Jeweller - March 2020

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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
SHOWCASE - AUSTRALIA COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL 2020 - MEMBERS 53 30 38 5 4 7 0 1 138 2018 - MEMBERS 61 30 40 7 5 8 0 1 152 Variance -8 0 -2 -2 -1 -1 0 0 -14 2020 - STORES 65 42 57 7 4 8 0 1 184 2018 - STORES 76 47 63 10 5 10 0 1 212 Variance -11 -5 -6 -3 -1 -2 0 0 -28 GREAT WATCHES DESERVE A GREAT WATCH BATTERY YOUR ONE-STOP SEIKO PARTS SHOP Excludes 19 members and 19 stores in NZ and 1 member with 1 store in Vanautu such as visiting factories and meeting large retailers around the world. “Having a large resource of knowledge and support that also cares about you like a family member, and will fight for you, push you, support you, and guide you almost 24/7, is priceless,” Webb adds. Showcase members also receive free membership to the Australian Retailers Association and its Kiwi members receive membership to the equivalent New Zealand body. Equipped for the future As the business climate has changed, and as traditional retailing has come to grips with digital competition, training and education have become the cornerstones of all the buying groups. Pocklington explains the importance of being able to benchmark your store against other, similar stores is vital: “In the past two years, we have created a 12-month trading budget for more than 150 of our members, and in the process benchmarked their business and provided them with the precise actions needed to improve their profitability.” He adds, “Our one-day Retail Jewellery Business Management Course, valued at $5,000 but free for members, is now in its third year and more than 100 members have completed it in Australia and New Zealand. “The course introduces several important aspects of retail science and shows members how to implement the seven strategies for retail success.” Before launching IJC, Zarb conducted a review of the marketplace in order to find the new buying group’s niche. He tells Jeweller, “Everything we offer at IJC aims at specific one-on-one support for our retailer partners – and our business model also ensures that our stores are always accruing funds to make use of our IJC Vault of services. “Upon joining the Independent Jewellers Collective, partners will receive a free Business Health Check, covering staffing levels, stock holding, merchandising, marketing and overall business performance and profitability – delivered in a ‘real world’ solution package. “This is at the heart of our offer and recommendations will be provided on which levers to pull, and when, to create the biggest impact on our member’s bottom line,” Zarb adds. While retail buying groups do not offer the elusive panacea – and may not be the right choice for every independent jeweller – as the business world becomes increasingly competitive and complicated, they do offer a safe harbour within which like-minded business owners can seek protection and assistance in order to flourish. Better still, jewellers now have a choice of four groups – all with different business models and advantages – to suit their specific needs. Are discounts the most important factor in joining a buying group? “While discounts play a role, other areas of the membership offer are more important. These include experience driving sales into store to increase turnover, and experience developing store-specific clearance strategies that will not undermine gross profit. Gross profit and net profit are benchmarks to determine the health of a business, so any area affecting these benchmarks is vitally important.” Charlie Davey Leading Edge Group “Our vision is unchanged: we believe that members always come first, so we not only provide the largest discount back to the retailer, but any profits made throughout the year are also passed back to our members. Would you prefer an extra 5 or 10 per cent from your supplier, or let the group take that discount and provide you with free marketing, business support, and everything else?” Carson Webb Showcase Jewellers “Discounts are still important, which is why we give a written guarantee that any jeweller joining Nationwide will be financially better off with our trade discounts, member rewards and no-fees-orcharges structure. A recent reconciliation for several new members showed that, depending on the mix of their purchases, they were 2 to 5 per cent better off with Nationwide.” Colin Pocklington Nationwide Jewellers “Discounts are definitely important. However, the reality is that all buying groups offer very similar net discounts after everything is factored in. The real choice is then down to what level of support you would like. IJC falls into the boutique service category, with high-quality, one-on-one service and a smaller number of retailers.” Josh Zarb Independent Jewellers Collective PROMOTION OF THE MONTH THE BATTERY MAN has been a trusted supplier to the industry for nearly 40 years and is one of the largest suppliers of Seiko watch batteries in Australia. We are family owned and operated, provide fast and friendly service and we value your business. Save big on Seiko in March. FREE delivery Aust & NZ Includes FREE AA/AAA batteries Stock up for 2020 with the six most popular SEIKO batteries heavily discounted this month. Choose from two great battery packs: BATPACK900 626sw/377 x 300 621sw/364 x 300 920sw/371 x 150 521sw/379 x 50 927sw/395 x 50 616sw/321 x 50 Total 900 Seiko Batteries BATPACK450 626sw/377 x 150 621sw/364 x 150 920sw/371 x 75 521sw/379 x 25 927sw/395 x 25 616sw/321 x 25 Total 450 Seiko Batteries • In a buying group? Check your specials online and order soon • Existing customers? Order in March and save over 25% • Not a customer yet? Contact us for great deals this March Keep watch repair business alive & ticking in your suburb! Spare parts supplier of Seiko, Pulsar & Lorus, plus Seiko tools and accessories. Valid until 31 March 2020 It’s easy to place your order or get a quote. orders@thebatteryman.com.au Free Fax: 1800 028 887 Free Call: 1800 244 354 Text or Ph: 0414 682 423 thebatteryman.com.au
Page 1 and 2: VOICE OF THE AUSTRALIAN JEWELLERY I
Page 3: Y O U R L E A D I N G S U P P L I E
Page 6 and 7: Looking for new product ideas? Mayb
Page 8 and 9: Upfront Upcoming Trade Shows 3 - 5
Page 10 and 11: Only $6,495 USD yehuda.com +1.212.2
Page 12 and 13: News Prestigious diamond jewellery
Page 14 and 15: News In Brief All-sapphire watch 4F
Page 16: New Products 1 2 3 4 MARCH Monthly
Page 19 and 20: INSIDE My Store Sarah & Sebastian S
Page 21 and 22: LEARN ABOUT Gems Chrysoprase Chryso
Page 23 and 24: NATURAL FANCY DIAMONDS Price per ca
Page 25 and 26: PinkKimberley.com.au E pink@samsgro
Page 27 and 28: FLIGHT OF FANCY | Colour Diamonds F
Page 29 and 30: FEATURE Engagement Jewellery WITH T
Page 31 and 32: Harry Winston Rachel Boston Paul Br
Page 33 and 34: The Largest Range of Argyles Your o
Page 35: something that remains challenging
Page 39 and 40: FREE SUPPORT SERVICES FOR INDEPENDE
Page 41 and 42: BUYING GROUP We’ll Help You Thriv
Page 43 and 44: Leading Edge Group is Australia’s
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Page 47 and 48: Retail Strategy could be tremendous
Page 49 and 50: BUSINESS Management Why taking risk
Page 51 and 52: BUSINESS Logged On Why some people
Page 53 and 54: Instant online quoting Overnight pr
Page 55 and 56: When 2 shows are better than 1 INTE

Jeweller - March 2020

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