Jeweller - August Issue 2018

NEWS
NEWS
Michael Hill closes Emma & Roe stores
Michael Hill International (MHI) announced
last month it would close its remaining
six Emma & Roe stores after it closed a
majority of the chain earlier this year.
In a company statement, the closure
was attributed to the result of a strategic
review, with MHI CEO Phil Taylor
announcing it would have a “singular
focus on the Michael Hill brand”
going forth.
“Management resource and capital that
would have been required to reposition the
Emma & Roe brand will instead be directed
to our core business, Michael Hill,” he stated.
“We will continue to take steps to remain
at the forefront of industry innovation,
Gold future looking bright
Increased consumer demand by Asian
giants and greater ethical responsibilities
of the gold mining sector will brighten
the industry over the next few decades,
according to a new report conducted by the
World Gold Council (WGC).
“As the middle class expands rapidly in
China, India and elsewhere, demand for
gold will undoubtedly increase. The gold
mining industry is going to be challenged to
produce as much gold in the next 30 years
as it has done during recent years,” WGC CEO
Aram Shishmanian stated.
Sluggishness in the two largest markets,
India and China, was attributed as one of the
customer service and product design,
to maximise efficiencies and improve
business processes.”
The announcement came just days after
Michael Hill announced a restructuring of
its leadership. General manager of Emma &
Roe, Tishara Mina now oversees almost half
of Michael Hill Australia’s stores.
Mina now heads six of the company’s
13 regions to minimise retail general
manager Kevin Stock’s workload in order
to “focus on the core Michael Hill business”,
being its namesake franchise.
Emma & Roe experienced a 5.4 per cent
decline in sales in nine months up until
31 March 2018.
principal causes for gold jewellery
demand falling to a seven-year low of
2,042 tonnes in 2016, according to
the WGC Gold Demand Trends Full Year
2016 report.
According to the latest study, technological
advancement will become an increasingly
important factor in the industry, while
economic growth will continue to support
global mining.
“Production methods and stakeholder
relations will need to evolve if the
gold industry is to make a meaningful
contribution to society over the next three
decades,” Shishmanian added.
Swarovski increases local presence
China slashes tariffs
on jewellery
China has cut import tariffs on 18
categories of jewellery, including those
set with diamonds and precious stones,
according to a state-approved diamond
service platform.
The new most favoured nation (MFN)
tariffs were reduced for nearly 1,500
categories including jewellery, and this
came into effect in July, Guangzhou
Diamond Exchange (GZDE) announced.
While the overall rate reduction of tariffs
was 67.5 per cent, the rate for gold and
silver jewellery products, including those
set with diamonds, declined from 20 per
cent to 8 per cent.
The rate for gemstones or semiprecious
stones products, natural or
cultural pearl products reduced from
35 to 10 per cent.
The rate for platinum and other precious
metal products also declined from 35 to
10 per cent.
However, a value-added tax of 16 per
cent will be collected at the import
stage, while a consumption tax will be
further levied for some items, according
to the statement.
This is the first time in recent years that
tariffs were cut on jewellery, offering
a significant opportunity for overseas
brands wishing to enter the Chinese
jewellery market, according to Liang
Weizhang, general manager of GZDE.
Jewellery was earlier regarded as a
“luxury item”, but is now covered under
the latest Notice on Reducing the
Import Tariffs of Daily Consumer Goods,
issued by the Customs Tariff Commission
of the State Council in China, the
statement adds.
Swarovski will continue to expand
throughout Australia after announcing it will
open a store in Hornsby, New South Wales.
The company’s latest concept store
will showcase its ‘Crystal Forest’, which
uses crystal designs to demonstrate
Swarovski’s craftsmanship and design
elements to consumers.
In a company statement, executive board
member Robert Buchbauer said, “Our store
design is not only a tremendous illustration of
Swarovski’s contemporary vision and taste for
design, this environment is perfect for us to
share our commitment to excellence, a sense
of creativity, surprise and delight.”
Swarovski continues to expand its bricks-andmortar
offerings and now has over 2,500
stores worldwide. The company also
opened a new store in Green Hills, NSW
earlier this year.
+ MORE BREAKING NEWS
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August 2018 Jeweller 15