Jeweller - March 2020

Industry Feature | BUYING GROUPS REPORT
NATIONWIDE - AUSTRALIA
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 114 67 66 25 27 11 9 3 322
2018 - MEMBERS 108 77 67 30 33 10 8 2 335
Variance 6 -10 -1 -5 -6 1 1 1 -13
2020 - STORES 134 81 76 26 29 12 10 3 371
2018 - STORES 127 94 82 32 34 10 12 2 393
Variance 7 -13 -6 -6 -5 2 -2 1 -22
Excludes 76 members and 85 stores in NZ and 1 member with 5 stores in Fiji
necessarily easy to do!” he says.
Davey says it’s vital for jewellers to
concentrate on great customer service
and creating unique environments –
shopping experiences that can’t be
matched by online competitors.
“Focus on providing a seamless customer
shopping experience, from the presentation
of your store, website and mobile
interaction. Continue to review your cost
of doing business and review the options
available for payments, utilities and rent,
and where needed, get help from your
network,” he advises.
Choosing a buying group
If consumer confidence is low, retail
spending down, and shopping behaviour
has dramatically changed, what can
independent jewellers do to stem the tide?
There’s no doubt that one answer is the
concept of unity, and Australian retailers
have long had three distinct buying groups
from which to chose, all offering different
business models.
However, with the announcement in
January this year of Zarb’s new group,
Independent Jewellers Collective, there’s
now a fourth option.
“IJC is perfect for proactive retailers that
want to grow their business and share in
a tight network of like-minded retailers.
We offer a very simple and inexpensive
business model that offers maximum
hands-on support in all the areas that
they would need help.
“We have a very experienced management
LEADING EDGE - AUSTRALIA
team that specialises in assistance for
independent jewellery retail, and we also
have some unique third-party partnerships
that we offer in our IJC Vault of services to
ensure they have access to specialists in
every area of their business,” Zarb says.
While the other three groups have
established membership bases – all of
which have been affected by store closures
and retirements – Zarb still believes there’s
a niche for IJC.
“We have now completed a tour of the
country launching IJC officially across five
states, with other meetings planned for
retailers who had submitted an expression
of interest that were not able to make one
of the sessions.
“We always had a plan to go to market
with 40-plus stores. I am pleased to
say that we received more than that
number of expressions of interest within
the first day of our launch announcement
being released.
“We have subsequently presented to even
more stores during the state meetings,”
Zarb explains.
He notes that while it is still early days,
he has been overwhelmed with the positive
feedback from retailers.
“We are receiving application forms daily
as a result and are now confident that we
will meet our minimum store number for
launch – and we may even exceed it, based
on discussions to date. IJC aims to partner
with a smaller number of proactive retailers
and grow accordingly as our model is very
much about tailored one-on-one support.”
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 39 15 12 5 12 2 1 3 89
2018 - MEMBERS 54 23 26 9 17 3 1 2 135
Variance -15 -8 -14 -4 -5 -1 0 1 -46
2020 - STORES 46 36 16 7 13 2 1 3 124
2018 - STORES 70 52 29 10 19 3 2 10 195
Variance -24 -16 -13 -3 -6 -1 -1 -7 -71
Excludes 2 members and 4 stores in NZ
ABOUT
SUPPLIERS
“We limit the number
of preferred suppliers
in each category,
to ensure that their
involvement with the
group will help them
improve their market
share.”
Colin Pocklington
Nationwide Jewellers
“Where we see
potential in a new
product or supplier
we present a business
case to our members
to assist their
decision making.”
Charlie Davey
Leading Edge Group
“We also don’t need
more of the same
product, for new
suppliers there
must be a point of
difference.”
Carson Webb
Showcase Jewellers
“When looking for
new suppliers, we
look for product
that has a point of
difference from our
existing suppliers.”
Josh Zarb
Independent Jewellers
Collective
Like all other industries, the original
reason for joining a buying group was to
take advantage of the trade discounts from
suppliers – however, Pocklington says that
is a very outdated model.
“In the past ten years the main reason for
joining has been the need for expert industry
support. Our team of highly experienced,
jewellery specific professionals cover
all disciplines including marketing,
merchandise, human resources, and
training, as well as business planning
and advice.
“Nationwide can provide a wide range of
essential support for independent retailers.
Having these resources available is always
important, but even more so in a difficult
economy,” Pocklington adds.
The backing of a buying group when
negotiating leases or lease renewals can
pay for itself many times over, given the
potential savings.
Davey says the main reasons for
independent stores to consider
membership of a buying group are “to grow
and drive sales into their stores, through
traditional means and online strategies,
for support with marketing, training and
development, and for access to central
billing with more than 140 suppliers.”
Leading Edge members also receive free
membership to the Australian Retailers
Association, which Davey says ensures
there is a wealth of knowledge and support
behind every member.
“Our members receive the best discounts
the industry has to offer in terms of
payment platforms, EFT rates, shipping
costs and exchange rates. In addition,
our MMC and Aurora Diamonds ranges
offer exclusive jewellery to our members
at prices not available to other retailers,”
he explains.
Webb agrees that in today’s business
climate joining a buying group is not about
trade discounts.
“The Showcase model means that
members are the owners and shareholders
of Showcase, we aren’t privately owned like
others. Joining our group should not be just
for discounts or finance.
“While they are elements that fit into the
bigger picture, I believe that if you join any
group for only those reasons, then you’ll
be doing the wrong thing for the long-term
viability of your business,” he explains.
“Jewellers join to be part of a network of
support and training, with focus groups,
product assistance, access to exclusive
opportunities that they would not get by
themselves, marketing resources that are
customised to suit them, a centralised
account, and amazing travel opportunities
36 | March 2020