Jeweller - September 2020

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY SEPTEMBER 2020 

Best of the bench 

SHOW-STOPPING PIECES FROM 

LOCAL JEWELLERS 

Star power 

ASSESSING THE VALUE OF CELEBRITIES IN 

WATCH AND JEWELLERY MARKETING 

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De Beers Group SYNTHdetect 100% $18,500 

NGTC GV5000 99.00% $43,200 

DRC Techno J-Smart 89.40% $22,499 

Arotek/GII QChKAdC 88.90% $7,700 

DRC Techno D-Secure+ 85.90% $11,999 

DRC Techno J Detect 9000 85.40% $9,999 

Gemometrics GemPen 84.90% $2,300 

DRC Techno J.Mini 84.40% $6,499 

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S A MS GR O UP 

A U STRA L I A 

WE’LL RISE ABOVE THE STORM 

These are unsettling times, with COVID-19 impacting our 

professional lives and those close to us. We understand it 

is challenging to operate under current restrictions, however 

we’re getting through this together one day at a time and 

there is a light at the end of this tunnel. 

Despite the circumstances, take care and make time to 

do the things you love with the people you love; it’s 

never been more important to support one another, remain 

positive and keep smiling. 

Wishing you a safe passage through this difficult period. 

We’ll rise above the storm. 

Steve Der Bedrossian 

CHIEF EXECUTIVE OFFICER 

ARGYLE PINK 

DIAMONDS 

Semi Precious Jewellery 

T: 02 9290 2199 F: 02 9262 1630 E: Pink@samsgroup.com.au W: Samsgroup.com.au

SEPTEMBER 2020 

Contents 

This Issue 

8 Upfront 

10 

FACTS & FIGURES 

COVID-19 Update 

12 News 

25 

LEARN ABOUT GEMS: BACK IN TIME 

Peaches and pinks: a peek at Padparadscha 

26 Jewellers Showcase 

30 MARKETING FEATURE 

Celebrity sellers 

4What is the value of a famous face? 

Jeweller examines the power of celebrity 

endorsements in the watch and jewellery 

sector and reviews iconic campaigns. 

Feature 

30 

MARKETING FEATURE 

Brand ambassadors: More than face value 

Better Your Business 

47 

BUSINESS STRATEGY 

CHRIS PETERSEN reveals how small businesses can survive online competition. 

25 

LEARN ABOUT GEMS 

4Peek at the 

peaches and pinks 

of the Padparadscha 

sapphire 

50 

52 

54 

56 

SELLING 

Hone your sales skills in everyday situations, advises SUE BARRETT. 

MANAGEMENT 

Bigger isn’t always better when it comes to business, writes KARYN GREENSTREET. 

MARKETING & PR 

DALE FURTWENGLER explores the conflict between marketing and sales strategies. 

LOGGED ON 

You don’t need to spend big to attract online customers, says HARSH AJMERA. 

26 JEWELLERS SHOWCASE 

Across the bench 

4A dazzling showcase of 

outstanding pieces by talented 

jewellery designers from around 

Australia and New Zealand. 

FRONT COVER 

Timelessly beautiful, 

Coeur de Lion marries 

clear, minimalist design with 

unusual colour combinations 

to create jewellery that is both 

beautiful and unconventional. 

September 2020 | 7

Upfront 

#Instagram hashtags to follow 

Alpha Order 

#cuffbracelet 

170,177+ POSTS 

#futureheirlooms 

183,427+ POSTS 

#paraibatourmaline 

66,780+ POSTS 

#preciousstones 

339,768+ POSTS 

Stranger Things 

Weird, wacky and wonderful 

jewellery news from around the world 

Obama-rama 

#jewelleryideas 

22,931+ POSTS 

#jewelsofinstagram 

302,442+ POSTS 

#marquisediamond 

42,981+ POSTS 

HISTORIC GEMSTONE 

Andamooka 

Opal 

Ahead of the Royal Tour of Australia in 

1954, the South Australian government 

commissioned Melbourne opal company 

Altmann & Cherny to source a specimen 

of exceptional quality to be presented to 

Queen Elizabeth II (right). 

#rubyring 

104,044+ POSTS 

#sculpturaljewelry 

40,844+ POSTS 

#wriststyle 

42,629+ POSTS 

The result was the Andamooka Opal, a 203-carat crystal opal 

of incredible size and intensity from the Andamooka opal fields. 

Adelaide jeweller Wendts set the gemstone in a palladium-anddiamond 

necklace, with matching earrings and cufflinks. The set 

remains part of Her Majesty’s personal jewellery collection and was 

displayed at Buckingham Palace in 2009. 

Trendspotting 

4Playful jewellery is one of the most 

popular trends of 2020 – and with 

warm spring weather on the horizon, 

consumers are turning to fun, almost 

child-like accessories to express 

themselves. From friendship bracelets 

to brightly-coloured beads and novelty 

themes, playful jewellery is fair game. 

4A gold necklace bearing the 

slogan ‘vote’, worn by former 

US First Lady Michelle Obama at 

the recent Democratic National 

Convention broadcast, has brought 

huge exposure to small jewellery 

brand By Chari. Founder Chari 

Cuthbert said she had experienced 

a “massive influx in orders and 

press inquiries” and “non-stop text 

messages, emails and phone calls” 

since Obama wore the piece. 

Secrets of the grave 

4A Polish cemetery has yielded 

a treasure trove of ancient 

jewellery. Analysis of more than 

3,500 pieces – which were crafted 

by the Goth and Gepid tribes – 

showed they were famliar with 

granulation, fire gilding, and 

filigree techniques. Intriguingly, 

the gold and silver used was of 

unexpectedly high purity; it is 

still unknown how the tribes 

refined the metals, as no refining 

equipment has been found. 

Almost 40 

Australian banks, 

including Suncorp, 

have enabled 

their cards to be 

processed by Eftpos 

for card-on-file 

digital payments. 

Digital Brainwave 

Eftpos has introduced a new digital payment 

option for Australian businesses who accept 

card-on-file payments from customers – that 

is, a card that has been securely stored in 

order to make regular payments. 

Stephen Benton, CEO Eftpos, explained, “It 

is early days but the service will increasingly 

enable more small and medium businesses 

to have Australia’s most popular cards – 

multi-network debit cards – processed by 

Eftpos, and potentially deliver significant 

cost savings. These potential savings are 

particularly important for small businesses 

during COVID-19 and recovery.” 

Top Product 

Ahead of Father’s Day, all eyes are on 

masculine accessories. The Hardware 

By Cudworth Dog Tag Pendant is 

crafted from ion-plated black stainless 

steel in a tyre pattern, with a 55cm 

chain. Matching cuff, cufflinks and rings 

available. Distributed by Cudworth. 

Robbery rouse 

4An Indian jeweller has fallen 

afoul of authorities after “scripting 

his own armed robbery”. 

According to local reports, the 

jeweller claimed a burqa-clad 

woman entered his workshop and 

robbed him of more than 2.5kg 

of gold jewellery and bullion at 

gunpoint. However, CCTV footage 

found the interaction between 

the two was “very civilised” and 

“somewhat friendly”. He later 

confessed to staging the robbery in 

order to collect insurance money. 

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY 

Published by Befindan Media Pty Ltd 

Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | info@jewellermagazine.com 

Publisher & Managing Editor Angela Han angela.han@jewellermagazine.com • Assistant Editor Arabella Roden arabella.roden@jewellermagazine.com 

Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com • Subscriptions info@jewellermagazine.com 

Copyright All material appearing in Jeweller is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd 

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 

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 

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 

liabilities arising from the published material.

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REAL TESTIMONIALS FROM OUR RETAILERS 

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“It’s a 

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COVID-19 Update 

12% 

retail turnover increase 

for July 2020, when 

compared with July 2019 

* Australian Bureau of Statistics 

24 October 

removal of capacity restrictions 

on West Australian businesses 

with introduction of ‘phase five’ 

$600,000 

package to support 

advocacy groups such as 

Tenants Victoria to support 

vulnerable businesses and 

assist in rent mediation 

The ANZ-Roy Morgan Consumer 

Confidence Rating for the week 

of 22 August rose to 92.7, the 

highest it has been since 27 

June and up 42 per cent since 

March’s record low of 65.3 

* ANZ-Roy Morgan Survey of 1,547 Australians 

SALLY CAPP 

LORD MAYOR OF MELBOURNE 

“There is cautious optimism... 

Because we can start to see 

that finish line, we can start 

to feel hopeful that our businesses 

can open their doors again but 

only if we continue to see this 

good progress. The need across 

our small businesses particularly 

is enormous and we need to 

keep responding.” 

BILL EVANS 

CHIEF ECONOMIST, WESTPAC 

“I have never seen a more uncertain 

economic outlook than we currently 

face both domestically and globally. 

With the stage four restrictions 

now likely to stay in place for most 

of September, Victoria’s recovery 

will be delayed until the December 

quarter when we expect the 9 per 

cent loss in the September quarter 

to be partially reversed.” 

NOLA WATSON 

CEO, BUSINESS NSW 

“Early indications are that while 

[the extension of JobKeeper 

payments until March 2021 has] 

reduced the number of apprentice 

cancellations and suspensions, 

more is needed to support 

new apprentices and create 

employment opportunities for 

young people.” 

5% 

increase in credit and 

debit card spending 

for the week ending 21 

August, compared with 

the same week in 2019 

* Commonwealth Bank of Australia credit and 

debit card data analysis 

50,000 

estimated shortfall 

of apprentices in 2021 

without additional 

government support 

and funding 

* Business NSW report, ‘Skilling Australia 

for a better future’ 

26,000 

number of rent relief 

agreements registered with 

Consumer Affairs Victoria over 

the four months to August 2020 

* State Of The States September 2020 Economic 

Performance Report, CommSec 

John Carter from the 

US, India’s Anantha 

Padamanaba, 

Steven Tranquilli 

from Italy, and Hong 

Kong-based Alan 

Chan will share 

insights. 

CIBJO 

4The second season of 

CIBJO’s webinar series 

Jewellery Industry Voices begins 

on 3 September with ‘Gearing 

Up for the Holiday Seasons 

During a Pandemic’. 

The internationally-focused 

webinar features senior 

members of the jewellery 

industry discussing retail 

strategies, including 

e-commerce, safety protocols, 

the likely mood of holiday 

shoppers, inventory and pricing. 

The digital Fair 

will include 

sections for 

jewellery, 

loose gems 

and diamonds, 

services, displays 

and equipment. 

Jewellery & Gem 

Digital World 

4Informa Markets, the 

organiser of international 

jewellery trade shows 

including the Hong Kong 

Jewellery & Gem Fair, has 

announced a new ‘bespoke 

digital event’, Jewellery & 

Gem Digital World. 

Th event will take place from 

27-29 October 2020 and will 

include product and servicebased 

exhibitions as well 

as webinars. 

Jennifer Shaheen 

will cover how 

retailers can best 

leverage customer 

information 

from the likes 

of Facebook and 

Google Ads. 

National Jeweler 

4US jewellery industry 

publication National Jeweler 

will begin the next series of 

its My Next Question webinar 

series in September. 

On 15 September, associate 

editor Lenore Fedow and 

Jennifer Shaheen, president 

The Technology Therapy 

Group, will discuss using 

data to increase customer 

knowledge and sales in 

‘How to make the most of 

your data’. 

10 | September 2020

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Phil Edwards 

MANAGING DIRECTOR, DGA 

For more details please call (02) 9417 0177 and talk to your Sales Executive to discuss.

News 

Gold dealers linked to 2017 Melbourne robberies sentenced over stolen goods 

The three men were initially charged with 

more than 450 offences each, but a deal with 

prosecutors saw them plead guilty to single 

charges earlier this year. 

On 25 August, Judge Johns sentenced Alejandro 

Mendieta Blanco, 34, to four months in jail and 

a two-year community corrections order for 

purchasing stolen property valued at $29,000. 

He noted that Mendieta Blanco had immigrated 

to Australia alone as a teenager, and had built 

a successful business as well as supporting 

charitable causes. 

Alejandro Mendieta Blanco (above) and his brother Julio have been sentenced for their roles in purchasing jewellery 

and watches stolen from Melbourne stores in 2017. 

However, he called it “a great shame” that 

his good reputation had been “sullied” by 

“succumbing to the temptation of easy money 

by dishonest means”. 

Colombian-born brothers Alejandro and Julio 

Mendieta Blanco, who previously operated the 

Gold Buyers Melbourne business, have been 

sentenced after pleading guilty to receiving stolen 

goods linked to the 2017 Melbourne jewellery 

store robberies. 

The pair were arrested in October 2017 following 

police surveillance and an undercover operation, 

which found the brothers and a long-term 

employee, Chey Tenenboim, were purchasing 

gold jewellery and watches without asking for 

identification, as is legally required. 

On 25 August, Judge Johns sentenced Alejandro 

Mendieta Blanco, 34, to four months in jail and 

a two-year community corrections order for 

purchasing stolen property valued at $29,000” 

In a previous hearing, Judge Scott Johns, of the 

County Court of Victoria, described their actions 

as “acting as a customer for the thief” and “very 

dishonest”. 

The Age and The Sydney Morning Herald report 

that Gold Buyers Melbourne recorded turnover 

of $66 million in the 2015-16 financial year. 

Mendieta Blanco previously flaunted a luxurious 

lifestyle on social media; in June 2017, four 

months before his arrest, pop star Delta 

Goodrem had serenaded him at his 30th birthday. 

Julio Mendieta Blanco, 37, was sentenced to 

a two-and-a-half-year community corrections 

order after pleading guilty to receiving stolen 

goods valued at $45,000, but was spared jail. 

The Age reports that he had read a letter in court 

expressing remorse and apologising to those who 

had been robbed; he also claimed to have been 

CONTINUED ON PAGE 22 

New Australia-first diamond resource now available for jewellery retailers 

involved with the selection of the diamond for their 

custom-made piece of jewellery. 

It will also allow the retailer to communicate their 

diamond expertise to the client during the search 

process.” Meanwhile, the Wholesale Price Portal 

allows for quick price comparisons, allowing retailers 

to find the best value diamond that meets their 

specifications. 

Global Diamond Vault is designed to assist retailers in sourcing the best value stones, both at wholesale and 

alongside customers. 

Following a three-year development process, 

the Nationwide Jewellers buying group has now 

launched Global Diamond Vault, a diamond-sourcing 

program that lists more than 20,000 stones from 

suppliers in Australia, New Zealand, Antwerp, 

Mumbai, Hong Kong and New York. 

The program allows Nationwide members to easily 

compare diamonds from the group’s preferred 

suppliers using a range of different search filters, and 

includes both a Wholesale Price Portal and Retail 

Price Portal – the latter of which has been designed 

for retailers to use in conjunction with customers. 

While there are several international digital diamond 

sourcing platforms currently operating – including 

the World Federation of Diamond Bourses’ Get 

Diamonds and Rapaport’s RapNet – it is believed 

the Global Diamond Vault is the first one available to 

jewellers in Australia and New Zealand that includes 

an integrated customer-focused facility. 

Colin Pocklington, managing director Nationwide, 

said, “We expect the Retail Portal to be very popular 

with customers, as it allows them to be highly 

“We expect the Retail Portal to be 

very popular with customers, as it 

allows them to be highly involved with 

the selection of the diamond for their 

custom-made piece of jewellery” 

– Colin Pocklington, Nationwide Jewellers 

Pocklington said the Global Diamond Vault 

represented another addition to Nationwide’s 

existing diamond marketing programmes, including 

the annual Antwerp diamond-sourcing trip which 

will be held as a virtual event in September. 


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Rare colour diamonds found at Ellendale site 

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The fancy yellow diamonds – unearthed by India Bore Diamond Holdings – display a rare purple fluorescence. 

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Australian mining company India Bore Diamond 

Holdings (IBDH) has unearthed yellow diamonds 

with a rare purple fluorescence at the Ellendale 

diamond field in Western Australia. 

The natural fancy colour diamonds belong to a 

“large alluvial diamond deposit” and display the 

“highly attractive” fluorescence under ultraviolet 

light. Patrick Stringer, director IBDH, said, “The 

purple colour came as a complete surprise and 

may indicate that a new primary source of 

diamonds is nearby. 

“So far, we know that these special diamonds 

are contained within a specific area known as the 

L-Channel. We have a very detailed understanding 

of the L-Channel deposit, but we never expected to 

discover that brilliant fancy yellow diamonds would 

fluoresce purple.” 

Fluorescence is caused by variations in the atomic 

structure. According to the Gemological Institute 

of America (GIA), approximately 25–35 per cent 

of diamonds show fluorescence, with the most 

common colour being blue. Diamonds can also 

display yellow, orange, red, white, and green 

fluorescence – however, this is considered rare. 

While fluorescence is not a grading factor, unlike 

colour, clarity, cut, and carat, it is included in GIA 

grading reports. 

Some consider fluorescence undesirable, believing 

it creates a “milky”, “hazy” or “oily” appearance 

in white diamonds. However, Russian mining 

conglomerate Alrosa – the world’s largest diamond 

producer by volume – recently began marketing 

naturally fluorescent stones under its Luminous 

Diamonds brand. 

IBDH has tasked Delta Diamond Laboratory in 

Perth with further investigating the nature of the 

Ellendale diamonds’ unusual fluorescence. 

John Chapman, a scientist with Delta Diamond 

Laboratory, said, “Violet or purple fluorescence 

is normally associated with blue diamonds, so 

the fluorescence of these Ellendale fancy yellow 

diamonds is quite rare.” 

“The purple colour came as a complete 

surprise and may indicate that a new 

primary source of diamonds is nearby. So 

far, we know that these special diamonds 

are contained within a specific area” 

– Patrick Stringer, India Bore Diamond Holdings 

The Ellendale diamond field is estimated to contain 

at least 1.3 million carats of gem-quality diamonds, 

including fancy yellow diamonds. IBDH is one of two 

companies currently exploring diamond deposits in 

the region, which is located approximately 135km 

east of Derby in the West Kimberley. 

ASX-listed Gibb River Diamonds – formerly known 

as POZ Minerals – was granted exclusive mining 

and exploration leases for another section of the 

site in January 2020; the main Ellendale Mine had 

lain dormant for five years following the liquidation 

of its previous operator, Kimberley Diamond 

Company. 

Ellendale – which has been producing diamonds 

since 1976 – was once the world’s premier source 

for yellow diamonds. With the closure of the Rio 

Tinto-operated Argyle Mine at the end of 2020, it 

remains the most promising option for Australian 

commercial diamond production. 

info@easyreadtimeteacher.com 

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While the Coronavirus has had a devastating impact 

on the industry, we have been able to focus on 

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with better service and a greater business advantage. 

B 2 B B U S I N E S S P O R TA L 

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B R A N D U P A T E S 

MASER ATI 

G EORG INI 

OUI & M E 

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MAU RICE L ACROIX 

This January we 

launched the Maserati 

watch range. This 

premium Italian Lifestyle 

Collection is the epitome 

of quality and style. 

Since taking over 

Georgini in April last 

year, Georgini has 

grown by an incredible 

67% in the quarter 

leading up to Christmas. 

We are set to launch 

popular French brand 

‘Oui & Me’, a well-priced, 

feminine watche brand 

with floral and pastel 

motifs. Available August. 

Next month, we are 

relaunching Morellato 

Watch Straps, including 

the ever popular ‘Easy 

Click’ and ‘Green’ 

Collections. 

We re-launched the premium 

Swiss brand Maurice Lacroix 

into Australia and New 

Zealand in late 2019. Since 

this time, the new Aikon 

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WWW.W E S T E N D C O LLE C T I O N . C O M . A U

News 

In Brief 

Buying group launches 2020 

Apprentice of the Year Competition 

De Beers reduces 

diamond prices 

4 Following a 54 per cent drop in revenue 

for the first half of 2020, De Beers will cut 

the price of rough 1-carat diamonds by 

9 per cent, according to multiple media 

reports. The decision was reportedly 

motivated by sluggish demand and 

increased competition from smaller 

mining companies. The price of smaller 

stones will remain unchanged. De Beers 

previously announced a reduced production 

target of 25–27 million carats for 2020. 

Tiffany Diamond makes 

film debut 

4The Tiffany Diamond will make its 

first film appearance in the upcoming 

Agatha Christie mystery Death On The 

Nile. The 128-carat canary yellow stone, 

which is set in a diamond necklce, will 

be worn by actress Gal Gadot. Just three 

other women have donned the diamond 

since it was unearthed in 1877: socialite 

E. Sheldon Whitehouse, actress Audrey 

Hepburn, and entertainer Lady Gaga. 

Rare Rolex sets auction 

house record 

4A 1978 Rolex Military Submariner has 

broken the watch sale record of auction 

house Fellows, being sold to a telephone 

bidder for £165,200 ($AU299, 390). The 

watch is one of just 1,200 models which 

were manufactured for British Special 

Forces and never available for public 

purchase. Fellows set a price guide of 

£55,000–70,000, which was exceeded 

during a five-minute bidding war. 

442-carat diamond 

found in Lesotho 

4Mining company Gem Diamonds has 

reported the discovery of a 442-carat 

Type II white diamond at its Letšeng 

mine in Lesotho, in southern Africa. The 

stone is the largest gem-quality diamond 

to be unearthed at the mine this year 

and the second-largest from Africa, 

surpassed only by the 549-carat stone 

mined by Lucara at the Karowe Mine in 

Botswana. The Letšeng stone’s value is 

estimated at $US18 million. 

Judy Cameron – who will join the judging panel this year – presents the Nathan Cameron Perpetual Trophy 

to the 2019 Nationwide Jewellers Apprentice of the Year, Jessica Garbo of Penrith Jewellery Workshop. 

The Nationwide Jewellers buying group 

has kicked off its annual jewellery design 

and manufacturing competition for 

apprentices in Australia and New Zealand, 

marking the ninth year of the contest. 

Entry forms have been sent to Nationwide 

members across the two countries, and 

apprentices working in all member stores 

are invited to compete. 

For the first time, the Apprentice 

of The Year Competition will be 

structured around a detailed 

customer brief with thoughts, 

ideas, and budget included. 

The new format is designed to reflect the 

market demand for custom-made jewellery, 

with the complexity of the brief varying for 

each of the four apprentice years. 

Entrants will be judged on their ability 

to interpret the brief in a professional 

manner, as well as project a quote for the 

design at wholesale and retail. 

The brief has been set by Niven 

McArthur, merchandise and marketing 

director Nationwide, who is a qualified 

manufacturing jeweller. 

“We see continued strong growth in 

custom design, and the need for young 

jewellers to develop their skills in working 

with customers, and project costing, 

to ensure a successful and profitable 

outcome,” McArthur said. 

Entrants have until 2 November 2020 

to submit their finished entry, with the 

winner announced in mid-November. 

They will be awarded the Nathan Cameron 

Perpetual Trophy and a prize valued at $1,000. 

Judy Cameron, of Camerons Fine Jewellers 

in Swan Hill, Victoria, will be part of the 

judging panel, alongside McArthur and 

Nationwide’s diamond and gemstone expert, 

Cindy Eidukevicius-Jones. 

“We see continued strong growth 

in custom design, and the need 

for young jewellers to develop 

their skills in working with 

customers, and project costing, 

to ensure a successful and 

profitable outcome” 

– Niven McArthur, Nationwide Jewellers 

The contest has been slightly delayed 

this year by the COVID-19 pandemic; it 

was initially scheduled to begin in June, 

with the winners announced at the 

International Jewellery & Watch Fair. 

Previous winners include Jessica Garbo 

of Penrith Jewellery Workshop in western 

Sydney, who won in 2019, Mikaela Donovan 

of Georgies Fine Jewellery in Narooma 

in 2018, and Ryan Kitchen of Diamond 

Boutique in Canberra in 2017. 


US court overturns judgment in $29 million Tiffany & 

Co. counterfeit case against Costco supermarket 

The seven-year counterfeit dispute between Tiffany & Co. and discount supermarket chain Costco will be retried after a judgment 

against Costco was overturned on appeal. Image: Two rings sold by Costco with the ‘Tiffany’ descriptor, The Fashion Law 

The US Court of Appeals for the Second Circuit has 

overturned a judgment against discount supermarket 

chain Costco over its use of the Tiffany & Co. 

trademark, which would have seen it liable to pay 

$US21 million ($AU29 milion) in damages. 

The dispute – which has proceeded through US courts 

for more than seven years – centres on a collection 

of six-prong diamond engagement rings sold by 

Costco with the descriptor “Tiffany” on the tags and 

in-store signage. It is estimated that 3,349 customers 

purchased the rings from Costco, netting it $US3.7 

million in profits; it sold a 1-carat platinum solitaire 

ring with VS clarity for $US6,399.99, while a similar 

ring on the Tiffany & Co. website retails for $US13,400. 

Costco twice appealed a summary judgment in Tiffany 

& Co.’s favour, handed down by Judge Laura Taylor 

Swain of the US District Court for the Southern District 

of New York, resulting in the case being referred to the 

Second Circuit. 

In its appeal filing, Costco argued that the rings 

did not meet the standard for counterfeiting as 

they bore “non-Tiffany trademarks”, were not 

sold in Tiffany-branded packaging, and were not 

accompanied by Tiffany & Co. paperwork. 

In a 3-0 decision handed down on 17 August 2020, 

the Second Circuit upheld Costco’s appeal, ruling 

that the lower court had erred in making a summary 

judgment in Tiffany’s favour and that the case must 

be retried by a jury. 

The judgment stated, “A jury could reasonably 

conclude that consumers of diamond engagement 

rings would know or learn that ‘Tiffany’ describes a 

style of setting not unique to rings manufactured by 

Tiffany, and [could] recognize [sic] that Costco used the 

term only in that descriptive sense.” 

The court also held that reasonable consumers would 

determine that the rings were not manufactured by 

Tiffany & Co. based on factors such as price, place of 

purchase, and packaging. 

Leigh Harlan, senior vice-president, secretary 

and general counsel Tiffany & Co., said, “We are 

disappointed in the Court’s ruling, which finds that a 

jury, rather than the judge, should have decided the 

question of liability in the first trial. 

“We continue to believe that the District Court was 

correct in its findings, and that the jury’s finding on 

damages, which resulted in a $21 million award 

for Tiffany & Co., is a clear indicator of the strength 

of the Tiffany brand, and of the jury’s outrage over 

Costco’s actions. 

She added that company had “no qualms about trying 

this case again” and said Tiffany & Co. “remained 

confident” a jury would find in its favour. At the time 

of publication, representatives for Costco had not 

commented publicly on the Court’s decision. 

In its initial filing against Costco in 2013, Tiffany & Co. 

argued that the Costco rings constituted trademark 

infringement and counterfeiting, as it was possible 

customers were misled to believe that the rings 

were indeed manufactured by Tiffany & Co. It also 

contended that Costco had instructed its jewellery 

suppliers to copy Tiffany & Co. ring designs. 

Costco countered that the descriptor “Tiffany” simply 

referred to the six-prong setting of the rings and that 

“Tiffany setting” could be considered a generic term in 

the jewellery industry. 

Judge Swain ruled in Tiffany’s favour in 2015, 

stating, “Based on the record evidence, and despite 

[its] arguments to the contrary, no rational finder of 

fact could conclude that Costco acted in good faith 

in adopting the Tiffany mark.” 

A jury later awarded Tiffany & Co. $US13.75 million, 

representing lost profits and punitive damages. 

Judge Swain later dismissed a Costco appeal in 

2017, increasing the amount owed to Tiffany & Co. 

to $US21 million.

News 

Hong Kong trade show 

cancelled, replaced with 

digital event 

GIA updates lab-grown diamond grading reports 

The Hong Kong Trade Development Council (HKTDC) 

has announced that the Hong Kong Watch & Clock 

Fair, which was scheduled to take place on 1–5 

September, has been cancelled. 

The decision was announced on 14 August, following 

the tightening of COVID-19 restrictions by the Hong 

Kong government. 

In a statement posted online, HKTDC management 

said, “The Hong Kong Special Administrative 

Region Government has tightened various disease 

prevention and control measures and extended 

entry restrictions for incoming visitors, while many 

countries and regions have also issued travel alerts 

and implemented quarantine measures. 

“These mean that overseas exhibitors and buyers 

will have great difficulty joining the HKTDC Hong 

Kong Watch & Clock Fair.” 

“We believe Autumn Sourcing Week 

Online will carry on the momentum 

to assist global exhibitors and buyers 

overcome some of the challenges during 

these trying times” 

– Hong Kong Trade Development Council statement 

Following discussions with industry representatives, 

the HKTDC will shift the fair to a digital format as 

part of the HKTDC Autumn Sourcing Week Online 

(ASWO) event, to be held from 16–27 November. 

A similar digital event, HKTDC Summer Sourcing 

Weeks Go Online, was successfully conducted 

earlier this year. 

“We believe Autumn Sourcing Week Online will 

carry on the momentum to assist global exhibitors 

and buyers overcome some of the challenges 

during these trying times,” the HKTDC statement 

said. “The business matching and virtual meeting 

features offered by ASWO will help boost business 

connections.” 

Further details of the November event will be 

announced in due course. The next Hong Kong 

Watch & Clock Fair will take place from 7–11 

September 2021. 

Several other Hong Kong-based shows have 

been postponed or cancelled amid the COVID-19 

pandemic. 

These include Jewellery & Gem Asia, organised 

by Informa Markets, and the HKTDC’s Hong Kong 

International Jewellery Show and Diamond, Gem 

& Pearl Show, which was postponed twice in 2020 

before being cancelled. 

Starting later on in 2020, GIA reports will include the same colour and clarity grades for both synthetic and 

natural diamonds. 

The Gemological Institute of America (GIA) 

has confirmed it will use the same clarity and 

colour grades on its reports for lab-grown 

diamonds as it does for natural stones, 

starting in the fourth quarter of 2020. 

The change was announced at the recent 

JCK Virtual event, with Susan Jacques, CEO 

GIA, saying that the decision was made to 

reflect “consumer demand”. 

“We want to make sure that consumers are 

educated, that we can protect their trust in 

the gem and jewellery industry as well as the 

products they are buying. 

“As consumers adopt this new category, 

it’s important that we evolve with the new 

consumer,” Jacques explained. 

Previously, GIA reports for lab-grown diamonds 

– which it has offered since 2006 – used general 

descriptions in the colour and clarity sections, 

rather than the specific grades that are standard 

for natural diamonds. 

GIA began producing synthetic diamonds 

in 2016 in order to better understand their 

unique properties. 

Belgian organisation HRD Antwerp 

harmonised its natural and lab-grown colour 

and clarity grades in March 2019, while 

International Gemological Institute (IGI) has 

offered full standardised reports for labgrown 

diamonds since 2005. 

In a statement, IGI management said, “We 

are proud to have been the first institute 

to enter this arena, instilling confidence in 

lab-grown diamond grading for the entire 

industry – from manufacturers and retailers 

to consumers – since 2005. 

“We are proud to see other organisations 

adopt our long-held philosophy regarding the 

dual-channel legitimacy of natural and labgrown 

diamonds, and believe professionals 

and consumers alike will benefit from the 

increased transparency in our industry.” 

Roland Lorie, CEO IGI, told Jeweller, “While 

other labs decided to focus only on a grading 

system for natural diamonds, IGI took the 

risk of certifying lab-grown stones, even 

when volume was minimal, because we not 

only thought it was the right thing to do, but 

had an inclination that the industry would 

one day embrace these diamonds. 

“We want to make sure that 

consumers are educated, that we 

can protect their trust in the gem 

and jewellery industry as well as 

the products they are buying” 

– Susan Jacques, Gemology Institute of America 

“We wanted to ensure consumers knew 

exactly what they were buying, so they could 

be confident in their purchases.” 

He added, “In the last year, lab-grown 

inventory and prominence have drastically 

increased, resulting in an interesting 

financial opportunity for our industry. “Today, 

major gemological labs want to get their 

share of the growing business.” 

The GIA announcement came two weeks after 

another US organisation, American Gem Society 

Laboratories (AGS), resumed grading lab-grown 

diamonds seven years after it abandoned the 

practice due to lack of demand. 

The AGS reports use standard grading 

terminology but add the denomination ‘LG’ to 

indicate the diamond’s synthetic origin, note 

the method of manufacturing – such as 

CONTINUED ON PAGE 22 

18 | February 2020

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Largest-ever Russian colour diamond 

unearthed in remote Yakuta region 

The 236-carat “natural and intense yellow-brown” stone was mined at Ebelyakh in the remote 

region of Yakutia, and is currently being assessed by Alrosa specialists. 

A subsidiary of Alrosa has discovered the largest natural fancy colour 

diamond ever found in Russia, weighing 236 carats. 

The stone is described as having an “natural and intense yellow-brown 

colour” and was mined at the Ebelyakh deposit in the remote region of 

Yakutia. It is estimated at between 120 and 230 million years old. 

Pavel Vinikhin, director of diamond cutting and polishing, Alrosa, said, “Such 

a large natural colour rough diamond is a unique discovery. Now, the stone 

is at Alrosa’s United Selling Organization being studied and evaluated by our 

specialists. After that, we will decide whether to give it to our manufacturers 

for cutting, or sell it as a rough. 

“Of course, cutters in any country will be interested in such a diamond, as it 

has the potential to give several high quality polished diamonds.” 

Ebelyakh has produced several other fancy colour diamonds; in 2017, three 

notable stones – an intense yellow, pink, and purple-pink – were unearthed 

at the site within one month. All were cut in-house by Alrosa before being 

offered for sale. 

“Such a large natural colour rough diamond is a unique 

discovery. Now, the stone is at Alrosa’s United Selling 

Organization being studied and evaluated by our specialists” 

– Pavel Vinikhin, Alrosa 

Verkhne-Munskoye, another Yakutia deposit, produced a 17.4-carat yellow 

diamond in February this year. 

While fancy colour diamonds currently account for less than 0.1 per cent of 

Alrosa’s total output, it has previously indicated that it intends to become the 

world’s premier source of fancy colour stones. 

Earlier this year, Vinikhin told Russian news service TASS: “[Following] the 

closure of the Argyle Mine in Australia, we will become the world’s largest 

producer of coloured diamonds and can therefore go after leadership in the 

coloured diamond market.” 

An analysis by the Fancy Color Research Foundation recently determined 

that prices for pink diamonds had increased by 116 per cent over the past 

10 years; yellow diamond prices rose by 21 per cent and blue diamond 

prices 81 per cent.

Gold dealers linked to 2017 Melbourne robberies sentenced over stolen goods 

CONTINUED FROM PAGE 12 

a doctor in Colombia and expressed a desire to help the community by 

working in the public health sector in Australia. 

Tenenboim, 39, was sentenced earlier in August for receiving stolen 

goods valued at $144,638. 

At the sentencing hearing for Tenenboim, The Age quotes Judge Johns as 

saying, “You thought you could do it without getting caught, so you did. 

“You were clearly aware [that] detection of your crime would be 

extremely difficult given the fact the stolen property was unable to be 

identified once it was melted down.” 

According to The Age report, Judge Johns also noted that Tenenboim 

had worked at his father’s jewellery store as a teenager and that an 

armed robbery had devastated the business and his family. 

“That experience has left a marked impression on you. It is a shame 

that those experiences didn’t serve as a motivator for you to distance 

yourself from those that would seek to buy stolen goods,” Judge Johns 

is reported to have said. 

In addition to the prison sentence, Tenenboim must also complete 200 

hours of community service under a community corrections order. 

GIA updates lab-grown diamond grading reports 

CONTINUED FROM PAGE 18 

chemical-vapour deposition or high-pressure, high-temperature – and 

include the disclaimer: “It is important to note that the color and clarity 

grades do not reflect the rarity of the laboratory-grown diamond, but rather 

the quality and consistency of the manufacturing process.” 

“While other labs decided to focus only on a grading 

system for natural diamonds, IGI took the risk of 

certifying lab-grown stones, even when volume was 

minimal, because we not only thought it was the right 

thing to do, but had an inclination that the industry 

would one day embrace these diamonds” 

– Roland Lorie, International Gemological Institute 

Jason Quick, executive director AGS, said, “We just saw there was 

a need for a different type of report, where we clearly articulate 

what a laboratory-grown diamond is. We wanted to provide full 

transparency.” 

US-based Gemological Science International (GSI) began offering 

a similarly comprehensive report for lab-grown diamonds in March 

this year, which includes information about detected post-growth 

treatments. 

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Ready 

Get 

Polish your gemstone 

knowledge online 

From lapis lazuli and coloured diamonds to 

synthetic moissanite and zebra rock, brush up 

on your gemstone knowledge in the downtime. 

The GAA has over 14 years of gemmology 

articles freely available to read online 

on Jewellermagazine.com. 

Learn About Gemstones with 

the GAA on Jewellermagazine.com 

ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY 

Passionately educating the industry, gem enthusiasts 

and consumers about gemstones 

learn@gem.org.au | 1300 436 338 | www.gem.org.au

REVIEW 

Gems 

The exotics: Padparadscha sapphire 

L to R: Chanel necklace; Tiffany & Co. ring; multi-colour faceted Padparadscha stone 

Padparadscha sapphire is a rare member of 

the corundum family, coveted for its fusion 

of orange and pink. Its exotic, expensive and 

elusive nature has led to countless imitations 

propagated by those keen to cash in on the 

famous Padparadscha name. 

The pretty Padparadscha gemstone was 

first discovered in Sri Lanka and named 

after the Sinhalese word “Padmaraga”, 

meaning lotus blossom – a species of 

flower that was originally a soft pastel 

orangey-pink. 

Later sources of Padparadscha sapphire 

include Madagascar and Tanzania; however, 

purists believe the “true” material to be of 

Sri Lankan origin. 

Coloured by the trace elements chromium 

and iron, Padparadscha sapphire possesses 

various attractive attributes besides its 

obvious beauty. 

It has a high hardness – nine on Mohs’ 

scale – and excellent durability, making 

it a popular choice for everyday wear and 

more recently as an engagement ring 

gemstone. Additionally, it can withstand 

the heat generated by standard jewellery 

repair processes. 

In 2007, the Laboratory Manual 

Harmonisation Committee (LMHC), of 

whom the Gemmological Association of 

Australia (GAA) is an affiliate, standardised 

the nomenclature used to describe 

Padparadscha sapphire. 

This was later updated in 2011 as: 

“Padparadscha sapphire is a variety of 

corundum from any geographical origin 

whose colour is a subtle mixture of pinkish 

orange to orangey-pink with pastel tones 

and low to medium saturations when 

viewed in standard daylight.” 

The description excludes modifiers other 

than pink or orange. In addition, the overall 

colour must be free of major, uneven colour 

distribution when viewed with the unaided 

eye and the table up to +/- 30 degrees, 

and should not have any yellow or orange 

epigenetic material affecting the overall 

colour of the stone. 

While most dealers and collectors agree 

this gemstone should display a blend of 

pink and orange, it’s interesting to note 

that the exact ratio, tone and saturation 

are open to interpretation, as are the 

presence of secondary tones such as 

brown, yellow and red. 

The LMHC Padparadscha definition 

excludes any treatment, except for 

traditional heat, which is used to dissolve 

‘silk’ and improve clarity. 

According to CIBJO, the World Jewellery 

Padparadscha 

From the Sinhalese 

word Padmaraga, 

meaning ‘lotus 

blossom’ 

Colour: Orangey-pink 

Found in: Sri Lanka, 

Madagascar and 

Tanzania 

Mohs Hardness: 9 

Class: Corundum 

Lustre: Vitreous 

Formula: Al 2 

O 3 

Confederation, only untreated and heattreated 

Padparadscha sapphire qualify for 

the prestigious title of Padparadscha. 

In the early 2000s, bulk beryllium diffusiontreated 

sapphire flooded the market. 

This treatment involved coating sapphires 

with beryllium oxide and other compounds 

and subjecting them to very high 

temperatures for several days, causing 

the diffusion of colour through most or all 

of the stone and creating a Padparadschalike 

appearance. 

Fortunately this treatment can now be 

detected through a combination of standard 

and advanced gemmological techniques. 

Other treatments used to create a 

Padparadscha-like appearance include 

coating, dying, irradiation and glass-filling. 

Gemstones such as topaz, spinel and garnet 

may be sold as Padparadscha imitations, 

and copycats like synthetic orange-pink 

sapphires are plentiful. 

Finding a true Padparadscha sapphire can 

be challenging due to its limited availability. 

The key is to establish a good relationship 

with a competent gemmologist, valuer or 

jeweller and ask for a coloured gemstone 

report from a reputable laboratory. 


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ABRECHT BIRD 

JEWELLERS 

Cieri Earrings 

Metals: 18-carat white and 

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diamonds, yellow sapphires 

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Melbourne, VIC 

CLAIRE TOWNSEND 

JEWLLERY 

The Bay Ring 

Metals: Fine and sterling 

silver 

Gemstones: Vitreous enamel, 

Cygnet Bay pearl 

Claire Townsend 

Perth, WA 

JASON REE 

Flame Tree Ring 

Metals: Mokume gane 

yellow gold and platinum 

Gemstones: Sapphires 

Jason Ree 

Sydney, NSW 

Australia & New Zealand 

Jewellers 

Showcase 

Australia and New Zealand are not only home to some of the 

rarest gemstones in the world, but also the most talented jewellers. 

Jeweller showcases a tapestry of local masterpieces that have been 

meticulously crafted with great artisanship, right here on home soil. 

VICTORIA BUCKLEY 

Amethyst Rosary 

Stacking Ring & Belle 

Époque Ruby Rings 

Metals: 9-carat and 

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Hiddenite Dress Ring 

Metals: 18-carat yellow 

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Gemstones: 8.3-carat 

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hiddenite 

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ROHAN JEWELLERS 

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Metals: 18-carat white 

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Marketing Review 

Bulgari’s Mai Troppo campaign 2020, featuring spokeswomen Lily Aldridge, Naomi Scott, and Zendaya 

Brand Ambassadors: 

MORE THAN FACE VALUE 

Celebrity endorsements have been part of the marketing playbook for decades – but in the context of current 

consumer behaviour, is it a case of diminishing returns? IAN COOK and ARABELLA RODEN investigate.

BY THE NUMBERS 

Endorsement 

Insights 

R 

ecruiting a high-profile celebrity to 

provide public testimony for the worth 

of a consumer product is a longstanding 

marketing strategy. 

From Michael Jordan and Nike to Charlize Theron and Keira 

Knightley in any number of perfume ads, the recipe appears 

to be simple: take one consumer brand, add a famous face to 

offer their endorsement, publicise the union on TV and in print, 

and voilà! You have achieved better brand recognition, a higher 

level of perceived credibility, and – hopefully – increased sales 

of your product. 

In 2011, Dr Marc Brennan, then a lecturer at Sydney 

University’s Department of Media and Communications, told 

Jeweller: “Brand ambassadors are there in the hope that 

consumers have a respect for that celebrity, and that respect 

will become associated with the products. 

“It’s about the meaning that’s attached to the celebrity 

suddenly becoming attached to the product.” Brennan’s 

emphasis on meaning cannot be underestimated and 

in previous decades, the celebrity strategy seemed 

straightforward – yet by the 2010s, it was no longer such 

a simple formula. 

A study by Los Angeles-based advertising analytics agency Ace 

Metrix found that – as far as TV advertising is concerned, at least 

– using celebrities could hurt a brand more than helping it. 

On average, ads without celebrities earned higher scores 

than those with celebrities in the categories of likeability, 

desire for the product, watchability and the ad’s power to hold 

a viewer’s attention. 

Reasons for the failures of the ads featuring celebrities 

included confusion about the product being endorsed, a dislike 

of the celebrity – many stars are polarising – or simply that 

viewers found the ads to be boring. 

“No amount of celebrity endorsement can replace a wellcrafted 

message and execution,” Ace Metrix chief executive 

Peter Daboll said. “It’s the message and how it resonates with 

consumers that matters.” 

Granted, not every watch and jewellery brand is necessarily 

investing in the high-cost, high-impact TV campaigns that 

proliferate in industries like fashion and perfume, but one 

important fact holds true across the board: consumers are 

changing, and the mere presence of a celebrity will no longer 

necessarily yield positive results. 

These insights were later affirmed by an analysis of celebrity 

20-25% 

proportion of 

advertisements that 

include a celebrity 

endorsement 

University of Vienna 

analysis, 2017 

4% 

estimated sales 

increase from 

appropriate celebrity 

endorsement 

American Journal of 

Advertising 

$9.7b 

estimated value 

of social-media 

influencer marketing 

industry, 2020 

State of Influencer Marketing 

2020 Benchmark Report, 

Influencer Marketing Hub 

600 

daily advertising 

messages to which 

consumers are 

exposed 

Microsoft analysis 

$22.5m 

value of publicity 

earned by Nike from 

Tiger Woods’ 2019 

Masters win 

Apex Marketing Group 

endorsement effectiveness by researchers at the University 

of Vienna – albeit with some caveats. 

They found that celebrity endorsement could positively 

impact attitudes toward the endorsed product if there was a 

clear ‘match’ between the celebrity and the product. Actors 

performed best as endorsers, followed by athletes, TV hosts, 

models and musicians. 

Notably, male celebrities evoked “substantially stronger 

effects” when compared with female celebrities, which was 

attributed to their greater perceived prestige, expertise, and 

credibility. Even more significant was the fact that consumers 

appeared to respond better to implicit endorsements, rather 

than explicit ones. 

“Often, celebrities are used simply for perceived 

endorsement,” Andy Wright, then-general manager of 

consultancy firm Interbrand Australia, explained to Jeweller 

in 2011. “The desired consumer outtake is, ‘If a celebrity is 

willing to put their name on a product and it’s good enough 

for them, then it’s good enough for me.’ 

“Brands need to try harder; simply taking pictures of the 

ambassador with the brand or product is no longer enough.” 

‘Trying harder’ involves thinking about the relevance of the 

ambassador to the brand, and even more vitally – as Daboll 

said – making sure they stick to the message of what the 

brand is about. If these two factors are missing, consumers 

will not respond kindly to the marketing of the brand 

regardless of how famous the celebrity may be. 

They’re only human 

The other major hazard that advertising executives and brand 

managers need to negotiate is, of course, the fallibility of 

celebrities. Tying a brand to the public image of a celebrity 

is a high-risk endeavour. 

“The biggest potential pitfall comes from the fact that 

celebrities are people,” said Brennan. “Even though they can 

be very tightly managed, they can – and do – fall from grace. 

Lindsay Lohan is an example of someone for whom brand 

value changed dramatically in just a few years.” 

This point was reaffirmed by Wright: “Celebrities are so 

powerful because of their influence and omnipresence – 

but they’re just as destructive for those same reasons.” 

Indeed, US celebrity endorsement data firm Spotted recently 

developed a specific index to help brands take out ‘disgrace 

insurance’ – a policy that financially protects them if a 

contracted celebrity displays “scandalous behaviour”. 


MARKETING REVIEW | Brand Ambassadors 

L to R: Gisele Bündchen, Kate Moss, and Kate Upton for David Yurman 

Spotted’s algorithm can apparently 

predict the likelihood of a celebrity 

engaging in activity which could damage 

the reputation of their associated brands. 

Perhaps the most spectacular example 

of public image free-fall is Tiger 

Woods. Regarded by many as the finest 

golfer in history, he demonstrated 

professionalism, single-mindedness 

and a will to win that was second to 

none. Combining that with his image as 

a wholesome family man, Woods was 

the advertising world’s equivalent of 

Leonardo Da Vinci’s Vitruvian Man. 

He was paid product endorsement fees 

that made him the highest-earning 

sports star on the planet. But following 

revelations of misdemeanours in his 

private life, one by one, Woods’ sponsors 

– including Gillette, Accenture, AT&T and 

Gatorade – dropped him like a stone. 

Despite initially standing by him, watch 

brand TAG Heuer, widely regarded as 

one of the best ‘matched’ brands for 

Woods, severed its relationship with him 

in 2011. Yet he was quickly able to secure 

a new association with an even more 

prestigious watch brand: Rolex. 

At the time, Rolex said in a statement: 

“Tiger Woods still has a long career ahead 

of him, and… has all the qualities required 

to continue to mark the history of golf.” The 

prediction proved prescient. In the years 

since, Woods has managed an incredible 

comeback story. 

Following four back surgeries and a 11- 

year major title drought which saw him 

drop out of the top 1,000 golfers, Woods 

won the 2019 Masters at age 43; on his 

wrist was a Rolex Deepsea. 

Sponsorship analytics firm Apex 

Marketing Group estimated that Woods’ 

other long-term sponsor, Nike, profited 

from the fairy-tale narrative to the tune 

of $US22.5 million – nearly double the 

estimated value of Patrick Reed, who won 

the Masters in 2018. 

Another example of the fraught 

relationship between watchmakers and 

celebrities is that of Raymond Weil. 

In 2005, the brand struck a multimillion 

dollar deal with actress 

Charlize Theron to make her the 

international ambassador for the 

company, and the star of an expensive 

advertising campaign. 

Despite her contract stipulating 

exclusivity, Theron later caused a stir 

when she appeared in the catalogue of 

a leading US watch retailer sporting a 

diamond-encrusted timepiece by Dior – 

for whom she is a perfume ambassador. 

Celebrity endorsement could 

positively impact attitudes 

toward the endorsed product 

if there was a clear ‘match’ 

between the celebrity and the 

product. Actors performed best 

as endorsers, followed 

by athletes, TV hosts, models 

and musicians. 

Intriguingly, Theron is now one of three 

actors contracted to promote Breitling 

watches, alongside Brad Pitt and 

Adam Driver. 

Meanwhile, billionaire Virgin founder Sir 

Richard Branson became the face of the 

Bulova Accutron range in 2011. Bulova 

president Dennis Perry explained at the 

time: “As an entrepreneur, humanitarian 

and pioneer, Sir Richard reflects the spirit 

of innovation that is at the heart of the 

Bulova Accutron brand.” 

“We feel Sir Richard Branson could be 

an individual that would be central to our 

message of innovation,” Perry added, 

referring to the Accutron’s place in history 

as the world’s first fully electronic watch. 

Phil Edwards 

Duraflex Group Australia 

“Celebrity ambassadors play 

a pivotal role in building brand 

awareness and promoting 

new collections. It’s critical to 

ensure the profile and values 

of the celebrity are well 

aligned to the brand in order 

for the partnership to be 

authentic and successful.” 

Janet Comenos 

Spotted 

“Luxury brands tend 

to be more dismissive 

of data than mass-market 

brands. The creative 

directors of these highend 

labels tend to use 

celebrities as creative 

‘muses’, even if every 

indication shows that the 

celebrity is a poor choice.” 

William Comcowich 

Glean.Info by CyberAlert 

“Celebrity endorsements 

and sponsored influencer 

content have similarities 

and may overlap at times, 

but the two strategies entail 

different advantages and 

disadvantages. It’s crucial to 

understand those differences 

to develop effective PR or 

social media marketing 

campaigns.” 

However, just three years later, Branson told 

the Wall Street Journal he wore a Pilot Watch 

from Swiss brand Torgoen that he’d chosen 

based on its appearance. More recently, he 

has been seen wearing Garmin and Vivofit 

smartwatches. 

Indeed, convincing an increasingly disbelieving 

public that there is credibility in celebrity 

ambassadorships is only likely to become more 

of a difficult task. 

When selecting a celebrity ambassador, Janet 

Comenos, CEO Spotted, has said, “Marketers 

need to use real data and isnights to drive 

these crucial decisions, not just their gut and 

personal judgment.” 

She added, “Luxury brands tend to be more 

dismissive of data than mass-market brands. 

The creative directors of these high-end labels 

tend to use celebrities as creative ‘muses’, 

even if every indication shows that the celebrity 

is a poor choice.” 

In search of authenticity 

The way many brands are looking to win the 

battle is by going beyond the realms of a 

conventional endorsement and instead touting 

the celebrity as having played a hand in the 

creation of the very products they advocate. 

One example from the watch category is 

that of international adventurer Bear Grylls 

and Luminox. Grylls helped to create the 

new Survivalist Series for the brand, adding 

practical features such as Morse code, a 

paracord strap, and a dive zone countdown 

to the designs. 

As a hard-wearing watch, Luminox had 

also previously released watches designed 

with Icelandic Sea and Air Rescue, and 

counterterrorism operative/deep-sea diver 

Scott Cassell. 

Phil Edwards, managing director Duraflex Group 

Australia (DGA), which distributes Luminox, 

explains, “Celebrity ambassadors play a pivotal 

role in building brand awareness and promoting 

new collections. It’s critical to ensure the profile 

and values of the celebrity are well aligned to the 

brand in order for the partnership to be authentic 



L to R: Chloë Grace Moretz, Indya Moore, and Sophie Turner for Louis Vuitton 

and successful. Bear Grylls is the world’s 

most recognised face of survival and 

outdoor adventure, having spent his 

career in the wild, navigating some of 

the most extreme landscapes on earth 

and coming out of the most dangerous 

situations alive and unharmed. 

“Luminox watches are known for their 

ability to perform in extreme situations, 

making this the perfect partnership.”He 

adds, “There is no better watch to be 

on Bear Grylls’ wrist than a Luminox, 

especially a Luminox which Grylls 

helped design and develop.” 

Meanwhile, in the jewellery category, we 

have seen stars such as Angelina Jolie 

(Robert Procop), and supermodel sisters 

Bella Hadid (Chrome Hearts) and Gigi 

Hadid (Messika) work with established 

brands as ‘guest designers.’ All three 

collaborations had a distinct air of 

authenticity. Jolie – a noted philanthropist 

– and her daughter Zahara created a 

charity collection with Procop, who is a 

long-term friend and designed Jolie’s 

engagement ring. 

Bella Hadid is a close friend of the Stark 

family, who own the Chrome Hearts 

brand, while Gigi Hadid was introduced to 

Messika founder Valérie Messika at Paris 

Fashion Week and found their design 

philosophies and approach to wearing 

jewellery were very similar. 

Perhaps the most prominent example 

is Spanish A-lister Penélope Cruz and 

Atelier Swarovski. Both Cruz and Atelier 

Swarovski founder Nadja Swarovski 

expressed a passion for environmental 

protection, as well as fine jewellery. 

The result was Cruz designing a 

14-piece made-to-order collection 

from responsibly sourced metals and 

gemstones, as well as some synthetic 

gemstones and lab-grown diamonds. 

The range was later expanded and 

manufactured in commercial quantities. 

“Penélope asked us [to collaborate on 

the range] and that is such an honour, 

as usually we have to look for partners, 

but to be working with someone who 

believes in the cause is amazing,” 

Swarovski said in 2018. 

“Celebrity ambassadors have 

provided Linneys with a 

recognisable figure to showcase 

our latest designs. Showing 

how the pieces can be worn and 

enjoyed is the key. Having the 

celebrity endorsement gives an 

added level of credibility to 

the brand as well as assisting 

with achieving PR [goals] 

around the campaign.” 

– Justin Linney, Linneys 

She added, “It is much better to start with 

the film crowd as they are environmentally 

tuned-in, so it was a natural evolution 

when Penélope came along. [And] these 

are designed by someone who has been 

on the red carpet.” 

An interesting local example of authentic 

celebrity endorsement is that of WAbased 

Linneys. The family-owned retailer 

has chosen a number of West Australian 

celebrities to promote and model its 

collections over the years. These have 

included Ernie Dingo, Melissa George, 

and Tahnee Atkinson. 

Justin Linney, creative director Linneys, 

tells Jeweller, “Celebrity ambassadors 

have provided Linneys with a recognisable 

figure to showcase our latest designs. 

Showing how the pieces can be worn and 

enjoyed is the key. Having the celebrity 

endorsement gives an added level of 

QUICK RE V IE W 

Key Points 

• Improve brand 

awareness and 

brand value 

High-profile actors, 

athletes, presenters 

and musicians can 

increase brand 

awareness and 

value with potential 

customers 

• Conversion and 

sales growth 

Celebrity 

endorsements can 

improve sales, but 

this is moderated by 

many other factors 

• Value fit 

and loyalty 

Brands must 

weigh the risks 

that a star could 

embarrass them 

through private 

actions or breaching 

their endorsement 

contract 

• Data-driven 

strategy 

An endorser should 

be chosen based 

on research and 

insights, rather 

than gut feeling or 

personal appeal 

credibility to the brand as well as assisting with 

achieving PR [goals] around the campaign. 

“We focus on working with Australian 

ambassadors because that fits well with our 

brand and key messaging that we utilise in 

our marketing.” 

The retailer has recently shifted to productbased 

campaigns in order to keep the focus on 

its jewellery designs, however its most recent 

celebrity ambassador was model-turned- 

Survivor Australia contestant David Genat. 

Another Australian retailer utilising a celebrity 

strategy is Larsen Jewellery. It has been the 

‘official ring partner’ of Channel 10’s The Bachelor 

franchise for several years. The Sydney-based 

brand created an unusual grey spinel ring for 

Matt Agnew in 2019, a garnet-and-rose-gold 

commitment ring for Nick ‘Honey Badger’ 

Cummins in 2018, and a diamond-and-platinum 

design for Matthew ‘Matty J’ Johnson in 2017. 

Larsen Jewellery also created the engagement 

ring for Johnson and the show’s winner, Laura 

Byrne, in 2019. The ring was promoted on both 

Johnson and Byrne’s Instagram accounts; 

together, the couple boast a combined following 

of more than 500,000. 

Indeed, social media has played an increasingly 

critical role in the nature of celebrity 

endorsement over the past decade. 

A new sphere of influence 

The celebrity ambassador approach to marketing 

consumer products has enjoyed a long and 

illustrious term without serious revision. But in 

response to the questions being asked about 

consumers’ fatigue with celebrity endorsements, 

the other phenomenon to have emerged in 

recent years is that of celebrities espousing 

product endorsements via social media. 

In 2011, US-based marketing platform 

firm Ad.ly – which called itself the ‘social 

matchmaker’ – had found a niche working with 

brands to connect them with the right celebrity 

ambassadors through digital media. 



L to R: Elle Fanning, Lady Gaga, and Lupita Nyong’o for Tiffany & Co. 

At the time, Ad.ly CEO Arnie Gullov-Singh 

said, “[We are] tapping the $50 billion 

spend on endorsements worldwide as 

well as the $35 billion spent in digital 

advertising. If people are the new 

publishers, then people are also the 

future of advertising, and celebrities are 

the new ‘prime time’.” 

Ad.ly’s ‘Consumer Influence Index’ 

sought to determine which celebrities 

drove the most consumer traffic to 

advertisers’ websites in the US; in 2011, 

the top 10 featured Kim, Khloé and 

Kourtney Kardashian, TV personality 

Lauren Conrad, and rapper and 

presenter Snoop Dogg. 

Since then, the social media landscape 

has rapidly evolved – and many watch 

and jewellery brands have adapted their 

marketing tactics to take advantage of its 

influence over consumer purchasing. 

While employing a number of wellknown 

celebrities in its traditional 

marketing, including Elle Fanning, Lupita 

Nyong’o and Kendall Jenner, Tiffany & 

Co. has also created online-only social 

media campaigns with younger and more 

digitally-oriented stars, such as dancer 

Maddie Ziegler and actress Yara Shahidi. 

Notably, the brand also created a 

campaign with male luxury travel 

influencer Jack Morris, who posts under 

the Instagram handle @doyoutravel 

and has 2.7 million followers. Morris 

promoted the more affordable Tiffany 

& Co. items, usually around $US250. 

David Yurman – a US jewellery brand 

which once garnered headlines for its 

use of A-list celebrity models such as 

Kate Moss and Gisele Bündchen – began 

pursuing an influencer strategy several 

years ago. One of its most successful 

campaigns was with Blair Eadie, founder 

of fashion blog Atlantic Pacific and 

Instagram account @blaireadiebee, which 

has 1.6 million followers. 

Over several years, Eadie incorporated 

David Yurman pieces into her popular 

outfit posts and showed consumers how 

to style them, as well as interacting and 

answering product questions. Yurman 

was able to repurpose Eadie’s content for 

its social media channels. 

However, William Comcowich, founder 

and CEO of Glean.info By Cyberalert and 

a Jeweller contributor, explains, “It may 

be tempting to bundle celebrities like 

Kim Kardashian, Justin Bieber and Taylor 

Swift in the same category as lesserknown 

social media influencers. But 

the two groups are different, even if both 

have plenty of followers. 

“Celebrity endorsements and sponsored 

influencer content have similarities 

and may overlap at times, but the two 

strategies entail different advantages and 

disadvantages. It’s crucial to understand 

those differences to develop effective PR 

or social media marketing campaigns.” 

Comcowich says that while celebrities can 

deliver “substantial reach and boost brand 

awareness” as well as increasing ‘earned 

media’ – that is, generating unpaid media 

coverage – influencers offer more niche 

appeal, credibility, expertise, and higher 

engagement with consumers. Combined, 

these can generate higher click-through 

rates and increased sales. 

“Celebrity endorsements on social media 

are more akin to traditional television 

advertising than influencer marketing… 

Seeing the #ad or #sponsored hashtag, 

followers generally understand that they’re 

viewing a sponsored endorsement. They 

consider the celebrity as a conduit for the 

brand’s message,” he explains. 

“On the other hand, top-notch 

influencers who specialise in a niche 

answer questions from followers and 

communicate with them in a back-andforth 

exchange.” 

Additionally, influencers are often able 

CONSIDER THIS 

Celebrities 

vs 

Influencers 

REACH & BRAND 

AWARENESS 

Celebrities have greater 

cross-media exposure 

and also generate more 

earned media coverage, 

increasing the reach 

of a campaign beyond 

the digital realm 

CREDIBILITY & 

EXPERTISE 

Influencers are seen as 

more trustworthy than 

celebrities, particularly 

if they are known 

for their knowledge 

of a specific product 

category such as 

make-up, fashion, or 

technology 

ENGAGEMENT & 

CONVERSION 

While many influencers 

have fewer overall 

followers than 

celebrities on social 

media, they may boast 

a higher engagement 

rate as they interact 

with followers and 

encourage them to 

purchase 

COST & VALUE 

It can be far less 

expensive to engage 

an influencer than a 

celebrity to endorse a 

brand, however their 

effectiveness depends 

on the consumer 

segment being targeted 

and the marketing goals 

to create original content which brands can 

then re-share, and are often less expensive to 

hire than celebrities. An example of a hybrid 

approach to celebrity endorsement is Thomas 

Sabo’s signing of British pop star Rita Ora as 

its global ‘face’ in 2019. Ora – who is also a 

presenter, actress, and model – boasts 16.1 

million followers on Instagram alone. 

Not only does Ora appear on in-store signage 

and other materials across international 

markets, but also promotes the brand online 

using a designated hashtag. 

Thomas Sabo is also distributed by DGA, 

with Edwards explaining, “Rita Ora’s selfconfident 

appearance, her authenticity and 

passion for realising her own dreams make 

her a trendsetter in a global community – 

characteristics that perfectly underline the 

vision of Thomas Sabo jewellery. 

“By working with Rita Ora, Thomas Sabo 

wanted to address target groups of all ages 

and underline the international orientation 

of the brand. The campaign with Rita Ora 

focuses on jewellery as a powerful companion 

and expression of one’s own personality.” 

Thomas Sabo also uses other social media 

influencers, who create local content for 

different markets. 

Perhaps that is the biggest lesson brands 

can take from the evolution of the brand 

ambassador model. Simply luring the 

highest-profile star you can find to provide an 

endorsement for your product is no longer 

enough to strengthen your brand. 

There is a clear indication that well thought out 

celebrity-brand matchmaking requires both 

local and global power, and the ability of the 

star to create trust and connection with their 

audience – particularly through social media. 

Without a natural association between 

ambassador and product, consumers are 

more likely to be left confused and cynical 

rather than star-struck and invigorated with 

positive purchase intent. Simply put: if the face 

doesn’t fit, consumers won’t wear it. 


With the recent announcements of 

government restrictions starting to be 

rolled back, jewellers now have the 

opportunity to get customers back 

into the store. 

Effectively communicate the 

changes that have taken 

place without spending 

all their time on the phone. 

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CELEBRITIES AS MODELS 

Shining Endorsement 

JEWELLERY CAMPAIGN AMBASSADORS 

Serena Williams 

Audemars Piguet campaign, 2020 

Hugo Marchand 

Louis Vuitton campaign, 2020 

Carla Bruni 

Bulgari campaign, 2013 

Rachel Weisz 


Mila Kunis 

Gemfields campaign, 2013 

Shu Qi 


Naomi Scott, Zendaya, and Lily Aldridge 

Bulgari campaign, 2020 

Annabelle Wallis 

Cartier x Vogue Russia, 2020 

Rita Ora 

Thomas Sabo campaign, 2020 


Kristen Stewart 

Chanel campaign, 2020 

Kai (Exo) 

Gucci x Elle, 2020 

Keira Knightley 

Chanel campaign, 2016 

Emilia Clarke 

Dior campaign, 2015 

Zendaya 


Harry Styles 

Gucci campaign, 2019 

Zoë Kravtiz 

Tiffany & Co. campaign, 2017 

Zhong Chu Xi 

Louis Vuitton x Vogue China, 2019 



JEWELLERY CAMPAIGN AMBASSADORS CONTINUED 

Cara Delevingne 

Dior campaign, 2020 

Bella Hadid 

Chrome Hearts campaign, 2018 

Halima Aden 

Pandora campaign, 2020 

Florence Welch 


Miranda Kerr 

Swarovski campaign, 2016 

Zhang Ziyi 

Chopard campaign, 2019 

40 | September 2020 

Julianne Moore 


Jessica Alba 

Piaget campaign, 2011

Gigi Hadid 

Messika campaign, 2018 

Li Bing Bing 


Penélope Cruz 

Swarovski Atelier campaign, 2019 

Lily Aldridge 


Georgia May Jagger 

Pandora campaign, 2019 

Rihanna 

Chopard campaign, 2017 

Song Hye Kyo 

Chaumet campaign, 2020 

Alicia Vikander 

Louis Vuitton campaign, 2019 



WATCH CAMPAIGN AMBASSADORS 

Aishwarya Rai Bachchan 

Longines campaign, 2020 

Nicholas Holt 

Jaeger LeCoultre campaign, 2019 

Brad Pitt, Adam Driver, and Charlize Theron 

Breitling campaign, 2018 

Gwyneth Paltrow 

Fréderique Constant campaign, 2018 

Bear Grylls 

Luminox campaign, 2020 

Ryan Reynolds 

Piaget campaign, 2018 

42 | September 2020 

Hugh Jackman 

Montblanc campaign, 2019 

Kaia Gerber & Cindy Crawford 

Omega campaign, 2018

Rod Laver 

Rolex Ambassador 

Amanda Seyfried 

Jaeger LeCoultre campaign, 2019 

Kate Winslet & Simon Baker 

Longines campaign, 2019 

Jake Gyllenhaal 

Cartier campaign, 2018 

Sonam Kapoor Ahuja 

IWC Schaffhausen Ambassador 

Lady Gaga 

Tudor campaign, 2017 

David Beckham 


Michelle Yeoh 

Richard Mille Ambassador 



WATCH CAMPAIGN AMBASSADORS 

Bradley Cooper 

IWC Schaffhausen campaign, 2018 

Margot Robbie 

Richard Mille campaign, 2018 

Chris Hemsworth 

TAG Heuer, 2019 

Michael Bublé 


Cara Delevingne 

Tag Heuer campaign, 2019 

Jessica Chastain 

Piaget campaign, 2017 

Tiger Woods 


George Clooney 

Omega campaign, 2017 


Eddie Redmayne 


Hailey Bieber 

Tommy Hilfiger campaign, 2018 

Nicole Kidman 


Daniel Craig 


Jennifer Lopez 

Guess campaign, 2018 

Pierce Brosnan 

Speake-Marin campaign, 2015 

Tom Brady 

IWC Schaffhausen campaign, 2019 

Jay Chou 



Together 

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here to help, providing the quality, speed, and 

service you’ve come to expect from us for over 

60 years. 

Your account manager will be reaching out to 

discuss ways we can support you during these 

unusual times. 

WORTH & DOUGLAS LTD 

(03) 9338 0091 / 1800 006 388 

sales@worthdouglas.com.au 

worthdouglas.com

BEST OF BUSINESS 

Retail Feature 

How to survive the “Battle of the bots” 

Online mega-retailers have integrated technology that attacks and blocks competitors. Every independent 

retailer should understand these tactics and how they affect the bottom line, says CHRIS PETERSEN. 

It’s hard to escape the news about digital 

transformation and how it impacts on 

traditional retail. In the US, there are daily 

reports of store closures and half-empty 

shopping malls grasping for tenants. 

Amazon remains the undisputed market 

leader among e-commerce retailers hellbent 

on using price to seize market share 

from traditional retailers. 

However, what is less apparent to 

consumers are the technologies that 

online retailers like Amazon employ 

that make it nearly impossible for other 

retailers to complete. 

The emergence of artificial intelligence (AI) 

technologies has turned what was once a 

battle of price into a ‘battle of the bots’, and 

small retailers are trying to compete in this 

technology war with the digital equivalent 

of a pocketknife. 

All of this begs the question, “Is Amazon 

invincible?” 

Greater than the sum 

Amazon is an incredible innovator. The 

shopping giant has the best e-commerce 

platform the world has ever seen and it 

has built this by focusing on infrastructure 

and the long-term. 

This culture of innovation is increasing 

revenue at such a pace that the company 

is now in $2 trillion-dollar territory and 

has been referred to as “the world’s most 

valuable brand”. 

What is it that gives Amazon such an 

incredible advantage? 

Amazon’s whole is greater than the sum 

of its parts. 

Consumers know the brand for its values 

of convenience, same-day or overnight 

delivery through Amazon Prime, and 

gold-standard service – but they don’t see 

what’s going on behind the scenes. 

Amazon’s individual components are 

well-known and widely discussed, 

particularly the use of robotics in the 

company’s distribution centres. As a result, 

these components can be replicated by 

competitors. 

But copying Amazon’s entire ecosystem, 

including all physical and digital strategies, 

is a task so large that that it creates 

a huge barrier of entry for retailers 

Amazon’s 

mastery of 

the complex, 

behindthe-scenes 

technologies 

that power 

modern 

e-commerce 

is vitally 

important to 

its success 

without Amazon’s spending power and 

logistical depth. 

Below are some examples that collectively 

represent formidable barriers for 

traditional retailers, especially those 

with a bricks-and-mortar heritage. 

Bringing in the bots 

As the name implies, ‘bots’ involves the 

use of technology to perform automated 

functions at incredible speed and accuracy. 

This is robotics, but it’s not always physical 

or mechanical. A web-crawler is a type 

of bot that scans the prices of individual 

items online. 

Web-crawlers can process thousands of 

SKUs to help a retailer like Amazon ensure 

its pricing remains best-in-show. Online 

pricing is extremely competitive and the 

difference of 50 cents over a million units 

can make or break profitability. 

According to an article in Fortune titled, 

“How Bots Are Fighting E-Commerce 

Wars,” Walmart was using bots to check 

Amazon prices several million times a day 

until Amazon found a way to block the 


Best of Business | RETAIL FEATURE 

technology, shutting Walmart out for 

months. 

Like something out of a sci-fi movie, this is 

a battle fought between retail Goliaths in 

cyberspace and the importance cannot be 

overstated for traditional retailers. 

Amazon’s mastery of the complex, behindthe-scenes 

technologies that power 

modern e-commerce is vitally important 

to its success. 

exterity with bots allows Amazon to not 

only see what rivals are doing but also 

keep those rivals in the dark when Amazon 

undercuts them on price or quietly goes on 

to charge more. 

Pricing bots are just one example of the 

integrated ecosystem of technology and 

systems that Amazon and Walmart have in 

their omnichannel arsenal. 

Smaller retailers simply do not have 

the resources to recreate this strategic 

infrastructure. 

Applying AI effectively 

If a retailer does not know the acronym 

IFTTT then they are falling behind in digital 

retailing. IFTTT stands for “If this then that” 

and it is AI applied at the simplest level to 

automate choices and actions. 

IFTTTs can create algorithms that enable 

consumers to make a purchase based 

on a predefined set of criteria, like price 

point, quantity left in stock, or even the 

weather conditions. 

Amazon deploys a host of IFTTTs online 

and engages customers through its 

dashboard buttons. 

Of course, Amazon is not the only retailer 

deploying IFTTTs in retail and supply-chain 

automation. Supermarkets such as the 

UK’s Tesco began adopting the technology 

as far back as 2013. 

Tom Furphy, CEO Consumer Equity 

Partners, explained the technology to retail 

news site Morning News Beat at the time:, 

saying, “Their applets can automatically 

order products if they meet a certain price, 

they can add burgers to a shopping basket 

based on the weather or they can set a 

reminder to add certain items to a basket 

at a certain time. 

“They are also using IFTTT to 

allow customers to use Google 

Home to add items to their 

basket,” he added. 

Traditional retailers might scoff 

and say that their consumers 

don’t need or want IFTTTs, but 

consumers expect all retailers 

to match the convenience and 

services levels provided by 

Amazon or a Tesco in today’s 

omnichannel world. 

IFTTTs create convenience and 

place even more pressure on 

competitive pricing driven by real-time 

criteria, which is controlled by empowered 

customers. 

E-tailer fulfilment 

Amazon’s genius is using its own Amazon 

Marketplace to recruit retailers and brands 

to sell products through its ecosystem. 

As part of Amazon’s ‘turn key’ solution, 

the Marketplace products are “Fulfilled by 

Amazon” (FBA). 

Amazon’s own fulfilment costs for its 

membership program Prime run into the 

billions. By incorporating its Marketplace 

sellers into FBA, Amazon gains logistical 

volume, efficiencies and resources to 

continue to build state-of-the-art systems. 

Amazon is taking FBA to new levels by 

picking up products at manufacturing 

locations and delivering them directly to the 

consumer’s home. 

This process cuts out the role of 

distributors and most of the traditional 

supply chain. 

World domination or bust 

There are many more components 

of Amazon’s ecosystem but the ones 

mentioned here already create a huge 

strategic advantage that leaves even US 

retail behemoth Walmart struggling 

to compete. 

There are only a handful of retailers 

with deep-enough pockets to be able to invest 

billions in this kind of infrastructure, again 

giving Amazon a huge competitive advantage. 

At the same time, there is little profit to 

be made in e-commerce today without 

efficiencies and massive scale. 

OVERCOME 

AMAZON 

Don’t 

compete 

on price 

Online megaretailers 

have 

the advantage 

of always 

offering lower 

prices 

Apply AI like 

an e-tailer 

Integrate ‘if 

this, then that’ 

algorithms into 

your online 

store to help 

customers shop 

more efficiently 

Build 

customer 

loyalty 

Rather than 

focusing on 

widening 

your base, 

create deeper 

and more 

meaningful 

customer 

relationships 

and invest in 

great service 

Anticipate 

change 

Think about 

how consumer 

behaviour and 

technology will 

evolve over 

time and begin 

adapting your 

business now 

Amazon didn’t turn a profit for years and the 

cost of replicating the many components of 

its ecosystem is virtually insurmountable for 

retailers. 

In addressing the question of whether 

Amazon can become the world’s most 

dominant retailer, many are betting on 

when, rather than if. 

What now? 

Forget trying to be Amazon. The first thing 

smaller traditional retailers need to do 

is shed the historical baggage of selling 

products at a price. 

The future lies in creating engagement and 

relationships with customers. To do that, 

retailers must leverage the 

one thing Amazon does not have yet, outside 

the US: stores with talented 

front-line sales staff. 

Even within the US, Amazon’s bricksand-mortar 

stores are not widespread or 

particularly well-known, and have been 

criticised for their initial smartphone-only 

payment system. 

Traditional retailers already have close 

relationships with customers and beautiful 

local stores with helpful and welcoming 

staff; they just need strategies to leverage 

those elements for maximum profit.The 

mantra of Amazon CEO Jeff Bezos is, 

“Tomorrow is day one,” but he is always 

focused several years ahead. 

Driverless cars and delivery are likely to be a 

reality by around 2024, so think about what 

this will mean for consumers. Will they still 

go to stores? 

Chances are most retailers haven’t even 

thought about what driverless means to 

store design and parking, for example, 

but one can bet with certainty that Amazon 

is already planning a holistic ecosystem to 

leverage it. 

It is the job of retailers to think ahead, keep 

informed and do what they can to keep up. 

CHRIS PETERSEN is founder and CEO 

of retail consultancy Integrated Marketing 

Solutions (IMS). Visit: imsresultscount.com 


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Selling 

Sales tips you can apply to everyday life 

The key skills and insights of the salesperson aren’t just limited to the shop floor; they can also help 

you navigate tricky social situations and uncertain interactions outside of work, writes SUE BARRETT. 

Humans are social animals who need 

to engage with others in some way in 

order to be able to live effectively and 

have a meaningful existence. 

Whether you’re a salesperson or 

not, there are times in your daily life 

when knowing how to sell can turn an 

awkward situation into a positive one. 

The fear of rejection 

Consider the new school year as an 

example. There are often many new 

faces and new people to meet across 

the year. Whether you want to or not, 

you will find yourself in new situations. 

These could include setting up play 

dates for your children, welcoming 

new neighbours into your community, 

forming a parent group, meeting your 

child’s teachers and so on. 

For some, social scenarios like these 

are second nature but not everyone finds 

these types of tasks easy to do. 

Some parents might even consider it 

daunting. What if you try to arrange a 

play date between two children and the 

other parent says no? 

People don’t like to be rejected, which is 

why it can be intimidating to break into 

a new tribe. 

But as it turns out, igniting new social 

relationships is just like setting up new 

client relationships at work. 

Both raise various questions and fear in 

our minds, such as: 

• How do I get accepted? 

• How do I make a good impression? 

• How do I get along with these people? 

People don’t 

like to be 

rejected, which 

is why it can be 

intimidating to 

break into a 

new tribe 

• How do I build a trusting relationship 

with them, going forward? 

All of these questions require us to 

know how to plan, prospect, enquire, 

understand others and find ways to 

engage in meaningful exchanges for the 

purpose of making a strong connection. 

That is also what is required in the 

business world and more specifically 

in retail sales. 

Strangers to friends 

Let me share a specific example to 

illustrate my point. 

Recently I was harvesting our annual crop 

of plums. It has been a good season and 

we harvested around 30kg. 

What we normally like to do is make a 

pflaumenmus, which is plum butter, and 


we also preserve the plums; however, 

given previous harvests, we had more 

than enough already. 

We didn’t need to cook anything this year 

but we also didn’t want to have these 

delicious plums go to waste. 

I devised a plan – I would take some 

excess plums door-to-door and offer 

them to my neighbours for free, some 

of whom I know well and others whom 

I do not know. 

Have you ever tried to go door-to-door 

selling something? 

It’s not easy, even if the product you have 

won’t cost the other person anything! 

People can be wary because they are 

caught off guard; they’re wondering who 

you are and what you want. 

To address this and before I left for my 

plum distribution drive, I developed 

my VBR – valid business reason – for 

calling on them. 

It went something like this: to people 

I didn’t know, I said, “Hi, I’m your 

neighbour from up the street. We have an 

abundance of fresh plums we cannot use 

and I was wondering if you would like to 

have some?” 

Immediately everyone knew why I was 

there and what I was offering. 

When they said yes to the offer, I 

instructed them to get a large bowl so 

I could give them plenty of plums. 

To people I did know, I said the same thing 

but with one crucial difference: I used 

their names. 

“Hi [person’s name], we have an 

abundance of fresh plums we cannot use 

and I was wondering if you would like to 

have some?” 

I managed to visit 12 houses, which 

took me three hours because, besides 

distributing my plums, I got to have 

some wonderful conversations with 

my neighbours. 

Clear 

planning 

Consider how 

others will 

perceive you 

and define 

how you will 

address that 

Positive 

intentions 

Focus on what 

you can provide 

and making 

a meaningful 

connection 

Open and 

friendly 

Be confident 

and allow 

others the 

space to say 

yes or no 

I even got some home-grown corn and 

chillies in return and it was a lovely way to 

spend a Saturday afternoon. 

There were real skills involved here 

– knowing how to introduce yourself; 

helping people to quickly understand why 

you are there; giving neighbours a choice 

to say yes or no; being open, friendly and 

welcoming. 

All of these were integral to the success 

of the venture – as they are when it comes 

to dealing with customers. 

However, having a clear plan and the right 

intentions made the biggest difference to 

my success in this situation, helping me 

to build new and better relationships in 

my community. 

SUE BARRETT is founder and CEO of 

innovative and forward-thinking sales 

advisory and education firm Barrett 

and online sales education platform 

salesessentials.com. Visit: barrett.com.au

BUSINESS 

Management 

Thinking big? Your small business doesn’t need to 

Everyone thinks the premise of retail is the need to generate growth – but what if growth isn’t so important 

after all? KARYN GREENSTREET explains why thinking big is no guarantee of success. 

It’s written in nearly every business book 

and spoken from the lips of nearly every 

business guru: achieving growth is the 

pathway to retail happiness. 

More products, more services, more 

stores, and more revenue. 

Bigger is better – right? In fact, the 

endless push to grow businesses to the 

next level – whatever that means – may 

not be the right thing for many of us. 

There’s no shame in declaring that you 

want to keep your business small. 

This article isn’t about people who 

remain small because they’re scared 

to take risks or because they don’t 

have the skills or the financing to 

grow larger. 

This article is about people who choose 

to keep their businesses small because 

it’s what they really want. 

Debunking business myths 

There’s an unspoken taboo in declaring 

an intention to keep a business small. In 

his book, The E-Myth Revisited, Michael 

Gerber says that those who elect to stay 

small and work in their businesses have 

a job, not a business. 

This logic seems incorrect. There 

doesn’t appear to be anything wrong 

with wanting to stay small and do the 

everyday work yourself. 

Gerber’s principle is that a business 

should be created to get more out of 

life, and most self-employed people 

start their own businesses because they 

love what they do. 

Certainly the work business owners do 

should allow them to have the lifestyle 

they want – but people don’t always 

start businesses to make incredible 

amounts of money. 

If that were the case, why not get a 

corporate executive job? It would be far 

less risky! 

People start 

businesses 

to provide 

the services 

and products 

they love and 

to work in a 

way that gives 

them personal 

fulfilment 

as well as 

a creative 

challenge 

No, people start businesses to provide 

the services and products they love 

and to work in a way that gives them 

personal fulfilment as well as a 

creative challenge. 

Of course, there’s also the freedom that 

self-employment provides. 

The joy of small 

There is a new way of looking at small 

business that challenges the notion that 

all growth is desirable. 

In his book, Small Giants: Companies 

That Choose to be Great Instead of 

Big, Bo Burlingham discusses small 

business owners who had a choice to 

increase their business to majestic 

proportions – yet chose instead to 

perfect what they had, rather than 

sell out to the ‘growth’ ideal. 

Those who elect to stay small and 

create a great business are generally 

more interested in the qualitative 


SMALL 

BENEFITS 

Freedom 

and flexibility 

in decisionmaking 

Retaining 

a hands-on 

approach 

to everyday 

operations 

Focus on 

perfecting the 

offering, rather 

than meeting 

growth targets 

Remaining 

closely 

connected to 

customers and 

employees 

aspects of their work than in sales. They want to be 

great at what they do and offer the best service and 

products possible. 

In my opinion, the only way to do this is to remain 

small. The boutique-business model allows owners 

to connect intimately with their customers, to listen 

to their needs and create solutions quickly. 

This model gives owners a level of independence 

and joy that they might never find in larger 

businesses. 

American author and entrepreneur Seth Godin 

believes small businesses provide untold flexibility. 

“Small is the new big because small gives you the 

flexibility to change the business model,” he says. 

“Small means you can tell the truth on your blog. 

Small means that you will outsource the boring, 

low-impact stuff like manufacturing and shipping 

and billing and packing to others while 

you keep the power because you invent the 

remarkable.” 

Learning to love business 

A business starts as a means to an end. Perhaps 

the aim is to achieve a certain lifestyle or pay the 

school fees, but there’s no reason a business can’t 

also be enjoyable. 

Those who love gardening aren’t trying to find ways 

to delegate their gardening work to others. They’re 

focused on getting their fingers in the dirt and 

doing it themselves because the very 

act of working in the garden is enjoyable to them. 

Sometimes this means they need a smaller garden 

that they can more easily manage. They have fewer 

plants so they can give each one the attention it 

needs to truly flourish. 

In business too, many self-employed people don’t 

want to be ‘absentee owners’. They don’t want 

to lose touch with customers or the reasons 

they work. They don’t want to be corporate-style 

managers and would rather work with partners 

who love what they do too. 

Those who want to be the owner of a large number 

of jewellery stores with an army of employees 

should go for it. There’s nothing stopping them. 

But those who want to get their hands dirty every 

day should stay focused and build a business that’s 

small and great. 

KARYN GREENSTREET is president of Passion 

for Business, specialists in small business 

consulting. Visit: passionforbusiness.com


Marketing & PR 

Waging war: marketing vs sales 

Should marketing be less of a focus than sales or are they equally important to retail businesses? 

DALE FURTWENGLER discusses the relationship between the two and if a peace treaty can be made. 

Over the years I’ve heard much 

commentary about the roles of marketing 

and sales within business. Popular sales 

writer Geoffrey James has written that 

marketing should be subordinate to sales 

instead of a separate function. 

Obviously, marketing experts disagree. 

War is expensive; let’s see if we can put 

an end to this one. 

The role of marketing 

In many businesses, marketing’s role 

is to get the word out about the store, 

attracting new customers by creating 

front-of-mind awareness and a buzz for 

new offerings. 

A firm strategy is required to ensure 

businesses see returns on their 

marketing expenditure. 

However, often, businesses contribute 

their largest marketing investments – 

both in dollars and production capacity – 

towards their least profitable lines. 

This raises some important questions 

when assessing the marketing strategy: 

• Are the right customers being targeted? 

• Are businesses touting the right 

offerings? 

• If they are doing both the above, how is 

it that retailers end up with so many lowmargin 

customers and offerings? 

Market research is another role that falls 

under the purview of marketing. Product 

innovations and improvements are often 

supported by, if not initiated through, 

research conducted by the marketing 

department or officer. 

The question is: should this be 

marketing’s province exclusively? 

The role of sales 

The role of sales staff is, simplistically, to 

generate sales. Unfortunately, too many 

retailers operate from this very view, 

and, when asked, salespeople can rarely 

identify their ‘ideal’ customers, what 

those customers value and what that 

value is worth in monetary terms. 

To make matters worse, the current 

models for sales commission encourage 

staff to relentlessly pursue customers and 

to do anything they can to make the sale. 

When marketing 

and sales are 

both targeting 

the same highly 

profitable people 

and categories, 

a business will 

generate higher 

revenues more 

quickly and at 

premium prices 

This occurs whether the business’ marketing 

is targeting the right segments or not. 

How can retailers stop this madness? Here 

are some thoughts. 

The importance of cross-pollination 

In small businesses, like jewellery stores, 

staff often handle both marketing and 

sales – but it’s rare that someone analyses 

profitability by both customer and product 

line/service categories. 

A caveat here – storeowners often calculate 

profit in ways that make it easy for them 

to report financial results under external 

reporting requirements. 

Marketing and sales people should make 

sure they are comfortable that profit 

numbers reflect the economics of the 

various markets they serve. 

There are a few fundamentals to consider: 

• Why are some customers willing to pay 

more for an offering? 

• What do they see that other customers 

do not? 


A UNIFIED 

APPROACH 

Both 

marketing and 

sales teams 

should focus on 

targeting highvalue 

customers 

Marketing 

staff must 

‘crunch the 

numbers’ and 

use insights 

from sales to 

identify bestperforming 

offerings and 

opportunities 

Data collected 

by sales staff 

can be used 

to inform and 

improve the 

marketing 

message 

• Are the marketing messages designed to 

attract more of these customers? 

• How can this information help salespeople 

focus their efforts toward this market? 

• How can staff make marketing messages and 

sales scripts more congruent to increase the 

likelihood of sales? 

• What opportunities are staff seeing in 

the market for innovation and/or product 

improvement? 

• Are these opportunities something for which 

buyers are willing to pay extra? 

• Which offerings are languishing? Should they 

be invigorated or abandoned? 

Leverage relationships 

Customers will always have stronger rapport 

with sales staff than with marketing staff, and 

sales staff have access to the shop floor to see 

first-hand how customers react to products. 

They also get the opportunity to have more 

candid exchanges with customers than backoffice 

staff. Therefore, their observations can be 

extremely valuable for improving the sales and 

marketing approach. 

Customers are more likely to offer feedback 

to salespeople they like and to let them know 

when a competitor is about to release a product 

of value. 

At the same time, salespeople are able to 

share trends that they see in their customers’ 

shopping preferences. 

Salespeople should also be encouraged to 

share any language they’re using that helps close 

a sale or establish a relationship. Likewise, they 

should also be encouraged to share complaints 

they’ve received from customers. 

All of this information can help shape a retailer’s 

marketing messages so that they resonate with 

their most profitable customers. 

When marketing and sales are both targeting the 

same highly profitable people and categories, 

a business will generate higher revenues more 

quickly and at premium prices. Now, how’s that 

for a peace treaty? 

DALE FURTWENGLER is the founder of 

Furtwengler & Associates. Hs is a speaker, 

author and business consultant. Visit: 

pricingforprofitbook.com


Logged On 

"looks like kate middleton 

has recently worn a pair 

of medium gold hoops. 

tomorrow i’ll upload an 

‘inspired by kate’ blog 

post and link images to 

my best selling hoops. I 

should also send that out 

as an eNewsletter to my 

customers who frequently 

buy gold jewellery.” 

Low-cost ways to attract online customers 

Online marketing can be an effective way to attract new customers to your business – and it doesn’t need to be an 

expensive pursuit. HARSH AJMERA discusses cost-efficient ways to make the most of social media platforms. 

Are you looking for ways to acquire new 

online customers without burning a hole 

in your pocket? No matter how great your 

product is, it just becomes pointless if 

there is no customer base. 

Yet businesses today don’t want users 

to visit their page only to buy something; 

similar to the in-store retail experience, 

they want to connect with customers in 

order to build a relationship that yields 

benefits in the future. 

Here are seven ways in which you can 

attract customers and promote your 

business without spending a fortune. 

1. Hijack trending topics 

For this process, you need to be quick 

as you can to inject your brand in real-time 

to get the coverage you want. You need to 

choose a trending topic related to 

your industry. 

Done correctly, you will be exposed to new 

audiences who will start following your page 

on social media – if they like what they see. 

In turn, they could become customers. 

For example, during the Cricket World 

Cup, country hashtags like #IndvsAus will 

trend on Twitter. In the past, popular soup 

and noodle brand Maggi tapped into the 

World Cup’s exposure with an image that 

suggested there are two things that India 

needs the most: the World Cup and Maggi. 

The brand then pushed the idea of 

consuming Maggi products while watching 

the game. 

2. To make a friend, be a friend 

Partnering with other brands will 

boost exposure to many eyeballs from 

neighbouring networks. 

You can collaborate by doing a guest 

blog, sharing boards on Pinterest, crosspromotions 

on social channels, or running 

a joint contest or campaign. 

It is important to choose the correct brand 

for the collaborative campaign. Ensure the 

other brand is relevant to your audience 

– that is, your current and potential 

customers – but is not a competitor. 

Their audience and customers should 

overlap with yours, and they should have 

a positive reputation and similar values. 

A great way to 

boost purchases 

is to create 

‘spot sales’ on 

social media 

and specify 

that prices will 

return to normal 

in a few hours 

3. Provide exlcusive discounts 

Who doesn’t love a good deal? We all do, so 

make sure you provide such exclusive offers 

to your potential customers that it becomes 

tough for them to deny. 

Whenever you put a time frame on 

something, it makes customers act faster 

as they don’t want to miss an opportunity 

to save money or snap up their favourite 

products. 

A great way to boost purchases is to create 

‘spot sales’ on social media and specify that 

prices will return to normal in a few hours. 

4. Leverage the power of users 

User-generated content is content created 

by users to show interaction with your 

brand. This makes potential customers 

crave for the same experience, leading them 

straight to your store. 

The social media pages of adventure 

camera business GoPro are filled 

with pictures and videos submitted by 

customers. This not only showcases the 

potential of the product but attaches values 

of fun and adventure to the brand itself. 


DIGITAL 

DIRECTIVES 

1. Quality over 

quantity is key 

when it comes 

to content – but 

ensure you are 

posting regularly 

and at the 

optimum time 

2. Convert 

browsers into 

buyers by creating 

urgency through 

spot sales 

3. Foster brand 

loyalty by 

featuring usergenerated 

content 

– this will also 

save you time and 

money on creating 

your own content 

4. Go beyond 

your existing 

base using 

trending topics 

and hashtags, or 

partnering with 

other brands on a 

campaign 

5. The old rules 

still apply – 

customers expect 

the same great 

service online as 

they do offline 

5. Provide stellar customer service 

In both online and offline retail, the element 

that will truly give brownie points to your 

brand is the customer service you provide. 

Your duty doesn’t end once your product is 

sold; in fact, it starts when customers begin 

using the product. 

Customer service plays a massive role when 

it comes to shaping purchase decisions, so 

make use of various low- or no-cost digital 

tools that can help you monitor and respond 

quickly to requests. 

6. Highlight the perks 

Customers love it when they can gain 

additional perks along with products/ 

services. Highlight any perks you provide on 

all social-media pages and websites, such 

as free shipping, your loyalty program, or 

a gift with purchase. 

This will boost awareness and possibly 

stimulate user-generated content online. 

7. Be original and creative 

There’s no sugarcoating for this one: 

retaining new customers is even harder 

than gaining them. For that, you need to 

keep producing original and creative content 

that keeps followers engaged and updated. 

To help keep the flow of content going, 

create a weekly content calendar and jot 

down any post ideas in there first. 

You don’t need to post 10 times a day; it’s 

better to post less frequently but be sure 

that each post is perfectly designed to create 

an impact. 

As you can see, you don’t have to spend 

thousands on marketing your business and 

attracting new customers. All you need to 

engage customers is the correct strategy 

that will work for your business. 

Incorporate these seven elements into 

your plan and soon your content will be 

flowing in the right direction. Once you feel 

like you have made a footing, you can keep 

experimenting, measuring and tweaking 

your strategy. 

F V J E W E L L E R Y 

A v i b r a n t c o l l i s i o n o f 

p r e c i o u s s t o n e s , p e a r l s , 

& s t e r l i n g s i l v e r . 

Maariaa 

W W W . F A B U L E U X V O U S . C O M 

HARSH AJMERA is the founder of Digital 

Insights, a website exploring social media 

platforms, tools and strategies. 

Visit: blog.digitalinsights.in

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Jeweller - September 2020

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