

demanding a warrior to whip the beast into

submission. I have become a proverbial

animal trainer and it’s not good enough to

be told, “Stop complaining. You will get your

money back on the material you have left

over when you refine.”

There are not 100 gold stock suppliers out

there so the industry seems a little sewn up

from my point of view. After the financial

crisis of recent times, strong and sturdy

metal-supply businesses have been forced

into amalgamating, selling up and/or cutting

corners. Suppliers are fast becoming run

THE DEAL NOW

IS THAT STOCK

METAL DOES NOT

REACT IN A JOYOUS

PREDICTABLE WAY

BUT MORE LIKE THE

CONTAMINATED

MYSTERY BLENDS

THAT COME FROM

CUSTOMERS

PRESENTING

OLD RINGS TO BE

MELTED DOWN

by accountants trying to make a dollar on

the stock market, not metallurgical experts

selling a true product for steady income.

My complaints to suppliers seem to fall

on deaf ears – I recently expressed my

grievances to one salesperson and they

replied, “Oh, it has always been that way

and we rarely ever get complaints.”

I was then handed a complaint form

from a nearby drawer piled high with

completed, neatly-aligned complaint forms

that I imagine to be a never-ending line of

jewellers venting dissatisfaction.

What indeed can be done? Well, it would be

magic to again find a sympathetic, respectful,

trade-minded metal refiner with skilled and

detailed product knowledge and a view for

creating lasting relationships. I am ready and

waiting for you, whoever you are.

To the rest of you metal suppliers, you are

not doing yourselves any favours by doing

what you do – it opens up the market to

someone who can fill the space you have

just created.

As I sit here gazing into my beer after a long,

busy day, perhaps that mystery person with

the passion for quality and longevity of their

trade is indeed closer to home than at first

glance. In fact, it might be someone reading

this right now... or it might just be me. i

Name: James Tyler

Business: James Tyler Jewellery

Position: director

Location: Brisbane, QLD

Years in the industry: 30

50 Jeweller March 2017


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