Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />
DECEMBER <strong>2017</strong><br />
Wild ride<br />
RETAIL HAS CHANGED FOREVER,<br />
ADAPT NOW TO SURVIVE<br />
Maverick<br />
+ +<br />
EXCLUSIVE ONE-TO-ONE WITH<br />
DIAMOND ‘REBEL’ MARTIN RAPAPORT<br />
X factor<br />
SCOURING THE GLOBE FOR STORE<br />
DESIGNS WITH X FACTOR
WE’RE IN THE<br />
BUSINESS OF<br />
GROWING YOUR<br />
BUSINESS.<br />
What you receive<br />
• Easily accessed advice and professional services<br />
• World class training systems + free ARA membership<br />
• Marketing and digital resource guidance<br />
• Fully customisable apps, websites, catalogues<br />
• Access to exclusive Showcase brands<br />
• Member owned jewellery focused business<br />
• Maximum supplier discounts to you the retailer<br />
• No ongoing monthly management fees<br />
What it delivers<br />
• Increased productivity<br />
• Exclusive incentives back to members<br />
• The ability to build your brand<br />
• Your identity presented professionally<br />
• Increased margins<br />
• Profits back to members<br />
• Maximised buying power<br />
• Better bottom-line results<br />
What our members have to say<br />
“Head Office provides me with everything from catalogues to marketing, technology<br />
support and so much more. They’re invaluable to my business.”<br />
Rosie Ficarra Kennedy’s Showcase <strong>Jeweller</strong>s, Swan Hill<br />
“I’ve previously been with another buying group, so I appreciate what I now receive as real, tangible<br />
benefits to my business for its future and success.”<br />
Neil Watson Watsons’ <strong>Jeweller</strong>s, Launceston<br />
“The simplicity and professionalism of being able to utilise all of Showcase’s digital and training tools perfectly<br />
suits our business and drives the results we need as a self branded multi-store operation.”<br />
Ben Duff Duffs <strong>Jeweller</strong>s, Geelong<br />
Interested? Contact us today<br />
We’re ready when you are. So if you think it’s time to get serious about where you’re going, email us today.<br />
Our team will be happy to show you how we can grow your business together.<br />
Email: enquiries@showcasejewellers.com.au<br />
www.showcasejewellers.com.au
WORLD SHINER PTY LTD<br />
Inspired Performance. Year After Year...<br />
WORLD SHINER<br />
World Shiner proudly introduces Argyle Pink Diamonds<br />
NEW SOUTH WALES Suite 301, Level 3, 70 Castlereagh Street, Sydney 2000, P: 02 9232 3557, E: sydney@worldshiner.com<br />
VICTORIA Suite 502, Wales Corner, 227 Collins Street, Melbourne 3000, P: 03 9654 6369, E: melbourne@worldshiner.com<br />
QUEENSLAND Unit 17, Level 11, 138 Albert Street, Brisbane 4000, P: 07 3210 1237 E: brisbane@worldshiner.com<br />
NEW ZEALAND Suite 4K, 47 High Street, Auckland P: 09 358 3443 E: nz@worldshiner.com<br />
WWW.WORLDSHINER.COM<br />
• AUSTRALIA • BELGIUM • CANADA • GERMANY • INDIA • JAPAN • SPAIN • TAIWAN • UNITED KINGDOM • USA • NEW ZEALAND
Christmas Gift With Purchase<br />
Stock up on our newest collection and take<br />
advantage of our Christmas gift with<br />
purchase offer!<br />
GWP $139 RRP<br />
02 9415 6663 | info@najo.com.au | najo.com.au | Get Social with us! #najojewellery
RETAIL HAS CHANGED FOREVER,<br />
ADAPT NOW TO SURVIVE<br />
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />
EXCLUSIVE ONE-TO-ONE WITH<br />
DIAMOND ‘REBEL’ MARTIN RAPAPORT<br />
DECEMBER <strong>2017</strong><br />
SCOURING THE GLOBE FOR STORE<br />
DESIGNS WITH X FACTOR<br />
CONTENTS<br />
DECEMBER <strong>2017</strong><br />
13/<br />
21/<br />
26/<br />
FEATURES REGULARS BUSINESS<br />
13/ DIAMOND REBEL<br />
Up close and personal with<br />
nonconformist Martin Rapaport.<br />
17/ FEELING GOOD<br />
Pandora’s David Allen shares insight<br />
on the great customer experience.<br />
7/ Editorial<br />
8/ Upfront<br />
9/ News<br />
10/ Top Products<br />
45/ Gems<br />
Colour investigation: zircon<br />
39/ Business feature<br />
David Brown discusses the merits<br />
of the morning staff meeting.<br />
41/ Selling<br />
Doug Fleener says showing outof-stock<br />
product is good practice<br />
… if done correctly.<br />
21/ NEW NORMAL<br />
In-depth analysis on the changing<br />
retail landscape and ways to adapt.<br />
26/ X FACTOR<br />
Be inspired by international store<br />
designs that ‘wow’.<br />
46/ 10 Years Ago<br />
47/ Calendar<br />
48/ My Bench<br />
50/ Soapbox<br />
Suppliers need to adjust margins,<br />
Hayley Birtles-Eades says.<br />
42/ Management<br />
Generic business advice rarely<br />
works, David Sharpe warns.<br />
43/ Marketing<br />
Dale Furtwengler proposes a peace<br />
treaty for sales and marketing.<br />
44/ Logged On<br />
Embrace staff collaboration tools<br />
this Christmas, Lilian Sue reports.<br />
Wild ride<br />
Maverick<br />
+ +<br />
X factor<br />
Front cover description:<br />
Lesedi La Rona rough diamond.<br />
Image courtesy: Graff Diamonds<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 5
EDITORIAL<br />
UNDERSTANDING THIS ROLLERCOASTER RIDE<br />
As <strong>2017</strong> draws to an end, it’s hard to recall a<br />
more eventful year for the Australian jewellery<br />
industry. It has undergone massive change<br />
and it’s difficult to know in which direction<br />
it’s headed. In fact, many would argue that<br />
the local market has experienced the greatest<br />
change on record.<br />
I am sure most readers are just waiting for this<br />
year to be over and are looking forward to the<br />
New Year period.<br />
The term ‘New Normal’ is increasingly being<br />
used as a way to define the current trading<br />
climate. It became popular following the<br />
2007-2008 global financial crisis and the<br />
aftermath of the 2008–2012 global recession,<br />
which Australia largely avoided.<br />
A huge convergence in retail has been<br />
happening for some time as businesses<br />
shift to test different models in the new<br />
digital world – online retailers are opening<br />
bricks-and-mortar stores; traditional retailers<br />
are attempting to compete with their<br />
own – albeit small – online models; and<br />
large retailers are converting physical store<br />
locations into semi-distribution hubs.<br />
The truth is the retail industry has never<br />
stopped changing; however, it’s just that<br />
right now we are perhaps in the middle of<br />
the greatest change ever experienced, in part<br />
because of the speed at which it’s occurring.<br />
What retailers need to be aware of today is<br />
that the customer ‘journey’ – the manner in<br />
which they decide to buy and then make<br />
a final purchase – has altered given there<br />
are more touch points along the route, with<br />
customers treating different channels as short<br />
stops on their way to making a final purchase.<br />
It’s complex to say the least.<br />
With this in mind, the <strong>Jeweller</strong> team decided<br />
that our <strong>December</strong> issue should take a slightly<br />
different approach by featuring a number of<br />
in-depth articles offering insight on the state<br />
of the market and how retailers can better<br />
understand the changes.<br />
David Allen, the former president of Pandora<br />
Australia and New Zealand who now heads<br />
up Pandora’s Europe, Middle East and Africa<br />
regions, has long been an advocate for<br />
defining what a great customer experience<br />
actually means. He asks, “If being obsessed<br />
with their customers is the key to success, why<br />
aren’t more retailers outrageously successful?”<br />
It’s a good question and surely the answer<br />
is simple, right? Well, no, because customer<br />
obsession is subjective, and worse, part of<br />
the problem for our industry is the average<br />
age of storeowners. Running a business 10<br />
to 20 years ago with the aim of customer<br />
satisfaction (the old term) was relatively easy<br />
because the environment was far simpler;<br />
however, with so many retail choices and<br />
channels now available, understanding<br />
customer satisfaction (experience) is hard<br />
enough – let alone trying to achieve it!<br />
Nationwide <strong>Jeweller</strong>s managing director<br />
Colin Pocklington has been tracking Australian<br />
THE RETAIL<br />
INDUSTRY HAS<br />
NEVER STOPPED<br />
CHANGING;<br />
HOWEVER, IT’S<br />
JUST THAT RIGHT<br />
NOW WE ARE<br />
PERHAPS IN<br />
THE MIDDLE OF<br />
THE GREATEST<br />
CHANGE EVER<br />
EXPERIENCED<br />
jewellery and watch sales since 1982 as a way<br />
to keep his buying group members informed.<br />
He acknowledges the ‘New Normal’ and lists<br />
five megatrends that are driving disruption<br />
not only throughout the jewellery industry<br />
but also the wider community.<br />
Pocklington believes that with less foot<br />
traffic, jewellers have to find a way to increase<br />
their hit rate for the customers that do walk<br />
through the door.<br />
Diamonds have traditionally been a large<br />
driver of jewellery store sales so this month<br />
we offer insight into the current state of<br />
the market, and who better to look inside<br />
the international diamond landscape than<br />
Martin Rapaport?<br />
I caught up with the self-described ‘maverick’<br />
for a one-on-one interview a few months ago,<br />
knowing full well that he is not backwards in<br />
coming forwards with his views, no matter<br />
how controversial they may be!<br />
For example, when discussing the topic of<br />
synthetic diamonds, Rapaport says despite<br />
their powerful marketing campaigns,<br />
synthetics are not identical to natural<br />
diamonds and consumers are being misled<br />
because there is no natural scarcity.<br />
He has a lot more to say, as you will discover,<br />
so sit back, strap yourself in and hold on tight.<br />
The rollercoaster ride has begun.<br />
Coleby Nicholson<br />
Managing Editor<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 7
UPFRONT<br />
“I first worked<br />
in my family’s<br />
jewellery business<br />
as a ‘glassy/waiter’<br />
at Christmas<br />
functions and<br />
later in the school<br />
holidays running<br />
errands and<br />
polishing.”<br />
How were you introduced to the industry?<br />
JUSTIN MCCABE,<br />
GERARD MCCABE<br />
JEWELLERS<br />
“I started my<br />
diamond business<br />
20 years ago. I<br />
was supposed to<br />
be an accountant<br />
but couldn’t turn<br />
my back on this<br />
opportunity –<br />
business was in<br />
my blood!”<br />
SHWETA KHAN,<br />
STARFIRE DIAMOND<br />
JEWELLERY<br />
“I was introduced<br />
to the industry<br />
while exploring<br />
ways to build an<br />
engagement ring<br />
for my now wife.<br />
I discovered a love<br />
for creating pieces<br />
and have never<br />
looked back.”<br />
SIMON GOODBURN,<br />
RIBS & DUST<br />
VOICE OF THE AUSTRALIAN<br />
JEWELLERY INDUSTRY<br />
jewellermagazine.com<br />
Managing Editor<br />
Coleby Nicholson<br />
Editor<br />
Emily Mobbs<br />
emily.mobbs@jewellermagazine.com<br />
Journalist<br />
Talia Paz<br />
talia.paz@gunnamattamedia.com<br />
Advertising Manager<br />
Gary Collins<br />
gary.collins@jewellermagazine.com<br />
Digital Manager<br />
Angela Han<br />
angela.han@gunnamattamedia.com<br />
BULLETIN BOARD<br />
n CHRISTMAS CHEER<br />
Consider this: teamwork makes the<br />
dream work. A successful store is only<br />
as strong as its staff and ensuring they<br />
are managed correctly during the<br />
festive season is crucial. Scheduling<br />
regular meetings that clearly state the<br />
demands of each employee should not<br />
be underestimated. A little Christmas<br />
pudding also wouldn’t go astray.<br />
n FUTURE NUPTIALS<br />
The ‘world’s first’ wedding department<br />
store has opened in London. Think of<br />
The Wedding Gallery as a one-stop<br />
venue for wedding planning, housing<br />
everything from bridal gowns, florists,<br />
beauty studios and of course jewellery.<br />
The space also reportedly offers an<br />
exclusive members-only club for the<br />
industry with meeting rooms, event<br />
spaces and networking activities.<br />
n THIRST FOR JEWELS<br />
Research suggests that people are<br />
drawn to jewellery because of water.<br />
A study published in the Journal of<br />
Consumer Psychology theorises that the<br />
preference for glossy objects – metals<br />
and diamonds – stems from “an innate<br />
preference for fresh water as a resource”.<br />
DIGITAL<br />
BRAINWAVE<br />
SHOW OF HANDS<br />
Businesses looking for more ways to engage with<br />
customers in the lead up to Christmas are in luck.<br />
Instagram has launched Polls, an interactive poll<br />
– in the form of a sticker superimposed over a<br />
photo – that allows users to ask questions and view<br />
the results. After taking a photo or video, add the poll sticker and upload to Instagram<br />
Stories; followers can immediately start voting and retailers will see real-time results.<br />
There are plenty of insights jewellers can glean from this nifty feature … rose, yellow<br />
or white gold this Christmas? Are statement earrings or a stack of bangles the trend<br />
of choice? The opportunities are endless so get polling!<br />
TOP PRODUCT<br />
Cluse’s 18-carat rose gold-plated<br />
Essentielle black crystals chain bracelet<br />
is from the brand’s new jewellery range.<br />
Distributed by Heart & Grace, the piece<br />
was the most popular product last month<br />
ranked by views at jewellermagazine.com.<br />
Production Manager<br />
& Graphic Design<br />
Jo De Bono<br />
art@gunnamattamedia.com<br />
Accounts<br />
accounts@gunnamattamedia.com<br />
Subscriptions<br />
info@jewellermagazine.com<br />
<strong>Jeweller</strong> is published by:<br />
Gunnamatta Media Pty Ltd<br />
Locked Bag 26, South Melbourne,<br />
VIC 3205 AUSTRALIA<br />
ABN 64 930 790 434<br />
Phone: +61 3 9696 7200<br />
Fax: +61 3 9696 8313<br />
info@gunnamattamedia.com<br />
Copyright: All material appearing<br />
in <strong>Jeweller</strong> is subject to copyright.<br />
Reproduction in whole or in part is<br />
strictly forbidden without prior written<br />
consent of the publisher.<br />
Gunnamatta Media Pty Ltd strives to<br />
report accurately and fairly and it is<br />
our policy to correct significant errors<br />
of fact and misleading statements in<br />
the next available issue. All statements<br />
made, although based on information<br />
believed to be reliable and accurate at<br />
the time, cannot be guaranteed and<br />
no fault or liability can be accepted<br />
for error or omission. Any comment<br />
relating to subjective opinions should<br />
be addressed to the editor.<br />
Advertising: The publisher reserves<br />
the right to omit or alter any<br />
advertisement to comply with<br />
Australian law and the advertiser<br />
agrees to indemnify the publisher for<br />
all damages or liabilities arising from<br />
the published material.<br />
8 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
NEWS<br />
NEWS<br />
Gearing up for Christmas challenges<br />
Despite tough trading, buying group heads<br />
agreed that jewellers who remained positive<br />
and implemented certain strategies during<br />
the Christmas period would place themselves<br />
in good stead for a positive outcome.<br />
Nationwide <strong>Jeweller</strong>s managing director<br />
Colin Pocklington said staff training,<br />
consumer financing and window displays<br />
that included some ‘loss leader’ pieces<br />
and visible price tickets on all items were<br />
important areas to address.<br />
“Use this time to clear as much old stock<br />
as possible, which will take the pressure off<br />
cashflow in 2018, and make room for better<br />
performing ranges,” Pocklington added.<br />
Showcase <strong>Jeweller</strong>s general manager Carson<br />
Webb said retailers needed to be aware that<br />
Christmas sales were becoming ‘flatlined’.<br />
“For most, the percentage is no longer the<br />
big 25 per cent of sales in <strong>December</strong>,” he<br />
explained. Webb said rather than discussing<br />
market challenges, the industry required a<br />
proactive approach: “We can’t change the<br />
situation; however, we can change how our<br />
stores are presented and what’s on offer to<br />
our customers and, importantly, the way in<br />
which staff engage with them.”<br />
The comments followed ABS statistics that<br />
showed a below average 1.44 per cent yearon-year<br />
retail sales increase for September.<br />
<strong>Jeweller</strong> shines in VET awards<br />
Adelaide-based jeweller Laura Pivovaroff<br />
was recently crowned Apprentice of the Year<br />
at the <strong>2017</strong> South Australian Training Awards.<br />
Pivovaroff – who works at Wishart <strong>Jeweller</strong>s<br />
and completed a jewellery manufacturing<br />
apprenticeship last year – was one of four<br />
finalists narrowed down from 22 category<br />
entrants working across the various<br />
industries that fell under the state’s vocational<br />
education and training (VET) sector.<br />
“Winning this award means that my passion<br />
and dedication was recognised within the<br />
jewellery industry as well as in the world<br />
outside of jewellery,” Pivovaroff said.<br />
The jeweller would act as an ‘ambassador’<br />
to promote the benefits of undertaking<br />
an apprenticeship in South Australia. She<br />
was also expected to represent the state in<br />
the Apprentice of the Year category at the<br />
Australian Training Awards in Canberra in<br />
late November. It had not taken place at<br />
the time of publication.<br />
Thomas <strong>Jeweller</strong>s closing all stores<br />
Thomas <strong>Jeweller</strong>s, which was established by<br />
James Thomas in 1896, has confirmed the<br />
closure of its eight stores.<br />
According to a statement by The Thomas<br />
Group in October, the chain of Thomas<br />
<strong>Jeweller</strong>s stores would cease trading in the<br />
upcoming months.<br />
The decision was said to allow the group to<br />
“refocus their attention to areas of strength<br />
and growth within their business”.<br />
The statement added that the regional store<br />
properties would be sold, while the Thomas<br />
family would retain the store in Melbourne’s<br />
Bourke Street Mall, with a new tenant to be<br />
unveiled in 2018.<br />
As previously reported by <strong>Jeweller</strong>, Thomas<br />
<strong>Jeweller</strong>s announced the closure of its<br />
Melbourne store in September <strong>2017</strong>. A<br />
company statement at the time noted that<br />
the move was part of a business rebrand that<br />
would involve a focus on regional stores.<br />
+ MORE BREAKING NEWS<br />
JEWELLERMAGAZINE.COM<br />
IN BRIEF<br />
*<br />
BEVILLES SHAKE-UP<br />
Indian company Tara Jewels will acquire<br />
a 49 per cent stake in Bevilles. The chain’s<br />
CEO, Michelle Stanton, said the Bevilles<br />
family would retain a 51 per cent stake<br />
and that the deal was expected to be<br />
finalised in the next 12 months. She added<br />
that the “strategic alliance” made between<br />
both companies in 2013 was always<br />
going to be converted into an “equity<br />
partnership” when the timing was right.<br />
*<br />
JAA FALSE STATEMENTS<br />
In October, the JAA released its Financial<br />
Statements for the year ended June 30,<br />
<strong>2017</strong>. The report, prepared for the AGM<br />
on November 15, was error-ridden despite<br />
being approved by the board and signed<br />
off by directors. At the time of publication,<br />
the JAA had removed the Financial<br />
Statements from its website, stating:<br />
“Please note the 2016-<strong>2017</strong> Financial<br />
Statements will be made available shortly.”<br />
*<br />
SUPPLIER HERALDS CHANGES<br />
Wedding ring supplier TWM Co has<br />
introduced a same-day order and<br />
return service for its ‘plain’ wedding<br />
ring range. According to TWM Co chief<br />
operating officer Roberto Ulas, the new<br />
offering was in response to the “next<br />
generation” of consumers demanding<br />
faster turnaround times.<br />
*<br />
APPRENTICE WINS TOP AWARD<br />
Georgia Piggott, a third year jewellery<br />
apprentice who works at Wallace Bishop’s<br />
head office in Brisbane, was recently<br />
awarded Southbank TAFE’s <strong>Jeweller</strong>y<br />
Apprentice of the Year award and the<br />
Queensland state medal for the regional<br />
WorldSkills Australia competition.<br />
*<br />
YELLOW DIAMOND REVIVAL<br />
POZ Minerals has secured an agreement<br />
to commence operations at its diamond<br />
mine located adjacent to the former<br />
Ellendale mine, which closed in 2015.<br />
Bulk sampling and trial mining operations<br />
at the Blina Diamond Project are expected<br />
to begin next year.<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 9
TOP PRODUCTS<br />
TOP PRODUCTS FOR <strong>2017</strong><br />
A BEVY OF NEW JEWELLERY, WATCHES, DIAMONDS AND GEMSTONES HAS PASSED JEWELLER’S DESK THIS YEAR.<br />
THE FOLLOWING IS A COMPILATION OF THE MOST POPULAR RANKED BY VIEWS AT JEWELLERMAGAZINE.COM.<br />
Thomas Sabo’s 18-carat gold-plated sterling<br />
silver earrings are from the spring/summer<br />
<strong>2017</strong> collection. Distributed by Duraflex Group<br />
Australia, the earrings were the most popular<br />
product for the month of March.<br />
Sams Group Australia’s 0.27-carat, oval cut<br />
vivid pink diamond was sourced from the Argyle<br />
diamond mine in the East Kimberley region of<br />
Western Australia. The stone was the most popular<br />
product for the month of April.<br />
Daniel Wellington’s<br />
36 mm Classic Black<br />
Cornwall timepiece<br />
comprises a black dial with<br />
rose gold-toned detailing<br />
and interchangeable NATO<br />
strap. The watch, distributed<br />
by West End Collection, was<br />
the most popular product<br />
for the month of May.<br />
Jos Von Arx’s bracelet combines leather cord<br />
and stainless steel. The ‘Flexisize’ clip allows for<br />
the piece to be resized so that one size fits all. The<br />
item, distributed by The Russell Collection, was<br />
the most popular product for the month of July.<br />
O’Neils Affiliated’s 11.33-carat blue sapphire<br />
rough is said to appeal to an increasing demand<br />
for ‘raw’ jewellery. The gemstone, part of a<br />
limited parcel of Sri Lankan rough gemstones<br />
obtained by the supplier, was the most popular<br />
product for the month of June.<br />
Worth & Douglas’ Ebony women’s<br />
collection is said to encourage wearers to be<br />
confident individuals. The range comprises<br />
black zirconium rings fashioned into various<br />
designs, and was the most popular product<br />
for the month of August.<br />
Opals Australia’s pendant<br />
featuring a light opal from<br />
Coober Pedy is set in 18-carat<br />
yellow gold and surrounded<br />
by diamonds. It was the<br />
most popular product for the<br />
month of September.<br />
Engelsrufer’s Balance pendant is<br />
adorned with symbols of the lotus<br />
flower, scales and elephant.<br />
The piece, distributed by<br />
Duraflex Group Australia,<br />
features an interchangeable<br />
sound lens and was the<br />
most popular product for<br />
the month of October.<br />
Stones & Silver’s<br />
collection of necklaces<br />
is designed to be mixed<br />
and matched for a<br />
layered look. The offering<br />
– ranging from 35 cm<br />
chokers to 100 cm chains,<br />
as well as 45-70 cm<br />
necklets, lariats and fobs<br />
– was the most popular<br />
product for the month<br />
of November.<br />
+TURN TO PAGE 8<br />
FOR THE MOST POPULAR PRODUCT<br />
FOR THE MONTH OF DECEMBER.<br />
* Top products were measured each month based on the number of unique views on jewellermagazine.com<br />
10 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
AUSTRALIAN OPAL WATCHES<br />
Instyle Watches PTY LTD<br />
02 8399 7301<br />
sales@instylewatches.com.au<br />
www.pierrecardinwatches.com.au
MARTIN RAPAPORT<br />
IMAGE COURTESY: PROSUMER DIAMONDS<br />
UP CLOSE<br />
maverick<br />
WITH THE DIAMOND<br />
MARTIN RAPAPORT IS NEVER SHORT OF WORDS WHEN IT COMES TO<br />
DIAMONDS. COLEBY NICHOLSON MET WITH THE INDUSTRY NONCONFORMIST<br />
TO DISCUSS THE CURRENT STATE OF THE INTERNATIONAL DIAMOND MARKET.<br />
artin Rapaport: most people in the industry will know the name,<br />
or at least recognise the face and signature bow tie.<br />
The founder and chairman of Rapaport Group, which publishes<br />
Rapaport magazine and operates online trading platform RapNet<br />
among other products and services, began his career in the diamond industry<br />
in 1975 as an apprentice diamond cleaver in Antwerp.<br />
His Wikipedia page notes that he has been called a ‘maverick’ within the<br />
diamond industry and probably rightly so.<br />
I met with Rapaport in July to discuss the state of the industry and his often<br />
counter-intuitive and controversial stances on various industry issues.<br />
At the time, he is quick to say that the diamond industry is in a period of<br />
large “transition”.<br />
“Overall the diamond industry has settled, it’s not expanding,” he says. “You could<br />
say the pie is shrinking and people are fighting over the little pieces of the pie.”<br />
Rapaport explains there are several reasons for this, first of which is the fact that<br />
the boom in China quieted down a few years ago.<br />
“In addition, the US market has become more picky,” he continues. “Europe is<br />
gone, and with the oil price the UAE is gone – when I say ‘gone’, I mean that<br />
these markets are not a driving force in diamond demand.”<br />
Rapaport also notes that there is some concern that recent rough sales, to the<br />
tune of about US$1.8 billion, are entering the Indian market.<br />
“There seems to be a lot of rough coming in and there is no increase in polished<br />
demand,” he says. “So there is concern that inventory levels are too high, but<br />
again, we are chatting here now in July-August, and the Christmas season is<br />
around the corner where demand, specifically in <strong>December</strong>, can be triple or at<br />
least double the demand of the rest of the year.”<br />
EVOLVING NEEDS<br />
The industry may be in holding mode but Rapaport says there is optimism<br />
about next year, as well as in the longer-term, and that many changes are taking<br />
place at the consumer end.<br />
“The US is approximately 51 per cent of the market at US$42 billion – that would<br />
be diamond jewellery with metal. Rapaport Group expects the US market to<br />
probably pick up strongly next year,” he explains.<br />
“The consumerism issue is amazing in the US. First of all, you have the<br />
Millennials, who offer a whole different type of consumer demand. The<br />
Millennials are primarily focused on three things: an experience; customisation<br />
– their ring should be a little different, but it doesn’t mean customising from<br />
scratch; and finally, extreme customer service.”<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 13
Further to this, he predicts an increasing interest in social<br />
responsibility from Milennials.<br />
“With this cultural shift in demand in the US is the emergence of<br />
what I would call the ‘we’ generation,” Rapaport explains.<br />
“Everything is community and social. So the idea that people want<br />
to know where their diamonds are coming from is going to grow,<br />
and I believe it will evolve competition.”<br />
He envisions a time when customers will shop around based on<br />
whether a retailer offers a diamond from a ‘good source’.<br />
“A guy will come up and say, ‘My diamonds have a very good source,’<br />
and I’ll go to another store and I’ll say, ‘That guy told me his diamond<br />
had a good source, what about yours?’ Consider what happened<br />
with XXX GIA certification. There was no cut grade. People didn’t<br />
ask for cut grades but now cut grades have come into the fore and<br />
everyone demands it.”<br />
MATTER OF ETHICS<br />
Rapaport, who played an integral part in the establishment of the<br />
Kimberley Process, adds that one of the biggest concerns today is<br />
the “greenwashing” utilisation of the Kimberley Process.<br />
“Companies and countries say, ‘I have a Kimberley Process certificate,<br />
and therefore I’m in compliance with the anti-money laundering or<br />
counter terrorism funding,’ and that’s simply not true,” he explains.<br />
“The industry is still lying about the efficacy of the Kimberley Process<br />
certificates relative to money laundering. I see this as a tremendous<br />
risk to industry reputation because as you see there are more<br />
terrorist attacks taking place.<br />
“I’m not accusing anyone of anything specific but I’m saying the<br />
industry is at fault, and I think those in the industry that say that the<br />
Kimberley Process protects the industry from anti-money laundering<br />
and terrorist funding are liars.”<br />
When questioned whether such an issue has any real significant<br />
impact on a retail jeweller, given consumers, particularly in Australia,<br />
rarely ask if a diamond is ethically sourced, Rapaport is unyielding<br />
that it should be a focus for everyone.<br />
“What’s the difference between a dog and a leader?” he asks. “A dog<br />
sniffs everybody else’s behind to see where to go and a leader says,<br />
‘Hold on, this is where we need to go.’ The fact that consumers don’t<br />
ask about it is not a reason for the industry to be unethical.<br />
WORTH & DOUGLAS<br />
1 800 006 388<br />
sales@worthdouglas.com.au<br />
worthdouglas.com<br />
Follow us on INSTAGRAM<br />
@ebony_wd<br />
“Are we leaders? Are we an ethical industry? If you say to me, ‘Well,<br />
we are not really as we only have to be an ethical industry if our<br />
customers ask for it,’ that is unacceptable by Rapaport standards.<br />
Second point is, as soon as god forbid, there is a problem, then it’s<br />
not just the reputational risk but it’s the tremendous damage that<br />
would come as the governments would start looking at us. Then<br />
people will start saying what are you doing? I think it’s wise to get<br />
ahead of the curve and we should always keep a clean house before<br />
people start to complain.”<br />
Tied with the subject of ethics and transparency is the issue of ‘over-
®<br />
TONES & SILVER<br />
WHOLESALERS OF QUALITY JEWELLERY<br />
ESTABLISHED & TRUSTED SINCE 2003<br />
grading’ diamond certificates and the potential to severely harm<br />
consumer trust.<br />
It’s fair to say that Rapaport went on a warpath in 2014 after banning<br />
EGL grading reports from listing on RapNet.<br />
About three years on, is Rapaport confident that grading reports are<br />
more transparent?<br />
“I think eliminating EGL was a positive step. People were not<br />
happy that we were reducing income from some people but the<br />
fundamental thing about honesty and integrity and recognising<br />
that the industry needs to maintain its reputation remains,” he says.<br />
“I think the issue of the over-grading has definitely improved<br />
because people realised that we will not support it, and when we<br />
stop supporting these kinds of grading reports, they in fact more or<br />
less shut down.”<br />
NATURAL VS SYNTHETICS<br />
Regardless, Rapaport believes that many other “problems” still exist<br />
in the industry.<br />
One of the major advancements impacting the traditional natural<br />
diamond industry is the rise of synthetics.<br />
“THE ONE GOOD THING<br />
ABOUT SYNTHETICS<br />
IS THAT IT GIVES THE<br />
NATURAL DIAMOND<br />
PRODUCERS A KICK<br />
IN THE BUTT.”<br />
MARTIN RAPAPORT<br />
Rapaport says consumer transparency is linked here too because<br />
despite the powerful marketing campaigns, synthetic diamonds<br />
are not identical to natural diamonds.<br />
“That is a fundamental problem because the consumer is being<br />
misled by thinking that synthetic diamonds are identical, when they<br />
are not identical because there is no natural scarcity,” he explains.<br />
Rapaport believes that there will never be a shortage of synthetic<br />
diamonds, stating that production is only going to increase, which<br />
will inevitably lead to a price collapse.<br />
This, he continues, presents a challenge for retailers because they<br />
could be selling a synthetic today for US$10,000 but as the cost<br />
of production falls, that stone will have a value of US$100 in 10<br />
years’ time.<br />
“If your customer came back to you, it would look as though they<br />
were dealt a bad hand,” Rapaport states. “So if retailers want to sell<br />
synthetics, they need to tell their customer that the prices of these<br />
things will probably fall significantly more than natural diamonds.”<br />
Ph: +61 3 9587 1215<br />
Email: info@stonesandsilver.com.au
MARTIN RAPAPORT<br />
While this may be true, Rapaport says the natural diamond producers are not<br />
communicating the ‘scarcity value’ in an effective way.<br />
“The one good thing about synthetics is that it gives the natural diamond<br />
producers a kick in the butt. So I think that’s excellent,” he states. “It’s high time<br />
that the diamond mining companies took responsibility for their product<br />
because essentially they are the people that claw back the profits.”<br />
However, Rapaport says the matter is complex and references a recent<br />
announcement by the Gem & <strong>Jeweller</strong>y Export Promotion Council that it<br />
would contribute US$2 million to the Diamond Producers Association – the<br />
international group backed by mining companies and developed to promote<br />
generic diamonds.<br />
“I think it’s silly to give US$2 million to the mining companies because let’s say<br />
the industry gets together and promotes natural diamonds.<br />
“Let’s say there is a lot of demand for these [natural] diamonds because of the<br />
promotion by the private sector industry [the non-mining sector]. Do you think<br />
that the rough diamond suppliers are going to lower their prices or raise their<br />
prices?” he asks.<br />
“The story of the diamond industry is, if you get up there and you do too much<br />
promotion of generic diamonds, then the diamond mining companies raise the<br />
price and what you are doing therefore is creating higher prices for yourself.”<br />
Rapaport believes that just as the industry shouldn’t be supporting synthetic<br />
diamonds if there is no wish for that support, the industry shouldn’t support<br />
generic natural diamonds unless there are assurances that the results of<br />
investments will be available to those making the investments.<br />
“Don’t plant trees if someone else eats your fruit,” he says. “If the private sector<br />
here, the non-mining sector, spends money on generic diamond promotions,<br />
and the mining companies raise the price then that’s not rational. I mean, people<br />
can throw the money away, no problem, but it’s not fair.<br />
“So if we spend money promoting it we should get the fruits of our money and<br />
we should not see increases in rough diamond prices.”<br />
Wrapping up his assessment of the current state of the diamond industry,<br />
Rapaport says this is a period of re-assessment, re-configuration and re-doing.<br />
“This doesn’t mean that there aren’t a lot of interesting changes taking place,”<br />
he concludes.<br />
Oh, and that bow tie was present, naturally. i<br />
MARTIN RAPAPORT is the founder of Rapaport Group, an international network<br />
of companies that provides a range of products and services. The Rapaport Price<br />
List is said to have revolutionised the diamond trade by providing an independent<br />
benchmark that the global diamond industry uses to standardise, compare and<br />
negotiate prices.
CUSTOMER EXPERIENCE<br />
Defining the<br />
customer<br />
great<br />
experience<br />
ALL RETAILERS WANT TO<br />
PROVIDE A ‘GREAT CUSTOMER<br />
EXPERIENCE’ BUT HOW MANY<br />
DELIVER ON IT? DAVID ALLEN<br />
OUTLINES WAYS TO ACHIEVE<br />
THE HOLY GRAIL OF RETAIL.<br />
irst of all, it is important to understand that customers – not retailers<br />
– build brands; however, if every retailer knows that being obsessed<br />
with their customer is the key to success, why aren’t more retailers<br />
outrageously successful?<br />
What is it about the ‘name above the door’?<br />
<strong>Jeweller</strong>y retailers should ask themselves: what does the customer see when<br />
they are in the store and how do they feel when they visit and leave the store?<br />
Everyone subliminally measures the experience they get when making a<br />
purchase from a store. This reaction can be categorised in three ways:<br />
1. The experience was incredible<br />
2. The experience was indifferent<br />
3. The experience was terrible<br />
Most experiences are unfortunately indifferent, and what many retailers<br />
don’t realise is that all of these retail experiences are linked to how their<br />
customer is made to feel rather than what was purchased or what they<br />
paid for the product.<br />
Many retailers today underestimate the importance of the consumer’s trust<br />
and loyalty in connection to the store’s brand, and I believe this is linked to<br />
their failings.<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 17
213869_ValentinesDay_<strong>2017</strong>_300x1000_2.indd 1<br />
M2708<br />
Pg 22<br />
M2147<br />
Pg 13<br />
M2712<br />
Pg 27<br />
M2704<br />
Pg 5<br />
M2706<br />
Pg 7<br />
M2675<br />
Pg 16<br />
M2256<br />
Pg 6<br />
24/10/<strong>2017</strong> 11:26 am<br />
213869_ValentinesDay_<strong>2017</strong>_745x495_V2.indd 1<br />
M430-50<br />
24/10/<strong>2017</strong> 11:35 am<br />
INCREASE<br />
Y UR SALES<br />
WITH LA COURONNE’S<br />
COMPLETE MARKETING PACKAGE<br />
Interest Free Finance Available<br />
While an amount of this trust is built around how a retailer markets<br />
and promotes the brands they carry, most of it is created by the<br />
salespeople and the interaction that a customer has with them<br />
on the shop floor.<br />
So how do business owners instil and strengthen trust and loyalty<br />
in a retail store?<br />
$199<br />
here’s<br />
my heart<br />
$399<br />
$349<br />
$199<br />
$229<br />
$699<br />
catalogue<br />
out now<br />
The experience that the customer receives is directly linked to<br />
how the team feels about where they work – if jewellery<br />
storeowners want to engage with their customers then they<br />
need to engage with their teams.<br />
Store managers need to be encouraged and empowered<br />
to deliver the experience that they believe will transform<br />
an indifferent or terrible experience into an incredible and<br />
unforgettable experience.<br />
YOUR LOGO PRINTS HERE<br />
OURT ROWVILLE 3178 TELEPHONE: [03] 9764 2165 FACSIMILE: [03] 9764 2491<br />
sales@lacouronnejwl.com.au WEBSITE: www.lacouronnejewe lery.com.au<br />
$129<br />
213869_ValentinesDay_<strong>2017</strong>_32-1_V8.indd 1 16/10/<strong>2017</strong> 10:53 am<br />
CATALOGUE<br />
catalogue<br />
out now<br />
DOUBLE SIDED POSTER<br />
75CM X 50CM<br />
here’s<br />
my heart<br />
9ct gold<br />
50cm chain<br />
$000<br />
M430-50<br />
here’s<br />
my heart<br />
9ct gold<br />
50cm chain<br />
$000<br />
M430-50<br />
here’s<br />
my heart<br />
9ct gold<br />
50cm chain<br />
$000<br />
“RETAILERS<br />
DON’T NEED<br />
THE OVERUSED<br />
‘FIVE STEP’ SALES<br />
STRUCTURE.”<br />
DAVID ALLEN<br />
BANNER 30CM X 100CM<br />
PRICE TICKETS<br />
• Colour catalogues, printed with your name, logo & address,<br />
exclusive to your area.<br />
• Double sided posters, window banners & price tickets.<br />
• Quality jewellery.<br />
• Quick turnaround stock.<br />
• Exchange old stock for new.<br />
• Interest free finance available for approved customers.<br />
OUR NEW SEASON’S<br />
CATALOGUE IS HERE<br />
ENQUIRE NOW!<br />
TO SECURE YOUR TERRITORY, CALL US TODAY<br />
03 9764 2165<br />
TO VIEW OUR RANGE & ORDER STOCK VISIT US ONLINE AT<br />
www.lacouronnejewellery.com.au<br />
EMAIL: sales@lacouronnejwl.com.aua<br />
This is a pretty big statement, but let me explain, and actually<br />
contrary to popular belief, it is not that difficult to understand or<br />
implement. There is no need for process manuals or endless volumes<br />
of training materials.<br />
What is needed, and this is the critical part of the recipe of a great<br />
customer experience, is of course great people.<br />
Although this sounds a little cliché, it is the one area that retailers<br />
seem to have difficulty understanding and which to manage its<br />
importance even though they would all suggest that it is a focus.<br />
The two key ingredients are great store managers and, for those<br />
retailers with multiple stores or a chain, great regional managers.<br />
There are a number of different names for the role of regional<br />
manager – area manager is another – but let’s refer to the position<br />
as a regional manager for the sake of this discussion.<br />
Many retailers talk about the importance of store managers but<br />
understand less about what makes a great store manager.<br />
Further, regional managers are rarely talked about, mentioned,<br />
nor given focus. The reality is that this role is critically important;<br />
a great regional manager can have an enormous influence on the<br />
profitability of a retail business, and a bad one can really do a lot<br />
of damage because of their influence on the store manager.<br />
GREAT STORE MANAGERS<br />
The very best store managers are those who are the best at three
CUSTOMER EXPERIENCE<br />
core competencies: selling, being a<br />
merchant and coaching.<br />
In a small footprint retail store everyone<br />
contributes, and the store manager must<br />
be the most visible person to customers.<br />
Retailers should be very wary of the store<br />
manager who does not want to be on the<br />
shop floor. Store managers should be one<br />
of the best sales people within the store day<br />
after day and week after week.<br />
In order to maximise sales, they need to<br />
understand how to utilise the real estate in<br />
their store to best present the products they<br />
are selling and they also need to be great<br />
coaches as they are responsible for a team<br />
of people and the working environment<br />
that they create for them.<br />
GREAT REGIONAL MANAGERS<br />
The very best regional managers are those<br />
who are the best at the same things that a<br />
great store manager is great at: selling, being<br />
a merchant and coaching.<br />
If they are not great at these key<br />
competence areas then how do they, or<br />
could they, set the right example for the<br />
store manager and the team to follow?<br />
How can they coach a store manager to be<br />
a better salesperson if they themselves are<br />
not a great salesperson?<br />
In addition to these three core<br />
competencies, a great regional manager<br />
needs to have strong competence in the<br />
areas of business acumen, leadership and<br />
negotiation and influence. They are, after<br />
all, responsible for a number of stores, and<br />
there is a much higher level of profit and loss<br />
accountability, stakeholder management<br />
and leadership.<br />
A great regional manager also needs to be<br />
present, genuine and effective.<br />
What does it mean to be effective? This<br />
is important as the way that a regional<br />
manager uses their time has a big impact on<br />
how empowered a store manager feels.<br />
A regional manager’s number one priority<br />
is the store manager; the centre of their<br />
focus is the store manager, while the<br />
team members in the retail store are the<br />
responsibility of the store manager.<br />
Many regional managers don’t understand<br />
this concept, which can degrade<br />
empowerment for staff members.<br />
It is the regional manager’s role to coach<br />
the store manager to manage their own<br />
team and this should include training on the<br />
recruitment of store teams.<br />
The very best regional managers work<br />
with the store manager in such areas and<br />
decisions, empowering them to choose their<br />
own people.<br />
Some regional managers don’t understand<br />
the difference between coaching and doing.<br />
The regional manager does not run the<br />
store, the store manager does.<br />
So, jewellers who have empowered great<br />
store managers and regional managers have<br />
some of the critical ingredients to a great<br />
customer experience.<br />
LOSE THE ‘WAY OF SELLING’<br />
For a great customer experience, retailers<br />
don’t need the overused ‘five step’ sales<br />
structure. In fact, retailers don’t need<br />
a selling process or a physical mystery<br />
shopping process, which is archaic because<br />
it is not real!<br />
They need to empower store managers to<br />
look after their customers. The definition<br />
of a great customer experience is individual<br />
to every store. Let the team be the best<br />
version of themselves, making sure that they<br />
understand it is okay to do so.<br />
A customer recalls a great experience<br />
because a team member was genuine in<br />
their approach, not because a team member<br />
asked an open-ended question.<br />
Empowerment, however, must be<br />
supported by knowledge otherwise it<br />
is irresponsible. It is the storeowner’s<br />
responsibility to provide the knowledge<br />
– great store managers and great regional<br />
managers need to be developed.<br />
GREAT CUSTOMER EXPERIENCE<br />
Let’s summarise the philosophy of a great<br />
customer experience:<br />
• A great customer experience is the<br />
responsibility of the entire organisation.<br />
Retailers who want to engage with<br />
customers need to engage with their<br />
team, because, as previously mentioned,<br />
what the customer is saying is directly<br />
related to how employees feel about<br />
Quality<br />
Findings<br />
for <strong>Jeweller</strong>s<br />
ALL our components are<br />
• Guaranteed<br />
• Easy to work with<br />
• Made from premium metals<br />
Happy Festive Season!<br />
Enquire Now<br />
1800 811 116<br />
sales@peekays.com.au<br />
www.peekays.com.au<br />
facebook.com/peekaysfindings
CUSTOMER EXPERIENCE<br />
where they work. The stores should be positioned as the beating heart<br />
of the business and store managers should be openly empowered to look<br />
after their customer. Where possible, retailers should recruit ‘their customer’<br />
so they can then sell to the customer. Employ people who love the store’s<br />
brand, or if they are unfamiliar with the store’s brand give them a reason<br />
to love the brand by treating them well. Focus should be placed in the<br />
areas of compensation, incentives, reward, recognition as well as learning<br />
and development.<br />
“WHERE POSSIBLE,<br />
RETAILERS SHOULD<br />
RECRUIT ‘THEIR<br />
CUSTOMER’ SO THEY<br />
CAN THEN SELL TO<br />
THE CUSTOMER.”<br />
• Selling skills are very important because, after all, in retail that is what<br />
retailers do – they sell. Developing a toolbox of training materials with a<br />
selection of selling tips and skills needs to be created and utilised. <strong>Jeweller</strong>s<br />
don’t need a ‘way of selling’ – the steps of the sale or a sale process –<br />
they need some practical selling advice, a great working environment<br />
and to be empowered to look after their customer. It is as simple as that.<br />
• Measure the customer experience in the right way. Measure the financial<br />
results and find a way to measure how the customer was made to feel.<br />
An important part of this is making sure that the team works within the<br />
boundaries of a small number of financial KPIs. Simplicity is key and the<br />
store’s team should be measured on a small number of financial KPIs.<br />
Providing customers with a great experience is the role of every person<br />
employed by the business. Recruit people who are passionate – or are<br />
given a reason to be passionate – about the store’s brand. Provide the team<br />
with skills and the know-how to measure the experience, as well as the<br />
financials and KPIs, and empower retail store managers to deliver a great<br />
customer experience for their customers. i<br />
DAVID ALLEN is president of Pandora’s EMEA (Europe, Middle East, Africa) region.<br />
He was appointed to this newly created position in 2015 and prior to that, was<br />
Pandora Australia and New Zealand president. Before entering the jewellery<br />
industry, Allen had extensive experience in Australian retail, having worked for<br />
companies including Pretty Girl Fashion Group, Woolworths and Colorado Group.<br />
Sterling silver and stainless steel anchor bracelets from Sweden<br />
1.2M followers facebook.com/thetomhope :: 300K followers @thetomhope :: www.thetomhope.com<br />
Distributed in Australia and New Zealand by BYMR tel (02) 9436 2929 info@bymr.com.au
NEW NORMAL<br />
Prospering in the<br />
New Normal<br />
THE RETAIL LANDSCAPE HAS ALTERED FOREVER<br />
AND DRAMATIC CHANGES ARE STILL EXPECTED.<br />
COLIN POCKLINGTON REPORTS ON HOW<br />
JEWELLERS CAN BEST ADAPT TO A CHANGING<br />
MARKET IN ORDER TO SURVIVE AND THRIVE.<br />
ost readers will remember the look of happy consumers circa 2009;<br />
however, there have been less of those in the years since and this<br />
article will explain why as well as how local and international trends<br />
have come together to impact the jewellery industry.<br />
I started tracking Australian jewellery and watch sales in 1982 and Figure 1<br />
(See page 22) shows the period from 1982 to 2009.<br />
In 2002, I noticed there had been an increase in real income for the average<br />
Australian and the industry was on a path of growth. At that point there was<br />
a tremendous opportunity for jewellers to increase the sales of luxury goods,<br />
particularly diamond sales. As Figure 1 indicates, the average jeweller from about<br />
2002 onwards achieved very good growth and much of that was due to increased<br />
diamond sales.<br />
Then of course the global financial crisis (GFC) hit in 2010 and I predicted the<br />
industry would need strategies to survive in a ‘slowing’ economy. I expected that<br />
the economy would for some time be quite slow; that prediction was correct but<br />
it was also for a lot longer than I had anticipated.<br />
Tracking jewellery and watch sales after this period, Figure 2 (See page 22) shows<br />
that sales dropped slightly to about $3 billion by 2012; however, were back above<br />
$3 billion by 2016.<br />
In the financial year just ended, which is not shown in Figure 2, there will be a<br />
6-8 per cent drop in jewellery sales. Seven years of static sales, and now a drop<br />
is putting a lot of pressure on the industry.<br />
REASONS FOR THE FALL<br />
International gross domestic product (GDP) growth has halved since the GFC,<br />
which means the whole world has been affected to some extent. This is because<br />
of lower population figures, the retirement of Baby Boomers, a decline in labour<br />
force participation and the fact that technology/innovation has been primarily<br />
used to steal market share, rather than drive growth in jobs and thus not adding<br />
wealth to the world economies.<br />
When putting my analysis together in June this year, Australia had the third<br />
highest household debt to GDP, as seen in Figure 3 (See page 24). It was twice that<br />
of the G20 (20 largest economies), twice as bad as Europe and 50 per cent worse<br />
than the US. Since Figure 3 was produced, Australia has moved into second place.<br />
Unemployment rate in Australia is 5.7 per cent; however, the more important<br />
figure is that 26 per cent of people are ‘under’ employed – they’ve got part-time<br />
or casual jobs and they’re not getting the sufficient number of hours they need in<br />
a week to cover their living costs.<br />
Interest rates have been low for many years and everyone is concerned what<br />
will happen when they start to increase, which they inevitably will at some point.<br />
An interest rate increase from 4 per cent to 5 per cent might not seem much – it’s<br />
only 1 per cent – but that means a 10 per cent increase in repayments to the bank<br />
each month.<br />
Online retail sales is an influence as well, with Australian online sales in the year<br />
ended 2015/2016 being about $20 billion or representing 6.7 per cent of total<br />
retail sales.<br />
We’re also currently going through another revolution. We’ve had the agricultural<br />
revolution, the first industrial revolution, the digital revolution and now the<br />
technological – or fourth industrial – revolution. This one is affecting or disrupting<br />
almost every industry around the world and there are more changes in the years<br />
ahead with artificial intelligence, robotics, autonomous vehicles and 3D printing.<br />
The impact of 3D printing is going to be huge – many things purchased in a few<br />
years won’t require anyone to physically visit a store to make a purchase; they’ll<br />
simply download a program and print a product using their own 3D printer.<br />
Australia’s national accounts indicate that roughly 80 per cent of the average<br />
spending by population is on essentials – rent, loan repayments, food, health,<br />
power and so on. That leaves about 20 per cent for non-essentials like expensive<br />
clothing and jewellery.<br />
Now in the past four or five years, there’s been negative wage growth in real terms.<br />
Wages haven’t gone up enough and so the average person has had a 1-2 per cent<br />
decrease in their income in real terms and they’ve come from $100 down to $98 –<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 21
FIGURE 1. AUSTRALIAN JEWELLERY AND WATCH SALES 1982-2009<br />
Karl Lagerfeld <strong>Jeweller</strong>y - Just Released<br />
FIGURE 2. AUSTRALIAN JEWELLERY AND WATCH SALES 1990-2016<br />
these numbers are for the purpose of making a simple comparison in<br />
the calculations.<br />
Figure 4 (See page 24) shows that consumers still have to spend the<br />
same amount of money on essentials, which means they’re $2 short<br />
or 2 per cent short on their spending for non-essentials. In this<br />
example, the consumer’s non-essential spending falls from $20 to $18,<br />
which is a 10 per cent reduction. That small decrease in real income<br />
has a more profound effect on discretional spending.<br />
What’s currently happening is that at the same time that the cost of<br />
essentials has increased, the real income has dropped by about 1-2<br />
per cent and the amount of money spent or available to spend on<br />
non-essentials has decreased by about 15 per cent.<br />
In addition to pressures in the local economy, the consumer is also<br />
stressed because of world unrest and globalisation.<br />
FIVE MEGATRENDS<br />
This leads to the five megatrends driving the disruption and which<br />
will be in full force by 2025.<br />
The first is ‘rapid urbanisation’ – 60 per cent of the world’s population<br />
will live in one of 60 ‘mega cities’ around the world by 2025, including<br />
Sydney, Melbourne and Brisbane.<br />
Exclusively Distributed by<br />
At the same time there will be 80 billion communication devices in<br />
the world and it’s said that the average person will own as many as<br />
five, which means that shopping is going to be influenced even more<br />
by digital means than it is now – welcome to the ‘digital age’.<br />
‘Resource scarcity’ is another megatrend, where energy prices will<br />
PH +613 95 533 777 | MOB 027 309 2039<br />
info@westendcollection.com.au | www.westendcollection.com.au
NEW NORMAL<br />
increase. There will be a ‘shift in economic<br />
power’ as India will be the next country to<br />
grow rapidly with the third largest GDP. Asia<br />
and Africa will also expand rapidly.<br />
A ‘demographic change’ is at play as well.<br />
People will live longer and have fewer<br />
children. A few years ago in Australia, there<br />
were four employees for every retiree but<br />
by 2050 there is going to be 1.5 employees<br />
per retiree.<br />
Globalisation has brought challenges and<br />
opportunities. While reduced transportation<br />
barriers and communication costs have<br />
resulted in new markets, there’s been a<br />
disruption of labour-based markets – evident<br />
in the Australian car manufacturing industry,<br />
which has moved offshore.<br />
Then we come to the retail disrupters.<br />
Companies entering Australia, like Amazon<br />
and Alibaba, are agile, innovative competitors<br />
finding clever ways to launch into the market,<br />
and the jewellery industry has to do the same<br />
– it has to be smarter.<br />
Interestingly, 40 per cent of people still<br />
consider shopping a chore because of<br />
difficulty in finding a product, long checkout<br />
lines, inability to locate items and poor<br />
service. While 93 per cent still buy from bricksand-mortar<br />
stores, 7 per cent are buying<br />
online. That’s a lot of trips that people aren’t<br />
making to a shopping centre because they’ve<br />
already bought something online. This is one<br />
of the reasons why shopping centre foot<br />
traffic has been falling for the past few years<br />
and why many jewellery stores have been<br />
able to renew leases this year for equal or<br />
lower rates.<br />
Amazon issued a statement in the Sydney<br />
Morning Herald in April that stated: “We’re<br />
going to destroy the retail environment<br />
in Australia.”<br />
Before launching its operation in Australia,<br />
it’s understood that Amazon will study<br />
the market, collecting price-points on the<br />
products it will sell, and then set prices at<br />
30 per cent less.<br />
The retail giant is all about gaining market<br />
share; however, once it achieves huge<br />
worldwide market share, prices will<br />
inevitably increase.<br />
While Amazon sells jewellery in several<br />
regions, it is understood that it won’t initially<br />
introduce the category in Australia … but<br />
one has to assume it’s only a matter of time<br />
before it will.<br />
A recent jewellery search on the company’s<br />
US site showed 52,000 bracelets, 54,000 pairs<br />
of earrings, 54,000 necklaces and the list of<br />
offerings goes on. The choice is enormous<br />
and I think this retail behemoth is going to<br />
cause considerable concern for chain stores<br />
or any jewellery store selling what I call a<br />
more generic product.<br />
Now looking at the poor old jewellery store<br />
with its stressed customers.<br />
For a typical independent jewellery business<br />
profile, based on an average of the figures<br />
I’ve looked at, sales are about $500,000, with<br />
profit before tax usually averaging about 5<br />
per cent or 7 per cent of sales.<br />
If all the market changes and disrupters<br />
previously discussed affect the average<br />
store by just 10 per cent of sales, provided<br />
expenses remain the same, then it will<br />
basically break even. A 15 per cent drop in<br />
sales would put most jewellery stores at a<br />
loss. <strong>Jeweller</strong>s can’t afford to lose even 10<br />
per cent of sales; they have to find a way to<br />
maintain and possibly increase sales.<br />
A LOOK TO THE FUTURE<br />
Here is an overview of the main changes<br />
that will occur in retail.<br />
There’s going to be even more cross-border<br />
business-to-consumer commerce. According<br />
to Amazon, this business structure will<br />
increase 34 per cent in the next five years.<br />
Several years ago, there used to be<br />
manufacturers in Asia and an agent and<br />
then there was a local importer and a<br />
wholesaler and a retailer and a consumer.<br />
That’s flattening right out. More businesses<br />
producing products are trying to find ways<br />
to sell directly to consumers and cut out the<br />
middleman, and it’s only going to increase.<br />
There’s also more global competition coming:<br />
a number of global retail chains, particularly in<br />
fashion, have already entered the market but<br />
more are on their way from various industries.<br />
What many people don’t realise is that bricksand-mortar<br />
store sales are more profitable<br />
than online sales. It’s not good business sense<br />
to transfer a profitable sale from a bricks-and-
FIGURE 3. GLOBAL ANALYSIS OF HOUSEHOLD DEBT TO GDP<br />
FIGURE 4. A SMALL FALL IN REAL INCOME IMPACTS DISCRETIONAL SPENDING<br />
mortar store to an unprofitable sale, or a less profitable sale, on an<br />
online environment.<br />
As previously mentioned, the prevalence of 3D printing is going<br />
to increase.<br />
Another big factor is social proofing – social media reviews and thirdparty<br />
ratings that influence buying decisions. This is going to be much<br />
more powerful than traditional mainstream media, which reaches less<br />
than half of the people it did 10 or 15 years ago.<br />
The good news is that bricks-and-mortar stores still have a big<br />
advantage over online retailers as they can provide more effective<br />
personal advice.<br />
The opportunities for bricks-and-mortar storeowners is that they will<br />
attract a lot of customers if they can offer a really well presented store,<br />
really well trained staff and a great experience.<br />
RETAIL ‘101’ FOR TOUGH TIMES<br />
There are four areas that retailers should concentrate on during a<br />
downturn: basics and controls; costs; cash conservation; and maintain/<br />
increase sales.<br />
Let’s start with complete financial control. <strong>Jeweller</strong>s need to be very<br />
aware of their gross profit (GP) percentage rate, particularly if they have<br />
a workshop.<br />
Most costs are okay for many small businesses in this industry;
NEW NORMAL<br />
however, it’s important to make sure that<br />
particularly labour and rent are within the<br />
industry benchmarks. The average rent for a<br />
jewellery store should represent about 13.7<br />
per cent of sales. If rent is above that, which it<br />
could be if the store is at a Westfield shopping<br />
centre for example, then the business would<br />
need to spend less in advertising with labour<br />
costs being about 18-22 per cent of sales.<br />
I mentioned GP because a lot of stores have<br />
workshops (manufacturing bench) and if the<br />
storeowner has jewellers working for them<br />
or if they’re the jeweller then they need to<br />
make sure they know the workshop’s GP. The<br />
workshop needs to recover the full labour<br />
and running costs plus a wholesale margin<br />
of 25 per cent.<br />
The next point is to conserve cash. In tough<br />
times, retailers must conserve cash so always<br />
accept interest-free financing if available.<br />
Conserving cash also means managing stock<br />
even better than before. In other words, look<br />
at the stock-turn rate of the major product<br />
categories and find a way to improve them<br />
if they’re outside industry benchmarks.<br />
Once all of that is in place the focus is to<br />
maintain or better still, try and increase sales.<br />
The whole focus in tough times has to be<br />
marketing in order to maintain and increase<br />
sales. Marketing must be the focus given<br />
jewellery is an industry with a higher margin<br />
and very low stock-turn rate.<br />
ADDRESSING CHALLENGES<br />
With less foot traffic, retailers have to find<br />
a way to increase their hit rate for the<br />
customers that do visit the store. If the<br />
business is getting four sales out of 10,<br />
then it needs to increase that to five out<br />
of 10 or more.<br />
Customers are seeking custom-made<br />
merchandise, in a greater proportion<br />
to off-the-shelf product, and/or greater<br />
personalisation of products. This trend<br />
actually started about seven years ago but<br />
it’s going to increase a lot in the years ahead<br />
and jewellers have to gear themselves up to<br />
allow for more custom work.<br />
International management consultants<br />
McKinsey & Co issued this statement in<br />
April: “The future is handmade. Younger<br />
consumers are embracing handmade crafts,<br />
including jewellery, like no time since the<br />
advent of mass production. As jewellery is<br />
fundamentally a form of self-expression,<br />
the segment is ripe for bespoke disruption.”<br />
The firm studied the retail jewellery industry<br />
worldwide and that’s what they believe the<br />
sector should be embracing – the growth<br />
in handmade, designed jewellery.<br />
Reduced discretionary spending forces<br />
retailers to address what is in the cabinets<br />
and windows. <strong>Jeweller</strong>s must always carry<br />
some lower-priced items to make the stock<br />
look affordable, and thus get people in the<br />
door. This doesn’t mean lowering the price<br />
for everything or bringing in cheaper stock<br />
but it does mean finding some focal areas<br />
with lower price points to make people<br />
realise they can shop in the store.<br />
As 83 per cent of people do research online<br />
before they buy from bricks-and-mortar<br />
stores, it’s essential that every jeweller has<br />
a good website and that it’s mobile friendly.<br />
Stores also probably need to reduce their<br />
diamond jewellery inventory. The average<br />
stock-turn rate in diamonds for most people<br />
in this industry is pretty poor – it’s probably<br />
closer to 0.3 or 0.4 and it really needs to be<br />
about 0.8.<br />
Consumers have been driven by a need for<br />
convenience but they also want or appreciate<br />
a more differentiated and seamless<br />
experience offline and online.<br />
Today’s consumers want what they want,<br />
when they want it.<br />
<strong>Jeweller</strong>s will need to be so much better at<br />
whatever they do now than they were even<br />
one year ago because we are going through<br />
what I call a transformation of discretionary<br />
retail. This is not just in Australia but also<br />
around the world and everyone will have to<br />
make themselves fit.<br />
Sadly, some businesses won’t get through the<br />
next 12 to 18 months; however, those that do<br />
will probably come out the other end a lot<br />
stronger. Welcome to the New Normal. i<br />
COLIN POCKLINGTON has more than 40 years<br />
of experience in strategic and business planning<br />
in the retail jewellery industry. He is co-founder<br />
of Australia and New Zealand’s largest buying<br />
group Nationwide <strong>Jeweller</strong>s.<br />
www.collectivedesigns.com.au<br />
sales@collectivedesigns.com.au<br />
+61 (0)2 4367 3922
X FACTOR<br />
ALESSA JEWELRY ANDRÉS GALLARDO BUTANI<br />
Beauty<br />
in the details<br />
IN-STORE DESIGN IS A MAJOR INFLUENCER OF CONSUMER<br />
PURCHASING DECISIONS BUT FINDING THE RIGHT VISUAL<br />
STRATEGY ISN’T ALWAYS EASY. TALIA PAZ SCOURS THE GLOBE<br />
IN SEARCH OF JEWELLERY STORES WITH THE X FACTOR.<br />
hat are consumers seeking when they enter a jewellery store?<br />
Aside from the obvious assortment of product, consumers<br />
expect to enter an environment that reflects the attributes that<br />
the business ‘stands’ for. A combination of the look, feel and smell<br />
of a store arguably plays a large role in helping to make a customer<br />
feel comfortable and ultimately make a purchase. The word ‘experience’ is<br />
thrown around a lot but surely for good reason.<br />
Kevin Linberg, head of design at global retail design agency Sheridan & Co, says<br />
telling the business’ story in a clear and compelling way is critical to making a<br />
solid first impression.<br />
“Your brand needs to be reflected in the design and visual merchandising,”<br />
Linberg states. “A strong and inspired design language that considers the use<br />
of materials, motifs and lighting will establish what makes your brand unique<br />
and will communicate this to customers.”<br />
Sheridan & Co retail strategist Alice Bodkin believes jewellers should factor in<br />
the important role emotion plays within the consumer journey.<br />
“How does the brand want the consumer to feel? Excited, uplifted, educated?”<br />
Bodkin asks. “By reflecting upon this, the retail space can be created to achieve<br />
an emotive context that nurtures a memorable and lasting impression.”<br />
Carol Bagaric, founder of visual merchandising consultancy Carol B, has similar<br />
sentiments. “As a jewellery purchase is often made with the heart and not the<br />
mind, it is imperative that the environment within a jewellery store speaks to<br />
this type of purchasing behaviour,” Bagaric says.<br />
“Lighting, seating, ambience, store fit out, layout, graphics and signage – and<br />
staff! – should all be conducive to entertaining and indulging the customer as<br />
they make some of the biggest and most emotional purchases of their lives. It’s<br />
a special purchase and a very personal one; therefore, the store should reflect<br />
this type of environment.”<br />
On that note, <strong>Jeweller</strong> has collated some of the world’s most intriguing jewellery<br />
stores and asked those involved in the design to shed light on how it has been<br />
used to create a shopping environment that leads to sales. Not all retailers will<br />
have the budget for a major store revamp; however, there is certainly value in<br />
gaining inspiration and analysing where potential improvements could be made,<br />
even if that simply means giving the walls a fresh coat of paint.<br />
26 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
Andrés Gallardo<br />
Name: Pablo Limón<br />
Position: director of architecture,<br />
Savvy Studio<br />
Country: Spain<br />
When did the store open? The store was inaugurated in May 2014.<br />
Who is the target market and how did they influence the store design?<br />
Andrés Gallardo is quite an established and well-known jewellery designer,<br />
so the target audience was for those who wanted to explore the brand in<br />
a more intimate setting. That is the reason we combined the showroom<br />
with the workshop – we wanted to create something experimental so we<br />
decided to really focus on creating a design that is mobile and flexible.<br />
Creating modular pieces using materials such as marble and wood was a<br />
way to change the layout of the store easily and as often as desired.<br />
Alessa Jewelry<br />
Name: Alessandra Robles<br />
Position: designer and co-founder, Alessa Jewelry<br />
Country: Guatemala<br />
When did the store open? We opened our store in August 2015.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage sales? One of<br />
the main things we focused on was the use of strong materials to coincide<br />
with the bold aesthetic of the jewellery. The use of wood and marble<br />
against the jewellery is clear and to the point. The mobility and modular<br />
characteristics are a physical reflection within the store of the layers to the<br />
pieces created by Andrés. All small display pieces allow the jewellery to be<br />
displayed vertically and horizontally, creating a sense of flexibility in the<br />
way the jewellery is displayed. It is not only about displaying the jewellery<br />
but also activating the space.<br />
What is the store design’s ‘wow’ factor? The wooden boxes that<br />
can be pulled out were the key pieces for us. They are the most convivial<br />
and simple but the most impactful. They create a sense of unveiling<br />
for the customer.<br />
Who is the target market and how did they influence the store design?<br />
The Alessa woman is curious, fashionable, vibrant and modern. She is<br />
worldly and connected and looks for great design and craftsmanship.<br />
Our purpose is to offer a luxury jewellery experience through minimal,<br />
versatile and modern designs that are key influencers seen through the<br />
design of the store.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage sales?<br />
The store has an airy aesthetic with pastel tones, soft curves and geometric<br />
golden features where the consumer can shop in a cosy environment.<br />
From custom-made wood furniture and cushioned seats to the beverages<br />
and surprises that we offer – the store ambience is a balance between<br />
minimalistic and edgy, achieved through a mix of organic and natural<br />
materials. We also have a customised bamboo store scent, which is<br />
reminiscent of a journey in paradise, a journey not to be easily forgotten.<br />
What is the store design’s ‘wow’ factor? The artisanal curtain made by<br />
local women from Guatemala. Alessa loves to empower underprivileged<br />
women and helps to provide better lives for them. What this rope curtain<br />
represents is the hard and creative work of artisanal women who Alessa<br />
values, admires and supports.
Baccio <strong>Jeweller</strong>s<br />
Name: Rod Faucheux<br />
Position: director, Loopcreative Studio<br />
Country: Australia<br />
When was the renovated space completed? February 2015.<br />
Who is the target market and how did they influence the store design?<br />
There is no particular age demographic; however, the clientele shopping<br />
at Baccio come seeking pieces that are both timelessly modernistic and<br />
individualised. We needed to design a space offering a unique setting<br />
where those ideals and characteristics could be easily seen. Baccio has<br />
been in business for more than 40 years so we needed to make sure the<br />
new store design felt natural to existing clientele, whilst still inviting new<br />
shoppers to discover the brand.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage sales?<br />
Baccio specialises in bespoke jewellery and engagement rings, so it’s<br />
only natural that we should design an interior that is sensitive to what<br />
is being created inside the space. A potential consumer feels<br />
immediately confident approaching the store, viewing the beautiful<br />
jewellery-like façade, brass cantilevered counters and Italian marble<br />
flooring. The customer can immediately sense that the materials are<br />
stylish, contemporary and impeccable in quality. The store itself is a<br />
crafted, unique piece of art, just as the handmade jewellery it retails.<br />
What is the store design’s ‘wow’ factor? The shop front façade is the<br />
element that really draws you in with its dramatic, iconic and elegant<br />
appeal. The façade concept was influenced by a necklace that the owner,<br />
Mario Zamel, had in the store. We mimicked the geometric shape of the<br />
necklace throughout the steel work and suede-lined display boxes in<br />
the shop front. The metal mesh curtain layered behind the contrasting<br />
framework feels like the skin behind the necklace and warms up the<br />
visual hardness that the steel work implies.
Butani<br />
Name: Stefano Tordiglione<br />
Position: creative director, Stefano Tordiglione Design<br />
Country: Hong Kong<br />
SamsGroup.com.au<br />
ssales@samsgroup.com.au<br />
02 9290 2199<br />
When was the renovated space completed? The space was renovated in 2015.<br />
Who is the target market and how did they influence the store design? The Peninsula is one of the top<br />
luxury hotels in Hong Kong. The visitors and guests are affluent with fine taste of quality; they travel a lot<br />
and have a good understanding and exposure to luxury life. The aim is to make an elegant and high-end<br />
boutique to attract these customers.<br />
With the relationship between store ambience and consumer purchasing in mind, which features in the<br />
store encourage sales? As most of the customers are women (obviously), it was important to create a warm<br />
and welcoming space so customers could relax. The overall brown/beige colour is comfortable in leather,<br />
wood and metal. A large piece of marble is used at the façade to highlight the luxury of space. The secret of<br />
making the space comfortable also lies in the use of thick carpet – every woman knows how good it feels to<br />
walk on thick carpet after a long day of shopping.<br />
What is the store design’s ‘wow’ factor? The use of mirror and reflective materials; the shape of our boutique<br />
is narrow and long, which made the design challenging. We have incorporated mirror and mirrored-finished<br />
materials to enlarge the space.<br />
Denovo Diamonds<br />
Name: Caryll Martinez<br />
Position: creative director, Denovo Diamonds<br />
Country: Philippines<br />
When did the store open? The Denovo Diamonds flagship<br />
store opened in June 2016.<br />
Who is the target market and how did they influence the store design?<br />
Our target market is men. Specifically, men who buy jewellery for<br />
women, whether it is for proposals, weddings or anniversaries.<br />
Denovo Diamonds developed a unique store design that is sleek<br />
and architectural so that men passing by would gravitate towards<br />
our store and would not feel intimidated when they walked in.<br />
We don’t want just to sell product; we want consumers to have a<br />
memorable experience.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage<br />
sales? Denovo’s store design deviates from the natural norm<br />
of a jewellery store where one would find its staff behind glass<br />
counters. This little change allows more interaction between the<br />
customer and our jewellery consultants, making the sales process<br />
less overwhelming. There is a consultation area at the back of the store where<br />
clients can sit in privacy. We also see diamond jewellery as comparable to art in<br />
that the jewellery is displayed and laid-out in a way that resembles an art gallery,<br />
contributing to our very unique and luxurious store ambience.<br />
What is the store design’s ‘wow’ factor? The definite ‘wow’ factor in our store<br />
is the three-dimensional walls that have black glass mounting with white,<br />
triangular light boxes. These resemble the facets of a diamond and the black<br />
glass accents the white showcases to draw the consumer’s eye to the products.
X FACTOR<br />
FOR ALL PLAIN BANDS<br />
Hirsch <strong>Jeweller</strong>y<br />
Name: Lone Visby Olsen<br />
Position: co-owner, Ehlers & Visby Metal Design Studio<br />
Country: Denmark<br />
When did the store open? Hirsch <strong>Jeweller</strong>y opened its doors in<br />
September 2015. Since then, we [myself and husband and co-owner<br />
Jan Ehlers] have continued cooperating with the business whenever<br />
new needs or ideas arise. It is definitely an on-going collaboration.<br />
Who is the target market and how did they influence the store<br />
design? Hirsch <strong>Jeweller</strong>y is mainly aimed at people looking for a<br />
piece of jewellery that matters and will last forever. Customers are<br />
inspired by creative, innovative design. They demand jewellery<br />
made of honest and exclusive materials. They perceive themselves<br />
as unique, creative and interested in design and the décor should<br />
reflect this. Ehlers & Visby specialises in contemporary retail design,<br />
handmade from luxury-recycled materials, primarily consisting of<br />
naturally-patinated iron and metals with rough, textured surfaces.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage sales?<br />
Storeowner Susanne Rosenberg agrees that it is a combination of<br />
the surroundings, good service and, of course, the jewellery. If she<br />
had to choose a décor detail that encourages consumers to make a<br />
purchase, it would be the vitrine consoles that exude exclusivity and<br />
good craftsmanship.<br />
ORDER IN THE MORNING.<br />
since 1966<br />
PAY IN FULL.<br />
TWM<br />
DISPATCH SAME DAY.<br />
Co<br />
What is the store design’s ‘wow’ factor? We asked the storeowner<br />
to nominate one ‘wow’ factor and she promptly said: “The vitrine<br />
consoles and, in a sharp second-place, the new outdoor landmark<br />
sign.” It is our prime task to make bespoke furniture that the<br />
customer desires so, for our own sake and for the sake of the<br />
company, this is the furniture of which we are most proud.<br />
since 1966<br />
since 1966<br />
TWM<br />
TWM<br />
Co<br />
PROUDLY AUSTRALIAN MADE JEWELLERY & EXPERTS IN REFINING<br />
TWM<br />
since 1966<br />
Co<br />
TWM Consolidated PTY LTD<br />
03 9547 3113<br />
65 Roberts Avenue,<br />
Mulgrave, VIC, 3170<br />
Contact info@twmco.com.au<br />
www.twmco.com.au<br />
Instagram @twm_co<br />
Facebook @twmcorings<br />
Boston Offices:<br />
333 Washington St, Ste 521, Boston MA 02108, United States
Luxe by Hugh Rice<br />
Name: Lloyd Blakey<br />
Position: founder and creative director, Innovare Design<br />
Country: England<br />
When did the store open? The store was completed in October 2016.<br />
Who is the target market and how did they influence the store<br />
design? Buyers of fine jewellery and Swiss watches who are<br />
predominantly local to the East Yorkshire region. The market is<br />
discerning and demands high service levels as well as un-rushed<br />
private consultation. This drove the store layout and we opened up<br />
the space to allow for more discreet consultations and to facilitate<br />
a high-end boutique feel.<br />
With the relationship between store ambience and consumer<br />
purchasing in mind, which features in the store encourage sales?<br />
The store design needed to provide the perfect showcase for the<br />
luxury jewellery and watches on display. We opened sight lines<br />
by removing walls and accentuating the new spacious feel with a<br />
lime-washed oak herringbone plank floor bordered by a sumptuous<br />
silver-grey carpet. Lighting plays an important part in creating the<br />
right ambience – we introduced dramatic, glittering chandeliers<br />
in the entrance atrium to herald a sense of arrival. Elsewhere,<br />
delicate cut-glass pendants provide focus and intimacy over private<br />
consultation desks.<br />
What is the store design’s ‘wow’ factor? It’s difficult to extract one<br />
element as everything is designed to work together; however, with<br />
high levels of service at the heart of Hugh Rice’s success, I think<br />
the private-consultation areas are a favourite of mine – the luxury<br />
detailing, the warm light from the cut-glass pendants and the<br />
modular wall-panel display that accommodates key promotions<br />
and hero pieces all come together beautifully. i
GEMSTONE FACETING<br />
High-quality<br />
FACETING<br />
is the way of the future<br />
SPESSARTITE BY DMITRY STOLYAREVICH<br />
THE COMMERCIAL REALITIES OF GEM-CUTTING MEANS<br />
THERE IS LITTLE EMPHASIS PLACED ON HIGH-QUALITY<br />
GEMSTONE FACETING. VICTOR TUZLUKOV DISCUSSES WHY<br />
THIS IS DETRIMENTAL TO THE INDUSTRY AND ITS FUTURE.<br />
oday there are not many well-faceted gemstones on the market.<br />
Aiming to obtain as great a carat yield as possible from an<br />
irregular piece of rough, using various methods to squeeze one<br />
of several classic cuts out of the gemstone while bypassing visible<br />
inclusions at the expense of symmetry, a gem-cutter aims to give<br />
a gemstone a finished look.<br />
Since each carat is real money, gem-cutters and sellers shut their eyes to optical<br />
defects. As a result, most gemstones that leave the hands of these gem-cutters<br />
have a ‘window’ in which any objects in a gemstone become visible. The area<br />
around the window looks dark, hence it reflects the surroundings, and the angle<br />
of the side facets near the girdle is too big. Such an approach to gem-cutting<br />
has become the norm.<br />
This is curious because the main task of a gem-cutter is not to make a gemstone<br />
more beautiful with a desire to save its weight but to make it heavier with a<br />
desire to save its beauty; however, the high price of gemstones is caused not<br />
just by their rarity but mainly by their beauty – a commercial component always<br />
prevails over aesthetics.<br />
PRICING SEGMENTATION OF GEMSTONES<br />
There was a time when the status of a person was characterised by the weight<br />
of gold hanging on him or her. Sometimes, even now, simple gold jewellery is<br />
sold by weight; however, wealthy people are drawn to the refinement and the<br />
originality of the design, the harmony and beauty of jewellery, the perfection<br />
and the accuracy of its craftsmanship.<br />
There are four main price categories on the market: low-quality (mass)<br />
manufacturing, high-quality (luxury) industry, famous brands and<br />
exclusive masterpieces. Prices increase by some five to 10 times from<br />
category to category.<br />
We live in interesting times; improvements in faceting equipment enable us to<br />
make a qualitative leap in gem-cutting and advance from the level of handicrafts<br />
to art. It is no secret that each step is not easy to undertake. One of the biggest<br />
obstacles is the barrier in the public consciousness. To be precise, the step from<br />
just a ‘jewellery insert’ that will vary from a brooch or a ring to the high-level<br />
term ‘gemstone’ for which the same ring will serve as a mounting underlining<br />
its beauty and magic. In other words, the most important aim of cutting is<br />
displaying the beauty of a gemstone.<br />
In Asia, we hear about names such as Nomad, Yavorsky, Leopard Gems and<br />
so on. In Europe, masters from Idar-Oberstain traditionally set the pace and<br />
they are followed in the New World by the bright masters, among whom we<br />
find John Dyer, Michael Dyber, Jeff White, Dalan Hargrave, Tomohiro Karino<br />
and Stephen Kotlowski.<br />
32 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
Brands do not appear from nothing,<br />
especially when appearing in different<br />
parts of the world simultaneously, and their<br />
appearance reflects market tendencies.<br />
In this case, we can speak about the<br />
much higher growth of prices for wellpolished<br />
gemstones in comparison with<br />
commercially-faceted gemstones. When<br />
this price difference exceeds the cost of<br />
rough losses as a result of high-quality<br />
polishing then faceting becomes profitable.<br />
All gemstone market participants know<br />
that it is becoming more difficult to sell<br />
commercially-faceted gemstones – badly<br />
polished, to put it bluntly – and often it is<br />
becoming necessary to recut ‘barrel-shaped’<br />
gemstones that have a bulgy pavilion.<br />
You may hear the following opinion: if a<br />
gemstone is precise, symmetrical, perfect,<br />
it becomes faceless and that some small<br />
defects are necessary to bring the charm of<br />
peculiarity to a gemstone. I consider that<br />
the originality of a gemstone is a<br />
combination of material, colour, clarity,<br />
size, polishing and optical characteristics…<br />
but defects? No way. It is hard to consider<br />
a face with a squinting eye or a droopy<br />
nose charming. These are excuses for those<br />
who don’t want or cannot make highquality<br />
gemstones and those for whom it is<br />
convenient to use what the market offers.<br />
ADVANTAGES OF FACETING PROPERLY<br />
No matter how convenient it is for dealers<br />
and jewellery manufacturers to use outdated<br />
standards to justify low-quality faceting,<br />
higher prices are demanded for the bestquality<br />
faceting and there are always buyers<br />
who are ready to pay more.<br />
So what is the value of high-quality cutting?<br />
First of all, high-quality gem cutting ensures<br />
the perfect flatness of facet surfaces that<br />
increase a gemstone’s ‘fire’ due to virtual<br />
prisms formed by the facets. I have actually<br />
observed good fire even in pieces of quartz<br />
if they are faceted with high quality.<br />
Fire produces inimitable sparkle – light<br />
patches of colour different from the<br />
main colour of a gemstone – and is one<br />
of the most considerable advantages of a<br />
faceted gemstone.<br />
The second advantage that is directly bound<br />
with the first one is sharp edges between<br />
facets. When edges such as a knife blade<br />
don’t reflect light, the gemstone looks ‘wet’<br />
– each facet reflects light in its own way and<br />
the shining edges don’t attract attention.<br />
Thirdly, strict symmetry makes a gemstone<br />
more harmonious and pleasant to view.<br />
One gemstone amateur expressed it thusly,<br />
“I buy beautiful gemstones to admire and<br />
enjoy them but when I notice inaccuracy<br />
instead of happy contact with the gem,<br />
I think to myself, ‘How could a negligent<br />
gem-cutter spoil such beauty?’”<br />
Fourthly, the main colour of the gemstone<br />
is better seen when there is no window in<br />
it as the background doesn’t interfere with<br />
the perception. Finally, the fifth advantage,<br />
which may influence gemmological<br />
characteristics together with the fourth one,<br />
is the absence of a grey compound of colour<br />
appearing when light diffracts on surface<br />
defects. This factor may increase visible<br />
colour saturation up to one grade on the<br />
Gemological Institute of America (GIA) scale.<br />
IMAGE COURTESY: DMITRY STOLYAREVICH<br />
IMAGE COURTESY: SERGEY PRYANECHNIKOV
The last statement needs<br />
explanation because it is<br />
very important.<br />
IP026P-9YG<br />
IP011E-9YG<br />
GENUINE<br />
CULTURED<br />
PEARLS<br />
SAMPLE OF AUTHOR’S CERTIFICATE WITH<br />
CUT GRADING BY VICTOR TUZLUKOV<br />
Polishing leaves<br />
scratches on the surface<br />
of a facet comparable<br />
with the size of used<br />
abrasive. The density<br />
of such scratches is<br />
usually high and the<br />
surface becomes<br />
‘glossy’ when light<br />
goes away from it.<br />
The explanation is<br />
partial light diffusion<br />
reflected by the uneven surface at different angles. The more the<br />
surface is uneven, the more diffusion it produces. The surface is not<br />
lit regularly under such deflection of light waves because the dark<br />
surrounding objects are visible in the light background of reflection<br />
in some microscopic areas.<br />
I used to hear, “Who needs perfect polishing and exact meeting<br />
points? Nobody will see it anyway!” This is not correct. The human<br />
eye is a perfect optical instrument that sees many details our brains<br />
don’t realise but which influence the level of sub-consciousness<br />
to create an impression. It may happen that one of two similar<br />
gemstones would not attract attention while the second is one you<br />
would like to take in your hands and never leave. This is the way we<br />
respond to a gemstone’s harmony. Harmony and its consequence –<br />
the impression – are sufficient reasons for increasing the price.<br />
IP339R<br />
IP068NSS<br />
www.ikecho.com.au<br />
BOOSTING VALUE THROUGH BETTER CERTIFICATION<br />
Let’s look at the difference that faceting can make to a gemstone’s<br />
price. At a gemstone show, one may find wonderful pieces of citrine<br />
or amethyst for just US$2-US$3 per carat. The same size, colour<br />
and clarity gemstones faceted by John Dyer, for example, will cost<br />
US$20-US$30 per carat. If the price of the first one is close to the<br />
cost of the rough gemstone then we can subtract it from the cost<br />
of the second one and get the difference. Even if half of this amount<br />
is due to the brand name then another half is the cost of work – this<br />
is neither more nor less than triple the price of the rough! Certainly,<br />
for the very expensive gemstones, the ratio will be different but the<br />
cost of faceting will depend on the price of a gemstone – it’s the<br />
charge for responsibility and the risk of dealing with an expensive,<br />
rough gemstone.<br />
Nowadays the quality of faceting is not shown in gemstone<br />
certificates. Though GIA and other gemstone laboratories have<br />
developed systems of grading cuts, they prefer not to draw attention<br />
to it as they don’t want to reduce the appeal of the gemstone to<br />
customers. As far as I know, only the IGE (Spanish Gemological<br />
Institute) states the quality of faceting in its certificates.<br />
All of us realise that the best-quality and most-expensive gemstones<br />
that usually undergo certification are faceted and that they are of<br />
much lower quality than masterpieces by real gemstone artists.<br />
It is necessary to understand the criteria for evaluating the quality of<br />
+61 2 9266 0636 +61 2 9266 0969 enquiries@ikecho.com.au
GEMSTONE FACETING<br />
faceting. I will not explain the existing cut-grading systems as readers<br />
may know them even better than me but I would like to identify<br />
the main principle common to all of them: cut-grading systems are<br />
based on comparing items with certain characteristics accepted<br />
as standard to find deviations from the norm. Such characteristics<br />
include gemstone shape, proportions, symmetry and finish. The<br />
possible variety of faceting designs provided by the shape of the<br />
crystal or the creativity of the cutter are not taken into consideration.<br />
If we speak about unique faceting designs that have nothing to<br />
do with standard forms, another approach is needed to evaluate<br />
the quality of gem cutting. Let’s look at an example to understand<br />
this better.<br />
Some readers may be already familiar with the trend of gemcutting<br />
in which I took my first steps: ‘Philosophical stone’. Its<br />
essence is developing special, unusual faceting designs followed<br />
by explanations that become the bearers of philosophical ideas,<br />
creating a row of associations in the consciousness. A gemstone<br />
contains one or several symbols in its pattern, either in graphical or<br />
numerological format. These symbols provide the ‘key’ for opening<br />
the row of associations.<br />
There is a pattern in the ‘Drop of Compassion’ gemstone (See image<br />
below). It has the shape of a wide drop limited by spirals of the<br />
golden section from both sides. At the bottom of the gemstone,<br />
there is a triangle showing the way to the infinity, a point where<br />
the selfishness of a man disappears in the Great Compassion to all<br />
beings. Rays coming from all sides to this point support the optical<br />
perspective. From above, three descending arches symbolise three<br />
stages that a man who has chosen this way should come through<br />
one by one. These stages are common for all devotees of spirit:<br />
Cognising, Renunciation and Transformation. This is the way of<br />
Christ, the way of Buddha, the way of all teachers of humanity.<br />
We can talk more about philosophy but now let’s turn to evaluation<br />
of faceting quality by the GIA grading system. Having the<br />
qualification of GG – GIA Graduate Gemologist – I’ve attempted to<br />
do this myself. There are three criteria – brilliance, proportion and<br />
finish – and everything is clear with two of them. We’ll examine<br />
the most complicated one, consisting of numerous sub-criteria<br />
(proportions). The shape of the Drop of Compassion resembles<br />
CITRINE ‘DROP OF COMPASSION’.<br />
IMAGE COURTESY: DMITRY<br />
STOLYAREVICH<br />
SAMPLE OF MARKING BY<br />
PLASMAMARK TECHNOLOGY. IMAGE<br />
COURTESY: SERGEY PRYANECHNIKOV<br />
WWW.CUDWORTHENTERPRISES.COM
GEMSTONE FACETING<br />
143 London cct.<br />
Bailey's Corner<br />
Shop 33<br />
Bailey's Arcade<br />
Canberra. ACT, 2601<br />
a pear but how many deviations has it<br />
from a standard form? Ratio length/width,<br />
absence of table facet, position of culet,<br />
wings and bulges are a few. In short, strictly<br />
following the approach of the GIA, I had<br />
to grade proportions of this gemstone as<br />
Fair. The general grade turned out to be:<br />
Excellent – Fair – Excellent. What do you<br />
think of it?<br />
When I make my author’s certification, I use<br />
another system of cut grading that I have<br />
developed myself (See sample of certificate<br />
on page 34). It does not pretend to be the<br />
worldwide standard of tomorrow but it is an<br />
attempt to eliminate limitations in the shape<br />
of the gemstone, concentrating attention on<br />
the quality of the faceting itself. This system<br />
examines the gemstone not as a whole but<br />
mostly as a complex of separate pattern<br />
points, including facets, edges and meeting<br />
points of four or more facets.<br />
It certainly takes account of any undesirable<br />
optical effects produced by the faceting,<br />
such as ‘window’ and ‘extinction’, as well as<br />
the symmetry of facets specified by the<br />
design. The result is expressed in a 100-point<br />
scale to within the fourth decimal digit.<br />
In addition to numerical grades, I have<br />
divided faceting into quality classes: 0-60 is<br />
Commercial; 60-95 is Quality; 95-100 is Elite<br />
Class. Each class is divided into three subclasses<br />
and the highest cut quality of Elite<br />
Ideal should receive a grade of more than<br />
99 points out of 100 possible.<br />
Gem cutting of the Elite Class is almost absent<br />
on the market today. Not because there is<br />
no one who buys it but because of the high<br />
price. Most markets, including jewellery,<br />
have niches for products of different price<br />
categories that may look almost the same.<br />
The compliance of a gemstone with any one<br />
quality class may be proved by traditional<br />
methods – reports and certificates – as well<br />
as uncommon ones like marking the surface<br />
of a gemstone. This technology has been<br />
developed by our specialists recently (See<br />
image on page 35). Unlike other methods<br />
such as the ForeverMark, in which a part of<br />
the surface is graphitised by the ion beam<br />
then etched to leave a relief image, particles<br />
of plasma in our technology penetrate into<br />
the surface layer of the gemstone to leave<br />
the surface undamaged. This process simply<br />
changes the optical density locally. Therefore,<br />
the reflective index is changed and the image<br />
becomes visible when the facet reflects light<br />
from an external source. The brightness of<br />
the mark depends on the plasma activity –<br />
it may vary from visible to almost invisible,<br />
meaning it can be seen only by breathing<br />
on the surface.<br />
The weak point of certification is the<br />
impossibility of proving that a certificate<br />
belongs to a certain gemstone, especially<br />
where standard cutting is concerned.<br />
Photos in the certificates are not appropriate<br />
for identification as well as to confirm<br />
dimensions and carat weight. Hence, an<br />
almost invisible mark that does not cause<br />
any damage to the gemstone and does not<br />
influence its gemmological characteristics<br />
may become the most convenient means<br />
for identification of a certified gemstone.<br />
What is left to say in conclusion? Evolution<br />
is inexorable. We may ignore its laws or even<br />
try to move against them but we won’t<br />
withstand long in the conditions of tough<br />
competitive fighting on the developing<br />
market; however, a player of foresight<br />
takes into consideration these laws and<br />
forecasts further market trends. We live in a<br />
unique time when all faceting conditions<br />
have matured. Today there are not many<br />
well-faceted gemstones on the market but<br />
tomorrow, gemstones with the highest cutquality<br />
will occupy a market niche.<br />
I dare say that those who are brave enough<br />
to pursue quality in faceting and grading<br />
will make history. i<br />
Edited from original article courtesy of InColor.<br />
VICTOR TUZLUKOV<br />
graduated from the GIA<br />
Moscow branch with<br />
a diploma of Graduate<br />
Gemologist and has been<br />
a member of the United<br />
States Faceters Guild since 2006. Tuzlukov<br />
founded the Russian Faceters Guild in 2010<br />
and he is currently engaged in the creation<br />
of new faceting designs. He also participates<br />
in national and international faceting<br />
competitions and won the International<br />
Individual Faceting Championship in Australia<br />
in 2010 with a score of 299.17 points out of 300.<br />
www.stellatimepieces.com
When you open your eyes<br />
it’ll be 2018 – time to book your space at<br />
Australia’s number one jewellery event.<br />
pms 2935 C<br />
pms 2935 C<br />
August 25 > 27, 2018<br />
International Convention Centre Sydney, Darling Harbour<br />
Contact: Mary-Anne Brown<br />
Telephone: +61 2 9452 7513<br />
Email: maryanne.brown@expertiseevents.com.au<br />
Organised by
Completing my Diploma in<br />
Gemmology has benefited<br />
me as a jeweller in more<br />
ways than I ever expected.<br />
I have always had an interest<br />
in gemstones and found<br />
the course was not only<br />
informative and challenging<br />
but immensely rewarding.<br />
Studying with the GAA has also<br />
allowed me to meet like-minded<br />
people from many facets of the<br />
jewellery industry and grants me access<br />
to resources that I will continue to use<br />
throughout my professional career.<br />
Emma Meakes FGAA<br />
<strong>Jeweller</strong>, John Miller Design - WA<br />
Diploma in<br />
Gemmology<br />
Enrolments now open<br />
For more information<br />
1300 436 338<br />
learn@gem.org.au<br />
www.gem.org.au<br />
Be<br />
Brilliant<br />
Gem-Ed Australia<br />
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY<br />
Passionately educating the industry, gem enthusiasts<br />
and consumers about gemstones
BUSINESS<br />
THE MERITS OF A MORNING MEETING<br />
Driving a team to reach a shared goal<br />
requires owners to know what they want<br />
and what they need to do to get there.<br />
DAVID BROWN explains why a daily<br />
morning staff meeting is one of the best<br />
resources to bring to a business.<br />
Morning meetings are often one of the<br />
hardest initiatives to implement. To benefit<br />
from them, managers should always plan<br />
an agenda that details the team’s objectives<br />
for the day.<br />
Stick to the plan and lead by example –<br />
be punctual, professional, enthusiastic<br />
and always follow through on any tasks.<br />
The main role of management is to coach;<br />
to encourage staff to be better today<br />
than they were yesterday. Remind them<br />
that even the best athletes have coaches.<br />
Athletes realise that the greatest threat to<br />
their success is complacency.<br />
Set the morning meeting to commence 15<br />
minutes before store opening. That sounds<br />
short but the meeting is intended to inform,<br />
enlighten and reinforce the four attributes<br />
all top salespeople need:<br />
• An outstanding attitude<br />
• A great technique<br />
• Consistent application<br />
• A love of selling<br />
It’s also a great idea to make one meeting<br />
a week light, fun and personal.<br />
TIPS FOR A BETTER MEETING<br />
1. Review and update monthly and daily<br />
budgets – the likelihood is that the team<br />
will either be ahead of budget for the<br />
month or behind.<br />
If the daily budget has just been achieved,<br />
give praise and encouragement such as,<br />
“If we could do it yesterday, we can certainly<br />
do it today. Does everyone believe that<br />
today’s budget is achievable? Are we<br />
working on any special orders that need to<br />
be followed up? What about layby payments<br />
and repairs?”<br />
If the team is ahead of budget, project<br />
what the store is on track to achieve by the<br />
end of the month and offer an extra team<br />
incentive if they reach it. For example, say,<br />
“Our budget for the month is $50,000 but<br />
THE MAIN ROLE<br />
OF MANAGEMENT<br />
IS TO COACH;<br />
TO ENCOURAGE<br />
STAFF TO BE<br />
BETTER TODAY<br />
THAN THEY WERE<br />
YESTERDAY<br />
after 10 days we’re on track to hit $60,000. If we<br />
achieve $60,000, and we know we can because<br />
we’re already doing it, there’s an extra $1,000<br />
team bonus on offer.” At a 55 per cent margin,<br />
the business is still $4,500 better off.<br />
If the team is behind budget, discuss how<br />
many sales are needed to get back on track.<br />
Knowing this amount and discussing with staff<br />
‘how’ it is going to be reached can help teams<br />
to refocus on the sales they require.<br />
Sometimes a salesperson will ask a tricky<br />
question. To keep the meeting moving forward,<br />
managers should consider firstly if the question<br />
is relevant and secondly whether they are<br />
qualified to answer it. That is, if the question<br />
points to an issue that the business hasn’t faced<br />
since 1983, refer the question to a later date.<br />
This meeting is really about daily targets.<br />
Secondly, if management doesn’t know the<br />
answer, don’t answer. Note the question for<br />
follow-up at a later date.<br />
2. Enrol the team (selling not telling) – just<br />
as staff should aim to close a sale every time<br />
they make a sales presentation, management<br />
needs to sell the team on ideas discussed<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 39
BUSINESS<br />
during meetings. Ask staff members three<br />
questions and then ask for their 100 per<br />
cent commitment and support.<br />
• Do staff agree that this is an area in which<br />
we can all improve?<br />
• Can you see that doing this consistently<br />
will help provide a better service to<br />
customers and increase sales?<br />
• Do staff consider this to be important?<br />
• Can the business rely on staff to give total<br />
support and commitment?<br />
3. Motivation and clarity – be a positive<br />
and enthusiastic manager. Be aware of good<br />
sales from the previous day and publicly<br />
praise performance. Ask for feedback on<br />
any ‘magic moments’ and then get excited<br />
by them.<br />
Ask whether anyone felt they got a sale<br />
yesterday because of a specific company<br />
policy. Get feedback on what is working and<br />
how the team can make these policies even<br />
more powerful.<br />
4. Reinforce the basics – choose a sales<br />
technique upon which to focus. Once the<br />
team has enrolled on a particular technique,<br />
follow up with them to see that they are<br />
using that technique every single time,<br />
whether they feel like it or not. Only move<br />
to the next technique when confident that<br />
the team is at this stage.<br />
Don’t forget the little things: ensure staff see<br />
customers before customers see staff; strive<br />
to create magic moments for customers;<br />
ensure customers are always right; add value<br />
to products rather than discounting prices.<br />
Always remember that 80 per cent<br />
of customers want value for money.<br />
5. Introduce product – advise the sales<br />
team of any new items that have arrived in<br />
store since the previous day’s meeting, and<br />
where they are displayed. Discuss any price<br />
changes on fast or slow sellers.<br />
6. Review future sales – review the request<br />
sheet from the previous day, which consists<br />
of all enquiries staff received that they<br />
weren’t able to close. Choose a few items<br />
from the list and discuss them.<br />
Ask questions such as, “I see we had a lady<br />
looking at a $2,000 ring yesterday who then<br />
opted to look around instead. What do you<br />
feel was the main reason she didn’t buy<br />
from us yesterday? Does anyone think there<br />
was anything we could have done, said or<br />
offered her to help her make a decision?<br />
What are we going to do differently today<br />
as a result of what we learned yesterday?”<br />
The main reasons customers walk out<br />
without buying are usually because<br />
jewellers don’t have the right products,<br />
because customers want to shop around,<br />
because customers want to talk to their<br />
partners first or because customers don’t<br />
feel the item represents value for money.<br />
Discuss with staff what can be done to<br />
overcome these objections.<br />
7. Discuss the average sale – is the average<br />
sale for the month up or down from the<br />
budgeted average sale value? Why do staff<br />
feel this is happening? Does the team need<br />
to push higher-priced product to boost the<br />
sales average?<br />
If so, urge the team to concentrate on this<br />
by showing customers the best items in<br />
store first. Remind the team that addedvalue<br />
services are there to help. Is there<br />
anything staff can do to increase the<br />
average sale?<br />
8. Review old stock – choose an item of old<br />
product in each category, such as diamond<br />
rings, silver bracelets, gem-set rings or<br />
watches, and discuss with staff during one<br />
meeting a month why these items haven’t<br />
sold? Is there something staff can do<br />
with the items that will make them more<br />
saleable? Perhaps make it a lower setting or<br />
add a shoulder diamond to a ring to give it<br />
more appeal?<br />
For the next week, insist that every<br />
customer who comes in looking for a gold<br />
chain should be shown old stock first.<br />
Remind the team that a business can’t get<br />
new stock until old stock has sold. If this<br />
means providing a discount or meeting a<br />
customer’s price point then this might be<br />
acceptable but remind staff to discount only<br />
as a last resort.<br />
Remember to follow up by asking, “How<br />
many times did we show these items<br />
yesterday and what was the feedback?”<br />
9. Show attention to detail – a retail<br />
jewellery store is as prestigious as a five-star<br />
hotel in that shoppers expect the best. It’s a<br />
luxury shopping experience after all so staff<br />
OVERCOME THIS<br />
BY APPLYING THE<br />
MEETING ONLY<br />
TO THOSE WHO<br />
ARE WORKING<br />
ON THAT DAY<br />
AND KEEP<br />
MINUTES FOR<br />
ABSENT STAFF<br />
should be friendlier, the store should<br />
be cleaner and the product should be better<br />
than competing jewellery stores.<br />
Managers should encourage the team<br />
to display extremely high standards. This<br />
includes paying strict attention to dress<br />
standards, store cleanliness, carpets, signs,<br />
lighting and all other factors that make up<br />
first impressions. During slow times, invite<br />
team members to enter the store with ‘fresh<br />
eyes’ as a customer would. Allow them to be<br />
critical. Do they think the store measures up?<br />
Does all stock have a clean, easy-to-read<br />
ticket? Is the inventory itself clean and well<br />
lit, displayed straight in cabinets? Do staff<br />
have name badges? Do they need them?<br />
What music is playing? Is the in-store<br />
ambience perfect?<br />
10. General business – at the conclusion of<br />
each daily meeting, allocate time to deal<br />
with other general matters such as repairs<br />
and rosters.<br />
11. Manage the process – be sure to keep<br />
control of the meeting and stay focused on<br />
one issue at a time. The goal is to inform and<br />
motivate so be well prepared and don’t go<br />
over the allotted time.<br />
One of the biggest reasons managers don’t<br />
hold morning meetings is because staff<br />
often start at different times and on different<br />
days. Overcome this by applying the<br />
meeting only to those who are working on<br />
that day and keep minutes for absent staff<br />
to review and discuss as soon as they return<br />
to work.<br />
Even if only 50 per cent of staff are present,<br />
the team will benefit from the meetings.<br />
Bigger issues can be addressed in monthly<br />
meetings that all staff attend.<br />
Don’t let barriers be an excuse. Initiate<br />
regular morning meetings today. Those<br />
who have done it can testify to the benefits<br />
and it’s a habit that managers are likely to<br />
continue once initiated. i<br />
DAVID BROWN is<br />
co-founder and business<br />
mentor of Retail Edge<br />
Consultants. Learn more:<br />
retailedgeconsultants.com<br />
40 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
SELLING<br />
SELLING WHAT’S IN STOCK… OR NOT.<br />
SHOWING PRODUCT THAT ISN’T IN STOCK IS A QUICK WAY TO DISAPPOINT CUSTOMERS; HOWEVER,<br />
DOUG FLEENER SAYS IT CAN STILL BE DONE AS LONG AS SALESPEOPLE APPROACH IT IN THE RIGHT WAY.<br />
A salesperson recently asked me if selling<br />
only what the store has in stock is good<br />
service. When I asked for details, she<br />
elaborated that her manager had instructed<br />
staff that they were only to show and sell<br />
what was in the showcases and in stock.<br />
Some staff members disagreed with this<br />
policy, since the best product for the<br />
customer might be something that’s not<br />
in stock at that moment. The salesperson<br />
asked me who I thought was right.<br />
I said the manager is right; however, the<br />
staff weren’t necessarily wrong.<br />
While I do love taking both sides of an<br />
argument, there’s a reason both parties<br />
are right and wrong.<br />
OVER PROMISE, UNDER DELIVER<br />
Quick story first: while travelling some<br />
time ago, I stopped for dinner at a local<br />
restaurant where I saw homemade chicken<br />
potpie on the menu. Since that isn’t<br />
something I often see on a menu, I asked<br />
the waitress about the dish when she came<br />
to take my order.<br />
The waitress told me that the restaurant is<br />
known for its chicken potpies, which are<br />
made fresh daily, and that it is her favourite<br />
item on the menu. By then my mouth was<br />
watering so I ordered the chicken potpie<br />
with a side salad. You know what’s coming<br />
next, don’t you?<br />
Alas, the waitress then said, “I’m sorry but<br />
we’re sold out.” So here we have a waitress<br />
who had gotten a customer all excited<br />
about a dish, effectively selling it, only to<br />
then tell that customer he couldn’t have it.<br />
Talk about disappointing!<br />
This is a classic case of over-promising and<br />
under-delivering.<br />
IT HAPPENS IN RETAIL TOO<br />
The same thing often happens in retail<br />
stores when a salesperson gets customers<br />
all excited about a product only to tell them<br />
ALWAYS TELL A<br />
CUSTOMER WHEN<br />
THEY CAN PURCHASE<br />
AN OUT-OF-STOCK<br />
PRODUCT BEFORE<br />
YOU SHOW IT.<br />
THIS REDUCES<br />
DISAPPOINTMENT<br />
OUT-OF-STOCK PRODUCT – TO SHOW OR NOT?<br />
that the item is out of stock. It’s a practice<br />
that disappoints the customers and often<br />
results in missed sales opportunities.<br />
This is especially so in the digital age,<br />
known for the Millennial culture of<br />
immediacy. The Millennials have never<br />
known a world without the internet and<br />
they expect to have access to products and<br />
services 24-hours-a-day.<br />
Most of all, they believe it is their right to<br />
have what they want whenever they want<br />
and delivered the way they want it.<br />
Of course, there are always exceptions.<br />
What if the item in question is a new<br />
product or a hot seller and a store is only<br />
temporarily out-of-stock?<br />
Is it wrong to show the customer a product<br />
even though the customer can’t buy it right<br />
now? Not at all, especially if it’s done in a<br />
way that doesn’t disappoint the customer<br />
and the customer is given an opportunity<br />
to make a purchase.<br />
OUT-OF-STOCK SELLING<br />
Here are a few things to remember about<br />
showing and selling out-of-stock products:<br />
• Only show an out-of-stock product if you<br />
know it meets your customer’s needs or if<br />
he or she specifically asks for it. Something<br />
might be new or a hot seller but this<br />
doesn’t mean it’s the right product for<br />
everybody. Too often a staff member<br />
shows an out-of-stock product because<br />
it is new or they like it. Focus on what’s<br />
best for the customer.<br />
• Always tell a customer when they can<br />
purchase an out-of-stock product before<br />
you show it. This reduces disappointment.<br />
It also makes it easier to show another<br />
product or sell the out-of-stock item.<br />
One way to suggest this may be to<br />
say, “You might really like the new XYZ<br />
silver ring, which we’ll have in stock on<br />
Thursday. Let me show it to you.”<br />
• Recommend other products based on<br />
what customers like or dislike about the<br />
unavailable product – “Take a look at this<br />
ABC silver ring. It’s got many of the same<br />
features as the item you want and also<br />
has that modern style you like.”<br />
• Make purchasing out-of-stock products<br />
a great experience for customers – don’t<br />
tell them to check back next week; don’t<br />
charge for shipping; do the little things<br />
that ease a customer’s inconvenience<br />
when the right product is not in stock.<br />
• If your customer absolutely needs that<br />
product now, find it somewhere else.<br />
By doing this, you might keep the<br />
customer in the future even when losing<br />
a sale.<br />
Deciding whether to show products that<br />
are not in stock, or to not show them at<br />
all, requires a delicate balance but retailers<br />
who remember to always do what’s best<br />
for their customers will always do best for<br />
their stores. i<br />
DOUG FLEENER is<br />
president and managing<br />
partner of Sixth Star<br />
Consulting. Learn more:<br />
dougfleener.com<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 41
MANAGEMENT<br />
BUSINESS ADVICE THAT RARELY WORKS<br />
BUSINESSES SEARCHING FOR A WAY TO IMPROVE PROFITABILITY AND PERFORMANCE MUST CONSIDER MANY STRATEGIES,<br />
NOT ALL OF WHICH ARE GOING TO WORK. DAVID SHARPE REPORTS ON THE REALITIES OF SOME POPULAR BUSINESS ADVICE.<br />
There’s no shortage of people who will give<br />
you advice on how to run your business.<br />
There are coaches, mentors and strategists<br />
galore, all ready to offer their own ideas on<br />
business success. Talk is cheap, however, and<br />
even the best ideas can be difficult to put<br />
into action without the right resources. What<br />
can retailers do when it comes to introducing<br />
new strategies?<br />
Here are five examples of business advice<br />
that are easy to spout but not so easy to do.<br />
WRITE A BUSINESS PLAN<br />
Everyone says a business needs a business<br />
plan. Does it? Why exactly? Is it really<br />
worthwhile paying a consultant to write a<br />
detailed, 30-page plan so that it can sit in<br />
the top drawer?<br />
Two things are often forgotten about<br />
business plans. Firstly, for them to be<br />
effective they need a clear purpose, and<br />
secondly, to achieve that purpose, they<br />
need to be targeted to a distinct audience.<br />
If a business plan is required to attract an<br />
investor then the purpose and audience is<br />
clear but when it comes to the everyday<br />
running of a business, retailers probably<br />
don’t need to spend time and money<br />
writing a plan. Don’t misunderstand this as<br />
a suggestion that businesses don’t need<br />
to plan; planning is essential. Businesses<br />
just don’t need to do it by writing a big ol’<br />
document that no one will read.<br />
INTRODUCE A REBRAND<br />
Marketing consultants are notorious for<br />
saying businesses should rebrand to increase<br />
business. Marketing agencies love a rebrand<br />
or a brand refresh, complete with new logo<br />
and new website – that’s their business!<br />
Rebranding can certainly give a business a<br />
new look that attracts attention but does this<br />
increase sales? Only if it’s backed up by<br />
a rigorous sales regime.<br />
Sales is mainly about the hard slog of<br />
communicating with people who aren’t<br />
THE IDEA THAT<br />
THERE’S A SPECIFIC<br />
PROCESS, ONE WAY<br />
OF THINKING OR<br />
A SINGLE PRICING<br />
STRATEGY THAT<br />
WILL MAKE<br />
EVERYTHING WORK<br />
IS AN IDEA DESIGNED<br />
TO SELL BOOKS<br />
NOT ALL ADVICE MAY BE APPROPRIATE<br />
already customers. A new website can help<br />
but it doesn’t actually pick up the phone<br />
and talk to prospects, does it? Marketing<br />
and sales are different functions.<br />
BUILD CULTURE<br />
Another buzz term is ‘workplace culture’.<br />
Developing a co-operative and pleasant<br />
workplace culture, one that respects<br />
flexible ways of working and embraces<br />
co-operation, is de rigeur – everyone is<br />
trying to do it.<br />
That’s great; however, if every company has<br />
a great workplace culture then culture is no<br />
longer a differentiator for candidates. It just<br />
becomes one more factor for an employee<br />
to weigh up, no more important than salary<br />
levels, location or career prospects.<br />
In practice, businesses cannot rely on<br />
workplace culture alone to lure employees.<br />
There’s no substitute for making staff feel<br />
valued and well rewarded and no amount<br />
of casual-clothes days and free massages<br />
will replace that.<br />
BECOME A THOUGHT LEADER<br />
This one is a classic – businesses should<br />
position themselves as thought leaders<br />
in their industries but that’s easier said<br />
than done. The theory behind this is that<br />
businesses will increase their brand value<br />
if they become authorities, thus increasing<br />
their profiles and getting people interested<br />
in what they have to say.<br />
Authorities become destination businesses<br />
who can possibly even charge above the<br />
market rate for services because they’ve<br />
become premium brands.<br />
The trouble is that becoming a thought<br />
leader means creating content – lots<br />
of compelling content – regularly and<br />
consistently. It also means searching for<br />
self-promotion opportunities and that’s<br />
not for everyone. Retailers can do all of that,<br />
spending a lot of time and energy, and it<br />
still might not achieve the desired goal.<br />
Striving to be a thought leader may work<br />
for some retailers but they have to be aware<br />
of how much time, money and resources<br />
is required to get there. This time might be<br />
better spent delivering an excellent product<br />
to customers and boosting service levels.<br />
THE ‘ONE TRUE WAY’<br />
How many times have you heard, “There’s<br />
one sure-fire way to business success and<br />
this is it”? The idea that there’s a specific<br />
process, one way of thinking or a single<br />
pricing strategy that will make everything<br />
work is an idea designed to sell books.<br />
Practically speaking, business rarely works<br />
that way. Some strategies will work for some<br />
people and some strategies won’t. There’s<br />
never a one-size-fits-all solution, nor is there<br />
a fast answer.<br />
Retailers who try different strategies and<br />
measure the results should be able to plot<br />
a path that brings slow, incremental growth<br />
and it is steady growth that is much more<br />
likely to last into the long term. i<br />
DAVID SHARPE is advisory<br />
and consulting director at<br />
Generate, which specialises<br />
in creative industries. Learn<br />
more: generate.com.au<br />
42 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
MARKETING & PR<br />
WAGING WAR: MARKETING VS SALES<br />
SHOULD MARKETING BE LESS OF A FOCUS THAN SALES OR ARE THEY EQUALLY IMPORTANT TO RETAIL BUSINESSES?<br />
DALE FURTWENGLER DISCUSSES THE RELATIONSHIP BETWEEN THE TWO AND IF A PEACE TREATY CAN BE MADE.<br />
Over the years I’ve heard much commentary<br />
about the roles of marketing and sales<br />
within business. Popular sales writer Geoffrey<br />
James has written that marketing should be<br />
subordinate to sales instead of a separate<br />
function. Obviously, marketing experts<br />
disagree. War is expensive; let’s see if we<br />
can put an end to this one.<br />
THE ROLE OF MARKETING<br />
In many businesses, marketing’s role is to<br />
get the word out about the store, attracting<br />
new customers by creating front-of-mind<br />
awareness and a buzz for new offerings. Yet<br />
a simple review of profitability by customer<br />
shows that a firm strategy is required to<br />
ensure businesses see returns on their<br />
marketing expenditure. Consider the various<br />
products and services that businesses offer.<br />
Often businesses contribute their largest<br />
marketing investments – both in dollars<br />
and production capacity – towards their<br />
least profitable lines. This raises some<br />
important questions:<br />
• Are the right customers being targeted?<br />
• Are businesses touting the right offerings?<br />
• If so, how is it that retailers end up with so<br />
many low-margin customers and offerings?<br />
Market research is another role of marketing.<br />
Product innovations and improvements are<br />
often supported by, if not initiated through,<br />
research conducted by the marketing group.<br />
The question is: should this be marketing’s<br />
province exclusively?<br />
THE ROLE OF SALES<br />
The role of sales staff is, simplistically, to<br />
generate sales. Unfortunately, too many<br />
retailers operate from this very view, and,<br />
when asked, salespeople can rarely identify<br />
their ideal customers, what those customers<br />
value and what that value is worth in<br />
monetary terms.<br />
To make matters worse, the current models<br />
for sales budgeting and commission<br />
encourage sales staff to relentlessly pursue<br />
customers and to do anything they can<br />
WHEN MARKETING<br />
AND SALES ARE<br />
BOTH TARGETING<br />
THE SAME HIGHLY<br />
PROFITABLE PEOPLE<br />
AND CATEGORIES,<br />
A BUSINESS WILL<br />
GENERATE HIGHER<br />
REVENUES MORE<br />
QUICKLY AND AT<br />
PREMIUM PRICES<br />
THERE’S WEIGHT IN MARKETING AND SALES<br />
to make the sale. This occurs whether the<br />
business’ marketing is targeting the right<br />
markets or not. How can retailers stop this<br />
madness? Here are some thoughts.<br />
CROSS POLLINATION<br />
In small businesses like jewellery stores, staff<br />
often handle both marketing and sales but<br />
it’s rare that someone analyses profitability<br />
by both customer and product line/service<br />
categories. A caveat here – storeowners<br />
often calculate profit in ways that make<br />
it easy for them to report financial results<br />
under external reporting requirements.<br />
Marketing and sales people should both<br />
make sure they are comfortable that profit<br />
numbers reflect the economics of the<br />
various markets they serve.<br />
There are a few fundamentals to consider:<br />
• Why are some customers paying more for<br />
an offering?<br />
• What do they see that other customers<br />
do not?<br />
• Are the marketing messages designed to<br />
attract more of these customers?<br />
• How can this information help salespeople<br />
focus their efforts toward this market?<br />
• How can staff make marketing messages<br />
and sales scripts more congruent to<br />
increase the likelihood of sales?<br />
• What opportunities are staff seeing in<br />
the market for innovation and/or<br />
product improvement?<br />
• Are these opportunities something for<br />
which buyers are willing to pay extra?<br />
• Which offerings are languishing? Should<br />
they be invigorated or abandoned?<br />
Customers will always have stronger rapport<br />
with sales staff than with marketing staff.<br />
Sales staff have access to the shop floor<br />
to see first-hand how customers react to<br />
products. They also get the opportunity<br />
to have more candid exchanges with<br />
customers than back-office staff can have.<br />
These observations can be extremely<br />
valuable for improving their sales approach<br />
in ways that customers value.<br />
Don’t believe it? Ponder these questions:<br />
• Aren’t customers more likely to offer<br />
feedback to salespeople they like?<br />
• Aren’t salespeople more likely to<br />
share trends that they see in their<br />
customers’ preferences?<br />
• Aren’t customers more likely to let<br />
salespeople they like know when a<br />
competitor is about to release a product<br />
of value?<br />
Salespeople should be encouraged to share<br />
any language they’re using that helps close<br />
a sale or establish a relationship. Likewise,<br />
salespeople should also be encouraged to<br />
share complaints.<br />
All of this information can help shape<br />
a retailer’s marketing messages so that<br />
they resonate with their most profitable<br />
customers. When marketing and sales are<br />
both targeting the same highly profitable<br />
people and categories, a business will<br />
generate higher revenues more quickly<br />
and at premium prices. Now, how’s that<br />
for a peace treaty? i<br />
DALE FURTWENGLER is<br />
founder of Furtwengler &<br />
Associates. He is a speaker,<br />
author and consultant. Learn<br />
more: pricingforprofitbook.com<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 43
LOGGED ON<br />
TOOLS TO EASE THE CHRISTMAS RUSH<br />
THE FESTIVE SEASON IS CHAOTIC BUT THERE IS A PLETHORA OF DIGITAL STAFF COLLABORATION TOOLS TO HELP<br />
BUSINESSES STAY ORGANISED AND RUNNING SMOOTHLY THIS CHRISTMAS. LILIAN SUE REPORTS.<br />
Christmas can be a mad scramble. Every year,<br />
businesses must hire extra staff, order more<br />
inventory and ensure that each customer<br />
goes home with the perfect gift.<br />
Not only is finding staff an issue but new<br />
staff must be trained on the store systems<br />
and briefed with adequate knowledge of<br />
the products available on the shop floor.<br />
It all takes time, which is one commodity<br />
retailers rarely have during this period.<br />
That’s where software can assist, by allowing<br />
owners and managers to gain more time for<br />
their business without sacrificing productivity<br />
or profit during the busiest shopping season<br />
of the year.<br />
Online team collaboration tools help staff<br />
stay organised and well trained while they<br />
are contributing to increased business<br />
productivity. Here are three free, digital,<br />
team-collaboration-and-organisation tools<br />
that are efficient, easy to use and sure to<br />
give business owners and managers muchneeded<br />
time and breathing room during<br />
the festive season.<br />
ON THE SAME PAGE<br />
With a cloud-based collaboration platform<br />
like Same Page, business owners can sign<br />
up for free and log into their team account<br />
on their phones, laptops or tablets, increasing<br />
organisational efficiency.<br />
‘Team owners’ can directly message staff, post<br />
in team chat windows and even use video<br />
calling to host remote conferences with staff<br />
members to assist businesses with stores<br />
situated in different locations.<br />
Staff who are added as team members can<br />
easily upload diagrams and charts that show<br />
sales progress and even upload videos and<br />
photos of new jewellery and watches on<br />
the team page. Tasks can be given due<br />
dates and reminders can be assigned to<br />
relevant members, while the team task list<br />
can filter duties accordingly so they can be<br />
evenly distributed.<br />
Staff members are able to keep track of their<br />
progress with the official task tracker and<br />
calendars – both team and individual – are<br />
available so everyone is aware of deadlines,<br />
meetings and special events.<br />
HELLO, TRELLO<br />
Unique to Trello, the platform uses a cardbased<br />
system to make project management<br />
as simple as possible. Customised columns<br />
such as ‘in progress’ and ‘completed’ can be<br />
easily created on a project board to organise<br />
individual tasks. Each task is added to a<br />
column as a small card that lists individual<br />
tasks that can be assigned to different staff<br />
members. Space exists to add comments<br />
and an official deadline.<br />
Once a manager signs up for free, each<br />
team member is able to add checklists and<br />
attachments from other platforms such as<br />
Dropbox or GoogleDrive. They can also create<br />
more than one board for each project.<br />
Checklists make it easier to track progress<br />
as tasks can be crossed off once they’re<br />
completed. Each project board is also eligible<br />
for one ‘power-up’, a choice of specialised<br />
extras that have features such as allowing<br />
team members to see the tasks that haven’t<br />
received attention in more than a week,<br />
add video meetings, edit their e-newsletter<br />
campaigns or attach company surveys for<br />
other staff to complete.<br />
Trello is compatible with Mac and PC<br />
computers as well as Apple and Android<br />
mobile products.<br />
STRESS-FREE FREEDCAMP<br />
Freedcamp prides itself on being an all-inone<br />
solution for team collaboration and<br />
organisation. Business owners can have<br />
discussions with their staff in one place<br />
instead of dealing with scattered email<br />
threads and staff members can organise files<br />
in a state-of-the-art file system, backing up all<br />
information offline. Managers can also control<br />
staff rosters, tracking time on multiple staff<br />
members across multiple days.<br />
TEAM COLLABORATION TOOLS CAN REDUCE STRESS AT CHRISTMAS<br />
ONLINE TEAM<br />
COLLABORATION<br />
TOOLS HELP<br />
STAFF STAY<br />
ORGANISED AND<br />
WELL TRAINED<br />
WHILE THEY ARE<br />
CONTRIBUTING<br />
TO INCREASED<br />
BUSINESS<br />
PRODUCTIVITY<br />
Freedcamp gives staff members the option<br />
to assign tasks and set a goal by a certain date,<br />
notifying the team with progress updates as<br />
the goal moves closer as well. The software<br />
allows retailers to duplicate project templates,<br />
which increases productivity and eliminates<br />
the need to spend time and energy recreating<br />
homogenous project types.<br />
Freedcamp has unlimited storage and allows<br />
for unlimited projects. Business owners and<br />
team members can take the tool on the go<br />
through the iOS app on Apple products.<br />
With the right team collaboration and<br />
organisation tools, retailers can better manage<br />
staff tasks. The aim is to avoid drop-offs in<br />
productivity by allowing staff members to<br />
spend time on what matters: keeping their<br />
customers happy during the holiday rush and<br />
expanding business.<br />
Investing a little time and energy in the short<br />
term to find the best team collaboration tools<br />
will pay dividends in the long term and ensure<br />
the holiday rush is smoother and far jollier. i<br />
LILIAN SUE is a social media<br />
and PR strategist. She operates<br />
In Retrospect Writing Services.<br />
Learn more: inretrospect21.<br />
wordpress.com<br />
44 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
GEMS<br />
COLOUR INVESTIGATION: ZIRCON<br />
zircon’s array of colours actually results from<br />
external influence rather than from its own<br />
chemical composition.<br />
The specific cause of colour in zircon remains<br />
hotly debated and there are two popular<br />
theories in discussion: one side proposes<br />
that the presence of tetragonal centres of<br />
trivalent rare earth elements and niobium<br />
are the cause of colour; another theory<br />
suggests atomic defect centres (colour<br />
centres) created during the various stages<br />
of radioactive breakdown are what affects<br />
the absorption of colour in a zircon crystal.<br />
Although the beautiful and attractive<br />
earth tones of natural zircon occur more<br />
commonly, this gemstone is especially<br />
admired for its vivid-blue colours. Because<br />
of this high demand, vivid-blue gemstones<br />
usually command a higher price than other<br />
coloured varieties of zircon.<br />
Zircon is a mineral with certain optical<br />
properties that can rival those of a<br />
diamond. Found in a varied palette,<br />
the cause of colour in this gemstone is<br />
little known. STACEY LIM discusses two<br />
popular theories.<br />
Recognised as one of the birthstones for<br />
<strong>December</strong>, zircon is an important mineral<br />
with the oldest-known crystal grains found<br />
in Western Australia and dating back 4.4<br />
billion years.<br />
The high lustre and brilliance of colourless<br />
zircon is likened to that of diamond and<br />
gemstones have often been presented as<br />
imitation diamonds, especially in jewellery<br />
of the early 1900s.<br />
Today the popularity of zircon is somewhat<br />
diminished by its reputation as an<br />
inexpensive diamond simulant although it<br />
remains a favourite among collectors and<br />
informed consumers.<br />
Zircon is a zirconium silicate containing<br />
minute traces of radioactive elements<br />
like uranium and thorium, and rare earth<br />
elements. Because of its radioactive<br />
impurities, zircon’s crystal structure can be<br />
almost completely broken down over long<br />
periods of geological time. It is therefore<br />
said to be metamict.<br />
Zircon that has retained its original crystal<br />
structure is referred to as high zircon, and<br />
low zircon is metamict type. The low type<br />
is generally green but may also be brown,<br />
orange or yellow.<br />
High type zircons occur in a wider array of<br />
colours – yellow, orange, green, pink, red,<br />
reddish brown and blue hues – and are<br />
the gemstones typically seen in jewellery.<br />
Gemstones are mostly fashioned into round<br />
brilliant cuts to take advantage of their lustre<br />
and fire.<br />
Classified as an allochromatic gemstone,<br />
THE SPECIFIC<br />
CAUSE OF<br />
COLOUR IN<br />
ZIRCON REMAINS<br />
HOTLY DEBATED<br />
AND THERE ARE<br />
TWO POPULAR<br />
THEORIES IN<br />
DISCUSSION<br />
This piercing blue is achieved almost<br />
exclusively through heat treatment and<br />
may be slightly greenish-blue, greenish-blue<br />
or very strongly greenish-blue. The treatment<br />
is undetectable, stable and can be assumed<br />
for all blue zircons.<br />
Even though the demand for blue<br />
gemstones can be satisfied with other<br />
gemstones of comparable clarity at more<br />
affordable prices, zircon’s intense fire,<br />
high lustre and unique blue colour means<br />
it continues to reign supreme among<br />
gemstone buyers.<br />
Zircon’s unusual blue hue paired with its<br />
lustre and fire makes this gemstone an<br />
exceptional blue gemstone alternative. i<br />
STACEY LIM FGAA BA Design, is a qualified<br />
gemmologist and gemmology teacher/assistant.<br />
She is a jewellery designer, marketing manager<br />
and passionate communicator on gemmology.<br />
For information on gemstones, visit: gem.org.au<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 45
10 YEARS AGO<br />
WHAT WAS MAKING NEWS 10 YEARS AGO?<br />
A SNAPSHOT OF THE INDUSTRY EVENTS THAT MADE NEWS HEADLINES IN THE DECEMBER 2007 ISSUE OF JEWELLER.<br />
+ FUN FACT: THE ENTIRE DECEMBER 2007<br />
ISSUE WAS PRINTED IN BLACK AND WHITE.<br />
Pandora turns 25 and opens flagship store<br />
The story: While celebrating its 25th anniversary,<br />
Pandora Jewelry has opened its first Australian flagship<br />
store in Sydney.<br />
Located in the Queen Victoria Building, the store offers<br />
the full range of Pandora products, including its wildly<br />
successful charm bracelets.<br />
Hosted by the Danish Consulate, the store was<br />
inaugurated on October 31, with the Sydney Jazz<br />
Collective providing entertainment while models<br />
‘Blood rubies’<br />
boycotted<br />
The story: Following political upheaval in<br />
Myanmar, several high-profile international<br />
jewellery organisations and retailers have<br />
publicised their opposition to the purchase<br />
of Burmese gemstones. The JAA, CIBJO (the<br />
World <strong>Jeweller</strong>y Council), the International<br />
Colored Gemstone Association (ICA) and<br />
Jewelers of America (JA) have all issued<br />
statements urging members to seek<br />
written assurances from suppliers on<br />
the origins of the gems they receive and<br />
advise them to refrain from purchasing any<br />
Burmese gemstones until the process of<br />
democratic reform begins in Burma.<br />
paraded Pandora Jewelry<br />
and couture gowns. Guests<br />
were invited to preview the<br />
limited edition Anniversary<br />
Collection – each piece<br />
in the 14-carat gold ring,<br />
earring, necklace and charm<br />
suite is embellished with<br />
.25-carats of diamonds to<br />
mark the quarter-century milestone.<br />
Mobile phone jewellery designed for charity<br />
The story: <strong>Jeweller</strong> Nic Cerrone has connected<br />
with MobileMuster – the official recycling program<br />
of the mobile phone industry – to create a limitededition<br />
jewellery range from recycled mobile<br />
phone components.<br />
The men’s ring, cufflinks and necklace and women’s<br />
necklace, bracelet and earrings comprising the range<br />
contain gold yielded from 8,700 recycled mobile<br />
phones. The pieces also contain silver and copper.<br />
“Over 90 per cent of<br />
mobile phone materials are<br />
recoverable,” said Rose Read,<br />
manager, MobileMuster.<br />
Cerrone’s pieces were<br />
auctioned online from<br />
October 28 to November 12<br />
and all funds were donated<br />
to Landcare Australia.<br />
PRE-APPRENTICESHIP<br />
COURSE LAUNCHED<br />
The story: Brisbane’s Southbank<br />
Institute of Technology has launched<br />
a pre-apprenticeship short course in<br />
jewellery manufacturing designed<br />
to help the trade select suitable<br />
apprentice applicants.<br />
Implemented in response to industry<br />
requests, the course addresses a lack<br />
of public knowledge about careers<br />
paths in the industry and a shortage of<br />
trade-accredited jewellers/goldsmiths<br />
in Australia.<br />
“The course aims to give insight into<br />
a career in jewellery manufacturing,”<br />
said teacher Lee Pownall. “It allows the<br />
student to explore their aptitude and<br />
abilities for the design and creation of<br />
jewellery items.”<br />
The program is aimed at anyone<br />
interested in a career in the industry<br />
with no prior experience or knowledge.<br />
INDUSTRY NIGHT<br />
EXPERIENCES SUCCESS<br />
The story: A recent industry dinner<br />
dance has successfully reinvigorated<br />
a dialogue between various industry<br />
groups – including the <strong>Jeweller</strong>s<br />
Association of Australia (JAA),<br />
Gemmological Association of Australia<br />
(GAA) and National Council of <strong>Jeweller</strong>y<br />
Valuers (NCJV).<br />
Held on September 22 in Victoria, the<br />
event raised over $3,000 for the Make<br />
a Wish Foundation through an auction<br />
of donated jewellery and gemstone<br />
items. Importantly, it also presented a<br />
forum for communication between the<br />
industry groups. “It was acknowledged<br />
that we are all ‘in the same boat’,” coorganiser<br />
Leon Corn said, “and that we<br />
should try to pull in the same direction.”<br />
46 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
CALENDAR<br />
2018 TRADE SHOW CALENDAR<br />
NEXT YEAR’S TRADE FAIR CALENDAR IS QUICKLY FILLING UP AND JEWELLERS WOULD BE WISE TO START PLANNING.<br />
HERE IS A GUIDE TO SOME OF THE HOTTEST SHOWS TAKING PLACE LOCALLY AND INTERNATIONALLY IN 2018.<br />
TUCSON GEM,<br />
MINERAL & FOSSIL<br />
SHOWCASE<br />
January 27 – February 11<br />
Tucson, US<br />
Visit: visittucson.org/events/gem-show<br />
Described as the largest gemstone and<br />
mineral event of its kind in the world, the<br />
Tucson Gem, Mineral and Fossil Showcase<br />
is known for its museum-quality exhibits of<br />
gemstones, jewellery, minerals and fossils.<br />
BANGKOK GEMS &<br />
JEWELRY FAIR<br />
February 21–25<br />
Bangkok, Thailand<br />
Visit: bkkgems.com<br />
The biannual Bangkok Gems & Jewelry<br />
Fair has developed a reputation for being<br />
a treasure trove of coloured gemstones –<br />
many of which are supplied by local dealers.<br />
A second show in 2018 will take place in<br />
September, with dates to be announced.<br />
HONG KONG<br />
INTERNATIONAL<br />
JEWELLERY SHOW<br />
March 1–5<br />
Hong Kong<br />
Visit: m.hktdc.com/fairmob/hkjewellery-en<br />
Organised by the Hong Kong Trade<br />
Development Council, this fair focuses on<br />
finished jewellery. Next year will mark the<br />
35th edition of the trade show.<br />
BASELWORLD<br />
March 22–27<br />
Basel, Switzerland<br />
Visit: baselworld.com<br />
Baselworld is billed as the world’s<br />
largest watch and jewellery fair,<br />
attracting more than 106,000 visitors<br />
and 1,300 exhibitors in <strong>2017</strong>.<br />
The show has been shortened in<br />
2018, running for six days instead<br />
of the traditional eight days.<br />
JCK LAS VEGAS<br />
June 1–4<br />
Las Vegas, US<br />
Visit: lasvegas.jckonline.com<br />
This jewellery trade show appears to be<br />
increasing in size each year and, in addition<br />
to having a vast array of products on display,<br />
it also features several education sessions<br />
conducted by industry organisations like<br />
De Beers Group and the GIA.<br />
INDIA INTERNATIONAL<br />
JEWELLERY SHOW<br />
Date to be confirmed<br />
Mumbai, India<br />
Visit: iijs.org<br />
This year’s event is said to have attracted<br />
more than 2,200 exhibitors showcasing<br />
loose diamonds and gemstones as well<br />
as finished jewellery. The fair is organised<br />
by the Gem & <strong>Jeweller</strong>y Export Promotion<br />
Council (GJEPC) and traditionally takes<br />
place in late July.<br />
HONG KONG<br />
JEWELLERY &<br />
GEM FAIR<br />
Sept 12–16 and Sept 14–18<br />
Hong Kong<br />
Visit: exhibitions.jewellerynetasia.com/9jg<br />
The first part of the show, held from<br />
September 12–16, features loose diamonds,<br />
gemstones and pearls. The second, held<br />
from September 14–18, is for finished<br />
jewellery, packaging, tools and equipment.<br />
*Dates were correct at the time of publication<br />
25<br />
AUGUST<br />
20<br />
JUNE<br />
INTERNATIONAL JEWELLERY FAIR<br />
August 25–27<br />
Sydney, Australia<br />
Visit: jewelleryfair.com.au/2018<br />
Following the success of the IJF’s return<br />
to Darling Harbour this year, the 2018<br />
fair will again head to the International<br />
Convention Centre Sydney. Organised<br />
by Expertise Events, the IJF has<br />
cemented itself as an important event<br />
on the local industry’s calendar.<br />
<strong>December</strong> <strong>2017</strong> <strong>Jeweller</strong> 47
MY BENCH<br />
Dan Shadwick<br />
WORKS AT:<br />
Shadwick’s Fine <strong>Jeweller</strong>y<br />
AGE: 43<br />
YEARS IN TRADE: 26<br />
TRAINING: Apprenticeship<br />
in manufacturing jewellery<br />
and diamond setting<br />
FIRST JOB: Wensley’s<br />
Goldsmiths of Fremantle,<br />
under Bob Shadwick<br />
OTHER QUALIFICATIONS:<br />
Holiday extension specialist!<br />
Favourite gemstone:<br />
Tanzanite, because I like the<br />
blue/purple colour and the<br />
way diamonds can make it<br />
really pop.<br />
Favourite metal:<br />
Anything other than silver<br />
and 9-carat gold!<br />
Favourite tool:<br />
My hammer. It was<br />
my grandfather’s so it<br />
is sentimental.<br />
Best part of job:<br />
Starting with a square bar<br />
of metal and then turning it<br />
into someone’s dream piece<br />
of jewellery.<br />
Worst part of job:<br />
When people lick their<br />
finger to take off a ring and<br />
then expect you to hold out<br />
your hand to receive it with<br />
a smile on your face.<br />
Also, nose studs!<br />
Best tip from a jeweller:<br />
There is no such thing<br />
as ‘can’t’, so my father said.<br />
Best tip to a jeweller:<br />
Don’t fall in love with your<br />
bench or your peg!<br />
Love jewellery because:<br />
How many people can say<br />
their job is like a hobby?<br />
My bench is always:<br />
Immaculately organised,<br />
because it makes it easier to<br />
find stones when they flick.<br />
Favourite sporting teams:<br />
Claremont Football Club<br />
and West Coast Eagles.
SOAPBOX<br />
MARGIN CALL<br />
I’ve been in the retail industry my entire<br />
working life, both as a retailer and most<br />
recently as a supplier, and I’ve never seen<br />
the market as difficult as it is right now.<br />
It’s like being on a boat and you know the<br />
storm is coming but you really don’t have<br />
any idea how bad it is going to be.<br />
There’s no way that retailers are getting as<br />
much foot traffic as they were three or four<br />
years ago; customers are now fewer and<br />
farther between.<br />
If jewellers are to have any hope of surviving<br />
this challenging period then they need help<br />
from suppliers. Specifically, suppliers must<br />
take responsibility and provide them with<br />
increased margins.<br />
Not naming names, I think it’s imperative<br />
that the big brands look at adjusting margins<br />
in order to maximise the value of each<br />
customer that walks through the retailer’s<br />
door. Being able to maximise this customer<br />
value does not come by giving people a new<br />
product or a gift with purchase promotion.<br />
These strategies don’t work anymore<br />
because the branded product marketing<br />
that’s currently out there is heavily geared<br />
towards the online environment.<br />
Why is this the case?<br />
Well, the big brands set most of the<br />
margins online, meaning there’s little<br />
need to conduct marketing for bricks-andmortar<br />
retail.<br />
My business gives a significant mark-up for<br />
the retailer and there’s a reason we do it – it’s<br />
because I know what is required to survive<br />
in a retail environment. I’ve been there,<br />
we’ve done the retail side of it and I know it’s<br />
ridiculously hard to survive without money.<br />
If I were still in retail and wanted to ride<br />
this difficult wave then I’d need a massive<br />
margin on the products in my store, I’d need<br />
foot traffic and I’d need to get these two<br />
components to glue together.<br />
Money is the one thing that will keep<br />
retailers alive – nobody pays bills with extra<br />
product, free gifts or rebates. Only money<br />
will pay wages and rent. It’s as simple as that.<br />
Some suppliers boast about offering rebates.<br />
For example, if a retailer spends more<br />
than $5,000 then the supplier will give a<br />
percentage rebate or a favourable payment<br />
option. Well, that’s great but that also<br />
requires a retailer to spend more money.<br />
This is like saying to someone that’s<br />
drowning in the ocean, “Listen, I know you’re<br />
drowning but can you just hold this for me<br />
for a minute? I am going to rescue you later,<br />
down the track, but I need you to hold this<br />
for me now.”<br />
That’s too late – there’s no surviving that<br />
situation; the retailer has drowned.<br />
There’s also much complaining going on<br />
from suppliers about retailers not running<br />
their businesses properly, damaging the<br />
brands in store, blah, blah, blah. Are you<br />
kidding me? They’re trying to save their<br />
businesses! Retailers are the ones who<br />
are struggling to pay rents, struggling to<br />
negotiate with Westfield and other landlords<br />
who all want to get paid.<br />
Suppliers have one job on top of providing<br />
product: they must offer outstanding<br />
CAN WE PLEASE<br />
ALL BE HUMAN FOR<br />
FIVE MINUTES? CAN<br />
WE ALL RECOGNISE<br />
THAT WE HAVE A<br />
BETTER CHANCE<br />
OF SURVIVING THIS<br />
RETAIL WAR IF WE<br />
ALL JOIN HANDS?<br />
customer service in order to solve every<br />
problem their retail customers have.<br />
I think some suppliers believe that it’s not<br />
their job to do that or that retailers should<br />
feel lucky to stock their brands but this is<br />
just ridiculous.<br />
The big brands need to take it on the chin<br />
for a bit and must cut their margins if retailers<br />
are to survive. Suppliers are already making<br />
massive margins online so it’s not as though<br />
cutting margins for the retailer’s benefit<br />
would jeopardise their businesses. Anyone<br />
who claims this is talking rubbish.<br />
Many suppliers have been manufacturing<br />
for a long time so what’s stopping them<br />
from going back to their manufacturers and<br />
asking for better prices? They need to do<br />
whatever they can before it’s too late.<br />
Can we please all be human for five minutes?<br />
Can we all recognise that we have a better<br />
chance of surviving this retail war if we all<br />
join hands?<br />
Retailers don’t need to be told how to sell<br />
jewellery; they know how to sell jewellery.<br />
They need to be given larger margins –<br />
even just for the short term – to enjoy a bit<br />
of a breather.<br />
Importantly, it needs to be done now<br />
otherwise there will be no retailers left to<br />
sell to for suppliers! i<br />
Name: Hayley Birtles-Eades<br />
Business: Love Lockets<br />
Position: marketing and brand manager<br />
Location: Brisbane<br />
Years in the industry: five<br />
50 <strong>Jeweller</strong> <strong>December</strong> <strong>2017</strong>
SIGNITY (THAILAND) LTD.<br />
SWAROVSKI GEMSTONES BUSINESS<br />
SIGNITYTHAILAND.OFFICE@SWAROVSKI.COM<br />
T +66(02) 237 2040<br />
F +66(02) 237 2041<br />
SWAROVSKI-GEMSTONES.COM<br />
KARLIE KLOSS<br />
Brilliant Precision<br />
BORN FROM A TRADITION OF<br />
MASTER CRAFTSMANSHIP<br />
VISIT SWAROVSKI-GEMSTONES.COM
MERRY CHRISTMAS<br />
FROM ALL OF US<br />
pms 2935 C<br />
pms 2935 C<br />
August 25 > 27, 2018<br />
International Convention Centre Sydney, Darling Harbour<br />
Contact: Mary-Anne Brown<br />
Telephone: +61 2 9452 7513<br />
Email: maryanne.brown@expertiseevents.com.au<br />
Organised by