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Jeweller - May Issue 2018

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VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />

MAY <strong>2018</strong><br />

On trend<br />

THIS YEAR’S FASHION<br />

JEWELLERY STYLES<br />

Hello future<br />

+ +<br />

PRESENTING THE <strong>2018</strong><br />

CAD/CAM REPORT<br />

Hong Kong<br />

HONG KONG JEWELLERY FAIR<br />

REVIEWED IN DEPTH


Seeing is believing<br />

What are you looking for at this year’s International <strong>Jeweller</strong>y Fair?<br />

Rare gems, stunning creations, display ideas, an innovative supplier, that rare product line<br />

or a unique piece from an artisan? You will find it all and more at the fair.<br />

pms 2935 C<br />

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August 25 > 27, <strong>2018</strong><br />

ICC Sydney > Exhibition Centre > Darling Harbour<br />

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THIS YEAR’S FASHION<br />

JEWELLERY STYLES<br />

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />

PRESENTING THE <strong>2018</strong><br />

CAD/CAM REPORT<br />

MAY <strong>2018</strong><br />

HONG KONG JEWELLERY FAIR<br />

REVIEWED IN DEPTH<br />

CONTENTS<br />

MAY <strong>2018</strong><br />

17/<br />

23/<br />

30/<br />

FEATURES REGULARS BUSINESS<br />

14/ 100 YEARS<br />

Adelaide family jewellers Archer &<br />

Holland are celebrating a milestone.<br />

17/ TRENDING NOW<br />

Capitalising on this season’s fashion<br />

jewellery offerings.<br />

23/ DIGITAL TOOLBOX<br />

How the industry is embracing<br />

CAD/CAM.<br />

30/ HONG KONG FAIR<br />

The Hong Kong fair was a recordbreaking<br />

success, Angela Han writes.<br />

9/ Editorial<br />

10/ Upfront<br />

12/ News<br />

34/ Gems<br />

Colour investigation: sapphire<br />

41/ MyStore<br />

Be inspired by the most unique<br />

store layouts around.<br />

42/ 10 Years Ago<br />

43/ Calendar<br />

44/ My Bench<br />

46/ Soapbox<br />

We’ve forgotten the customer is<br />

important, Bruce Rosewarne laments.<br />

35/ Business feature<br />

Chris Petersen explains<br />

how to operate in an<br />

omni-channel market.<br />

37/ Selling<br />

Doug Dvorak shares five<br />

ways to succeed in sales.<br />

38/ Management<br />

It’s too easy to lose customers,<br />

Steve DiGioia reports.<br />

39/ Marketing<br />

Rich Kizer and Georganne Bender<br />

share ways to improve customer<br />

service.<br />

40/ Logged On<br />

Melissa Megginson explains<br />

how to crunch the numbers<br />

on Instagram.<br />

On trend<br />

Hello future<br />

+ +<br />

Hong Kong<br />

Front cover description:<br />

Fashion jewellery is as relevant as<br />

ever for younger generations.<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 5


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EDITORIAL<br />

THERE’S NOTHING EASY ABOUT E-COMMERCE<br />

Last month I wrote about how SEO<br />

scammers prey on small businesses,<br />

including jewellers. I discussed how you<br />

probably receive emails guaranteeing your<br />

store will appear on the first page of a<br />

Google search, which is obviously claptrap.<br />

If someone searches for your store name<br />

and you don’t appear on page one, you<br />

have far greater problems than SEO!<br />

This month I would like to deal with the<br />

notion that your store should, or must,<br />

have full e-commerce capabilities. You<br />

see, research suggests small retailers are<br />

abandoning the belief that they must excel<br />

at physical (bricks-and-mortar) retailing as<br />

well as online retailing.<br />

I don’t think anyone would doubt that large,<br />

traditional retailers must excel at both–<br />

Myer, David Jones and JB HiFi are a few that<br />

must compete in all channels – but is it<br />

equally important for small jewellers?<br />

Before going any further, all my<br />

observations presuppose that your website<br />

is first rate, conforming to current tends<br />

such as responsive design, where the page<br />

adapts to fit the device in use. Assuming<br />

your website also addresses basic SEO<br />

practices then the issue is whether you<br />

need a fully-fledged e-commerce capability.<br />

This is where things start to get very<br />

expensive.Sure, there are plug and play<br />

options that can be considered but their<br />

advertised costs never reflect the final<br />

cost of full functionality, and once you<br />

have the design done, you will need an<br />

SSL Certificate for credit cards, a payment<br />

gateway or payment provider and, in some<br />

cases, an online merchant bank account.<br />

You’ll also need a shipping company like<br />

Australia Post to deliver your products.<br />

The costs are high so are they all worth it?<br />

Would it be better to invest your time and<br />

money elsewhere?<br />

Well, it comes down to sales. How much<br />

more will you sell by offering e-commerce<br />

to your customers? Do they need such<br />

convenience? <strong>Jeweller</strong>y is generally not<br />

a recurring purchase. Unlike FMCGs,<br />

customers who buy a ring are unlikely to<br />

purchase another online in any short<br />

length of time.<br />

According to the Australian Retailers<br />

Association, online shopping accounts for<br />

around 7 per cent of total retail sales ($285<br />

billion) but this includes services such as<br />

airline tickets, which are basically no longer<br />

done at a store level. When was the last<br />

time you purchased a ticket from a travel<br />

agent to fly interstate?<br />

If online shopping accounts for only 7<br />

per cent of all retail sales, how much of<br />

that is jewellery and watches? And if it’s<br />

an insignificant amount in the scheme<br />

of things, by how much do you need to<br />

increase your store sales to offset the cost of<br />

implementing an e-commerce platform?<br />

Indeed, KPMG research shows that jewellery<br />

purchased online is not as popular as one<br />

would imagine being the 21st on the list<br />

of retail product.<br />

A 2016 UK study by Barclaycard found<br />

RESEARCH<br />

SHOWS THAT<br />

JEWELLERY<br />

PURCHASED<br />

ONLINE IS NOT<br />

AS POPULAR<br />

AS ONE WOULD<br />

IMAGINE BEING<br />

THE 21ST ON<br />

THE LIST<br />

OF RETAIL<br />

PRODUCT<br />

that six in 10 retailers were negatively<br />

impacted by consumers’ propensity to<br />

return unwanted items, while one in<br />

five businesses increased the price of<br />

items to cover the cost of managing and<br />

processing customer returns. The ease<br />

of online shopping and free returns has<br />

fundamentally changed the way people<br />

shop and Barclaycard’s research found that<br />

30 per cent of shoppers deliberately overpurchase<br />

then return unwanted items.<br />

The problem is such that some small<br />

businesses are actively turning away from<br />

online trading. According to Barclaycard’s<br />

research, more than one-fifth (22 per cent)<br />

of bricks-and-mortar retailers choose not to<br />

sell online due to concerns about the costs<br />

of managing deliveries and returns.<br />

I don’t believe that independent jewellers<br />

are doomed if they decline to offer<br />

e-commerce. Quite the opposite, in fact.<br />

If you weigh up the development costs<br />

and the ongoing fees and management to<br />

offer online shopping, the better option for<br />

most stores is to leave it to the big boys.<br />

Go back to basics and focus on good, old<br />

customer interaction, excellent advice and<br />

product knowledge.<br />

The largest indicator that there’s life in<br />

traditional retail is that once online-only<br />

businesses are now opening bricks and<br />

mortar stores.<br />

It’s back to the future, all over again!<br />

Coleby Nicholson<br />

Managing Editor<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 9


UPFRONT<br />

“To make the<br />

universe! A<br />

customer had a<br />

set of coloured<br />

diamonds which<br />

I set into a ‘solar<br />

system’ inspired<br />

engagement ring<br />

with a detachable<br />

head.”<br />

What’s the quirkiest request you’ve ever had?<br />

MATT LORETAN, MATT<br />

LORETAN JEWELLERY<br />

BULLETIN BOARD<br />

n DINNER TIME<br />

Mixing dining and retail is making<br />

its mark in the jewellery industry.<br />

After Tiffany & Co opened a café last<br />

year, watch brand IWC followed suit,<br />

becoming the first watchmaker with<br />

its very own bar. Retailers could use<br />

this for inspiration on how to sell<br />

experiences – not just products<br />

– to customers.<br />

n BREATHE IN<br />

Having “fresh, breathable air” is one<br />

way retailers can hold on to their best<br />

employees. According to an article by<br />

Entrepreneur, good indoor air quality<br />

is one of the most important factors<br />

for workers. “This is just one simple<br />

measure businesses can take to help<br />

their [employees] feel and perform<br />

better,” it added.<br />

n THE COFFEE TEST<br />

Marketing writer David Newman<br />

shares with retailers: “Imagine you are<br />

having a cup of coffee with a friend.<br />

Could you read from your website<br />

without having them choke with<br />

laughter or stare in confusion? If the<br />

answer is no, write what you would<br />

feel comfortable saying.”<br />

“A customer<br />

requested for a<br />

ring to be made<br />

from a mould<br />

of a real<br />

McDonalds<br />

french fry, as<br />

they were a big<br />

potato fan.”<br />

DIGITAL<br />

BRAINWAVE<br />

KRISTA BRADLEY,<br />

WINDFALL JEWELLERY<br />

“A 9-carat gold,<br />

cat shaped urn<br />

pendant for a<br />

cat’s ashes. It<br />

had a screw off<br />

top where the<br />

customer could<br />

put the ashes in.”<br />

LOUISE SHAW, LOUISE<br />

SHAW JEWELLERY<br />

INSTASHOP TIL YOU DROP<br />

Instagram’s latest updates have officially landed<br />

down under. Rolled throughout Australia in late<br />

March, Instagram’s ‘shopping’ feature now allows<br />

retailers to directly list products for sale within<br />

their posts. With a capacity to tag up to five products per post – filters and captions are<br />

optional – consumers will see a product description, how much the item costs, and a<br />

link directly to the buyer’s website in order to purchase the item. It’s only a matter of<br />

time before “less transactional, more actionable” modes of shopping change the way<br />

jewellers use this social media juggernaut in the future.<br />

TOP PRODUCT<br />

Pierre Cardin’s new timepiece, distributed<br />

by Instyle Watches, features an opal dial<br />

and a 41 mm round stainless steel case. The<br />

19 mm band is available in stainless steel<br />

mesh or leather. It was the most popular<br />

product last month ranked by views at<br />

jewellermagazine.com.<br />

VOICE OF THE AUSTRALIAN<br />

JEWELLERY INDUSTRY<br />

jewellermagazine.com<br />

Editor<br />

Coleby Nicholson<br />

Journalists<br />

Alex Eugene<br />

alex.eugene@jewellermagazine.com<br />

Talia Paz<br />

talia.paz@gunnamattamedia.com<br />

Advertising Manager<br />

Gary Collins<br />

gary.collins@jewellermagazine.com<br />

Digital Manager<br />

Angela Han<br />

angela.han@gunnamattamedia.com<br />

Production Manager<br />

& Graphic Design<br />

Jo De Bono<br />

art@gunnamattamedia.com<br />

Accounts<br />

Paul Blewitt<br />

accounts@gunnamattamedia.com<br />

Subscriptions<br />

info@jewellermagazine.com<br />

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

Gunnamatta Media Pty Ltd<br />

Locked Bag 26, South Melbourne,<br />

VIC 3205 AUSTRALIA<br />

ABN 64 930 790 434<br />

Phone: +61 3 9696 7200<br />

Fax: +61 3 9696 8313<br />

info@gunnamattamedia.com<br />

Copyright: All material appearing<br />

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

Reproduction in whole or in part is<br />

strictly forbidden without prior written<br />

consent of the publisher.<br />

Gunnamatta Media Pty Ltd strives to<br />

report accurately and fairly and it is<br />

our policy to correct significant errors<br />

of fact and misleading statements in<br />

the next available issue. All statements<br />

made, although based on information<br />

believed to be reliable and accurate at<br />

the time, cannot be guaranteed and<br />

no fault or liability can be accepted<br />

for error or omission. Any comment<br />

relating to subjective opinions should<br />

be addressed to the editor.<br />

Advertising: The publisher reserves<br />

the right to omit or alter any<br />

advertisement to comply with<br />

Australian law and the advertiser<br />

agrees to indemnify the publisher for<br />

all damages or liabilities arising from<br />

the published material.<br />

10 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


Middle East & Europe: +972.3.575.0011 Far East: +852.2111.2811 America: +1.212.302.0002


NEWS<br />

NEWS<br />

Gold dealer fronts court over robberies<br />

Gold and diamond dealer Alejandro<br />

Mendieta Blanco, who was charged<br />

by Victoria Police with selling stolen<br />

jewellery last year, has faced court on<br />

hundreds of charges.<br />

Along with Julio Mendieta Blanco and Chey<br />

Tenenboim, Mendieta Blanco faced the<br />

Melbourne Magistrates Court on Monday 9<br />

April on 453 separate charges. It was alleged<br />

he and the co-accused had knowingly<br />

received and sold jewellery stolen from a<br />

series of armed robberies.<br />

According to a report by The Age,<br />

Mendieta Blanco has also been charged<br />

with undervaluing customer’s gold and<br />

attempting to “rip off” customers. “In one case,<br />

they classified jewellery as nine carats when it<br />

was worth 14 [carats],” the report stated.<br />

It is understood that next month, the court<br />

will hear testimony from some of the alleged<br />

armed robbers, as well as “civilian witnesses”<br />

who will give evidence on how their jewellery<br />

had been stolen.<br />

As previously reported by <strong>Jeweller</strong>, Mendieta<br />

Blanco has also been implicated in two other<br />

investigations.<br />

In January <strong>2018</strong>, Mendieta Blanco was<br />

ABC earns gold accreditation<br />

Australian independent business ABC<br />

Refinery has recently earned accreditation<br />

on the Shanghai Gold Exchange (SGE),<br />

the official network for all Chinese gold<br />

sales. The award means ABC Refinery – a<br />

division of Pallion – is now one of just seven<br />

international firms with accreditation by<br />

both the London Bullion Market Association<br />

(LBMA) and the SGE.<br />

ALEJANDRO MENDIETA BLANCO (CENTRE)<br />

ordered to pay diamond supplier Australian<br />

Diamond Trading Corporation (ADTC) more<br />

than $200,000. The judgement, which was<br />

handed down by the Supreme Court of<br />

Victoria, stemmed from a 2016 injunction<br />

between the ADTC and diamond dealer<br />

Ronnie Ben-Simon.<br />

In addition, Mendieta Blanco is reportedly<br />

being investigated by the Australian Taxation<br />

Office (ATO) for his alleged participation<br />

in the goods and services tax (GST) fraud<br />

scheme involving the gold bullion and<br />

precious metals industries. The investigation<br />

began after a business activity statement was<br />

submitted for his Sell Your Gold business that<br />

requested a GST refund of approximately $1<br />

million. The three men are expected to face<br />

court again on 7 <strong>May</strong>.<br />

Diamond and opal<br />

awards open now<br />

Diamond Guild Australia (DGA) has<br />

announced its Diamond <strong>Jeweller</strong>y<br />

Design Awards will now take place<br />

in August. The biennial awards focus<br />

on designs that incorporate natural<br />

diamonds. As previously reported<br />

by <strong>Jeweller</strong>, they were originally<br />

scheduled for <strong>May</strong>.<br />

“The decision to reschedule our awards<br />

has been taken after learning that there<br />

will not be other jewellery industry<br />

design awards held in <strong>2018</strong>,” DGA<br />

executive officer Melissa James said in<br />

a media statement. “This has allowed us<br />

to revise the timeframe for our awards<br />

to give all participants more time to<br />

prepare their entries. We believe this<br />

will ensure the highest standard of<br />

design and number of entrants.”<br />

The Diamond Guild Awards have<br />

been held biennially since 2005.<br />

The upcoming event will be the<br />

8th competition conducted by the<br />

industry association.<br />

In other local awards news, the<br />

Queensland Boulder Opal Association<br />

has announced entries for its<br />

annual opal jewellery design<br />

awards have opened.<br />

According to the association, the<br />

Queen of Gems International Boulder<br />

Opal <strong>Jeweller</strong>y Design Awards are one<br />

of very few local jewellery competitions<br />

offering cash prizes for the winning<br />

entries. The three categories –<br />

professional jeweller, emerging jeweller<br />

and object design – encourage entrants<br />

to “showcase the modern opal jewel<br />

through limitless creative energies”.<br />

“Taking Australian gold to the world’s largest<br />

physical bullion market is a critical strategic<br />

initiative for ABC Refinery and the Pallion<br />

group,” Phillip Cochineas, managing director<br />

of ABC Refinery said.<br />

“It is also a significant demonstration of the<br />

strong bilateral trade between our respective<br />

countries,” he added.<br />

ABC REFINERY EARNS SGE CREDENTIALS<br />

To secure accreditation for the Shanghai<br />

Gold Exchange, ABC Refinery had to prove<br />

its ‘technical excellence’ and the skills<br />

and commitment of its staff. It is widely<br />

known that SGE takes a firm stance on<br />

gold impurities. Accredited gold must be a<br />

minimum of 99.99 per cent metallic purity.<br />

REVISED DATE FOR DIAMOND GUILD AWARDS<br />

12 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


NEWS<br />

JAA accounting investigation continues<br />

IN BRIEF<br />

The Institute of Public Accountants’ (IPA)<br />

investigation into concerns over the<br />

‘audit’ of the JAA’s 2017 Financial<br />

Statements is continuing.<br />

On 18 October 2017, the JAA published<br />

its financial accounts in time for its annual<br />

general meeting; however, among other<br />

errors, five different trading results (losses)<br />

were recorded throughout the report.<br />

The Financial Statements also raised many<br />

other questions. Five days later, the JAA<br />

issued an email blaming the JAA auditors,<br />

stating they “have acknowledged some<br />

typographical errors and are in the process<br />

of rectifying these mistakes and formerly<br />

explaining what has occurred.”<br />

The Independent Auditor’s Review Report<br />

was listed in the contents page, but was not<br />

included to members even though the JAA<br />

recorded an auditing fee of $4,180 at page 15.<br />

At the time there was confusion over which<br />

accounting firm had acted for the JAA and<br />

allegedly made the errors.<br />

A representative of the JAA’s long-term<br />

auditing firm, Barry Mendel Frank & Co (now<br />

Kelly & Partners) told <strong>Jeweller</strong> that although<br />

the firm had completed an Independent<br />

Review – not a formal Audit – for the previous<br />

year (FY16), it had not prepared any 30 June<br />

2017 Financial Statements for JAA members.<br />

It was later established that the JAA had<br />

appointed a new accountant Mr Harminder<br />

(Harry) Grewal, a member of the IPA.<br />

Therefore, it appeared that the “typographical<br />

errors” were his responsibility. Grewal<br />

operates a small Sydney-based practice<br />

called Transition Accounting.<br />

ADDITIONAL REVELATIONS<br />

The Financial Statements were signed-off by<br />

the JAA board, which raised further questions<br />

as to why the glaring errors were not<br />

identified by at least one of the six directors.<br />

In accordance with Australian Charities<br />

and Not-for-profits Commission (ACNC)<br />

requirements, the JAA’s financial reports must<br />

be either ‘audited’ or undergo a ‘independent<br />

review report’ by a suitably qualified,<br />

independent accounting professional.<br />

A second set of Financial Statements<br />

was issued by the JAA on 31 October<br />

rectifying the obvious errors; however,<br />

the report did not “formerly explain”<br />

how the errors had occurred.<br />

That second report also contained an<br />

independent review report signed by Grewal.<br />

However, many of the questions previously<br />

raised surrounding Australian Accounting<br />

Standards (AAS) were not addressed. For<br />

example, the FY17 trading loss (–$131,819)<br />

represented an 850 per cent change when<br />

compared to the previous year’s result<br />

(–$13,878) and the accounts provided a zero<br />

balance for impairment (bad debt provision).<br />

This seemed unusual given that the JAA’s<br />

trade receivables (debtors) had doubled in<br />

the past 12 months from $39,225 in FY16 to<br />

$84,788 and the JAA had recorded a bad debt<br />

figure the previous year.<br />

Brandt confirmed that of $84,788 recorded<br />

in the JAA debtors, $50,000 -$60,000 alone<br />

pertained to just one amount: a legal dispute<br />

with Expertise Events, which had already<br />

been in progress for 6 -12 months.<br />

It’s believed that the IPA’s investigation is<br />

seeking to clarify why that amount was not<br />

identified in the 2017 Financial Statements<br />

and which, if it had, would have placed<br />

the JAA in a negative equity position of<br />

$60,000–$80,000.<br />

Under AAS rules for ‘Impairment and<br />

Uncollectibility of Financial Assets,’ the board<br />

and auditor have an obligation to declare<br />

and record “whether there is any objective<br />

evidence that a financial asset or group of<br />

financial assets is impaired.”<br />

The IPA began its formal investigation late<br />

last year.<br />

A spokesperson for the IPA Compliance<br />

division told <strong>Jeweller</strong> the investigation is still<br />

in progress and cases are typically “completed<br />

within six to nine months, and around<br />

twelve months for matters referred to the IPA<br />

Disciplinary Tribunal.”<br />

JAA president Selwyn Brandt was contacted<br />

for comment but at the time of publication<br />

he had not responded.<br />

+ MORE BREAKING NEWS<br />

JEWELLERMAGAZINE.COM<br />

*<br />

PAYMENT PAIN<br />

The Australian Retailers Association<br />

(ARA) has released a public statement<br />

saying it will push for “payments pain<br />

reduction” for retailers. A submission<br />

to the Productivity Commission (PC)<br />

advocated to reduce the cost of tapand-go<br />

payments, saying the method<br />

accounts for two thirds of card payments<br />

in Australia. “The findings of the PC show<br />

that retail merchants are struggling to<br />

manage the high costs associated with<br />

Australia’s current payments system,”<br />

Russell Zimmerman, executive director<br />

of the ARA said. “As customers expect<br />

retailers to adopt innovative, seamless<br />

and efficient payment options, they are<br />

left with little choice but to bear<br />

the cost burden.”<br />

*<br />

SEIKO JOINS DESIGN EVENT<br />

Watch supplier Seiko has participated<br />

in Milan Design Week for the first time.<br />

Counted as one of the world’s largest<br />

design events, the show drew over<br />

343,000 international visitors in 2017. The<br />

Grand Seiko watch was included in an<br />

exhibition titled ‘The Flow of Time’, which<br />

featured installations by two prominent<br />

Japanese artists.<br />

*<br />

INDIAN SCANDAL CONTINUES<br />

Further allegations have emerged about<br />

the Indian diamantaire who was recently<br />

exposed for large scale financial fraud.<br />

According to a Times of India report,<br />

Nirav Modi also allegedly swapped<br />

rough diamonds for synthetic stones in<br />

internationally exported jewellery. Modi’s<br />

company Modi Firestar Diamonds has<br />

since filed for bankruptcy, and is alleged<br />

to have obtained fraudulent loans from<br />

Punjab National Bank to the value of at<br />

least US$1.8b (AU$2.4b).<br />

*<br />

ONLINE LUXURY<br />

UK-based online retailer Net-a-Porter<br />

has launched a fine jewellery and watch<br />

‘emporium’. The site paired with Cartier<br />

in 2017, and sold a watch valued at<br />

over £113,000 (AU$208,000) on the<br />

first day of offering.<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 13


NEWS<br />

Family jeweller celebrates a century<br />

One of Adelaide’s oldest family owned<br />

jewellers is celebrating 100 years in<br />

business, providing a positive example of<br />

longevity in the jewellery industry.<br />

Archer & Holland, which is owned by<br />

Meredith and Bill Whiting, celebrated the<br />

milestone event by having their store name<br />

presented on one of Adelaide’s city trams. It<br />

will be displayed for the next three months<br />

as part of the celebrations.<br />

“The tram is a sentimental piece of history<br />

for all of us at Archer & Holland. We are the<br />

first private business to advertise on an<br />

Adelaide tram,” the Whitings said in a media<br />

statement. “As a family business, we are so<br />

pleased to celebrate this milestone year with<br />

our team and loyal customers. We couldn’t<br />

think of a better way to showcase our history<br />

and in such a significant place.”<br />

The business was founded by Herbert Archer<br />

and Herbert Holland in 1918, and eventually<br />

was taken over by Holland’s daughters in<br />

the 50s. His grandson Bill and wife Meredith<br />

went on to buy Archer & Holland in 1992 –<br />

although it was a rocky road to where<br />

they are now, in the City Cross Arcade,<br />

Rundle Mall.<br />

“Meredith and I took over Archer &<br />

Holland from my parents after surviving the<br />

recession of the late 80s,” Bill told <strong>Jeweller</strong>.<br />

“Our early years in the business were<br />

challenging as we had to build up Archer<br />

& Holland again. The shop had many store<br />

locations over the years, and people had<br />

trouble finding us. We had to build customer<br />

MEREDITH AND BILL WHITING<br />

confidence again and secure our position in<br />

the jewellery market.<br />

“Being a manufacturer brought more<br />

customers to the shop and increased trade<br />

dramatically, as most jewellers used to send<br />

their repairs away. We also started selling<br />

second hand jewellery to the public.”<br />

The jeweller also specialises in unique,<br />

custom designs, including engagement<br />

and wedding rings. “Bill, who has created<br />

stunning pieces of jewellery for over 40<br />

years, manufactures and repairs all pieces in<br />

store,” Meredith added.<br />

‘“We feel proud and lucky that we’ve<br />

been able to succeed, not only as a family<br />

business but also having managed to build<br />

up our loyal client base,” Bill continued. “This<br />

year, we are proud to work with our family<br />

serving our wonderful and loyal customers –<br />

and hope to do so for many years to come.”<br />

“WE FEEL PROUD<br />

AND LUCKY THAT<br />

WE’VE BEEN ABLE<br />

TO SUCCEED,<br />

NOT ONLY<br />

AS A FAMILY<br />

BUSINESS BUT<br />

ALSO HAVING<br />

MANAGED TO<br />

BUILD UP OUR<br />

LOYAL CLIENT<br />

BASE”<br />

Asked if any jewellery pieces stood out<br />

during their 25 years owning the business,<br />

the Whitings both noted an “amazing” ring:<br />

“One of our interstate clients had a custom<br />

made here in Adelaide – a 3.05-carat white<br />

diamond. It took over 40 hours to design and<br />

craft. The ring was valued at $150,000.”<br />

The Archer & Holland tram will travel along<br />

Adelaide’s Hindmarsh– Glenelg line until<br />

June <strong>2018</strong>. i<br />

14 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


RETAIL<br />

ARA<br />

SALES AND SERVICE: THE FIBRE OF AUSTRALIAN RETAIL<br />

Sales and service have always been the<br />

backbone of retail. But as technology,<br />

the economy, the environment and social<br />

awareness change, so too must retailers<br />

and consumers. RUSSELL ZIMMERMAN<br />

explains how to keep up.<br />

Business terms like connection, relationship<br />

building, consumer loyalty and customer<br />

experience are increasingly used to express<br />

the new ways retailers and consumers<br />

interact. Customers now have immediate<br />

access to information about price and<br />

competition, which is changing the way<br />

traditional retailers operate.<br />

The ability to comment on social media is<br />

challenging retailers who have low customer<br />

service standards. This is great news for brands<br />

with a commitment to customer service,<br />

and retailers who offer a unique product,<br />

but unfortunate news for others. The trading<br />

environment may be rough, but there is a real<br />

opportunity for dynamic businesses to thrive<br />

in the new world of retail.<br />

BE CUSTOMER-CENTRIC<br />

In today’s retail environment, being customercentric<br />

is all about having an underlying<br />

commitment to placing the customer’s<br />

interest at the centre of every business<br />

decision. The classic saying ‘the customer<br />

is king’ is now more relevant than ever. But<br />

rather than signaling the death of retail, this<br />

attitude creates an opportunity for retailers<br />

to tailor their offering and provide value that<br />

goes deeper than the product itself.<br />

Retailers need to become smarter about how<br />

they connect with, and appeal to their desired<br />

customers. There is no better time than now<br />

to be a retail customer because there is so<br />

BEING<br />

CUSTOMER-<br />

CENTRIC IS ALL<br />

ABOUT HAVING<br />

AN UNDERLYING<br />

COMMITMENT<br />

TO PLACING THE<br />

CUSTOMER’S<br />

INTEREST AT<br />

THE CENTRE OF<br />

EVERY BUSINESS<br />

DECISION<br />

much choice. Using technology, consumers<br />

are able to globally source, price and<br />

purchase products from the comfort of their<br />

living room, or in-store via their smartphone.<br />

Retailers both large and small benefit from<br />

paying close attention to how they develop<br />

their sales and service strategies, because in<br />

modern retail, the success of their business<br />

depends on it.<br />

STAFF ARE THE SPIRIT OF RETAIL<br />

The spirit of retail lies with its staff, as<br />

salespeople are essential to the growth and<br />

sustainability of the retail industry. How staff<br />

approach, interact with, learn about, and<br />

introduce their product to customers is a<br />

strong part of the business, and every effort<br />

made to resolve customer expectations or<br />

complaints are an investment.<br />

When customers measure the performance<br />

of a retailer, brand or store, a different set<br />

of rules apply. Each customer varies, and<br />

they may have differing expectations for<br />

certain retailers. However, there are several<br />

consistencies in how they decide whether a<br />

retail experience was to their liking or not.<br />

Ultimately the aim of great sales people is<br />

to develop long-term relationships, which<br />

provide an opportunity for future sales.<br />

INVEST IN A SUPERIOR WORKFORCE<br />

With great service being the key to retail<br />

success, it’s important to take a close look<br />

at the recruitment process. Employment,<br />

training and staff development all<br />

contribute to business growth and<br />

sustainability. Investing in superior retail staff<br />

not only instills a strong service culture, but<br />

it also gives staff an opportunity to grow.<br />

HERE TO HELP<br />

The Australian Retailers Association (ARA)<br />

assists retailers to enhance the staff<br />

development process, transforming retail<br />

from a stepping-stone industry to a longterm<br />

and fulfilling career.<br />

Their training department provides<br />

employment training solutions, which<br />

include Retail Buying, Visual Merchandising,<br />

Financials, Marketing, Operations, and Sales<br />

and Service Strategy.<br />

The ARA also promotes and protects<br />

employer interests. As Australia’s largest<br />

retail peak body industry, the ARA is a strong<br />

pro-active advocate for Australian retail.<br />

The ARA works to ensure retail success by<br />

informing, protecting, advocating, educating<br />

and saving money for its small, medium and<br />

large members. i<br />

RUSSELL ZIMMERMAN is<br />

is the executive director<br />

of the Australian Retailers<br />

Association (ARA).<br />

Email: info@retail.org.au<br />

The Australian Retailers Association (ARA) is the largest association representing the country’s<br />

$310 billion retail sector, which employs more than 1.2 million people. Providing expert advice<br />

across multiple disciplines including leasing and wage rates, the ARA’s mission is to ensure<br />

retail success by informing, protecting, advocating, educating and saving money for members.<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 15


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FASHION JEWELLERY<br />

Perfectly<br />

imperfect<br />

TREND SETTERS ALL OVER THE<br />

GLOBE HAVE SPOKEN: DAINTY,<br />

‘IMPERFECT’ STYLES ARE SHAPING<br />

THIS SEASON’S FASHION<br />

JEWELLERY SCENE. TALIA PAZ<br />

DETAILS HOW RETAILERS CAN MAKE<br />

THE MOST OF THESE OFFERINGS.<br />

ewellery retailers appreciate how fickle fashion can<br />

be – bold statement pieces make way for minimalist,<br />

subtle styles faster than one can put together a window<br />

display for an upcoming season.<br />

This season’s hottest pieces are inspired by fine art,<br />

nature and life’s ‘imperfections’, a sharp contrast to the delicate<br />

aesthetic that has characterised the fashion jewellery landscape<br />

these last few years.<br />

What does this mean exactly? Think mismatched earrings, organic<br />

and sculptural necklaces, bracelets and rings that resemble<br />

molten metal, and whimsical designs inspired by nature.<br />

“Fashion has a recent preoccupation with all things imperfect<br />

– ugly footwear, unisex styles, asymmetrical hems, and<br />

mismatched prints,” Kimberly Ong wrote for renowned fashion<br />

magazine Harpers Bazaar in a March <strong>2018</strong> article. “Fashion has<br />

now embraced [this trend] in all its imperfect glory, and we’re<br />

certain it’s here to stay.”<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 17


®<br />

TONES & SILVER<br />

WHOLESALERS OF QUALITY JEWELLERY<br />

LES GEORGETTES HIPP CARLY PAIKER<br />

Showroom – Braeside VIC<br />

Ph: +61 3 9587 1215<br />

Email: info@stonesandsilver.com.au<br />

TREND ME HAPPY<br />

Fashion has long been about wearing statement<br />

pieces that catch the eye; however, this season<br />

the trend has extended to wearing ‘extra-special’<br />

designs that stand out even more. Local designer<br />

Carly Paiker, whose collections range from<br />

stocking “very chunky” statement pieces to ultrafine<br />

delicate pendants and rings, explains further.<br />

“For the remainder of <strong>2018</strong>, ear lobes will<br />

continue to demand attention, with statement<br />

earrings being the focus,” Paiker says. “This means<br />

arty, mixed materials, mismatched and with a<br />

handmade feel. There is also an underwater theme<br />

coming through with irregular pearls, beaten<br />

metals in gold metal tones – think pirate’s treasure,<br />

lost ancient coins and a mermaid’s jewel box.”<br />

Such earrings can be worn as a pair or individually<br />

for an “electric take on asymmetry,” Anna Lapalca, a<br />

journalist at Who What Wear, rightfully notes.<br />

Cheryle Roberts, managing director of supplier<br />

Stones & Silver, adds that pearl and turquoise styles<br />

are also having a serious moment. “Our clients are<br />

loving the two tones of silver and rose gold, so we<br />

are always looking for trends with these metals,”<br />

Roberts says. “Black rhodium is always popular in<br />

winter too – fashion tends to focus on greys and<br />

blacks in winter, and black goes with everything.”<br />

According to Debbie Faraday, creative director of<br />

Pernille Corydon <strong>Jeweller</strong>y distributor Hipp, there<br />

has also been a strong shift back to yellow gold:<br />

“Feminine, sophisticated and well-priced pieces<br />

are the focus here.”<br />

Charlotte Blakeney agrees with these sentiments.<br />

The local designer, whose business By Charlotte<br />

counts Miranda Kerr and Elle Macpherson as<br />

customers, says pendant necklaces, statement<br />

hoop earrings and signet rings are also key trends<br />

shaping this season’s fashion jewellery scene.<br />

“This year has also seen a move towards spiritual<br />

and personalised jewellery. In particular, we’re<br />

seeing a push for birth stones and zodiac-themed<br />

pieces,” she adds.<br />

A recent Marie Claire article also offers some<br />

worthy insights into the latest trends: “Perhaps<br />

as an antidote to our troubled times, fashion has<br />

taken a turn for the contemplative, looking to<br />

nature as a source of inspiration and designing<br />

in ways that promote harmony rather than hate.<br />

The trick lies in artfully layering pieces of varying<br />

lengths, mixing metals and shapes for an organic,<br />

effortless effect.”<br />

The trend of customising one’s own jewellery also<br />

remains strong, according to Les Georgettes’ vice<br />

president Frederic Brunel-Acquaviva.<br />

“There’s an increasing demand for promoting<br />

your own personal sense of style, which is where<br />

personalisation of fashion jewellery comes into<br />

play,” Brunel-Acquaviva says. “This can never go<br />

out of fashion as it is unique to the individual. It’s<br />

therefore important for retailers to capitalise on<br />

this trend.”<br />

Ken Abbott, managing director of supplier<br />

Timesupply, adds his own thoughts on<br />

the popularity of customisable jewellery.<br />

“Personalisation and strong design are very<br />

important – this is what drives the value<br />

proposition for the customer, rather than the use<br />

of precious metals or stones,” he says.<br />

SLAYING THE GAME<br />

Retailers are expected to keep up with – even stay<br />

ahead of – seasonal fashion jewellery trends. This is<br />

where using multiple sources comes in handy.<br />

Global trend forecasting service WGSN, which<br />

supplies market intelligence to the jewellery<br />

industry, publishes forecasting reports throughout<br />

the year. Some relevant examples for jewellers<br />

include ‘Top jewellery Instagrams that inspire’ and<br />

‘Top 5 wedding jewellery Pinterest accounts.’


FASHION JEWELLERY<br />

Supplier Najo’s managing director Jo Tory believes<br />

another way retailers can keep up with seasonal<br />

trends is to continuously review the local and<br />

international fashion scene.<br />

“Like all trends, the jewellery industry mirrors what<br />

is happening with fashion. Styles on the runways<br />

trickle down into social media, celebs, stylists and<br />

publications, and become pedestrian,” Tory explains.<br />

As well as reviewing fashion runways, retailers can<br />

also benefit from paying attention to trends in<br />

other locations. “I would suggest being on trend<br />

is more valuable than being ahead of the trend,”<br />

Abbott says. “Look towards Europe for a feel of what<br />

is trending and the UK for what is selling through.”<br />

Of course, in today’s image-obsessed world, where<br />

celebrities and fashion ‘it girls’ are heavily revered<br />

for their style, social media plays heavily into how<br />

retailers can keep up with the latest trends.<br />

Displays that dazzle<br />

What advice can you offer retailers regarding<br />

merchandising and window displays?<br />

<<br />

“How product is displayed is the very first and<br />

important part of the selling process – be<br />

creative; do things differently, don’t look like the<br />

jewellery shop down the road. Try and tell a story<br />

with your display by using props to capture the<br />

attention of window shoppers – it works.”<br />

Helen Thomspon-Carter, Fabuleux Vous<br />

“It’s all about getting the balance right – eye-catching ><br />

enough to grab somebody’s attention without displays<br />

being too overcrowded with products. Suppliers need<br />

to provide full merchandising offers to match jewellery,<br />

which is very important for any brand’s image. Everything,<br />

from the packaging to the stands, should be coordinated<br />

to show the variety of possibilities and colours on offer,<br />

providing the consumer with a full experience.”<br />

Frederic Brunel-Acquaviva, Les Georgettes<br />

<<br />

“Look at the big successful brands that have tried<br />

and proven POS merchandising guidelines for<br />

inspiration; they make creating in-store displays<br />

very easy.” Ken Abbott, Timesupply<br />

“Displays that have imagery and branding<br />

will help bring the pieces to life and add<br />

context to what can otherwise look messy.”<br />

Debbie Faraday, Hipp<br />

>


This season’s<br />

“Our number one item currently being sold<br />

is a classic drop earring with a rose gold ball.<br />

However, our sterling silver bangles and rings<br />

that are combined with brass, copper and<br />

gemstones will also continue to be sought<br />

after.” Cheryle Roberts, Stones & Silver<br />

“Our Seafaring hoops are currently<br />

the number one item. Inspired by<br />

ancient underwater treasures, with<br />

their irregular finish creating a drastic<br />

sparkle, they steal the show!”<br />

Carly Paiker, Carly Paiker<br />

“All the items from our Lacey range.<br />

They’re different, very on trend, well made<br />

and exceptionally well-priced. Pieces<br />

come in different shapes and already<br />

have proven to be best sellers.” Helen<br />

Thomspon-Carter, Fabuleux Vous<br />

“After the success of our ring and necklace collections<br />

last year, this season we’re introducing our debut<br />

collection of customisable earrings. Our concept<br />

remains the same as with our bracelets; choose your<br />

earring design, size and finish and combine this with<br />

a pair of interchangeable, reversible colours, which<br />

can be transformed time and time again”. Frederic<br />

Brunel-Acquaviva, Les Georgettes<br />

“Choosing one item is hard! But if I had<br />

to, I would choose the Eternal Harmony<br />

Necklace, which is the standout statement<br />

piece from my upcoming collection<br />

‘Awaken’. The inspiration behind this piece is<br />

travel – I love learning about new<br />

cultures and exploring spiritually.”<br />

Charlotte Blakeney, By Charlotte


Silver Fusion<br />

<strong>Jeweller</strong>y<br />

FABULEUX<br />

VOUS<br />

“Today, social media plays a huge role in<br />

influencing consumer’s choices in just about<br />

everything, and fashion jewellery is no exception<br />

to this,” Bruenel-Acquaviva says. He adds that<br />

many big jewellery names have shifted to creating<br />

“influencer marketing strategies”.<br />

Helen Thompson-Carter, director of supplier<br />

Fabuleux Vous agrees: “Social influencers on<br />

social media definitely influence consumer’s<br />

fashion jewellery choices. Retailers need to<br />

[capitalise on this by] following fashion bloggers<br />

and trends online.”<br />

As well as using social media to stay on top of<br />

trends – “Instagram is still the best way to see<br />

the trends, both local and overseas,” Faraday<br />

declares – the platform can be used to filter<br />

trends down to consumers.<br />

“Instagram is an open market where anyone can<br />

be involved, from hobby businesses to the couture<br />

brands we find on the Paris runway,” Paiker explains.<br />

“It is a melting pot of creativity and has a driving<br />

influence on our customers’ purchasing decisions.”<br />

Instagram influencers have also had a profound<br />

impact on consumer buying habits, Blakeney<br />

notes. “The younger generation of shoppers are<br />

now in tune with global fashion trends more<br />

than ever, noting what and who their role models<br />

are wearing,” she says. “Social media has become<br />

incredibly important as it heightens our consumer<br />

communication and engagement – we are able to<br />

tap into the wants and needs of today’s customers<br />

in relevant time.”<br />

Although there is a strong emphasis on using social<br />

media platforms to dictate, observe and inform<br />

retailers and consumers on up-and-coming trends,<br />

many suppliers agree it’s not the only strategy that<br />

should be used.<br />

“We strive to keep our retailers informed about<br />

new season pieces ahead of official launch dates<br />

through newsletters<br />

that introduce<br />

new trends<br />

and designs,<br />

along with a<br />

link to download<br />

sales kits and order<br />

forms,” Bruenel-Acquaviva<br />

explains.<br />

“Many also forget the power of<br />

consumer magazines. It is still a very relevant form<br />

of marketing, whether it be in print form or online.”<br />

Thompson-Carter is of the same mind. “Retailers<br />

should also be following fashion jewellery trends<br />

in print media – essentially, fashion magazines,”<br />

she says. “They should also note that the styles of<br />

the royal family – Kate and Meghan – are also very<br />

influential right now.”<br />

However, it’s not just famous people influencing<br />

consumer’s choices, Faraday says. “Friends with<br />

great taste can be quite inspirational within their<br />

social circle,” she adds.<br />

At the end of the day, consumers really are spoilt<br />

for choice when it comes to fashion jewellery.<br />

With so much competition, how can retailers<br />

stand out from the pack? Faraday offers some final<br />

words of advice.<br />

“Offer a variety of ‘point-of-difference ranges’ with<br />

beautiful packaging and appealing POS displays,”<br />

she recommends. “Retailers should think outside<br />

the square and offer their customers something<br />

different, unexpected and refreshing. This will<br />

encourage repeat business and make their<br />

store a destination.”<br />

The ever-popular fashion jewellery landscape will<br />

continue to evolve; however, by combining simple<br />

strategies with the right on-trend stock, retailers<br />

can be sure that customers will be more than<br />

satisfied this season. i<br />

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CAD/CAM<br />

EVOTECH PACIFIC<br />

Modern-day<br />

AS TECHNOLOGY IMPROVES AND BECOMES MORE<br />

ACCESSIBLE, CAD/CAM HEADS CLOSER TO BECOMING PART<br />

OF EVERY JEWELLER’S TOOLBOX. ALEX EUGENE REPORTS.<br />

f you think it’s tough being a retail jeweller today, spare a thought for Pierre<br />

Bézier. A pioneer of CAD software, the French engineer did some of his<br />

most important work in a prisoner of war camp in 1940s Germany. Bézier’s<br />

ground-breaking research – originally for the car industry – went on to be<br />

adapted in everything from space travel to dentistry. Today, computeraided<br />

design and computer-aided manufacturing, commonly known as CAD/<br />

CAM, is no longer confined to science and industrial applications; it’s also<br />

becoming synonymous with jewellery design.<br />

TIMES ARE A-CHANGIN’<br />

It wasn’t long ago that jewellers saw CAD/CAM as a threat to business or, as<br />

Chris Hill, 3D product manager at supplier LST Group puts it, “A jeweller’s dirty<br />

little secret.” Today, the cutting-edge software and manufacturing technology is<br />

recognised as the perfect complement to a jeweller’s bench top.<br />

“CAD/CAM is at the forefront of a successful business,” Hill says. “Today, the trend<br />

is to bring the CAD software out front to engage with the customer and offer<br />

3D-printed plastic models for a trial fit.”<br />

Trevor Sim, director of Clayfield <strong>Jeweller</strong>y, has been doing just that. “Clients these<br />

days are savvy; they love to embrace the technology and interact in the design<br />

process. The sales increase has also been unforeseen,” Sim says.<br />

Ben Farago is production manager at manufacturing company Rapid Casting.<br />

He says jewellers now want in-house CAD/CAM tools.<br />

“As more jewellers are exposed to CAD/CAM, they know when a project would<br />

benefit from it,” Farago explains, adding, “It’s now quite common to have a lowcost<br />

3D printer in small workshops.”<br />

One of the best ways to combine technology with craftsmanship is by making<br />

component pieces, according to Grant George, operations manager at metal<br />

refiner and supplier Morris & Watson.<br />

“A jeweller will use castings to do three or four settings separate of the shank,<br />

then put it together with a laser welder,” George says. “No solders required, and<br />

you’ve got a top-class product that looks 100 per cent handmade – it’s almost<br />

impossible to tell because it’s so well done.”<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 23


Remember when you were a<br />

kid, and everyone said;<br />

“In the future,<br />

you’ll be able to do almost<br />

anything with a computer”<br />

and<br />

“every kid will have a<br />

hover board”<br />

MORRIS & WATSON<br />

I guess 1 out of 2 aint bad<br />

Jason Tran, CAM team leader at Pallion agrees that the popularity<br />

of ‘component design’ is on the rise: “With CAD/CAM, the shank can<br />

now be drawn and printed to minimise loss, while still allowing for the<br />

setting to be handmade.”<br />

This is particularly important as consumers still prefer handmade<br />

jewellery, according to Darren Sher, director of casting and refining<br />

house Chemgold.<br />

“Handmade jewellery is still going strong as our stock gauge and<br />

solder sales have increased,” Sher says. “It’s fantastic to see traditional<br />

bench and new technology being used side by side.”<br />

Another reason why jewellers are embracing the technology is to help<br />

them compete against the flood of generic, mass-produced goods in<br />

chain stores.<br />

Stapleton <strong>Jeweller</strong>s is a second generation, family-owned jewellery<br />

store that has been in business since 1972.<br />

John Stapleton says that CAD/CAM has helped them to “thrive and<br />

survive in these changing times”. “As a small jewellery retailer in a<br />

shopping centre, we are able to profitably take on work that others<br />

show no interest in,” Stapleton explains.<br />

Hill agrees, adding, “A good jewellery-specific CAD software and inhouse<br />

3D printer enables the jeweller to deliver something unique.<br />

They can quickly generate interest on new designs through social<br />

media, adapt to trending fashions and lower overheads with less stock,<br />

all at a competitive price with enough margin to make it worthwhile,”<br />

he says.<br />

TECHNOLOGY IMPROVEMENTS<br />

Like all technology, CAD/CAM is always improving. As CAD software<br />

becomes easier to use, it attracts more jewellers willing to learn it.<br />

“The price of these technologies plus wait times and print costs have<br />

all reduced,” Tran says. “This has opened the technology up to those<br />

that may have shied away in the past.”<br />

Perhaps ironically, CAD/CAM has helped bring manufacturing back<br />

home to Australian soil.<br />

Phone: 1300 926 296


CAD/CAM<br />

The computer automation reduces the need for outsourcing labour.<br />

“Labour is very expensive here, so CAD/CAM has been a great help for jewellers<br />

to achieve more with fewer resources,” Sher explains, adding, “They can get extra<br />

assistance without increased staff or inventory costs.”<br />

Stapleton agrees: “Turnover is quicker and faster than if we were outsourcing<br />

overseas. Customers like to wear original jewellery and are proud to recommend<br />

where it came from.”<br />

Stapleton says he often purchases non-standard-sized, coloured stones because<br />

they are more affordable. This means jewellery pieces need to be adjusted<br />

for the stone size, which is easy with software. “We use CAD to easily re-size a<br />

setting, fitting in with our current designs,” he explains.<br />

Clayfield <strong>Jeweller</strong>y has also saved time with CAD/CAM. “If a client’s engagement<br />

ring requires a contour fit, we have the ability to import a 3D scan of the piece,”<br />

Sim says. “Instead of spending hours recreating that ring in Matrix to then design<br />

the wedder around it, the ring is in the software in 10 to 15 minutes– a saving of<br />

many hours at the computer, and ultimately a saving of dollars for the client.”<br />

Hill says 3D printers have been a “game changer” for many jewellers, particularly<br />

the Form 2 model from Formlabs. “It can print as many as 50 rings at a time or<br />

larger pieces like bangles, necklaces, brooches and watch cases – the cost of a<br />

ring can be as little as 10 cents in material,” Hill asserts, adding, “Standard resins<br />

can be used to prototype and test designs or offer a trial fitting so clients can<br />

LST GROUP<br />

buy with confidence. The Form 2’s precision produces a better surface finish,<br />

resulting in less polishing and metal loss.”<br />

Suppliers agree that demand for 3D printers is steadily increasing, thanks to<br />

affordability. “Improvements in 3D-printing technology mean there are more<br />

low-cost 3D printers on the market,” Farago confirms. “Due to the increased<br />

reliability and user friendliness of these machines, jewellers are seeing it as an<br />

effective tool to take control of their manufacture and keep it in house.”<br />

Anthony Nowlan, director of jewellery technology company Evotech Pacific, says<br />

there’s plenty to be excited about in the software realm.


PALLION<br />

Suppliers<br />

What will CAD/CAM look like in 2022?<br />

“I think we’ll see a decrease in rapid prototyping, in<br />

exchange for rapid manufacturing. Direct to metal<br />

manufacturing is not only advancing to create higher<br />

resolution pieces quicker than before, but is also falling<br />

in price.” - Anthony Nowlan, Evotechpacific<br />

“Sooner or later casting will be gone, and we’ll just be<br />

printing directly. I imagine going forward there will be<br />

a big choice of design libraries too.”<br />

- Grant George, Morris & Watson<br />

“To remain competitive, many jewellers will need to embrace<br />

CAD/CAM by outsourcing the design aspect to companies<br />

like Chemgold, or learn to use the software themselves. Direct<br />

metal printing could also be an option by 2022 if it becomes<br />

economically viable.” - Darren Sher, Chemgold<br />

“Direct metal printing will be the norm. Designs will be<br />

realised in shorter lead times, and creations will be made<br />

available digitally to the client, who will then be able to<br />

wear the piece through virtual reality before proceeding<br />

with the make.” - Jason Tran, Pallion<br />

“There are no real limits to what might be achieved with<br />

CAD/CAM in the future. By 2022, there will probably be<br />

commercially viable, high-resolution direct-to-preciousmetal<br />

3D printing.” - Ben Farago, Rapid Casting<br />

“By 2022 we will see a very different landscape of brands<br />

in the 3D printing market. There is huge investment in<br />

research and development in the race to deliver new 3D print<br />

advancements, at a fraction of the original cost.”<br />

- Chris Hill, LST Group


CAD/CAM<br />

“The Matrix V9 software has introduced new tooling, which assists<br />

in quicker design times without compromising on quality,” Nowlan<br />

begins. “Counter Sketch International software is regularly updated<br />

with improvements and new pieces to its libraries, and ZBrush has<br />

just released its <strong>2018</strong> upgrade, which I believe is more intuitive<br />

than before. It also contains powerful tooling for digital sculpture.”<br />

THE POWER OF BESPOKE<br />

It’s not just software and printer prices that have improved;<br />

jewellers’ creative talents have also gained an edge with CAD/CAM.<br />

“Having CAD/CAM can really set the smaller independents apart<br />

from the chains who can’t provide the specialised service,” Sher says.<br />

Such exciting possibilities have helped jewellers regain their creative<br />

mojo, according to Hill.<br />

“3Design CAD software and Formlabs 3D printers have reignited the<br />

passion to create beautiful, quality pieces,” he says.<br />

Stapleton relates a recent success story when he helped a client<br />

create a piece with “her memories and her own gold”. Using CAD<br />

software, he re-modelled three old diamond rings into one. “We were<br />

able to email her the renderings, then reproduce the model in resin<br />

with a 3D printer before handmaking the final ring,” he explains.<br />

Farago believes CAD/CAM has helped boost retailer confidence and,<br />

subsequently, success. “Some of our CAD/CAM customers have<br />

produced award-winning work at the national and international<br />

level,” he notes. “The great thing with CAD is the more someone uses<br />

it, the better they get at it. As they become more confident, their<br />

designs become more interesting and elaborate. We see customers<br />

improve their design work and develop a distinct style as their<br />

confidence grows.”<br />

Tran is another supplier to attest to “truly extraordinary” client<br />

designs. “Men’s rings in particular are just jaw-dropping in their<br />

creativity and individualism,” he says. “Not because an artisan<br />

jeweller could not have made them previously, but because they<br />

now have a greater palette of design and production options<br />

available to them.”<br />

Nowlan says his clients are mostly small businesses who use CAD<br />

not just for custom makes but also for ‘bread and butter’ pieces.<br />

“The type of pieces that might take a few hours on the bench to<br />

make but only a fraction of that time in Matrix or CSI,” he explains.<br />

Sher gives a practical<br />

example: “An<br />

elaborate design<br />

that may take eight<br />

hours by hand could<br />

potentially be drawn<br />

in half the time using<br />

CAD, and you also<br />

have no excess metal.<br />

Finally, the design<br />

and model may be duplicated<br />

whenever required.”<br />

EVOTECH PACIFIC


LST GROUP<br />

MATCHED PAIRS<br />

Retailers<br />

How has CAD/CAM improved business?<br />

“CAD/CAM has allowed the business to thrive and<br />

survive in these changing times. Making earrings with<br />

CAD is fantastic, as one earring is mostly a reverse of the<br />

other. Hand making them is so time [and cost] consuming.<br />

Sales turnover is quicker and faster than if we were<br />

outsourcing overseas, because of price alone.”<br />

- John Stapleton, Stapleton <strong>Jeweller</strong>s<br />

“CAD is the single biggest thing that has enabled us<br />

to grow our business. Along with 3D printing and 3D<br />

scanning– which is all done in-house– we are able to offer<br />

the client a full design suite. With the help of CAD and other<br />

technology we remove the doubt in a client’s mind prior to<br />

manufacture, by offering the desired design in real life.”<br />

- Trevor Sim, Clayfield <strong>Jeweller</strong>y<br />

E pink@samsgroup.com.au<br />

W samsgroup.com.au<br />

P 02 9290 2199<br />

TIPS FOR SUCCESS<br />

Can automation ever completely replace the<br />

human touch? Farago says that realistically,<br />

the power of machines still have certain<br />

restrictions.<br />

“People think it’s as easy as turning on a<br />

printer and pressing print but there’s a lot<br />

of trial and error to get CAD/CAM to work<br />

effectively. If bureaus or jewellers aren’t<br />

willing to put the time in, the results will<br />

show in the end product,” he warns.<br />

On the flip side, being too good at CAD can<br />

create problems too.<br />

“It’s quite easy to draw something that would<br />

be impossible to cast,” George explains,<br />

adding that he has seen designs come to<br />

Morris & Watson with features far too delicate,<br />

that would snap off a physical mould.<br />

According to Tran, the solution is to work<br />

closely with the experts: “How a piece is<br />

drawn will directly influence how successfully<br />

it will cast. The key is to work alongside your<br />

casting provider as they are best placed to<br />

advise on technical aspects of the design and<br />

draw process – some designs may be better<br />

suited to printing in wax than resin.”<br />

Nowlan cautions jewellers to avoid cutting<br />

corners when investing in CAD/CAM, putting<br />

it succinctly: “just like diamonds, you get<br />

what you pay for.”<br />

“You can design jewellery in any CAD<br />

software but going the cheapest route is not<br />

always the wisest financial decision; software<br />

such as Matrix or CSI have been designed<br />

with the jeweller in mind,” he explains.<br />

However, Sher assures that any jeweller<br />

can eventually graduate to independent<br />

CAD/CAM work if they want to: “Once the<br />

customer is comfortable with the design<br />

process and is doing more volume, we<br />

would recommend they consider<br />

purchasing the CAD software<br />

themselves.<br />

We would happily provide guidance on<br />

the best software for the customer based<br />

on their budget and needs.”


CAD/CAM<br />

CAD/CAM<br />

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

and Wax Printing<br />

CHEMGOLD<br />

TO INFINITY AND BEYOND<br />

The future is bright for CAD/CAM – and for jewellers who stay on<br />

board with this innovative technology.<br />

As Hill points out, other industries are already demonstrating what’s<br />

ahead, and it’s good news. “CAD technology in other markets has<br />

witnessed huge changes over the past few years,” he says. “The change<br />

is not in the products themselves but in how they are delivered, which<br />

has made them far more accessible. The major players developing<br />

CAD solutions for jewellers will inevitably be going down this path.”<br />

Evotech Pacific offers CAD/CAM training for jewellers. In addition, the<br />

company is about to launch an online marketplace that will provide a<br />

range of services, including interacting with bidders for manufacturing<br />

jobs. “<strong>Jeweller</strong>s who perhaps don’t have their own CAD software or<br />

are more comfortable using a service bureau can sign up and upload<br />

sketches along with descriptions,” Nowlan says of the website. “This<br />

information is shared with every designer in the marketplace, who will<br />

be able to provide a quote for the job.”<br />

Chemgold’s library of classic styles, JewelMount, also provides a simple<br />

starting point for newcomers. “All they need to do is advise what<br />

aspect of the design they wish to modify, such as changes to the stone<br />

and shank dimensions, mixing shanks and settings, or adding extra<br />

stones,” Sher says.<br />

CAD/CAM possibilities remain endless. As Farago enthuses, “There are<br />

no real limits to what might be achieved with CAD/CAM in the future.<br />

In the short term, we will probably see higher resolution and lowercost<br />

wax printers – the main benefit being that all resin-related casting<br />

issues would be eliminated without losing resolution.”<br />

Though conditions may be tough for jewellers, exciting times are<br />

ahead for those that embrace change. i<br />

RAPID CASTING<br />

New Technology<br />

Highly Efficient Printing<br />

Fast Turnaround Times<br />

BEST PRICES<br />

For over 35 years, Morris & Watson has combined<br />

impeccable craftsmanship with advanced<br />

technology to produce high quality results for<br />

clients throughout the world.<br />

With this technology and fast turnaround times,<br />

you can take on more clients and let us do the<br />

work. With over a decade of experience with this<br />

new technology you can be assured that you are<br />

in good hands.<br />

CALL US TODAY<br />

Australia – 1800 469 088<br />

New Zealand – 0800 500 654<br />

www.morrisandwatson.com


HONG KONG JEWELLERY SHOW<br />

Hong Kong jewellery show<br />

steps up<br />

A MUST-SEE INDUSTRY EVENT, THIS YEAR’S HONG KONG INTERNATIONAL<br />

JEWELLERY SHOW BROUGHT ITS A-GAME. ANGELA HAN REPORTS.<br />

t’s easy to see why the Hong Kong International <strong>Jeweller</strong>y Show (HKIJS) is<br />

promoted as Asia’s largest spring fair. This year, event organiser Hong Kong<br />

Trade Development Council (HKTDC) confirmed that 4,555 exhibitors from<br />

52 countries attended the 35th HKIJS and the fifth International Diamond,<br />

Gem and Pearl Show (IDGPS). Both shows reported record-breaking<br />

attendance with 87,000 registered buyers from 145 countries present, a 2 per cent<br />

increase from 2017.<br />

Also registered and visiting across both shows were 1,100 Australian trade buyers<br />

and 18 exhibiting Australian companies. Interestingly, since the IDGPS split<br />

from the fair in 2014, the HKTDC has seen a 68.4 per cent increase in Australian<br />

exhibitors and visitors. HKTDC chairman Lawrence Ma provided an explanation.<br />

“The total exhibition area expanded to over 123,000 square metres, allowing<br />

more local and overseas exhibitors to showcase their offerings,” Ma said. “The<br />

arrangement also enhanced sourcing efficiency for buyers as they could look<br />

for jewellery raw materials and finished jewellery in their respective venues under<br />

one roof.”<br />

According to Benjamin Chau, deputy executive director of the HKTDC, the<br />

overall increases in exhibitor and buyer numbers proved that Hong Kong is an<br />

“important sourcing program for the global jewellery industry”.<br />

“With improving global economic conditions, Hong Kong’s exports of precious<br />

jewellery rose 3.6 per cent last year,” Chau said. “We are delighted that exhibitor<br />

attendance at both shows was the highest in years, and that attendance of<br />

both local and overseas buyers set new records.”<br />

Phil Edwards, managing director of Duraflex Group Australia, was one local<br />

supplier in attendance who was pleasantly surprised by the optimism in the<br />

industry. “I arrived with low expectations due to the challenging local retail<br />

market conditions,” Edwards said. “My immediate impression of the fair was<br />

surprisingly positive and much more upbeat, with higher attendance and foot<br />

traffic than I expected.<br />

“Whilst I have been told by many international distributors from other countries<br />

that retail sales are down, I feel the underlying sentiment from others at the fair<br />

30 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


was one of optimism and improvement in<br />

the coming year ahead,” he added.<br />

However, Edwards also noted that this year’s<br />

fair was somewhat lacking in providing new<br />

names “with substance”. “As a local brand<br />

distributor, it is a hot topic that there are no<br />

specific new brands to launch and share<br />

with the local market,” he stated.<br />

ZONING IN ON TECH<br />

New to the fair this year was a designated<br />

IT Solutions zone, an area that provided<br />

innovative software for the jewellery<br />

industry. After all, it is widely acknowledged<br />

that mobile, internet and e-commerce<br />

developments in the jewellery industry will<br />

only increase.<br />

According to Chau, the area also offered<br />

inventory management, design, production<br />

and e-commerce solutions. “The IT<br />

Solutions zone aimed to help industry<br />

players leverage new technologies and<br />

applications, and to develop innovative<br />

designs and services to enhance<br />

competitiveness,” he said.<br />

Ma confirmed the sentiment: “The adoption<br />

of technology such as big data analysis<br />

and virtual fitting has become a new trend,<br />

which is aimed to boost sales and draw<br />

more potential buyers.”<br />

The new fair addition was a move that<br />

paid off, as PicUp Media founder William<br />

Chu attested. Chu is an Australian exhibitor<br />

who launched GemLightbox, a lightbox<br />

for jewellery, specifically tailored around<br />

smartphone photography.<br />

“This new addition shows that the fair<br />

organiser has thought about ways to<br />

improve and increase other offerings, which<br />

will be of interest to buyers,” Chu said. “We<br />

were able to generate a lot of interest and<br />

sold out of all GemLightbox floor stock by<br />

day two. We are extremely happy with the<br />

results and will be exhibiting with them<br />

again next year.”<br />

Dominic Hill, founder of cloud platform<br />

Atelier Technology, agreed. He noted the<br />

new section was far from perfect but “an<br />

important first step”, adding, “for years<br />

we have been waiting to have our own<br />

dedicated space as a community, rather<br />

than sitting in the tooling section.”<br />

Chu acknowledged those comments,<br />

noting the busy nature of the area:<br />

“Buyers are very interested in looking for<br />

IT and other technological solutions for<br />

their businesses.”<br />

HKTDC also ran a dedicated technology<br />

and disruption seminar, covering<br />

topics such as blockchain, big data and<br />

connecting the jewellery supply chain<br />

through cloud technology.<br />

GOT ETHICS?<br />

HKTDC has held events to promote ethical<br />

trading since 2014. Various seminars have<br />

targeted ethical practices in the jewellery<br />

industry, covering topics such as sustainable<br />

tanzanite and gemstone mining,<br />

responsible marine-environment practices<br />

in coral harvesting and the benefits of<br />

responsible sourcing.<br />

This year the fair held a panel discussion in<br />

conjunction with the Responsible <strong>Jeweller</strong>y<br />

Council (RJC). It highlighted the growing<br />

importance for companies to have ethical<br />

transparency across all trading practices,<br />

from supply to staff.<br />

Jonathan Kendall, senior vice president of<br />

De Beers’ diamond brand Forevermark, was<br />

one of the panel’s speakers. Kendall said<br />

that “radical transparency” in the industry<br />

was inevitable.<br />

“Going forward, I don’t think there’s an<br />

option,” Kendall said. “Consumers are<br />

demanding transparency and the internet<br />

provides the perfect tool for personal<br />

investigative activity. Expectations of<br />

transparency are a key aspect of today’s<br />

consumer behaviour.”<br />

Edward Johnson, director of business<br />

development at the RJCl agreed.<br />

“Consumers and suppliers are increasingly<br />

aware of sustainability and ethics in relation<br />

to jewellery, as with many other consumer<br />

goods,” Johnson told <strong>Jeweller</strong> . “By not<br />

addressing these concerns, small businesses<br />

risk holding themselves back, making<br />

it harder to compete in a world that is<br />

increasingly demanding transparency<br />

and accountability.”<br />

Ethical transparency is not only important<br />

to Millennial consumers; it’s also crucial for<br />

the digitally-native Gen Zs. Also known as<br />

the iGen or post-Millennials, researchers<br />

SAMS GROUP<br />

AUSTRALIA<br />

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SINGLE STONES<br />

MATCHED PAIRS<br />

CALIBRATED MELEE LINES<br />

E pink@samsgroup.com.au<br />

W samsgroup.com.au<br />

P 02 9290 2199


Create Something<br />

Out of the Ordinary from<br />

Extraordinary Findings<br />

LAWRENCE MA, CHAIRMAN OF HKTDC<br />

JONATHAN KENDALL, VICE PRESIDENT FOREVER<br />

MARK ON PANEL DISCUSSION<br />

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Now<br />

* High Quality *<br />

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Enquire Now<br />

1800 811 116<br />

sales@peekays.com.au<br />

www.peekays.com.au<br />

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generally place their birthing years between<br />

the mid-1990s and mid-2000s. With trends<br />

coming and going, it’s easy to perceive<br />

the demand for ethical transparency as a<br />

Gen-Z fad, but Johnson believes this is not<br />

the case.<br />

“Transparency is inherently linked to<br />

communication and Gen Z are the mostconnected<br />

generation in history,” he said.<br />

“New ways to source and share information<br />

are emerging by the day, and it would<br />

be remiss of the industry to dismiss the<br />

role of Gen Z in driving the demand for<br />

transparency as a ‘fad’. Gen Z are demanding<br />

more from businesses, namely that they<br />

take a clear stand on wider social issues and<br />

are ethically responsible in their operations.”<br />

As well as ethical transparency, unique<br />

designs and multi-channel marketing will<br />

be the other two major changes shaping<br />

the industry.<br />

Kendall advised small businesses to start<br />

adapting to the process slowly.<br />

“Understanding your suppliers is the key,” he<br />

said. “Make sure they meet your own ethical<br />

standards and challenge them on the<br />

key fundamentals: where do they source<br />

materials, are they environmentally friendly<br />

operations, do they measure their carbon<br />

footprint, when will they expect to be<br />

carbon neutral, what are their employment<br />

policies, is equality part of their business<br />

practices, and so on.”<br />

MINED OVER MATTER<br />

Synthetic diamonds were also a hot topic<br />

at the fair. Once considered high-cost<br />

and impractical, technological changes<br />

over the last decade have seen a steady<br />

increase in demand for this natural diamond<br />

alternative.<br />

“A few years down the road, natural<br />

diamonds and lab-grown diamonds will<br />

coexist at different price levels,” Ma said.<br />

“Lab-grown diamonds will be another<br />

product available for the consumers to<br />

choose from.”<br />

Edwards agreed with these sentiments;<br />

however, he noted that the demand would<br />

continue to be a “steep learning curve for<br />

trade and consumers”.<br />

“This is a new frontier that I feel will have<br />

a huge impact on the market – exactly<br />

how much will depend on how they are<br />

launched, presented, branded and sold to<br />

the consumer,” he added.<br />

When asked if there was room in the market<br />

for both synthetic and natural diamonds,<br />

Kendall gave a resounding “yes”, and that he<br />

sees lab-grown diamonds as “the new cubic<br />

zirconia” – they will have a place in custom<br />

jewellery, but at a much lower price point.<br />

“The demand for the real thing will be very<br />

strong, and the key will be to maintain<br />

the emotional differentiation between<br />

diamonds and synthetics,” he concluded.<br />

With so many industry developments<br />

already underway, it’s easy to see why Asia’s<br />

biggest spring fair is so valuable to the<br />

Australian jewellery industry.<br />

The next show will be in March 2019. i<br />

For the extended report with fair images,<br />

please visit jewellermagazine.com<br />

Angela Han attended the fair courtesy of<br />

HKTDC.


GEMS<br />

COLOUR INVESTIGATION: SAPPHIRE<br />

as padparadscha– a Sinhalese word that<br />

translates to ‘lotus flower’. Other sapphire<br />

colours include purple-violet, grey, brown<br />

and black. A sapphire’s colour is often patchy<br />

and uneven, with straight and angular colour<br />

banding typically seen in natural stones.<br />

Commonly originating from Australia,<br />

parti-coloured stones show a mix of two or<br />

three colours: often blue, green and yellow,<br />

which can be cut to create a playful flash of<br />

colour through the crown facets. Due to their<br />

relatively higher availability and affordability,<br />

they offer a unique and colourful alternative<br />

to blue sapphire.<br />

ORANGE SAPPHIRE<br />

Throughout history, sapphire has always<br />

been associated with the colour blue.<br />

This still rings true today, with many<br />

consumers unaware of the other coloured<br />

varieties available. STACEY LIM reports.<br />

Since ancient times, sapphire has adorned<br />

kings, queens and clergy members. A<br />

symbol of nobility and truth, it was worn as<br />

a talisman to protect from envy and harm.<br />

Sapphire comes in many hues, including rare<br />

colour-change varieties. Whilst fine velvety<br />

Ceylonese blue is unrivalled and attracts a<br />

high demand for stones over 1 carat, particoloured<br />

(when different colours are found<br />

in different parts of a structure) and other<br />

fancy-coloured sapphires are increasing in<br />

BLUE SAPPHIRE<br />

mineral – meaning that it owes its colour<br />

to trace impurities. Colourless sapphire, the<br />

most chemically pure form of corundum, is<br />

rare. Other varieties are coloured by different<br />

trace elements in the crystal structure. Atoms<br />

of these impurities resonate in light and<br />

absorb specific parts of the spectrum. The<br />

remaining light reflected to the eye gives<br />

colour to the gemstone.<br />

Rich blue Ceylonese stones are the most wellknown<br />

and valuable variety of sapphire. They<br />

are the standard against which other blue<br />

gems are measured. However, paler versions<br />

of this hue are still in high demand. Blue is<br />

caused by traces of titanium and iron; the<br />

more iron present, the darker the stone.<br />

PARTI-COLOURED<br />

AND OTHER<br />

FANCY-COLOURED<br />

SAPPHIRES ARE<br />

INCREASING IN<br />

POPULARITY AS<br />

AN ALTERNATIVE<br />

TO DIAMONDS<br />

FOR ENGAGEMENT<br />

RINGS<br />

Rare colour change sapphires exist, with the<br />

varying colours dependent on the colouring<br />

agents. The more commonly seen stones<br />

are from Sri Lanka, and shift from purple<br />

under incandescent light to bluish violet in<br />

daylight. Natural daylight or fluorescent light<br />

contains higher proportions of blue and<br />

green wavelengths, causing the gemstone<br />

to appear more cool-hued. Incandescent<br />

lighting that contains a higher proportion<br />

of red wavelengths will cause the gemstone<br />

to appear a warmer hue. The intensity of<br />

body colour, and the impressiveness of the<br />

colour-changing properties greatly influence<br />

a stone’s value.<br />

Sapphires are often heat-treated to remove<br />

silk inclusions, thus enhancing clarity and<br />

richness of colour. Although this treatment<br />

does affect the price, it is not adding anything<br />

artificial to the stone, so it is an accepted<br />

treatment among gemmologists. A stone’s<br />

value rests upon the evenness and intensity of<br />

colour, the quality of cut, clarity and carat size.<br />

The spectral delights of sapphires continue to<br />

capture our hearts. i<br />

popularity as an alternative to diamonds for<br />

engagement rings.<br />

The corundum group includes some of the<br />

most desired coloured gemstones used for<br />

fine jewellery. Corundum is an allochromatic<br />

Green and some yellow sapphires also owe<br />

their colour to iron. Chromium influences the<br />

red of ruby, and the pinks of pink sapphire.<br />

When chromium is paired with iron, it can<br />

produce a special orangey pink colour known<br />

STACEY LIM FGAA BA Design, is a qualified<br />

gemmologist and gemmology teacher/assistant.<br />

She is a jewellery designer, marketing manager<br />

and passionate communicator on gemmology.<br />

For information on gemstones, visit: gem.org.au<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 33


Behind every gemstone,<br />

there is a fascinating story<br />

waiting to delight clients<br />

around the world. Studying<br />

with GAA brings the<br />

expertise, networking and<br />

confidence to build a solid<br />

career in a multimilliondollar<br />

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one of the most supportive<br />

and passionate professional<br />

communities of gemmologists<br />

in Australia was one of the<br />

best decision I ever made.<br />

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Gemmologist and Diamond Technologist<br />

Sales Associate, Paspaley - VIC<br />

Diamond<br />

Courses<br />

Practical Diamond Grading &<br />

Diploma in Diamond Technology<br />

Enrolments now open<br />

For more information<br />

1300 436 338<br />

learn@gem.org.au<br />

www.gem.org.au<br />

Be<br />

Confident<br />

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Passionately educating the industry, gem enthusiasts<br />

and consumers about gemstones


BUSINESS<br />

RETAILER METRICS IN AN ONLINE WORLD<br />

Customers are evolving and retail<br />

metrics must evolve with them if<br />

retailers are to leverage the information<br />

they need in an omni-channel<br />

marketplace. CHRIS PETERSEN reports.<br />

At the most basic level, retail is the simple<br />

business of selling products to consumers<br />

who need them.<br />

Historically, retailing was based on<br />

shoppers visiting stores to buy product,<br />

and even when retailers opened online<br />

stores, the core metrics didn’t change –<br />

they remained focused on sales, revenue,<br />

margin, growth, and market share.<br />

In today’s omni-channel marketplace, the<br />

customers are now the new Point of Sale<br />

(POS). Customers determine where they<br />

purchase, how they pay and where they<br />

collect their goods.<br />

Traditional POS systems are no longer<br />

enough when trends shift to ‘click and<br />

collect’ arrangements.<br />

Retailer systems and metrics were not<br />

designed to track ‘flow’ to the consumer,<br />

which means today’s retailers are facing<br />

new business questions that will require<br />

new data, metrics and benchmarking.<br />

This is important because one cannot<br />

manage what one doesn’t measure.<br />

Retailers have always measured sales at<br />

their location, yet how the purchases of<br />

today’s customers occur is just as important<br />

as any final sales receipt.<br />

CORE METRICS STILL TRADITIONAL<br />

Bricks and mortar stores have evolved from<br />

being just places that sell things.<br />

Historically, stores had a ‘till’ and most still<br />

have cash registers where the purpose is to<br />

collect payment, give change and record<br />

the transactions and data required to run<br />

their business.<br />

Today’s stores have much more<br />

sophisticated POS systems that enable<br />

electronic payment. These POS systems<br />

track data all the way down to the SKU level<br />

to enable inventory replenishment and a<br />

detailed analysis of what is sold.<br />

Through e-commerce and the concept of<br />

TRADITIONAL POS<br />

SYSTEMS ARE NO<br />

LONGER ENOUGH<br />

WHEN TRENDS<br />

SHIFT TO ‘CLICK<br />

AND COLLECT’<br />

ARRANGEMENTS<br />

the virtual store, retail has evolved further.<br />

While the online shopping experience is<br />

digital, it is interesting that websites still use<br />

the term ‘shopping cart’.<br />

Online, the term ‘checkout’ also still reflects<br />

the experience of waiting in a queue to pay<br />

at the cash register in a physical store.<br />

In many ways, the POS system for online is<br />

not all that different from bricks-and-mortar<br />

stores; however, the new dimension is<br />

variety in shipment methods.<br />

FINANCE REPORTS SHOUD BE BROAD<br />

POS systems have been integrated into<br />

larger enterprise systems for managing<br />

retail operations, inventory and financials.<br />

Yet, it is interesting to note how much of<br />

a retailer’s core metrics are still focused on<br />

stores selling products.<br />

Whether it be physical stores or online,<br />

financial reports are heavily focused on<br />

sales, revenue, returns and net profit.<br />

To benchmark performance, retailers use<br />

their metrics to analyse trends and growth:<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 35


BUSINESS<br />

year-on-year (YOY) growth, same-store<br />

sales and comparisons to same-week sales<br />

as in the previous year.<br />

If retailers only track their own<br />

performance, however, they can be<br />

blindsided by the market and competition.<br />

So larger retailers subscribe to third-party<br />

sources that track total volumes of goods<br />

and market consumption.<br />

They also use this data to analyse<br />

distributor data to map shipments through<br />

various channels.<br />

The end result is that retailers can<br />

quickly benchmark their growth against<br />

competitive indices, and track their market<br />

share at the national and local levels.<br />

This is all good and still very important but<br />

what are they missing?<br />

THE CONSUMER IS THE NEW POS<br />

By definition, omni-channel customers<br />

shop in more than one place across time.<br />

Not only do they determine where and<br />

how they shop but also where and how<br />

they will pay for the goods.<br />

Even more importantly, today’s consumers<br />

are expecting – and receiving – many<br />

choice of purchase and delivery options:<br />

• Buy online, ship to home<br />

• Buy online, collect in store<br />

• Buy online, collect at locker or another<br />

location<br />

• Buy in store, take home<br />

• Buy in store, delivery at home<br />

• Buy in store, delivery at commuter<br />

station or other location<br />

Over a very short period of time, this has<br />

caused confusion or complicated how a<br />

sale should be recorded.<br />

For example, if a customer buys online and<br />

collects in store, is that an online sale or a<br />

physical store sale?<br />

and the third-party sources only report<br />

online versus store sales – none of the<br />

purchase dynamics or point of receipt are<br />

measured. Much valuable data is lost.<br />

OMNI-CHANNEL METRICS ESSENTIAL<br />

POS systems are necessary but not<br />

sufficient for providing omni-channel<br />

retailing success.<br />

Without being able to effectively measure<br />

consumer purchase and delivery flow,<br />

retailers can’t see the critical paths or<br />

measure return on investment (ROI) on<br />

omni-channel investments.<br />

For example, if a retailer sees double-digit<br />

YOY sales growth for online, they need to<br />

know if that’s good and why.<br />

A retailer needs to know if the online<br />

sales growth is due to the investments to<br />

improve the online experience, or is it part<br />

of the new click and collect capabilities<br />

available at stores?<br />

Does it matter where a sale happens? One<br />

could argue that a sale is a sale.<br />

However, the costs associated with a given<br />

sale can be quite different. Compare a<br />

transaction completed entirely on the<br />

web with an online purchase that uses<br />

collect in store.<br />

The latter has different costs for stock, staff<br />

and store operations.<br />

Beyond the costs of different flows,<br />

research has consistently shown major<br />

positive gains for businesses using omnichannel<br />

sales activity.<br />

Omni-channel customers shop more often,<br />

buy more and can be as much as 47 per<br />

cent more profitable than consumers who<br />

just shop one channel.<br />

While the complexity can be more<br />

operationally expensive, the multiple paths<br />

creating consumer choice can be much<br />

more profitable and create more loyalty,<br />

which leads to repeat purchases.<br />

A RETAILER<br />

NEEDS TO KNOW<br />

IF THE ONLINE<br />

SALES GROWTH<br />

IS DUE TO THE<br />

INVESTMENTS<br />

TO IMPROVE<br />

THE ONLINE<br />

EXPERIENCE, OR<br />

IS IT PART OF<br />

THE NEW CLICK<br />

AND COLLECT<br />

CAPABILITIES<br />

AVAILABLE AT<br />

STORES?<br />

into the paths and factors that culminated<br />

in any particular sale or return.<br />

In order to know where to invest and how<br />

to best leverage omni-channel factors to<br />

optimise growth, retailers need to know and<br />

measure much more.<br />

Today, every retailer is competing in a<br />

digital world whether they acknowledge<br />

it or not. Consumers are driving their own<br />

experiences and purchases, which means<br />

retailers should be able to answer the<br />

following business questions:<br />

• How many consumers search your<br />

business on their mobile device?<br />

• How many mobile searches result in<br />

sales for your stores/online?<br />

• How many customers search your online<br />

website from within your store?<br />

• How many customers purchase online<br />

and collect in store or at a locker?<br />

• How many customers purchase at a<br />

store but chose to have it delivered?<br />

• How many customers purchase with free<br />

or same-day delivery?<br />

• Are omni-channel customers more or<br />

less profitable and by how much?<br />

STORE EVOLUTION<br />

The store has evolved to become more than<br />

a shopping destination. It’s also an avenue<br />

of customer experience, and a point of<br />

goods distribution.<br />

To strategically leverage the omni-channel<br />

consumer experience and increase sales,<br />

retailers need to know much more than the<br />

percentage of sales they make online and in<br />

their bricks-and-mortar stores.<br />

We now live in an age where the customer<br />

is the store.<br />

Retailers now need the data and metrics<br />

to track the paths and core metrics for<br />

maximum success. i<br />

If a customer searches online, finds a<br />

product in-store, views the product in the<br />

store then buys on a mobile phone and<br />

ships a home delivery, how should that sale<br />

be recorded, and in how much detail?<br />

In most cases the retailer’s own systems<br />

CRITICAL QUESTIONS FOR RETAILERS<br />

Tracking retail sales will always be<br />

important, because sales are the final<br />

outcome in every business.<br />

However, the number of individual<br />

purchases does not provide insights<br />

CHRIS PETERSEN is founder<br />

and CEO of retail consultancy<br />

Integrated Marketing<br />

Solutions (IMS). Learn more:<br />

www.imsresultscount.com<br />

36 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


SELLING<br />

FIVE WAYS TO SUCCEED IN SALES<br />

THE SALES INDUSTRY IS FILLED WITH PEOPLE WHO NEVER REACH THEIR TRUE POTENTIAL, BECAUSE THEY FAIL TO LOOK FOR<br />

NEW HORIZONS. DOUG DVORAK DISCUSSES HOW SALES PROFESSIONALS CAN TAKE THEIR GAME TO THE NEXT LEVEL.<br />

Successful sales professionals sometimes<br />

lose sight of the fact that there is always<br />

room for improvement. Those sales<br />

professionals who take the extra step and<br />

push themselves to the limit are known<br />

as the top one per cent – they have found<br />

smart ways to succeed in sales by creatively<br />

thinking outside of the box and working<br />

hard for results.<br />

ESTABLISH YOUR BRAND<br />

Separate yourself from competitors by<br />

learning how to brand your jewellery store<br />

effectively and often. Incorporate your brand<br />

into every facet of your business so that<br />

customers learn to recognise you. Learn your<br />

strengths and emphasise them.<br />

Establish a good reputation with your<br />

customers by developing valuable content.<br />

Top performers in the sales industry aren’t<br />

just the ones bringing in the most revenue<br />

for their businesses; they are the ones<br />

setting the standards for everybody else.<br />

These top sales professionals are always<br />

hungry for more opportunities to succeed.<br />

KNOW THE RULES BEFORE YOU BREAK THEM<br />

Valuable content is not an advertisement;<br />

valuable content helps to solve a problem,<br />

answer a question or address a burning issue<br />

for the reader.<br />

BUILD A GREAT TEAM<br />

To reach the top of the ladder, sales<br />

professionals must embrace the idea of<br />

becoming trendsetters. Success is a lifestyle,<br />

not a destination.<br />

If you follow the footsteps of others, you can<br />

reach a certain level of success; however,<br />

in this competitive business world it takes<br />

more than that to reach the highest level.<br />

Following the safe path will not always take<br />

you to the top of the game.<br />

Trends in business are always changing, and<br />

the ones who are willing to innovate and<br />

adapt to the ever-changing landscape will<br />

separate themselves from the pack.<br />

To find out how your business can set<br />

trends instead of following them, here are<br />

some smart ways to succeed in today’s<br />

complex and competitive world.<br />

MAKE TIME FOR CREATIVITY<br />

It’s hard to be creative when you don’t make<br />

enough time for yourself to let the good<br />

ideas flow freely.<br />

Be patient with the process and learn to<br />

play around with new ways of doing things.<br />

Don’t judge yourself too hard when you are<br />

brainstorming; trendsetters in business are<br />

willing to think outside of the box and are<br />

patient enough to let new ideas grow.<br />

LEARN HOW TO<br />

BRAND YOUR<br />

JEWELLERY STORE<br />

EFFECTIVELY-<br />

INCORPORATE YOUR<br />

BRAND INTO EVERY<br />

FACET OF YOUR<br />

BUSINESS SO THAT<br />

CUSTOMERS LEARN<br />

TO RECOGNISE YOU<br />

The right work ethic, and the willingness<br />

to explore new ways to tackle a problem<br />

will set you apart from the rest.<br />

STUDY THE CURRENT TRENDS<br />

You need to know the rules in order to break<br />

them. Learn what trends dominate the<br />

market and think of new ideas to change the<br />

way things are done. Read about the latest<br />

jewellery industry news, styles and trends;<br />

learn as much as possible from the success<br />

and failures of competitors; attend webinars<br />

and conventions.<br />

Trendsetters are always two steps ahead of<br />

the competition because they stay informed<br />

and can anticipate moves in the game.<br />

LEARN HOW CUSTOMERS THINK<br />

Listen to your customer base and understand<br />

what works and what doesn’t.<br />

Knowing this will help you generate new<br />

ideas. Figure out what they need and<br />

capitalise on it effectively.<br />

Understand what customers are saying, and<br />

have an honest dialogue with what they<br />

have to say about your store.<br />

Learning from customers will help you to<br />

innovate and think clearly about what really<br />

needs to be done to improve your business.<br />

Strive to build a strong foundation by<br />

hiring innovative people who will go to bat<br />

whenever needed.<br />

Treat your team with respect and motivate<br />

them to keep up with new ideas. Inspire<br />

your team by holding brainstorming sessions<br />

where they can bounce ideas off each<br />

other and fully benefit from open lines of<br />

communication with each other.<br />

You’re only as strong as your weakest link, so<br />

it’s important that everyone is on the same<br />

page and running like clockwork.<br />

Succeeding in sales today requires that you<br />

think outside the box, work like hell and call<br />

on a large pool of ideas for inspiration.<br />

Salespeople need to be creative, suit up and<br />

show up on time every day.<br />

The top one per cent of professionals forge<br />

their own path by exploring new ways<br />

to innovate and expand. Learn to stay<br />

motivated and hungry by executing goals in<br />

a timely and professional manner. i<br />

DOUG DVORAK is CEO of<br />

DMG International, delivering<br />

motivational management<br />

workshops. Learn more:<br />

dougdvorak.com<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 37


MANAGEMENT<br />

HOW TO LOSE CUSTOMERS WITHOUT TRYING<br />

PERHAPS YOU WORKED HARD FOR YEARS TO BUILD A LOYAL CUSTOMER BASE, AND NOW YOUR CUSTOMERS<br />

ARE LEAVING YOUR STORE IN DROVES. STEVE DIGIOIA DISCUSSES WHAT COULD HAVE WENT WRONG.<br />

Sales are down and the bills are piling up.<br />

Employee morale is low and coming to<br />

work is no longer fun. When business was<br />

good, you thought it would last forever.<br />

You stopped doing the things that brought<br />

you success and eventually took your loyal<br />

customers for granted.<br />

You became the ‘bad boss’! If you find<br />

yourself in this situation, what happened?<br />

How did you get here?<br />

These are the seven most common reasons<br />

customers take their business elsewhere. I<br />

bet if you asked your customers why they<br />

stopped shopping with you, these are some<br />

of the reasons they would give.<br />

DON’T PATRONISE ME<br />

I don’t care about the industry jargon or the<br />

technical terms salespeople use to describe<br />

why a product stopped working. Speak to<br />

me like I’m a person.<br />

Explain the problem in terms I can<br />

understand. Only then will I agree to pay for<br />

the repair or replacement. If not, I don’t need<br />

your product or company; I’ll very quickly go<br />

somewhere else.<br />

DON’T MAKE ME FEEL UNIMPORTANT<br />

I need to know you appreciate my business<br />

and value me as part of your success. I need<br />

to feel welcome when I enter your business,<br />

and to receive a warm and sincere smile.<br />

That’s not asking for too much and it’s the<br />

very least I expect.<br />

DON’T GIVE ME EXCUSES<br />

I understand problems arise that are out of<br />

your control – deliveries arrive late; product<br />

shortages happen; unseen damage and<br />

costs are unavoidable. Just be honest.<br />

Don’t make up a story. I need to trust you.<br />

DON’T LEAVE ME WAITING<br />

The last time I was in your store, your staff<br />

answered the phone and entered into a<br />

lengthy conversation just as I approached<br />

IF YOU DON’T<br />

REALISE THAT<br />

CUSTOMER SERVICE<br />

IS WHY I COME TO<br />

YOUR STORE, THEN<br />

YOUR BUSINESS<br />

WILL NEVER<br />

SUCCEED - IT’S<br />

THE EMPLOYEES<br />

WHO MAKE THE<br />

BUSINESS<br />

ARE CUSTOMERS GIVING YOU 1-STAR RATINGS?<br />

the counter. Have some consideration; I’m<br />

not invisible and my time is also valuable.<br />

Remember that I’m the customer and I am<br />

in your store with cash in my pocket. You<br />

can always call the other party back. Tend to<br />

me promptly and with courtesy or I’ll easily<br />

go somewhere else.<br />

DON’T SUBSTITUTE INFERIOR PRODUCTS<br />

I’ve shopped with you for years and have<br />

always been happy but now, just to save<br />

costs, you’ve started to provide cheaper<br />

quality products.<br />

I can tell the difference and I’m not happy<br />

with it. Please go back to using the highest<br />

quality items, as you’ve always done. That’s<br />

why I come here.<br />

DON’T HIRE APATHETIC STAFF<br />

If you don’t realise that customer service is<br />

why I come to your store, then your business<br />

will never succeed.<br />

It’s the employees who make the business,<br />

not the fancy furnishings, the artwork on the<br />

walls or any of that.<br />

Your employees don’t seem to care about<br />

me; they spend too much time talking to<br />

each other and their eyes are always focused<br />

on their mobile phones.<br />

I want to tell them, “I’m here. Sell me<br />

something,” but I don’t think it would make a<br />

difference. Why did you employ them?<br />

REINVEST IN THE BUSINESS<br />

I understand that businesses can’t spend<br />

much money when things are tight;<br />

however, they must fix what’s broken.<br />

Your floor is worn, your counters and<br />

showcases are chipped and your walls need<br />

a paint job. This doesn’t affect the products<br />

you sell, but it does affect the overall<br />

shopping experience.<br />

Add this to the other items above and you<br />

will very quickly see why I no longer want to<br />

come here to shop.<br />

As your long-time customer, I don’t ask<br />

for much. OK, maybe I do but that’s what<br />

business is all about – satisfying the needs of<br />

the customer.<br />

There are limits to my loyalty, just as there<br />

are limits to the services you can provide<br />

but it’s not too late to fix things. You can still<br />

recover from this.<br />

Many books have been written about how<br />

to lose a customer without really trying, or<br />

how much it costs to lose a customer but<br />

that’s not important now. We can fix this and<br />

we can do it without the help of a book.<br />

As customers, we are a forgiving bunch.<br />

We like you and want the best for you. We<br />

want to keep coming here but you need to<br />

change things for the better.<br />

Please remember a successful business is<br />

like a championship sports team; we are all<br />

in this together, but the team will break up if<br />

you don’t do your part. Then you’ll be out of<br />

business, but I can find another team. i<br />

STEVE DIGIOIA helps<br />

companies improve<br />

customer service. Learn more:<br />

stevedigioia.com/blog<br />

@stevedigioia<br />

38 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


MARKETING & PR<br />

REFRESH YOUR CUSTOMER SERVICE<br />

RETAILERS CAN OBTAIN USEFUL INFORMATION WHEN ASKING CUSTOMERS FOR SUGGESTIONS. RICH KIZER & GEORGANNE<br />

BENDER CALL IT THEIR BIG QUESTION: “WHAT ONE THING COULD WE DO TO IMPROVE OUR CUSTOMER CARE?”<br />

Customer care is often over looked these days, yet it’s the one area<br />

consistently at the top of everyone’s wish list. No shopper wants to<br />

be ignored, and no retailer wants to offer poor service – but both still<br />

happen far too often. Customers say that shopping is sometimes too<br />

much of a hassle. Stores are hard to shop and customers can’t find<br />

items they want to buy, or even a knowledgeable staff member when<br />

they need one. Retailers seeking to appraise the quality of service in<br />

their stores should consider the following ideas:<br />

HOST A FOCUS GROUP<br />

Invite 15 customers to participate in a focus group, but set the room<br />

for 10. It’s always better to bring in extra chairs than to have empty<br />

seats as it makes the meeting seem even more important.<br />

Hold the focus group in store and make sure there’s an impartial third<br />

party to run the group – it can be hard to remain objective when<br />

shoppers are giving negative feedback, but retailers who get defensive<br />

about criticism will only shut down discussion.<br />

Perhaps observe the session from behind closed doors, or video it<br />

and watch later. Serve refreshments and have a list of questions that<br />

the presenter can use to keep the conversation moving. Participants<br />

should receive a gift of at least $100 for participating, preferably in<br />

cash. You may also want to include a jar candle or other small gift.<br />

CREATE A CUSTOMER ADVISORY BOARD<br />

Similar to a corporate board of directors, retailers can meet with an<br />

advisory board once a quarter to discuss any strategies and changes<br />

that have been implemented, as well as any ideas for the future.<br />

Choose a diverse group of people spanning different generations.<br />

CONDUCT EXIT INTERVIEWS<br />

Station yourself near the front door and politely ask customers as they<br />

are leaving whether they found everything they were seeking. Exit<br />

interviews are great for identifying the products that customers wish<br />

you carried, and you’ll be able to save a few sales when customers find<br />

you do have what they need but didn’t find.<br />

CUSTOMER COMMENT CARDS<br />

Place ‘Tell us what you think!’ cards at the store’s POS counter and any<br />

other service counters. Include these cards in purchase packaging and<br />

make a feedback form available to browsers on the website. Cards are<br />

helpful for time-starved customers who have something to say but are<br />

too short on time to stop and talk.<br />

ASK THE TEAM<br />

Feedback from staff can be as valuable as feedback from customers,<br />

so ask the sales team to jot down anything they’re hearing from<br />

customers on the sales floor.<br />

EXIT INTERVIEWS<br />

ARE GREAT FOR<br />

IDENTIFYING THE<br />

PRODUCTS THAT<br />

CUSTOMERS WISH<br />

YOU CARRIED, AND<br />

YOU’LL BE ABLE TO<br />

SAVE A FEW SALES<br />

WHEN CUSTOMERS<br />

FIND YOU DO HAVE<br />

WHAT THEY NEED<br />

BUT DIDN’T FIND<br />

ASK CUSTOMERS FOR SUGGESTIONS ON HOW TO IMPROVE SERVICE<br />

Give each staff member a small notebook in which to record their<br />

comments and discuss these comments during store meetings.<br />

THE ONE THING<br />

Retailers can obtain useful information when asking customers for<br />

single suggestions. This is known as the big question and works as<br />

follows: “What one way could we improve our customer care?” or<br />

“What one service would make it more convenient to shop here?”<br />

or “What one in-store event would you like to attend?”<br />

Customers must put thought into their answers, which will ensure<br />

constructive suggestions. Don’t be surprised to find that shoppers<br />

might focus on the same topic. This is a good thing – if it’s positive<br />

feedback then it’s one more thing to brag about, and if it’s negative<br />

then you know exactly what to fix.<br />

The ideas above are designed to help you find out how your business<br />

scores on customer service, but they will also help you grow your<br />

business. After asking customers for their input, retailers must make<br />

sure they use the information they have gathered.<br />

When implementing customer suggestions, let them know. Post their<br />

responses on a “customer interaction” bulletin board inside the store<br />

and share what has been implemented on social media pages, the<br />

website and the store newsletter.<br />

Knowing your customers and what they want will keep merchandise<br />

fresh, promotions fun and sales ticking over. i<br />

RICH KIZER and GEORGANNE BENDER<br />

are retail strategists, authors and consultants.<br />

Learn more: kizerandbender.com<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 39


LOGGED ON<br />

CRUNCHING THE NUMBERS<br />

BUSINESSES THAT UNDERSTAND HOW TO INTERPRET SOCIAL MEDIA DATA CAN UNLOCK VALUABLE CUSTOMER INSIGHTS. IN PART<br />

TWO OF THIS SERIES ON INSTAGRAM MARKETING, MELISSA MEGGINSON SHOWS HOW TO USE DATA TO MAKE BETTER DECISIONS.<br />

Instagram is a great tool for building<br />

connections and engaging with potential<br />

customers, but that’s just the beginning of<br />

its power. Accessing built-in analytics and<br />

statistics can help any business understand<br />

what consumers want, and the best way to<br />

get their full attention.<br />

In order to start evaluating your Instagram<br />

numbers, it’s important to know your goals.<br />

Businesses use Instagram for many different<br />

purposes including increasing awareness,<br />

driving traffic to a website and selling<br />

products. The statistics you’ll want to see<br />

depend on your business goals.<br />

DON’T FORGET YOUR TOFU<br />

Brands mostly use Instagram to focus on<br />

brand awareness, which is known as a ‘top<br />

of funnel’ (TOFU) activity. The strategy is to<br />

increase the number of consumers who<br />

know about your brand, educate them about<br />

your products and create a general buzz and<br />

strong desire to purchase.<br />

Measurements that provide information<br />

about this goal of boosting brand awareness<br />

are follows, likes and comments. Social media<br />

analysts often refer to these measures as<br />

‘vanity metrics’, dismissing them as weak<br />

indicators of overall awareness; however, is it<br />

still vanity if it gets the job done? These socalled<br />

vanity metrics are extremely valuable<br />

for TOFU brand awareness because they<br />

achieve the desired goal, which is to have<br />

more users interact with and see content<br />

from the brand.<br />

Perhaps you are using Instagram as a tool<br />

lower down in your sales funnel. If driving<br />

traffic to your website, converting on sales<br />

or capturing emails are your goals, then your<br />

data gem is to find out how many people are<br />

accessing your website through Instagram.<br />

TRACKING TOFU<br />

To track that, add a UTM tracking code or use<br />

a bit.ly link in your profile, which will track the<br />

origin of anyone who clicks on the link. From<br />

there you can see if your Instagram traffic<br />

converts on your website-specific goals.<br />

SHARE LINKS FOR GREATER SUCCESS<br />

If you’re new to Instagram, you might have<br />

noticed that there aren’t too many ways<br />

for users to embed links into their posts.<br />

Discussion has raged for years about when<br />

Instagram will start allowing links on posts<br />

and, in truth, it seems unlikely that it will<br />

change anytime soon.<br />

This means that retailers need to be strategic<br />

about getting users to visit their websites.<br />

Right now, there are four different ways to<br />

include links on Instagram:<br />

• the profile link<br />

• tools to create clickable photo galleries<br />

• Story links for business accounts with more<br />

than 10,000 followers<br />

• Instagram ads<br />

BREAKING IT DOWN<br />

Let’s look at each of these in more detail.<br />

First up, the profile link: this is the only<br />

formal – and free – link on Instagram. If your<br />

business frequently shares blog posts or<br />

runs different promotions, it makes sense<br />

to change out the link so it directs users to<br />

your current promotions. This is great if your<br />

followers typically only engage with your<br />

most recent content.<br />

The second option is to use a tool like<br />

Soldsie to create clickable photo galleries.<br />

Soldsie converts your profile link into a digital<br />

storefront that users can browse. One thing<br />

to consider is that engagement goes down<br />

when pages require more clicks from users<br />

and Soldsie adds an additional click to view a<br />

virtual storefront. If you use a tool like Soldsie,<br />

measure the sales and conversions to make<br />

sure it’s worth the monthly fee.<br />

Our next option is using links in Instagram<br />

Stories, which is only available to business<br />

accounts with more than 10,000 followers.<br />

Instagram Stories are images or videos that<br />

stay on Instagram for 24 hours unless added<br />

to a Story Highlight on your profile. With links<br />

JUDGING VANITY METRICS ON INSTAGRAM: IS IT STILL VANITY IF IT WORKS?<br />

USED<br />

EFFECTIVELY,<br />

CRUNCHING THE<br />

NUMBERS ON<br />

YOUR STORE’S<br />

INSTAGRAM<br />

ACCOUNT COULD<br />

BE THE MISSING<br />

KEY TO CREATING<br />

STRONGER<br />

RELATIONSHIPS<br />

WITH YOUR<br />

CUSTOMERS<br />

in Stories, business accounts can add URLs<br />

to their images or video, and viewers just<br />

have to swipe up to open the link. Again, it’s<br />

important to use a UTM code or bit.ly link to<br />

understand where that traffic is coming from.<br />

The last option – Instagram ads – is the most<br />

flexible option, but oddly enough, the one<br />

that businesses avoid the most.<br />

Instagram advertising gives businesses the<br />

option to have a tailored landing page,<br />

control the user experience, reach more<br />

users and measure the results. If you are able<br />

to generate more revenue than the cost of<br />

the ad, it’s a great avenue for your business;<br />

however, that’s a big ‘if’.<br />

Used effectively, crunching the numbers on<br />

your store’s Instagram account could be the<br />

missing key to creating stronger relationships<br />

with your customers. It could also elevate<br />

your marketing message away from generic<br />

social media approaches by providing that<br />

personal touch that consumers crave, and<br />

this could easily be the difference between<br />

surviving or sinking. i<br />

MELISSA MEGGINSON is<br />

marketing manager at Tailwind,<br />

the leading visual marketing<br />

tool for brands. Learn more:<br />

tailwindapp.com<br />

40 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


MY STORE<br />

STORE: MCLEAN &<br />

CO JEWELLERS<br />

COUNTRY: Australia<br />

NAME: Stuart McLean<br />

POSITION: Director<br />

When was the renovated space<br />

completed?<br />

Our space was completed in 2014.<br />

Who is the target market and how did<br />

they influence the store design?<br />

Our target market is clients who seek high<br />

quality, custom made, unique jewellery<br />

that is available for immediate sale. Our<br />

demographic for one off designs from<br />

the window is the over-45s market. The<br />

store’s marble and stainless steel façade<br />

was designed to create a classic jewellery<br />

store front, that assures all customers<br />

of our quality.<br />

With the relationship between store<br />

ambience and consumer purchasing<br />

in mind, which features in the store<br />

encourage sales?<br />

Our mounted television display that<br />

scrolls through our current designs<br />

certainly encourages sales. Our large<br />

‘observation windows’ enable customers<br />

to see the manufacturing jewellers at<br />

work, and bring them into the store to<br />

see what it’s all about.<br />

What is the store design’s ‘wow factor’?<br />

Our marble shop front and steel curtains<br />

are certainly the most admired features of<br />

the store. Creating a look that customers<br />

might expect to see on a high street<br />

rather than a shopping centre certainly<br />

makes us stand out, in a centre with six<br />

national jewellery retailers, and at least 30<br />

fashion retailers. Our look needed to say<br />

‘wow’ while making the statement we are<br />

a quality, traditional style jeweller.<br />

What advice would you offer retailers<br />

wanting to revamp their jewellery<br />

store space?<br />

Look to promote your own products<br />

within the store. Heavily promoting<br />

‘brands’ that are available in other stores<br />

and online have the potential to work for<br />

others. If you are looking at revamping,<br />

ditch the brands and make your retail<br />

space all about you! i<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 41


10 YEARS AGO<br />

WHAT WAS BREAKING NEWS 10 YEARS AGO?<br />

A SNAPSHOT OF THE INDUSTRY EVENTS THAT MADE NEWS HEADLINES IN THE MAY 2008 ISSUE OF JEWELLER.<br />

Auscert boasts<br />

biggest masterset<br />

The story: Melbourne diamond-grading laboratory<br />

Auscert has announced the introduction of a CIBJOcertified,<br />

nine-stone colour masterset.<br />

According to lab owners Anthony Bates and<br />

Monica Crofts, the set took much time and<br />

money to assemble. To qualify as a CIBJO<br />

masterset, every diamond has to be submitted for<br />

comparison against the C1 set held at the SSEF<br />

in Basel, Switzerland. “The C1 set is the largest<br />

diamond masterset in the world,” Bates said. “Every<br />

major laboratory has a master set built against<br />

Rising gold prices<br />

force branch<br />

closures<br />

The story: AGR Matthey <strong>Jeweller</strong>y has<br />

closed its branches in Brisbane and Perth<br />

to compensate for the impact of rising<br />

gold prices. According to a release from the<br />

company, AGR has been hurt by the rising<br />

gold price it has to pay gold producers. This<br />

has resulted in closed branches and staff<br />

cuts across Australia. Despite the branch<br />

closures, a recent statement from AGR<br />

reported it had still managed to sufficiently<br />

improve delivery turnaround times for<br />

customers in WA and Queensland.<br />

these diamonds.” Furthermore, to meet CIBJO<br />

standards, each diamond in the masterset has to<br />

be at least three-quarters of a carat in size and<br />

extremely high clarity.<br />

SWATCH TOPS ONE BILLION<br />

The story: The world’s largest<br />

watchmaker, the Swatch Group,<br />

has announced net income profit<br />

of CHF$1.2 billion (AU$1.6 b) for<br />

2007. According to the company,<br />

this is a record-breaking feat and a<br />

23 per cent gain over 2006 figures.<br />

Gross sales reached almost CHF$6<br />

billion, (AU$8.2 b) rising more than<br />

17 per cent, according to a report in<br />

JCK. “All regions delivered positive<br />

results, with Asia, Europe and the<br />

USA performing particularly well,” the<br />

Swatch report stated, highlighting<br />

that the Swatch Group’s core<br />

segment – watches and jewellery<br />

– “delivered<br />

another strong<br />

performance<br />

in 2007,<br />

posting new<br />

record figures<br />

once again”.<br />

“This extremely<br />

positive trend was already visible in<br />

spring 2007 with the huge demand<br />

and numerous orders received at<br />

the BaselWorld watch and jewellery<br />

show,” the report continued. “All price<br />

segments delivered double-digit<br />

sales growth in 2007, helping boost<br />

profitability across the board.”<br />

Thieves stopped at show<br />

The story: A move by the JAA Australian <strong>Jeweller</strong>y<br />

Fair organiser to apprehend a suspicious group may<br />

have prevented theft at the Brisbane fair. Expertise<br />

Events security staff encountered a man allegedly<br />

loitering in the foyer of the exhibition hall on the<br />

second day of the show. The guards apprehended<br />

the man and his associate, who were handed over to<br />

police for questioning. In an inspection of the duo’s<br />

accommodation, police uncovered a third suspect<br />

also taken in for questioning. All three had flown to<br />

Australia from Colombia just three days before the<br />

fair, leading the security guards and police to believe<br />

they were part of an international crime group. It is<br />

well known in the jewellery industry that Colombian<br />

crime gangs target international jewellery fairs,<br />

working largely by deception.<br />

42 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


EVENTS<br />

JEWELLERY AND WATCH CALENDAR<br />

A GUIDE TO THE LOCAL AND INTERNATIONAL JEWELLERY AND WATCH EVENTS SCHEDULED TO TAKE PLACE IN THE YEAR AHEAD.<br />

MAY<br />

JEWELRY SHANGHAI<br />

Shanghai, China<br />

<strong>May</strong> 9–13<br />

Learn more: newayfairs.com/EN<br />

GAA 71ST FEDERAL<br />

CONFERENCE AND SEMINAR<br />

Hobart, TAS<br />

<strong>May</strong> 3–6<br />

Learn more: gem.org.au<br />

EXPOSOL<br />

INTERNATIONAL FAIR<br />

Soledade, Brazil<br />

<strong>May</strong> 3–6<br />

Learn more: exposol.com.br<br />

NATIONWIDE JEWELLERS<br />

AFRICA TRIP<br />

Africa<br />

<strong>May</strong> 3–11<br />

INTERNATIONAL<br />

JEWELLERY KOBE<br />

Kobe, Japan<br />

<strong>May</strong> 16–18<br />

Learn more: ijk-fair.jp<br />

INTERNATIONAL JEWELRY<br />

AND WATCH FAIR VIETNAM<br />

Ho Chi Minh City, Vietnam<br />

<strong>May</strong> 17–20<br />

Learn more: jewelrytradefair.com/<br />

vietnam/fair_details.html<br />

NEW ORLEANS GIFT &<br />

JEWELRY SHOW<br />

New Orleans, US<br />

<strong>May</strong> 18–21<br />

Learn more: helenbrettexhibits.com<br />

THE SANTA FE SYMPOSIUM<br />

Santa Fe, US<br />

<strong>May</strong> 20–23<br />

Learn more: santafesymposium.org<br />

INTERNATIONAL WATCH &<br />

JEWELRY GUILD SHOW<br />

Las Vegas, US<br />

<strong>May</strong> 28–29<br />

Learn more: iwjg.com<br />

JUNE<br />

JCK LAS VEGAS<br />

Las Vegas, US<br />

June 1–4<br />

Learn more: lasvegas.jckonline.com<br />

JUBINALE INTERNATIONAL<br />

JEWELLERY AND WATCHES<br />

TRADE FAIR<br />

Krakow, Poland<br />

June 7–9<br />

Learn more: jubinale.com/en<br />

HONG KONG JEWELLERY &<br />

GEM FAIR<br />

Hong Kong, China<br />

June 21–24<br />

Learn more: jewellerynetasia.com<br />

JULY<br />

WINTON OPAL TRADESHOW<br />

Winton, QLD<br />

July 13–14<br />

Learn more: qboa.com.au<br />

LIGHTNING RIDGE OPAL<br />

AND GEM FESTIVAL<br />

Lightning Ridge, NSW<br />

July 26–29<br />

Learn more: lightningridgeopalfestival.<br />

com.au<br />

AUGUST<br />

AUSTRALIAN OPAL<br />

EXHIBITION<br />

Gold Coast, QLD<br />

August 2–3<br />

Learn more: austopalexpo.com.au<br />

LEADING EDGE GROUP<br />

JEWELLERS MEMBER AND<br />

SUPPLIER CONFERENCE<br />

Sydney, NSW<br />

TBA<br />

SHOWCASE JEWELLERS<br />

MEMBER AND SUPPLIER<br />

CONFERENCE<br />

Hunter Valley, NSW<br />

August 20–24<br />

INTERNATIONAL<br />

JEWELLERY FAIR<br />

Sydney, NSW<br />

August 25–27<br />

Learn more: jewelleryfair.com.au/<strong>2018</strong><br />

NATIONWIDE JEWELLERS<br />

MEMBER EVENTS<br />

(in conjunction with<br />

International <strong>Jeweller</strong>y Fair)<br />

Sydney, NSW<br />

August 25–27<br />

SEPTEMBER<br />

INTERNATIONAL JEWELLERY<br />

LONDON<br />

London, UK<br />

September 2–4<br />

Learn more: jewellerylondon.com<br />

HONG KONG WATCH<br />

& CLOCK FAIR<br />

Hong Kong, China<br />

September 4–8<br />

Learn more: m.hktdc.com/fair/<br />

hkwatchfair-en/HKTDC-Hong-Kong-<br />

Watch-and-Clock-Fair.html<br />

BIJORHCA PARIS<br />

Paris, France<br />

September 7–10<br />

Learn more: bijorhca.com<br />

JEWELLERS AND<br />

WATCHMAKERS OF NEW<br />

ZEALAND TRADE FAIR<br />

Auckland, New Zealand<br />

September 9–10<br />

Learn more: jwnz.co.nz<br />

BANGKOK GEMS<br />

& JEWELRY FAIR<br />

Bangkok, Thailand<br />

TBA<br />

Learn more: bkkgems.com<br />

NATIONWIDE JEWELLERS<br />

ANTWERP TRIP<br />

Antwerp, Belgium<br />

September 22–28<br />

INTERNATIONAL JEWELLERY<br />

TOKYO AUTUMN<br />

Yokohama, Japan<br />

September 24–26<br />

Learn more: ijt-aki.jp<br />

<strong>May</strong> <strong>2018</strong> <strong>Jeweller</strong> 43


MY BENCH<br />

Laura Pivovaroff<br />

WORKS AT:<br />

Wishart <strong>Jeweller</strong>s<br />

AGE: 22<br />

YEARS IN TRADE: 6 years<br />

TRAINING: Certificate III in<br />

jewellery manufacture<br />

OTHER QUALIFICATIONS:<br />

Diploma in Gemmology<br />

Favourite gemstone:<br />

Impossible to decide!<br />

Favourite metal:<br />

18-carat yellow gold, as<br />

I love the warmth and<br />

richness of the colour.<br />

Favourite tool:<br />

Blow torch. The heat control<br />

and and what you can<br />

achieve with it is something<br />

that constantly amazes me.<br />

Best part of job:<br />

Knowing that you played<br />

a small part in some of the<br />

happiest days of a person’s<br />

life.<br />

Worst part of job:<br />

Cleaning customer’s<br />

jewellery that’s never been<br />

taken off.<br />

Best tip from a jeweller:<br />

Perfect each component<br />

before moving on to the<br />

next because accuracy is<br />

everything!<br />

Best tip to a jeweller:<br />

If you love what you do,<br />

you’ll never work a day in<br />

your life...my tip is to aim<br />

for this.<br />

Biggest health concern on<br />

the bench:<br />

Dust – breathing abrasives<br />

like emery and polish can’t<br />

be great for the lungs.<br />

Love jewellery because:<br />

It’s wearable art! I love being<br />

part of something that will<br />

be loved by generations to<br />

come.<br />

My bench is always:<br />

Immaculately organised,<br />

because work benches are<br />

claustrophobic enough<br />

without any extra clutter.


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SOAPBOX<br />

WE’VE FORGOTTEN THE CUSTOMER IS IMPORTANT<br />

I’ve been through five recessions since<br />

I started my jewellery apprenticeship<br />

in 1963. There was a lot of pressure on<br />

jewellers during recessions; the one in<br />

the 1980s was very damning – we were<br />

paying 25 per cent for business finance<br />

among other things. But we survived it,<br />

because we took care of our customers.<br />

Today, I think we’ve forgotten the client is<br />

more important than anything else. Without<br />

them we have nothing – so we should treat<br />

them like they’re princesses and princes.<br />

You see, private banks or shareholders own<br />

most of the chain stores, and it’s common<br />

now to go into a store where people are too<br />

busy to serve you – they’re either on their<br />

phone or socialising.<br />

Many ‘traditional’ businesses are gone,<br />

but we independent and manufacturing<br />

jewellers have survived. We can still provide<br />

a place that holds up highly esteemed,<br />

quality service. The kind that when you go<br />

in, you know you’re going to be attended<br />

to. You’ll be given that feeling that you’re a<br />

most welcome client.<br />

Yes, we get frustrated when customers walk<br />

in the door with something they bought<br />

from a chain store that now needs repairing;<br />

and when we say we want $100 to fix it,<br />

they say “but I only paid $200 for it”. In this<br />

situation, sometimes it feels like you’re<br />

wasting your time – but we still need to give<br />

these people quality service.<br />

In the ‘old days’, people used to walk into a<br />

jewellery store and get service for ‘nothing’.<br />

It’s an old tradition, but the next generation<br />

of jewellers don’t understand this because<br />

they feel they need to make money out of<br />

everybody who walks in the door.<br />

I still see it in stores that I call on: people<br />

walk in and they want advice for free. “How<br />

much is this piece of gold worth? Would<br />

you buy it? How much is so-and-so, I want<br />

an evaluation done but I don’t want it for<br />

insurance. I don’t want to pay, just tell me<br />

what it’s worth”. I still see and hear these<br />

questions almost every day.<br />

I have a regular customer who first came<br />

into my store years ago, looking somewhat<br />

scruffy. But he would put anything from<br />

$2,000 upwards on the counter regularly,<br />

two to three times a year. Recently he said<br />

to me, ”You’ve never looked down on me,<br />

and you’ve always served me,” and I said,<br />

“Yes, because you’re important to me.”<br />

The same goes for every one of my<br />

customers. If they go away unhappy, they’re<br />

going to tell people; but if I can help them<br />

with a $5 or $10 watch battery, they might<br />

tell their friends. And I don’t know what<br />

business they might ultimately bring me.<br />

At the end of the day it’s important to give<br />

the best service you can offer. Get training,<br />

or employ somebody that is trained. There’s<br />

still a terrible image of jewellers being<br />

crooks, after the media ran stories about<br />

diamonds being swapped and items being<br />

overpriced. We have to build trust and<br />

confidence with customers again.<br />

I can honestly say that in 50 years, I’ve<br />

never failed to get someone to hand over<br />

anything from a $5 piece to a $100,000<br />

piece for repair and have them say with<br />

confidence, “I trust you. You’ve given me the<br />

I CAN HONESTLY<br />

SAY THAT IN 50<br />

YEARS, I’VE NEVER<br />

FAILED TO GET<br />

SOMEONE TO HAND<br />

OVER ANYTHING<br />

FROM A $5 PIECE<br />

TO A $100,000 PIECE<br />

FOR REPAIR<br />

reasons why I need to have this fixed, you’ve<br />

done drawings for me, and you’ve shown<br />

me what needs to be done”.<br />

Sometimes helping someone can be<br />

that simple. I draw what a claw looks like,<br />

and then let the woman see under an<br />

eyeglass that the claw is broken. Then she<br />

understands what she’s paying for, and she’ll<br />

pay $200 to have it repaired.<br />

Customers need to know what work is<br />

actually being done on a product. After all,<br />

that gives them satisfaction and security,<br />

especially when they see the person who’s<br />

going to work on it.<br />

I think we’ve allowed ourselves to be caught<br />

up in the ‘quick sell, make money situation’.<br />

We’ve forgotten how to sell ourselves and<br />

our expertise to the satisfaction of our client,<br />

so that they trust us to do the job right, at<br />

any price we can offer them. They don’t<br />

have to be done for nothing or cheaply;<br />

but when the correctly trained person<br />

speaks to them, and we take the time to<br />

help them understand more about the<br />

process, you’ll get them to pay the right<br />

price – and top price.<br />

My motto is: “Diamonds are not the girl’s<br />

best friend – the real jeweller is.” i<br />

Name: Bruce Rosewarne<br />

Business: Bruce R Rosewarne, FGAA<br />

Position: owner/director<br />

Location: Mooloolaba, QLD<br />

Years in the industry: 55<br />

Got something to get off your chest about the jewellery<br />

industry? Let us know! editorial@jewellermagazine.com<br />

46 <strong>Jeweller</strong> <strong>May</strong> <strong>2018</strong>


Seeing is<br />

believing<br />

A world of sparkling<br />

opportunities.<br />

Perhaps you are<br />

looking forward to<br />

our free presentations<br />

or meeting with<br />

industry bodies?<br />

<strong>May</strong>be you are keen<br />

to network within<br />

your industry?<br />

Or maybe you are<br />

excited to see the<br />

largest collection of<br />

wholesale jewellery<br />

in Australia.<br />

You will experience<br />

it all and more at<br />

the fair.<br />

pms 2935 C<br />

pms 2935 C<br />

Organised by<br />

August 25 > 27, <strong>2018</strong><br />

ICC Sydney<br />

Exhibition Centre<br />

Darling Harbour


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