Jeweller - December Issue 2017

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
DECEMBER 2017
Wild ride
RETAIL HAS CHANGED FOREVER,
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Maverick
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What it delivers
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What our members have to say
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RETAIL HAS CHANGED FOREVER,
ADAPT NOW TO SURVIVE
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
EXCLUSIVE ONE-TO-ONE WITH
DIAMOND ‘REBEL’ MARTIN RAPAPORT
DECEMBER 2017
SCOURING THE GLOBE FOR STORE
DESIGNS WITH X FACTOR
CONTENTS
DECEMBER 2017
13/
21/
26/
FEATURES REGULARS BUSINESS
13/ DIAMOND REBEL
Up close and personal with
nonconformist Martin Rapaport.
17/ FEELING GOOD
Pandora’s David Allen shares insight
on the great customer experience.
7/ Editorial
8/ Upfront
9/ News
10/ Top Products
45/ Gems
Colour investigation: zircon
39/ Business feature
David Brown discusses the merits
of the morning staff meeting.
41/ Selling
Doug Fleener says showing outof-stock
product is good practice
… if done correctly.
21/ NEW NORMAL
In-depth analysis on the changing
retail landscape and ways to adapt.
26/ X FACTOR
Be inspired by international store
designs that ‘wow’.
46/ 10 Years Ago
47/ Calendar
48/ My Bench
50/ Soapbox
Suppliers need to adjust margins,
Hayley Birtles-Eades says.
42/ Management
Generic business advice rarely
works, David Sharpe warns.
43/ Marketing
Dale Furtwengler proposes a peace
treaty for sales and marketing.
44/ Logged On
Embrace staff collaboration tools
this Christmas, Lilian Sue reports.
Wild ride
Maverick
+ +
X factor
Front cover description:
Lesedi La Rona rough diamond.
Image courtesy: Graff Diamonds
December 2017 Jeweller 5

EDITORIAL
UNDERSTANDING THIS ROLLERCOASTER RIDE
As 2017 draws to an end, it’s hard to recall a
more eventful year for the Australian jewellery
industry. It has undergone massive change
and it’s difficult to know in which direction
it’s headed. In fact, many would argue that
the local market has experienced the greatest
change on record.
I am sure most readers are just waiting for this
year to be over and are looking forward to the
New Year period.
The term ‘New Normal’ is increasingly being
used as a way to define the current trading
climate. It became popular following the
2007-2008 global financial crisis and the
aftermath of the 2008–2012 global recession,
which Australia largely avoided.
A huge convergence in retail has been
happening for some time as businesses
shift to test different models in the new
digital world – online retailers are opening
bricks-and-mortar stores; traditional retailers
are attempting to compete with their
own – albeit small – online models; and
large retailers are converting physical store
locations into semi-distribution hubs.
The truth is the retail industry has never
stopped changing; however, it’s just that
right now we are perhaps in the middle of
the greatest change ever experienced, in part
because of the speed at which it’s occurring.
What retailers need to be aware of today is
that the customer ‘journey’ – the manner in
which they decide to buy and then make
a final purchase – has altered given there
are more touch points along the route, with
customers treating different channels as short
stops on their way to making a final purchase.
It’s complex to say the least.
With this in mind, the Jeweller team decided
that our December issue should take a slightly
different approach by featuring a number of
in-depth articles offering insight on the state
of the market and how retailers can better
understand the changes.
David Allen, the former president of Pandora
Australia and New Zealand who now heads
up Pandora’s Europe, Middle East and Africa
regions, has long been an advocate for
defining what a great customer experience
actually means. He asks, “If being obsessed
with their customers is the key to success, why
aren’t more retailers outrageously successful?”
It’s a good question and surely the answer
is simple, right? Well, no, because customer
obsession is subjective, and worse, part of
the problem for our industry is the average
age of storeowners. Running a business 10
to 20 years ago with the aim of customer
satisfaction (the old term) was relatively easy
because the environment was far simpler;
however, with so many retail choices and
channels now available, understanding
customer satisfaction (experience) is hard
enough – let alone trying to achieve it!
Nationwide Jewellers managing director
Colin Pocklington has been tracking Australian
THE RETAIL
INDUSTRY HAS
NEVER STOPPED
CHANGING;
HOWEVER, IT’S
JUST THAT RIGHT
NOW WE ARE
PERHAPS IN
THE MIDDLE OF
THE GREATEST
CHANGE EVER
EXPERIENCED
jewellery and watch sales since 1982 as a way
to keep his buying group members informed.
He acknowledges the ‘New Normal’ and lists
five megatrends that are driving disruption
not only throughout the jewellery industry
but also the wider community.
Pocklington believes that with less foot
traffic, jewellers have to find a way to increase
their hit rate for the customers that do walk
through the door.
Diamonds have traditionally been a large
driver of jewellery store sales so this month
we offer insight into the current state of
the market, and who better to look inside
the international diamond landscape than
Martin Rapaport?
I caught up with the self-described ‘maverick’
for a one-on-one interview a few months ago,
knowing full well that he is not backwards in
coming forwards with his views, no matter
how controversial they may be!
For example, when discussing the topic of
synthetic diamonds, Rapaport says despite
their powerful marketing campaigns,
synthetics are not identical to natural
diamonds and consumers are being misled
because there is no natural scarcity.
He has a lot more to say, as you will discover,
so sit back, strap yourself in and hold on tight.
The rollercoaster ride has begun.
Coleby Nicholson
Managing Editor
December 2017 Jeweller 7

UPFRONT
“I first worked
in my family’s
jewellery business
as a ‘glassy/waiter’
at Christmas
functions and
later in the school
holidays running
errands and
polishing.”
How were you introduced to the industry?
JUSTIN MCCABE,
GERARD MCCABE
JEWELLERS
“I started my
diamond business
20 years ago. I
was supposed to
be an accountant
but couldn’t turn
my back on this
opportunity –
business was in
my blood!”
SHWETA KHAN,
STARFIRE DIAMOND
JEWELLERY
“I was introduced
to the industry
while exploring
ways to build an
engagement ring
for my now wife.
I discovered a love
for creating pieces
and have never
looked back.”
SIMON GOODBURN,
RIBS & DUST
VOICE OF THE AUSTRALIAN
JEWELLERY INDUSTRY
jewellermagazine.com
Managing Editor
Coleby Nicholson
Editor
Emily Mobbs
emily.mobbs@jewellermagazine.com
Journalist
Talia Paz
talia.paz@gunnamattamedia.com
Advertising Manager
Gary Collins
gary.collins@jewellermagazine.com
Digital Manager
Angela Han
angela.han@gunnamattamedia.com
BULLETIN BOARD
n CHRISTMAS CHEER
Consider this: teamwork makes the
dream work. A successful store is only
as strong as its staff and ensuring they
are managed correctly during the
festive season is crucial. Scheduling
regular meetings that clearly state the
demands of each employee should not
be underestimated. A little Christmas
pudding also wouldn’t go astray.
n FUTURE NUPTIALS
The ‘world’s first’ wedding department
store has opened in London. Think of
The Wedding Gallery as a one-stop
venue for wedding planning, housing
everything from bridal gowns, florists,
beauty studios and of course jewellery.
The space also reportedly offers an
exclusive members-only club for the
industry with meeting rooms, event
spaces and networking activities.
n THIRST FOR JEWELS
Research suggests that people are
drawn to jewellery because of water.
A study published in the Journal of
Consumer Psychology theorises that the
preference for glossy objects – metals
and diamonds – stems from “an innate
preference for fresh water as a resource”.
DIGITAL
BRAINWAVE
SHOW OF HANDS
Businesses looking for more ways to engage with
customers in the lead up to Christmas are in luck.
Instagram has launched Polls, an interactive poll
– in the form of a sticker superimposed over a
photo – that allows users to ask questions and view
the results. After taking a photo or video, add the poll sticker and upload to Instagram
Stories; followers can immediately start voting and retailers will see real-time results.
There are plenty of insights jewellers can glean from this nifty feature … rose, yellow
or white gold this Christmas? Are statement earrings or a stack of bangles the trend
of choice? The opportunities are endless so get polling!
TOP PRODUCT
Cluse’s 18-carat rose gold-plated
Essentielle black crystals chain bracelet
is from the brand’s new jewellery range.
Distributed by Heart & Grace, the piece
was the most popular product last month
ranked by views at jewellermagazine.com.
Production Manager
& Graphic Design
Jo De Bono
art@gunnamattamedia.com
Accounts
accounts@gunnamattamedia.com
Subscriptions
info@jewellermagazine.com
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Copyright: All material appearing
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Gunnamatta Media Pty Ltd strives to
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8 Jeweller December 2017

NEWS
NEWS
Gearing up for Christmas challenges
Despite tough trading, buying group heads
agreed that jewellers who remained positive
and implemented certain strategies during
the Christmas period would place themselves
in good stead for a positive outcome.
Nationwide Jewellers managing director
Colin Pocklington said staff training,
consumer financing and window displays
that included some ‘loss leader’ pieces
and visible price tickets on all items were
important areas to address.
“Use this time to clear as much old stock
as possible, which will take the pressure off
cashflow in 2018, and make room for better
performing ranges,” Pocklington added.
Showcase Jewellers general manager Carson
Webb said retailers needed to be aware that
Christmas sales were becoming ‘flatlined’.
“For most, the percentage is no longer the
big 25 per cent of sales in December,” he
explained. Webb said rather than discussing
market challenges, the industry required a
proactive approach: “We can’t change the
situation; however, we can change how our
stores are presented and what’s on offer to
our customers and, importantly, the way in
which staff engage with them.”
The comments followed ABS statistics that
showed a below average 1.44 per cent yearon-year
retail sales increase for September.
Jeweller shines in VET awards
Adelaide-based jeweller Laura Pivovaroff
was recently crowned Apprentice of the Year
at the 2017 South Australian Training Awards.
Pivovaroff – who works at Wishart Jewellers
and completed a jewellery manufacturing
apprenticeship last year – was one of four
finalists narrowed down from 22 category
entrants working across the various
industries that fell under the state’s vocational
education and training (VET) sector.
“Winning this award means that my passion
and dedication was recognised within the
jewellery industry as well as in the world
outside of jewellery,” Pivovaroff said.
The jeweller would act as an ‘ambassador’
to promote the benefits of undertaking
an apprenticeship in South Australia. She
was also expected to represent the state in
the Apprentice of the Year category at the
Australian Training Awards in Canberra in
late November. It had not taken place at
the time of publication.
Thomas Jewellers closing all stores
Thomas Jewellers, which was established by
James Thomas in 1896, has confirmed the
closure of its eight stores.
According to a statement by The Thomas
Group in October, the chain of Thomas
Jewellers stores would cease trading in the
upcoming months.
The decision was said to allow the group to
“refocus their attention to areas of strength
and growth within their business”.
The statement added that the regional store
properties would be sold, while the Thomas
family would retain the store in Melbourne’s
Bourke Street Mall, with a new tenant to be
unveiled in 2018.
As previously reported by Jeweller, Thomas
Jewellers announced the closure of its
Melbourne store in September 2017. A
company statement at the time noted that
the move was part of a business rebrand that
would involve a focus on regional stores.
+ MORE BREAKING NEWS
JEWELLERMAGAZINE.COM
IN BRIEF
*
BEVILLES SHAKE-UP
Indian company Tara Jewels will acquire
a 49 per cent stake in Bevilles. The chain’s
CEO, Michelle Stanton, said the Bevilles
family would retain a 51 per cent stake
and that the deal was expected to be
finalised in the next 12 months. She added
that the “strategic alliance” made between
both companies in 2013 was always
going to be converted into an “equity
partnership” when the timing was right.
*
JAA FALSE STATEMENTS
In October, the JAA released its Financial
Statements for the year ended June 30,
2017. The report, prepared for the AGM
on November 15, was error-ridden despite
being approved by the board and signed
off by directors. At the time of publication,
the JAA had removed the Financial
Statements from its website, stating:
“Please note the 2016-2017 Financial
Statements will be made available shortly.”
*
SUPPLIER HERALDS CHANGES
Wedding ring supplier TWM Co has
introduced a same-day order and
return service for its ‘plain’ wedding
ring range. According to TWM Co chief
operating officer Roberto Ulas, the new
offering was in response to the “next
generation” of consumers demanding
faster turnaround times.
*
APPRENTICE WINS TOP AWARD
Georgia Piggott, a third year jewellery
apprentice who works at Wallace Bishop’s
head office in Brisbane, was recently
awarded Southbank TAFE’s Jewellery
Apprentice of the Year award and the
Queensland state medal for the regional
WorldSkills Australia competition.
*
YELLOW DIAMOND REVIVAL
POZ Minerals has secured an agreement
to commence operations at its diamond
mine located adjacent to the former
Ellendale mine, which closed in 2015.
Bulk sampling and trial mining operations
at the Blina Diamond Project are expected
to begin next year.
December 2017 Jeweller 9

TOP PRODUCTS
TOP PRODUCTS FOR 2017
A BEVY OF NEW JEWELLERY, WATCHES, DIAMONDS AND GEMSTONES HAS PASSED JEWELLER’S DESK THIS YEAR.
THE FOLLOWING IS A COMPILATION OF THE MOST POPULAR RANKED BY VIEWS AT JEWELLERMAGAZINE.COM.
Thomas Sabo’s 18-carat gold-plated sterling
silver earrings are from the spring/summer
2017 collection. Distributed by Duraflex Group
Australia, the earrings were the most popular
product for the month of March.
Sams Group Australia’s 0.27-carat, oval cut
vivid pink diamond was sourced from the Argyle
diamond mine in the East Kimberley region of
Western Australia. The stone was the most popular
product for the month of April.
Daniel Wellington’s
36 mm Classic Black
Cornwall timepiece
comprises a black dial with
rose gold-toned detailing
and interchangeable NATO
strap. The watch, distributed
by West End Collection, was
the most popular product
for the month of May.
Jos Von Arx’s bracelet combines leather cord
and stainless steel. The ‘Flexisize’ clip allows for
the piece to be resized so that one size fits all. The
item, distributed by The Russell Collection, was
the most popular product for the month of July.
O’Neils Affiliated’s 11.33-carat blue sapphire
rough is said to appeal to an increasing demand
for ‘raw’ jewellery. The gemstone, part of a
limited parcel of Sri Lankan rough gemstones
obtained by the supplier, was the most popular
product for the month of June.
Worth & Douglas’ Ebony women’s
collection is said to encourage wearers to be
confident individuals. The range comprises
black zirconium rings fashioned into various
designs, and was the most popular product
for the month of August.
Opals Australia’s pendant
featuring a light opal from
Coober Pedy is set in 18-carat
yellow gold and surrounded
by diamonds. It was the
most popular product for the
month of September.
Engelsrufer’s Balance pendant is
adorned with symbols of the lotus
flower, scales and elephant.
The piece, distributed by
Duraflex Group Australia,
features an interchangeable
sound lens and was the
most popular product for
the month of October.
Stones & Silver’s
collection of necklaces
is designed to be mixed
and matched for a
layered look. The offering
– ranging from 35 cm
chokers to 100 cm chains,
as well as 45-70 cm
necklets, lariats and fobs
– was the most popular
product for the month
of November.
+TURN TO PAGE 8
FOR THE MOST POPULAR PRODUCT
FOR THE MONTH OF DECEMBER.
* Top products were measured each month based on the number of unique views on jewellermagazine.com
10 Jeweller December 2017

AUSTRALIAN OPAL WATCHES
Instyle Watches PTY LTD
02 8399 7301
sales@instylewatches.com.au
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MARTIN RAPAPORT
IMAGE COURTESY: PROSUMER DIAMONDS
UP CLOSE
maverick
WITH THE DIAMOND
MARTIN RAPAPORT IS NEVER SHORT OF WORDS WHEN IT COMES TO
DIAMONDS. COLEBY NICHOLSON MET WITH THE INDUSTRY NONCONFORMIST
TO DISCUSS THE CURRENT STATE OF THE INTERNATIONAL DIAMOND MARKET.
artin Rapaport: most people in the industry will know the name,
or at least recognise the face and signature bow tie.
The founder and chairman of Rapaport Group, which publishes
Rapaport magazine and operates online trading platform RapNet
among other products and services, began his career in the diamond industry
in 1975 as an apprentice diamond cleaver in Antwerp.
His Wikipedia page notes that he has been called a ‘maverick’ within the
diamond industry and probably rightly so.
I met with Rapaport in July to discuss the state of the industry and his often
counter-intuitive and controversial stances on various industry issues.
At the time, he is quick to say that the diamond industry is in a period of
large “transition”.
“Overall the diamond industry has settled, it’s not expanding,” he says. “You could
say the pie is shrinking and people are fighting over the little pieces of the pie.”
Rapaport explains there are several reasons for this, first of which is the fact that
the boom in China quieted down a few years ago.
“In addition, the US market has become more picky,” he continues. “Europe is
gone, and with the oil price the UAE is gone – when I say ‘gone’, I mean that
these markets are not a driving force in diamond demand.”
Rapaport also notes that there is some concern that recent rough sales, to the
tune of about US$1.8 billion, are entering the Indian market.
“There seems to be a lot of rough coming in and there is no increase in polished
demand,” he says. “So there is concern that inventory levels are too high, but
again, we are chatting here now in July-August, and the Christmas season is
around the corner where demand, specifically in December, can be triple or at
least double the demand of the rest of the year.”
EVOLVING NEEDS
The industry may be in holding mode but Rapaport says there is optimism
about next year, as well as in the longer-term, and that many changes are taking
place at the consumer end.
“The US is approximately 51 per cent of the market at US$42 billion – that would
be diamond jewellery with metal. Rapaport Group expects the US market to
probably pick up strongly next year,” he explains.
“The consumerism issue is amazing in the US. First of all, you have the
Millennials, who offer a whole different type of consumer demand. The
Millennials are primarily focused on three things: an experience; customisation
– their ring should be a little different, but it doesn’t mean customising from
scratch; and finally, extreme customer service.”
December 2017 Jeweller 13

Further to this, he predicts an increasing interest in social
responsibility from Milennials.
“With this cultural shift in demand in the US is the emergence of
what I would call the ‘we’ generation,” Rapaport explains.
“Everything is community and social. So the idea that people want
to know where their diamonds are coming from is going to grow,
and I believe it will evolve competition.”
He envisions a time when customers will shop around based on
whether a retailer offers a diamond from a ‘good source’.
“A guy will come up and say, ‘My diamonds have a very good source,’
and I’ll go to another store and I’ll say, ‘That guy told me his diamond
had a good source, what about yours?’ Consider what happened
with XXX GIA certification. There was no cut grade. People didn’t
ask for cut grades but now cut grades have come into the fore and
everyone demands it.”
MATTER OF ETHICS
Rapaport, who played an integral part in the establishment of the
Kimberley Process, adds that one of the biggest concerns today is
the “greenwashing” utilisation of the Kimberley Process.
“Companies and countries say, ‘I have a Kimberley Process certificate,
and therefore I’m in compliance with the anti-money laundering or
counter terrorism funding,’ and that’s simply not true,” he explains.
“The industry is still lying about the efficacy of the Kimberley Process
certificates relative to money laundering. I see this as a tremendous
risk to industry reputation because as you see there are more
terrorist attacks taking place.
“I’m not accusing anyone of anything specific but I’m saying the
industry is at fault, and I think those in the industry that say that the
Kimberley Process protects the industry from anti-money laundering
and terrorist funding are liars.”
When questioned whether such an issue has any real significant
impact on a retail jeweller, given consumers, particularly in Australia,
rarely ask if a diamond is ethically sourced, Rapaport is unyielding
that it should be a focus for everyone.
“What’s the difference between a dog and a leader?” he asks. “A dog
sniffs everybody else’s behind to see where to go and a leader says,
‘Hold on, this is where we need to go.’ The fact that consumers don’t
ask about it is not a reason for the industry to be unethical.
WORTH & DOUGLAS
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sales@worthdouglas.com.au
worthdouglas.com
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“Are we leaders? Are we an ethical industry? If you say to me, ‘Well,
we are not really as we only have to be an ethical industry if our
customers ask for it,’ that is unacceptable by Rapaport standards.
Second point is, as soon as god forbid, there is a problem, then it’s
not just the reputational risk but it’s the tremendous damage that
would come as the governments would start looking at us. Then
people will start saying what are you doing? I think it’s wise to get
ahead of the curve and we should always keep a clean house before
people start to complain.”
Tied with the subject of ethics and transparency is the issue of ‘over-

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TONES & SILVER
WHOLESALERS OF QUALITY JEWELLERY
ESTABLISHED & TRUSTED SINCE 2003
grading’ diamond certificates and the potential to severely harm
consumer trust.
It’s fair to say that Rapaport went on a warpath in 2014 after banning
EGL grading reports from listing on RapNet.
About three years on, is Rapaport confident that grading reports are
more transparent?
“I think eliminating EGL was a positive step. People were not
happy that we were reducing income from some people but the
fundamental thing about honesty and integrity and recognising
that the industry needs to maintain its reputation remains,” he says.
“I think the issue of the over-grading has definitely improved
because people realised that we will not support it, and when we
stop supporting these kinds of grading reports, they in fact more or
less shut down.”
NATURAL VS SYNTHETICS
Regardless, Rapaport believes that many other “problems” still exist
in the industry.
One of the major advancements impacting the traditional natural
diamond industry is the rise of synthetics.
“THE ONE GOOD THING
ABOUT SYNTHETICS
IS THAT IT GIVES THE
NATURAL DIAMOND
PRODUCERS A KICK
IN THE BUTT.”
MARTIN RAPAPORT
Rapaport says consumer transparency is linked here too because
despite the powerful marketing campaigns, synthetic diamonds
are not identical to natural diamonds.
“That is a fundamental problem because the consumer is being
misled by thinking that synthetic diamonds are identical, when they
are not identical because there is no natural scarcity,” he explains.
Rapaport believes that there will never be a shortage of synthetic
diamonds, stating that production is only going to increase, which
will inevitably lead to a price collapse.
This, he continues, presents a challenge for retailers because they
could be selling a synthetic today for US$10,000 but as the cost
of production falls, that stone will have a value of US$100 in 10
years’ time.
“If your customer came back to you, it would look as though they
were dealt a bad hand,” Rapaport states. “So if retailers want to sell
synthetics, they need to tell their customer that the prices of these
things will probably fall significantly more than natural diamonds.”
Ph: +61 3 9587 1215
Email: info@stonesandsilver.com.au

MARTIN RAPAPORT
While this may be true, Rapaport says the natural diamond producers are not
communicating the ‘scarcity value’ in an effective way.
“The one good thing about synthetics is that it gives the natural diamond
producers a kick in the butt. So I think that’s excellent,” he states. “It’s high time
that the diamond mining companies took responsibility for their product
because essentially they are the people that claw back the profits.”
However, Rapaport says the matter is complex and references a recent
announcement by the Gem & Jewellery Export Promotion Council that it
would contribute US$2 million to the Diamond Producers Association – the
international group backed by mining companies and developed to promote
generic diamonds.
“I think it’s silly to give US$2 million to the mining companies because let’s say
the industry gets together and promotes natural diamonds.
“Let’s say there is a lot of demand for these [natural] diamonds because of the
promotion by the private sector industry [the non-mining sector]. Do you think
that the rough diamond suppliers are going to lower their prices or raise their
prices?” he asks.
“The story of the diamond industry is, if you get up there and you do too much
promotion of generic diamonds, then the diamond mining companies raise the
price and what you are doing therefore is creating higher prices for yourself.”
Rapaport believes that just as the industry shouldn’t be supporting synthetic
diamonds if there is no wish for that support, the industry shouldn’t support
generic natural diamonds unless there are assurances that the results of
investments will be available to those making the investments.
“Don’t plant trees if someone else eats your fruit,” he says. “If the private sector
here, the non-mining sector, spends money on generic diamond promotions,
and the mining companies raise the price then that’s not rational. I mean, people
can throw the money away, no problem, but it’s not fair.
“So if we spend money promoting it we should get the fruits of our money and
we should not see increases in rough diamond prices.”
Wrapping up his assessment of the current state of the diamond industry,
Rapaport says this is a period of re-assessment, re-configuration and re-doing.
“This doesn’t mean that there aren’t a lot of interesting changes taking place,”
he concludes.
Oh, and that bow tie was present, naturally. i
MARTIN RAPAPORT is the founder of Rapaport Group, an international network
of companies that provides a range of products and services. The Rapaport Price
List is said to have revolutionised the diamond trade by providing an independent
benchmark that the global diamond industry uses to standardise, compare and
negotiate prices.

CUSTOMER EXPERIENCE
Defining the
customer
great
experience
ALL RETAILERS WANT TO
PROVIDE A ‘GREAT CUSTOMER
EXPERIENCE’ BUT HOW MANY
DELIVER ON IT? DAVID ALLEN
OUTLINES WAYS TO ACHIEVE
THE HOLY GRAIL OF RETAIL.
irst of all, it is important to understand that customers – not retailers
– build brands; however, if every retailer knows that being obsessed
with their customer is the key to success, why aren’t more retailers
outrageously successful?
What is it about the ‘name above the door’?
Jewellery retailers should ask themselves: what does the customer see when
they are in the store and how do they feel when they visit and leave the store?
Everyone subliminally measures the experience they get when making a
purchase from a store. This reaction can be categorised in three ways:
1. The experience was incredible
2. The experience was indifferent
3. The experience was terrible
Most experiences are unfortunately indifferent, and what many retailers
don’t realise is that all of these retail experiences are linked to how their
customer is made to feel rather than what was purchased or what they
paid for the product.
Many retailers today underestimate the importance of the consumer’s trust
and loyalty in connection to the store’s brand, and I believe this is linked to
their failings.
December 2017 Jeweller 17

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While an amount of this trust is built around how a retailer markets
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need to engage with their teams.
Store managers need to be encouraged and empowered
to deliver the experience that they believe will transform
an indifferent or terrible experience into an incredible and
unforgettable experience.
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This is a pretty big statement, but let me explain, and actually
contrary to popular belief, it is not that difficult to understand or
implement. There is no need for process manuals or endless volumes
of training materials.
What is needed, and this is the critical part of the recipe of a great
customer experience, is of course great people.
Although this sounds a little cliché, it is the one area that retailers
seem to have difficulty understanding and which to manage its
importance even though they would all suggest that it is a focus.
The two key ingredients are great store managers and, for those
retailers with multiple stores or a chain, great regional managers.
There are a number of different names for the role of regional
manager – area manager is another – but let’s refer to the position
as a regional manager for the sake of this discussion.
Many retailers talk about the importance of store managers but
understand less about what makes a great store manager.
Further, regional managers are rarely talked about, mentioned,
nor given focus. The reality is that this role is critically important;
a great regional manager can have an enormous influence on the
profitability of a retail business, and a bad one can really do a lot
of damage because of their influence on the store manager.
GREAT STORE MANAGERS
The very best store managers are those who are the best at three

CUSTOMER EXPERIENCE
core competencies: selling, being a
merchant and coaching.
In a small footprint retail store everyone
contributes, and the store manager must
be the most visible person to customers.
Retailers should be very wary of the store
manager who does not want to be on the
shop floor. Store managers should be one
of the best sales people within the store day
after day and week after week.
In order to maximise sales, they need to
understand how to utilise the real estate in
their store to best present the products they
are selling and they also need to be great
coaches as they are responsible for a team
of people and the working environment
that they create for them.
GREAT REGIONAL MANAGERS
The very best regional managers are those
who are the best at the same things that a
great store manager is great at: selling, being
a merchant and coaching.
If they are not great at these key
competence areas then how do they, or
could they, set the right example for the
store manager and the team to follow?
How can they coach a store manager to be
a better salesperson if they themselves are
not a great salesperson?
In addition to these three core
competencies, a great regional manager
needs to have strong competence in the
areas of business acumen, leadership and
negotiation and influence. They are, after
all, responsible for a number of stores, and
there is a much higher level of profit and loss
accountability, stakeholder management
and leadership.
A great regional manager also needs to be
present, genuine and effective.
What does it mean to be effective? This
is important as the way that a regional
manager uses their time has a big impact on
how empowered a store manager feels.
A regional manager’s number one priority
is the store manager; the centre of their
focus is the store manager, while the
team members in the retail store are the
responsibility of the store manager.
Many regional managers don’t understand
this concept, which can degrade
empowerment for staff members.
It is the regional manager’s role to coach
the store manager to manage their own
team and this should include training on the
recruitment of store teams.
The very best regional managers work
with the store manager in such areas and
decisions, empowering them to choose their
own people.
Some regional managers don’t understand
the difference between coaching and doing.
The regional manager does not run the
store, the store manager does.
So, jewellers who have empowered great
store managers and regional managers have
some of the critical ingredients to a great
customer experience.
LOSE THE ‘WAY OF SELLING’
For a great customer experience, retailers
don’t need the overused ‘five step’ sales
structure. In fact, retailers don’t need
a selling process or a physical mystery
shopping process, which is archaic because
it is not real!
They need to empower store managers to
look after their customers. The definition
of a great customer experience is individual
to every store. Let the team be the best
version of themselves, making sure that they
understand it is okay to do so.
A customer recalls a great experience
because a team member was genuine in
their approach, not because a team member
asked an open-ended question.
Empowerment, however, must be
supported by knowledge otherwise it
is irresponsible. It is the storeowner’s
responsibility to provide the knowledge
– great store managers and great regional
managers need to be developed.
GREAT CUSTOMER EXPERIENCE
Let’s summarise the philosophy of a great
customer experience:
• A great customer experience is the
responsibility of the entire organisation.
Retailers who want to engage with
customers need to engage with their
team, because, as previously mentioned,
what the customer is saying is directly
related to how employees feel about
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CUSTOMER EXPERIENCE
where they work. The stores should be positioned as the beating heart
of the business and store managers should be openly empowered to look
after their customer. Where possible, retailers should recruit ‘their customer’
so they can then sell to the customer. Employ people who love the store’s
brand, or if they are unfamiliar with the store’s brand give them a reason
to love the brand by treating them well. Focus should be placed in the
areas of compensation, incentives, reward, recognition as well as learning
and development.
“WHERE POSSIBLE,
RETAILERS SHOULD
RECRUIT ‘THEIR
CUSTOMER’ SO THEY
CAN THEN SELL TO
THE CUSTOMER.”
• Selling skills are very important because, after all, in retail that is what
retailers do – they sell. Developing a toolbox of training materials with a
selection of selling tips and skills needs to be created and utilised. Jewellers
don’t need a ‘way of selling’ – the steps of the sale or a sale process –
they need some practical selling advice, a great working environment
and to be empowered to look after their customer. It is as simple as that.
• Measure the customer experience in the right way. Measure the financial
results and find a way to measure how the customer was made to feel.
An important part of this is making sure that the team works within the
boundaries of a small number of financial KPIs. Simplicity is key and the
store’s team should be measured on a small number of financial KPIs.
Providing customers with a great experience is the role of every person
employed by the business. Recruit people who are passionate – or are
given a reason to be passionate – about the store’s brand. Provide the team
with skills and the know-how to measure the experience, as well as the
financials and KPIs, and empower retail store managers to deliver a great
customer experience for their customers. i
DAVID ALLEN is president of Pandora’s EMEA (Europe, Middle East, Africa) region.
He was appointed to this newly created position in 2015 and prior to that, was
Pandora Australia and New Zealand president. Before entering the jewellery
industry, Allen had extensive experience in Australian retail, having worked for
companies including Pretty Girl Fashion Group, Woolworths and Colorado Group.
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NEW NORMAL
Prospering in the
New Normal
THE RETAIL LANDSCAPE HAS ALTERED FOREVER
AND DRAMATIC CHANGES ARE STILL EXPECTED.
COLIN POCKLINGTON REPORTS ON HOW
JEWELLERS CAN BEST ADAPT TO A CHANGING
MARKET IN ORDER TO SURVIVE AND THRIVE.
ost readers will remember the look of happy consumers circa 2009;
however, there have been less of those in the years since and this
article will explain why as well as how local and international trends
have come together to impact the jewellery industry.
I started tracking Australian jewellery and watch sales in 1982 and Figure 1
(See page 22) shows the period from 1982 to 2009.
In 2002, I noticed there had been an increase in real income for the average
Australian and the industry was on a path of growth. At that point there was
a tremendous opportunity for jewellers to increase the sales of luxury goods,
particularly diamond sales. As Figure 1 indicates, the average jeweller from about
2002 onwards achieved very good growth and much of that was due to increased
diamond sales.
Then of course the global financial crisis (GFC) hit in 2010 and I predicted the
industry would need strategies to survive in a ‘slowing’ economy. I expected that
the economy would for some time be quite slow; that prediction was correct but
it was also for a lot longer than I had anticipated.
Tracking jewellery and watch sales after this period, Figure 2 (See page 22) shows
that sales dropped slightly to about $3 billion by 2012; however, were back above
$3 billion by 2016.
In the financial year just ended, which is not shown in Figure 2, there will be a
6-8 per cent drop in jewellery sales. Seven years of static sales, and now a drop
is putting a lot of pressure on the industry.
REASONS FOR THE FALL
International gross domestic product (GDP) growth has halved since the GFC,
which means the whole world has been affected to some extent. This is because
of lower population figures, the retirement of Baby Boomers, a decline in labour
force participation and the fact that technology/innovation has been primarily
used to steal market share, rather than drive growth in jobs and thus not adding
wealth to the world economies.
When putting my analysis together in June this year, Australia had the third
highest household debt to GDP, as seen in Figure 3 (See page 24). It was twice that
of the G20 (20 largest economies), twice as bad as Europe and 50 per cent worse
than the US. Since Figure 3 was produced, Australia has moved into second place.
Unemployment rate in Australia is 5.7 per cent; however, the more important
figure is that 26 per cent of people are ‘under’ employed – they’ve got part-time
or casual jobs and they’re not getting the sufficient number of hours they need in
a week to cover their living costs.
Interest rates have been low for many years and everyone is concerned what
will happen when they start to increase, which they inevitably will at some point.
An interest rate increase from 4 per cent to 5 per cent might not seem much – it’s
only 1 per cent – but that means a 10 per cent increase in repayments to the bank
each month.
Online retail sales is an influence as well, with Australian online sales in the year
ended 2015/2016 being about $20 billion or representing 6.7 per cent of total
retail sales.
We’re also currently going through another revolution. We’ve had the agricultural
revolution, the first industrial revolution, the digital revolution and now the
technological – or fourth industrial – revolution. This one is affecting or disrupting
almost every industry around the world and there are more changes in the years
ahead with artificial intelligence, robotics, autonomous vehicles and 3D printing.
The impact of 3D printing is going to be huge – many things purchased in a few
years won’t require anyone to physically visit a store to make a purchase; they’ll
simply download a program and print a product using their own 3D printer.
Australia’s national accounts indicate that roughly 80 per cent of the average
spending by population is on essentials – rent, loan repayments, food, health,
power and so on. That leaves about 20 per cent for non-essentials like expensive
clothing and jewellery.
Now in the past four or five years, there’s been negative wage growth in real terms.
Wages haven’t gone up enough and so the average person has had a 1-2 per cent
decrease in their income in real terms and they’ve come from $100 down to $98 –
December 2017 Jeweller 21

FIGURE 1. AUSTRALIAN JEWELLERY AND WATCH SALES 1982-2009
Karl Lagerfeld Jewellery - Just Released
FIGURE 2. AUSTRALIAN JEWELLERY AND WATCH SALES 1990-2016
these numbers are for the purpose of making a simple comparison in
the calculations.
Figure 4 (See page 24) shows that consumers still have to spend the
same amount of money on essentials, which means they’re $2 short
or 2 per cent short on their spending for non-essentials. In this
example, the consumer’s non-essential spending falls from $20 to $18,
which is a 10 per cent reduction. That small decrease in real income
has a more profound effect on discretional spending.
What’s currently happening is that at the same time that the cost of
essentials has increased, the real income has dropped by about 1-2
per cent and the amount of money spent or available to spend on
non-essentials has decreased by about 15 per cent.
In addition to pressures in the local economy, the consumer is also
stressed because of world unrest and globalisation.
FIVE MEGATRENDS
This leads to the five megatrends driving the disruption and which
will be in full force by 2025.
The first is ‘rapid urbanisation’ – 60 per cent of the world’s population
will live in one of 60 ‘mega cities’ around the world by 2025, including
Sydney, Melbourne and Brisbane.
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At the same time there will be 80 billion communication devices in
the world and it’s said that the average person will own as many as
five, which means that shopping is going to be influenced even more
by digital means than it is now – welcome to the ‘digital age’.
‘Resource scarcity’ is another megatrend, where energy prices will
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NEW NORMAL
increase. There will be a ‘shift in economic
power’ as India will be the next country to
grow rapidly with the third largest GDP. Asia
and Africa will also expand rapidly.
A ‘demographic change’ is at play as well.
People will live longer and have fewer
children. A few years ago in Australia, there
were four employees for every retiree but
by 2050 there is going to be 1.5 employees
per retiree.
Globalisation has brought challenges and
opportunities. While reduced transportation
barriers and communication costs have
resulted in new markets, there’s been a
disruption of labour-based markets – evident
in the Australian car manufacturing industry,
which has moved offshore.
Then we come to the retail disrupters.
Companies entering Australia, like Amazon
and Alibaba, are agile, innovative competitors
finding clever ways to launch into the market,
and the jewellery industry has to do the same
– it has to be smarter.
Interestingly, 40 per cent of people still
consider shopping a chore because of
difficulty in finding a product, long checkout
lines, inability to locate items and poor
service. While 93 per cent still buy from bricksand-mortar
stores, 7 per cent are buying
online. That’s a lot of trips that people aren’t
making to a shopping centre because they’ve
already bought something online. This is one
of the reasons why shopping centre foot
traffic has been falling for the past few years
and why many jewellery stores have been
able to renew leases this year for equal or
lower rates.
Amazon issued a statement in the Sydney
Morning Herald in April that stated: “We’re
going to destroy the retail environment
in Australia.”
Before launching its operation in Australia,
it’s understood that Amazon will study
the market, collecting price-points on the
products it will sell, and then set prices at
30 per cent less.
The retail giant is all about gaining market
share; however, once it achieves huge
worldwide market share, prices will
inevitably increase.
While Amazon sells jewellery in several
regions, it is understood that it won’t initially
introduce the category in Australia … but
one has to assume it’s only a matter of time
before it will.
A recent jewellery search on the company’s
US site showed 52,000 bracelets, 54,000 pairs
of earrings, 54,000 necklaces and the list of
offerings goes on. The choice is enormous
and I think this retail behemoth is going to
cause considerable concern for chain stores
or any jewellery store selling what I call a
more generic product.
Now looking at the poor old jewellery store
with its stressed customers.
For a typical independent jewellery business
profile, based on an average of the figures
I’ve looked at, sales are about $500,000, with
profit before tax usually averaging about 5
per cent or 7 per cent of sales.
If all the market changes and disrupters
previously discussed affect the average
store by just 10 per cent of sales, provided
expenses remain the same, then it will
basically break even. A 15 per cent drop in
sales would put most jewellery stores at a
loss. Jewellers can’t afford to lose even 10
per cent of sales; they have to find a way to
maintain and possibly increase sales.
A LOOK TO THE FUTURE
Here is an overview of the main changes
that will occur in retail.
There’s going to be even more cross-border
business-to-consumer commerce. According
to Amazon, this business structure will
increase 34 per cent in the next five years.
Several years ago, there used to be
manufacturers in Asia and an agent and
then there was a local importer and a
wholesaler and a retailer and a consumer.
That’s flattening right out. More businesses
producing products are trying to find ways
to sell directly to consumers and cut out the
middleman, and it’s only going to increase.
There’s also more global competition coming:
a number of global retail chains, particularly in
fashion, have already entered the market but
more are on their way from various industries.
What many people don’t realise is that bricksand-mortar
store sales are more profitable
than online sales. It’s not good business sense
to transfer a profitable sale from a bricks-and-

FIGURE 3. GLOBAL ANALYSIS OF HOUSEHOLD DEBT TO GDP
FIGURE 4. A SMALL FALL IN REAL INCOME IMPACTS DISCRETIONAL SPENDING
mortar store to an unprofitable sale, or a less profitable sale, on an
online environment.
As previously mentioned, the prevalence of 3D printing is going
to increase.
Another big factor is social proofing – social media reviews and thirdparty
ratings that influence buying decisions. This is going to be much
more powerful than traditional mainstream media, which reaches less
than half of the people it did 10 or 15 years ago.
The good news is that bricks-and-mortar stores still have a big
advantage over online retailers as they can provide more effective
personal advice.
The opportunities for bricks-and-mortar storeowners is that they will
attract a lot of customers if they can offer a really well presented store,
really well trained staff and a great experience.
RETAIL ‘101’ FOR TOUGH TIMES
There are four areas that retailers should concentrate on during a
downturn: basics and controls; costs; cash conservation; and maintain/
increase sales.
Let’s start with complete financial control. Jewellers need to be very
aware of their gross profit (GP) percentage rate, particularly if they have
a workshop.
Most costs are okay for many small businesses in this industry;

NEW NORMAL
however, it’s important to make sure that
particularly labour and rent are within the
industry benchmarks. The average rent for a
jewellery store should represent about 13.7
per cent of sales. If rent is above that, which it
could be if the store is at a Westfield shopping
centre for example, then the business would
need to spend less in advertising with labour
costs being about 18-22 per cent of sales.
I mentioned GP because a lot of stores have
workshops (manufacturing bench) and if the
storeowner has jewellers working for them
or if they’re the jeweller then they need to
make sure they know the workshop’s GP. The
workshop needs to recover the full labour
and running costs plus a wholesale margin
of 25 per cent.
The next point is to conserve cash. In tough
times, retailers must conserve cash so always
accept interest-free financing if available.
Conserving cash also means managing stock
even better than before. In other words, look
at the stock-turn rate of the major product
categories and find a way to improve them
if they’re outside industry benchmarks.
Once all of that is in place the focus is to
maintain or better still, try and increase sales.
The whole focus in tough times has to be
marketing in order to maintain and increase
sales. Marketing must be the focus given
jewellery is an industry with a higher margin
and very low stock-turn rate.
ADDRESSING CHALLENGES
With less foot traffic, retailers have to find
a way to increase their hit rate for the
customers that do visit the store. If the
business is getting four sales out of 10,
then it needs to increase that to five out
of 10 or more.
Customers are seeking custom-made
merchandise, in a greater proportion
to off-the-shelf product, and/or greater
personalisation of products. This trend
actually started about seven years ago but
it’s going to increase a lot in the years ahead
and jewellers have to gear themselves up to
allow for more custom work.
International management consultants
McKinsey & Co issued this statement in
April: “The future is handmade. Younger
consumers are embracing handmade crafts,
including jewellery, like no time since the
advent of mass production. As jewellery is
fundamentally a form of self-expression,
the segment is ripe for bespoke disruption.”
The firm studied the retail jewellery industry
worldwide and that’s what they believe the
sector should be embracing – the growth
in handmade, designed jewellery.
Reduced discretionary spending forces
retailers to address what is in the cabinets
and windows. Jewellers must always carry
some lower-priced items to make the stock
look affordable, and thus get people in the
door. This doesn’t mean lowering the price
for everything or bringing in cheaper stock
but it does mean finding some focal areas
with lower price points to make people
realise they can shop in the store.
As 83 per cent of people do research online
before they buy from bricks-and-mortar
stores, it’s essential that every jeweller has
a good website and that it’s mobile friendly.
Stores also probably need to reduce their
diamond jewellery inventory. The average
stock-turn rate in diamonds for most people
in this industry is pretty poor – it’s probably
closer to 0.3 or 0.4 and it really needs to be
about 0.8.
Consumers have been driven by a need for
convenience but they also want or appreciate
a more differentiated and seamless
experience offline and online.
Today’s consumers want what they want,
when they want it.
Jewellers will need to be so much better at
whatever they do now than they were even
one year ago because we are going through
what I call a transformation of discretionary
retail. This is not just in Australia but also
around the world and everyone will have to
make themselves fit.
Sadly, some businesses won’t get through the
next 12 to 18 months; however, those that do
will probably come out the other end a lot
stronger. Welcome to the New Normal. i
COLIN POCKLINGTON has more than 40 years
of experience in strategic and business planning
in the retail jewellery industry. He is co-founder
of Australia and New Zealand’s largest buying
group Nationwide Jewellers.
www.collectivedesigns.com.au
sales@collectivedesigns.com.au
+61 (0)2 4367 3922

X FACTOR
ALESSA JEWELRY ANDRÉS GALLARDO BUTANI
Beauty
in the details
IN-STORE DESIGN IS A MAJOR INFLUENCER OF CONSUMER
PURCHASING DECISIONS BUT FINDING THE RIGHT VISUAL
STRATEGY ISN’T ALWAYS EASY. TALIA PAZ SCOURS THE GLOBE
IN SEARCH OF JEWELLERY STORES WITH THE X FACTOR.
hat are consumers seeking when they enter a jewellery store?
Aside from the obvious assortment of product, consumers
expect to enter an environment that reflects the attributes that
the business ‘stands’ for. A combination of the look, feel and smell
of a store arguably plays a large role in helping to make a customer
feel comfortable and ultimately make a purchase. The word ‘experience’ is
thrown around a lot but surely for good reason.
Kevin Linberg, head of design at global retail design agency Sheridan & Co, says
telling the business’ story in a clear and compelling way is critical to making a
solid first impression.
“Your brand needs to be reflected in the design and visual merchandising,”
Linberg states. “A strong and inspired design language that considers the use
of materials, motifs and lighting will establish what makes your brand unique
and will communicate this to customers.”
Sheridan & Co retail strategist Alice Bodkin believes jewellers should factor in
the important role emotion plays within the consumer journey.
“How does the brand want the consumer to feel? Excited, uplifted, educated?”
Bodkin asks. “By reflecting upon this, the retail space can be created to achieve
an emotive context that nurtures a memorable and lasting impression.”
Carol Bagaric, founder of visual merchandising consultancy Carol B, has similar
sentiments. “As a jewellery purchase is often made with the heart and not the
mind, it is imperative that the environment within a jewellery store speaks to
this type of purchasing behaviour,” Bagaric says.
“Lighting, seating, ambience, store fit out, layout, graphics and signage – and
staff! – should all be conducive to entertaining and indulging the customer as
they make some of the biggest and most emotional purchases of their lives. It’s
a special purchase and a very personal one; therefore, the store should reflect
this type of environment.”
On that note, Jeweller has collated some of the world’s most intriguing jewellery
stores and asked those involved in the design to shed light on how it has been
used to create a shopping environment that leads to sales. Not all retailers will
have the budget for a major store revamp; however, there is certainly value in
gaining inspiration and analysing where potential improvements could be made,
even if that simply means giving the walls a fresh coat of paint.
26 Jeweller December 2017

Andrés Gallardo
Name: Pablo Limón
Position: director of architecture,
Savvy Studio
Country: Spain
When did the store open? The store was inaugurated in May 2014.
Who is the target market and how did they influence the store design?
Andrés Gallardo is quite an established and well-known jewellery designer,
so the target audience was for those who wanted to explore the brand in
a more intimate setting. That is the reason we combined the showroom
with the workshop – we wanted to create something experimental so we
decided to really focus on creating a design that is mobile and flexible.
Creating modular pieces using materials such as marble and wood was a
way to change the layout of the store easily and as often as desired.
Alessa Jewelry
Name: Alessandra Robles
Position: designer and co-founder, Alessa Jewelry
Country: Guatemala
When did the store open? We opened our store in August 2015.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage sales? One of
the main things we focused on was the use of strong materials to coincide
with the bold aesthetic of the jewellery. The use of wood and marble
against the jewellery is clear and to the point. The mobility and modular
characteristics are a physical reflection within the store of the layers to the
pieces created by Andrés. All small display pieces allow the jewellery to be
displayed vertically and horizontally, creating a sense of flexibility in the
way the jewellery is displayed. It is not only about displaying the jewellery
but also activating the space.
What is the store design’s ‘wow’ factor? The wooden boxes that
can be pulled out were the key pieces for us. They are the most convivial
and simple but the most impactful. They create a sense of unveiling
for the customer.
Who is the target market and how did they influence the store design?
The Alessa woman is curious, fashionable, vibrant and modern. She is
worldly and connected and looks for great design and craftsmanship.
Our purpose is to offer a luxury jewellery experience through minimal,
versatile and modern designs that are key influencers seen through the
design of the store.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage sales?
The store has an airy aesthetic with pastel tones, soft curves and geometric
golden features where the consumer can shop in a cosy environment.
From custom-made wood furniture and cushioned seats to the beverages
and surprises that we offer – the store ambience is a balance between
minimalistic and edgy, achieved through a mix of organic and natural
materials. We also have a customised bamboo store scent, which is
reminiscent of a journey in paradise, a journey not to be easily forgotten.
What is the store design’s ‘wow’ factor? The artisanal curtain made by
local women from Guatemala. Alessa loves to empower underprivileged
women and helps to provide better lives for them. What this rope curtain
represents is the hard and creative work of artisanal women who Alessa
values, admires and supports.

Baccio Jewellers
Name: Rod Faucheux
Position: director, Loopcreative Studio
Country: Australia
When was the renovated space completed? February 2015.
Who is the target market and how did they influence the store design?
There is no particular age demographic; however, the clientele shopping
at Baccio come seeking pieces that are both timelessly modernistic and
individualised. We needed to design a space offering a unique setting
where those ideals and characteristics could be easily seen. Baccio has
been in business for more than 40 years so we needed to make sure the
new store design felt natural to existing clientele, whilst still inviting new
shoppers to discover the brand.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage sales?
Baccio specialises in bespoke jewellery and engagement rings, so it’s
only natural that we should design an interior that is sensitive to what
is being created inside the space. A potential consumer feels
immediately confident approaching the store, viewing the beautiful
jewellery-like façade, brass cantilevered counters and Italian marble
flooring. The customer can immediately sense that the materials are
stylish, contemporary and impeccable in quality. The store itself is a
crafted, unique piece of art, just as the handmade jewellery it retails.
What is the store design’s ‘wow’ factor? The shop front façade is the
element that really draws you in with its dramatic, iconic and elegant
appeal. The façade concept was influenced by a necklace that the owner,
Mario Zamel, had in the store. We mimicked the geometric shape of the
necklace throughout the steel work and suede-lined display boxes in
the shop front. The metal mesh curtain layered behind the contrasting
framework feels like the skin behind the necklace and warms up the
visual hardness that the steel work implies.

Butani
Name: Stefano Tordiglione
Position: creative director, Stefano Tordiglione Design
Country: Hong Kong
SamsGroup.com.au
ssales@samsgroup.com.au
02 9290 2199
When was the renovated space completed? The space was renovated in 2015.
Who is the target market and how did they influence the store design? The Peninsula is one of the top
luxury hotels in Hong Kong. The visitors and guests are affluent with fine taste of quality; they travel a lot
and have a good understanding and exposure to luxury life. The aim is to make an elegant and high-end
boutique to attract these customers.
With the relationship between store ambience and consumer purchasing in mind, which features in the
store encourage sales? As most of the customers are women (obviously), it was important to create a warm
and welcoming space so customers could relax. The overall brown/beige colour is comfortable in leather,
wood and metal. A large piece of marble is used at the façade to highlight the luxury of space. The secret of
making the space comfortable also lies in the use of thick carpet – every woman knows how good it feels to
walk on thick carpet after a long day of shopping.
What is the store design’s ‘wow’ factor? The use of mirror and reflective materials; the shape of our boutique
is narrow and long, which made the design challenging. We have incorporated mirror and mirrored-finished
materials to enlarge the space.
Denovo Diamonds
Name: Caryll Martinez
Position: creative director, Denovo Diamonds
Country: Philippines
When did the store open? The Denovo Diamonds flagship
store opened in June 2016.
Who is the target market and how did they influence the store design?
Our target market is men. Specifically, men who buy jewellery for
women, whether it is for proposals, weddings or anniversaries.
Denovo Diamonds developed a unique store design that is sleek
and architectural so that men passing by would gravitate towards
our store and would not feel intimidated when they walked in.
We don’t want just to sell product; we want consumers to have a
memorable experience.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage
sales? Denovo’s store design deviates from the natural norm
of a jewellery store where one would find its staff behind glass
counters. This little change allows more interaction between the
customer and our jewellery consultants, making the sales process
less overwhelming. There is a consultation area at the back of the store where
clients can sit in privacy. We also see diamond jewellery as comparable to art in
that the jewellery is displayed and laid-out in a way that resembles an art gallery,
contributing to our very unique and luxurious store ambience.
What is the store design’s ‘wow’ factor? The definite ‘wow’ factor in our store
is the three-dimensional walls that have black glass mounting with white,
triangular light boxes. These resemble the facets of a diamond and the black
glass accents the white showcases to draw the consumer’s eye to the products.

X FACTOR
FOR ALL PLAIN BANDS
Hirsch Jewellery
Name: Lone Visby Olsen
Position: co-owner, Ehlers & Visby Metal Design Studio
Country: Denmark
When did the store open? Hirsch Jewellery opened its doors in
September 2015. Since then, we [myself and husband and co-owner
Jan Ehlers] have continued cooperating with the business whenever
new needs or ideas arise. It is definitely an on-going collaboration.
Who is the target market and how did they influence the store
design? Hirsch Jewellery is mainly aimed at people looking for a
piece of jewellery that matters and will last forever. Customers are
inspired by creative, innovative design. They demand jewellery
made of honest and exclusive materials. They perceive themselves
as unique, creative and interested in design and the décor should
reflect this. Ehlers & Visby specialises in contemporary retail design,
handmade from luxury-recycled materials, primarily consisting of
naturally-patinated iron and metals with rough, textured surfaces.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage sales?
Storeowner Susanne Rosenberg agrees that it is a combination of
the surroundings, good service and, of course, the jewellery. If she
had to choose a décor detail that encourages consumers to make a
purchase, it would be the vitrine consoles that exude exclusivity and
good craftsmanship.
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What is the store design’s ‘wow’ factor? We asked the storeowner
to nominate one ‘wow’ factor and she promptly said: “The vitrine
consoles and, in a sharp second-place, the new outdoor landmark
sign.” It is our prime task to make bespoke furniture that the
customer desires so, for our own sake and for the sake of the
company, this is the furniture of which we are most proud.
since 1966
since 1966
TWM
TWM
Co
PROUDLY AUSTRALIAN MADE JEWELLERY & EXPERTS IN REFINING
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since 1966
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03 9547 3113
65 Roberts Avenue,
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Contact info@twmco.com.au
www.twmco.com.au
Instagram @twm_co
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Boston Offices:
333 Washington St, Ste 521, Boston MA 02108, United States

Luxe by Hugh Rice
Name: Lloyd Blakey
Position: founder and creative director, Innovare Design
Country: England
When did the store open? The store was completed in October 2016.
Who is the target market and how did they influence the store
design? Buyers of fine jewellery and Swiss watches who are
predominantly local to the East Yorkshire region. The market is
discerning and demands high service levels as well as un-rushed
private consultation. This drove the store layout and we opened up
the space to allow for more discreet consultations and to facilitate
a high-end boutique feel.
With the relationship between store ambience and consumer
purchasing in mind, which features in the store encourage sales?
The store design needed to provide the perfect showcase for the
luxury jewellery and watches on display. We opened sight lines
by removing walls and accentuating the new spacious feel with a
lime-washed oak herringbone plank floor bordered by a sumptuous
silver-grey carpet. Lighting plays an important part in creating the
right ambience – we introduced dramatic, glittering chandeliers
in the entrance atrium to herald a sense of arrival. Elsewhere,
delicate cut-glass pendants provide focus and intimacy over private
consultation desks.
What is the store design’s ‘wow’ factor? It’s difficult to extract one
element as everything is designed to work together; however, with
high levels of service at the heart of Hugh Rice’s success, I think
the private-consultation areas are a favourite of mine – the luxury
detailing, the warm light from the cut-glass pendants and the
modular wall-panel display that accommodates key promotions
and hero pieces all come together beautifully. i

GEMSTONE FACETING
High-quality
FACETING
is the way of the future
SPESSARTITE BY DMITRY STOLYAREVICH
THE COMMERCIAL REALITIES OF GEM-CUTTING MEANS
THERE IS LITTLE EMPHASIS PLACED ON HIGH-QUALITY
GEMSTONE FACETING. VICTOR TUZLUKOV DISCUSSES WHY
THIS IS DETRIMENTAL TO THE INDUSTRY AND ITS FUTURE.
oday there are not many well-faceted gemstones on the market.
Aiming to obtain as great a carat yield as possible from an
irregular piece of rough, using various methods to squeeze one
of several classic cuts out of the gemstone while bypassing visible
inclusions at the expense of symmetry, a gem-cutter aims to give
a gemstone a finished look.
Since each carat is real money, gem-cutters and sellers shut their eyes to optical
defects. As a result, most gemstones that leave the hands of these gem-cutters
have a ‘window’ in which any objects in a gemstone become visible. The area
around the window looks dark, hence it reflects the surroundings, and the angle
of the side facets near the girdle is too big. Such an approach to gem-cutting
has become the norm.
This is curious because the main task of a gem-cutter is not to make a gemstone
more beautiful with a desire to save its weight but to make it heavier with a
desire to save its beauty; however, the high price of gemstones is caused not
just by their rarity but mainly by their beauty – a commercial component always
prevails over aesthetics.
PRICING SEGMENTATION OF GEMSTONES
There was a time when the status of a person was characterised by the weight
of gold hanging on him or her. Sometimes, even now, simple gold jewellery is
sold by weight; however, wealthy people are drawn to the refinement and the
originality of the design, the harmony and beauty of jewellery, the perfection
and the accuracy of its craftsmanship.
There are four main price categories on the market: low-quality (mass)
manufacturing, high-quality (luxury) industry, famous brands and
exclusive masterpieces. Prices increase by some five to 10 times from
category to category.
We live in interesting times; improvements in faceting equipment enable us to
make a qualitative leap in gem-cutting and advance from the level of handicrafts
to art. It is no secret that each step is not easy to undertake. One of the biggest
obstacles is the barrier in the public consciousness. To be precise, the step from
just a ‘jewellery insert’ that will vary from a brooch or a ring to the high-level
term ‘gemstone’ for which the same ring will serve as a mounting underlining
its beauty and magic. In other words, the most important aim of cutting is
displaying the beauty of a gemstone.
In Asia, we hear about names such as Nomad, Yavorsky, Leopard Gems and
so on. In Europe, masters from Idar-Oberstain traditionally set the pace and
they are followed in the New World by the bright masters, among whom we
find John Dyer, Michael Dyber, Jeff White, Dalan Hargrave, Tomohiro Karino
and Stephen Kotlowski.
32 Jeweller December 2017

Brands do not appear from nothing,
especially when appearing in different
parts of the world simultaneously, and their
appearance reflects market tendencies.
In this case, we can speak about the
much higher growth of prices for wellpolished
gemstones in comparison with
commercially-faceted gemstones. When
this price difference exceeds the cost of
rough losses as a result of high-quality
polishing then faceting becomes profitable.
All gemstone market participants know
that it is becoming more difficult to sell
commercially-faceted gemstones – badly
polished, to put it bluntly – and often it is
becoming necessary to recut ‘barrel-shaped’
gemstones that have a bulgy pavilion.
You may hear the following opinion: if a
gemstone is precise, symmetrical, perfect,
it becomes faceless and that some small
defects are necessary to bring the charm of
peculiarity to a gemstone. I consider that
the originality of a gemstone is a
combination of material, colour, clarity,
size, polishing and optical characteristics…
but defects? No way. It is hard to consider
a face with a squinting eye or a droopy
nose charming. These are excuses for those
who don’t want or cannot make highquality
gemstones and those for whom it is
convenient to use what the market offers.
ADVANTAGES OF FACETING PROPERLY
No matter how convenient it is for dealers
and jewellery manufacturers to use outdated
standards to justify low-quality faceting,
higher prices are demanded for the bestquality
faceting and there are always buyers
who are ready to pay more.
So what is the value of high-quality cutting?
First of all, high-quality gem cutting ensures
the perfect flatness of facet surfaces that
increase a gemstone’s ‘fire’ due to virtual
prisms formed by the facets. I have actually
observed good fire even in pieces of quartz
if they are faceted with high quality.
Fire produces inimitable sparkle – light
patches of colour different from the
main colour of a gemstone – and is one
of the most considerable advantages of a
faceted gemstone.
The second advantage that is directly bound
with the first one is sharp edges between
facets. When edges such as a knife blade
don’t reflect light, the gemstone looks ‘wet’
– each facet reflects light in its own way and
the shining edges don’t attract attention.
Thirdly, strict symmetry makes a gemstone
more harmonious and pleasant to view.
One gemstone amateur expressed it thusly,
“I buy beautiful gemstones to admire and
enjoy them but when I notice inaccuracy
instead of happy contact with the gem,
I think to myself, ‘How could a negligent
gem-cutter spoil such beauty?’”
Fourthly, the main colour of the gemstone
is better seen when there is no window in
it as the background doesn’t interfere with
the perception. Finally, the fifth advantage,
which may influence gemmological
characteristics together with the fourth one,
is the absence of a grey compound of colour
appearing when light diffracts on surface
defects. This factor may increase visible
colour saturation up to one grade on the
Gemological Institute of America (GIA) scale.
IMAGE COURTESY: DMITRY STOLYAREVICH
IMAGE COURTESY: SERGEY PRYANECHNIKOV

The last statement needs
explanation because it is
very important.
IP026P-9YG
IP011E-9YG
GENUINE
CULTURED
PEARLS
SAMPLE OF AUTHOR’S CERTIFICATE WITH
CUT GRADING BY VICTOR TUZLUKOV
Polishing leaves
scratches on the surface
of a facet comparable
with the size of used
abrasive. The density
of such scratches is
usually high and the
surface becomes
‘glossy’ when light
goes away from it.
The explanation is
partial light diffusion
reflected by the uneven surface at different angles. The more the
surface is uneven, the more diffusion it produces. The surface is not
lit regularly under such deflection of light waves because the dark
surrounding objects are visible in the light background of reflection
in some microscopic areas.
I used to hear, “Who needs perfect polishing and exact meeting
points? Nobody will see it anyway!” This is not correct. The human
eye is a perfect optical instrument that sees many details our brains
don’t realise but which influence the level of sub-consciousness
to create an impression. It may happen that one of two similar
gemstones would not attract attention while the second is one you
would like to take in your hands and never leave. This is the way we
respond to a gemstone’s harmony. Harmony and its consequence –
the impression – are sufficient reasons for increasing the price.
IP339R
IP068NSS
www.ikecho.com.au
BOOSTING VALUE THROUGH BETTER CERTIFICATION
Let’s look at the difference that faceting can make to a gemstone’s
price. At a gemstone show, one may find wonderful pieces of citrine
or amethyst for just US$2-US$3 per carat. The same size, colour
and clarity gemstones faceted by John Dyer, for example, will cost
US$20-US$30 per carat. If the price of the first one is close to the
cost of the rough gemstone then we can subtract it from the cost
of the second one and get the difference. Even if half of this amount
is due to the brand name then another half is the cost of work – this
is neither more nor less than triple the price of the rough! Certainly,
for the very expensive gemstones, the ratio will be different but the
cost of faceting will depend on the price of a gemstone – it’s the
charge for responsibility and the risk of dealing with an expensive,
rough gemstone.
Nowadays the quality of faceting is not shown in gemstone
certificates. Though GIA and other gemstone laboratories have
developed systems of grading cuts, they prefer not to draw attention
to it as they don’t want to reduce the appeal of the gemstone to
customers. As far as I know, only the IGE (Spanish Gemological
Institute) states the quality of faceting in its certificates.
All of us realise that the best-quality and most-expensive gemstones
that usually undergo certification are faceted and that they are of
much lower quality than masterpieces by real gemstone artists.
It is necessary to understand the criteria for evaluating the quality of
+61 2 9266 0636 +61 2 9266 0969 enquiries@ikecho.com.au

GEMSTONE FACETING
faceting. I will not explain the existing cut-grading systems as readers
may know them even better than me but I would like to identify
the main principle common to all of them: cut-grading systems are
based on comparing items with certain characteristics accepted
as standard to find deviations from the norm. Such characteristics
include gemstone shape, proportions, symmetry and finish. The
possible variety of faceting designs provided by the shape of the
crystal or the creativity of the cutter are not taken into consideration.
If we speak about unique faceting designs that have nothing to
do with standard forms, another approach is needed to evaluate
the quality of gem cutting. Let’s look at an example to understand
this better.
Some readers may be already familiar with the trend of gemcutting
in which I took my first steps: ‘Philosophical stone’. Its
essence is developing special, unusual faceting designs followed
by explanations that become the bearers of philosophical ideas,
creating a row of associations in the consciousness. A gemstone
contains one or several symbols in its pattern, either in graphical or
numerological format. These symbols provide the ‘key’ for opening
the row of associations.
There is a pattern in the ‘Drop of Compassion’ gemstone (See image
below). It has the shape of a wide drop limited by spirals of the
golden section from both sides. At the bottom of the gemstone,
there is a triangle showing the way to the infinity, a point where
the selfishness of a man disappears in the Great Compassion to all
beings. Rays coming from all sides to this point support the optical
perspective. From above, three descending arches symbolise three
stages that a man who has chosen this way should come through
one by one. These stages are common for all devotees of spirit:
Cognising, Renunciation and Transformation. This is the way of
Christ, the way of Buddha, the way of all teachers of humanity.
We can talk more about philosophy but now let’s turn to evaluation
of faceting quality by the GIA grading system. Having the
qualification of GG – GIA Graduate Gemologist – I’ve attempted to
do this myself. There are three criteria – brilliance, proportion and
finish – and everything is clear with two of them. We’ll examine
the most complicated one, consisting of numerous sub-criteria
(proportions). The shape of the Drop of Compassion resembles
CITRINE ‘DROP OF COMPASSION’.
IMAGE COURTESY: DMITRY
STOLYAREVICH
SAMPLE OF MARKING BY
PLASMAMARK TECHNOLOGY. IMAGE
COURTESY: SERGEY PRYANECHNIKOV
WWW.CUDWORTHENTERPRISES.COM

GEMSTONE FACETING
143 London cct.
Bailey's Corner
Shop 33
Bailey's Arcade
Canberra. ACT, 2601
a pear but how many deviations has it
from a standard form? Ratio length/width,
absence of table facet, position of culet,
wings and bulges are a few. In short, strictly
following the approach of the GIA, I had
to grade proportions of this gemstone as
Fair. The general grade turned out to be:
Excellent – Fair – Excellent. What do you
think of it?
When I make my author’s certification, I use
another system of cut grading that I have
developed myself (See sample of certificate
on page 34). It does not pretend to be the
worldwide standard of tomorrow but it is an
attempt to eliminate limitations in the shape
of the gemstone, concentrating attention on
the quality of the faceting itself. This system
examines the gemstone not as a whole but
mostly as a complex of separate pattern
points, including facets, edges and meeting
points of four or more facets.
It certainly takes account of any undesirable
optical effects produced by the faceting,
such as ‘window’ and ‘extinction’, as well as
the symmetry of facets specified by the
design. The result is expressed in a 100-point
scale to within the fourth decimal digit.
In addition to numerical grades, I have
divided faceting into quality classes: 0-60 is
Commercial; 60-95 is Quality; 95-100 is Elite
Class. Each class is divided into three subclasses
and the highest cut quality of Elite
Ideal should receive a grade of more than
99 points out of 100 possible.
Gem cutting of the Elite Class is almost absent
on the market today. Not because there is
no one who buys it but because of the high
price. Most markets, including jewellery,
have niches for products of different price
categories that may look almost the same.
The compliance of a gemstone with any one
quality class may be proved by traditional
methods – reports and certificates – as well
as uncommon ones like marking the surface
of a gemstone. This technology has been
developed by our specialists recently (See
image on page 35). Unlike other methods
such as the ForeverMark, in which a part of
the surface is graphitised by the ion beam
then etched to leave a relief image, particles
of plasma in our technology penetrate into
the surface layer of the gemstone to leave
the surface undamaged. This process simply
changes the optical density locally. Therefore,
the reflective index is changed and the image
becomes visible when the facet reflects light
from an external source. The brightness of
the mark depends on the plasma activity –
it may vary from visible to almost invisible,
meaning it can be seen only by breathing
on the surface.
The weak point of certification is the
impossibility of proving that a certificate
belongs to a certain gemstone, especially
where standard cutting is concerned.
Photos in the certificates are not appropriate
for identification as well as to confirm
dimensions and carat weight. Hence, an
almost invisible mark that does not cause
any damage to the gemstone and does not
influence its gemmological characteristics
may become the most convenient means
for identification of a certified gemstone.
What is left to say in conclusion? Evolution
is inexorable. We may ignore its laws or even
try to move against them but we won’t
withstand long in the conditions of tough
competitive fighting on the developing
market; however, a player of foresight
takes into consideration these laws and
forecasts further market trends. We live in a
unique time when all faceting conditions
have matured. Today there are not many
well-faceted gemstones on the market but
tomorrow, gemstones with the highest cutquality
will occupy a market niche.
I dare say that those who are brave enough
to pursue quality in faceting and grading
will make history. i
Edited from original article courtesy of InColor.
VICTOR TUZLUKOV
graduated from the GIA
Moscow branch with
a diploma of Graduate
Gemologist and has been
a member of the United
States Faceters Guild since 2006. Tuzlukov
founded the Russian Faceters Guild in 2010
and he is currently engaged in the creation
of new faceting designs. He also participates
in national and international faceting
competitions and won the International
Individual Faceting Championship in Australia
in 2010 with a score of 299.17 points out of 300.
www.stellatimepieces.com

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Organised by

Completing my Diploma in
Gemmology has benefited
me as a jeweller in more
ways than I ever expected.
I have always had an interest
in gemstones and found
the course was not only
informative and challenging
but immensely rewarding.
Studying with the GAA has also
allowed me to meet like-minded
people from many facets of the
jewellery industry and grants me access
to resources that I will continue to use
throughout my professional career.
Emma Meakes FGAA
Jeweller, John Miller Design - WA
Diploma in
Gemmology
Enrolments now open
For more information
1300 436 338
learn@gem.org.au
www.gem.org.au
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ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY
Passionately educating the industry, gem enthusiasts
and consumers about gemstones

BUSINESS
THE MERITS OF A MORNING MEETING
Driving a team to reach a shared goal
requires owners to know what they want
and what they need to do to get there.
DAVID BROWN explains why a daily
morning staff meeting is one of the best
resources to bring to a business.
Morning meetings are often one of the
hardest initiatives to implement. To benefit
from them, managers should always plan
an agenda that details the team’s objectives
for the day.
Stick to the plan and lead by example –
be punctual, professional, enthusiastic
and always follow through on any tasks.
The main role of management is to coach;
to encourage staff to be better today
than they were yesterday. Remind them
that even the best athletes have coaches.
Athletes realise that the greatest threat to
their success is complacency.
Set the morning meeting to commence 15
minutes before store opening. That sounds
short but the meeting is intended to inform,
enlighten and reinforce the four attributes
all top salespeople need:
• An outstanding attitude
• A great technique
• Consistent application
• A love of selling
It’s also a great idea to make one meeting
a week light, fun and personal.
TIPS FOR A BETTER MEETING
1. Review and update monthly and daily
budgets – the likelihood is that the team
will either be ahead of budget for the
month or behind.
If the daily budget has just been achieved,
give praise and encouragement such as,
“If we could do it yesterday, we can certainly
do it today. Does everyone believe that
today’s budget is achievable? Are we
working on any special orders that need to
be followed up? What about layby payments
and repairs?”
If the team is ahead of budget, project
what the store is on track to achieve by the
end of the month and offer an extra team
incentive if they reach it. For example, say,
“Our budget for the month is $50,000 but
THE MAIN ROLE
OF MANAGEMENT
IS TO COACH;
TO ENCOURAGE
STAFF TO BE
BETTER TODAY
THAN THEY WERE
YESTERDAY
after 10 days we’re on track to hit $60,000. If we
achieve $60,000, and we know we can because
we’re already doing it, there’s an extra $1,000
team bonus on offer.” At a 55 per cent margin,
the business is still $4,500 better off.
If the team is behind budget, discuss how
many sales are needed to get back on track.
Knowing this amount and discussing with staff
‘how’ it is going to be reached can help teams
to refocus on the sales they require.
Sometimes a salesperson will ask a tricky
question. To keep the meeting moving forward,
managers should consider firstly if the question
is relevant and secondly whether they are
qualified to answer it. That is, if the question
points to an issue that the business hasn’t faced
since 1983, refer the question to a later date.
This meeting is really about daily targets.
Secondly, if management doesn’t know the
answer, don’t answer. Note the question for
follow-up at a later date.
2. Enrol the team (selling not telling) – just
as staff should aim to close a sale every time
they make a sales presentation, management
needs to sell the team on ideas discussed
December 2017 Jeweller 39

BUSINESS
during meetings. Ask staff members three
questions and then ask for their 100 per
cent commitment and support.
• Do staff agree that this is an area in which
we can all improve?
• Can you see that doing this consistently
will help provide a better service to
customers and increase sales?
• Do staff consider this to be important?
• Can the business rely on staff to give total
support and commitment?
3. Motivation and clarity – be a positive
and enthusiastic manager. Be aware of good
sales from the previous day and publicly
praise performance. Ask for feedback on
any ‘magic moments’ and then get excited
by them.
Ask whether anyone felt they got a sale
yesterday because of a specific company
policy. Get feedback on what is working and
how the team can make these policies even
more powerful.
4. Reinforce the basics – choose a sales
technique upon which to focus. Once the
team has enrolled on a particular technique,
follow up with them to see that they are
using that technique every single time,
whether they feel like it or not. Only move
to the next technique when confident that
the team is at this stage.
Don’t forget the little things: ensure staff see
customers before customers see staff; strive
to create magic moments for customers;
ensure customers are always right; add value
to products rather than discounting prices.
Always remember that 80 per cent
of customers want value for money.
5. Introduce product – advise the sales
team of any new items that have arrived in
store since the previous day’s meeting, and
where they are displayed. Discuss any price
changes on fast or slow sellers.
6. Review future sales – review the request
sheet from the previous day, which consists
of all enquiries staff received that they
weren’t able to close. Choose a few items
from the list and discuss them.
Ask questions such as, “I see we had a lady
looking at a $2,000 ring yesterday who then
opted to look around instead. What do you
feel was the main reason she didn’t buy
from us yesterday? Does anyone think there
was anything we could have done, said or
offered her to help her make a decision?
What are we going to do differently today
as a result of what we learned yesterday?”
The main reasons customers walk out
without buying are usually because
jewellers don’t have the right products,
because customers want to shop around,
because customers want to talk to their
partners first or because customers don’t
feel the item represents value for money.
Discuss with staff what can be done to
overcome these objections.
7. Discuss the average sale – is the average
sale for the month up or down from the
budgeted average sale value? Why do staff
feel this is happening? Does the team need
to push higher-priced product to boost the
sales average?
If so, urge the team to concentrate on this
by showing customers the best items in
store first. Remind the team that addedvalue
services are there to help. Is there
anything staff can do to increase the
average sale?
8. Review old stock – choose an item of old
product in each category, such as diamond
rings, silver bracelets, gem-set rings or
watches, and discuss with staff during one
meeting a month why these items haven’t
sold? Is there something staff can do
with the items that will make them more
saleable? Perhaps make it a lower setting or
add a shoulder diamond to a ring to give it
more appeal?
For the next week, insist that every
customer who comes in looking for a gold
chain should be shown old stock first.
Remind the team that a business can’t get
new stock until old stock has sold. If this
means providing a discount or meeting a
customer’s price point then this might be
acceptable but remind staff to discount only
as a last resort.
Remember to follow up by asking, “How
many times did we show these items
yesterday and what was the feedback?”
9. Show attention to detail – a retail
jewellery store is as prestigious as a five-star
hotel in that shoppers expect the best. It’s a
luxury shopping experience after all so staff
OVERCOME THIS
BY APPLYING THE
MEETING ONLY
TO THOSE WHO
ARE WORKING
ON THAT DAY
AND KEEP
MINUTES FOR
ABSENT STAFF
should be friendlier, the store should
be cleaner and the product should be better
than competing jewellery stores.
Managers should encourage the team
to display extremely high standards. This
includes paying strict attention to dress
standards, store cleanliness, carpets, signs,
lighting and all other factors that make up
first impressions. During slow times, invite
team members to enter the store with ‘fresh
eyes’ as a customer would. Allow them to be
critical. Do they think the store measures up?
Does all stock have a clean, easy-to-read
ticket? Is the inventory itself clean and well
lit, displayed straight in cabinets? Do staff
have name badges? Do they need them?
What music is playing? Is the in-store
ambience perfect?
10. General business – at the conclusion of
each daily meeting, allocate time to deal
with other general matters such as repairs
and rosters.
11. Manage the process – be sure to keep
control of the meeting and stay focused on
one issue at a time. The goal is to inform and
motivate so be well prepared and don’t go
over the allotted time.
One of the biggest reasons managers don’t
hold morning meetings is because staff
often start at different times and on different
days. Overcome this by applying the
meeting only to those who are working on
that day and keep minutes for absent staff
to review and discuss as soon as they return
to work.
Even if only 50 per cent of staff are present,
the team will benefit from the meetings.
Bigger issues can be addressed in monthly
meetings that all staff attend.
Don’t let barriers be an excuse. Initiate
regular morning meetings today. Those
who have done it can testify to the benefits
and it’s a habit that managers are likely to
continue once initiated. i
DAVID BROWN is
co-founder and business
mentor of Retail Edge
Consultants. Learn more:
retailedgeconsultants.com
40 Jeweller December 2017

SELLING
SELLING WHAT’S IN STOCK… OR NOT.
SHOWING PRODUCT THAT ISN’T IN STOCK IS A QUICK WAY TO DISAPPOINT CUSTOMERS; HOWEVER,
DOUG FLEENER SAYS IT CAN STILL BE DONE AS LONG AS SALESPEOPLE APPROACH IT IN THE RIGHT WAY.
A salesperson recently asked me if selling
only what the store has in stock is good
service. When I asked for details, she
elaborated that her manager had instructed
staff that they were only to show and sell
what was in the showcases and in stock.
Some staff members disagreed with this
policy, since the best product for the
customer might be something that’s not
in stock at that moment. The salesperson
asked me who I thought was right.
I said the manager is right; however, the
staff weren’t necessarily wrong.
While I do love taking both sides of an
argument, there’s a reason both parties
are right and wrong.
OVER PROMISE, UNDER DELIVER
Quick story first: while travelling some
time ago, I stopped for dinner at a local
restaurant where I saw homemade chicken
potpie on the menu. Since that isn’t
something I often see on a menu, I asked
the waitress about the dish when she came
to take my order.
The waitress told me that the restaurant is
known for its chicken potpies, which are
made fresh daily, and that it is her favourite
item on the menu. By then my mouth was
watering so I ordered the chicken potpie
with a side salad. You know what’s coming
next, don’t you?
Alas, the waitress then said, “I’m sorry but
we’re sold out.” So here we have a waitress
who had gotten a customer all excited
about a dish, effectively selling it, only to
then tell that customer he couldn’t have it.
Talk about disappointing!
This is a classic case of over-promising and
under-delivering.
IT HAPPENS IN RETAIL TOO
The same thing often happens in retail
stores when a salesperson gets customers
all excited about a product only to tell them
ALWAYS TELL A
CUSTOMER WHEN
THEY CAN PURCHASE
AN OUT-OF-STOCK
PRODUCT BEFORE
YOU SHOW IT.
THIS REDUCES
DISAPPOINTMENT
OUT-OF-STOCK PRODUCT – TO SHOW OR NOT?
that the item is out of stock. It’s a practice
that disappoints the customers and often
results in missed sales opportunities.
This is especially so in the digital age,
known for the Millennial culture of
immediacy. The Millennials have never
known a world without the internet and
they expect to have access to products and
services 24-hours-a-day.
Most of all, they believe it is their right to
have what they want whenever they want
and delivered the way they want it.
Of course, there are always exceptions.
What if the item in question is a new
product or a hot seller and a store is only
temporarily out-of-stock?
Is it wrong to show the customer a product
even though the customer can’t buy it right
now? Not at all, especially if it’s done in a
way that doesn’t disappoint the customer
and the customer is given an opportunity
to make a purchase.
OUT-OF-STOCK SELLING
Here are a few things to remember about
showing and selling out-of-stock products:
• Only show an out-of-stock product if you
know it meets your customer’s needs or if
he or she specifically asks for it. Something
might be new or a hot seller but this
doesn’t mean it’s the right product for
everybody. Too often a staff member
shows an out-of-stock product because
it is new or they like it. Focus on what’s
best for the customer.
• Always tell a customer when they can
purchase an out-of-stock product before
you show it. This reduces disappointment.
It also makes it easier to show another
product or sell the out-of-stock item.
One way to suggest this may be to
say, “You might really like the new XYZ
silver ring, which we’ll have in stock on
Thursday. Let me show it to you.”
• Recommend other products based on
what customers like or dislike about the
unavailable product – “Take a look at this
ABC silver ring. It’s got many of the same
features as the item you want and also
has that modern style you like.”
• Make purchasing out-of-stock products
a great experience for customers – don’t
tell them to check back next week; don’t
charge for shipping; do the little things
that ease a customer’s inconvenience
when the right product is not in stock.
• If your customer absolutely needs that
product now, find it somewhere else.
By doing this, you might keep the
customer in the future even when losing
a sale.
Deciding whether to show products that
are not in stock, or to not show them at
all, requires a delicate balance but retailers
who remember to always do what’s best
for their customers will always do best for
their stores. i
DOUG FLEENER is
president and managing
partner of Sixth Star
Consulting. Learn more:
dougfleener.com
December 2017 Jeweller 41

MANAGEMENT
BUSINESS ADVICE THAT RARELY WORKS
BUSINESSES SEARCHING FOR A WAY TO IMPROVE PROFITABILITY AND PERFORMANCE MUST CONSIDER MANY STRATEGIES,
NOT ALL OF WHICH ARE GOING TO WORK. DAVID SHARPE REPORTS ON THE REALITIES OF SOME POPULAR BUSINESS ADVICE.
There’s no shortage of people who will give
you advice on how to run your business.
There are coaches, mentors and strategists
galore, all ready to offer their own ideas on
business success. Talk is cheap, however, and
even the best ideas can be difficult to put
into action without the right resources. What
can retailers do when it comes to introducing
new strategies?
Here are five examples of business advice
that are easy to spout but not so easy to do.
WRITE A BUSINESS PLAN
Everyone says a business needs a business
plan. Does it? Why exactly? Is it really
worthwhile paying a consultant to write a
detailed, 30-page plan so that it can sit in
the top drawer?
Two things are often forgotten about
business plans. Firstly, for them to be
effective they need a clear purpose, and
secondly, to achieve that purpose, they
need to be targeted to a distinct audience.
If a business plan is required to attract an
investor then the purpose and audience is
clear but when it comes to the everyday
running of a business, retailers probably
don’t need to spend time and money
writing a plan. Don’t misunderstand this as
a suggestion that businesses don’t need
to plan; planning is essential. Businesses
just don’t need to do it by writing a big ol’
document that no one will read.
INTRODUCE A REBRAND
Marketing consultants are notorious for
saying businesses should rebrand to increase
business. Marketing agencies love a rebrand
or a brand refresh, complete with new logo
and new website – that’s their business!
Rebranding can certainly give a business a
new look that attracts attention but does this
increase sales? Only if it’s backed up by
a rigorous sales regime.
Sales is mainly about the hard slog of
communicating with people who aren’t
THE IDEA THAT
THERE’S A SPECIFIC
PROCESS, ONE WAY
OF THINKING OR
A SINGLE PRICING
STRATEGY THAT
WILL MAKE
EVERYTHING WORK
IS AN IDEA DESIGNED
TO SELL BOOKS
NOT ALL ADVICE MAY BE APPROPRIATE
already customers. A new website can help
but it doesn’t actually pick up the phone
and talk to prospects, does it? Marketing
and sales are different functions.
BUILD CULTURE
Another buzz term is ‘workplace culture’.
Developing a co-operative and pleasant
workplace culture, one that respects
flexible ways of working and embraces
co-operation, is de rigeur – everyone is
trying to do it.
That’s great; however, if every company has
a great workplace culture then culture is no
longer a differentiator for candidates. It just
becomes one more factor for an employee
to weigh up, no more important than salary
levels, location or career prospects.
In practice, businesses cannot rely on
workplace culture alone to lure employees.
There’s no substitute for making staff feel
valued and well rewarded and no amount
of casual-clothes days and free massages
will replace that.
BECOME A THOUGHT LEADER
This one is a classic – businesses should
position themselves as thought leaders
in their industries but that’s easier said
than done. The theory behind this is that
businesses will increase their brand value
if they become authorities, thus increasing
their profiles and getting people interested
in what they have to say.
Authorities become destination businesses
who can possibly even charge above the
market rate for services because they’ve
become premium brands.
The trouble is that becoming a thought
leader means creating content – lots
of compelling content – regularly and
consistently. It also means searching for
self-promotion opportunities and that’s
not for everyone. Retailers can do all of that,
spending a lot of time and energy, and it
still might not achieve the desired goal.
Striving to be a thought leader may work
for some retailers but they have to be aware
of how much time, money and resources
is required to get there. This time might be
better spent delivering an excellent product
to customers and boosting service levels.
THE ‘ONE TRUE WAY’
How many times have you heard, “There’s
one sure-fire way to business success and
this is it”? The idea that there’s a specific
process, one way of thinking or a single
pricing strategy that will make everything
work is an idea designed to sell books.
Practically speaking, business rarely works
that way. Some strategies will work for some
people and some strategies won’t. There’s
never a one-size-fits-all solution, nor is there
a fast answer.
Retailers who try different strategies and
measure the results should be able to plot
a path that brings slow, incremental growth
and it is steady growth that is much more
likely to last into the long term. i
DAVID SHARPE is advisory
and consulting director at
Generate, which specialises
in creative industries. Learn
more: generate.com.au
42 Jeweller December 2017

MARKETING & PR
WAGING WAR: MARKETING VS SALES
SHOULD MARKETING BE LESS OF A FOCUS THAN SALES OR ARE THEY EQUALLY IMPORTANT TO RETAIL BUSINESSES?
DALE FURTWENGLER DISCUSSES THE RELATIONSHIP BETWEEN THE TWO AND IF A PEACE TREATY CAN BE MADE.
Over the years I’ve heard much commentary
about the roles of marketing and sales
within business. Popular sales writer Geoffrey
James has written that marketing should be
subordinate to sales instead of a separate
function. Obviously, marketing experts
disagree. War is expensive; let’s see if we
can put an end to this one.
THE ROLE OF MARKETING
In many businesses, marketing’s role is to
get the word out about the store, attracting
new customers by creating front-of-mind
awareness and a buzz for new offerings. Yet
a simple review of profitability by customer
shows that a firm strategy is required to
ensure businesses see returns on their
marketing expenditure. Consider the various
products and services that businesses offer.
Often businesses contribute their largest
marketing investments – both in dollars
and production capacity – towards their
least profitable lines. This raises some
important questions:
• Are the right customers being targeted?
• Are businesses touting the right offerings?
• If so, how is it that retailers end up with so
many low-margin customers and offerings?
Market research is another role of marketing.
Product innovations and improvements are
often supported by, if not initiated through,
research conducted by the marketing group.
The question is: should this be marketing’s
province exclusively?
THE ROLE OF SALES
The role of sales staff is, simplistically, to
generate sales. Unfortunately, too many
retailers operate from this very view, and,
when asked, salespeople can rarely identify
their ideal customers, what those customers
value and what that value is worth in
monetary terms.
To make matters worse, the current models
for sales budgeting and commission
encourage sales staff to relentlessly pursue
customers and to do anything they can
WHEN MARKETING
AND SALES ARE
BOTH TARGETING
THE SAME HIGHLY
PROFITABLE PEOPLE
AND CATEGORIES,
A BUSINESS WILL
GENERATE HIGHER
REVENUES MORE
QUICKLY AND AT
PREMIUM PRICES
THERE’S WEIGHT IN MARKETING AND SALES
to make the sale. This occurs whether the
business’ marketing is targeting the right
markets or not. How can retailers stop this
madness? Here are some thoughts.
CROSS POLLINATION
In small businesses like jewellery stores, staff
often handle both marketing and sales but
it’s rare that someone analyses profitability
by both customer and product line/service
categories. A caveat here – storeowners
often calculate profit in ways that make
it easy for them to report financial results
under external reporting requirements.
Marketing and sales people should both
make sure they are comfortable that profit
numbers reflect the economics of the
various markets they serve.
There are a few fundamentals to consider:
• Why are some customers paying more for
an offering?
• What do they see that other customers
do not?
• Are the marketing messages designed to
attract more of these customers?
• How can this information help salespeople
focus their efforts toward this market?
• How can staff make marketing messages
and sales scripts more congruent to
increase the likelihood of sales?
• What opportunities are staff seeing in
the market for innovation and/or
product improvement?
• Are these opportunities something for
which buyers are willing to pay extra?
• Which offerings are languishing? Should
they be invigorated or abandoned?
Customers will always have stronger rapport
with sales staff than with marketing staff.
Sales staff have access to the shop floor
to see first-hand how customers react to
products. They also get the opportunity
to have more candid exchanges with
customers than back-office staff can have.
These observations can be extremely
valuable for improving their sales approach
in ways that customers value.
Don’t believe it? Ponder these questions:
• Aren’t customers more likely to offer
feedback to salespeople they like?
• Aren’t salespeople more likely to
share trends that they see in their
customers’ preferences?
• Aren’t customers more likely to let
salespeople they like know when a
competitor is about to release a product
of value?
Salespeople should be encouraged to share
any language they’re using that helps close
a sale or establish a relationship. Likewise,
salespeople should also be encouraged to
share complaints.
All of this information can help shape
a retailer’s marketing messages so that
they resonate with their most profitable
customers. When marketing and sales are
both targeting the same highly profitable
people and categories, a business will
generate higher revenues more quickly
and at premium prices. Now, how’s that
for a peace treaty? i
DALE FURTWENGLER is
founder of Furtwengler &
Associates. He is a speaker,
author and consultant. Learn
more: pricingforprofitbook.com
December 2017 Jeweller 43

LOGGED ON
TOOLS TO EASE THE CHRISTMAS RUSH
THE FESTIVE SEASON IS CHAOTIC BUT THERE IS A PLETHORA OF DIGITAL STAFF COLLABORATION TOOLS TO HELP
BUSINESSES STAY ORGANISED AND RUNNING SMOOTHLY THIS CHRISTMAS. LILIAN SUE REPORTS.
Christmas can be a mad scramble. Every year,
businesses must hire extra staff, order more
inventory and ensure that each customer
goes home with the perfect gift.
Not only is finding staff an issue but new
staff must be trained on the store systems
and briefed with adequate knowledge of
the products available on the shop floor.
It all takes time, which is one commodity
retailers rarely have during this period.
That’s where software can assist, by allowing
owners and managers to gain more time for
their business without sacrificing productivity
or profit during the busiest shopping season
of the year.
Online team collaboration tools help staff
stay organised and well trained while they
are contributing to increased business
productivity. Here are three free, digital,
team-collaboration-and-organisation tools
that are efficient, easy to use and sure to
give business owners and managers muchneeded
time and breathing room during
the festive season.
ON THE SAME PAGE
With a cloud-based collaboration platform
like Same Page, business owners can sign
up for free and log into their team account
on their phones, laptops or tablets, increasing
organisational efficiency.
‘Team owners’ can directly message staff, post
in team chat windows and even use video
calling to host remote conferences with staff
members to assist businesses with stores
situated in different locations.
Staff who are added as team members can
easily upload diagrams and charts that show
sales progress and even upload videos and
photos of new jewellery and watches on
the team page. Tasks can be given due
dates and reminders can be assigned to
relevant members, while the team task list
can filter duties accordingly so they can be
evenly distributed.
Staff members are able to keep track of their
progress with the official task tracker and
calendars – both team and individual – are
available so everyone is aware of deadlines,
meetings and special events.
HELLO, TRELLO
Unique to Trello, the platform uses a cardbased
system to make project management
as simple as possible. Customised columns
such as ‘in progress’ and ‘completed’ can be
easily created on a project board to organise
individual tasks. Each task is added to a
column as a small card that lists individual
tasks that can be assigned to different staff
members. Space exists to add comments
and an official deadline.
Once a manager signs up for free, each
team member is able to add checklists and
attachments from other platforms such as
Dropbox or GoogleDrive. They can also create
more than one board for each project.
Checklists make it easier to track progress
as tasks can be crossed off once they’re
completed. Each project board is also eligible
for one ‘power-up’, a choice of specialised
extras that have features such as allowing
team members to see the tasks that haven’t
received attention in more than a week,
add video meetings, edit their e-newsletter
campaigns or attach company surveys for
other staff to complete.
Trello is compatible with Mac and PC
computers as well as Apple and Android
mobile products.
STRESS-FREE FREEDCAMP
Freedcamp prides itself on being an all-inone
solution for team collaboration and
organisation. Business owners can have
discussions with their staff in one place
instead of dealing with scattered email
threads and staff members can organise files
in a state-of-the-art file system, backing up all
information offline. Managers can also control
staff rosters, tracking time on multiple staff
members across multiple days.
TEAM COLLABORATION TOOLS CAN REDUCE STRESS AT CHRISTMAS
ONLINE TEAM
COLLABORATION
TOOLS HELP
STAFF STAY
ORGANISED AND
WELL TRAINED
WHILE THEY ARE
CONTRIBUTING
TO INCREASED
BUSINESS
PRODUCTIVITY
Freedcamp gives staff members the option
to assign tasks and set a goal by a certain date,
notifying the team with progress updates as
the goal moves closer as well. The software
allows retailers to duplicate project templates,
which increases productivity and eliminates
the need to spend time and energy recreating
homogenous project types.
Freedcamp has unlimited storage and allows
for unlimited projects. Business owners and
team members can take the tool on the go
through the iOS app on Apple products.
With the right team collaboration and
organisation tools, retailers can better manage
staff tasks. The aim is to avoid drop-offs in
productivity by allowing staff members to
spend time on what matters: keeping their
customers happy during the holiday rush and
expanding business.
Investing a little time and energy in the short
term to find the best team collaboration tools
will pay dividends in the long term and ensure
the holiday rush is smoother and far jollier. i
LILIAN SUE is a social media
and PR strategist. She operates
In Retrospect Writing Services.
Learn more: inretrospect21.
wordpress.com
44 Jeweller December 2017

GEMS
COLOUR INVESTIGATION: ZIRCON
zircon’s array of colours actually results from
external influence rather than from its own
chemical composition.
The specific cause of colour in zircon remains
hotly debated and there are two popular
theories in discussion: one side proposes
that the presence of tetragonal centres of
trivalent rare earth elements and niobium
are the cause of colour; another theory
suggests atomic defect centres (colour
centres) created during the various stages
of radioactive breakdown are what affects
the absorption of colour in a zircon crystal.
Although the beautiful and attractive
earth tones of natural zircon occur more
commonly, this gemstone is especially
admired for its vivid-blue colours. Because
of this high demand, vivid-blue gemstones
usually command a higher price than other
coloured varieties of zircon.
Zircon is a mineral with certain optical
properties that can rival those of a
diamond. Found in a varied palette,
the cause of colour in this gemstone is
little known. STACEY LIM discusses two
popular theories.
Recognised as one of the birthstones for
December, zircon is an important mineral
with the oldest-known crystal grains found
in Western Australia and dating back 4.4
billion years.
The high lustre and brilliance of colourless
zircon is likened to that of diamond and
gemstones have often been presented as
imitation diamonds, especially in jewellery
of the early 1900s.
Today the popularity of zircon is somewhat
diminished by its reputation as an
inexpensive diamond simulant although it
remains a favourite among collectors and
informed consumers.
Zircon is a zirconium silicate containing
minute traces of radioactive elements
like uranium and thorium, and rare earth
elements. Because of its radioactive
impurities, zircon’s crystal structure can be
almost completely broken down over long
periods of geological time. It is therefore
said to be metamict.
Zircon that has retained its original crystal
structure is referred to as high zircon, and
low zircon is metamict type. The low type
is generally green but may also be brown,
orange or yellow.
High type zircons occur in a wider array of
colours – yellow, orange, green, pink, red,
reddish brown and blue hues – and are
the gemstones typically seen in jewellery.
Gemstones are mostly fashioned into round
brilliant cuts to take advantage of their lustre
and fire.
Classified as an allochromatic gemstone,
THE SPECIFIC
CAUSE OF
COLOUR IN
ZIRCON REMAINS
HOTLY DEBATED
AND THERE ARE
TWO POPULAR
THEORIES IN
DISCUSSION
This piercing blue is achieved almost
exclusively through heat treatment and
may be slightly greenish-blue, greenish-blue
or very strongly greenish-blue. The treatment
is undetectable, stable and can be assumed
for all blue zircons.
Even though the demand for blue
gemstones can be satisfied with other
gemstones of comparable clarity at more
affordable prices, zircon’s intense fire,
high lustre and unique blue colour means
it continues to reign supreme among
gemstone buyers.
Zircon’s unusual blue hue paired with its
lustre and fire makes this gemstone an
exceptional blue gemstone alternative. i
STACEY LIM FGAA BA Design, is a qualified
gemmologist and gemmology teacher/assistant.
She is a jewellery designer, marketing manager
and passionate communicator on gemmology.
For information on gemstones, visit: gem.org.au
December 2017 Jeweller 45

10 YEARS AGO
WHAT WAS MAKING NEWS 10 YEARS AGO?
A SNAPSHOT OF THE INDUSTRY EVENTS THAT MADE NEWS HEADLINES IN THE DECEMBER 2007 ISSUE OF JEWELLER.
+ FUN FACT: THE ENTIRE DECEMBER 2007
ISSUE WAS PRINTED IN BLACK AND WHITE.
Pandora turns 25 and opens flagship store
The story: While celebrating its 25th anniversary,
Pandora Jewelry has opened its first Australian flagship
store in Sydney.
Located in the Queen Victoria Building, the store offers
the full range of Pandora products, including its wildly
successful charm bracelets.
Hosted by the Danish Consulate, the store was
inaugurated on October 31, with the Sydney Jazz
Collective providing entertainment while models
‘Blood rubies’
boycotted
The story: Following political upheaval in
Myanmar, several high-profile international
jewellery organisations and retailers have
publicised their opposition to the purchase
of Burmese gemstones. The JAA, CIBJO (the
World Jewellery Council), the International
Colored Gemstone Association (ICA) and
Jewelers of America (JA) have all issued
statements urging members to seek
written assurances from suppliers on
the origins of the gems they receive and
advise them to refrain from purchasing any
Burmese gemstones until the process of
democratic reform begins in Burma.
paraded Pandora Jewelry
and couture gowns. Guests
were invited to preview the
limited edition Anniversary
Collection – each piece
in the 14-carat gold ring,
earring, necklace and charm
suite is embellished with
.25-carats of diamonds to
mark the quarter-century milestone.
Mobile phone jewellery designed for charity
The story: Jeweller Nic Cerrone has connected
with MobileMuster – the official recycling program
of the mobile phone industry – to create a limitededition
jewellery range from recycled mobile
phone components.
The men’s ring, cufflinks and necklace and women’s
necklace, bracelet and earrings comprising the range
contain gold yielded from 8,700 recycled mobile
phones. The pieces also contain silver and copper.
“Over 90 per cent of
mobile phone materials are
recoverable,” said Rose Read,
manager, MobileMuster.
Cerrone’s pieces were
auctioned online from
October 28 to November 12
and all funds were donated
to Landcare Australia.
PRE-APPRENTICESHIP
COURSE LAUNCHED
The story: Brisbane’s Southbank
Institute of Technology has launched
a pre-apprenticeship short course in
jewellery manufacturing designed
to help the trade select suitable
apprentice applicants.
Implemented in response to industry
requests, the course addresses a lack
of public knowledge about careers
paths in the industry and a shortage of
trade-accredited jewellers/goldsmiths
in Australia.
“The course aims to give insight into
a career in jewellery manufacturing,”
said teacher Lee Pownall. “It allows the
student to explore their aptitude and
abilities for the design and creation of
jewellery items.”
The program is aimed at anyone
interested in a career in the industry
with no prior experience or knowledge.
INDUSTRY NIGHT
EXPERIENCES SUCCESS
The story: A recent industry dinner
dance has successfully reinvigorated
a dialogue between various industry
groups – including the Jewellers
Association of Australia (JAA),
Gemmological Association of Australia
(GAA) and National Council of Jewellery
Valuers (NCJV).
Held on September 22 in Victoria, the
event raised over $3,000 for the Make
a Wish Foundation through an auction
of donated jewellery and gemstone
items. Importantly, it also presented a
forum for communication between the
industry groups. “It was acknowledged
that we are all ‘in the same boat’,” coorganiser
Leon Corn said, “and that we
should try to pull in the same direction.”
46 Jeweller December 2017

CALENDAR
2018 TRADE SHOW CALENDAR
NEXT YEAR’S TRADE FAIR CALENDAR IS QUICKLY FILLING UP AND JEWELLERS WOULD BE WISE TO START PLANNING.
HERE IS A GUIDE TO SOME OF THE HOTTEST SHOWS TAKING PLACE LOCALLY AND INTERNATIONALLY IN 2018.
TUCSON GEM,
MINERAL & FOSSIL
SHOWCASE
January 27 – February 11
Tucson, US
Visit: visittucson.org/events/gem-show
Described as the largest gemstone and
mineral event of its kind in the world, the
Tucson Gem, Mineral and Fossil Showcase
is known for its museum-quality exhibits of
gemstones, jewellery, minerals and fossils.
BANGKOK GEMS &
JEWELRY FAIR
February 21–25
Bangkok, Thailand
Visit: bkkgems.com
The biannual Bangkok Gems & Jewelry
Fair has developed a reputation for being
a treasure trove of coloured gemstones –
many of which are supplied by local dealers.
A second show in 2018 will take place in
September, with dates to be announced.
HONG KONG
INTERNATIONAL
JEWELLERY SHOW
March 1–5
Hong Kong
Visit: m.hktdc.com/fairmob/hkjewellery-en
Organised by the Hong Kong Trade
Development Council, this fair focuses on
finished jewellery. Next year will mark the
35th edition of the trade show.
BASELWORLD
March 22–27
Basel, Switzerland
Visit: baselworld.com
Baselworld is billed as the world’s
largest watch and jewellery fair,
attracting more than 106,000 visitors
and 1,300 exhibitors in 2017.
The show has been shortened in
2018, running for six days instead
of the traditional eight days.
JCK LAS VEGAS
June 1–4
Las Vegas, US
Visit: lasvegas.jckonline.com
This jewellery trade show appears to be
increasing in size each year and, in addition
to having a vast array of products on display,
it also features several education sessions
conducted by industry organisations like
De Beers Group and the GIA.
INDIA INTERNATIONAL
JEWELLERY SHOW
Date to be confirmed
Mumbai, India
Visit: iijs.org
This year’s event is said to have attracted
more than 2,200 exhibitors showcasing
loose diamonds and gemstones as well
as finished jewellery. The fair is organised
by the Gem & Jewellery Export Promotion
Council (GJEPC) and traditionally takes
place in late July.
HONG KONG
JEWELLERY &
GEM FAIR
Sept 12–16 and Sept 14–18
Hong Kong
Visit: exhibitions.jewellerynetasia.com/9jg
The first part of the show, held from
September 12–16, features loose diamonds,
gemstones and pearls. The second, held
from September 14–18, is for finished
jewellery, packaging, tools and equipment.
*Dates were correct at the time of publication
25
AUGUST
20
JUNE
INTERNATIONAL JEWELLERY FAIR
August 25–27
Sydney, Australia
Visit: jewelleryfair.com.au/2018
Following the success of the IJF’s return
to Darling Harbour this year, the 2018
fair will again head to the International
Convention Centre Sydney. Organised
by Expertise Events, the IJF has
cemented itself as an important event
on the local industry’s calendar.
December 2017 Jeweller 47

MY BENCH
Dan Shadwick
WORKS AT:
Shadwick’s Fine Jewellery
AGE: 43
YEARS IN TRADE: 26
TRAINING: Apprenticeship
in manufacturing jewellery
and diamond setting
FIRST JOB: Wensley’s
Goldsmiths of Fremantle,
under Bob Shadwick
OTHER QUALIFICATIONS:
Holiday extension specialist!
Favourite gemstone:
Tanzanite, because I like the
blue/purple colour and the
way diamonds can make it
really pop.
Favourite metal:
Anything other than silver
and 9-carat gold!
Favourite tool:
My hammer. It was
my grandfather’s so it
is sentimental.
Best part of job:
Starting with a square bar
of metal and then turning it
into someone’s dream piece
of jewellery.
Worst part of job:
When people lick their
finger to take off a ring and
then expect you to hold out
your hand to receive it with
a smile on your face.
Also, nose studs!
Best tip from a jeweller:
There is no such thing
as ‘can’t’, so my father said.
Best tip to a jeweller:
Don’t fall in love with your
bench or your peg!
Love jewellery because:
How many people can say
their job is like a hobby?
My bench is always:
Immaculately organised,
because it makes it easier to
find stones when they flick.
Favourite sporting teams:
Claremont Football Club
and West Coast Eagles.

SOAPBOX
MARGIN CALL
I’ve been in the retail industry my entire
working life, both as a retailer and most
recently as a supplier, and I’ve never seen
the market as difficult as it is right now.
It’s like being on a boat and you know the
storm is coming but you really don’t have
any idea how bad it is going to be.
There’s no way that retailers are getting as
much foot traffic as they were three or four
years ago; customers are now fewer and
farther between.
If jewellers are to have any hope of surviving
this challenging period then they need help
from suppliers. Specifically, suppliers must
take responsibility and provide them with
increased margins.
Not naming names, I think it’s imperative
that the big brands look at adjusting margins
in order to maximise the value of each
customer that walks through the retailer’s
door. Being able to maximise this customer
value does not come by giving people a new
product or a gift with purchase promotion.
These strategies don’t work anymore
because the branded product marketing
that’s currently out there is heavily geared
towards the online environment.
Why is this the case?
Well, the big brands set most of the
margins online, meaning there’s little
need to conduct marketing for bricks-andmortar
retail.
My business gives a significant mark-up for
the retailer and there’s a reason we do it – it’s
because I know what is required to survive
in a retail environment. I’ve been there,
we’ve done the retail side of it and I know it’s
ridiculously hard to survive without money.
If I were still in retail and wanted to ride
this difficult wave then I’d need a massive
margin on the products in my store, I’d need
foot traffic and I’d need to get these two
components to glue together.
Money is the one thing that will keep
retailers alive – nobody pays bills with extra
product, free gifts or rebates. Only money
will pay wages and rent. It’s as simple as that.
Some suppliers boast about offering rebates.
For example, if a retailer spends more
than $5,000 then the supplier will give a
percentage rebate or a favourable payment
option. Well, that’s great but that also
requires a retailer to spend more money.
This is like saying to someone that’s
drowning in the ocean, “Listen, I know you’re
drowning but can you just hold this for me
for a minute? I am going to rescue you later,
down the track, but I need you to hold this
for me now.”
That’s too late – there’s no surviving that
situation; the retailer has drowned.
There’s also much complaining going on
from suppliers about retailers not running
their businesses properly, damaging the
brands in store, blah, blah, blah. Are you
kidding me? They’re trying to save their
businesses! Retailers are the ones who
are struggling to pay rents, struggling to
negotiate with Westfield and other landlords
who all want to get paid.
Suppliers have one job on top of providing
product: they must offer outstanding
CAN WE PLEASE
ALL BE HUMAN FOR
FIVE MINUTES? CAN
WE ALL RECOGNISE
THAT WE HAVE A
BETTER CHANCE
OF SURVIVING THIS
RETAIL WAR IF WE
ALL JOIN HANDS?
customer service in order to solve every
problem their retail customers have.
I think some suppliers believe that it’s not
their job to do that or that retailers should
feel lucky to stock their brands but this is
just ridiculous.
The big brands need to take it on the chin
for a bit and must cut their margins if retailers
are to survive. Suppliers are already making
massive margins online so it’s not as though
cutting margins for the retailer’s benefit
would jeopardise their businesses. Anyone
who claims this is talking rubbish.
Many suppliers have been manufacturing
for a long time so what’s stopping them
from going back to their manufacturers and
asking for better prices? They need to do
whatever they can before it’s too late.
Can we please all be human for five minutes?
Can we all recognise that we have a better
chance of surviving this retail war if we all
join hands?
Retailers don’t need to be told how to sell
jewellery; they know how to sell jewellery.
They need to be given larger margins –
even just for the short term – to enjoy a bit
of a breather.
Importantly, it needs to be done now
otherwise there will be no retailers left to
sell to for suppliers! i
Name: Hayley Birtles-Eades
Business: Love Lockets
Position: marketing and brand manager
Location: Brisbane
Years in the industry: five
50 Jeweller December 2017

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SWAROVSKI GEMSTONES BUSINESS
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T +66(02) 237 2040
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Brilliant Precision
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FROM ALL OF US
pms 2935 C
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August 25 > 27, 2018
International Convention Centre Sydney, Darling Harbour
Contact: Mary-Anne Brown
Telephone: +61 2 9452 7513
Email: maryanne.brown@expertiseevents.com.au
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