Jeweller - June, Edition II 2020

THE FUTURE OF RETAIL | Lessons of the Pandemic
“How is the PPE [personal protective
equipment] going to be implemented
in a way that’s still welcoming and not
off-putting?”
She emphasises that the answers to these
questions are highly dependent on the
location of the store and its customer profile.
Consumer behaviour
Finally, the pandemic has brought to the fore
key trends in consumer behaviour which
influence purchasing patterns and attitudes
to shopping – part of what Bird defined as
the ‘heart’ category.
A recent report series by McKinsey &
Company, which followed 12 Australian
families throughout the COVID-19 lockdown,
noted several insights:
• ‘Socially conscious’ values – The
Australian culture of mateship and unity
was strengthened during the pandemic.
Bird identified this as an increase in
orientation toward local businesses –
consumers’ desire to support their local
community through local retailers.
“Of course we will see the Amazons,
Walmarts and large retailers strengthened
during these pandemic times. But I think
at the other end of the spectrum too, we
will see really interesting small retailers
that will purely focus on the local
community,” he predicts.
Craig Flanders, CEO advertising agency
Spinach, whose clients include Liquorland,
Baby Bunting, and The Reject Shop, says,
“Also here on home soil, we can expect to
see a renewed interest in products grown
and made locally as nationalism around the
world increases. This comes off the back
of the loss of security and safety, driven
by being too reliant on just-in-time supply
chains from the global village.
“People will want to buy Australian products
from Aussie businesses... For brands with an
Aussie origin story to tell, this is the time to
capitalise on it.”
Craig Flanders
Spinach Agency
“Here on home soil,
we can expect to see
a renewed interest in
products grown and made
locally as nationalism
around the world
increases. This comes
off the back of the loss of
security and safety, driven
by being too reliant on
just-in-time supply chains
from the global village.
People will want to buy
Australian products from
Aussie businesses.”
Jon Bird
VMLY&R (Australia & New
Zealand)
“Of course we will
see the Amazons,
Walmarts and large
retailers strengthened
during these pandemic
times. But I think at
the other end of the
spectrum too, we will
see really interesting
small retailers that will
purely focus on the local
community.”
Elle Hill
Hill & Co.
“What I’ve been hearing
from retail store owners is
that purchases of smaller
items were being ‘batched’
together to get one
more-important item that
they felt aligns with their
morals, their worldview,
that has a story that they
felt could connect to them,
and that had more value
such that it would endure.”
Manning also advises jewellers to “support
local” in their supply chain: “We all as
retailers ask our customers to buy local
and yet so often the materials that go
into jewellery manufacture and retail in
Australia are from overseas.
“These elements represent
marketing opportunities for
jewellers, as jewellery is
so intrinsically associated
with positive memories and
experiences. Care for the
broader community, the
environment, and reflecting
positive attitudes can all
be central to a retailer’s
messaging”
“By supporting local mining and suppliers
you can lower price fluctuation and supply
risks in difficult times.”
• Developing healthy habits – Self-care,
positivity, and mental health became key
priorities for Australians.
These elements represent marketing
opportunities for jewellers, as jewellery
is so intrinsically associated with positive
memories and experiences. Care for the
broader community, the environment,
and reflecting positive attitudes can all be
central to a retailer’s messaging.
“In marketing in the past 10 years, the
buzzword was ‘authenticity’. Some brands
found that by adding, ‘founded in 1889’ [to
the logo], suddenly you were authentic.
I think we are going to see a flip from
a focus on authenticity to a focus on
responsibility,” Van Belleghem predicts.
“Not in a fluffy way, where you make
a PowerPoint presentation and think
that you’ve saved the world, but actually
looking at society and thinking how you
can add value.”
Van Belleghem advises businesses
to “involve your customers and your
employees” in defining socially-positive
goals, and “don’t be shy about it: tell the
world about your efforts, show the world
you are proud while maintaining a humble
tone of voice.”
• ‘Deliberate’ shopping choices –
COVID-19 restrictions broke many preexisting
habits, giving consumers time to
re-evaluate how they spend their time and
money away from status symbols.
Hill has observed a continuation of the
consumer trend toward sustainability,
accountability, and narrative-driven sales:
“What I’ve been hearing from retail store
owners is that purchases of smaller items
were being ‘batched’ together to get one
more-important item that they felt aligns
with their morals, their worldview, that
has a story that they felt could connect to
them, and that had more value such that it
would endure.”
She predicts that sales of ‘heirloom’
pieces will increase explaining, “That
heirloom may be $99 for 1 person, it
might be $599 for another and $1000 for
another... [Consumers want] a sense of
permanence in a time when a lot of things
don’t seem as permanent as they did.”
Among the most financially disadvantaged
by the pandemic were Millennials and Gen
Z – two cohorts which together represent
40 per cent of the Australian population –
who are defined by a desire for meaningful
products and affordability.
With a sound financial plan, safety
strategy, e-commerce offering, and
a marketing message and product
assortment that reflect consumers’ new
values, Australian jewellery retailers who
have overcome the challenges of the past
six months are well-placed to meet the
demands of consumers and thrive in the
‘next normal’.
June 2020 | 49