Jeweller - June, Edition II 2020
• Shock value: How jewellers can adapt to and even benefit from the impact of COVID-19 • Brave new world: Preparing your business for the 'next normal' of retail • Double or nothing: experts reveal the key strategies to securing multiple-item sales
• Shock value: How jewellers can adapt to and even benefit from the impact of COVID-19
• Brave new world: Preparing your business for the 'next normal' of retail
• Double or nothing: experts reveal the key strategies to securing multiple-item sales
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY JUNE <strong>2020</strong>, EDITION 2<br />
Shock value<br />
HOW JEWELLERS CAN ADAPT TO AND EVEN<br />
BENEFIT FROM THE IMPACT OF COVID-19<br />
Brave new world<br />
PREPARING YOUR BUSINESS FOR THE<br />
‘NEXT NORMAL’ OF RETAIL<br />
Double or nothing<br />
EXPERTS REVEAL THE KEY STRATEGIES<br />
TO SECURING MULTIPLE-ITEM SALES
THINK<br />
BIG!<br />
Unmissable Experiences<br />
When TWO shows are better than one<br />
September is timed to deliver the Golden Quarter, retailers<br />
busiest and most profitable time of the year. For the first<br />
time, the Spring Gift & Lifestyle Fair will run next door to<br />
the International <strong>Jeweller</strong>y & Watch Fair this September.<br />
jewelleryfair.com.au<br />
INTERNATIONAL<br />
J E W ELLERY & WATCH FAIR<br />
ICC Sydney Exhibition Centre<br />
Darling Harbour<br />
Organised by<br />
September 12 – 14, <strong>2020</strong> Est. 1990<br />
September 12 – 15, <strong>2020</strong>
# 1<br />
in Australia<br />
#3<br />
in the World<br />
<strong>Jeweller</strong> has always been recognised as the #1 trade<br />
magazine in Australia.<br />
Alexa.com, the global ranking system for analysing<br />
website readership, ranks jewellermagazine.com well<br />
above its industry competitors.<br />
Better still, Feedspot, the independent content reading<br />
service, ranks <strong>Jeweller</strong> #3 in the world. Of all B2B<br />
jewellery publications, we rank just behind the US’s<br />
National Jeweler and the UK’s Professional <strong>Jeweller</strong> in<br />
Feedspot’s “Top 10 Jewelry Magazines & Publications<br />
To Follow in <strong>2020</strong>”.<br />
It’s <strong>Jeweller</strong>’s commitment to excellence in reporting,<br />
high-quality presentation and readership that sets us<br />
apart. For these reasons during the economic crisis and<br />
global pandemic <strong>Jeweller</strong> has decided to go fortnightly –<br />
rather than monthly in these challenging times.<br />
We aren’t hibernating we’re ‘hypernating’ to help<br />
retailers and suppliers not only survive but thrive!<br />
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
JUNE <strong>2020</strong><br />
Contents<br />
This Issue<br />
8 Upfront<br />
10<br />
FACTS & FIGURES<br />
COVID-19 Update<br />
12 News<br />
26<br />
LEARN ABOUT GEMS: BACK IN TIME<br />
Ruby<br />
40 RETAIL FEATURE<br />
Pandemic perspective<br />
<strong>Jeweller</strong>s and retail experts reflect on how<br />
COVID-19 has altered the economy, consumer<br />
behaviour, and the physical reality of shopping<br />
– and new opportunities to adapt and thrive.<br />
36 <strong>Jeweller</strong>s Showcase<br />
Features<br />
28<br />
FORECAST FEATURE<br />
Defining the ‘next normal’<br />
40<br />
RETAIL FEATURE<br />
Accelerated evolution: Lessons of the lockdown<br />
Better Your Business<br />
52<br />
SALES STRATEGY<br />
LEONARD ZELL advises on how to ‘save’ failing sales and support staff on the floor.<br />
36 JEWELLERS SHOWCASE<br />
Across the bench<br />
A dazzling showcase of outstanding pieces<br />
by talented jewellery designers from around<br />
Australia and New Zealand.<br />
56<br />
58<br />
60<br />
SELLING<br />
Focus on multiple-item sales, write RICK SEGEL and MATTHEW HUDSON.<br />
MANAGEMENT<br />
BRYAN PEARSON reveals the hidden dangers of discounting.<br />
MARKETING & PR<br />
Loyalty programs can help win over potential customers, writes TIM MOULTON.<br />
62<br />
LOGGED ON<br />
KATIE BUNCH explains how to make the most of Google My Business.<br />
28 FORECAST FEATURE<br />
New horizon<br />
COLIN POCKLINGTON explores<br />
retail’s ‘next normal’ and provides<br />
strategies for survival.<br />
FRONT COVER<br />
The Swarovski Zirconia Vibrance<br />
collection is released in celebration<br />
of 125 years of the brand’s heritage.<br />
Reflecting a kaleidoscope of colour,<br />
each gemstone features a unique<br />
combination of hues creating a<br />
captivating colour-change effect.<br />
Available in four cuts and three<br />
colours: Vibrant Red-Orangy Yellow,<br />
Vibrant Spring Green-White, and<br />
Vibrant Purple-Aqua.<br />
<strong>June</strong> <strong>2020</strong> | 5
S A MS GR O UP<br />
A U STRA L I A<br />
WE’LL RISE ABOVE THE STORM<br />
These are unsettling times, with COVID-19 impacting our<br />
professional lives and those close to us. We understand it<br />
is challenging to operate under current restrictions, however<br />
we’re getting through this together one day at a time and<br />
there is a light at the end of this tunnel.<br />
Despite the circumstances, take care and make time to<br />
do the things you love with the people you love; it’s<br />
never been more important to support one another, remain<br />
positive and keep smiling.<br />
Wishing you a safe passage through this difficult period.<br />
We’ll rise above the storm.<br />
Steve Der Bedrossian<br />
CHIEF EXECUTIVE OFFICER<br />
ARGYLE PINK<br />
DIAMONDS<br />
Semi Precious <strong>Jeweller</strong>y<br />
T: 02 9290 2199 F: 02 9262 1630 E: Pink@samsgroup.com.au W: Samsgroup.com.au
Upfront<br />
#Instagram hashtags to follow<br />
Alpha Order<br />
HISTORIC GEMSTONE<br />
The Tiffany<br />
Diamond<br />
One of the largest yellow<br />
diamonds ever discovered, the<br />
Tiffany Diamond was unearthed<br />
at South Africa's Kimberley Mine<br />
1877, weighing 287.42 carats.<br />
It was purchased by Charles Lewis Tiffany, founder of Tiffany &<br />
Co., and cut by his gemmologist George Kunz, who spent a year<br />
developing an 82-facet cushion cut to maximise its colour and<br />
brilliance. It was later mounted in a diamond necklace which has<br />
been worn by just three women: socialite E. Sheldon Whitehouse,<br />
actress Audrey Hepburn, and entertainer Lady Gaga.<br />
Instagram is also<br />
expanding access<br />
to Brand Collabs<br />
Manager, which<br />
assists businesses<br />
in connecting with<br />
influencers to<br />
promote products.<br />
#australianopal<br />
108,029+ POSTS<br />
#diamondring<br />
2.5 MILLION POSTS<br />
#emerald<br />
2.2 MILLION POSTS<br />
#goldfilledjewelry<br />
87,620+ POSTS<br />
#jewelrystyle<br />
253,495+ POSTS<br />
#joaillerie<br />
Digital Brainwave<br />
206,700+ POSTS<br />
#personalizedjewelry<br />
344,490+ POSTS<br />
#pinksapphire<br />
96,290+ POSTS<br />
#ringgoals<br />
155,700+ POSTS<br />
#statementjewellery<br />
616,400+ POSTS<br />
The Tiffany<br />
Diamond,<br />
mounted in<br />
a white diamond<br />
necklace:<br />
Tiffany & Co.<br />
the<br />
Instagram has announced a suite of new<br />
elements to assist businesses in selling<br />
through the social media app.<br />
Ads are being tested on the app’s longform<br />
video feature, IGTV, in the US. The<br />
mobile-formatted 15-second clips will play<br />
before videos and during previews. IGTV<br />
ads are expected to be available worldwide<br />
by the end of the year.<br />
Meanwhile, Live Shopping will allow<br />
businesses to ‘tag’ products during live<br />
videos, providing another shopping<br />
channel for consumers.<br />
in<br />
Artist:<br />
Lawrence Jangala<br />
Watson<br />
Trendspotting<br />
With renewed focus on the Black<br />
Lives Matter movement, consumers<br />
are seeking out Indigenous Australian<br />
jewellery. From the traditional to the<br />
contemporary, pieces created by – and<br />
financially supporting – First Nations<br />
people have seen a spike in demand.<br />
Images: Occulture.com<br />
Top Product<br />
The Maurice Lacroix Aikon Automatic<br />
Skeleton watch features a fresh-look<br />
open-worked case which reflects<br />
the brand's contemporary aesthetic.<br />
Housing the new ML234 calibre, the<br />
timepiece blends the design cues of the<br />
Aikon range with Swiss watch-making<br />
expertise. Distributed by West End<br />
Collection.<br />
Stranger Things<br />
Weird, wacky and wonderful<br />
jewellery news from around the world<br />
Treasure seeker<br />
A US man has discovered<br />
real-life buried treasure<br />
hidden in the Rocky Mountains.<br />
The bronze chest, filled with<br />
gold nuggets, jade, ruby, and<br />
emerald jewellery, and rare<br />
coins, was buried by antiquities<br />
collector Forrest Fenn, 89, 10<br />
years ago. Fenn hid clues to its<br />
location in a poem entitled The<br />
Thrill Of The Chase, and said<br />
the hunt was designed to 'tempt'<br />
people to explore the wilderness.<br />
Chain reaction<br />
UK miniseries Normal<br />
People has spawned an unlikely<br />
jewellery obsession. The<br />
14-carat white gold chain worn<br />
by male lead Connell Waldron<br />
now has a dedicated Instagram<br />
account, @connellschain, with<br />
more than 180,000 followers.<br />
Earlier this month, actor Paul<br />
Mescal, who plays Connell,<br />
auctioned the chain – designed<br />
by jeweller Roxanne First –<br />
for the charity Pieta, raising<br />
Ð70,000 ($AU114,680).<br />
Plastic fantastic<br />
Polish jeweller Anna Orska<br />
has created a range of jewellery<br />
featuring synthetic gemstones<br />
made from recycled plastic,<br />
inspired by environmentalism.<br />
“The starting material is plastic,<br />
but the process results in<br />
imperfections that mean that,<br />
like in nature, there are no two<br />
identical pieces,” said Orska,<br />
who set the ‘gemstones’ in<br />
brass rings, earrings<br />
and necklaces.<br />
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />
Published by Befindan Media Pty Ltd<br />
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | info@jewellermagazine.com<br />
Publisher & Managing Editor Angela Han angela.han@jewellermagazine.com • Assistant Editor Arabella Roden arabella.roden@jewellermagazine.com<br />
Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com • Subscriptions info@jewellermagazine.com<br />
Copyright All material appearing in <strong>Jeweller</strong> is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd<br />
strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information<br />
believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed<br />
to the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or<br />
liabilities arising from the published material.
THE HEALTH OF YOUR<br />
BUSINESS IS VITAL<br />
CORONAVIRUS ASSISTANCE<br />
In these uncertain times, Vital Diamonds is<br />
extending its credit terms from 30 to 60<br />
days for the next three months.<br />
Offer Ends 30 <strong>June</strong> <strong>2020</strong>
COVID-19 Update<br />
56%<br />
increase in e-commerce<br />
sales for multi-channel<br />
retailers in April <strong>2020</strong>,<br />
compared with 2019<br />
* Australian Financial Review, 12 <strong>June</strong> <strong>2020</strong><br />
27 September<br />
Scheduled expiry date<br />
for the JobKeeper wage<br />
subsidy scheme<br />
78%<br />
of small business owners<br />
have had to make major<br />
sacrifices to ensure their<br />
business survived<br />
* Money.com.au Business Sacrifice Survey, April <strong>2020</strong><br />
Preliminary retail turnover<br />
figures for May <strong>2020</strong> surged<br />
16.3 per cent, following the<br />
largest fall ever of 17.7 per<br />
cent in April<br />
* Australian Bureau of Statistics<br />
SCOTT MORRISON<br />
PRIME MINISTER OF<br />
AUSTRALIA<br />
“Without these [JobKeeper]<br />
measures, businesses would<br />
have simply fallen over, never to<br />
open again. This may ultimately<br />
be the experience for some.<br />
But for many more, these<br />
measures will have provided the<br />
bridge they needed [to overcome<br />
the pandemic]."<br />
PAUL ZAHRA<br />
CEO, AUSTRALIAN RETAILERS<br />
ASSOCIATION<br />
“May marked the beginning of<br />
a slow and hard-fought path<br />
towards recovery for our retail<br />
sector. Whilst most stores<br />
have now reopened, many face<br />
significant ongoing financial<br />
pressure resulting from<br />
hibernation, increased new<br />
hygiene protocols and a<br />
reduction in overall foot traffic."<br />
BELINDA ALLEN<br />
SENIOR ECONOMIST,<br />
COMMONWEALTH BANK<br />
OF AUSTRALIA<br />
“There’s more opportunity for<br />
consumers to go out there and<br />
spend, but I guess what we don’t<br />
know yet is if consumers want<br />
to. We certainly have seen some<br />
improvement, but not as much<br />
as what we had anticipated given<br />
we’ve seen some further easing<br />
of restrictions.”<br />
759,654<br />
businesses had JobKeeper<br />
claims processed by the<br />
Australian Taxation Office,<br />
as at 22 May<br />
* Australian Taxation Office, Australian Treasury<br />
$28.8 billion<br />
preliminary estimate of<br />
Australian retail turnover<br />
for May <strong>2020</strong>, a 5.3 per cent<br />
increase compared with<br />
May 2019 in seasonallyadjusted<br />
terms<br />
* Australian Bureau<br />
of Statistics<br />
23 July<br />
Treasurer Josh Frydenberg and<br />
Finance Minister Mathias Cormann<br />
expected release findings from<br />
Treasury’s midway review of the<br />
JobKeeper and enhanced<br />
JobSeeker payments<br />
Speakers will<br />
include China<br />
expert Ashley<br />
Dudarenok, Swiss<br />
watch consultant<br />
Thomas Baillod,<br />
and CIBJO’s<br />
Stephane Fischler.<br />
CIBJO<br />
CIBJO, the world jewellery<br />
confederation, will host<br />
the next instalment of its<br />
‘<strong>Jeweller</strong>y Industry Voices’<br />
webinar series on Thursday 25<br />
<strong>June</strong> at 9am New York time.<br />
Entitled, ‘Will Retail, As<br />
We Know It, Be Forever<br />
Changed?’, the discussion<br />
will focus on the complexity of<br />
modern retail, omnichannel<br />
marketing, and heightened<br />
consumer expectations, with<br />
an international scope.<br />
Michaelia Cash<br />
MP, Paul Zahra,<br />
CEO ARA, Nick<br />
Molnar, CEO<br />
Afterpay (US), and<br />
Grant Kelley, CEO<br />
Vicinity Centres,<br />
will take part.<br />
Australian<br />
Financial Review<br />
Business publication the<br />
Australian Financial Review<br />
will hold a virtual summit,<br />
entitled ‘Retail: Through<br />
The Crisis’, on Thursday 25<br />
<strong>June</strong> from 9.30am–2.30pm<br />
Australian Eastern Time.<br />
Topics will include the<br />
challenges of lease<br />
negotiation, e-commerce,<br />
rethinking sourcing and<br />
supply chains, and the retail<br />
recovery. Register here.<br />
The extensive<br />
InStore webinars<br />
feature industry<br />
figures discussing<br />
their experiences<br />
and offering<br />
industry-specific<br />
tips and analysis.<br />
InStore<br />
Rewatch US jewellery<br />
industry publication<br />
InStore’s webinar series<br />
‘COVID-19: Getting Back<br />
To Work’ here.<br />
Experts offer practical<br />
advice on everything from<br />
improving relationships with<br />
suppliers, to the changing<br />
role of sales reps, producing<br />
effective marketing<br />
content, finances and stock<br />
management, safety, and<br />
reconnecting with customers.<br />
10 | <strong>June</strong> <strong>2020</strong>
News<br />
Buying groups confirmed for Sydney <strong>Jeweller</strong>y Fair as planning gathers pace<br />
<strong>Jeweller</strong>s, said, “The IJWF is the main industry<br />
event each year, so we all need to do our best<br />
to support the industry, particularly in these<br />
difficult conditions.”<br />
Carson Webb, general manager Showcase<br />
<strong>Jeweller</strong>s, added, “The importance of getting<br />
together and planning for the Christmas period<br />
should never be underestimated. It’s been one heck<br />
of a ride so far in <strong>2020</strong> so this would be fabulous as<br />
a positive get-together.<br />
Three of the four buying groups have committed to this year’s International <strong>Jeweller</strong>y & Watch Fair (IJWF).<br />
This year’s International <strong>Jeweller</strong>y & Watch Fair<br />
(IJWF) will be supported by Nationwide <strong>Jeweller</strong>s,<br />
Showcase <strong>Jeweller</strong>s, and the country’s newest<br />
buying group Independent <strong>Jeweller</strong>s Collective,<br />
organiser Expertise Events has confirmed.<br />
Gary Fitz-Roy, managing director Expertise<br />
Events, said the fair was an opportunity for the<br />
Australian jewellery industry to reconnect and heal<br />
following a devastating year of bushfires and the<br />
COVID-19 pandemic.<br />
The IJWF is scheduled to take place from 12–14<br />
September at the International Convention Centre<br />
(ICC) in Sydney, with Fitz-Roy expressing confidence<br />
in governments rolling back COVID-19 restrictions<br />
and border controls in the coming weeks.<br />
“As each week goes by we are increasingly confident<br />
that both Federal and State government restrictions<br />
are being relaxed. We have had indications the<br />
Queensland borders will open by 10 July and we<br />
believe exhibition centres will have staggered<br />
openings from July in Queensland and NSW,”<br />
Fitz-Roy said.<br />
“[Expertise Events is] ready to go for a successful<br />
fair and we are equally waiting to take advice from<br />
the [NSW] State Medical Officer as the rules are<br />
changing weekly, and by the time the IJWF comes<br />
around the rules will be different from today.”<br />
Fitz-Roy emphasised that the participation of<br />
three of the four buying groups – which together<br />
represent more than 550 jewellery stores and<br />
more than 460 members – was critical to<br />
achieving the goal of reconnecting and reuniting<br />
the jewellery industry.<br />
“I would very much like to acknowledge the<br />
support and encouragement from Nationwide<br />
and Showcase over many years for showing<br />
their commitment to help jewellers thrive and<br />
prosper,” Fitz-Roy said.<br />
Colin Pocklington, managing director Nationwide<br />
“Networking, preparing product and range<br />
offerings for Christmas, communicating with<br />
our partners and retailers, and specifically sharing<br />
our challenges and wins over this difficult period,<br />
will be essential,” he added.<br />
Independent <strong>Jeweller</strong>s Collective (IJC), which was<br />
established in January <strong>2020</strong>, will make its debut<br />
appearance at the fair, with CEO Joshua Zarb telling<br />
<strong>Jeweller</strong>, “This is an exciting year for IJC as it will<br />
be our chance to tell our story and cement our<br />
place in the jewellery industry. We always set out to<br />
be a smaller, bespoke group of proactive retailers<br />
and suppliers and although we hadn’t factored a<br />
pandemic into our opening timeline, we hit our<br />
starting numbers and couldn’t be more excited to<br />
get to the fair.”<br />
Notably, at the time of publication, Leading Edge<br />
Group <strong>Jeweller</strong>s (LEGJ) was yet to confirm its<br />
participation at this year’s event.<br />
Simon Lane, CEO Leading Edge Group, said,<br />
“We are looking at attending again this year but<br />
are looking for assurances around social distancing<br />
measures to protect our staff and members. We<br />
are in discussions with the event manager as to<br />
how we might participate and how they intend<br />
CONTINUED ON PAGE 24<br />
Bail hearings held<br />
for defendants in<br />
Melbourne Gold<br />
Company robbery<br />
Melbourne Magistrates’ Court has heard bail<br />
applications for Karl Kachami, 48, and Daniel<br />
Ede, 37, who are defendants in the $3.9 million<br />
armed robbery of gold dealer Melbourne Gold<br />
Company (MGC).<br />
Kachami was arrested shortly after the robbery,<br />
which took place at 9.40am on 27 April at MGC’s<br />
offices on Collins Street. CCTV footage showed him<br />
apparently threatening Ede – an employee of MGC<br />
– with a firearm before opening a safe and loading<br />
gold bullion, jewellery and cash onto a trolley before<br />
fleeing the scene in a vehicle.<br />
The Age reported that he later led police to his<br />
family’s property at Dollar, in the Gippsland<br />
region, where they recovered a portion of the<br />
stolen goods and cash, as well as a handgun<br />
and stolen number plates.<br />
Ede was subsequently arrested on 12 May and<br />
charged with aggravated burglary, theft, perjury<br />
and firearms offences, with police alleging he<br />
and Kachami were friends and had planned the<br />
robbery together.<br />
At the bail hearing, Detective Senior Constable Sarah<br />
Inglese, Victoria Police, said that inspection of the<br />
CCTV footage indicated the gun wielded by Kachami<br />
was not loaded.<br />
Police allege that a suspicious white vehicle spotted<br />
in Dollar in the days following the robbery belonged<br />
to Ede’s father-in-law. Additionally, the court heard<br />
that Ede had previously loaned Kachami $88,000.<br />
Acting for Kachami at the hearing, barrister Philip<br />
Dunn QC characterised the robbery as a “comedy of<br />
errors” and said his client “went along with what he<br />
thought was a no-risk plan”.<br />
CONTINUED ON PAGE 24<br />
12 | <strong>June</strong> <strong>2020</strong>
Let’s Talk<br />
It’s always important to talk, but right now – in the middle<br />
of a worldwide economic crisis – it’s more important than<br />
ever to talk and work together.<br />
<br />
is listening and adapting to your needs as a true business partner.<br />
<br />
We are<br />
open to discussing anything you need to assist your business<br />
during this challenging time.<br />
Phil Edwards<br />
<br />
<br />
<br />
For more details please call (02) 9417 0177 and talk to
Daniel Wellington New Zealand goes into liquidation<br />
The Daniel Wellington flagship store on Auckland’s Queen Street – which opened in <strong>June</strong> 2019 – and the<br />
Newmarket store closed permanently on 28 May.<br />
The New Zealand subsidiary of Daniel Wellington<br />
was liquidated on 28 May <strong>2020</strong> – less than two years<br />
after it was incorporated – due to the “unprecedented<br />
challenges” of the COVID-19 pandemic.<br />
A report prepared by liquidator Craig Sanson of<br />
PriceWaterhouseCoopers noted that New Zealand’s<br />
level-four lockdown – which was in place from<br />
25 March to 27 April and prohibited trading of<br />
all non-essential businesses – had “diminished<br />
revenues” for the business, while “significant”<br />
fixed costs remained.<br />
Confirming the company’s demise to <strong>Jeweller</strong>,<br />
Scott Patchett, who was a director of Daniel<br />
Wellington (New Zealand) and is general manager<br />
of Daniel Wellington (Australia), said, “We have<br />
filed for liquidation for our New Zealand subsidiary,<br />
and we are currently in the liquidation process.<br />
“The COVID-19 pandemic has caused unprecedented<br />
challenges to many retail businesses globally,<br />
including Daniel Wellington.”<br />
“The COVID-19 pandemic has caused<br />
unprecedented challenges to many<br />
retail businesses globally, including<br />
Daniel Wellington”<br />
stock and repairs, Patchett said, “During this process<br />
we have, and will continue to be in communication<br />
with all our wholesale partners.”<br />
The liquidators’ report indicated that Daniel<br />
Wellington (New Zealand) had debts of at least<br />
$872,824.93 – of which $855,0467 was owed to<br />
unsecured creditors. A further $17,357.93 was owed<br />
to employees, though all wages and annual leave<br />
entitlements had been paid. The receivables were<br />
calculated to be $137,000.<br />
Patchett could not provide a definitive answer about<br />
the Australian operation, when questioned about<br />
the future of the company’s local presence and<br />
distribution: “We would like to stress that Australia<br />
and New Zealand are completely separate entities.<br />
Out of respect for everyone involved, we decline to<br />
comment any further at this stage,” he said.<br />
Daniel Wellington was founded in Sweden in 2011<br />
and entered the Australian market two years later,<br />
distributed by West End Collection.<br />
The relationship with West End Collection ended<br />
in 2018, the same year that Daniel Wellington<br />
subsidiaries in Australia, New Zealand and South<br />
Africa were established.<br />
15<br />
1/3 PAGE<br />
VERTICAL<br />
Scott Patchett, Daniel Wellington (Australia)<br />
The two Daniel Wellington flagship stores, located<br />
on Queen Street and Newmarket in Auckland, were<br />
closed on 28 May with a loss of 12 jobs.<br />
The Swedish brand is also stocked in a number<br />
of retailers, including chains Walker & Hall<br />
and Silvermoon.<br />
When asked whether retailers had been informed of<br />
the liquidation, and about their options for remaining<br />
Business data firm Dun & Bradstreet estimates<br />
Daniel Wellington’s annual revenue at $US226.89<br />
million ($AU328.33 million); it is known for its early<br />
use of social media-influencer marketing, with<br />
celebrities including Kendall and Kylie Jenner paid to<br />
promote the brand online.<br />
In 2017, the business was named as the “fastest<br />
growing private company in Europe”, according to<br />
the Inc. 5000 Index, which tracks the percentage<br />
increase in revenue over three years.
News<br />
In Brief<br />
New damage-free sanitising device<br />
available for jewellery retailers<br />
Tiffany & Co. sued over<br />
colour-change bracelet<br />
A Thai jewellery company, Jacob’s<br />
Jewelry Co. has filed suit against Tiffany<br />
& Co. for allegedly infringing on a<br />
jewellery design patent. It asserts that a<br />
bracelet from Tiffany’s 2016 Masterpieces<br />
Collection features a patented setting<br />
which makes the gemstones change<br />
colour when viewed from different<br />
angles. Tiffany & Co. has argued that the<br />
patent is invalid as other vintage jewellery<br />
features the same setting.<br />
Trial requested for<br />
Kardashian robbers<br />
French prosecutors have requested<br />
a trial for 12 suspects in the 2016<br />
robbery of celebrity Kim Kardashian<br />
West. The star was held at gunpoint in<br />
a Paris hotel and robbed of jewellery and<br />
watches valued at more than €9 million<br />
($AU14.6 million). Agence France-<br />
Presse reports that the supsects are ‘at<br />
liberty but under state supervision’.<br />
Chinese sales lead<br />
diamond recovery<br />
The latest financial report from<br />
Russian mining conglomerate Alrosa<br />
has noted signs of recovery in the Asian<br />
diamond market, led by China. Alexey<br />
Philippovskiy, chief financial officer<br />
Alrosa, said, “Today, we see diamond<br />
jewelry sales bouncing back in China<br />
and other Asian markets, which is<br />
expected to drive diamond demand up<br />
as soon as July [or] August.”<br />
De Beers supports removal<br />
of founder’s statue<br />
De Beers has leant its support to<br />
calls for a statue of its co-founder,<br />
Cecil Rhodes, to be removed from the<br />
University of Oxford. Rhodes, a former<br />
Prime Minister of the Cape Colony in<br />
what is now South Africa, expressed<br />
imperialist and white supremacist<br />
views during his lifetime. “While we<br />
can’t rewrite history, we can bear the<br />
responsibility of history to build a better<br />
legacy,” the company said in a statement.<br />
The Parify LED UV Steriliser uses ultraviolet light to quickly destroy viruses, pathogens and bacteria,<br />
including COVID-19.<br />
Duraflex Group Australia (DGA) is distributing<br />
a new device, capable of quickly sterilising<br />
jewellery and watches using ultraviolet rays,<br />
to retailers.<br />
The portable and lightweight Parify UV<br />
Steriliser, which was developed in the UK<br />
for use in hospitals, achieves up to a 99 per<br />
cent disinfection rate against RNA and DNA<br />
viruses, including COVID-19, as well as other<br />
pathogens and bacteria.<br />
”It’s a simple and affordable<br />
solution to many hygiene<br />
issues within the store<br />
environment, and ideal for the<br />
jewellery retail trade as we<br />
recover from COVID-19 and<br />
create the ‘new normal’”<br />
– Phil Edwards, Duraflex Group Australia<br />
It has been tested and validated by SGS, the<br />
world’s leading inspection, verification and<br />
certification company.<br />
Phil Edwards, managing director DGA, said,<br />
“During the challenges of COVID-19, we<br />
have been open to anything that can support<br />
our retail partners. This unit was introduced<br />
to DGA by a fellow distributor from the<br />
UK with whom we have been in contact<br />
for many years.<br />
“It’s a simple and affordable solution to many<br />
hygiene issues within the store environment,<br />
and ideal for the jewellery retail trade as we<br />
recover from COVID-19 and create the ‘new<br />
normal’ of hygiene standards – and meet the<br />
consumer’s expectation of hygiene.”<br />
The device, which is priced at $179, can fit<br />
most jewellery items and watches.<br />
The sterilising process takes between two<br />
and three minutes and there is no special<br />
equipment or training required to operate it.<br />
More than 6,000 units have been sold in the<br />
UK since its release two months ago.<br />
Edwards recommends two devices per store,<br />
“One in the front of the store – to be used<br />
directly with the customer so they can see<br />
your in-house safety precautions and hygiene<br />
standards – and the second in the back office<br />
or repairs area.”<br />
Edwards adds that from initial testing results,<br />
the device carries no risk of damage to<br />
jewellery, adding, “It is certainly considered<br />
a much safer and cleaner option than liquid<br />
sanitiser with a high alcohol content, which<br />
can damage delicate jewellery.”<br />
However, jewellers are advised to use<br />
alternative methods for stones that could<br />
change colour when exposed to ultraviolet<br />
light, such as unheated sapphires, kunzite,<br />
amethyst, and zircon.<br />
16 | <strong>June</strong> <strong>2020</strong>
Australian refiner receives prestigious<br />
international accreditation for gold bullion<br />
FEATURING THE<br />
DELICATE PINK TONE OF<br />
ARGYLE PINK DIAMONDS<br />
ABC Refinery, part of the Pallion group<br />
of companies, has been accredited by<br />
global markets company CME Group,<br />
which will allow ABC Bullion to be<br />
traded on the New York Commodity<br />
Exchange (COMEX) – one of the world’s<br />
largest gold exchanges.<br />
The refiner is also accredited by the<br />
London Bullion Market Association<br />
(LBMA) and the Shanghai Gold Exchange<br />
(SGE). It is the only Australian refinery to<br />
hold LBMA, SGE and CME accreditation.<br />
Phillip Cochineas, managing director<br />
ABC Refinery, said, “This accreditation<br />
ensures ABC Bullion bars will continue<br />
to be a preferred brand in the global<br />
marketplace and remain sought after for<br />
years to come.”<br />
“It is a positive reflection on the entire<br />
Pallion family, which has enabled<br />
us to achieve this high international<br />
standard and furthers our support of the<br />
Australian gold industry by increasing<br />
demand for Australian gold,” he added.<br />
Steven Kratsas, marketing manager<br />
Pallion, told <strong>Jeweller</strong>, “ABC is an<br />
internationally-recognised refinery.<br />
“This additional accreditation gives<br />
jewellers peace of mind that the<br />
precious metals that they send for<br />
refining are held to the standard of<br />
LBMA, SGE, and CME.<br />
“The gold that they receive back is<br />
recognised as being 99.99 per cent pure,<br />
and not only that, but it also meets the<br />
ethical sourcing standards that these<br />
international bodies demand.”<br />
ABC Refinery uses the acid-less<br />
separation (ALS) process as part of<br />
Pallion’s ‘green gold’ refining standard,<br />
which Kratsas says is part of the group’s<br />
broader goal to lead the industry in<br />
technology and innovation.<br />
As previously reported in <strong>Jeweller</strong>,<br />
Palloys – another Pallion company –<br />
became the first Australian jewellery<br />
manufacturer and wholesaler to be<br />
accredited by the Responsible <strong>Jeweller</strong>y<br />
Council (RJC) in 2019.<br />
Kratsas explained that the accreditation<br />
process took two years to complete and<br />
involved being externally audited on the<br />
social and environmental impacts of its<br />
various processes.<br />
“I believe still to this day, we are the only<br />
Australian wholesaler and manufacturer<br />
that is RJC-accredited. So that’s a big<br />
feather in our cap,” he said.<br />
ABC Refinery refines approximately 20<br />
per cent of the gold mined in Australia,<br />
in addition to jewellery scrap, and does<br />
not import gold for refining.<br />
Kratsas said that guaranteed Australian<br />
origin of gold could form a unique<br />
selling point for jewellers in the post-<br />
COVID-19 environment.<br />
It is a positive<br />
<br />
the entire<br />
Pallion family,<br />
which has<br />
enabled us<br />
to achieve<br />
this high<br />
international<br />
standard and<br />
furthers our<br />
support of the<br />
Australian<br />
gold industry<br />
Philip Cochineas,<br />
ABC Refinery<br />
SAMS GROUP<br />
AUSTRALIA<br />
E pink@samsgroup.com.au<br />
W samsgroup.com.au<br />
P 02 9290 2199
News<br />
Local opal supplier conducts<br />
webinar to more than 7,000<br />
FF Group liquidates Asian operations<br />
Damien Cody, director Cody Opal, recently hosted a webinar<br />
which was viewed by more than 7,400 retailers and wholesalers<br />
in China and was held by Shenzen’s Guild Institute of Gemology.<br />
A recent international webinar conducted by Cody Opals,<br />
in conjunction with the Guild Institute of Gemology<br />
(‘Guild’) in Shenzhen, had more than 7,400 participants.<br />
The webinar was hosted through the WeChat social<br />
media app and was virtually ‘attended’ by coloured<br />
gemstone retailers and wholesalers in China who had<br />
undertaken studies with Guild.<br />
Following the liquidation of FF Group (Asia), Folli Follie and Links of London Hong Kong stores have closed.<br />
Damien Cody, director Cody Opal, told <strong>Jeweller</strong>, “The<br />
webinar was a wonderful opportunity to promote the<br />
virtues of Australian opal to a largely new audience. The<br />
viewers were mostly graduate students of gemmology<br />
and the information they received will help them have<br />
more confidence when working with Australian opal.”<br />
For Cody Opal, the webinar represented an opportunity<br />
to inform and promote Australian opals rather than sell<br />
products directly. “This webinar forms part of a body<br />
of work we have been doing in China, which includes<br />
lectures, exhibitions, fashions shows and trade fairs,”<br />
Cody explained.<br />
Ruby Liu, president Guild, said, “The viewers were<br />
very interested in grading, treatments, and market<br />
conditions. The audience continued to ask hundreds of<br />
questions for almost two hours, with some 1,500 people<br />
remaining in the chat room.”<br />
“Due to the convenience of the internet, the audience<br />
can join the live broadcast from all over China. Guild has<br />
an excellent social media team of young people and they<br />
have built a strong following for Guild on WeChat. Most<br />
of the industry in China is younger than other markets,<br />
with a large percentage in their thirties,” Liu added.<br />
Cody noted that there were no challenges other<br />
than the need to translate and the time difference,<br />
adding, “To have a very large captive audience is<br />
extraordinary and the value for the Australian opal<br />
industry is immeasurable.”<br />
Australia supplies 95 per cent of the world’s precious<br />
opal, according to Geoscience Australia. Chinese<br />
demand for high-grade Australian opal surged in 2016,<br />
and a new Australian Opals Pavilion was established<br />
at last year’s Hong Kong International Diamond, Gem<br />
& Pearl Show.<br />
Greek jewellery and accessories company<br />
FF Group has appointed Deloitte China to<br />
liquidate its Asian operations, with stores<br />
in Hong Kong, Mainland China, Japan and<br />
Australia affected.<br />
As a result of the liquidation, five Folli Follie<br />
stores and seven Links of London locations in<br />
Hong Kong were closed on 9 <strong>June</strong>.<br />
Derek Lai, vice-chairman Deloitte China,<br />
said the closure would affect 60 employees,<br />
adding, “We have seen more retailers file for<br />
liquidation recently. We will handle Hong Kong<br />
first; for stores in other areas, we will see if<br />
there are any buyers.”<br />
FF Group operates three Folli Follie stores in<br />
Australia, located at DFO South Wharf and<br />
Chadstone in Melbourne, and the Queen<br />
Victoria Building in Sydney.<br />
At the time of publication, the Folli Follie<br />
Hong Kong and Taiwan websites remained<br />
operational, though websites for Japan and<br />
China displayed an ‘Under Construction’<br />
message. There is no dedicated website for<br />
Folli Follie Australia. The Links Of London<br />
International, Japan, China, and Hong Kong<br />
websites all displayed the same ‘Under<br />
Construction’ message; only its Greek website<br />
remained operational.<br />
FF Group, which was founded in Athens in<br />
1982, has been embroiled in controversy since<br />
2017, when an internal audit found revenue<br />
had been overstated by up to $US1 billion<br />
($AU1.45 billion) – largely concentrated in its<br />
Asian operations.<br />
Links of London UK, a subsidiary of FF<br />
Group, was placed into administration in<br />
October 2019 and was wound up in January<br />
<strong>2020</strong>. Links of London US filed for Chapter<br />
7 bankruptcy, which is roughly equivalent to<br />
liquidation under Australian law, in 2018.<br />
Greek authorities have since laid a range of<br />
charges against senior FF Group executives<br />
and board members, including fraud, money<br />
laundering, creating a criminal organisation,<br />
forgery, and manipulating stock market<br />
prices.<br />
Among those charged was founder Dimitris<br />
Koutsolioutsos, who resigned from the<br />
company in 2017. Koutsolioutsos retains a<br />
35 per cent stake in the business, while a<br />
further 16.4 per cent is controlled by Chinese<br />
conglomerate Fosun International, according<br />
to data from Refinitiv.<br />
According to a report in the South<br />
China Morning Post, FF Group recently<br />
underwent a €300 million ($AU492 million)<br />
debt restructuring and narrowly avoided<br />
bankruptcy in February.<br />
18 | February <strong>2020</strong>
SUPPORT SERVICES FOR<br />
INDEPENDENT JEWELLERS<br />
• Marketing • Sales Training • Business Planning<br />
• No joining fee<br />
• No agency fee<br />
• no security deposits<br />
no fees ever!<br />
FREE Recovery, Support Services and<br />
Strategies for successfully<br />
overcoming Covid-19<br />
- STAY 100% INDEPENDENT -<br />
the largest network with over 450 jewellery stores<br />
P: +61 2 9418 0000<br />
E: info@jgbs.com<br />
www.jgbs.com
News<br />
Chow Tai Fook joins<br />
international diamond<br />
organisation<br />
Rio Tinto faces further legal challenges in<br />
Canadian mining venture<br />
The World Federation of Diamond Bourses has extended<br />
membership to Chow Tai Fook, the world’s second-largest<br />
jewellery retailer by market value.<br />
Chow Tai Fook, the largest jewellery retailer in China<br />
and the world’s second largest by market value, has<br />
joined the World Federation of Diamond Bourses<br />
(WFDB) as part of a push to expand the diamond<br />
organisation’s membership.<br />
Albert Chan, an executive director Chow Tai Fook<br />
responsible for diamond and gemstone procurement,<br />
has also been appointed as an observer on the WFDB<br />
Executive Committee.<br />
“It is such an honour and a real privilege indeed to be<br />
invited into the WFDB family, with whom Chow Tai Fook<br />
shares identical core values,” Chan said.<br />
In addition to operating retail stores, the Hong Kongbased<br />
company also owns several jewellery brands,<br />
including the diamond-focused Hearts On Fire.<br />
The WFDB was founded in 1947 to enhance and protect<br />
the international diamond trade, largely through<br />
establishing trading practices for dealing in rough<br />
and polished stones and providing a unified body to<br />
represent international diamond bourses.<br />
However, Yoram Dvash, acting president WFDB and<br />
president of the Israel Diamond Exchange, said its<br />
mission has expanded to “lead and promote the world<br />
trade in diamonds and diamond jewellery”.<br />
“The diamond business is based on collaboration<br />
between many different parties. Our business depends<br />
on them and they depend on us,” Dvash explained.<br />
“I have invited leading companies and organisations in<br />
our industry to join the WFDB and many have already<br />
expressed their interest in joining. I have no doubt<br />
that more will come aboard. Now more than ever we<br />
must join forces. That’s the only way we will be able to<br />
succeed,” he added.<br />
The WFDB recently launched a digital B2B diamond<br />
trading platform, Get Diamonds, which at the time of<br />
publication had more than 3,800 registered suppliers<br />
and product listings valued at $US5.6 billion. More than<br />
26,000 buyers have registered with the platform, the<br />
majority of which are retailers.<br />
The Diavik Diamond Mine, located on Lac de Gras in Canada’s Northwest Territories, is the subject of a<br />
legal dispute between Dominion Diamond Mines and Rio Tinto.<br />
Dominion Diamond Mines (Dominion) has<br />
filed a civil claim against a subsidiary of<br />
Rio Tinto, alleging it has breached the terms<br />
of a joint-venture agreement relating to<br />
the Diavik Diamond Mine in Canada’s<br />
Northwest Territories.<br />
In documents filed with the Supreme Court<br />
of British Columbia on 16 <strong>June</strong>, Dominion<br />
claims DDM – which has a 60 per cent stake<br />
in the mine and is wholly responsible for<br />
its operation – has mismanaged the site,<br />
withheld information, and pursued its own<br />
interests to the detriment of Dominion and<br />
the joint-venture itself.<br />
”[DDM]’s operation of the<br />
Diavik Mine is significantly over<br />
budget, and production has<br />
failed to meet targets. [DDM]’s<br />
poor performance preceded<br />
the impact of COVID-19 and has<br />
continued to deteriorate”<br />
– Dominion Diamond Mines civil claim<br />
“[DDM]’s operation of the Diavik Mine is<br />
significantly over budget, and production<br />
has failed to meet targets. [DDM]’s poor<br />
performance preceded the impact of<br />
COVID-19 and has continued to deteriorate,”<br />
the claim states, adding that costs<br />
increased 7 per cent in 2019, while total<br />
carats recovered were 8.5 per cent lower<br />
than projected.<br />
In the first quarter of <strong>2020</strong>, Dominion<br />
alleges costs increased by more than 19<br />
per cent above projections, with recovered<br />
carats 13.6 per cent lower than forecast.<br />
Additionally, it claims DDM has “continually<br />
demanded that Dominion satisfy<br />
increasingly large cash calls” – totalling<br />
$CAD101.9 million in <strong>2020</strong> – compounding<br />
the company’s fragile financial position.<br />
“Without Dominion being able to generate<br />
revenues due to COVID-19 related impacts<br />
on the diamond market and Dominion’s<br />
business operations, the [DDM] cash call<br />
payments have drained Dominion’s cash<br />
reserves and contributed to Dominion’s<br />
liquidity crisis. The continued cash calls<br />
will also negatively impact Dominion’s<br />
restructuring efforts,” the claim states.<br />
On April 22, Dominion was granted<br />
initial debtor protection under Canada’s<br />
Companies Creditors Arrangement Act<br />
(CCAA), a form of insolvency that allows<br />
businesses to restructure their financial<br />
affairs and avoid liquidation. It is roughly<br />
equivalent to voluntary administration under<br />
Australian law, though it only applies to<br />
insolvent companies with debts in excess<br />
of $CAD5 million.<br />
In its proceedings against its joint-venture<br />
partner, Dominion is seeking damages,<br />
interest and legal costs, as well as a<br />
declaration confirming DDM has conducted<br />
operations in breach of or inconsistent with<br />
the joint-venture agreement.<br />
In response to the Dominion filing, a Rio<br />
Tinto spokesperson told <strong>Jeweller</strong>, “Rio<br />
Tinto has successfully managed the<br />
Diavik Diamond Mine for more than 15<br />
years – for the benefit of its owners, the<br />
Northwest Territories, local communities,<br />
governments, employees, and suppliers.<br />
CONTINUED ON PAGE 24<br />
20 | March <strong>2020</strong>
While the Coronavirus has had a devastating impact<br />
on the industry, we have been able to focus on<br />
strengthening our internal infrastructure to provide you<br />
with better service and a greater business advantage.<br />
B 2 B B U S I N E S S P O R TA L<br />
You can check new arrivals, availability of<br />
stock, delivery status and place orders in<br />
one easy place.<br />
O N L I N E I NTE G R AT I O N<br />
Upload hundreds of products to your<br />
website with one click. No more manually<br />
entered items.<br />
D R O P S HIP P I N G<br />
Double your stock holding without any of<br />
the costs of carrying the stock. We pick, we<br />
pack and we deliver for you.<br />
V I R T U A L M E E T I N G S<br />
Virtual meetings allow us to meet you safely<br />
wih more samples on hand. Plus, our sales<br />
staff don’t take up space in your store.<br />
B R A N D U P A T E S<br />
MASER ATI<br />
G EORG INI<br />
OUI & M E<br />
M ORELL ATO<br />
MAU RICE L ACROIX<br />
This January we<br />
launched the Maserati<br />
watch range. This<br />
premium Italian Lifestyle<br />
Collection is the epitome<br />
of quality and style.<br />
Since taking over<br />
Georgini in April last<br />
year, Georgini has<br />
grown by an incredible<br />
67% in the quarter<br />
leading up to Christmas.<br />
We are set to launch<br />
popular French brand<br />
‘Oui & Me’, a well-priced,<br />
feminine watche brand<br />
with floral and pastel<br />
motifs. Available August.<br />
Next month, we are<br />
relaunching Morellato<br />
Watch Straps, including<br />
the ever popular ‘Easy<br />
Click’ and ‘Green’<br />
Collections.<br />
We re-launched the premium<br />
Swiss brand Maurice Lacroix<br />
into Australia and New<br />
Zealand in late 2019. Since<br />
this time, the new Aikon<br />
Sports Automatics have<br />
proven to be best sellers.<br />
WWW.W E S T E N D C O LLE C T I O N . C O M . A U
Lab-grown diamond companies in<br />
conflict over patents<br />
A patent dispute is unfolding between a number of lab-grown diamond manufacturers.<br />
A US judge has ruled that a lawsuit<br />
between lab-grown diamond<br />
companies can proceed, finding that<br />
there are valid grounds for litigation<br />
over methods of manufacturing and<br />
treating the stones.<br />
WD Lab Grown Diamonds, alongside<br />
scientific research organisation the<br />
Carnegie Institution of Washington,<br />
initially filed suit against six other<br />
lab-grown diamond companies in<br />
January this year.<br />
It was alleged the companies had<br />
infringed two patents: one related<br />
to the chemical vapour deposition<br />
(CVD) method of manufacturing<br />
diamonds, and the other to a type<br />
of high-pressure, high-temperature<br />
(HPHT) post-growth treatment.<br />
The defendants were named as <strong>II</strong>a<br />
Technologies and its sister company<br />
Pure Grown Diamonds, and Fenix<br />
Diamonds – which manufactures<br />
lab-created diamonds for Michael<br />
Hill International – and its subsidiary<br />
Mahendra Brothers.<br />
Similar proceedings against ALTR<br />
– which is distributed by JC Jewels<br />
& Reine Jewels in Australia – and<br />
its parent company, RA Riam, were<br />
dropped in March.<br />
At the time of the filing, Sue<br />
Rechner, CEO WD Lab Grown<br />
Diamonds, told JCK Online, “The<br />
decision to start litigation is not<br />
one any company takes lightly. It’s<br />
typically a last resort. We don’t want<br />
to go into litigation, but if we must,<br />
we must. We are adamant that our<br />
intellectual property be respected.”<br />
Pure Grown Diamonds, Fenix<br />
Diamonds and <strong>II</strong>a Technologies<br />
filed motions to dismiss on<br />
various grounds, including that<br />
the techniques were unpatentable<br />
“because they are natural<br />
phenomena” and that the evidence<br />
of infringement was insufficient as<br />
their methods of manufacturing<br />
are not publicly disclosed.<br />
However, in a judgement handed<br />
down last month, Judge Jed Rakoff<br />
ruled that the case could proceed,<br />
stating that, “Although it<br />
is sometimes challenging for courts<br />
to distinguish between laws of<br />
nature and applications thereof,<br />
the facts here clearly fall into the<br />
latter category.<br />
“The lab-grown diamonds at issue<br />
here are more like the synthetic<br />
DNA; both are facsimiles of natural<br />
substances, created from the<br />
same atomic building blocks but<br />
assembled through processes that<br />
do not occur in nature.”<br />
He added that it was “at least<br />
plausible” that the companies had<br />
infringed the patents “based on<br />
the allegations that defendants’<br />
diamonds could not be of the type<br />
and quality claimed unless produced<br />
through infringing methods”.<br />
In February, the High Court of<br />
Singapore found <strong>II</strong>a Technologies<br />
had infringed a patent owned by De<br />
Beers’ Element Six, also relating<br />
to CVD. Element Six had launched<br />
legal proceedings against <strong>II</strong>a<br />
Technologies in 2016.<br />
LED UVC Steriliser to destroy<br />
germs, viruses and bacteria.<br />
Use on phones, pens,<br />
jewellery & more.<br />
LED UVC Steriliser to destroy<br />
germs, LED UVC viruses Steriliser and to bacteria. destroy<br />
germs, Use on viruses phones, and pens, bacteria.<br />
Use jewellery on phones, & more. pens,<br />
jewellery & more.<br />
$179+ GST GST<br />
$179+ GST<br />
$179+ GST<br />
Sanitising cycle only takes<br />
A<br />
3<br />
Sanitising<br />
minutes, and<br />
cycle<br />
an<br />
only<br />
audible<br />
takes<br />
3 minutes, voice tells and you an when audible<br />
A Sanitising cycle only takes<br />
A Sanitising cycle only takes<br />
sanitisation 3 voice minutes, tells and you is an complete. when audible<br />
sanitisation 3 minutes, voice tells and you is an complete.<br />
when audible<br />
sanitisation<br />
voice tells<br />
is<br />
you<br />
complete.<br />
when<br />
sanitisation is complete.<br />
Contact (02) 9417 0177<br />
Contact (02) 9417 0177<br />
Contact (02) 9417 0177<br />
Contact (02) 9417 0177
News<br />
Buying groups confirmed for Sydney <strong>Jeweller</strong>y Fair as planning gathers pace<br />
CONTINUED FROM PAGE 12<br />
to promote and market the event this year.”<br />
He added, “In these tough times in this<br />
industry, we are all keen to ensure that there<br />
is a good return on investment on all expended<br />
promotions and this event is no exception. We<br />
believe it remains a relevant attraction for our<br />
membership.”<br />
Responding to the statement from Leading<br />
Edge Group <strong>Jeweller</strong>s, Fitz-Roy said, “We’ve<br />
made it very clear to Leading Edge that we will<br />
comply with all state and federal government<br />
health requirements – the health and safety of<br />
our clients and the attendees of the fair is our<br />
first priority. As far as Mr Lane’s comment about<br />
the marketing of the fair, we have successfully<br />
run the event for nearly 30 years, so I find his<br />
comment misguided.”<br />
He added, “Regardless, I thank the two oldest<br />
buying groups and our newest group for having a<br />
vision and concern for the future of the industry<br />
and understand the need, especially this year, for<br />
the industry to stand united with no expectations<br />
other than to reconnect and celebrate.”<br />
However, he emphasised that LEGJ would still<br />
be welcome to participate: “Subject to space<br />
availability, the door is open for Leading Edge to<br />
join the other three buying groups in presenting<br />
a united front at what will likely be the first major<br />
jewellery industry event of the year.”<br />
For the first time, the IJWF will be held in<br />
conjunction with the Spring Gift & Lifestyle fair,<br />
allowing retailers to visit two shows at the same<br />
time and at the same venue.<br />
IJC’s Zarb called the fair a “perfect opportunity”<br />
for retailers looking to top up ranges and find new<br />
stock for the Christmas season: “I think the entire<br />
industry will look forward to this year’s fair, as it<br />
genuinely will be the first time for many of us to<br />
view new products ‘in the flesh’.”<br />
Pocklington advised that Nationwide would<br />
send detailed programs for members in late<br />
July: “There’ll be a strong focus on supporting<br />
members with business and marketing strategies<br />
for the important trading months ahead.”<br />
Meanwhile, Fitz-Roy said that a Retail Summit<br />
focusing on strategies and education would be<br />
a key feature of the show this year, focusing on<br />
recovering from the COVID-19 crisis.<br />
“The September fair will be an ideal lead-in to the<br />
busiest retail sales time of the year and we aim to<br />
arm jewellers with fresh and new ideas to assist<br />
their businesses to bounce back.<br />
“We have also completed a new program called<br />
Expertise Safety Matters which is our plan to<br />
ensure we do everything we can to cater for the<br />
safety and wellbeing of our exhibitors and visitors<br />
and whilst we come out of COVID-19 restrictions,”<br />
he explained.<br />
In addition to increased safety and hygiene<br />
measures, Fitz-Roy noted that the pandemic may<br />
result in fewer international suppliers attending<br />
the show – presenting an opportunity for local<br />
suppliers to more closely connect with retailers.<br />
He concluded, “We understand and appreciate<br />
what small businesses have gone through over<br />
the last four months given we are also a small<br />
family business. And equally we also know that<br />
we have to look to the future not to the past and<br />
together we must plan what the ‘new normal’ will<br />
be like.”<br />
Bail hearings held for defendants in<br />
Melbourne Gold Company robbery<br />
CONTINUED FROM PAGE 12<br />
Dunn said Kachami, who was previously employed<br />
in the accommodation sector, was motivated by<br />
financial pressure due to the COVID-19 pandemic<br />
and made a “very silly decision”.<br />
However, prosecutor Andrew McKenry said, “This<br />
was a crime committed to make money – and to<br />
make a lot of money.”<br />
“Acting for Kachami at the hearing,<br />
barrister Philip Dunn QC characterised<br />
the robbery as a ‘comedy of errors’<br />
and said his client ‘went along with<br />
what he thought was a no-risk plan’”<br />
Kachami applied for bail on the grounds of needing<br />
to care for his three young children and in order to<br />
receive treatment for diabetes.<br />
The Age reported that Kachami’s mother also<br />
offered a $250,000 surety on the Dollar property<br />
where the stolen goods were found.<br />
Acting for Ede, barrister Theo Alexander argued<br />
for his client to be released on bail to care for his<br />
wife and children and suggested that rather than<br />
planning the robbery with Kachami, simply carried<br />
a “suspicion” that the person robbing him was his<br />
friend, the Australian Associated Press reported.<br />
Prosecutor McKenry opposed the bail application<br />
due to the seriousness of the crime, arguing that<br />
Ede could also access more than $300,000 in<br />
missing gold, jewellery and cash that has not yet<br />
been located by police.<br />
Magistrate Ross Maxted is expected to hand<br />
down a decision on both men’s applications later<br />
this month.<br />
Rio Tinto faces further legal challenges<br />
in Canadian mining venture<br />
CONTINUED FROM PAGE 20<br />
“We regret Dominion filing what are<br />
baseless claims against us and will be<br />
defending ourselves in court vigorously.<br />
“[DDM] has at all times acted<br />
appropriately. We remain focused on<br />
managing the mine safely just as we<br />
continue to protect [DDM]’s interests in<br />
Dominion’s insolvency proceedings and<br />
the jobs of the more than 1,120 people<br />
who work at Diavik.”<br />
An insolvency hearing for Dominion is<br />
due to take place this week.<br />
Rio Tinto is also embroiled in a legal<br />
battle with Star Diamond Corp, the<br />
junior partner in its other Canadian<br />
mining venture, the Star-Orion South<br />
project.<br />
“We regret Dominion filing<br />
what are baseless claims<br />
against us and will be<br />
defending ourselves in court<br />
vigorously. [DDM] has at all<br />
times acted appropriately”<br />
– Rio Tinto spokesperson<br />
In March, Star Diamond Corp filed<br />
documents in a Canadian court<br />
alleging Rio Tinto had engaged in “bad<br />
faith predatory practices”, including<br />
vastly overspending on exploration<br />
costs and failing to share results of<br />
drill sampling.<br />
In March, Star<br />
Diamond Corp<br />
<br />
in a Canadian<br />
court alleging<br />
Rio Tinto had<br />
engaged in “bad<br />
faith predatory<br />
practices”<br />
including vastly<br />
overspending on<br />
exploration costs<br />
and failing to<br />
share results of<br />
drill sampling<br />
Rio Tinto formally denied the allegations as<br />
“false, baseless and made in bad faith” in its own<br />
court documents, filed in early April.<br />
The Court of Queen’s Bench for Saskatchewan is<br />
scheduled to hear the case on 29–30 <strong>June</strong>.<br />
Rio Tinto’s only other diamond mining venture,<br />
the Argyle Mine in Western Australia, is due to<br />
close at the end of <strong>2020</strong>.<br />
24 | February <strong>2020</strong>
Created by members, r members.<br />
SHOWCASE<br />
JEWELLERS<br />
WE’RE HERE FOR YOU<br />
Showcase <strong>Jeweller</strong>s was established in 1981 by a group<br />
of independent <strong>Jeweller</strong>s who came together to<br />
improve their buying power in the industry.<br />
Today, Showcase <strong>Jeweller</strong>s is a powerhouse of resources<br />
essential for the independent jewellery retailer, especially in<br />
the area of technology.<br />
Our members have so many resources at their fıngertips to<br />
support the running of their business:<br />
• Training<br />
• Marketing<br />
• Online solutions<br />
• Human resources<br />
• Central billing<br />
• Financial planning<br />
• Exclusive in-house<br />
brands<br />
• Conferences<br />
• In-house loose diamond<br />
inventory, both mined<br />
and lab grown.<br />
• Stock ranging<br />
• Extensive supplier<br />
base at both local and<br />
international level<br />
including the latest<br />
fashion brands.<br />
Alongside these resources, you have the support of an<br />
experienced and engaged head offıce team, as well as<br />
your fellow members. The Showcase <strong>Jeweller</strong>s Group<br />
provides a community and network in which your business<br />
is supported and will positively thrive. We are enormously<br />
proud of the of our community and hope to welcome<br />
you into our family soon.<br />
TOP SIX BENEFITS<br />
NO JOINING FEES AT ALL<br />
FREE WEBSITE SET UP<br />
Your own website with ownership rights.<br />
We will move or create your website on<br />
your behalf, at no charge.<br />
THE BEST SUPPLIER DISCOUNTS<br />
Our supplier discounts go directly to our<br />
members.<br />
EXPERIENCED HEAD OFFICE STAFF<br />
Here to support you every step of the way.<br />
IN HOUSE MARKETING AGENCY<br />
Access to marketing resources,<br />
campaigns, digital assets, graphic design<br />
and more.<br />
EXTENSIVE RANGE OF LOOSE<br />
DIAMONDS<br />
In-house loose diamond inventory, both<br />
mined and lab grown at attractive prices.<br />
Join the Showcase Family<br />
Email: enquiries@jimaco.com | Phone: (02) 8566 1800 | Visit: www.showcasejewellers.com.au
Ready<br />
Get<br />
Polish your gemstone<br />
knowledge online<br />
From lapis lazuli and coloured diamonds to<br />
synthetic moissanite and zebra rock, brush up<br />
on your gemstone knowledge in the downtime.<br />
The GAA has over 14 years of gemmology<br />
articles freely available to read online<br />
on <strong>Jeweller</strong>magazine.com.<br />
Learn About Gemstones with<br />
the GAA on <strong>Jeweller</strong>magazine.com<br />
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY<br />
Passionately educating the industry, gem enthusiasts<br />
and consumers about gemstones<br />
learn@gem.org.au | 1300 436 338 | www.gem.org.au
REVIEW<br />
Gems<br />
Ruby: the true red<br />
Desire for ruby today is as great as ever.<br />
With fluctuating quality and supply, and a<br />
high demand for stones over one carat,<br />
this blazing beauty can demand the highest<br />
price per carat of any coloured gemstone.<br />
Once thought to have held the power<br />
of life due to its likeness in colour to<br />
blood, rubies are still a highly coveted<br />
gemstone, signifying wealth, success,<br />
love and passion.<br />
Ruby is the red variety of corundum, a<br />
crystalline form of aluminium oxide.<br />
Colourless in its purest state, corundum<br />
is ‘allochromatic’ – meaning it relies on<br />
trace impurities to influence its colour.<br />
For ruby, chromic oxide replaces some of<br />
the alumina in the crystal structure.<br />
The amount of chromium present<br />
determines the strength of ruby’s red,<br />
while the presence of other elements,<br />
such as iron, influence tone and hue.<br />
Other than the orange-red through to<br />
strong purplish red stones, which are<br />
called ruby, gem quality corundum is<br />
known as sapphire, prefixed by its colour.<br />
Paler reds or pinks are thus appropriately<br />
named pink sapphire.<br />
The finest, rarest quality rich-red<br />
Burmese rubies come from the<br />
Mogok (old source) or Mong Hsu (new<br />
source) mines.<br />
These chromium-rich crystals form in a<br />
white marble and because they contain<br />
no iron, the result is vivid pinky-red<br />
stones that can show fluorescence in<br />
sunlight, adding to their intensity and<br />
value.<br />
In comparison, the rubies of Cambodia<br />
and Thailand originate in iron-rich basalt<br />
and are typically darker.<br />
These stones have an orange-red<br />
colouring because the iron impurities<br />
diminish the vividness caused by<br />
chromium.<br />
In the past eight years, Mozambique<br />
– a location of recent ruby discoveries<br />
– have become a dominant source of<br />
commercial quantities of varying quality<br />
and colour.<br />
African supplies have traditionally<br />
produced darker stones, however the<br />
new mines produce colours that bridge<br />
the gap between those from the classic<br />
sources of Myanmar (low iron, strong<br />
fluorescence) and Thailand/Cambodia<br />
(high iron, low fluorescence) suiting a<br />
range of different markets.<br />
A ruby’s value is determined not only<br />
by colour, but its clarity, cut and carat<br />
Ruby<br />
From Latin ruber,<br />
meaning ‘red’.<br />
Colour: Red<br />
Found in: Thailand,<br />
Myanmar (Burma),<br />
Cambodia, India,<br />
Afghanistan, Brazil,<br />
Namibia, Madagascar,<br />
Pakistan, Vietnam<br />
Mohs Hardness: 9<br />
Class: Corundum<br />
Lustre: Vitreous,<br />
adamantine<br />
Formula: AI 2<br />
O 3<br />
size. Consumers must be aware of the<br />
multitude of treatments and synthetics.<br />
Heat treatment is common practice as it<br />
parallels what can happen in nature.<br />
The heating process removes silk<br />
inclusions, enhancing clarity and richness<br />
of colour.<br />
Although it does affect the price, if heat<br />
treatment does not add anything artificial<br />
to the stone, it is an accepted treatment<br />
amongst gemmologists.<br />
In more recent years glass has been<br />
used to fill fractures in rubies, but while<br />
the stone is made more attractive, the<br />
glass fill can dramatically decrease its<br />
durability.<br />
Sometimes called ‘composite rubies’<br />
– but more accurately ‘glass fracturefilled<br />
natural ruby’ – the nature of such<br />
stones should be explained and priced<br />
accordingly.<br />
Interpretation of colour may be subjective,<br />
but there is no denying the beauty of an<br />
intense red ruby.<br />
The dominance of treated stones on the<br />
market however, means that consumers<br />
should trust their local Gemmologist or<br />
Registered NCJV valuer to ascertain their<br />
true identity.
FORECAST FEATURE<br />
Post-Pandemic Retail<br />
DEFINING THE<br />
‘NEXT NORMAL’<br />
RETAIL IN THE<br />
POST-COVID<br />
ENVIRONMENT<br />
With the retail landscape irrevocably<br />
changed by the COVID-19 pandemic,<br />
COLIN POCKLINGTON reveals how<br />
the science of retail can assist in<br />
overcoming the upcoming challenges.<br />
28 | <strong>June</strong> <strong>2020</strong>
W<br />
ith the Australian economy starting on<br />
the long road to recovery, we need to<br />
identify the retail strategies required<br />
to ensure that our jewellery businesses will not<br />
only survive but prosper.<br />
In order to develop appropriate strategies, we need to have<br />
a comprehensive understanding of how the economy,<br />
consumer trends, and other factors impact the jewellery<br />
industry.<br />
Prior to COVID-19, retailing in general – and in particular<br />
specialty retailing – experienced a decade of difficult trading<br />
conditions, which I outlined in a 2017 article, ‘Prospering in<br />
the new normal’.<br />
The key issues identified then are still having an impact, and<br />
should be considered alongside the new challenges caused<br />
by COVID-19.<br />
Revisiting the trends in time<br />
Following a sustained period of industry growth from 2002–<br />
2010, along with a substantial increase in diamond sales,<br />
specialty retailing worldwide was subject to many challenges<br />
following the 2009 Global Financial Crisis (GFC).<br />
These structural issues are:<br />
by COLIN POCKLINGTON<br />
• Internationally, gross domestic product (GDP) growth<br />
has halved since the GFC – This is a result<br />
of lower population growth, the retirement of<br />
Baby Boomers, a decline in labour force participation and<br />
the fact that technology and innovation have primarily been<br />
used to steal market share, rather than drive an increase<br />
in jobs – thus failing to add wealth to economies.<br />
• In 2017, Australia had the second-highest ratio of<br />
household debt to GDP in the G20 group of countries – In<br />
2019, we still held second place behind Switzerland, with a<br />
ratio of 120 per cent.<br />
• In 2017 the unemployment rate in Australia was<br />
5.7 per cent, and there was a significant rate of<br />
underemployment – Underemployment refers to people<br />
with part-time or casual jobs who are not rostered a<br />
sufficient number of hours in a week to cover their living<br />
costs.<br />
Figures from the Australian Bureau of Statistics (ABS)<br />
show that in May 2019 unemployment was 5.1 per cent and<br />
8.5 per cent of the population was underemployed (they<br />
wanted more working hours). However, many economists<br />
believe that a large proportion of underemployment is not<br />
measured.<br />
• Interest rates have been low for many years – There is<br />
widespread concern among economic experts as to what<br />
will happen when interest rates rise, which they inevitably<br />
will at some point.<br />
BY THE NUMBERS<br />
Retail Insights<br />
$27.5bn<br />
value of online<br />
retail sales in<br />
Australia in 2018<br />
Source: Australia Post<br />
$2.98bn<br />
Annual Australian<br />
<strong>Jeweller</strong>y & Watch<br />
Sales year ended<br />
<strong>June</strong> 2019<br />
Source: See Chart 1, Pg 30<br />
80%<br />
proportion<br />
of consumer<br />
income spent on<br />
essentials<br />
Source: ABS Report -<br />
#5206.0 (2015/16)<br />
300<br />
approximate<br />
number of<br />
Australian<br />
jewellery stores<br />
closed, 2015 - 2019<br />
Source: Nationwide’s<br />
Retail Database<br />
2 - 2.5%<br />
annual wage<br />
growth for<br />
Australian<br />
workers,<br />
2017–2019<br />
Source: Reserve Bank<br />
of Australia<br />
An interest rate increase from 4 per cent to 5 per cent<br />
might not seem much – it’s only 1 per cent – but that<br />
means a 10 per cent increase in repayments to the bank<br />
each month.<br />
• Australian online sales in the year ended 2015/2016<br />
stood at approximately $20 billion, or 6.7 per cent of<br />
total retail sales – In the calendar year to December<br />
2019, online retail sales had increased to 7.9 per cent of<br />
total sales. An analysis by Australia Post estimated the<br />
value of online retail sales at $27.5 billion in 2018.<br />
So, while 92 per cent of sales are from bricks-and-mortar<br />
stores, that 7.9 per cent figure represents a lot of trips<br />
that people aren’t making to a shopping centre.<br />
This is one of the reasons why shopping centre foot traffic<br />
has been falling for the past few years and why many<br />
jewellery stores have been able to renew leases at equal –<br />
or even lower – rental rates.<br />
• The world economy is currently going through<br />
another ‘revolution’ – We’ve had the agricultural<br />
revolution, the first industrial revolution, the<br />
digital revolution and now we have the technological<br />
revolution. This is affecting or disrupting almost every<br />
industry and there are more changes in the years ahead,<br />
such as artificial intelligence.<br />
• Australia’s national accounts indicate that roughly 80<br />
per cent of the average spending by population is on<br />
essentials – Consumers are spending the vast majority<br />
of their income on rent, debt repayments, food, health,<br />
electricity, and so on. That leaves about 20 per cent for<br />
‘non-essentials’ such as jewellery.<br />
In my 2017 article, I noted that there had been negative<br />
wage growth in real terms since 2012. So, at the same<br />
time the cost of ‘essentials’ increased, real income for<br />
the average person descreased by about 1-2 per cent.<br />
Therefore, the amount of money spent – or available to<br />
spend – on non-essentials decreased by about 15 per<br />
cent.<br />
Since 2017, wage growth has remained flat at 2–2.5 per<br />
cent, roughly in line with inflation.<br />
• In addition to pressures in the local economy, the<br />
consumer is also stressed by international events<br />
– World unrest and globalisation had an impact on<br />
consumer attitudes in the past; now COVID-19 has added<br />
to this stress.<br />
In the 2017 article, I also listed five ‘megatrends’ driving<br />
retail disruption.<br />
The first is rapid urbanisation – 60 per cent of the world’s<br />
population will live in one of 60 megacities around the world<br />
by 2025, including Sydney, Melbourne and Brisbane.<br />
At the same time, there will be 80 billion communication<br />
devices in the world and the average person will own five,<br />
<strong>June</strong> <strong>2020</strong> | 29
FORECAST FEATURE | Post-Pandemic Retail<br />
INDUSTRY<br />
PREDICTIONS<br />
Set to Rise<br />
Local<br />
support<br />
which means that shopping will be<br />
further digitally driven than it is now.<br />
Resource scarcity is another megatrend,<br />
where energy prices will continue to<br />
increase.<br />
There will be a shift in economic power<br />
as India will be the next country to see its<br />
economy grow rapidly, with the thirdlargest<br />
GDP. Asia and Africa will also<br />
expand quickly.<br />
A demographic change is at play as well.<br />
People will live longer and have fewer<br />
children.<br />
A few years ago, there were four workers<br />
in Australia for each retiree but by 2050<br />
it is predicted that the ratio will be 1.5<br />
workers per retiree.<br />
“Since 2012, there has been<br />
negative wage growth in real<br />
terms. So, at the same time the<br />
cost of ‘essentials’ increased,<br />
real income for the average<br />
person descreased by about<br />
1-2 per cent. Therefore, the<br />
amount of money spent – or<br />
available to spend – on nonessentials<br />
decreased by about<br />
15 per cent.”<br />
Then we come to the retail disruptors.<br />
Large e-commerce businesses that<br />
have entered Australia, like Amazon and<br />
Alibaba, are agile, innovative competitors.<br />
They have found clever ways to gain<br />
market share and the jewellery industry<br />
has to do the same – it has to be<br />
smarter.<br />
The market changes and disruptors have<br />
affected the average fine jewellery store<br />
over the past four years, contributing to<br />
the closure of approximately 300 stores<br />
– or 10 per cent of all jewellers.<br />
Difficult trading over the past ten years<br />
has resulted in some early retirements<br />
– with jewellers deciding to close the<br />
store rather than risk renewing a long<br />
term lease – or in some cases because<br />
of insolvency.<br />
Looking into the crystal ball<br />
By examining the previous trends, the<br />
future of retail can be predicted to some<br />
degree. For example, in 2017 around<br />
35 per cent of all online purchases by<br />
Australian consumers were for goods<br />
from overseas websites.<br />
Globally, it is likely there will be even<br />
more cross-border business-toconsumer<br />
commerce – although<br />
COVID-19 will dampen international<br />
transactions for a period of time, due to<br />
worsening economic conditions and less<br />
international transport available.<br />
In addition, there are already signs that<br />
many Australians are endeavoring to<br />
support local businesses and Australianmade<br />
products, where possible. This<br />
may present marketing opportunities<br />
for many retailers to promote local<br />
manufacturing and sourcing of raw<br />
materials.<br />
Several years ago, the standard<br />
model involved manufacturers in Asia<br />
employing an agent to work with a local<br />
importer, wholesaler and retailer in<br />
order to deliver the final product to<br />
a consumer.<br />
That model is now changing, with more<br />
producers finding ways to sell directly to<br />
consumers and ‘cut out the middlemen’.<br />
The other important trend for retailers to<br />
consider in the future is social proofing<br />
– that is, social media reviews and<br />
third-party ratings that influence buying<br />
decisions. This is more powerful than<br />
traditional mainstream media, which<br />
reaches less than half of the people it did<br />
10 or 15 years ago.<br />
Finally, the growth in consumer<br />
demand for custom designed jewellery<br />
will continue and provide substantial<br />
turnover for bricks-and-mortar stores<br />
as consumers search for something<br />
‘different’.<br />
There is still a huge opportunity<br />
for further growth in custom sales,<br />
particularly as bricks-and-mortar store<br />
sales are more profitable than online<br />
sales.<br />
International<br />
e-commerce has<br />
been dampened;<br />
consumers want to<br />
buy Australian<br />
Direct sales<br />
Manufacturers<br />
are moving into<br />
direct-to-consumer<br />
sales, cutting out<br />
wholesale and retail<br />
Social proof<br />
& reviews<br />
Consumer<br />
purchasing is<br />
increasingly guided<br />
by third-party<br />
ratings and social<br />
media reviews<br />
Custom<br />
design<br />
Demand for<br />
custom-designed<br />
jewellery remains<br />
a substantial<br />
opportunity for<br />
retailers<br />
That is because, on average, most products<br />
sold online are at a lower price point than<br />
those sold in-store as the vast majority of<br />
consumers buying online are searching for the<br />
lowest price available.<br />
It’s not good business sense to transfer a<br />
profitable sale from a bricks-and-mortar store<br />
to an unprofitable, or less profitable, sale in an<br />
online environment.<br />
So now we come to <strong>2020</strong> and beyond and the<br />
impact of COVID-19.<br />
As the various government health restrictions<br />
ease, we need to find ways to restore trading<br />
to pre COVID-19 levels, despite increased<br />
unemployment, underemployment and<br />
considerable consumer concern.<br />
Real time, real-talk solutions<br />
A webinar series created for Nationwide<br />
members focused on key retail strategies that<br />
address all of the changes over the past 10<br />
years, as well as disruptors, and COVID-19.<br />
The webinars focused on three topics:<br />
preparation, maximising stock performance,<br />
and marketing.<br />
“The market changes and<br />
disruptors have affected the<br />
average fine jewellery store over<br />
the past four years, contributing<br />
to the closure of approximately<br />
300 stores – or 10 per cent of all<br />
jewellers”<br />
In the preparation topic, we outline the<br />
financial support schemes that are available<br />
from the federal and state governments.<br />
It is important that all businesses take<br />
advantage of everything available, including<br />
rent relief under the Mandatory National<br />
Commercial Leasing Code (“Code”); however,<br />
the legislation varies by state, which makes<br />
negotiating the best outcome difficult in some<br />
circumstances.<br />
The next step is to ensure that businesses<br />
have a sound financial structure going forward,<br />
based on a realistic sales forecast.<br />
The three key elements are: gross profit<br />
percentage, rent and labour costs – the<br />
latter two being the major expenses in retail<br />
30 | <strong>June</strong> <strong>2020</strong>
Be Reconnected<br />
UNITED | CONNECTED | PROUD | RESILIENT<br />
INTERNATIONAL<br />
J E W ELLERY & WATCH FAIR<br />
SEPTEMBER 12 – 14, <strong>2020</strong><br />
ICC Sydney Exhibition Centre, Darling Harbour<br />
jewelleryfair.com.au<br />
Organised by
FORECAST FEATURE | Post-Pandemic Retail<br />
36 years of Australian <strong>Jeweller</strong>y & Watch Sales<br />
YEAR ENDED JUNE (1983 - 2019)<br />
$3.4 billion<br />
2016<br />
$2.98 billion<br />
2019<br />
Chart 1: Sales figures from 1982<br />
to 2015 inclusive from ABS. Sales<br />
figures from 2016 to 2019 based on<br />
the average percentage change in<br />
industry sales across 400 jewellers<br />
from Retail Edge’s POS database.<br />
jewellery.<br />
Some stores may not need as many<br />
hours of labour per week in the months<br />
ahead, while shopping centre rentals<br />
are likely to continue to fall over the next<br />
few years. Logic states that empty shops<br />
and reduced consumer spending will<br />
lower the market values of commercial<br />
property.<br />
Ideally, labour costs should be 18–22<br />
per cent of sales and rent no more than<br />
15 per cent in shopping centres and no<br />
more than 10 per cent in other locations.<br />
The financial structure of the business<br />
must give a high probability of achieving<br />
profit of at least 10 per cent of sales –<br />
hopefully more – before tax.<br />
The last step in preparation for the<br />
immediate future of retail is the<br />
most important, namely, ensuring a<br />
COVID-safe environment for staff<br />
and customers.<br />
The topic of maximising stock<br />
performance required two webinars,<br />
because this is a critical issue for the<br />
jewellery retail industry.<br />
Simply put, an average stock turn rate<br />
of one – the average item on the shelf<br />
takes a year to sell – will not result<br />
in the required profitability, cash flow<br />
or return on investment in the retail<br />
environment that we face.<br />
For example, a store with sales of<br />
$500,000 a year and stock on hand of<br />
$500,000 at retail has a stock turn rate<br />
of 1.0 (sales divided by stock).<br />
If that store can increase its stock turn<br />
rate by just 0.1 in the first year, and then<br />
by another 0.1 in the next year, then they<br />
will have an extra $50,000 cash in their<br />
hand each year.<br />
That is an extra $250,000 over five<br />
years and it can be achieved through<br />
a combination of sales increases and<br />
reduction in stock levels.<br />
Our webinars cover the detailed<br />
steps needed to improve stock turn<br />
rates, starting with space allocation,<br />
which means ensuring that the lineal<br />
space allocated to each merchandise<br />
department and range in the store<br />
relates to its sales performance.<br />
“The next step is to ensure<br />
that businesses have a sound<br />
financial structure going<br />
forward, based on a realistic<br />
sales forecast. The three key<br />
elements are: gross profit<br />
percentage, rent and labour<br />
costs – the latter two being<br />
the major expenses in retail<br />
jewellery”<br />
It is critical to identify poor performing<br />
ranges that are dragging down overall<br />
stock performance. A comparison of the<br />
average retail price of items in stock to<br />
the average price of items sold is also<br />
useful in measuring stock performance.<br />
For example, if the average price of<br />
items on the shelf are far greater<br />
SUMMARY<br />
Key Points<br />
COVID-19 has<br />
compounded<br />
existing<br />
challenges<br />
Consumers are<br />
less able and<br />
willing to spend<br />
disposable income<br />
Financial<br />
preparation is<br />
essential<br />
Retailers should<br />
access relief<br />
schemes and reduce<br />
costs such as labour<br />
and rent<br />
Maximise stock<br />
performance to<br />
improve profits<br />
Utilise different<br />
metrics and<br />
strategies to analyse<br />
stock and improve<br />
outcomes<br />
Invest in<br />
marketing to<br />
improve sales<br />
During slow trading<br />
periods, marketing<br />
helps to increase<br />
sales and market<br />
share<br />
than the average sale price, it is likely that<br />
purchases and stock on hand is misaligned<br />
with what customers are buying – and the<br />
result is lost sales.<br />
Most retailers understand that old stock<br />
is not providing the return that it should,<br />
however few realise the extent to which old<br />
stock results in lost sales.<br />
The change in consumer spending habits<br />
towards custom design makes it necessary<br />
for jewellers to change their stock profile.<br />
For many years, most jewellers have<br />
carried large ranges of finished diamond<br />
and coloured gemstone jewellery in their<br />
windows, yet to cater to changing consumer<br />
tastes, it is now preferable to reduce the<br />
investment in finished diamond jewellery.<br />
With an average stock turn rate of 0.4 –<br />
meaning the average item takes two-anda-half<br />
years to sell – it is difficult, if not<br />
impossible, to make an adequate return on<br />
the stock levels held in the past.<br />
Store marketing must be a major focus given<br />
that jewellery is a high margin and very low<br />
stock-turn product category.<br />
In difficult trading periods, the goal of<br />
marketing is to maintain and increase sales<br />
and increase market share.<br />
With less foot traffic, retailers have to<br />
find a way to increase their ‘hit rate’ for<br />
the customers that do visit the store. For<br />
example, if the business is achieving four<br />
sales out of 10 visits, then it needs to<br />
increase that to five or more sales out of 10.<br />
The fourth Nationwide webinar focuses<br />
on marketing and includes an annual<br />
32 | <strong>June</strong> <strong>2020</strong><br />
32 | <strong>June</strong> <strong>2020</strong>
With the recent announcements of<br />
government restrictions starting to be<br />
rolled back, jewellers now have the<br />
opportunity to get customers back<br />
into the store.<br />
Effectively communicate the<br />
changes that have taken<br />
place without spending<br />
all their time on the phone<br />
Do you do custom rings?<br />
Yes we do! Pretty much<br />
everything is customisable,<br />
from setting to stone to cut.<br />
What are you looking for?<br />
Get the free<br />
Texting Guide<br />
CLAIM YOUR COPY<br />
We’re wanting to create a<br />
unique engagement ring.<br />
Wonderful, congratulations!<br />
Come on in and we can go<br />
through all the options.<br />
61.478.189.947
Looking for new product ideas? Maybe you have an unusual request for a diamond or gemstone or perhaps<br />
you need a new supplier for your bread and butter items? Or you are looking for a new watch brand?<br />
The <strong>2020</strong> Suppliers Directory – the “Bible” of the Australian and<br />
New Zealand jewellery industries – has all the answers.<br />
STILL<br />
THE #1<br />
DIRECTORY<br />
280+<br />
Product<br />
Categories<br />
4<br />
Distinct Category<br />
Sections<br />
Individual<br />
Industry<br />
580 Suppliers<br />
<strong>Jeweller</strong>y &<br />
520+ Watch Brands<br />
Suppliers - Are you and your products listed? Retailers – Have you got your copy?<br />
Email info@jewellermagazine.com<br />
Not only is the Supplier Directory the largest and most comprehensive<br />
industry database, you can access it online through any device 24/7.<br />
www.jewellermagazine.com
Post-Pandemic Retail | FORECAST FEATURE<br />
Most Popular<br />
Products<br />
Purchased<br />
Online<br />
Chart 2: Survey<br />
of Australian<br />
Consumers, Global<br />
Online Consumer<br />
Report, KPMG<br />
International, 2017<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
10<br />
11<br />
12<br />
13<br />
14<br />
15<br />
16<br />
17<br />
18<br />
19<br />
20<br />
21<br />
22<br />
23<br />
24<br />
25<br />
26<br />
27<br />
Books / Music<br />
Electronics / Computers<br />
Apparel (Women)<br />
Household goods & Appliances<br />
Accessories<br />
Apparel (Men)<br />
Food / Groceries<br />
Toys / Games / Video games<br />
Cosmetics / Skincare<br />
Furniture / Home décor<br />
Sporting Goods / Equipment<br />
Shoes (Women)<br />
Telecommunications / Phones<br />
Shoes (Men)<br />
Apparel (Children)<br />
Bags / Leather goods<br />
Perfume / Cologne<br />
Pharmacy / Gealthcare<br />
Wine<br />
Shoes (Children)<br />
Fine <strong>Jeweller</strong>y / Watches<br />
Baby Products<br />
Eyewear<br />
Pet Food & Supplies<br />
Liquor<br />
Beer<br />
Artwork<br />
marketing calendar template, as<br />
planning ahead is important.<br />
The first step in marketing is to<br />
understand your customer profile, and to<br />
identify the strengths of your business.<br />
It is essential that you market to your<br />
strengths, which may be an extensive<br />
range, convenient location, the brands<br />
you carry, your expertise, or the services<br />
that you provide.<br />
Due to the shift toward custom design<br />
and consumer personalisation, we advise<br />
stores to promote custom design as well<br />
as repair services.<br />
<strong>Jeweller</strong>s need to use as many<br />
marketing channels as possible, keeping<br />
in mind that most mainstream media<br />
has a reduced reach and is expensive.<br />
While digital marketing is now the most<br />
popular and cost-effective means of<br />
marketing, it is essential to not simply<br />
assume an online campaign will be<br />
effective.<br />
Rather, business owners must measure<br />
results and continue to test different<br />
marketing channels and methods.<br />
Marketing starts with the store.<br />
Visual merchandising and signage<br />
are essential, alongside a factor that<br />
can add as much as 20 per cent to a<br />
jewellery store’s sales: price tickets on<br />
all merchandise.<br />
Next, every business needs a quality<br />
website that is mobile-friendly.<br />
It goes without saying that websites are<br />
the modern Yellow Pages listing, with<br />
87 per cent of consumers researching<br />
online before shopping in a bricks-andmortar<br />
store.<br />
While overall online purchases are<br />
increasing – and will continue to<br />
do so – it is important to recognise that<br />
the vast majority of jewellery purchases<br />
take place in bricks-and-mortar stores.<br />
<strong>Jeweller</strong>y was the 21st most popular<br />
online shopping category in a 2017<br />
survey conducted by KPMG, and that<br />
trend holds true today.<br />
The lower proportion of total jewellery<br />
sales conducted online is evidenced<br />
when we look at Michael Hill<br />
International; in the six months to<br />
December 2019, online sales accounted<br />
for $10 million, or 3 per cent of the<br />
company’s total sales.<br />
Therefore, the main purpose of jewellery<br />
store websites, social media and digital<br />
advertising is to attract customers into<br />
stores.<br />
Consumers want and appreciate a<br />
seamless shopping experience both<br />
offline and online.<br />
Retailer’s priority checklist<br />
Given the economic conditions that we<br />
face, the important areas of focus for<br />
retail jewellers now should be:<br />
• Ensure that you have a quality<br />
mobile-friendly website,<br />
featuring a representation of<br />
your merchandise range and the<br />
services you provide<br />
• A well-presented store that<br />
ACTION NOW<br />
Marketing Tips<br />
Create an annual<br />
marketing<br />
calendar<br />
Use a template<br />
to plan your<br />
marketing activities<br />
ahead of time<br />
Understand<br />
your target<br />
customer<br />
<br />
needs, and media<br />
habits of existing<br />
and potential<br />
customers<br />
Focus on the<br />
strengths of<br />
your business<br />
Promote your store<br />
based on pointsof-difference,<br />
such<br />
as extensive range,<br />
custom design, or<br />
convenience<br />
Use a variety<br />
of marketing<br />
channels<br />
Reinforce your<br />
message by using<br />
online marketing<br />
channels to drive<br />
customers into<br />
your store<br />
reflects the image you are seeking to<br />
portray, with visual merchandising<br />
that attracts and appeals to your<br />
target audience<br />
• Several channels of digital media<br />
marketing<br />
• Training in effective selling skills and<br />
product knowledge, ensuring that both<br />
you and your staff are experts in all<br />
product areas<br />
• Effective stock management<br />
strategies that maximise sales,<br />
thereby improving your stock turn<br />
rate and return on investment<br />
• A financial structure – gross profit<br />
percentage less labour, rent and other<br />
expense percentages – that results<br />
in a profit before tax of at least 10 per<br />
cent of sales<br />
These ‘retail science’ business strategies<br />
that we are introducing to Nationwide<br />
members through our Business<br />
Management Course and webinars are<br />
critical retail tools needed to survive and<br />
prosper in the years ahead.<br />
Sadly, some businesses won’t get<br />
through the next 12 to 18 months;<br />
however, those that implement the<br />
strategies above will survive, and come<br />
out a lot stronger and more prepared<br />
for the future on the other side.<br />
COLIN POCKLINGTON has more than 40<br />
years of experience in strategic and business<br />
planning in the retail jewellery industry. He<br />
is co-founder of Australia and New Zealand’s<br />
largest buying group, Nationwide <strong>Jeweller</strong>s.<br />
<strong>June</strong> <strong>2020</strong> | 35
CELEBRATING<br />
Local Talent<br />
MARK COTTERELL<br />
MASTER JEWELLER<br />
Pure Bliss Ring<br />
Metals: 18-carat white<br />
and yellow gold<br />
Gemstones: 8.05-carat<br />
radiant tourmaline and<br />
1.49 carats of white<br />
diamonds<br />
Mark Cotterell<br />
Brisbane, QLD<br />
MATTHEW ELY<br />
JEWELLERY<br />
Joyau Rouge Ring<br />
Metals: 18-carat white gold<br />
Gemstones: 64.53-carat<br />
rubellite tourmaline, 1.60<br />
carats of white diamonds and<br />
black tourmaline beads<br />
Matthew Ely<br />
Sydney, NSW<br />
KIAN DESIGN<br />
Perla & Diamante<br />
Neckpiece<br />
Metals: 18-carat yellow<br />
and white gold<br />
Gemstones: 9.7mm<br />
South Sea pearl and 0.17<br />
carats of white diamonds<br />
Kian Dastyar<br />
South Perth, WA<br />
Australia & New Zealand<br />
<strong>Jeweller</strong>s<br />
Showcase<br />
Australia and New Zealand are not only home to some of the<br />
rarest gemstones in the world, but also the most talented jewellers.<br />
<strong>Jeweller</strong> showcases a tapestry of local masterpieces that have been<br />
meticulously crafted with great artisanship, right here on home soil.<br />
GARY THYREGOD<br />
JEWELLERY<br />
Bling Or No Bling<br />
Gents Ring<br />
Metals: 14-carat<br />
white gold and 1<br />
8-carat rose gold.<br />
Gemstones: Diamonds<br />
Gary Thyregod<br />
Sydney, NSW<br />
PAUL AMEY<br />
JEWELLER<br />
Harmony Pearl Ring<br />
Metals: 18-carat yellow<br />
gold and platinum<br />
Gemstones: 12mm<br />
Cygnet Bay South<br />
Sea pearl, keshi white<br />
pearl, 0.47 carats<br />
of enhanced blue<br />
diamonds, 0.88 carats<br />
of white diamonds<br />
Paul Amey,<br />
Gold Coast, QLD<br />
36 | <strong>June</strong> <strong>2020</strong>
GIULIANS<br />
Black Opal Ring<br />
Metals: 18-carat white, yellow<br />
and rose gold<br />
Gemstones: 7.25-carat Lightning<br />
Ridge black opal, and rubies,<br />
diamonds and yellow sapphires<br />
Gary Coffey<br />
Sydney, NSW<br />
ROBERTO MATTEI<br />
JEWELLERY DESIGN<br />
My City Ring<br />
Metals: 18-carat white,<br />
yellow and rose gold,<br />
osmium, titanium and<br />
stainless steel<br />
Gemstones: 0.87 carats of<br />
cognac Argyle diamonds,<br />
1.85 carats of white baguette<br />
and brilliant cut diamonds<br />
Roberto Mattei<br />
Sydney, NSW<br />
DEER HONEY JEWELLERY<br />
Kite Sapphire Ring<br />
Metals: 18-carat yellow gold<br />
Gemstones: Kite cut sapphire<br />
and white diamonds<br />
Brett Low<br />
Gold Coast, QLD<br />
CUSHLA WHITING<br />
Moonstone<br />
Emerald Hoops<br />
Earrings<br />
Metals: 18-carat<br />
yellow gold<br />
Gemstones:<br />
Moonstones, and<br />
emeralds<br />
Cushla Whiting<br />
Melbourne, VIC<br />
BENJAMIN HART<br />
JEWELLERY<br />
Hart Cluster Ring<br />
Metals: 18-carat yellow<br />
and rose gold<br />
Gemstones: Demantoid<br />
and Tsavorite garnet, pink<br />
sapphire and quartz<br />
Benjamin Hart<br />
Sydney, NSW<br />
REIGNE<br />
JEWELLERY<br />
Grand Oak Brooch,<br />
Pendant and Ring<br />
Metals: 18-carat<br />
yellow gold<br />
Gemstones:<br />
Diamond, Tsavorite<br />
garnet and polished<br />
wood<br />
Dana Aviv<br />
Melbourne, VIC<br />
MINDIKA JEWELLERY<br />
Venus Ring<br />
Metals: 18-carat yellow<br />
and white gold<br />
Gemstones: Ceylon<br />
blue and pink sapphires,<br />
diamonds<br />
Mindika Haddagoda<br />
Brisbane, QLD<br />
<strong>June</strong> <strong>2020</strong> | 39
RETAIL FEATURE<br />
Accelerated Evolution<br />
LESSONS<br />
of the<br />
LOCKDOWN<br />
As COVID-19 restrictions begin to lift, businesses must prepare<br />
<br />
by the pandemic. ARABELLA RODEN reports.<br />
40 | <strong>June</strong> <strong>2020</strong>
BY THE NUMBERS<br />
COVID-19 Impacts<br />
F<br />
or the retail sector, the impact of the<br />
COVID-19 pandemic was felt instantly.<br />
As fear and panic gripped the nation,<br />
consumers rushed to stockpile essentials, while<br />
discretionary spending dived to levels unseen in<br />
decades. Many retailers – particularly in regional<br />
areas – watched helplessly as their hopes for<br />
a swift recovery from last summer’s horror<br />
bushfire season were extinguished.<br />
Without explicitly banning non-essential retail, government<br />
lockdowns effectively prevented bricks-and-mortar<br />
businesses from trading by confining Australians to their<br />
homes. At the same time, swathes of the population were<br />
furloughed, made redundant, or had contracts cancelled.<br />
These new dynamics created – or accelerated – a number<br />
of trends that will continue to affect the Australian retail<br />
landscape in the months and years to come, altering<br />
consumer behaviour as well as the practicalities and logistics<br />
of retail sales.<br />
Speaking on the podcast of retail futurist and <strong>Jeweller</strong><br />
contributor Steve Van Belleghem, Jon Bird, CEO of marketing<br />
and communications agency VMLY&R (Australia and<br />
New Zealand), said the pandemic had “an extraordinary<br />
effect on retail”.<br />
“A lot of change has been compressed into an extraordinary<br />
amount of time – a lot of change, from a behaviour point of<br />
view, which has been influenced of course by COVID-19 and<br />
the fact that people have been locked down in their homes,<br />
remote working, having to pick up on digital technologies,<br />
forced to change,” he explained.<br />
Bird defined the changes to retail in three categories – ‘hands’,<br />
‘head’, and ‘heart’: “The ‘hands’ point of view is how physical<br />
retail will be different, particularly around touch; from a heads<br />
perspective, how the digital ‘smarts’ around retail are rapidly<br />
changing; and from a hearts perspective, how the emotions<br />
around consumption and shopping are shifting.”<br />
Over the course of the lockdown period, these changes have<br />
not been ignored by retailers; rather, many business owners<br />
have been forced to re-evaluate their approach and make<br />
efforts to adapt to a new reality, shaped by forces beyond<br />
their control.<br />
7.1%<br />
Australian<br />
unemployment<br />
rate in May <strong>2020</strong><br />
Source: Australian<br />
Bureau of Statistics<br />
200k<br />
Australians shopped<br />
<br />
time in April <strong>2020</strong><br />
Source: Australia Post<br />
40%<br />
of the population<br />
– Gen Z and<br />
Millennials – has<br />
<br />
<br />
affected by hte<br />
pandemic<br />
Source: McKinsey & Co.<br />
2021<br />
the Australian<br />
Retailers<br />
Association’s<br />
proposed end date<br />
for JobKeeper<br />
assistance to<br />
select retailers<br />
24%<br />
increase in<br />
pedestrians<br />
recorded at<br />
Bourke Street Mall<br />
North on 20 <strong>June</strong>,<br />
compared with<br />
four-week average<br />
Source: City of Melbourne<br />
Pedestrian Counting<br />
System<br />
Economic fallout<br />
According to the Australian Bureau of Statistics (ABS), retail<br />
turnover figures saw their largest fall on record in April <strong>2020</strong>.<br />
However, preliminary figures for May surged 16.3 per cent,<br />
the largest rise in the 38 years of the survey.<br />
Yet Andrew Hanlan, senior economist Westpac, noted that the<br />
“wild ride” still resulted in retail sales 0.4 per cent below their<br />
pre-COVID level, adding that “weak income growth and fragile<br />
[consumer] confidence” would continue to weigh down retail<br />
in the coming months.<br />
“The combined impacts of the pandemic have<br />
led Australia into a recession for the first time<br />
in 29 years, and experts have cautioned against<br />
the retail sector relying on the ‘sugar hit’ of the<br />
Federal Government’s JobKeeper and enhanced<br />
JobSeeker payments”<br />
Indeed, all Australian states and territories recorded rising<br />
unemployment in May <strong>2020</strong>, with the largest losses recorded<br />
in Victoria, New South Wales, and Western Australia; the<br />
national unemployment rate stood at 7.1 per cent, an increase<br />
of 2 per cent from February <strong>2020</strong>.<br />
The combined impacts of the pandemic have led Australia<br />
into a recession for the first time in 29 years, and experts<br />
have cautioned against the retail sector relying on the ‘sugar<br />
hit’ of the Federal Government’s JobKeeper and enhanced<br />
JobSeeker payments.<br />
Combined, the packages are paid to approximately<br />
7.6 million people and have enabled many businesses to<br />
continue operating by boosting consumer spending.<br />
However, the payments were, at the time of publication, due<br />
to expire on 27 September. Speaking at a Senate committee<br />
meeting in late May, Dr Philip Lowe, governor of the Reserve<br />
Bank of Australia, cautioned, “It’s going to be very important<br />
to keep the fiscal support going. It’s very important that we do<br />
not withdraw fiscal stimulus too early.”<br />
He added, “Even as the recovery gets under way, there will<br />
still be a shadow cast by the pandemic. As a country, we will<br />
need to turn our minds as to how to move out of this shadow.<br />
A reform agenda that makes Australia a great place for<br />
businesses to expand, invest, innovate and hire people would<br />
certainly help.”<br />
<strong>June</strong> <strong>2020</strong> | 41
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
Jon Bird<br />
VMLY&R Australia<br />
& New Zealand<br />
Paul Zahra, CEO of the Australian<br />
Retailers Association (ARA), said that<br />
while the retail sector was “shifting<br />
out of crisis towards recovery”, the<br />
economic recession indicated that<br />
“recovery will be slow”. The ARA has<br />
called on the Morrison government to<br />
extend JobKeeper to selected retailers<br />
until February 2021, in order to support<br />
vital pre- and post-Christmas trading.<br />
Speaking to the Australian Financial<br />
Review, Zahra said, “At this stage<br />
we’re facing a cliff and we’d prefer a<br />
slope. Retailers plan to batten down<br />
the hatches anyway, this will give them<br />
some relief to get them through this all<br />
important trading period.”<br />
“The empty shops left by store<br />
closures and the inevitable<br />
retail collapses we’ll see in the<br />
post-COVID-19 environment<br />
will increase the power of<br />
retailers to extract better<br />
deals from landlords”<br />
Indeed, many jewellery retailers have<br />
been among those to access the<br />
JobKeeper program. “We are lucky to<br />
be in Australia – I expected this to be a<br />
lot worse,” said Michael Sobbi of Linda<br />
& Co Designer <strong>Jeweller</strong>s in Sydney.<br />
“I think with the government grants and<br />
strong online sales, we are riding the<br />
wave to normality.”<br />
The importance of having a financial<br />
buffer in place has been noted by a<br />
number of jewellery retailers and<br />
retail experts.<br />
Steven Jansen, owner SS Impressions<br />
<strong>Jeweller</strong>y Design Studio in Perth, advised,<br />
“Always have a rainy day fund – in both<br />
monetary and materials areas – for at<br />
least six months.”<br />
Nikhil Jogia, of Jogia Diamonds<br />
International, also based in Perth, added,<br />
“Businesses, in any industry, that were<br />
struggling with weak balance sheets have<br />
faced the most trouble. Therefore, now<br />
more than ever would be a good time to<br />
build a stronger, more resilient balance<br />
sheet – whether that means lowering<br />
debt or increasing cash levels.”<br />
Meanwhile, Van Belleghem emphasises<br />
flexibility: “Forecasting and predicting<br />
business has become almost impossible.<br />
Today it is important to think in terms<br />
of scenarios. Be ready to reinvent<br />
your business.”<br />
Ben Manning, director Utopian Creations<br />
in Adelaide, said, “We have been working<br />
hard to improve the way our business<br />
functions – from improving our POS<br />
system right through to renovating our<br />
store and adding to our website. It’s an<br />
important opportunity to focus on the<br />
things that will help my business succeed<br />
once the country opens back up.”<br />
One of the most significant expenses<br />
on retail balance sheets is rent and the<br />
COVID-19 pandemic has thrown the longstanding<br />
conflict between retailers and<br />
landlords into even sharper relief.<br />
The charge was led by Premier<br />
Investments chairman Solomon Lew and<br />
CEO Mark McInnes.<br />
As Australia’s largest retail tenant,<br />
Premier – which controls brands<br />
including Peter Alexander and Smiggle,<br />
and operates more than 900 stores<br />
– refused to pay rent during the March-<br />
April lockdown and has since negotiated<br />
to pay only a percentage of gross store<br />
sales, rather than fixed rent.<br />
Other retailers, including fashion chain<br />
City Chic and jewellery retailer Michael<br />
Hill International, have reduced their<br />
store networks as a result of fruitless<br />
landlord negotiations.<br />
While smaller retailers may lack the<br />
leverage of larger tenants to achieve rent<br />
“A lot of change has<br />
been compressed into<br />
an extraordinary amount<br />
of time – a lot of change,<br />
from a behaviour point<br />
of view, which has been<br />
influenced of course by<br />
COVID-19 and the fact<br />
that people have been<br />
locked down in their<br />
homes, remote working,<br />
having to pick up on<br />
digital technologies,<br />
forced to change.”<br />
Paul Zahra<br />
Australian Retailers<br />
Association<br />
“Landlords need<br />
to remember we<br />
are in a recession.<br />
Playing hardball with<br />
tenants during this<br />
unprecedented economic<br />
period is a lose/lose<br />
outcome. It’s a false<br />
economy for landlords to<br />
try to extract rent from<br />
retailers that need their<br />
cash reserves to survive<br />
the COVID winter.”<br />
Dr Philip Lowe<br />
Reserve Bank of Australia<br />
“Even as the recovery gets<br />
under way, there will still<br />
be a shadow cast by the<br />
pandemic. As a country,<br />
we will need to turn<br />
our minds as to how to<br />
move out of this shadow.<br />
A reform agenda that<br />
makes Australia a great<br />
place for businesses to<br />
expand, invest, innovate<br />
and hire people would<br />
certainly help.”<br />
reductions, the Australian Financial Review<br />
recently noted, “The empty shops left by store<br />
closures and the inevitable retail collapses<br />
we’ll see in the post-COVID-19 environment<br />
will increase the power of retailers to extract<br />
better deals from landlords”.<br />
It’s a point that is particularly pertinent in the<br />
case of shopping centres.<br />
“Landlords need to remember we are in<br />
a recession. Playing hardball with tenants<br />
during this unprecedented economic period is<br />
a lose/lose outcome. It’s a false economy for<br />
landlords to try to extract rent from retailers<br />
that need their cash reserves to survive the<br />
COVID winter,” the Sydney Morning Herald<br />
quotes Zahra as saying.<br />
For jewellery retailers, buying groups<br />
can provide assistance in seeking rent<br />
reductions, as well as financial strategies<br />
for managing stock.<br />
Swift shift online<br />
Omnichannel retailing is hardly a new<br />
concept, yet the tactile appeal and large<br />
costs associated with jewellery have seen the<br />
category lag behind others in selling through<br />
digital channels.<br />
“The e-commerce side of many, mostly<br />
independent jewellery businesses is not nearly<br />
at the level of where it should be,” said Jogia.<br />
“I think many jewellers are still stuck in<br />
the 20th Century and think the only selling<br />
channel should be in-store – or they don’t<br />
want to risk competing with long-established<br />
online players.”<br />
Yet perhaps the most notable trend to emerge<br />
from the pandemic was the shift to online<br />
retail, particularly in Australia and the US.<br />
“E-commerce penetration in the States went<br />
from 16 per cent pre-COVID to 27 per cent<br />
post-COVID. In Australia, there was an even<br />
more dramatic up-tick because I think we were<br />
a little slower – 10 per cent pre-COVID, to 24<br />
per cent,” Bird said.<br />
42 | <strong>June</strong> <strong>2020</strong>
Timesupply<br />
jewellery + watches<br />
We are here to help you<br />
b unce back<br />
Popular price points, web banners and images, social media, POS,<br />
stock and sales analysis to ensure you have the best sellers in<br />
stock; just some of the services we can offer to help<br />
you bounce back.<br />
Contact the friendly team at Timesupply and<br />
let us help you be bounce back ready.<br />
Ken, Rachael, Lindsay, Lucy, Georgie, Liz,<br />
Kristy , Tee-Gun and Emily.<br />
p +61 (0)8 8221 5580 | sales@timesupply.com.au | timesupply.com.au
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
The assertion is supported by Australia<br />
Post data, which reveals online retailing<br />
has increased by 80 per cent during<br />
the pandemic, with more than 200,000<br />
consumers shopping online for the first<br />
time in April.<br />
Van Belleghem notes, “In the last few<br />
months, digital has surged in nearly every<br />
aspect of our lives. The barriers for digital<br />
usage have lowered significantly and will<br />
never be raised again.”<br />
Recent financial reports from Michael Hill<br />
International (MHI) and Pandora Jewelry<br />
indicated online sales had dramatically<br />
increased in the first quarter of <strong>2020</strong>.<br />
In the three weeks to 14 May, MHI digital<br />
sales outperformed its previous record<br />
week, which fell in the 2019 Christmas<br />
trading period.<br />
The company launched a number of<br />
digital initiatives during the seven-week<br />
closure of its store network across<br />
Australia, New Zealand and Canada,<br />
including virtual appointments, a WeChat<br />
‘mini store’, shoppable Instagram feed,<br />
and an online video hub.<br />
Meanwhile, the Pandora Jewelry Interim<br />
Financial Report for Q1 <strong>2020</strong> noted,<br />
“Online performance continues to be<br />
strong, and the channel appears highly<br />
resilient during market lockdowns,” with<br />
sales increasing by 29 per cent over the<br />
first three months of the year despite<br />
disruptions in China.<br />
Discussing the overall trend toward<br />
e-commerce, Elle Hill, CEO of US-based<br />
jewellery retail consultancy firm Hill &<br />
Co., said, “One of the biggest long-lasting<br />
effects that this is going to have on our<br />
industry is the awakening of how much<br />
can be done online.<br />
“They say necessity is the mother of<br />
invention, and really there was no option<br />
[during the lockdown]. All of a sudden, an<br />
industry that felt [consumers needed to]<br />
‘look, touch, and feel’ in order to ‘know,<br />
like and trust’ had to operate entirely<br />
within the confines of a digital footprint.”<br />
New Zealand’s level-four lockdown<br />
was stricter than any regulations<br />
implemented in Australia.<br />
Paul Taylor, managing director Paul<br />
Taylor <strong>Jeweller</strong>s in Auckland, New<br />
Zealand, said, “During New Zealand’s<br />
lockdown we were completely closed<br />
from 24 March and reopened at level<br />
three on 14 April. Our internet presence<br />
has been in overhaul during this period<br />
and I am confident this is going to be<br />
most important in times ahead.”<br />
“Recent financial reports from<br />
Michael Hill International (MHI)<br />
and Pandora Jewelry indicated<br />
online sales had dramatically<br />
increased in the first quarter<br />
of <strong>2020</strong>”<br />
Andrew McArthur, owner McArthur’s<br />
<strong>Jeweller</strong>s in Sapphire, in Queensland’s<br />
Gemfields region, said, “The area we<br />
have been focusing on is e-commerce:<br />
getting our shop up and running on Etsy,<br />
Instagram and Facebook Marketplace.<br />
“Also, looking into many other aspects<br />
of online shopping – for example, how<br />
customers can pay for their goods, like<br />
PayPal and Afterpay. My wife Lorna<br />
has learnt many skills on the computer<br />
setting up the online shop and doing free<br />
skills workshops online with TAFE.”<br />
Gil Watson, director Cybelle, which<br />
operates in Sydney and Melbourne,<br />
said the most time had been spent on<br />
“re-photographing many of the jewellery<br />
pieces on the website, especially<br />
those that were put up in a hurry and<br />
didn’t get the full ‘glamour’ treatment,<br />
plus rewriting many of the website<br />
descriptions to get them sounding<br />
more interesting.”<br />
QUICK REVIEW<br />
Key Trends<br />
• Increasing<br />
e-commerce<br />
The necessity of<br />
online trading has<br />
led both consumers<br />
and retailers to more<br />
readily embrace<br />
e-commerce<br />
• Building<br />
relationships<br />
Retailers have<br />
invested in two-way<br />
communication<br />
channels in order<br />
to deliver the level<br />
of service that<br />
consumers expect<br />
• Purposeful<br />
purchasing<br />
Consumers<br />
have become<br />
more attracted<br />
to meaningful,<br />
enduring products<br />
with a ‘story’,<br />
purchased from<br />
socially-positive<br />
brands<br />
She added, “I’ve worked hard on the brand’s<br />
Instagram image, and we’re now getting more<br />
visits to the website that come straight from<br />
Instagram.”<br />
The team at Silkoh, in Melbourne, listed<br />
“e-commerce, social media, marketing,<br />
dropshipping and stocktaking” as the key focus<br />
points during the isolation period, with an<br />
emphasis on gaining skills in bookkeeping and<br />
e-commerce management.<br />
Opening channels of communication<br />
Hill notes that digital communication<br />
is another area of opportunity for jewellery<br />
retailers that should continue to embrace now<br />
that bricks-and-mortar stores are reopening.<br />
“The lines of communication have really<br />
improved in the virtual world – from virtual<br />
try-on sessions to communicating through<br />
Instagram, your Facebook page, your website,<br />
your newsletters.<br />
“Now that the stores will be open and<br />
people will come back in, we shouldn’t stop<br />
using digital communication to listen to our<br />
customers – and to listen to them.”<br />
Hill emphasised the need to communicate<br />
essential information, such as store opening<br />
hours, through digital channels that customers<br />
use, as well as to continue digital engagement<br />
activities such as webinars.<br />
Indeed, Sue Gaylard, owner of Avenue J<br />
<strong>Jeweller</strong>y in Mooloolaba, Queensland, said,<br />
“Our main focus has been utilising social<br />
media and remaining interactive with our<br />
clients and followers.<br />
“We have been very appreciative of our loyal<br />
customers – many have still chosen to make<br />
Avenue J part of their special celebrations.<br />
We pride ourselves on continuing to build<br />
relationships with old and new clients.”<br />
Digital communication and social media<br />
marketing were also a key focus for Mark<br />
Evans, of Mark Evans Fine <strong>Jeweller</strong>y on<br />
the Sunshine Coast. “I have had quite a bit<br />
of consultation with a local media agency<br />
44 | <strong>June</strong> <strong>2020</strong>
From our inventory, to yours...<br />
BECOME AN OFFICIAL<br />
STOCKIST<br />
Due to an increase in enquiries from retail customers,<br />
we are upgrading the online presence of our stockist<br />
function on our website. It’s another way O’Neils Affiliated<br />
are trying to keep the Australian <strong>Jeweller</strong>y industry<br />
vibrant and busy in the face of overseas and online sales.<br />
Please visit www.oagems.com<br />
or call our friendly team on 03 9654 5200<br />
for more information.
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
Steven Van Belleghem<br />
Marketing and<br />
Retail Expert<br />
regarding my online presence, with my<br />
business Instagram and Facebook pages<br />
– [things like] setting up regular posts,<br />
the style of the images and the content<br />
needed to make it engaging. I realise<br />
now I had become a bit complacent –<br />
being busy, I had not kept up with this<br />
side of my business,” he said.<br />
“While the existing trend<br />
toward e-commerce has been<br />
well and truly accelerated<br />
by the pandemic lockdown, it<br />
seems consumers are already<br />
returning to bricks-andmortar<br />
stores”<br />
While many smaller retailers have<br />
limited budgets for improvement,<br />
Bird advises, “Think about the<br />
customer experience perspective<br />
and then just utilise the available<br />
systems that are affordable. You really<br />
have to be creative and think laterally<br />
in this case. But not looking into the<br />
opportunities of technology is simply<br />
ridiculously dangerous.”<br />
However, while the existing trend toward<br />
e-commerce has been well and truly<br />
accelerated by the pandemic lockdown, it<br />
seems consumers are already returning<br />
to bricks-and-mortar stores.<br />
Physical shopping evolution<br />
On Saturday 20 <strong>June</strong>, the City of<br />
Melbourne’s Pedestrian Counting<br />
System recorded 2,753 people at its<br />
Bourke Street Mall North sensor<br />
between 2pm and 3pm.<br />
This figure represented a 24 per cent<br />
increase on the four-week average, and<br />
was within 100 people of the 52-week<br />
average of 2,866.<br />
Brian Walker, founder and managing<br />
director of retail consultancy firm Retail<br />
Doctor Group, explains the shopping<br />
experience in terms of emotional appeal.<br />
“We generally like the physical and social<br />
nature of our shopping experiences –<br />
hanging out at the mall, being part of<br />
a community, or perhaps a tribe. We<br />
also know that it is our limbic brain, the<br />
processor of our human emotion, that<br />
drives our buying decisions, at a ratio<br />
of 6:1, on average, over the functional<br />
logical rational context.<br />
“Shopping in the physical sense is<br />
our best shot at triggering the human<br />
emotion hands down. Online is quite<br />
the opposite.”<br />
Walker also notes that human beings<br />
are “creatures of habit”, returning to the<br />
products and brands they already know<br />
and love.<br />
He predicts that the future of retail<br />
will “show an acceleration of our<br />
understanding of online production,<br />
transaction and usage, and this will<br />
increase naturally as a consequence<br />
– but it can’t and won’t replace the<br />
physical shopping experience, especially<br />
done well.”<br />
Bird describes the phenomenon as<br />
“a pendulum”, pointing to the impact of<br />
previous pandemics on interactions: “The<br />
pandemic of 1919-1920 had a similar<br />
effect upon behaviours at that time in<br />
terms of needing to social distance, and<br />
all those kinds of things.<br />
“But pretty obviously, by some way into<br />
the ‘20s, those behaviours had swung<br />
back to ‘normal’ again.<br />
“Having said that, if you look at the<br />
SARS epidemic, that really was the birth<br />
of digital commerce in lots of ways in<br />
China… That was an inflexion point where<br />
business responded, and that created<br />
a permanent change in the way people<br />
shopped in China,” he explains.<br />
Bird says physical retail will maintain<br />
low- or no-touch features, such as clickand-collect<br />
and virtual try-ons. However,<br />
“In the last few months,<br />
digital has surged in<br />
nearly every aspect of<br />
our lives. The barriers<br />
for digital usage have<br />
lowered significantly<br />
and will never be raised<br />
again.”<br />
Elle Hill<br />
Hill & Co.<br />
“The lines of<br />
communication have<br />
really improved in the<br />
virtual world – from<br />
virtual try-on sessions<br />
to communicating<br />
through Instagram,<br />
your Facebook page,<br />
your website, your<br />
newsletters. Now that<br />
the stores will be open<br />
and people will come<br />
back in, we shouldn’t<br />
stop using digital<br />
communication to listen<br />
to our customers – and<br />
to listen to them.”<br />
Brian Walker<br />
Retail Doctor Group<br />
“We generally like the<br />
physical and social<br />
nature of our shopping<br />
experiences – hanging out<br />
at the mall, being part of<br />
a community, or perhaps<br />
a tribe. We also know that<br />
it is our limbic brain, the<br />
processor of our human<br />
emotion, that drives our<br />
buying decisions, at a<br />
ratio of 6:1, on average,<br />
over the functional logical<br />
rational context. Shopping<br />
in the physical sense is our<br />
best shot at triggering the<br />
human emotion, hands<br />
down.”<br />
he emphasises that retailers must employ<br />
creative strategies to keep consumers engaged.<br />
“For the last few years, we’ve all heard<br />
that experience is going to be the saviour<br />
of physical retail – it was all about a ‘handson’<br />
experience. But in a post-COVID world,<br />
the physicality of retail will be very different<br />
because customers will want to keep their<br />
distance and simply not touch as much.<br />
“Certainly that concern about hygiene<br />
and wanting to be safe in a physical<br />
environment, will stay.”<br />
To overcome customer apprehension, Van<br />
Belleghem advises, “Many people are afraid<br />
to go back to a more normal life, so facilitate<br />
this process as much as you can. Overcommunicate<br />
what you do.<br />
“Bird says physical retail will<br />
maintain low- or no-touch features,<br />
such as click-and-collect and<br />
virtual try-ons. However, he<br />
emphasises that retailers must<br />
employ creative strategies to keep<br />
consumers engaged”<br />
“Whereas many companies will dial back<br />
their communications, I would strongly<br />
recommend communicating more. If you<br />
do, you shouldn’t have any trouble outcommunicating<br />
your competitors.<br />
“By telling people what you are doing to make<br />
your company a safe haven, you are helping<br />
them to come to terms with the situation while<br />
lowering the threshold [for them to purchase<br />
with you].”<br />
Hill advises retailers to do “due diligence”,<br />
taking into account all government safety<br />
regulations to protect staff and customers,<br />
before asking key questions: “[Retailers must<br />
ensure] they’ve thought through the entire<br />
consumer journey and how they’re walking in,<br />
when they’re walking in, how many are coming<br />
in. How many staff are going to be there? How<br />
is social distancing going to be handled?<br />
46 | <strong>June</strong> <strong>2020</strong>
Love isn’t cancelled,<br />
it’s stronger than ever.<br />
Our new ‘Momentum’ partnership provides<br />
the necessary tools to help steer our jewellers<br />
through this crisis with grace and gusto.<br />
We stand together, and hold our community<br />
close to our hearts.<br />
The time is now… we choose love!<br />
Discover the difference today.<br />
Sound like we are made for you?<br />
That’s because we are…<br />
Josh Zarb - CEO<br />
0448 416 070<br />
josh@jewellerscollective.com<br />
jewellerscollective.com<br />
#independentjewellerscollective
HAS REACHED<br />
DIAMONDS ONLINE<br />
Thousands of active buyers and sellers<br />
100% GUARANTEED DIAMOND<br />
TRANSACTIONS TM<br />
Guaranteed availability and<br />
authentication of goods for<br />
<br />
<br />
REAL DIAMOND<br />
PRICES<br />
<br />
<br />
<br />
IDEX MOBILE<br />
Search for diamonds and<br />
<br />
<br />
more<br />
NEWS & RESEARCH<br />
<br />
<br />
<br />
market research<br />
<br />
<br />
SIGN UP NOW!<br />
THE SMART WAY TO BUY AND SELL DIAMONDS
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
“How is the PPE [personal protective<br />
equipment] going to be implemented<br />
in a way that’s still welcoming and not<br />
off-putting?”<br />
She emphasises that the answers to these<br />
questions are highly dependent on the<br />
location of the store and its customer profile.<br />
Consumer behaviour<br />
Finally, the pandemic has brought to the fore<br />
key trends in consumer behaviour which<br />
influence purchasing patterns and attitudes<br />
to shopping – part of what Bird defined as<br />
the ‘heart’ category.<br />
A recent report series by McKinsey &<br />
Company, which followed 12 Australian<br />
families throughout the COVID-19 lockdown,<br />
noted several insights:<br />
• ‘Socially conscious’ values – The<br />
Australian culture of mateship and unity<br />
was strengthened during the pandemic.<br />
Bird identified this as an increase in<br />
orientation toward local businesses –<br />
consumers’ desire to support their local<br />
community through local retailers.<br />
“Of course we will see the Amazons,<br />
Walmarts and large retailers strengthened<br />
during these pandemic times. But I think<br />
at the other end of the spectrum too, we<br />
will see really interesting small retailers<br />
that will purely focus on the local<br />
community,” he predicts.<br />
Craig Flanders, CEO advertising agency<br />
Spinach, whose clients include Liquorland,<br />
Baby Bunting, and The Reject Shop, says,<br />
“Also here on home soil, we can expect to<br />
see a renewed interest in products grown<br />
and made locally as nationalism around the<br />
world increases. This comes off the back<br />
of the loss of security and safety, driven<br />
by being too reliant on just-in-time supply<br />
chains from the global village.<br />
“People will want to buy Australian products<br />
from Aussie businesses... For brands with an<br />
Aussie origin story to tell, this is the time to<br />
capitalise on it.”<br />
Craig Flanders<br />
Spinach Agency<br />
“Here on home soil,<br />
we can expect to see<br />
a renewed interest in<br />
products grown and made<br />
locally as nationalism<br />
around the world<br />
increases. This comes<br />
off the back of the loss of<br />
security and safety, driven<br />
by being too reliant on<br />
just-in-time supply chains<br />
from the global village.<br />
People will want to buy<br />
Australian products from<br />
Aussie businesses.”<br />
Jon Bird<br />
VMLY&R (Australia & New<br />
Zealand)<br />
“Of course we will<br />
see the Amazons,<br />
Walmarts and large<br />
retailers strengthened<br />
during these pandemic<br />
times. But I think at<br />
the other end of the<br />
spectrum too, we will<br />
see really interesting<br />
small retailers that will<br />
purely focus on the local<br />
community.”<br />
Elle Hill<br />
Hill & Co.<br />
“What I’ve been hearing<br />
from retail store owners is<br />
that purchases of smaller<br />
items were being ‘batched’<br />
together to get one<br />
more-important item that<br />
they felt aligns with their<br />
morals, their worldview,<br />
that has a story that they<br />
felt could connect to them,<br />
and that had more value<br />
such that it would endure.”<br />
Manning also advises jewellers to “support<br />
local” in their supply chain: “We all as<br />
retailers ask our customers to buy local<br />
and yet so often the materials that go<br />
into jewellery manufacture and retail in<br />
Australia are from overseas.<br />
“These elements represent<br />
marketing opportunities for<br />
jewellers, as jewellery is<br />
so intrinsically associated<br />
with positive memories and<br />
experiences. Care for the<br />
broader community, the<br />
environment, and reflecting<br />
positive attitudes can all<br />
be central to a retailer’s<br />
messaging”<br />
“By supporting local mining and suppliers<br />
you can lower price fluctuation and supply<br />
risks in difficult times.”<br />
• Developing healthy habits – Self-care,<br />
positivity, and mental health became key<br />
priorities for Australians.<br />
These elements represent marketing<br />
opportunities for jewellers, as jewellery<br />
is so intrinsically associated with positive<br />
memories and experiences. Care for the<br />
broader community, the environment,<br />
and reflecting positive attitudes can all be<br />
central to a retailer’s messaging.<br />
“In marketing in the past 10 years, the<br />
buzzword was ‘authenticity’. Some brands<br />
found that by adding, ‘founded in 1889’ [to<br />
the logo], suddenly you were authentic.<br />
I think we are going to see a flip from<br />
a focus on authenticity to a focus on<br />
responsibility,” Van Belleghem predicts.<br />
“Not in a fluffy way, where you make<br />
a PowerPoint presentation and think<br />
that you’ve saved the world, but actually<br />
looking at society and thinking how you<br />
can add value.”<br />
Van Belleghem advises businesses<br />
to “involve your customers and your<br />
employees” in defining socially-positive<br />
goals, and “don’t be shy about it: tell the<br />
world about your efforts, show the world<br />
you are proud while maintaining a humble<br />
tone of voice.”<br />
• ‘Deliberate’ shopping choices –<br />
COVID-19 restrictions broke many preexisting<br />
habits, giving consumers time to<br />
re-evaluate how they spend their time and<br />
money away from status symbols.<br />
Hill has observed a continuation of the<br />
consumer trend toward sustainability,<br />
accountability, and narrative-driven sales:<br />
“What I’ve been hearing from retail store<br />
owners is that purchases of smaller items<br />
were being ‘batched’ together to get one<br />
more-important item that they felt aligns<br />
with their morals, their worldview, that<br />
has a story that they felt could connect to<br />
them, and that had more value such that it<br />
would endure.”<br />
She predicts that sales of ‘heirloom’<br />
pieces will increase explaining, “That<br />
heirloom may be $99 for 1 person, it<br />
might be $599 for another and $1000 for<br />
another... [Consumers want] a sense of<br />
permanence in a time when a lot of things<br />
don’t seem as permanent as they did.”<br />
Among the most financially disadvantaged<br />
by the pandemic were Millennials and Gen<br />
Z – two cohorts which together represent<br />
40 per cent of the Australian population –<br />
who are defined by a desire for meaningful<br />
products and affordability.<br />
With a sound financial plan, safety<br />
strategy, e-commerce offering, and<br />
a marketing message and product<br />
assortment that reflect consumers’ new<br />
values, Australian jewellery retailers who<br />
have overcome the challenges of the past<br />
six months are well-placed to meet the<br />
demands of consumers and thrive in the<br />
‘next normal’.<br />
<strong>June</strong> <strong>2020</strong> | 49
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
WHAT HAVE<br />
JEWELLERS BEEN<br />
DOING DURING<br />
LOCKDOWN?<br />
Sue Gaylard<br />
AVENUE J<br />
JEWELLERY,<br />
QLD<br />
“We will come<br />
out of this<br />
stronger and<br />
smarter –<br />
and happier.”<br />
“During this unique time, we have chosen to<br />
focus on the future and amp up a few projects<br />
we had up our sleeve. Our main focus has been<br />
utilising social media and remaining interactive<br />
with our clients and followers.<br />
We have been very appreciative of our loyal<br />
customers. Many have still chosen to make<br />
Avenue J part of their special celebrations.<br />
We pride ourselves on continuing to build<br />
relationships with old and new clients.<br />
The best lesson we have learnt is to take each<br />
day as it comes and look towards the future.<br />
Our shop is located along the beautiful<br />
beachfront of one of the most iconIc beaches in<br />
Australia. It is a dream to work and live in such<br />
a beautiful place. Plus, we have a wonderfully<br />
supportive community.<br />
Though it is not ideal, we will come out of this<br />
stronger and smarter – and happier.”<br />
Nikhil Jogia<br />
JOGIA<br />
DIAMONDS, WA<br />
“Now would<br />
be a good<br />
time to build<br />
a stronger<br />
balance sheet<br />
– whether<br />
than means<br />
lowering debt<br />
or increasing<br />
cash levels.<br />
This may<br />
cause lower<br />
returns and/<br />
or profits, but<br />
in the long run<br />
will be a lot<br />
less risky.”<br />
“We have been operating as normal for the<br />
past few months. Business has been quite<br />
slow, but has been picking up during these<br />
past weeks. I think our customers have<br />
expectations that we should be operating as<br />
normal, despite events beyond our control.<br />
We’ve managed to recoat our timber floors,<br />
do equipment maintenance and finish admin<br />
work. In the coming months, I will work on our<br />
website, backend systems, and marketing.<br />
The lessons and take-a ways from this<br />
pandemic have been that:<br />
a) Businesses, in any industry, that were<br />
struggling with weak balance sheets have<br />
faced the most trouble. Now would be a good<br />
time to build a stronger, more resilient balance<br />
sheet – whether than means lowering debt or<br />
increasing cash levels. This may cause lower<br />
returns and/or profits, but in the long run will<br />
be a lot less risky.<br />
b) The e-commerce side of many, mostly<br />
independent jewellery businesses is not nearly<br />
at the level of where it should be. I think this<br />
is because a lot of jewellers are hesitant to be<br />
transparent about their products and pricing<br />
If you are a consumer looking to buy online,<br />
you would obviously want as much information<br />
about what you are buying, presented in<br />
an easy and straightforward manner. This<br />
means grading certificates, photos, videos and<br />
additional information, along with the price.<br />
However, I think many jewellers are still stuck<br />
in the 20th century and think selling should be<br />
in-store, or they don’t want to risk competing<br />
with long-established online players.”<br />
Andrew<br />
McArthur<br />
MCARTHUR’S<br />
JEWELLERS,<br />
QLD<br />
“The<br />
relationship<br />
with our<br />
customers –<br />
old and new –<br />
is so important<br />
in keeping<br />
our business<br />
going.”<br />
“The area we have been focusing on is<br />
ecommerce: getting our shop up and running on<br />
Etsy, Instagram and Facebook Marketplace.<br />
Also, looking into many other aspects of online<br />
shopping – for example, how customers can pay<br />
for their goods, like PayPal and Afterpay. My wife<br />
Lorna has learnt many skills on the computer<br />
setting up the online shop and doing free skills<br />
workshops online with TAFE.<br />
[The key lesson we have learnt is] that the<br />
relationship with our customers – old and<br />
new – is so important in keeping our business<br />
going. Having a good accountant has been very<br />
valuable as well in completing the JobKeeper<br />
and JobSeeker forms, as the paperwork has<br />
been a nightmare! Australia really has been<br />
lucky in managing this horrible disease.<br />
In these difficult times, if you are struggling with<br />
issues personally, talk to your friends and family.<br />
Don’t let it fester – most of us are in the same<br />
boat and we need each other now.”<br />
Giselle<br />
Devereux<br />
NCJV / BENCH<br />
JEWELLER, TAS<br />
“I have been<br />
using my time<br />
to study and<br />
this has been a<br />
great benefit.”<br />
“As a manufacturing jeweller, my work load<br />
has dropped considerably so it was pretty<br />
devastating at first but in other ways it has<br />
been a benefit. I have been doing a stocktake<br />
in my business and a thorough clean up of my<br />
work room, so that’s a plus.<br />
I am on the National Council of <strong>Jeweller</strong>y<br />
Valuers (NCJV) Federal Committee and am<br />
currently NCJV Tasmanian Division president.<br />
The Federal Committee had enrolled me in a<br />
TAFE course, a Certificate IV in Assessment<br />
and Workplace Training.<br />
I wasn’t able to to meet the demands of the<br />
course due to my workload so I have been<br />
using my time to study. This has been a great<br />
benefit. Hopefully when COVID-19 is over I<br />
will be able teach the new Valuation Diploma<br />
Course that the NCJV have developed!”<br />
50 | <strong>June</strong> <strong>2020</strong>
Mark Evans<br />
MARK<br />
EVANS FINE<br />
JEWELLERY,<br />
QLD<br />
“[Lockdown]<br />
has given me<br />
time to develop<br />
a new range<br />
of precious<br />
gemstone<br />
jewellery<br />
aimed most<br />
definitely at<br />
a specific<br />
price point.”<br />
“I have had extensive consultation with a local<br />
media agency regarding my business’ online<br />
presence across Instagram and Facebook<br />
i.e. setting up regular posts, the style of the<br />
images and engaging content. I realise now<br />
that I had become a bit complacent and hadn’t<br />
kept up with this side of my business.<br />
[Lockdown] has given me time to develop a<br />
new range of precious gemstone jewellery<br />
aimed most definitely at a specific price point.<br />
I had actually done a lot of the prep work over<br />
the Christmas holiday, but COVID-19 actually<br />
brought this range forward considerably.<br />
[In terms of lessons learnt] I would say be<br />
resilient. This has been an unprecedented<br />
time in history and we were all reeling from<br />
the ramifications COVID-19 thrust upon us.<br />
But, adapting to conditions has brought out<br />
new ways for our businesses to survive, and<br />
hopefully thrive in the future.<br />
Hang in there, and use this extraordinary time<br />
in our lives to reshape your business model<br />
to suit the current climate. Retail is now<br />
a considerably different landscape to pre-<br />
COVID-19 and we have to adapt to it.”<br />
Paul Taylor<br />
PAUL TAYLOR<br />
JEWELLERS, NZ<br />
“I feel the<br />
industry will<br />
revive in<br />
good time...<br />
Quality and<br />
service will<br />
undoubtedly<br />
be most<br />
important<br />
moving<br />
forward.”<br />
“In 49 years of business, we have once again<br />
been dealt a blow unforeseen and obviously out<br />
of our control.<br />
During the New Zealand lockdown we were<br />
completely closed from 24 March, and<br />
reopened at level three on 14 April. The<br />
industry has been impacted with COVID-19 and<br />
we have many trade customers who have been<br />
in hibernation as well .<br />
As with most other Kiwis, we spent our time on<br />
many walks and making use of the days with<br />
projects. Our internet presence has been in<br />
overhaul during this period and I am confident<br />
this is going to be most important in times<br />
ahead.<br />
The staff were left to their own devices during<br />
the lockdown, with the exception of coming<br />
up with design ideas. Simple designs with<br />
a reasonable price point was the message,<br />
and being able to CAD and replicate was also<br />
important.<br />
I feel the industry will revive in good time<br />
as the customers are still here. Quality and<br />
service will undoubtedly be most important<br />
moving forward.”<br />
Steven Jansen<br />
SS<br />
IMPRESSIONS<br />
JEWELLERY<br />
DESIGN<br />
STUDIO, WA<br />
“Always have<br />
a rainy day<br />
fund – in both<br />
monetary and<br />
materials areas<br />
– for at least<br />
six months.”<br />
“Fortunately we weren’t too affected with our<br />
business with the lockdowns. We are already<br />
appointment-only, so the only change we had<br />
was client having to change wedding dates to<br />
next year postponing a few makes. The rest<br />
that had already paid deposits went through<br />
with no cancelled orders.<br />
The only part that was affected was our trade<br />
work side, but thankfully we went from [trade<br />
work comprising] 90 per cent of our business<br />
last March to only 5 per cent of our turnover,<br />
due to the largest of jewellery chains trying to<br />
burn their subcontractors last year, resulting<br />
in our firm pulling out of our contract with<br />
them. [We have focused on] advertising via ma,<br />
and staff completing more CAD training.<br />
[The lesson learnt is to] always have a rainy day<br />
fund – in both monetary and materials areas –<br />
for at least six months.<br />
Even when you’re not busy in the shop or<br />
workshop ,always try to use your time as best<br />
as possible to learn a new skill, revamp your<br />
shop or image, and look for other ways to<br />
make your store work and be more accessible<br />
to your clients.<br />
Don’t look at it as time off, but more like a<br />
forced opportunity to sort your business out.”<br />
Kathryn Wyatt<br />
IMOGENE<br />
JEWELLERY, VIC<br />
Geneva<br />
McArdle<br />
SILKOH / ICHU<br />
JEWELLERY, VIC<br />
“Now that I have more time, I should be doing<br />
photographs and email marketing as I am set<br />
up for it.<br />
However, I have been very busy having a holiday<br />
reorganising my books and office and gem lab<br />
at the shop.<br />
I’ve gained lots of new skills in gemmology with<br />
webinars, masterclasses and university courses<br />
from around the world with experts in their<br />
fields.<br />
The key lesson I have learnt is that I want to<br />
retire – possibly. There are more things to life<br />
than just working at a job!”<br />
“[We have focused on] e-commerce,<br />
social-media, marketing, dropshipping and<br />
stocktaking. [The team has gained skills in]<br />
bookkeeping and e-commerce management.<br />
Anything can happen – remain positive and<br />
focus on the strengths of your business.<br />
Keep on keeping on! Don’t give up during<br />
hard times, simply focus your energy on the<br />
successful avenues of your business and really<br />
make that thrive.”<br />
<strong>June</strong> <strong>2020</strong> | 51
THE FUTURE OF RETAIL | Lessons of the Pandemic<br />
... CONTINUNED<br />
“What have jewellers been doing during lockdown?<br />
Michael Sobbi<br />
LINDA & CO<br />
DESIGNER<br />
JEWELLERS,<br />
NSW<br />
“Things can<br />
change with<br />
a blink of an<br />
eye. Have a<br />
cash reserve,<br />
and focus on<br />
e-commerce.”<br />
“[During isolation, we have focused the most<br />
on] e-commerce and social-media marketing<br />
– Instagram especially – doing a spring clean<br />
of the store and workshop, sending [items for]<br />
refining due to the gold price increase, building<br />
relationships with existing customers and<br />
conducting a big stocktake.<br />
Most watch brands have provided trading so<br />
we have been catching up on that, as well as<br />
sales/management training – weekly meetings<br />
on how to close sales.<br />
[The key lesson we have learnt is that] things<br />
can change with a blink of an eye. Have a cash<br />
reserve, and focus on e-commerce.<br />
We are lucky to be in Australia – I expected this<br />
to be a lot worse. I think with the government<br />
grants and strong online sales, we are riding<br />
the wave to normality.”<br />
Tony Peters<br />
EXQUISITE<br />
JEWELLERS,<br />
ACT<br />
“Beware of<br />
the person<br />
behind the<br />
now sociallyaccepted<br />
mask.”<br />
“We have traded throughout the pandemic, but<br />
with reduced hours.<br />
Initially we allowed three persons in our<br />
public space, then it was two. Instead of a<br />
5pm close, we made it 3pm, and noon<br />
Saturday instead of 1pm.<br />
My assistant and I struggled to enforce the<br />
safe distancing – patrons were impatient and<br />
failed to comprehend the instruction, ‘Two<br />
persons maximum’.<br />
Beware of the person behind the now sociallyaccepted<br />
mask.<br />
[However] our opportunity to continue trading<br />
was essential, as I was not prepared to inject<br />
any finance into our store to stay afloat.<br />
I ceased purchases, unless it was critical to<br />
cover a sale, special order or repair. I was<br />
entitled to JobKeeper for myself and a credit<br />
on my BAS – this government assistance has<br />
certainly helped.<br />
Ben Manning<br />
UTOPIAN<br />
CREATIONS, SA<br />
“Be prepared<br />
– reduce<br />
debts as much<br />
as possible<br />
and increase<br />
e-commerce.<br />
By supporting<br />
local mining<br />
and suppliers<br />
you can<br />
lower price<br />
fluctuation and<br />
supply risks in<br />
difficult times.”<br />
“[We have focused on] renovating our retail<br />
store/workshop and e-commerce. Our<br />
apprentice has been working on design<br />
practice, but other forms of training weren’t<br />
easy with our store closed.<br />
We have been working hard to improve the<br />
way our business functions, from improving<br />
our POS system right through to renovating<br />
our store and adding to our website. I think<br />
time for [making] special pieces is a luxury<br />
and an international pandemic that has forced<br />
the closure of my business is not that time.<br />
It’s an important opportunity to focus on the<br />
things that will help my business succeed once<br />
the country opens back up. If in another year<br />
or two our order books are full and we have<br />
hired more staff than we previously had, then<br />
that may be the time to sit back and rejoice by<br />
making something special.<br />
[A key lesson from the pandemic is to] be<br />
prepared – reduce debts as much as possible<br />
and increase e-commerce. [The message I’d<br />
like to send to the industry is to] support local.<br />
We all, as retailers, ask our customers to buy<br />
local and yet so often the materials that go into<br />
jewellery manufacture and retail in Australia<br />
are from overseas. By supporting local<br />
mining and suppliers you can lower price<br />
fluctuation and supply risks in difficult times.”<br />
Gil Watson<br />
CYBELLE, NSW<br />
AND VIC<br />
“I’ve been<br />
brushing<br />
up on some<br />
of the new<br />
gemstones<br />
becoming<br />
popular, as<br />
I start to<br />
stock them.”<br />
My landlord gave me a $600 waiver on my<br />
rent – equivalent to half my downturn in trade<br />
for March. I passed on the deferment. It was<br />
my intention to exit this industry during <strong>2020</strong> –<br />
COVID-19 has not helped that ambition.”<br />
“The most time has been spent on rephotographing<br />
many of the jewellery pieces<br />
on the website, especially those that were<br />
put up in a hurry and didn’t get the full<br />
‘glamour’ treatment, plus re-writing many of<br />
the website descriptions to get them sounding<br />
more interesting.<br />
I’ve worked hard on the brand’s Instagram<br />
image, and we’re now getting more visits to the<br />
website that come straight from Instagram.<br />
I’ve also done a stock-take and worked out<br />
which items need to be given away as free gifts<br />
to customers just to get rid of them, and which<br />
old suppliers need to be purchased from again<br />
because their items are perennial favourites.<br />
And, I’ve been brushing up on some of the new<br />
gemstones becoming popular, as I start to<br />
stock them!”<br />
52 | <strong>June</strong> <strong>2020</strong>
CLIENT: MARIE CLAIRE<br />
JESSE-LEIGH ELFORD<br />
LUXURY LIFESTYLE + JEWELLERY PHOTOGRAPHER<br />
VICTORIA MASSEY | MATILDA DODS | AMBER SCEATS | MARIE CLAIRE | THE EDIT MAGAZINE<br />
EMILY BAKER | INSTYLE MAGAZINE | SUNDAY TIMES LIFESTYLE | SUNDAY LIFE<br />
MAX MARA | GRAZIA ITALY | PERRI CUTTEN + MORE<br />
0426 476 667 | JESSE@JESSELEIGHELFORD.COM | JESSELEIGHELFORD.COM
BEST OF BUSINESS<br />
Sales Feature<br />
In periods of slow trading, it’s more important than ever for jewellery store owners and managers to ‘save’ sales.<br />
or the retail sector, How the to impact ask for help in closing a sale – and how to give it – is something that all sales staff and managers<br />
of the COVID-19 pandemic was should be a key priority in retail training, says LEONARD ZELL.<br />
felt instantly. As fear and panic<br />
pped the nation, consumers rushed to<br />
As a store owner or manager, do you know<br />
kpile essentials, while discretionary<br />
change has been how compressed<br />
many sales leak from your store each<br />
nding dived to levels unseen in<br />
extraordinary amount day because of time staff – couldn’t close a sale?<br />
change, ades. Many from a retailers It’s behaviour one thing – point particularly for sales leakage in to occur<br />
ional which areas has been – in watched influenced extremely helplessly busy of times like as December,<br />
by COVID-19 and but the it’s fact inexcusable that in slow periods when<br />
ir hopes for a swift recovery from last<br />
ave been locked every down sale in counts. their<br />
remote mer’s horror working, bushfire having to season pick were<br />
inguished.<br />
Ask yourself how much of a difference it can<br />
igital technologies, forced to<br />
,” he explained.<br />
make if just one important diamond sale<br />
out explicitly banning can be ‘saved’ non-essential each month? retail, In fact, how<br />
ined rnment the lockdowns changes easy to is effectively retail it to help in prevented close a sale that is about<br />
ks-and-mortar tegories – ‘hands’, to businesses be ‘head’, lost? from trading<br />
art’: onfining “The Australians ‘hands’ point to of their homes. At the<br />
e ow time, physical swathes retail Let’s<br />
of will see<br />
the be if we can put this into a financial<br />
population were<br />
oughed, t, particularly made around redundant,<br />
situation. touch; For<br />
or<br />
simplicity,<br />
had contracts<br />
let’s assume that<br />
celled. eads perspective, a store how trades the six days a week – that would<br />
marts’ around equate retail are to say around 300 days a year, give<br />
changing; se new dynamics and from or take. created a hearts – or accelerated<br />
number tive, how of the trends emotions that will around continue to<br />
ct ption the and Australian I would<br />
shopping retail suggest<br />
are landscape that in a the proficient manager<br />
.” ths and years could to come, help altering close two consumer or three sales a day,<br />
aviour as well as but the if you practicalities want to be more and conservative you<br />
stics course of retail of the sales. can lockdown assume just one or two quality sales<br />
these changes per have day. not been<br />
aking by retailers; on the podcast rather, many of retail futurist and<br />
eller s owners contributor have If been we Steve assume forced Van Belleghem, that the quality Jon sale is at an<br />
aluate , CEO of their marketing approach average and and of communications<br />
$250, then that can add $75,000<br />
fforts ncy VMLY&R to adapt (Australia to in a saved new sales and reality, New a year Zealand), at the rate of one<br />
by the forces pandemic beyond ‘saved had their “an sale’ control. extraordinary per day. effect<br />
etail”.<br />
ic impacts<br />
Fixing the leaks in your sales pipeline<br />
Many owners probably don’t know this<br />
because they’re not on the sales floor<br />
as much as they should be.<br />
They are involved in the operations of the<br />
store and have delegated the responsibility<br />
to their store manager.<br />
Even when owners are on the sales floor,<br />
they see sales people give up on customers,<br />
letting them leave the store without<br />
attempting to assist to close<br />
the sale.<br />
When you ask your salespeople why they<br />
didn’t ask you for assistance, the answer is<br />
usually, “I tried everything and they thanked<br />
me and said they will be back.” How many<br />
times have you heard that?<br />
But it is the responsibility of a store<br />
owner to create a culture where no-one<br />
is embarrassed about saving or assisting<br />
with a sale.<br />
Teach your sales people the following:<br />
• How to recognise when a sale is<br />
being lost;<br />
• To ask for assistance before it’s<br />
too late;<br />
If we assume<br />
that the quality<br />
sale is at an<br />
average of $250,<br />
then that can<br />
add $75,000 in<br />
saved sales a<br />
year at the rate<br />
of one ‘saved<br />
sale’ per day<br />
• What to say when asking you, or the store<br />
manager, for assistance.<br />
Identifying a failing sale<br />
If the customer starts showing a<br />
lack of interest, indecision, lack of<br />
enthusiasm or is pushing away from<br />
the counter, it’s time for the sales person<br />
to ask for assistance.<br />
However, there should be procedures in<br />
place to identify the right time to seek<br />
assistance and it should be before the<br />
salesperson has shown the customer<br />
everything in the store.<br />
Store owners have the responsibility<br />
to save sales, while staff should not be<br />
embarrassed about seeking assistance to<br />
close a sale. Owners and managers should<br />
be on the sales floor as much as possible<br />
and not always in the back office area.<br />
Preferably, and especially in busy periods,<br />
owners and managers should be ‘within<br />
earshot’ of sales staff.<br />
An owner or manager who spends most of<br />
their time in the back cannot easily assist<br />
sales staff, or save sales if they cannot see<br />
or hear interaction with customers.<br />
54 | <strong>June</strong> <strong>2020</strong>
We Are Here For You<br />
We know that our customers depend on KL Diamonds for essential<br />
business-to-business services that enable them to better serve their own customers.<br />
We have always believed that we are an extension of your own workshop. We are<br />
committed to safely maintaining our services to help you through these uncertain and<br />
troubling times. We’ve always been a proudly local business and fundamentally<br />
believe our customers need to thrive; that’s why we’re keeping our prices as low<br />
as possible and our services as efficient as ever.<br />
We are now offering free Rhodium plating on all repairs, custom<br />
makes, setting, and re-sizes. We understand that in these times,<br />
every little bit can help and we would like to do our part to help.<br />
We want to wish you, your loved ones, and fellow staff<br />
safe passage through this difficult period. We look<br />
forward to the end of this pandemic and to business<br />
returning to normal as soon as possible.<br />
Let’s continue to look after one another,<br />
together we will get through this.<br />
With our best regards,<br />
Kalleh & The KL Team.<br />
02 9221-1556<br />
workshop@kldiamonds.com.au
What You<br />
Need When<br />
You Need It<br />
For 50 years, we have worked<br />
to provide fast service and<br />
enduring support to jewellers<br />
across the world.<br />
As you open your doors once<br />
again, know that Stuller is<br />
here to help — with services,<br />
custom orders, and in-stock<br />
essentials you need.<br />
Stuller.com<br />
+3493-754-7774
Best of Business | SALES FEATURE<br />
It’s their responsibility to recognise when a<br />
sale is in jeopardy and should be prepared to<br />
wait for the appropriate time to step in.<br />
Usually, the signs are evident after the<br />
customers has been shown the first few<br />
pieces of jewellery.<br />
Salespeople have pride just like everyone<br />
else and don’t like to admit they’re losing<br />
their customer so early in a sale. They will<br />
often just keep showing jewellery in the<br />
hope the customer will say, “That’s the one I<br />
like. Wrap it up.”<br />
Your sales staff might be concerned about<br />
losing their commission or pride, or both. It<br />
needn’t be like that because in the majority<br />
of cases all the sales person needs is<br />
assistance.<br />
Assisting sales staff<br />
There are good and bad ways to introduce<br />
another staff member into the sale’s<br />
dialogue, so here’s a suggestion for how it<br />
can be done.<br />
Let’s call the sales person Steve and the<br />
customer Mike Larson. You, the store<br />
manager, are John Smith.<br />
Steve: “Mr Larson, let me bring John<br />
over – he always has some great ideas.”<br />
(Pause to let your customer reply.)<br />
Customer: “Fine.”<br />
Steve: “John, this is Mike Larson.” (You<br />
must pause for John to introduce himself.)<br />
John: “I’m John Smith. It’s nice to meet<br />
you.”<br />
Steve: “John, I showed Mike these three<br />
diamond rings over here and also this one.<br />
He wanted something a little larger and with<br />
more flair. He is also concerned about price<br />
as he’s been shopping around.” (Pause, let<br />
John talk)<br />
John: “Mike, I have something I would<br />
like to show you. In fact it just came in<br />
and I haven’t even had a chance to show<br />
it to Steve. I am sure he would have shown it<br />
to you.” (John must pause so Steve can exit)<br />
Steve: “John, please continue. Mike, John’s<br />
our store manager so you’re in good hands<br />
and I’ll be nearby if you need anything else.”<br />
There is an exception when the salesperson<br />
should not leave, and that is, if the customer<br />
is a friend or relative. However, it is up to<br />
him to tell the manager that by saying,<br />
“Mike is a good friend of mine,” or “Mike is<br />
my brother-in-law.”<br />
That way the manager will stay just long<br />
enough to help, and then leave. However,<br />
he can come back periodically to assist,<br />
providing he doesn’t stay too long. Two<br />
salespeople serving one customer is just a<br />
little too much!<br />
Now, let’s discuss this dialogue. The pauses<br />
are important – when sales people find<br />
themselves in difficult situations, they<br />
sometimes panic and talk too fast.<br />
The word ‘manager’ should be an after<br />
thought, said just before, “I’ll be nearby.”<br />
Identifying someone as the manager<br />
adds power and shows respect, but if a<br />
salesperson says it upfront, it puts them<br />
down and virtually makes it impractical for<br />
the manager to turn that sale back to the<br />
salesperson to write it up.<br />
It is also important that the salesperson<br />
brings the manager up to date as to what<br />
has been shown to the customer.<br />
If this is not done, the manager could<br />
embarrass him or herself and show<br />
the same merchandise or – worse yet –<br />
contradict the salesperson.<br />
Therefore, the salesperson must tell the<br />
manager of any negative comments – but<br />
not in a negative way.<br />
For instance, the customer might have<br />
commented, “I think<br />
I can get it cheaper at some other place.”<br />
That could be rephrased as, “Jim is<br />
concerned about price and has been<br />
shopping around.”<br />
If the salesperson forgets to bring the<br />
manager up to date, then he must ask,<br />
“What have you shown Jim so far?”<br />
However, it should rarely come to that.<br />
The reason for saying, “I’ll be nearby,” is<br />
because the salesperson should actually<br />
be nearby and listen in to hear how the<br />
sale is saved.<br />
This is one of the best ways of learning –<br />
that is how I learnt from my father. Never<br />
run away after turning over a sale unless<br />
you must serve another customer. My advice<br />
SUPPORT<br />
THE SALE<br />
Identify<br />
when a sale<br />
is being lost<br />
Staff should<br />
be trained<br />
to recognise<br />
a failing<br />
sale, while<br />
managers<br />
should know<br />
when to step in<br />
Ask for<br />
assistance <br />
Practice<br />
introductory<br />
techniques<br />
to bring the<br />
manager into<br />
the sale<br />
Share sales<br />
details<br />
Salespeople<br />
must share key<br />
details such<br />
as what the<br />
customer is<br />
looking for and<br />
what they have<br />
been shown<br />
Refer sales<br />
back to staff<br />
Staff members<br />
should ring<br />
up the sale to<br />
maintain their<br />
relationship<br />
with the<br />
customer<br />
to salespeople is to begin cleaning jewellery<br />
pieces in a case nearby.<br />
That way, your presence will not be<br />
intimidating. Since you said you will be<br />
nearby, your customer will be comfortable<br />
with you being there as long as you remain<br />
busy and occupied.<br />
Also, saying “I’ll be nearby” elevates the<br />
salesperson and enables them to maintain<br />
their pride, which is important.<br />
There’s a bonus in this approach; it makes it<br />
easier for the manager to show his respect<br />
for the salesperson by calling him back into<br />
the now successful sale.<br />
Manager John could say, “Steve, Mr Larson<br />
has selected this ruby and diamond ring.<br />
Please take care of it. He would like to have<br />
it gift wrapped as an anniversary gift.”<br />
By using this process, the next time Mr<br />
Larson visits the store, the relationship is<br />
between him and salesperson Steve.<br />
Closing thoughts<br />
Store owners should create a culture where<br />
the salesperson does not always have to<br />
leave the customer – only if he or she feels<br />
they are ‘in over their head’.<br />
By following these guidelines, the customer<br />
will still ‘belong to’ the salesperson even if<br />
they did end up feeling out of their depth.<br />
Successful store owners and managers<br />
recognise that there’s not always an<br />
ideal personality match between a<br />
salesperson and every customer, but there<br />
is more reason than ever to save<br />
a sale in difficult times.<br />
Procedures on how to do that should be<br />
communicated to all staff so that everyone<br />
is on the same page.<br />
The bonus is not only does the manager<br />
save those sales, but if handled correctly,<br />
those sales should become repeat<br />
customers because most customers do not<br />
return when a sale is not closed.<br />
The best news is that this increased<br />
turnover comes at no cost.<br />
LEONARD ZELL <br />
jewellers throughout the world for twenty-<br />
zellit.com or email zellit@<br />
aol.com<br />
<strong>June</strong> <strong>2020</strong> | 57
BEST OF BUSINESS<br />
Selling<br />
"Fine pieces are<br />
perfect for layering.<br />
Here, a second<br />
shorter chain and<br />
a pair of simple<br />
earrings can change<br />
everything. If you’d<br />
like, we could try<br />
layering a third<br />
chain? it could<br />
be too much,<br />
but then again,<br />
it could be<br />
perfect!"<br />
It’s all about the second item (and the third!)<br />
Selling in multiples is how retailers get ahead. RICK SEGEL and MATTHEW HUDSON say the difference between<br />
closing one item and two items is the difference between a good and great salesperson.<br />
I was once asked to do mystery shopping<br />
for a national chain. My job was to take my<br />
time going through the store, reviewing<br />
the visual merchandising signage and<br />
employee attitude and performance.<br />
This is a chain that I absolutely admire<br />
– all the people I’ve had contact with are<br />
very nice and do a very good job.<br />
The retailer is a specialty store, which<br />
tends to mean customers are split into<br />
an 'insider group' who know the product<br />
well, and those who might be coming in<br />
for the first time.<br />
This is similar to customers going to a ski<br />
shop, for example. If you are a skier, you<br />
are familiar with the gear and know when<br />
you see the super-duper latest models.<br />
If you are a beginner, however, you really<br />
don’t know the difference.<br />
Helping out an outsider<br />
In this particular business, I was an<br />
outsider. I went into the store and walked<br />
around. They were having a major sale<br />
and all the salespeople were busy.<br />
I was looking at all these products with<br />
not a clue in the world! I needed help and<br />
direction but the store was so busy that<br />
all the salespeople were tied up.<br />
Finally, a salesperson approached me.<br />
I don’t know if he was a manager,<br />
assistant manager or owner, but he knew<br />
his stuff.<br />
More importantly, he had a contagious<br />
passion for the product that made me<br />
want to buy even more.<br />
I asked about the different products I<br />
would need to complete a specific project<br />
and the person laid out all of the tools<br />
Top-performing<br />
retailers don’t<br />
strive to be<br />
everything to<br />
everybody...<br />
<br />
problems that<br />
the business<br />
uniquely solves<br />
for customers<br />
and equipment that I would need. He<br />
essentially created a shopping list to cater<br />
for my wants and needs.<br />
What could be better?<br />
Throughout the sales process, I asked<br />
a stack of different questions and gave<br />
the salesman plenty of buying signals,<br />
saying things like “I really like that” and<br />
“Oh, I need that.”<br />
Missed opportunity<br />
I had demonstrated my willingness to<br />
purchase two items but was intentionally<br />
indecisive about the second item that was<br />
in question.<br />
Everything was going fine until the<br />
salesperson asked, “So do you really<br />
want the second item?”<br />
I said, “Oh, I guess not”, and to my alarm<br />
58 | <strong>June</strong> <strong>2020</strong>
he proceeded to put it aside and wrap up<br />
just the first item.<br />
In other words, he gave up!<br />
In that one action, he demoted himself<br />
from expert salesman to clerk.<br />
What would it have taken to close that<br />
second sale? He already had a list of all<br />
the things I needed and could’ve even<br />
pushed for three or more items, but<br />
instead he ended up closing with a<br />
one-item sale.<br />
Just by saying, “Do you really want that?”<br />
he made me feel as if I shouldn’t be<br />
buying it.<br />
Certainly, I didn’t actually need it.<br />
In the salesperson’s eyes, he believed<br />
he did an excellent job. We bonded, he<br />
got my information for the mailing list to<br />
make sure I was aware of any specials<br />
or classes that were taking place in the<br />
store, he gave me a buying guide, he<br />
converted my wants into needs.<br />
He made me feel like an insider as<br />
opposed to the true outsider I really was,<br />
and he closed the sale.<br />
The problem is that he had the ability to<br />
make a multiple sale and lost out on that<br />
– perhaps because he didn’t want to be<br />
'too pushy' or because he wanted to be<br />
liked by me.<br />
Consequently, that sales opportunity<br />
walked right out the door.<br />
Worse than that, he didn’t service his<br />
customer properly because I had to<br />
make an additional trip to another store<br />
to purchase the missing components of<br />
what I needed for my project.<br />
To sell is to serve<br />
When you are servicing a customer well,<br />
you are selling them; you’re selling them<br />
on yourself, on the ideas you provide, and<br />
on the products.<br />
Remember that when you’re selling,<br />
you’re serving – you’re taking care of<br />
Selling is<br />
serving<br />
<br />
customer's<br />
needs with<br />
multiple items<br />
Read the<br />
signals<br />
Don't assume<br />
limitations and<br />
ignore positive<br />
buying signals<br />
Convert<br />
wants into<br />
needs<br />
Use your<br />
expertise to<br />
suggest and<br />
inspire<br />
needs and delivering customer service.<br />
As good a seller as he was, the salesman<br />
in my example ultimately didn’t take care<br />
of my needs.<br />
I wanted to buy the item, but I left the<br />
store without it!<br />
Retailers make their money not by selling<br />
an initial item; they make their money by<br />
selling multiple items to the customer.<br />
We’ve paid to bring customers into the<br />
store through marketing, advertising, and<br />
merchandising, and to have someone wait<br />
on them and to gain their trust, in order to<br />
have them buy something.<br />
Don’t throw all those advantages away by<br />
not maximising the opportunities when<br />
they present themselves. Believe me, the<br />
customer will thank you later!<br />
RICK SEGEL and MATTHEW HUDSON<br />
are founders of retail training and<br />
<br />
Associates.<br />
We are<br />
here to<br />
help fulfil<br />
your ideas<br />
We are here to help you fulfil your ideas. As a<br />
customer-focused Australian business, we aim<br />
to service the needs of the retail and wholesale<br />
jewellery industry by helping to centralise the<br />
development of innovative products and concepts.<br />
For our existing branded products, we offer<br />
packaging, instore displays, care cards and coop<br />
advertising alongside an active social media<br />
campaign to supplement the story of the brand.<br />
We are<br />
here to<br />
make your<br />
job easier<br />
It’s been challenging, but lockdown has been a<br />
helpful time to review the way we present products<br />
on our selling platforms.<br />
To help ensure your online showcase look beautiful<br />
online, we have compiled our product images,<br />
marketing material and logos for your use. Contact<br />
us today for immediate access.<br />
Also offering credit facilities, resizing and repairs,<br />
warranties, customised manufacturing and nextday<br />
delivery.<br />
OUR BRANDS<br />
03 9555 9344<br />
SALES@ PFJ.COM.AU<br />
WWW.PFJ.COM.AU
BUSINESS<br />
Management<br />
Beware the discount trap:<br />
how discounting damages retailers<br />
Still popular as a way to attract customers, discounting can actually cost businesses millions in lost sales.<br />
In fact, BRYAN PEARSON says a higher markdown can prolong a sale.<br />
In the fashion world, hemlines may rise<br />
and fall by the season, but the shelf life<br />
of a discounted $500 skirt can drag on for<br />
days – 106, to be precise.<br />
An analysis of 114 luxury, premium<br />
and mass-market apparel and<br />
accessory retailers found that’s how<br />
long it can take an online luxury retailer<br />
to sell a piece of women’s wear, even<br />
when discounted.<br />
Furthermore, when luxury items such<br />
as jewellery are marked down at a<br />
higher percentage, say 40-50 per cent,<br />
they take 19 days longer to sell than if<br />
marked down 30-40 per cent.<br />
Meanwhile, mass-merchandise items<br />
sell faster at discount, especially<br />
when marked down by less. Women’s<br />
wear sold 11 days quicker when first<br />
discounted from 30-40 per cent, rather<br />
than 40-50 per cent.<br />
The difference cost retailers millions<br />
in needless reductions, according to the<br />
research which was conducted<br />
by Edited, a retail-analytics company<br />
with offices in New York, London<br />
and Melbourne.<br />
The same unusual trends occur across<br />
other fashion sectors, from luxury<br />
apparel to kids’ clothing.<br />
But why? What does it mean?<br />
According to Katie Smith, senior retail<br />
analyst at Edited, merchants fail to<br />
factor in several basic but highlyrelevant<br />
factors.<br />
Additionally, pricing strategies can<br />
be blurred by a range of issues,<br />
such as shopper behaviour and<br />
competitive distraction.<br />
Timing, popularity, and beyond<br />
A key benefit for retailers is that they<br />
have a large volume of data available to<br />
help them analyse pricing, Smith says.<br />
However, this also requires that they<br />
Retailers still<br />
miscalculate<br />
how much<br />
to discount<br />
because they<br />
fail to include<br />
pertinent factors<br />
in the formula,<br />
such as timing,<br />
product type,<br />
category and<br />
popularity<br />
understand what they have and how to<br />
use it.<br />
Retailers still miscalculate how<br />
much to discount because they fail<br />
to include pertinent factors in the<br />
formula, such as timing, product type,<br />
category and popularity.<br />
There may also be a psychological<br />
effect at play, in that the shopper may<br />
perceive a larger discount to mean the<br />
product is undesirable.<br />
As consumers purchase more<br />
goods online and expect to only buy<br />
those goods when they’re ‘on sale’,<br />
Smith believes that retailers must<br />
invest in technologies that give them<br />
a holistic view of the market and<br />
consumer demand.<br />
“Today, retailers can use analysis<br />
tools to understand a trend’s demand<br />
before they even put a style into<br />
production, which helps buyers know<br />
how many orders to place,” she<br />
60 | <strong>June</strong> <strong>2020</strong>
says, adding that real-time analysis of<br />
competitors and other market segments<br />
helps merchandisers track a trend’s<br />
performance, spot saturation and clear<br />
stock before a decline.<br />
Retailers need to become more adept at<br />
considering how different factors may<br />
affect performance.<br />
Take colour as an example – a specific<br />
item may perform better in one colour<br />
versus another and the result may require<br />
a business to take very different strategies<br />
to ensure the most value is captured<br />
from the line.<br />
Learning from the grocery aisle<br />
Similar factors, from customer spending<br />
habits to selecting which items to<br />
discount, cause supermarkets to make<br />
missteps when determining a pricing or<br />
discount strategy.<br />
These elements should inform pricing<br />
and promotions and can result in a<br />
1-3 per cent increase in sales and<br />
profits above organic growth, according<br />
to Precima, a retail analytics firm.<br />
But which tools put these elements<br />
into play?<br />
Among the most popular is the<br />
competitive price index.<br />
This is the practice of identifying a<br />
competitive price set among competitors<br />
and establishing a target price relative<br />
to that.<br />
The challenge with using this strategy<br />
on its own is it treats all categories<br />
and items equally and doesn’t factor in<br />
spending data.<br />
If the retailer combined insights on<br />
customer price sensitivity, along with<br />
competitive price information and<br />
THE PRICE<br />
IS RIGHT<br />
Discounting<br />
luxury items<br />
can make them<br />
more difficult<br />
to sell<br />
Constant<br />
sales prime<br />
consumers to<br />
only buy at a<br />
discount<br />
Retail analysis<br />
tools can help<br />
determine<br />
correct pricing<br />
Do not set prices<br />
solely based on<br />
competitors<br />
price compliance, they could determine<br />
promotions based on a broader, datadriven<br />
pricing strategy.<br />
Lastly, there is the oversold power of the<br />
loss leader – discounts on price-sensitive<br />
items like eggs – used to lure shoppers in<br />
with the expectation they will spend more<br />
elsewhere, offsetting the discount.<br />
In truth, 25-50 per cent of loss leaders<br />
don’t actually increase traffic or lead to<br />
ancillary purchases, Precima reports,<br />
so analysis is required to find the ones<br />
that work.<br />
Of course, for multi-store retailers, all this<br />
will make a significant difference if prices<br />
are consistent across all stores.<br />
Bryan Pearson is president and CEO of<br />
LoyaltyOne, and has more than 20 years'<br />
<br />
loyalty.com
BEST OF BUSINESS<br />
Marketing & PR<br />
Retail loyalty reality: myths and tips<br />
Sales and discounts can lure customers away from competitors; however, they also exert continuous price pressure<br />
and erode margins. TIM MOULTON <br />
Retailers tend to side with historic best<br />
practices, even when research points in<br />
the other direction. Loyalty marketing,<br />
a concept that started with S&H Green<br />
Stamps in the US in the 1930s, has been<br />
around so long that much of the practice is<br />
now steeped in myth.<br />
When it comes to consumer behaviours<br />
and preferences, there are numerous<br />
retailing myths that don’t hold up to<br />
current research. Here are five:<br />
Myth #1: Discounts are better than<br />
loyalty currency<br />
Discounts can be popular but rewards<br />
from loyalty programs encourage return<br />
visits from high-value customers.<br />
According to Canadian loyalty-currency<br />
management firm Points, program<br />
members spend more per purchase<br />
(54 per cent) when they are rewarded<br />
with loyalty ‘currency’ and 69 per cent<br />
will switch brands to earn their<br />
favourite currency.<br />
While sales and discounts can lure<br />
customers away from other retailers,<br />
they also exert continuous downward<br />
pressure on prices. This, in turn,<br />
erodes profits.<br />
In contrast, rewards programs are<br />
structured to stream revenues back into<br />
the business by attracting the activity<br />
and word-of-mouth influence of a loyal<br />
customer base.<br />
As author Fred Reichheld noted in his<br />
book The Loyalty Effect, loyal customers<br />
spend more, buy higher-margin<br />
products and cost less to serve.<br />
Additionally, a 5 per cent increase<br />
in customer retention rates can<br />
boost profits anywhere from 25 to<br />
100 per cent.<br />
Moreover, when retailers attract a<br />
steady stream of loyal, eager-to-buy<br />
customers, the data and information<br />
that can be unearthed from their<br />
transactions and preferences can lead to<br />
further success.<br />
Myth #2: Consumers want cash back<br />
Consumers treasure extraordinary<br />
opportunities and memories as<br />
much as they like cash. Convinced<br />
Studies have<br />
found that<br />
even though<br />
consumers will<br />
select cash<br />
when given a<br />
choice, they<br />
are actually<br />
<br />
with rewards<br />
programs that<br />
result in a<br />
luxury item or<br />
experience<br />
that consumers will always choose cash<br />
over points/miles, some retailers have<br />
abandoned rewards programs in favour of<br />
cash-back strategies.<br />
However, studies have found that<br />
even though consumers will select<br />
cash when given a choice, they are actually<br />
more satisfied with rewards programs that<br />
result in a luxury item<br />
or experience.<br />
These experiences are those that they<br />
otherwise would not have purchased for<br />
themselves such as concert tickets or an<br />
exotic vacation, and will foster the loyalty<br />
that brings consumers back again and<br />
again.<br />
Pro tip: Make customers feel appreciated<br />
with rewards that create special moments.<br />
Myth #3: Loyalty programs only work for<br />
high-priced items<br />
Bigger is not always better. Consumers like<br />
earning loyalty currency – points and miles<br />
– whether the earning rate is in big chunks<br />
or small increments. Our survey of 1,500<br />
members in the UK and North America<br />
found that 68 per cent appreciate the ability<br />
62 | <strong>June</strong> <strong>2020</strong>
JUST<br />
REWARDS<br />
Loyalty program<br />
members spend<br />
more and<br />
switch brands<br />
when rewarded<br />
Customers are<br />
satisfied with<br />
earning rewards<br />
incrementally<br />
Program<br />
members are<br />
more open<br />
to branded<br />
communication<br />
Partners can<br />
decrease the cost<br />
of launching a<br />
loyalty program<br />
to earn small amounts of points and miles.<br />
Meanwhile 48 per cent set long-term goals for<br />
which they plan to earn incrementally.<br />
Pro tip: Offer opportunities to do more with<br />
points/miles so that smaller balances have<br />
higher value.<br />
Myth #4: Consumers don’t want more marketing<br />
communications<br />
The personalised messaging from loyalty<br />
programs actually helps eliminate<br />
communication clutter.<br />
Members of loyalty programs behave like<br />
bank customers – they check their accounts<br />
frequently, keep tabs on balances and are<br />
constantly looking for ways to bolster their<br />
accounts. In fact, offers mailed to loyaltyprogram<br />
members have an open rate of 41<br />
per cent compared to a 19 per cent industry<br />
average according to findings from SpotOn<br />
Data.<br />
bravery<br />
direction<br />
good<br />
luck<br />
my<br />
dreams<br />
vitality<br />
Pro tip: Keep communications relevant by<br />
providing key information such as limited onetime<br />
offers or bonus earning opportunities.<br />
Myth #5: Loyalty programs are too expensive<br />
Creating a loyalty program can be a large<br />
financial endeavour that requires more<br />
marketing, technology and financial<br />
infrastructure than many retailers are capable<br />
of managing.<br />
my<br />
family<br />
An option is to partner with an existing program<br />
with retailer benefits.<br />
It gives customers the chance to build their<br />
balances in their favourite airline, hotel, etc<br />
and can also boost a retailer’s brand equity via<br />
affiliation with a name-brand partner. Partner<br />
programs bring new and potentially large<br />
customer base for visibility, marketing and<br />
outreach.<br />
Pro tip: Search for partners that enhance your<br />
brand image and also extend your brand into<br />
high-potential customer segments.<br />
Loyalty programs can help retailers who are<br />
struggling with stiff competition, empowered<br />
consumers, the constant pursuit of more<br />
customers and a need for increased revenue.<br />
The first step toward loyalty program success is<br />
to build any loyalty strategy on sound business<br />
principles rather than gut feel.<br />
TIM MOULTON is <br />
Points, a global leader in loyalty currency<br />
management. points.com<br />
Offer:<br />
FREE SHIPPING<br />
on orders over AUD$300 until 31 st July<br />
As we continue to face uncertain times, we want to reach out<br />
with wishes of love, hope and strength and remind you that Stow<br />
Lockets remains committed to supporting our valued retailers.<br />
Stow Lockets can be carefully stylised, creating a sentimental<br />
heirloom jewellery piece for your customers.<br />
One which will be cherished forever.<br />
sales@stowlockets.co.nz | +64 7 281 1509<br />
stowlockets | #preciousstories | stowlockets.com
BEST OF BUSINESS<br />
Logged On<br />
Does Google know you’re in business?<br />
<br />
online tool makes it easier than ever. KATIE BUNCH explains how to best utilise Google My Business.<br />
Are you looking for digital marketing<br />
success? Google My Business (GMB) is a<br />
tool that can help prospective customers<br />
find you online and in person.<br />
One of the best things about GMB is that<br />
it is free to set up and maintain, and helps<br />
you manage your online presence while<br />
allowing you to seek greater exposure in<br />
your local area.<br />
Read on to find out how it works, and why<br />
it can help you grow your business.<br />
The fundamentals<br />
Whether you are a bit of a digital<br />
marketing pro or if this is your first foray<br />
into online marketing, it’s important to go<br />
over the basics of GMB.<br />
GMB is a free listing that provides you<br />
with a public identity and presence in<br />
Google’s search results.<br />
The information you provide about your<br />
business will appear in both Google<br />
Search and as a local listing on Google<br />
Maps. Google reports that up to 97 per<br />
cent of users search for local products<br />
and services, but only 37 per cent of<br />
businesses have claimed a GMB local<br />
business listing.<br />
Getting started with GMB is<br />
straightforward and simple; you can<br />
simply search on Google to see if your<br />
business is listed already. If your business<br />
has been around for a few years, it is<br />
likely that you have a GMB listing — all<br />
you need to do is claim it.<br />
Set up your listing<br />
If you’re not sure if you have a GMB<br />
listing, visit google.com/business and<br />
enter your business information. If you<br />
have a listing, you will be notified of this.<br />
“Encourage your users to review your<br />
business and respond to their feedback<br />
online – don’t just “set and forget” your<br />
listing!”<br />
If you need to set up a new business<br />
listing, then you can go through the steps<br />
to fill out your details. Choose the right<br />
category for your business and select<br />
whether you offer goods or services to<br />
customers in your local area.<br />
If you are serving customers in local<br />
While Google’s<br />
exact algorithms<br />
are still a bit of a<br />
mystery, it’s fair<br />
to say that if you<br />
are located in a<br />
certain area, are<br />
creating local<br />
content, and<br />
getting reviews<br />
from people in<br />
that area, Google<br />
will display your<br />
listing higher<br />
areas, choose “yes” next to the “I deliver<br />
goods and services to my customers at<br />
their locations” option. Select the box<br />
next to “I serve customers at my business<br />
address” to ensure that your complete<br />
address appears on Google.<br />
It’s also important to make sure your<br />
business’ stated hours are correct and<br />
that your business location is staffed and<br />
able to receive customers during those<br />
times. Once you have submitted your<br />
business information, you will need to<br />
verify your listing.<br />
Verify your listing<br />
It is simple to verify your Google listing by<br />
using your mailing address. Google will<br />
send you a postcard to the address you<br />
supplied with a code on it. Use this code<br />
to confirm your listing and get your listing<br />
live! It’s likely that you will have verified<br />
your business within a week.<br />
Improving your Google ranking<br />
Several factors determine where you<br />
rank online – but some of the most<br />
important include the proximity of your<br />
64 | <strong>June</strong> <strong>2020</strong><br />
64 | <strong>June</strong> <strong>2020</strong>
LEVERAGE<br />
YOUR LISTING<br />
1. Appeal to<br />
local shoppers<br />
by ensuring<br />
you appear on<br />
Google Maps<br />
2. Rank more<br />
highly in Google<br />
searches by<br />
confirming your<br />
status as a local<br />
business<br />
3. Attract<br />
potential<br />
customers by<br />
adding highquality<br />
photos to<br />
your listing<br />
4. Generate<br />
word-of-mouth<br />
and social proof<br />
by encouraging<br />
customers to leave<br />
Google reviews<br />
5. Efficiently<br />
communicate<br />
changes such<br />
as new opening<br />
hours by updating<br />
your listing<br />
business to the person searching,<br />
the relevance of your ad and the<br />
prominence of your listing.<br />
Proximity is key because you want to<br />
appear in the searches people are doing<br />
in their local area.<br />
While Google’s exact algorithms are still<br />
a bit of a mystery, it’s fair to say that if you<br />
are located in a certain area, are creating<br />
local content, and getting reviews from<br />
people in that area, Google will display<br />
your listing higher.<br />
Keeping your listing relevant means<br />
displaying clear, correct and specific<br />
information; your business description<br />
should be up to date.<br />
This is pretty straightforward and ensures<br />
that when people click on your listing that<br />
they get the right information.<br />
Finally, prominence is about ensuring that<br />
you have customer reviews, local events,<br />
local content and information that shows<br />
you are committed to being a business in<br />
your local area.<br />
It’s always possible to improve your<br />
ranking and listing; as anyone who has<br />
done some SEO or digital marketing<br />
before will know, the process is one of<br />
continual improvement. Use details and<br />
keywords in your business description<br />
like the suburb or area you service, and<br />
ensure that your phone number and<br />
opening hours are accurate!<br />
Next, add some great high-quality photos<br />
of your business; images should look<br />
professional and show up clearly on all<br />
devices, from desktop computers to iPads<br />
and mobiles.<br />
Finally, encourage your users to review<br />
your business and respond to their<br />
feedback online – don’t just “set and<br />
forget” your listing!<br />
KATIE BUNCH <br />
specialist and Google AdWords team<br />
<br />
kymodo.com.au<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
www.ikecho.com.au | enquiries@ikecho.com.au<br />
Tel: (02) 9266 0636 | Fax: (02) 9266 0969
SAMS GROUP<br />
SAMS GROUP<br />
SAMS GROUP<br />
AUSTRALIA<br />
AUSTRALIA<br />
AUSTRALIA<br />
Access one one of of the the largest inventories of of Argyle Argyle Pink Pink Diamonds Diamonds in Australia in Australia<br />
All<br />
All<br />
SGA<br />
SGA<br />
Argyle<br />
Argyle<br />
<br />
Whether you are after a tender stone for investment, a few melee to complete<br />
Whether you are after a tender stone for investment, a few melee to complete<br />
a custom design or just a single<br />
a custom design or just a single<br />
Access one of the largest inventories of Argyle Pink Diamonds in Australia<br />
All SGA Argyle <br />
Whether you are after a tender stone for investment, a few melee to complete<br />
a custom design or just a single<br />
<br />
<br />
T: 02 9290 2199 F: 02 9262 1630 E: W: Samsgroup.com.au<br />
T: 02 9290 2199 F: 02 9262 1630 E: W: Samsgroup.com.au
Access one of the largest inventories of Argyle Pink Diam<br />
All SGA Argyle <br />
Whether you are after a tender stone for investment, a few<br />
a custom design or just a single<br />
<br />
Access one of the<br />
largest inventories of<br />
T: 02 9290 2199 F: 02 9262 1630 E: <br />
Argyle Pink Diamonds<br />
in Australia<br />
All SGA Argyle Pink Diamonds are cut and polished by<br />
<br />
Whether you are after a tender stone for investment, a<br />
few melee to complete a custom design or just a single