Jeweller - December Issue 2017

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.
Exclusively Distributed by
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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