Jeweller - September 2020

Best of the bench: Show-stopping pieces from local jewellers Star power: Assessing the value of celebrities and ambassadors in brand marketing Amazon effect: How small businesses can learn from online mega-retailers

Best of the bench: Show-stopping pieces from local jewellers
Star power: Assessing the value of celebrities and ambassadors in brand marketing
Amazon effect: How small businesses can learn from online mega-retailers


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Best of the bench<br />



Star power<br />



Amazon effect<br />



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S A MS GR O UP<br />

A U STRA L I A<br />


These are unsettling times, with COVID-19 impacting our<br />

professional lives and those close to us. We understand it<br />

is challenging to operate under current restrictions, however<br />

we’re getting through this together one day at a time and<br />

there is a light at the end of this tunnel.<br />

Despite the circumstances, take care and make time to<br />

do the things you love with the people you love; it’s<br />

never been more important to support one another, remain<br />

positive and keep smiling.<br />

Wishing you a safe passage through this difficult period.<br />

We’ll rise above the storm.<br />

Steve Der Bedrossian<br />




Semi Precious <strong>Jeweller</strong>y<br />

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

SEPTEMBER <strong>2020</strong><br />

Contents<br />

This Issue<br />

8 Upfront<br />

10<br />


COVID-19 Update<br />

12 News<br />

25<br />


Peaches and pinks: a peek at Padparadscha<br />

26 <strong>Jeweller</strong>s Showcase<br />


Celebrity sellers<br />

4What is the value of a famous face?<br />

<strong>Jeweller</strong> examines the power of celebrity<br />

endorsements in the watch and jewellery<br />

sector and reviews iconic campaigns.<br />

Feature<br />

30<br />


Brand ambassadors: More than face value<br />

Better Your Business<br />

47<br />


CHRIS PETERSEN reveals how small businesses can survive online competition.<br />

25<br />


4Peek at the<br />

peaches and pinks<br />

of the Padparadscha<br />

sapphire<br />

50<br />

52<br />

54<br />

56<br />


Hone your sales skills in everyday situations, advises SUE BARRETT.<br />


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


DALE FURTWENGLER explores the conflict between marketing and sales strategies.<br />


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


Across the bench<br />

4A dazzling showcase of<br />

outstanding pieces by talented<br />

jewellery designers from around<br />

Australia and New Zealand.<br />


Timelessly beautiful,<br />

Coeur de Lion marries<br />

clear, minimalist design with<br />

unusual colour combinations<br />

to create jewellery that is both<br />

beautiful and unconventional.<br />

<strong>September</strong> <strong>2020</strong> | 7

Upfront<br />

#Instagram hashtags to follow<br />

Alpha Order<br />

#cuffbracelet<br />

170,177+ POSTS<br />

#futureheirlooms<br />

183,427+ POSTS<br />

#paraibatourmaline<br />

66,780+ POSTS<br />

#preciousstones<br />

339,768+ POSTS<br />

Stranger Things<br />

Weird, wacky and wonderful<br />

jewellery news from around the world<br />

Obama-rama<br />

#jewelleryideas<br />

22,931+ POSTS<br />

#jewelsofinstagram<br />

302,442+ POSTS<br />

#marquisediamond<br />

42,981+ POSTS<br />


Andamooka<br />

Opal<br />

Ahead of the Royal Tour of Australia in<br />

1954, the South Australian government<br />

commissioned Melbourne opal company<br />

Altmann & Cherny to source a specimen<br />

of exceptional quality to be presented to<br />

Queen Elizabeth II (right).<br />

#rubyring<br />

104,044+ POSTS<br />

#sculpturaljewelry<br />

40,844+ POSTS<br />

#wriststyle<br />

42,629+ POSTS<br />

The result was the Andamooka Opal, a 203-carat crystal opal<br />

of incredible size and intensity from the Andamooka opal fields.<br />

Adelaide jeweller Wendts set the gemstone in a palladium-anddiamond<br />

necklace, with matching earrings and cufflinks. The set<br />

remains part of Her Majesty’s personal jewellery collection and was<br />

displayed at Buckingham Palace in 2009.<br />

Trendspotting<br />

4Playful jewellery is one of the most<br />

popular trends of <strong>2020</strong> – and with<br />

warm spring weather on the horizon,<br />

consumers are turning to fun, almost<br />

child-like accessories to express<br />

themselves. From friendship bracelets<br />

to brightly-coloured beads and novelty<br />

themes, playful jewellery is fair game.<br />

4A gold necklace bearing the<br />

slogan ‘vote’, worn by former<br />

US First Lady Michelle Obama at<br />

the recent Democratic National<br />

Convention broadcast, has brought<br />

huge exposure to small jewellery<br />

brand By Chari. Founder Chari<br />

Cuthbert said she had experienced<br />

a “massive influx in orders and<br />

press inquiries” and “non-stop text<br />

messages, emails and phone calls”<br />

since Obama wore the piece.<br />

Secrets of the grave<br />

4A Polish cemetery has yielded<br />

a treasure trove of ancient<br />

jewellery. Analysis of more than<br />

3,500 pieces – which were crafted<br />

by the Goth and Gepid tribes –<br />

showed they were famliar with<br />

granulation, fire gilding, and<br />

filigree techniques. Intriguingly,<br />

the gold and silver used was of<br />

unexpectedly high purity; it is<br />

still unknown how the tribes<br />

refined the metals, as no refining<br />

equipment has been found.<br />

Almost 40<br />

Australian banks,<br />

including Suncorp,<br />

have enabled<br />

their cards to be<br />

processed by Eftpos<br />

for card-on-file<br />

digital payments.<br />

Digital Brainwave<br />

Eftpos has introduced a new digital payment<br />

option for Australian businesses who accept<br />

card-on-file payments from customers – that<br />

is, a card that has been securely stored in<br />

order to make regular payments.<br />

Stephen Benton, CEO Eftpos, explained, “It<br />

is early days but the service will increasingly<br />

enable more small and medium businesses<br />

to have Australia’s most popular cards –<br />

multi-network debit cards – processed by<br />

Eftpos, and potentially deliver significant<br />

cost savings. These potential savings are<br />

particularly important for small businesses<br />

during COVID-19 and recovery.”<br />

Top Product<br />

Ahead of Father’s Day, all eyes are on<br />

masculine accessories. The Hardware<br />

By Cudworth Dog Tag Pendant is<br />

crafted from ion-plated black stainless<br />

steel in a tyre pattern, with a 55cm<br />

chain. Matching cuff, cufflinks and rings<br />

available. Distributed by Cudworth.<br />

Robbery rouse<br />

4An Indian jeweller has fallen<br />

afoul of authorities after “scripting<br />

his own armed robbery”.<br />

According to local reports, the<br />

jeweller claimed a burqa-clad<br />

woman entered his workshop and<br />

robbed him of more than 2.5kg<br />

of gold jewellery and bullion at<br />

gunpoint. However, CCTV footage<br />

found the interaction between<br />

the two was “very civilised” and<br />

“somewhat friendly”. He later<br />

confessed to staging the robbery in<br />

order to collect insurance money.<br />


Published by Befindan Media Pty Ltd<br />

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

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

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

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

strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information<br />

believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed<br />

to the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or<br />

liabilities arising from the published material.



Make this your best Christmas ever!<br />

Increase your December sales by 38% *<br />

* 38% is the first time participant average increase on usual Christmas sales<br />

The concept is simple. For any customer who spends $150 or more instore, they get to<br />

pick a bon-bon off the Christmas tree. Each bon-bon contains a beautiful quality piece<br />

of jewellery, with one containing a stunning grand prize of a $3,000 diamond ring.<br />

The real success of the promotion however, is in the details which we’ve developed and<br />

refined to a science over 18 years – and now the complete formula is available to you!<br />

Cost includes:<br />

• Bon Bons (with hat, joke and novelty gift)<br />

• High quality jewellery prize (packed in Bon Bon ready to go)<br />

• Complete POS Kit (Posters, banners show cards etc)<br />

• Social Media Kit + Comprehensive ‘How-to’ manual<br />

• Phone support<br />

All you have to do is nothing - it’s all done for you!<br />

Average Bon Bon Investment is approx. $5,990 inc GST<br />

(Based on $200k December turnover - higher if more and lower if less)<br />

“Best<br />

promotion we<br />

have ever done!”<br />

“Everything<br />

is done for you it<br />

couldn’t be any<br />

easier!”<br />


“Had<br />

to do my rerders<br />

at night<br />

because we were<br />

just way too busy<br />

during the day”<br />

“My<br />

staff loved it<br />

and everyday was<br />

like a Christmas<br />

Party”<br />

“My marketing<br />

spend was the same as<br />

previous years but we<br />

made an extra $85,000<br />

with the BonBon Guy!”<br />

“We<br />

increased<br />

Christmas<br />

trade by 70%”<br />

“All<br />

I had to do<br />

was supply my<br />

logo”<br />

“Our part-time<br />

and casual staff<br />

went full-time... we<br />

were so busy!”<br />

“Best<br />

Christmas trade<br />

in 30 years!”<br />

“Biggest<br />

December trade<br />

since we started...<br />

Amazing!”<br />

“It’s a<br />

no-brainer”<br />

“We<br />

were up<br />

58% first<br />

year”<br />

“Just do it, you<br />

won’t regret it”<br />

“We<br />

were crazy<br />

busy”<br />

“Awesome<br />

atmosphere in the<br />

store, everyone had<br />

fun”<br />

Of all opportunities this Christmas, don’t let this one slip by!<br />

Call Adam on 0408 435 801 and secure your area now!

COVID-19 Update<br />

12%<br />

retail turnover increase<br />

for July <strong>2020</strong>, when<br />

compared with July 2019<br />

* Australian Bureau of Statistics<br />

24 October<br />

removal of capacity restrictions<br />

on West Australian businesses<br />

with introduction of ‘phase five’<br />

$600,000<br />

package to support<br />

advocacy groups such as<br />

Tenants Victoria to support<br />

vulnerable businesses and<br />

assist in rent mediation<br />

The ANZ-Roy Morgan Consumer<br />

Confidence Rating for the week<br />

of 22 August rose to 92.7, the<br />

highest it has been since 27<br />

June and up 42 per cent since<br />

March’s record low of 65.3<br />

* ANZ-Roy Morgan Survey of 1,547 Australians<br />



“There is cautious optimism...<br />

Because we can start to see<br />

that finish line, we can start<br />

to feel hopeful that our businesses<br />

can open their doors again but<br />

only if we continue to see this<br />

good progress. The need across<br />

our small businesses particularly<br />

is enormous and we need to<br />

keep responding.”<br />



“I have never seen a more uncertain<br />

economic outlook than we currently<br />

face both domestically and globally.<br />

With the stage four restrictions<br />

now likely to stay in place for most<br />

of <strong>September</strong>, Victoria’s recovery<br />

will be delayed until the December<br />

quarter when we expect the 9 per<br />

cent loss in the <strong>September</strong> quarter<br />

to be partially reversed.”<br />



“Early indications are that while<br />

[the extension of JobKeeper<br />

payments until March 2021 has]<br />

reduced the number of apprentice<br />

cancellations and suspensions,<br />

more is needed to support<br />

new apprentices and create<br />

employment opportunities for<br />

young people.”<br />

5%<br />

increase in credit and<br />

debit card spending<br />

for the week ending 21<br />

August, compared with<br />

the same week in 2019<br />

* Commonwealth Bank of Australia credit and<br />

debit card data analysis<br />

50,000<br />

estimated shortfall<br />

of apprentices in 2021<br />

without additional<br />

government support<br />

and funding<br />

* Business NSW report, ‘Skilling Australia<br />

for a better future’<br />

26,000<br />

number of rent relief<br />

agreements registered with<br />

Consumer Affairs Victoria over<br />

the four months to August <strong>2020</strong><br />

* State Of The States <strong>September</strong> <strong>2020</strong> Economic<br />

Performance Report, CommSec<br />

John Carter from the<br />

US, India’s Anantha<br />

Padamanaba,<br />

Steven Tranquilli<br />

from Italy, and Hong<br />

Kong-based Alan<br />

Chan will share<br />

insights.<br />

CIBJO<br />

4The second season of<br />

CIBJO’s webinar series<br />

<strong>Jeweller</strong>y Industry Voices begins<br />

on 3 <strong>September</strong> with ‘Gearing<br />

Up for the Holiday Seasons<br />

During a Pandemic’.<br />

The internationally-focused<br />

webinar features senior<br />

members of the jewellery<br />

industry discussing retail<br />

strategies, including<br />

e-commerce, safety protocols,<br />

the likely mood of holiday<br />

shoppers, inventory and pricing.<br />

The digital Fair<br />

will include<br />

sections for<br />

jewellery,<br />

loose gems<br />

and diamonds,<br />

services, displays<br />

and equipment.<br />

<strong>Jeweller</strong>y & Gem<br />

Digital World<br />

4Informa Markets, the<br />

organiser of international<br />

jewellery trade shows<br />

including the Hong Kong<br />

<strong>Jeweller</strong>y & Gem Fair, has<br />

announced a new ‘bespoke<br />

digital event’, <strong>Jeweller</strong>y &<br />

Gem Digital World.<br />

Th event will take place from<br />

27-29 October <strong>2020</strong> and will<br />

include product and servicebased<br />

exhibitions as well<br />

as webinars.<br />

Jennifer Shaheen<br />

will cover how<br />

retailers can best<br />

leverage customer<br />

information<br />

from the likes<br />

of Facebook and<br />

Google Ads.<br />

National Jeweler<br />

4US jewellery industry<br />

publication National Jeweler<br />

will begin the next series of<br />

its My Next Question webinar<br />

series in <strong>September</strong>.<br />

On 15 <strong>September</strong>, associate<br />

editor Lenore Fedow and<br />

Jennifer Shaheen, president<br />

The Technology Therapy<br />

Group, will discuss using<br />

data to increase customer<br />

knowledge and sales in<br />

‘How to make the most of<br />

your data’.<br />

10 | <strong>September</strong> <strong>2020</strong>

NEW: Bronzallure, Diamonds by DGA, JAG, and<br />

discover the new Charming collection by THOMAS SABO<br />

Duraflex Group is here to support you during this recovery period,<br />

and to help you succeed in <strong>2020</strong> and beyond. We are open to discussing<br />

anything you need such as extended payment terms to assist your<br />

business during this challenging time.<br />

Phil Edwards<br />


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

News<br />

Gold dealers linked to 2017 Melbourne robberies sentenced over stolen goods<br />

The three men were initially charged with<br />

more than 450 offences each, but a deal with<br />

prosecutors saw them plead guilty to single<br />

charges earlier this year.<br />

On 25 August, Judge Johns sentenced Alejandro<br />

Mendieta Blanco, 34, to four months in jail and<br />

a two-year community corrections order for<br />

purchasing stolen property valued at $29,000.<br />

He noted that Mendieta Blanco had immigrated<br />

to Australia alone as a teenager, and had built<br />

a successful business as well as supporting<br />

charitable causes.<br />

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

and watches stolen from Melbourne stores in 2017.<br />

However, he called it “a great shame” that<br />

his good reputation had been “sullied” by<br />

“succumbing to the temptation of easy money<br />

by dishonest means”.<br />

Colombian-born brothers Alejandro and Julio<br />

Mendieta Blanco, who previously operated the<br />

Gold Buyers Melbourne business, have been<br />

sentenced after pleading guilty to receiving stolen<br />

goods linked to the 2017 Melbourne jewellery<br />

store robberies.<br />

The pair were arrested in October 2017 following<br />

police surveillance and an undercover operation,<br />

which found the brothers and a long-term<br />

employee, Chey Tenenboim, were purchasing<br />

gold jewellery and watches without asking for<br />

identification, as is legally required.<br />

On 25 August, Judge Johns sentenced Alejandro<br />

Mendieta Blanco, 34, to four months in jail and<br />

a two-year community corrections order for<br />

purchasing stolen property valued at $29,000”<br />

In a previous hearing, Judge Scott Johns, of the<br />

County Court of Victoria, described their actions<br />

as “acting as a customer for the thief” and “very<br />

dishonest”.<br />

The Age and The Sydney Morning Herald report<br />

that Gold Buyers Melbourne recorded turnover<br />

of $66 million in the 2015-16 financial year.<br />

Mendieta Blanco previously flaunted a luxurious<br />

lifestyle on social media; in June 2017, four<br />

months before his arrest, pop star Delta<br />

Goodrem had serenaded him at his 30th birthday.<br />

Julio Mendieta Blanco, 37, was sentenced to<br />

a two-and-a-half-year community corrections<br />

order after pleading guilty to receiving stolen<br />

goods valued at $45,000, but was spared jail.<br />

The Age reports that he had read a letter in court<br />

expressing remorse and apologising to those who<br />

had been robbed; he also claimed to have been<br />


New Australia-first diamond resource now available for jewellery retailers<br />

involved with the selection of the diamond for their<br />

custom-made piece of jewellery.<br />

It will also allow the retailer to communicate their<br />

diamond expertise to the client during the search<br />

process.” Meanwhile, the Wholesale Price Portal<br />

allows for quick price comparisons, allowing retailers<br />

to find the best value diamond that meets their<br />

specifications.<br />

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

alongside customers.<br />

Following a three-year development process,<br />

the Nationwide <strong>Jeweller</strong>s buying group has now<br />

launched Global Diamond Vault, a diamond-sourcing<br />

program that lists more than 20,000 stones from<br />

suppliers in Australia, New Zealand, Antwerp,<br />

Mumbai, Hong Kong and New York.<br />

The program allows Nationwide members to easily<br />

compare diamonds from the group’s preferred<br />

suppliers using a range of different search filters, and<br />

includes both a Wholesale Price Portal and Retail<br />

Price Portal – the latter of which has been designed<br />

for retailers to use in conjunction with customers.<br />

While there are several international digital diamond<br />

sourcing platforms currently operating – including<br />

the World Federation of Diamond Bourses’ Get<br />

Diamonds and Rapaport’s RapNet – it is believed<br />

the Global Diamond Vault is the first one available to<br />

jewellers in Australia and New Zealand that includes<br />

an integrated customer-focused facility.<br />

Colin Pocklington, managing director Nationwide,<br />

said, “We expect the Retail Portal to be very popular<br />

with customers, as it allows them to be highly<br />

“We expect the Retail Portal to be<br />

very popular with customers, as it<br />

allows them to be highly involved with<br />

the selection of the diamond for their<br />

custom-made piece of jewellery”<br />

– Colin Pocklington, Nationwide <strong>Jeweller</strong>s<br />

Pocklington said the Global Diamond Vault<br />

represented another addition to Nationwide’s<br />

existing diamond marketing programmes, including<br />

the annual Antwerp diamond-sourcing trip which<br />

will be held as a virtual event in <strong>September</strong>.<br />

12 | <strong>September</strong> <strong>2020</strong>

NEW<br />

NEW SPRING SUMMER <strong>2020</strong> COLLECTIONS<br />

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p +61 (0)8 8221 5580<br />

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Rare colour diamonds found at Ellendale site<br />

The simplest time teaching<br />

system for children<br />

Be Smart | Be Cool<br />

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

Bright Colours • Interchangeable Straps<br />

Cool Designs • Perfect Gift Idea<br />

Their parents are<br />

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EasyRead fashion watches feature a<br />

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Speak to Roger on 0418 970 214<br />

Australian mining company India Bore Diamond<br />

Holdings (IBDH) has unearthed yellow diamonds<br />

with a rare purple fluorescence at the Ellendale<br />

diamond field in Western Australia.<br />

The natural fancy colour diamonds belong to a<br />

“large alluvial diamond deposit” and display the<br />

“highly attractive” fluorescence under ultraviolet<br />

light. Patrick Stringer, director IBDH, said, “The<br />

purple colour came as a complete surprise and<br />

may indicate that a new primary source of<br />

diamonds is nearby.<br />

“So far, we know that these special diamonds<br />

are contained within a specific area known as the<br />

L-Channel. We have a very detailed understanding<br />

of the L-Channel deposit, but we never expected to<br />

discover that brilliant fancy yellow diamonds would<br />

fluoresce purple.”<br />

Fluorescence is caused by variations in the atomic<br />

structure. According to the Gemological Institute<br />

of America (GIA), approximately 25–35 per cent<br />

of diamonds show fluorescence, with the most<br />

common colour being blue. Diamonds can also<br />

display yellow, orange, red, white, and green<br />

fluorescence – however, this is considered rare.<br />

While fluorescence is not a grading factor, unlike<br />

colour, clarity, cut, and carat, it is included in GIA<br />

grading reports.<br />

Some consider fluorescence undesirable, believing<br />

it creates a “milky”, “hazy” or “oily” appearance<br />

in white diamonds. However, Russian mining<br />

conglomerate Alrosa – the world’s largest diamond<br />

producer by volume – recently began marketing<br />

naturally fluorescent stones under its Luminous<br />

Diamonds brand.<br />

IBDH has tasked Delta Diamond Laboratory in<br />

Perth with further investigating the nature of the<br />

Ellendale diamonds’ unusual fluorescence.<br />

John Chapman, a scientist with Delta Diamond<br />

Laboratory, said, “Violet or purple fluorescence<br />

is normally associated with blue diamonds, so<br />

the fluorescence of these Ellendale fancy yellow<br />

diamonds is quite rare.”<br />

“The purple colour came as a complete<br />

surprise and may indicate that a new<br />

primary source of diamonds is nearby. So<br />

far, we know that these special diamonds<br />

are contained within a specific area”<br />

– Patrick Stringer, India Bore Diamond Holdings<br />

The Ellendale diamond field is estimated to contain<br />

at least 1.3 million carats of gem-quality diamonds,<br />

including fancy yellow diamonds. IBDH is one of two<br />

companies currently exploring diamond deposits in<br />

the region, which is located approximately 135km<br />

east of Derby in the West Kimberley.<br />

ASX-listed Gibb River Diamonds – formerly known<br />

as POZ Minerals – was granted exclusive mining<br />

and exploration leases for another section of the<br />

site in January <strong>2020</strong>; the main Ellendale Mine had<br />

lain dormant for five years following the liquidation<br />

of its previous operator, Kimberley Diamond<br />

Company.<br />

Ellendale – which has been producing diamonds<br />

since 1976 – was once the world’s premier source<br />

for yellow diamonds. With the closure of the Rio<br />

Tinto-operated Argyle Mine at the end of <strong>2020</strong>, it<br />

remains the most promising option for Australian<br />

commercial diamond production.<br />

info@easyreadtimeteacher.com<br />


While the Coronavirus has had a devastating impact<br />

on the industry, we have been able to focus on<br />

strengthening our internal infrastructure to provide you<br />

with better service and a greater business advantage.<br />

B 2 B B U S I N E S S P O R TA L<br />

You can check new arrivals, availability of<br />

stock, delivery status and place orders in<br />

one easy place.<br />

O N L I N E I NTE G R AT I O N<br />

Upload hundreds of products to your<br />

website with one click. No more manually<br />

entered items.<br />

D R O P S HIP P I N G<br />

Double your stock holding without any of<br />

the costs of carrying the stock. We pick, we<br />

pack and we deliver for you.<br />

V I R T U A L M E E T I N G S<br />

Virtual meetings allow us to meet you safely<br />

wih more samples on hand. Plus, our sales<br />

staff don’t take up space in your store.<br />

B R A N D U P A T E S<br />


G EORG INI<br />

OUI & M E<br />



This January we<br />

launched the Maserati<br />

watch range. This<br />

premium Italian Lifestyle<br />

Collection is the epitome<br />

of quality and style.<br />

Since taking over<br />

Georgini in April last<br />

year, Georgini has<br />

grown by an incredible<br />

67% in the quarter<br />

leading up to Christmas.<br />

We are set to launch<br />

popular French brand<br />

‘Oui & Me’, a well-priced,<br />

feminine watche brand<br />

with floral and pastel<br />

motifs. Available August.<br />

Next month, we are<br />

relaunching Morellato<br />

Watch Straps, including<br />

the ever popular ‘Easy<br />

Click’ and ‘Green’<br />

Collections.<br />

We re-launched the premium<br />

Swiss brand Maurice Lacroix<br />

into Australia and New<br />

Zealand in late 2019. Since<br />

this time, the new Aikon<br />

Sports Automatics have<br />

proven to be best sellers.<br />


News<br />

In Brief<br />

Buying group launches <strong>2020</strong><br />

Apprentice of the Year Competition<br />

De Beers reduces<br />

diamond prices<br />

4 Following a 54 per cent drop in revenue<br />

for the first half of <strong>2020</strong>, De Beers will cut<br />

the price of rough 1-carat diamonds by<br />

9 per cent, according to multiple media<br />

reports. The decision was reportedly<br />

motivated by sluggish demand and<br />

increased competition from smaller<br />

mining companies. The price of smaller<br />

stones will remain unchanged. De Beers<br />

previously announced a reduced production<br />

target of 25–27 million carats for <strong>2020</strong>.<br />

Tiffany Diamond makes<br />

film debut<br />

4The Tiffany Diamond will make its<br />

first film appearance in the upcoming<br />

Agatha Christie mystery Death On The<br />

Nile. The 128-carat canary yellow stone,<br />

which is set in a diamond necklce, will<br />

be worn by actress Gal Gadot. Just three<br />

other women have donned the diamond<br />

since it was unearthed in 1877: socialite<br />

E. Sheldon Whitehouse, actress Audrey<br />

Hepburn, and entertainer Lady Gaga.<br />

Rare Rolex sets auction<br />

house record<br />

4A 1978 Rolex Military Submariner has<br />

broken the watch sale record of auction<br />

house Fellows, being sold to a telephone<br />

bidder for £165,200 ($AU299, 390). The<br />

watch is one of just 1,200 models which<br />

were manufactured for British Special<br />

Forces and never available for public<br />

purchase. Fellows set a price guide of<br />

£55,000–70,000, which was exceeded<br />

during a five-minute bidding war.<br />

442-carat diamond<br />

found in Lesotho<br />

4Mining company Gem Diamonds has<br />

reported the discovery of a 442-carat<br />

Type II white diamond at its Letšeng<br />

mine in Lesotho, in southern Africa. The<br />

stone is the largest gem-quality diamond<br />

to be unearthed at the mine this year<br />

and the second-largest from Africa,<br />

surpassed only by the 549-carat stone<br />

mined by Lucara at the Karowe Mine in<br />

Botswana. The Letšeng stone’s value is<br />

estimated at $US18 million.<br />

Judy Cameron – who will join the judging panel this year – presents the Nathan Cameron Perpetual Trophy<br />

to the 2019 Nationwide <strong>Jeweller</strong>s Apprentice of the Year, Jessica Garbo of Penrith <strong>Jeweller</strong>y Workshop.<br />

The Nationwide <strong>Jeweller</strong>s buying group<br />

has kicked off its annual jewellery design<br />

and manufacturing competition for<br />

apprentices in Australia and New Zealand,<br />

marking the ninth year of the contest.<br />

Entry forms have been sent to Nationwide<br />

members across the two countries, and<br />

apprentices working in all member stores<br />

are invited to compete.<br />

For the first time, the Apprentice<br />

of The Year Competition will be<br />

structured around a detailed<br />

customer brief with thoughts,<br />

ideas, and budget included.<br />

The new format is designed to reflect the<br />

market demand for custom-made jewellery,<br />

with the complexity of the brief varying for<br />

each of the four apprentice years.<br />

Entrants will be judged on their ability<br />

to interpret the brief in a professional<br />

manner, as well as project a quote for the<br />

design at wholesale and retail.<br />

The brief has been set by Niven<br />

McArthur, merchandise and marketing<br />

director Nationwide, who is a qualified<br />

manufacturing jeweller.<br />

“We see continued strong growth in<br />

custom design, and the need for young<br />

jewellers to develop their skills in working<br />

with customers, and project costing,<br />

to ensure a successful and profitable<br />

outcome,” McArthur said.<br />

Entrants have until 2 November <strong>2020</strong><br />

to submit their finished entry, with the<br />

winner announced in mid-November.<br />

They will be awarded the Nathan Cameron<br />

Perpetual Trophy and a prize valued at $1,000.<br />

Judy Cameron, of Camerons Fine <strong>Jeweller</strong>s<br />

in Swan Hill, Victoria, will be part of the<br />

judging panel, alongside McArthur and<br />

Nationwide’s diamond and gemstone expert,<br />

Cindy Eidukevicius-Jones.<br />

“We see continued strong growth<br />

in custom design, and the need<br />

for young jewellers to develop<br />

their skills in working with<br />

customers, and project costing,<br />

to ensure a successful and<br />

profitable outcome”<br />

– Niven McArthur, Nationwide <strong>Jeweller</strong>s<br />

The contest has been slightly delayed<br />

this year by the COVID-19 pandemic; it<br />

was initially scheduled to begin in June,<br />

with the winners announced at the<br />

International <strong>Jeweller</strong>y & Watch Fair.<br />

Previous winners include Jessica Garbo<br />

of Penrith <strong>Jeweller</strong>y Workshop in western<br />

Sydney, who won in 2019, Mikaela Donovan<br />

of Georgies Fine <strong>Jeweller</strong>y in Narooma<br />

in 2018, and Ryan Kitchen of Diamond<br />

Boutique in Canberra in 2017.<br />

16 | <strong>September</strong> <strong>2020</strong>

US court overturns judgment in $29 million Tiffany &<br />

Co. counterfeit case against Costco supermarket<br />

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

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

The US Court of Appeals for the Second Circuit has<br />

overturned a judgment against discount supermarket<br />

chain Costco over its use of the Tiffany & Co.<br />

trademark, which would have seen it liable to pay<br />

$US21 million ($AU29 milion) in damages.<br />

The dispute – which has proceeded through US courts<br />

for more than seven years – centres on a collection<br />

of six-prong diamond engagement rings sold by<br />

Costco with the descriptor “Tiffany” on the tags and<br />

in-store signage. It is estimated that 3,349 customers<br />

purchased the rings from Costco, netting it $US3.7<br />

million in profits; it sold a 1-carat platinum solitaire<br />

ring with VS clarity for $US6,399.99, while a similar<br />

ring on the Tiffany & Co. website retails for $US13,400.<br />

Costco twice appealed a summary judgment in Tiffany<br />

& Co.’s favour, handed down by Judge Laura Taylor<br />

Swain of the US District Court for the Southern District<br />

of New York, resulting in the case being referred to the<br />

Second Circuit.<br />

In its appeal filing, Costco argued that the rings<br />

did not meet the standard for counterfeiting as<br />

they bore “non-Tiffany trademarks”, were not<br />

sold in Tiffany-branded packaging, and were not<br />

accompanied by Tiffany & Co. paperwork.<br />

In a 3-0 decision handed down on 17 August <strong>2020</strong>,<br />

the Second Circuit upheld Costco’s appeal, ruling<br />

that the lower court had erred in making a summary<br />

judgment in Tiffany’s favour and that the case must<br />

be retried by a jury.<br />

The judgment stated, “A jury could reasonably<br />

conclude that consumers of diamond engagement<br />

rings would know or learn that ‘Tiffany’ describes a<br />

style of setting not unique to rings manufactured by<br />

Tiffany, and [could] recognize [sic] that Costco used the<br />

term only in that descriptive sense.”<br />

The court also held that reasonable consumers would<br />

determine that the rings were not manufactured by<br />

Tiffany & Co. based on factors such as price, place of<br />

purchase, and packaging.<br />

Leigh Harlan, senior vice-president, secretary<br />

and general counsel Tiffany & Co., said, “We are<br />

disappointed in the Court’s ruling, which finds that a<br />

jury, rather than the judge, should have decided the<br />

question of liability in the first trial.<br />

“We continue to believe that the District Court was<br />

correct in its findings, and that the jury’s finding on<br />

damages, which resulted in a $21 million award<br />

for Tiffany & Co., is a clear indicator of the strength<br />

of the Tiffany brand, and of the jury’s outrage over<br />

Costco’s actions.<br />

She added that company had “no qualms about trying<br />

this case again” and said Tiffany & Co. “remained<br />

confident” a jury would find in its favour. At the time<br />

of publication, representatives for Costco had not<br />

commented publicly on the Court’s decision.<br />

In its initial filing against Costco in 2013, Tiffany & Co.<br />

argued that the Costco rings constituted trademark<br />

infringement and counterfeiting, as it was possible<br />

customers were misled to believe that the rings<br />

were indeed manufactured by Tiffany & Co. It also<br />

contended that Costco had instructed its jewellery<br />

suppliers to copy Tiffany & Co. ring designs.<br />

Costco countered that the descriptor “Tiffany” simply<br />

referred to the six-prong setting of the rings and that<br />

“Tiffany setting” could be considered a generic term in<br />

the jewellery industry.<br />

Judge Swain ruled in Tiffany’s favour in 2015,<br />

stating, “Based on the record evidence, and despite<br />

[its] arguments to the contrary, no rational finder of<br />

fact could conclude that Costco acted in good faith<br />

in adopting the Tiffany mark.”<br />

A jury later awarded Tiffany & Co. $US13.75 million,<br />

representing lost profits and punitive damages.<br />

Judge Swain later dismissed a Costco appeal in<br />

2017, increasing the amount owed to Tiffany & Co.<br />

to $US21 million.

News<br />

Hong Kong trade show<br />

cancelled, replaced with<br />

digital event<br />

GIA updates lab-grown diamond grading reports<br />

The Hong Kong Trade Development Council (HKTDC)<br />

has announced that the Hong Kong Watch & Clock<br />

Fair, which was scheduled to take place on 1–5<br />

<strong>September</strong>, has been cancelled.<br />

The decision was announced on 14 August, following<br />

the tightening of COVID-19 restrictions by the Hong<br />

Kong government.<br />

In a statement posted online, HKTDC management<br />

said, “The Hong Kong Special Administrative<br />

Region Government has tightened various disease<br />

prevention and control measures and extended<br />

entry restrictions for incoming visitors, while many<br />

countries and regions have also issued travel alerts<br />

and implemented quarantine measures.<br />

“These mean that overseas exhibitors and buyers<br />

will have great difficulty joining the HKTDC Hong<br />

Kong Watch & Clock Fair.”<br />

“We believe Autumn Sourcing Week<br />

Online will carry on the momentum<br />

to assist global exhibitors and buyers<br />

overcome some of the challenges during<br />

these trying times”<br />

– Hong Kong Trade Development Council statement<br />

Following discussions with industry representatives,<br />

the HKTDC will shift the fair to a digital format as<br />

part of the HKTDC Autumn Sourcing Week Online<br />

(ASWO) event, to be held from 16–27 November.<br />

A similar digital event, HKTDC Summer Sourcing<br />

Weeks Go Online, was successfully conducted<br />

earlier this year.<br />

“We believe Autumn Sourcing Week Online will<br />

carry on the momentum to assist global exhibitors<br />

and buyers overcome some of the challenges<br />

during these trying times,” the HKTDC statement<br />

said. “The business matching and virtual meeting<br />

features offered by ASWO will help boost business<br />

connections.”<br />

Further details of the November event will be<br />

announced in due course. The next Hong Kong<br />

Watch & Clock Fair will take place from 7–11<br />

<strong>September</strong> 2021.<br />

Several other Hong Kong-based shows have<br />

been postponed or cancelled amid the COVID-19<br />

pandemic.<br />

These include <strong>Jeweller</strong>y & Gem Asia, organised<br />

by Informa Markets, and the HKTDC’s Hong Kong<br />

International <strong>Jeweller</strong>y Show and Diamond, Gem<br />

& Pearl Show, which was postponed twice in <strong>2020</strong><br />

before being cancelled.<br />

Starting later on in <strong>2020</strong>, GIA reports will include the same colour and clarity grades for both synthetic and<br />

natural diamonds.<br />

The Gemological Institute of America (GIA)<br />

has confirmed it will use the same clarity and<br />

colour grades on its reports for lab-grown<br />

diamonds as it does for natural stones,<br />

starting in the fourth quarter of <strong>2020</strong>.<br />

The change was announced at the recent<br />

JCK Virtual event, with Susan Jacques, CEO<br />

GIA, saying that the decision was made to<br />

reflect “consumer demand”.<br />

“We want to make sure that consumers are<br />

educated, that we can protect their trust in<br />

the gem and jewellery industry as well as the<br />

products they are buying.<br />

“As consumers adopt this new category,<br />

it’s important that we evolve with the new<br />

consumer,” Jacques explained.<br />

Previously, GIA reports for lab-grown diamonds<br />

– which it has offered since 2006 – used general<br />

descriptions in the colour and clarity sections,<br />

rather than the specific grades that are standard<br />

for natural diamonds.<br />

GIA began producing synthetic diamonds<br />

in 2016 in order to better understand their<br />

unique properties.<br />

Belgian organisation HRD Antwerp<br />

harmonised its natural and lab-grown colour<br />

and clarity grades in March 2019, while<br />

International Gemological Institute (IGI) has<br />

offered full standardised reports for labgrown<br />

diamonds since 2005.<br />

In a statement, IGI management said, “We<br />

are proud to have been the first institute<br />

to enter this arena, instilling confidence in<br />

lab-grown diamond grading for the entire<br />

industry – from manufacturers and retailers<br />

to consumers – since 2005.<br />

“We are proud to see other organisations<br />

adopt our long-held philosophy regarding the<br />

dual-channel legitimacy of natural and labgrown<br />

diamonds, and believe professionals<br />

and consumers alike will benefit from the<br />

increased transparency in our industry.”<br />

Roland Lorie, CEO IGI, told <strong>Jeweller</strong>, “While<br />

other labs decided to focus only on a grading<br />

system for natural diamonds, IGI took the<br />

risk of certifying lab-grown stones, even<br />

when volume was minimal, because we not<br />

only thought it was the right thing to do, but<br />

had an inclination that the industry would<br />

one day embrace these diamonds.<br />

“We want to make sure that<br />

consumers are educated, that we<br />

can protect their trust in the gem<br />

and jewellery industry as well as<br />

the products they are buying”<br />

– Susan Jacques, Gemology Institute of America<br />

“We wanted to ensure consumers knew<br />

exactly what they were buying, so they could<br />

be confident in their purchases.”<br />

He added, “In the last year, lab-grown<br />

inventory and prominence have drastically<br />

increased, resulting in an interesting<br />

financial opportunity for our industry. “Today,<br />

major gemological labs want to get their<br />

share of the growing business.”<br />

The GIA announcement came two weeks after<br />

another US organisation, American Gem Society<br />

Laboratories (AGS), resumed grading lab-grown<br />

diamonds seven years after it abandoned the<br />

practice due to lack of demand.<br />

The AGS reports use standard grading<br />

terminology but add the denomination ‘LG’ to<br />

indicate the diamond’s synthetic origin, note<br />

the method of manufacturing – such as<br />


18 | February <strong>2020</strong>

Peter W Beck is looking to the future by<br />

focusing on what we do best – delivering<br />

high quality Australian made precious metal<br />

products and services that you can rely on.<br />

We want to assure you that Peter W Beck is<br />

by your side through this transition period<br />

as we emerge into a new normal for retail.<br />


Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au<br />

14 Duncan Court, Ottoway Park, SA, 5013 Australia<br />

Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au | Web www.pwbeck.com.au

Largest-ever Russian colour diamond<br />

unearthed in remote Yakuta region<br />

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

region of Yakutia, and is currently being assessed by Alrosa specialists.<br />

A subsidiary of Alrosa has discovered the largest natural fancy colour<br />

diamond ever found in Russia, weighing 236 carats.<br />

The stone is described as having an “natural and intense yellow-brown<br />

colour” and was mined at the Ebelyakh deposit in the remote region of<br />

Yakutia. It is estimated at between 120 and 230 million years old.<br />

Pavel Vinikhin, director of diamond cutting and polishing, Alrosa, said, “Such<br />

a large natural colour rough diamond is a unique discovery. Now, the stone<br />

is at Alrosa’s United Selling Organization being studied and evaluated by our<br />

specialists. After that, we will decide whether to give it to our manufacturers<br />

for cutting, or sell it as a rough.<br />

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

has the potential to give several high quality polished diamonds.”<br />

Ebelyakh has produced several other fancy colour diamonds; in 2017, three<br />

notable stones – an intense yellow, pink, and purple-pink – were unearthed<br />

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

offered for sale.<br />

“Such a large natural colour rough diamond is a unique<br />

discovery. Now, the stone is at Alrosa’s United Selling<br />

Organization being studied and evaluated by our specialists”<br />

– Pavel Vinikhin, Alrosa<br />

Verkhne-Munskoye, another Yakutia deposit, produced a 17.4-carat yellow<br />

diamond in February this year.<br />

While fancy colour diamonds currently account for less than 0.1 per cent of<br />

Alrosa’s total output, it has previously indicated that it intends to become the<br />

world’s premier source of fancy colour stones.<br />

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

closure of the Argyle Mine in Australia, we will become the world’s largest<br />

producer of coloured diamonds and can therefore go after leadership in the<br />

coloured diamond market.”<br />

An analysis by the Fancy Color Research Foundation recently determined<br />

that prices for pink diamonds had increased by 116 per cent over the past<br />

10 years; yellow diamond prices rose by 21 per cent and blue diamond<br />

prices 81 per cent.

Gold dealers linked to 2017 Melbourne robberies sentenced over stolen goods<br />


a doctor in Colombia and expressed a desire to help the community by<br />

working in the public health sector in Australia.<br />

Tenenboim, 39, was sentenced earlier in August for receiving stolen<br />

goods valued at $144,638.<br />

At the sentencing hearing for Tenenboim, The Age quotes Judge Johns as<br />

saying, “You thought you could do it without getting caught, so you did.<br />

“You were clearly aware [that] detection of your crime would be<br />

extremely difficult given the fact the stolen property was unable to be<br />

identified once it was melted down.”<br />

According to The Age report, Judge Johns also noted that Tenenboim<br />

had worked at his father’s jewellery store as a teenager and that an<br />

armed robbery had devastated the business and his family.<br />

“That experience has left a marked impression on you. It is a shame<br />

that those experiences didn’t serve as a motivator for you to distance<br />

yourself from those that would seek to buy stolen goods,” Judge Johns<br />

is reported to have said.<br />

In addition to the prison sentence, Tenenboim must also complete 200<br />

hours of community service under a community corrections order.<br />

GIA updates lab-grown diamond grading reports<br />


chemical-vapour deposition or high-pressure, high-temperature – and<br />

include the disclaimer: “It is important to note that the color and clarity<br />

grades do not reflect the rarity of the laboratory-grown diamond, but rather<br />

the quality and consistency of the manufacturing process.”<br />

“While other labs decided to focus only on a grading<br />

system for natural diamonds, IGI took the risk of<br />

certifying lab-grown stones, even when volume was<br />

minimal, because we not only thought it was the right<br />

thing to do, but had an inclination that the industry<br />

would one day embrace these diamonds”<br />

– Roland Lorie, International Gemological Institute<br />

Jason Quick, executive director AGS, said, “We just saw there was<br />

a need for a different type of report, where we clearly articulate<br />

what a laboratory-grown diamond is. We wanted to provide full<br />

transparency.”<br />

US-based Gemological Science International (GSI) began offering<br />

a similarly comprehensive report for lab-grown diamonds in March<br />

this year, which includes information about detected post-growth<br />

treatments.<br />


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Ready<br />

Get<br />

Polish your gemstone<br />

knowledge online<br />

From lapis lazuli and coloured diamonds to<br />

synthetic moissanite and zebra rock, brush up<br />

on your gemstone knowledge in the downtime.<br />

The GAA has over 14 years of gemmology<br />

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Passionately educating the industry, gem enthusiasts<br />

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

REVIEW<br />

Gems<br />

The exotics: Padparadscha sapphire<br />

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

Padparadscha sapphire is a rare member of<br />

the corundum family, coveted for its fusion<br />

of orange and pink. Its exotic, expensive and<br />

elusive nature has led to countless imitations<br />

propagated by those keen to cash in on the<br />

famous Padparadscha name.<br />

The pretty Padparadscha gemstone was<br />

first discovered in Sri Lanka and named<br />

after the Sinhalese word “Padmaraga”,<br />

meaning lotus blossom – a species of<br />

flower that was originally a soft pastel<br />

orangey-pink.<br />

Later sources of Padparadscha sapphire<br />

include Madagascar and Tanzania; however,<br />

purists believe the “true” material to be of<br />

Sri Lankan origin.<br />

Coloured by the trace elements chromium<br />

and iron, Padparadscha sapphire possesses<br />

various attractive attributes besides its<br />

obvious beauty.<br />

It has a high hardness – nine on Mohs’<br />

scale – and excellent durability, making<br />

it a popular choice for everyday wear and<br />

more recently as an engagement ring<br />

gemstone. Additionally, it can withstand<br />

the heat generated by standard jewellery<br />

repair processes.<br />

In 2007, the Laboratory Manual<br />

Harmonisation Committee (LMHC), of<br />

whom the Gemmological Association of<br />

Australia (GAA) is an affiliate, standardised<br />

the nomenclature used to describe<br />

Padparadscha sapphire.<br />

This was later updated in 2011 as:<br />

“Padparadscha sapphire is a variety of<br />

corundum from any geographical origin<br />

whose colour is a subtle mixture of pinkish<br />

orange to orangey-pink with pastel tones<br />

and low to medium saturations when<br />

viewed in standard daylight.”<br />

The description excludes modifiers other<br />

than pink or orange. In addition, the overall<br />

colour must be free of major, uneven colour<br />

distribution when viewed with the unaided<br />

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

and should not have any yellow or orange<br />

epigenetic material affecting the overall<br />

colour of the stone.<br />

While most dealers and collectors agree<br />

this gemstone should display a blend of<br />

pink and orange, it’s interesting to note<br />

that the exact ratio, tone and saturation<br />

are open to interpretation, as are the<br />

presence of secondary tones such as<br />

brown, yellow and red.<br />

The LMHC Padparadscha definition<br />

excludes any treatment, except for<br />

traditional heat, which is used to dissolve<br />

‘silk’ and improve clarity.<br />

According to CIBJO, the World <strong>Jeweller</strong>y<br />

Padparadscha<br />

From the Sinhalese<br />

word Padmaraga,<br />

meaning ‘lotus<br />

blossom’<br />

Colour: Orangey-pink<br />

Found in: Sri Lanka,<br />

Madagascar and<br />

Tanzania<br />

Mohs Hardness: 9<br />

Class: Corundum<br />

Lustre: Vitreous<br />

Formula: Al 2<br />

O 3<br />

Confederation, only untreated and heattreated<br />

Padparadscha sapphire qualify for<br />

the prestigious title of Padparadscha.<br />

In the early 2000s, bulk beryllium diffusiontreated<br />

sapphire flooded the market.<br />

This treatment involved coating sapphires<br />

with beryllium oxide and other compounds<br />

and subjecting them to very high<br />

temperatures for several days, causing<br />

the diffusion of colour through most or all<br />

of the stone and creating a Padparadschalike<br />

appearance.<br />

Fortunately this treatment can now be<br />

detected through a combination of standard<br />

and advanced gemmological techniques.<br />

Other treatments used to create a<br />

Padparadscha-like appearance include<br />

coating, dying, irradiation and glass-filling.<br />

Gemstones such as topaz, spinel and garnet<br />

may be sold as Padparadscha imitations,<br />

and copycats like synthetic orange-pink<br />

sapphires are plentiful.<br />

Finding a true Padparadscha sapphire can<br />

be challenging due to its limited availability.<br />

The key is to establish a good relationship<br />

with a competent gemmologist, valuer or<br />

jeweller and ask for a coloured gemstone<br />

report from a reputable laboratory.<br />

<strong>September</strong> <strong>2020</strong> | 25


Local Talent<br />



Cieri Earrings<br />

Metals: 18-carat white and<br />

yellow gold<br />

Gemstones: Black and white<br />

diamonds, yellow sapphires<br />

Yuki Mathwin<br />

Melbourne, VIC<br />



The Bay Ring<br />

Metals: Fine and sterling<br />

silver<br />

Gemstones: Vitreous enamel,<br />

Cygnet Bay pearl<br />

Claire Townsend<br />

Perth, WA<br />


Flame Tree Ring<br />

Metals: Mokume gane<br />

yellow gold and platinum<br />

Gemstones: Sapphires<br />

Jason Ree<br />

Sydney, NSW<br />

Australia & New Zealand<br />

<strong>Jeweller</strong>s<br />

Showcase<br />

Australia and New Zealand are not only home to some of the<br />

rarest gemstones in the world, but also the most talented jewellers.<br />

<strong>Jeweller</strong> showcases a tapestry of local masterpieces that have been<br />

meticulously crafted with great artisanship, right here on home soil.<br />


Amethyst Rosary<br />

Stacking Ring & Belle<br />

Époque Ruby Rings<br />

Metals: 9-carat and<br />

18-carat<br />

yellow gold<br />

Gemstones: Rose-cut<br />

amethyst, rubies<br />

Victoria Buckley<br />

Sydney, NSW<br />


DESIGN<br />

Hiddenite Dress Ring<br />

Metals: 18-carat yellow<br />

gold, platinum<br />

Gemstones: 8.3-carat<br />

yellow cushion-cut<br />

hiddenite<br />

Matthew Neale<br />

Brisbane, QLD<br />

26 | <strong>September</strong> <strong>2020</strong>


Diamond Chandelier Pendant<br />

Metals: 18-carat white<br />

and rose gold<br />

Gemstones: South Sea pearl, round<br />

brilliant-cut white diamonds<br />

Rohan Milne<br />

Perth, WA<br />


Get Knotted<br />

Mismatched Earrings<br />

Metals: 9-carat yellow<br />

gold, sterling silver<br />

Gemstone: None<br />

Claire Antill<br />

Queenstown, NZ<br />



Blue Wave Ring<br />

Metals: 18-carat<br />

yellow gold,<br />

sterling silver<br />

Gemstones:<br />

South Sea pearl,<br />

pavé-set blue<br />

topaz<br />

Benjamin Ryan<br />

Sydney, NSW<br />



Re-Growth Ring<br />

Metals: Recycled<br />

18-carat white gold<br />

Gemstones: White<br />

diamonds<br />

Orion Joel Chibnall<br />

Melbourne, VIC<br />


Flame Earrings<br />

Metals: 18 carat rose gold,<br />

black rhodium<br />

Gemstones: Round brilliant<br />

white diamonds<br />

Matthew Staff<br />

Brisbane, QLD<br />



Ascendance Ring<br />

Metals: 14-carat<br />

white gold<br />

Gemstones:<br />

1.22-carat elongated<br />

hexagonal-cut<br />

Australian sapphire,<br />

white diamonds<br />

Layla Kaisi<br />

Auckland, NZ<br />

28 | <strong>September</strong> <strong>2020</strong>

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Marketing Review<br />

Bulgari’s Mai Troppo campaign <strong>2020</strong>, featuring spokeswomen Lily Aldridge, Naomi Scott, and Zendaya<br />

Brand Ambassadors:<br />


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

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


Endorsement<br />

Insights<br />

R<br />

ecruiting a high-profile celebrity to<br />

provide public testimony for the worth<br />

of a consumer product is a longstanding<br />

marketing strategy.<br />

From Michael Jordan and Nike to Charlize Theron and Keira<br />

Knightley in any number of perfume ads, the recipe appears<br />

to be simple: take one consumer brand, add a famous face to<br />

offer their endorsement, publicise the union on TV and in print,<br />

and voilà! You have achieved better brand recognition, a higher<br />

level of perceived credibility, and – hopefully – increased sales<br />

of your product.<br />

In 2011, Dr Marc Brennan, then a lecturer at Sydney<br />

University’s Department of Media and Communications, told<br />

<strong>Jeweller</strong>: “Brand ambassadors are there in the hope that<br />

consumers have a respect for that celebrity, and that respect<br />

will become associated with the products.<br />

“It’s about the meaning that’s attached to the celebrity<br />

suddenly becoming attached to the product.” Brennan’s<br />

emphasis on meaning cannot be underestimated and<br />

in previous decades, the celebrity strategy seemed<br />

straightforward – yet by the 2010s, it was no longer such<br />

a simple formula.<br />

A study by Los Angeles-based advertising analytics agency Ace<br />

Metrix found that – as far as TV advertising is concerned, at least<br />

– using celebrities could hurt a brand more than helping it.<br />

On average, ads without celebrities earned higher scores<br />

than those with celebrities in the categories of likeability,<br />

desire for the product, watchability and the ad’s power to hold<br />

a viewer’s attention.<br />

Reasons for the failures of the ads featuring celebrities<br />

included confusion about the product being endorsed, a dislike<br />

of the celebrity – many stars are polarising – or simply that<br />

viewers found the ads to be boring.<br />

“No amount of celebrity endorsement can replace a wellcrafted<br />

message and execution,” Ace Metrix chief executive<br />

Peter Daboll said. “It’s the message and how it resonates with<br />

consumers that matters.”<br />

Granted, not every watch and jewellery brand is necessarily<br />

investing in the high-cost, high-impact TV campaigns that<br />

proliferate in industries like fashion and perfume, but one<br />

important fact holds true across the board: consumers are<br />

changing, and the mere presence of a celebrity will no longer<br />

necessarily yield positive results.<br />

These insights were later affirmed by an analysis of celebrity<br />

20-25%<br />

proportion of<br />

advertisements that<br />

include a celebrity<br />

endorsement<br />

University of Vienna<br />

analysis, 2017<br />

4%<br />

estimated sales<br />

increase from<br />

appropriate celebrity<br />

endorsement<br />

American Journal of<br />

Advertising<br />

$9.7b<br />

estimated value<br />

of social-media<br />

influencer marketing<br />

industry, <strong>2020</strong><br />

State of Influencer Marketing<br />

<strong>2020</strong> Benchmark Report,<br />

Influencer Marketing Hub<br />

600<br />

daily advertising<br />

messages to which<br />

consumers are<br />

exposed<br />

Microsoft analysis<br />

$22.5m<br />

value of publicity<br />

earned by Nike from<br />

Tiger Woods’ 2019<br />

Masters win<br />

Apex Marketing Group<br />

endorsement effectiveness by researchers at the University<br />

of Vienna – albeit with some caveats.<br />

They found that celebrity endorsement could positively<br />

impact attitudes toward the endorsed product if there was a<br />

clear ‘match’ between the celebrity and the product. Actors<br />

performed best as endorsers, followed by athletes, TV hosts,<br />

models and musicians.<br />

Notably, male celebrities evoked “substantially stronger<br />

effects” when compared with female celebrities, which was<br />

attributed to their greater perceived prestige, expertise, and<br />

credibility. Even more significant was the fact that consumers<br />

appeared to respond better to implicit endorsements, rather<br />

than explicit ones.<br />

“Often, celebrities are used simply for perceived<br />

endorsement,” Andy Wright, then-general manager of<br />

consultancy firm Interbrand Australia, explained to <strong>Jeweller</strong><br />

in 2011. “The desired consumer outtake is, ‘If a celebrity is<br />

willing to put their name on a product and it’s good enough<br />

for them, then it’s good enough for me.’<br />

“Brands need to try harder; simply taking pictures of the<br />

ambassador with the brand or product is no longer enough.”<br />

‘Trying harder’ involves thinking about the relevance of the<br />

ambassador to the brand, and even more vitally – as Daboll<br />

said – making sure they stick to the message of what the<br />

brand is about. If these two factors are missing, consumers<br />

will not respond kindly to the marketing of the brand<br />

regardless of how famous the celebrity may be.<br />

They’re only human<br />

The other major hazard that advertising executives and brand<br />

managers need to negotiate is, of course, the fallibility of<br />

celebrities. Tying a brand to the public image of a celebrity<br />

is a high-risk endeavour.<br />

“The biggest potential pitfall comes from the fact that<br />

celebrities are people,” said Brennan. “Even though they can<br />

be very tightly managed, they can – and do – fall from grace.<br />

Lindsay Lohan is an example of someone for whom brand<br />

value changed dramatically in just a few years.”<br />

This point was reaffirmed by Wright: “Celebrities are so<br />

powerful because of their influence and omnipresence –<br />

but they’re just as destructive for those same reasons.”<br />

Indeed, US celebrity endorsement data firm Spotted recently<br />

developed a specific index to help brands take out ‘disgrace<br />

insurance’ – a policy that financially protects them if a<br />

contracted celebrity displays “scandalous behaviour”.<br />

<strong>September</strong> <strong>2020</strong> | 31

MARKETING REVIEW | Brand Ambassadors<br />

L to R: Gisele Bündchen, Kate Moss, and Kate Upton for David Yurman<br />

Spotted’s algorithm can apparently<br />

predict the likelihood of a celebrity<br />

engaging in activity which could damage<br />

the reputation of their associated brands.<br />

Perhaps the most spectacular example<br />

of public image free-fall is Tiger<br />

Woods. Regarded by many as the finest<br />

golfer in history, he demonstrated<br />

professionalism, single-mindedness<br />

and a will to win that was second to<br />

none. Combining that with his image as<br />

a wholesome family man, Woods was<br />

the advertising world’s equivalent of<br />

Leonardo Da Vinci’s Vitruvian Man.<br />

He was paid product endorsement fees<br />

that made him the highest-earning<br />

sports star on the planet. But following<br />

revelations of misdemeanours in his<br />

private life, one by one, Woods’ sponsors<br />

– including Gillette, Accenture, AT&T and<br />

Gatorade – dropped him like a stone.<br />

Despite initially standing by him, watch<br />

brand TAG Heuer, widely regarded as<br />

one of the best ‘matched’ brands for<br />

Woods, severed its relationship with him<br />

in 2011. Yet he was quickly able to secure<br />

a new association with an even more<br />

prestigious watch brand: Rolex.<br />

At the time, Rolex said in a statement:<br />

“Tiger Woods still has a long career ahead<br />

of him, and… has all the qualities required<br />

to continue to mark the history of golf.” The<br />

prediction proved prescient. In the years<br />

since, Woods has managed an incredible<br />

comeback story.<br />

Following four back surgeries and a 11-<br />

year major title drought which saw him<br />

drop out of the top 1,000 golfers, Woods<br />

won the 2019 Masters at age 43; on his<br />

wrist was a Rolex Deepsea.<br />

Sponsorship analytics firm Apex<br />

Marketing Group estimated that Woods’<br />

other long-term sponsor, Nike, profited<br />

from the fairy-tale narrative to the tune<br />

of $US22.5 million – nearly double the<br />

estimated value of Patrick Reed, who won<br />

the Masters in 2018.<br />

Another example of the fraught<br />

relationship between watchmakers and<br />

celebrities is that of Raymond Weil.<br />

In 2005, the brand struck a multimillion<br />

dollar deal with actress<br />

Charlize Theron to make her the<br />

international ambassador for the<br />

company, and the star of an expensive<br />

advertising campaign.<br />

Despite her contract stipulating<br />

exclusivity, Theron later caused a stir<br />

when she appeared in the catalogue of<br />

a leading US watch retailer sporting a<br />

diamond-encrusted timepiece by Dior –<br />

for whom she is a perfume ambassador.<br />

Celebrity endorsement could<br />

positively impact attitudes<br />

toward the endorsed product<br />

if there was a clear ‘match’<br />

between the celebrity and the<br />

product. Actors performed best<br />

as endorsers, followed<br />

by athletes, TV hosts, models<br />

and musicians.<br />

Intriguingly, Theron is now one of three<br />

actors contracted to promote Breitling<br />

watches, alongside Brad Pitt and<br />

Adam Driver.<br />

Meanwhile, billionaire Virgin founder Sir<br />

Richard Branson became the face of the<br />

Bulova Accutron range in 2011. Bulova<br />

president Dennis Perry explained at the<br />

time: “As an entrepreneur, humanitarian<br />

and pioneer, Sir Richard reflects the spirit<br />

of innovation that is at the heart of the<br />

Bulova Accutron brand.”<br />

“We feel Sir Richard Branson could be<br />

an individual that would be central to our<br />

message of innovation,” Perry added,<br />

referring to the Accutron’s place in history<br />

as the world’s first fully electronic watch.<br />

Phil Edwards<br />

Duraflex Group Australia<br />

“Celebrity ambassadors play<br />

a pivotal role in building brand<br />

awareness and promoting<br />

new collections. It’s critical to<br />

ensure the profile and values<br />

of the celebrity are well<br />

aligned to the brand in order<br />

for the partnership to be<br />

authentic and successful.”<br />

Janet Comenos<br />

Spotted<br />

“Luxury brands tend<br />

to be more dismissive<br />

of data than mass-market<br />

brands. The creative<br />

directors of these highend<br />

labels tend to use<br />

celebrities as creative<br />

‘muses’, even if every<br />

indication shows that the<br />

celebrity is a poor choice.”<br />

William Comcowich<br />

Glean.Info by CyberAlert<br />

“Celebrity endorsements<br />

and sponsored influencer<br />

content have similarities<br />

and may overlap at times,<br />

but the two strategies entail<br />

different advantages and<br />

disadvantages. It’s crucial to<br />

understand those differences<br />

to develop effective PR or<br />

social media marketing<br />

campaigns.”<br />

However, just three years later, Branson told<br />

the Wall Street Journal he wore a Pilot Watch<br />

from Swiss brand Torgoen that he’d chosen<br />

based on its appearance. More recently, he<br />

has been seen wearing Garmin and Vivofit<br />

smartwatches.<br />

Indeed, convincing an increasingly disbelieving<br />

public that there is credibility in celebrity<br />

ambassadorships is only likely to become more<br />

of a difficult task.<br />

When selecting a celebrity ambassador, Janet<br />

Comenos, CEO Spotted, has said, “Marketers<br />

need to use real data and isnights to drive<br />

these crucial decisions, not just their gut and<br />

personal judgment.”<br />

She added, “Luxury brands tend to be more<br />

dismissive of data than mass-market brands.<br />

The creative directors of these high-end labels<br />

tend to use celebrities as creative ‘muses’,<br />

even if every indication shows that the celebrity<br />

is a poor choice.”<br />

In search of authenticity<br />

The way many brands are looking to win the<br />

battle is by going beyond the realms of a<br />

conventional endorsement and instead touting<br />

the celebrity as having played a hand in the<br />

creation of the very products they advocate.<br />

One example from the watch category is<br />

that of international adventurer Bear Grylls<br />

and Luminox. Grylls helped to create the<br />

new Survivalist Series for the brand, adding<br />

practical features such as Morse code, a<br />

paracord strap, and a dive zone countdown<br />

to the designs.<br />

As a hard-wearing watch, Luminox had<br />

also previously released watches designed<br />

with Icelandic Sea and Air Rescue, and<br />

counterterrorism operative/deep-sea diver<br />

Scott Cassell.<br />

Phil Edwards, managing director Duraflex Group<br />

Australia (DGA), which distributes Luminox,<br />

explains, “Celebrity ambassadors play a pivotal<br />

role in building brand awareness and promoting<br />

new collections. It’s critical to ensure the profile<br />

and values of the celebrity are well aligned to the<br />

brand in order for the partnership to be authentic<br />

32 | <strong>September</strong> <strong>2020</strong>

MARKETING REVIEW | Brand Ambassadors<br />

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

and successful. Bear Grylls is the world’s<br />

most recognised face of survival and<br />

outdoor adventure, having spent his<br />

career in the wild, navigating some of<br />

the most extreme landscapes on earth<br />

and coming out of the most dangerous<br />

situations alive and unharmed.<br />

“Luminox watches are known for their<br />

ability to perform in extreme situations,<br />

making this the perfect partnership.”He<br />

adds, “There is no better watch to be<br />

on Bear Grylls’ wrist than a Luminox,<br />

especially a Luminox which Grylls<br />

helped design and develop.”<br />

Meanwhile, in the jewellery category, we<br />

have seen stars such as Angelina Jolie<br />

(Robert Procop), and supermodel sisters<br />

Bella Hadid (Chrome Hearts) and Gigi<br />

Hadid (Messika) work with established<br />

brands as ‘guest designers.’ All three<br />

collaborations had a distinct air of<br />

authenticity. Jolie – a noted philanthropist<br />

– and her daughter Zahara created a<br />

charity collection with Procop, who is a<br />

long-term friend and designed Jolie’s<br />

engagement ring.<br />

Bella Hadid is a close friend of the Stark<br />

family, who own the Chrome Hearts<br />

brand, while Gigi Hadid was introduced to<br />

Messika founder Valérie Messika at Paris<br />

Fashion Week and found their design<br />

philosophies and approach to wearing<br />

jewellery were very similar.<br />

Perhaps the most prominent example<br />

is Spanish A-lister Penélope Cruz and<br />

Atelier Swarovski. Both Cruz and Atelier<br />

Swarovski founder Nadja Swarovski<br />

expressed a passion for environmental<br />

protection, as well as fine jewellery.<br />

The result was Cruz designing a<br />

14-piece made-to-order collection<br />

from responsibly sourced metals and<br />

gemstones, as well as some synthetic<br />

gemstones and lab-grown diamonds.<br />

The range was later expanded and<br />

manufactured in commercial quantities.<br />

“Penélope asked us [to collaborate on<br />

the range] and that is such an honour,<br />

as usually we have to look for partners,<br />

but to be working with someone who<br />

believes in the cause is amazing,”<br />

Swarovski said in 2018.<br />

“Celebrity ambassadors have<br />

provided Linneys with a<br />

recognisable figure to showcase<br />

our latest designs. Showing<br />

how the pieces can be worn and<br />

enjoyed is the key. Having the<br />

celebrity endorsement gives an<br />

added level of credibility to<br />

the brand as well as assisting<br />

with achieving PR [goals]<br />

around the campaign.”<br />

– Justin Linney, Linneys<br />

She added, “It is much better to start with<br />

the film crowd as they are environmentally<br />

tuned-in, so it was a natural evolution<br />

when Penélope came along. [And] these<br />

are designed by someone who has been<br />

on the red carpet.”<br />

An interesting local example of authentic<br />

celebrity endorsement is that of WAbased<br />

Linneys. The family-owned retailer<br />

has chosen a number of West Australian<br />

celebrities to promote and model its<br />

collections over the years. These have<br />

included Ernie Dingo, Melissa George,<br />

and Tahnee Atkinson.<br />

Justin Linney, creative director Linneys,<br />

tells <strong>Jeweller</strong>, “Celebrity ambassadors<br />

have provided Linneys with a recognisable<br />

figure to showcase our latest designs.<br />

Showing how the pieces can be worn and<br />

enjoyed is the key. Having the celebrity<br />

endorsement gives an added level of<br />


Key Points<br />

• Improve brand<br />

awareness and<br />

brand value<br />

High-profile actors,<br />

athletes, presenters<br />

and musicians can<br />

increase brand<br />

awareness and<br />

value with potential<br />

customers<br />

• Conversion and<br />

sales growth<br />

Celebrity<br />

endorsements can<br />

improve sales, but<br />

this is moderated by<br />

many other factors<br />

• Value fit<br />

and loyalty<br />

Brands must<br />

weigh the risks<br />

that a star could<br />

embarrass them<br />

through private<br />

actions or breaching<br />

their endorsement<br />

contract<br />

• Data-driven<br />

strategy<br />

An endorser should<br />

be chosen based<br />

on research and<br />

insights, rather<br />

than gut feeling or<br />

personal appeal<br />

credibility to the brand as well as assisting with<br />

achieving PR [goals] around the campaign.<br />

“We focus on working with Australian<br />

ambassadors because that fits well with our<br />

brand and key messaging that we utilise in<br />

our marketing.”<br />

The retailer has recently shifted to productbased<br />

campaigns in order to keep the focus on<br />

its jewellery designs, however its most recent<br />

celebrity ambassador was model-turned-<br />

Survivor Australia contestant David Genat.<br />

Another Australian retailer utilising a celebrity<br />

strategy is Larsen <strong>Jeweller</strong>y. It has been the<br />

‘official ring partner’ of Channel 10’s The Bachelor<br />

franchise for several years. The Sydney-based<br />

brand created an unusual grey spinel ring for<br />

Matt Agnew in 2019, a garnet-and-rose-gold<br />

commitment ring for Nick ‘Honey Badger’<br />

Cummins in 2018, and a diamond-and-platinum<br />

design for Matthew ‘Matty J’ Johnson in 2017.<br />

Larsen <strong>Jeweller</strong>y also created the engagement<br />

ring for Johnson and the show’s winner, Laura<br />

Byrne, in 2019. The ring was promoted on both<br />

Johnson and Byrne’s Instagram accounts;<br />

together, the couple boast a combined following<br />

of more than 500,000.<br />

Indeed, social media has played an increasingly<br />

critical role in the nature of celebrity<br />

endorsement over the past decade.<br />

A new sphere of influence<br />

The celebrity ambassador approach to marketing<br />

consumer products has enjoyed a long and<br />

illustrious term without serious revision. But in<br />

response to the questions being asked about<br />

consumers’ fatigue with celebrity endorsements,<br />

the other phenomenon to have emerged in<br />

recent years is that of celebrities espousing<br />

product endorsements via social media.<br />

In 2011, US-based marketing platform<br />

firm Ad.ly – which called itself the ‘social<br />

matchmaker’ – had found a niche working with<br />

brands to connect them with the right celebrity<br />

ambassadors through digital media.<br />

<strong>September</strong> <strong>2020</strong> | 35

MARKETING REVIEW | Brand Ambassadors<br />

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

At the time, Ad.ly CEO Arnie Gullov-Singh<br />

said, “[We are] tapping the $50 billion<br />

spend on endorsements worldwide as<br />

well as the $35 billion spent in digital<br />

advertising. If people are the new<br />

publishers, then people are also the<br />

future of advertising, and celebrities are<br />

the new ‘prime time’.”<br />

Ad.ly’s ‘Consumer Influence Index’<br />

sought to determine which celebrities<br />

drove the most consumer traffic to<br />

advertisers’ websites in the US; in 2011,<br />

the top 10 featured Kim, Khloé and<br />

Kourtney Kardashian, TV personality<br />

Lauren Conrad, and rapper and<br />

presenter Snoop Dogg.<br />

Since then, the social media landscape<br />

has rapidly evolved – and many watch<br />

and jewellery brands have adapted their<br />

marketing tactics to take advantage of its<br />

influence over consumer purchasing.<br />

While employing a number of wellknown<br />

celebrities in its traditional<br />

marketing, including Elle Fanning, Lupita<br />

Nyong’o and Kendall Jenner, Tiffany &<br />

Co. has also created online-only social<br />

media campaigns with younger and more<br />

digitally-oriented stars, such as dancer<br />

Maddie Ziegler and actress Yara Shahidi.<br />

Notably, the brand also created a<br />

campaign with male luxury travel<br />

influencer Jack Morris, who posts under<br />

the Instagram handle @doyoutravel<br />

and has 2.7 million followers. Morris<br />

promoted the more affordable Tiffany<br />

& Co. items, usually around $US250.<br />

David Yurman – a US jewellery brand<br />

which once garnered headlines for its<br />

use of A-list celebrity models such as<br />

Kate Moss and Gisele Bündchen – began<br />

pursuing an influencer strategy several<br />

years ago. One of its most successful<br />

campaigns was with Blair Eadie, founder<br />

of fashion blog Atlantic Pacific and<br />

Instagram account @blaireadiebee, which<br />

has 1.6 million followers.<br />

Over several years, Eadie incorporated<br />

David Yurman pieces into her popular<br />

outfit posts and showed consumers how<br />

to style them, as well as interacting and<br />

answering product questions. Yurman<br />

was able to repurpose Eadie’s content for<br />

its social media channels.<br />

However, William Comcowich, founder<br />

and CEO of Glean.info By Cyberalert and<br />

a <strong>Jeweller</strong> contributor, explains, “It may<br />

be tempting to bundle celebrities like<br />

Kim Kardashian, Justin Bieber and Taylor<br />

Swift in the same category as lesserknown<br />

social media influencers. But<br />

the two groups are different, even if both<br />

have plenty of followers.<br />

“Celebrity endorsements and sponsored<br />

influencer content have similarities<br />

and may overlap at times, but the two<br />

strategies entail different advantages and<br />

disadvantages. It’s crucial to understand<br />

those differences to develop effective PR<br />

or social media marketing campaigns.”<br />

Comcowich says that while celebrities can<br />

deliver “substantial reach and boost brand<br />

awareness” as well as increasing ‘earned<br />

media’ – that is, generating unpaid media<br />

coverage – influencers offer more niche<br />

appeal, credibility, expertise, and higher<br />

engagement with consumers. Combined,<br />

these can generate higher click-through<br />

rates and increased sales.<br />

“Celebrity endorsements on social media<br />

are more akin to traditional television<br />

advertising than influencer marketing…<br />

Seeing the #ad or #sponsored hashtag,<br />

followers generally understand that they’re<br />

viewing a sponsored endorsement. They<br />

consider the celebrity as a conduit for the<br />

brand’s message,” he explains.<br />

“On the other hand, top-notch<br />

influencers who specialise in a niche<br />

answer questions from followers and<br />

communicate with them in a back-andforth<br />

exchange.”<br />

Additionally, influencers are often able<br />


Celebrities<br />

vs<br />

Influencers<br />



Celebrities have greater<br />

cross-media exposure<br />

and also generate more<br />

earned media coverage,<br />

increasing the reach<br />

of a campaign beyond<br />

the digital realm<br />



Influencers are seen as<br />

more trustworthy than<br />

celebrities, particularly<br />

if they are known<br />

for their knowledge<br />

of a specific product<br />

category such as<br />

make-up, fashion, or<br />

technology<br />



While many influencers<br />

have fewer overall<br />

followers than<br />

celebrities on social<br />

media, they may boast<br />

a higher engagement<br />

rate as they interact<br />

with followers and<br />

encourage them to<br />

purchase<br />

COST & VALUE<br />

It can be far less<br />

expensive to engage<br />

an influencer than a<br />

celebrity to endorse a<br />

brand, however their<br />

effectiveness depends<br />

on the consumer<br />

segment being targeted<br />

and the marketing goals<br />

to create original content which brands can<br />

then re-share, and are often less expensive to<br />

hire than celebrities. An example of a hybrid<br />

approach to celebrity endorsement is Thomas<br />

Sabo’s signing of British pop star Rita Ora as<br />

its global ‘face’ in 2019. Ora – who is also a<br />

presenter, actress, and model – boasts 16.1<br />

million followers on Instagram alone.<br />

Not only does Ora appear on in-store signage<br />

and other materials across international<br />

markets, but also promotes the brand online<br />

using a designated hashtag.<br />

Thomas Sabo is also distributed by DGA,<br />

with Edwards explaining, “Rita Ora’s selfconfident<br />

appearance, her authenticity and<br />

passion for realising her own dreams make<br />

her a trendsetter in a global community –<br />

characteristics that perfectly underline the<br />

vision of Thomas Sabo jewellery.<br />

“By working with Rita Ora, Thomas Sabo<br />

wanted to address target groups of all ages<br />

and underline the international orientation<br />

of the brand. The campaign with Rita Ora<br />

focuses on jewellery as a powerful companion<br />

and expression of one’s own personality.”<br />

Thomas Sabo also uses other social media<br />

influencers, who create local content for<br />

different markets.<br />

Perhaps that is the biggest lesson brands<br />

can take from the evolution of the brand<br />

ambassador model. Simply luring the<br />

highest-profile star you can find to provide an<br />

endorsement for your product is no longer<br />

enough to strengthen your brand.<br />

There is a clear indication that well thought out<br />

celebrity-brand matchmaking requires both<br />

local and global power, and the ability of the<br />

star to create trust and connection with their<br />

audience – particularly through social media.<br />

Without a natural association between<br />

ambassador and product, consumers are<br />

more likely to be left confused and cynical<br />

rather than star-struck and invigorated with<br />

positive purchase intent. Simply put: if the face<br />

doesn’t fit, consumers won’t wear it.<br />

36 | <strong>September</strong> <strong>2020</strong>

With the recent announcements of<br />

government restrictions starting to be<br />

rolled back, jewellers now have the<br />

opportunity to get customers back<br />

into the store.<br />

Effectively communicate the<br />

changes that have taken<br />

place without spending<br />

all their time on the phone.<br />

Do you do custom rings?<br />

Yes we do! Pretty much<br />

everything is customisable,<br />

from setting to stone to cut.<br />

What are you looking for?<br />

Get the free<br />

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We’re wanting to create a<br />

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Wonderful, congratulations!<br />

Come on in and we can go<br />

through all the options.<br />


MARKETING REVIEW | Brand Ambassadors<br />


Shining Endorsement<br />


Serena Williams<br />

Audemars Piguet campaign, <strong>2020</strong><br />

Hugo Marchand<br />

Louis Vuitton campaign, <strong>2020</strong><br />

Carla Bruni<br />

Bulgari campaign, 2013<br />

Rachel Weisz<br />

Bulgari campaign, 2012<br />

Mila Kunis<br />

Gemfields campaign, 2013<br />

Shu Qi<br />

Bulgari campaign, 2017<br />

Naomi Scott, Zendaya, and Lily Aldridge<br />

Bulgari campaign, <strong>2020</strong><br />

Annabelle Wallis<br />

Cartier x Vogue Russia, <strong>2020</strong><br />

Rita Ora<br />

Thomas Sabo campaign, <strong>2020</strong><br />

38 | <strong>September</strong> <strong>2020</strong>

Kristen Stewart<br />

Chanel campaign, <strong>2020</strong><br />

Kai (Exo)<br />

Gucci x Elle, <strong>2020</strong><br />

Keira Knightley<br />

Chanel campaign, 2016<br />

Emilia Clarke<br />

Dior campaign, 2015<br />

Zendaya<br />

Bulgari campaign, <strong>2020</strong><br />

Harry Styles<br />

Gucci campaign, 2019<br />

Zoë Kravtiz<br />

Tiffany & Co. campaign, 2017<br />

Zhong Chu Xi<br />

Louis Vuitton x Vogue China, 2019<br />

<strong>September</strong> <strong>2020</strong> | 39

MARKETING REVIEW | Brand Ambassadors<br />


Cara Delevingne<br />

Dior campaign, <strong>2020</strong><br />

Bella Hadid<br />

Chrome Hearts campaign, 2018<br />

Halima Aden<br />

Pandora campaign, <strong>2020</strong><br />

Florence Welch<br />

Gucci campaign, 2019<br />

Miranda Kerr<br />

Swarovski campaign, 2016<br />

Zhang Ziyi<br />

Chopard campaign, 2019<br />

40 | <strong>September</strong> <strong>2020</strong><br />

Julianne Moore<br />

Bulgari campaign, 2015<br />

Jessica Alba<br />

Piaget campaign, 2011

Gigi Hadid<br />

Messika campaign, 2018<br />

Li Bing Bing<br />

Gucci campaign, 2012<br />

Penélope Cruz<br />

Swarovski Atelier campaign, 2019<br />

Lily Aldridge<br />

Bulgari campaign, <strong>2020</strong><br />

Georgia May Jagger<br />

Pandora campaign, 2019<br />

Rihanna<br />

Chopard campaign, 2017<br />

Song Hye Kyo<br />

Chaumet campaign, <strong>2020</strong><br />

Alicia Vikander<br />

Louis Vuitton campaign, 2019<br />

<strong>September</strong> <strong>2020</strong> | 41

MARKETING REVIEW | Brand Ambassadors<br />


Aishwarya Rai Bachchan<br />

Longines campaign, <strong>2020</strong><br />

Nicholas Holt<br />

Jaeger LeCoultre campaign, 2019<br />

Brad Pitt, Adam Driver, and Charlize Theron<br />

Breitling campaign, 2018<br />

Gwyneth Paltrow<br />

Fréderique Constant campaign, 2018<br />

Bear Grylls<br />

Luminox campaign, <strong>2020</strong><br />

Ryan Reynolds<br />

Piaget campaign, 2018<br />

42 | <strong>September</strong> <strong>2020</strong><br />

Hugh Jackman<br />

Montblanc campaign, 2019<br />

Kaia Gerber & Cindy Crawford<br />

Omega campaign, 2018

Rod Laver<br />

Rolex Ambassador<br />

Amanda Seyfried<br />

Jaeger LeCoultre campaign, 2019<br />

Kate Winslet & Simon Baker<br />

Longines campaign, 2019<br />

Jake Gyllenhaal<br />

Cartier campaign, 2018<br />

Sonam Kapoor Ahuja<br />

IWC Schaffhausen Ambassador<br />

Lady Gaga<br />

Tudor campaign, 2017<br />

David Beckham<br />

Tudor campaign, 2018<br />

Michelle Yeoh<br />

Richard Mille Ambassador<br />

<strong>September</strong> <strong>2020</strong> | 43

MARKETING REVIEW | Brand Ambassadors<br />


Bradley Cooper<br />

IWC Schaffhausen campaign, 2018<br />

Margot Robbie<br />

Richard Mille campaign, 2018<br />

Chris Hemsworth<br />

TAG Heuer, 2019<br />

Michael Bublé<br />

Rolex Ambassador<br />

Cara Delevingne<br />

Tag Heuer campaign, 2019<br />

Jessica Chastain<br />

Piaget campaign, 2017<br />

Tiger Woods<br />

Rolex Ambassador<br />

George Clooney<br />

Omega campaign, 2017<br />

44 | <strong>September</strong> <strong>2020</strong>

Eddie Redmayne<br />

Omega campaign, 2017<br />

Hailey Bieber<br />

Tommy Hilfiger campaign, 2018<br />

Nicole Kidman<br />

Omega campaign, 2015<br />

Daniel Craig<br />

Omega campaign, 2012<br />

Jennifer Lopez<br />

Guess campaign, 2018<br />

Pierce Brosnan<br />

Speake-Marin campaign, 2015<br />

Tom Brady<br />

IWC Schaffhausen campaign, 2019<br />

Jay Chou<br />

Tudor campaign, 2018<br />

<strong>September</strong> <strong>2020</strong> | 45

Together<br />

We’re in this together. Worth and Douglas are<br />

here to help, providing the quality, speed, and<br />

service you’ve come to expect from us for over<br />

60 years.<br />

Your account manager will be reaching out to<br />

discuss ways we can support you during these<br />

unusual times.<br />


(03) 9338 0091 / 1800 006 388<br />

sales@worthdouglas.com.au<br />



Retail Feature<br />

How to survive the “Battle of the bots”<br />

Online mega-retailers have integrated technology that attacks and blocks competitors. Every independent<br />

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

It’s hard to escape the news about digital<br />

transformation and how it impacts on<br />

traditional retail. In the US, there are daily<br />

reports of store closures and half-empty<br />

shopping malls grasping for tenants.<br />

Amazon remains the undisputed market<br />

leader among e-commerce retailers hellbent<br />

on using price to seize market share<br />

from traditional retailers.<br />

However, what is less apparent to<br />

consumers are the technologies that<br />

online retailers like Amazon employ<br />

that make it nearly impossible for other<br />

retailers to complete.<br />

The emergence of artificial intelligence (AI)<br />

technologies has turned what was once a<br />

battle of price into a ‘battle of the bots’, and<br />

small retailers are trying to compete in this<br />

technology war with the digital equivalent<br />

of a pocketknife.<br />

All of this begs the question, “Is Amazon<br />

invincible?”<br />

Greater than the sum<br />

Amazon is an incredible innovator. The<br />

shopping giant has the best e-commerce<br />

platform the world has ever seen and it<br />

has built this by focusing on infrastructure<br />

and the long-term.<br />

This culture of innovation is increasing<br />

revenue at such a pace that the company<br />

is now in $2 trillion-dollar territory and<br />

has been referred to as “the world’s most<br />

valuable brand”.<br />

What is it that gives Amazon such an<br />

incredible advantage?<br />

Amazon’s whole is greater than the sum<br />

of its parts.<br />

Consumers know the brand for its values<br />

of convenience, same-day or overnight<br />

delivery through Amazon Prime, and<br />

gold-standard service – but they don’t see<br />

what’s going on behind the scenes.<br />

Amazon’s individual components are<br />

well-known and widely discussed,<br />

particularly the use of robotics in the<br />

company’s distribution centres. As a result,<br />

these components can be replicated by<br />

competitors.<br />

But copying Amazon’s entire ecosystem,<br />

including all physical and digital strategies,<br />

is a task so large that that it creates<br />

a huge barrier of entry for retailers<br />

Amazon’s<br />

mastery of<br />

the complex,<br />

behindthe-scenes<br />

technologies<br />

that power<br />

modern<br />

e-commerce<br />

is vitally<br />

important to<br />

its success<br />

without Amazon’s spending power and<br />

logistical depth.<br />

Below are some examples that collectively<br />

represent formidable barriers for<br />

traditional retailers, especially those<br />

with a bricks-and-mortar heritage.<br />

Bringing in the bots<br />

As the name implies, ‘bots’ involves the<br />

use of technology to perform automated<br />

functions at incredible speed and accuracy.<br />

This is robotics, but it’s not always physical<br />

or mechanical. A web-crawler is a type<br />

of bot that scans the prices of individual<br />

items online.<br />

Web-crawlers can process thousands of<br />

SKUs to help a retailer like Amazon ensure<br />

its pricing remains best-in-show. Online<br />

pricing is extremely competitive and the<br />

difference of 50 cents over a million units<br />

can make or break profitability.<br />

According to an article in Fortune titled,<br />

“How Bots Are Fighting E-Commerce<br />

Wars,” Walmart was using bots to check<br />

Amazon prices several million times a day<br />

until Amazon found a way to block the<br />

<strong>September</strong> <strong>2020</strong> | 47

Best of Business | RETAIL FEATURE<br />

technology, shutting Walmart out for<br />

months.<br />

Like something out of a sci-fi movie, this is<br />

a battle fought between retail Goliaths in<br />

cyberspace and the importance cannot be<br />

overstated for traditional retailers.<br />

Amazon’s mastery of the complex, behindthe-scenes<br />

technologies that power<br />

modern e-commerce is vitally important<br />

to its success.<br />

exterity with bots allows Amazon to not<br />

only see what rivals are doing but also<br />

keep those rivals in the dark when Amazon<br />

undercuts them on price or quietly goes on<br />

to charge more.<br />

Pricing bots are just one example of the<br />

integrated ecosystem of technology and<br />

systems that Amazon and Walmart have in<br />

their omnichannel arsenal.<br />

Smaller retailers simply do not have<br />

the resources to recreate this strategic<br />

infrastructure.<br />

Applying AI effectively<br />

If a retailer does not know the acronym<br />

IFTTT then they are falling behind in digital<br />

retailing. IFTTT stands for “If this then that”<br />

and it is AI applied at the simplest level to<br />

automate choices and actions.<br />

IFTTTs can create algorithms that enable<br />

consumers to make a purchase based<br />

on a predefined set of criteria, like price<br />

point, quantity left in stock, or even the<br />

weather conditions.<br />

Amazon deploys a host of IFTTTs online<br />

and engages customers through its<br />

dashboard buttons.<br />

Of course, Amazon is not the only retailer<br />

deploying IFTTTs in retail and supply-chain<br />

automation. Supermarkets such as the<br />

UK’s Tesco began adopting the technology<br />

as far back as 2013.<br />

Tom Furphy, CEO Consumer Equity<br />

Partners, explained the technology to retail<br />

news site Morning News Beat at the time:,<br />

saying, “Their applets can automatically<br />

order products if they meet a certain price,<br />

they can add burgers to a shopping basket<br />

based on the weather or they can set a<br />

reminder to add certain items to a basket<br />

at a certain time.<br />

“They are also using IFTTT to<br />

allow customers to use Google<br />

Home to add items to their<br />

basket,” he added.<br />

Traditional retailers might scoff<br />

and say that their consumers<br />

don’t need or want IFTTTs, but<br />

consumers expect all retailers<br />

to match the convenience and<br />

services levels provided by<br />

Amazon or a Tesco in today’s<br />

omnichannel world.<br />

IFTTTs create convenience and<br />

place even more pressure on<br />

competitive pricing driven by real-time<br />

criteria, which is controlled by empowered<br />

customers.<br />

E-tailer fulfilment<br />

Amazon’s genius is using its own Amazon<br />

Marketplace to recruit retailers and brands<br />

to sell products through its ecosystem.<br />

As part of Amazon’s ‘turn key’ solution,<br />

the Marketplace products are “Fulfilled by<br />

Amazon” (FBA).<br />

Amazon’s own fulfilment costs for its<br />

membership program Prime run into the<br />

billions. By incorporating its Marketplace<br />

sellers into FBA, Amazon gains logistical<br />

volume, efficiencies and resources to<br />

continue to build state-of-the-art systems.<br />

Amazon is taking FBA to new levels by<br />

picking up products at manufacturing<br />

locations and delivering them directly to the<br />

consumer’s home.<br />

This process cuts out the role of<br />

distributors and most of the traditional<br />

supply chain.<br />

World domination or bust<br />

There are many more components<br />

of Amazon’s ecosystem but the ones<br />

mentioned here already create a huge<br />

strategic advantage that leaves even US<br />

retail behemoth Walmart struggling<br />

to compete.<br />

There are only a handful of retailers<br />

with deep-enough pockets to be able to invest<br />

billions in this kind of infrastructure, again<br />

giving Amazon a huge competitive advantage.<br />

At the same time, there is little profit to<br />

be made in e-commerce today without<br />

efficiencies and massive scale.<br />


AMAZON<br />

Don’t<br />

compete<br />

on price<br />

Online megaretailers<br />

have<br />

the advantage<br />

of always<br />

offering lower<br />

prices<br />

Apply AI like<br />

an e-tailer<br />

Integrate ‘if<br />

this, then that’<br />

algorithms into<br />

your online<br />

store to help<br />

customers shop<br />

more efficiently<br />

Build<br />

customer<br />

loyalty<br />

Rather than<br />

focusing on<br />

widening<br />

your base,<br />

create deeper<br />

and more<br />

meaningful<br />

customer<br />

relationships<br />

and invest in<br />

great service<br />

Anticipate<br />

change<br />

Think about<br />

how consumer<br />

behaviour and<br />

technology will<br />

evolve over<br />

time and begin<br />

adapting your<br />

business now<br />

Amazon didn’t turn a profit for years and the<br />

cost of replicating the many components of<br />

its ecosystem is virtually insurmountable for<br />

retailers.<br />

In addressing the question of whether<br />

Amazon can become the world’s most<br />

dominant retailer, many are betting on<br />

when, rather than if.<br />

What now?<br />

Forget trying to be Amazon. The first thing<br />

smaller traditional retailers need to do<br />

is shed the historical baggage of selling<br />

products at a price.<br />

The future lies in creating engagement and<br />

relationships with customers. To do that,<br />

retailers must leverage the<br />

one thing Amazon does not have yet, outside<br />

the US: stores with talented<br />

front-line sales staff.<br />

Even within the US, Amazon’s bricksand-mortar<br />

stores are not widespread or<br />

particularly well-known, and have been<br />

criticised for their initial smartphone-only<br />

payment system.<br />

Traditional retailers already have close<br />

relationships with customers and beautiful<br />

local stores with helpful and welcoming<br />

staff; they just need strategies to leverage<br />

those elements for maximum profit.The<br />

mantra of Amazon CEO Jeff Bezos is,<br />

“Tomorrow is day one,” but he is always<br />

focused several years ahead.<br />

Driverless cars and delivery are likely to be a<br />

reality by around 2024, so think about what<br />

this will mean for consumers. Will they still<br />

go to stores?<br />

Chances are most retailers haven’t even<br />

thought about what driverless means to<br />

store design and parking, for example,<br />

but one can bet with certainty that Amazon<br />

is already planning a holistic ecosystem to<br />

leverage it.<br />

It is the job of retailers to think ahead, keep<br />

informed and do what they can to keep up.<br />

CHRIS PETERSEN is founder and CEO<br />

of retail consultancy Integrated Marketing<br />

Solutions (IMS). Visit: imsresultscount.com<br />

48 | <strong>September</strong> <strong>2020</strong>

# 1<br />

in Australia<br />

#3<br />

in the World<br />

<strong>Jeweller</strong> has always been recognised as the #1 trade<br />

magazine in Australia.<br />

Alexa.com, the global ranking system for analysing<br />

website readership, ranks jewellermagazine.com well<br />

above its industry competitors.<br />

Better still, Feedspot, the independent content reading<br />

service, ranks <strong>Jeweller</strong> #3 in the world. Of all B2B<br />

jewellery publications, we rank just behind the US’s<br />

National Jeweler and the UK’s Professional <strong>Jeweller</strong> in<br />

Feedspot’s “Top 10 Jewelry Magazines & Publications<br />

To Follow in <strong>2020</strong>”.<br />

It’s <strong>Jeweller</strong>’s commitment to excellence in reporting,<br />

high-quality presentation and readership that sets us<br />

apart. For these reasons during the economic crisis and<br />

global pandemic <strong>Jeweller</strong> has decided to go fortnightly –<br />

rather than monthly in these challenging times.<br />

We aren’t hibernating we’re ‘hypernating’ to help<br />

retailers and suppliers not only survive but thrive!<br />



Selling<br />

Sales tips you can apply to everyday life<br />

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

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

Humans are social animals who need<br />

to engage with others in some way in<br />

order to be able to live effectively and<br />

have a meaningful existence.<br />

Whether you’re a salesperson or<br />

not, there are times in your daily life<br />

when knowing how to sell can turn an<br />

awkward situation into a positive one.<br />

The fear of rejection<br />

Consider the new school year as an<br />

example. There are often many new<br />

faces and new people to meet across<br />

the year. Whether you want to or not,<br />

you will find yourself in new situations.<br />

These could include setting up play<br />

dates for your children, welcoming<br />

new neighbours into your community,<br />

forming a parent group, meeting your<br />

child’s teachers and so on.<br />

For some, social scenarios like these<br />

are second nature but not everyone finds<br />

these types of tasks easy to do.<br />

Some parents might even consider it<br />

daunting. What if you try to arrange a<br />

play date between two children and the<br />

other parent says no?<br />

People don’t like to be rejected, which is<br />

why it can be intimidating to break into<br />

a new tribe.<br />

But as it turns out, igniting new social<br />

relationships is just like setting up new<br />

client relationships at work.<br />

Both raise various questions and fear in<br />

our minds, such as:<br />

• How do I get accepted?<br />

• How do I make a good impression?<br />

• How do I get along with these people?<br />

People don’t<br />

like to be<br />

rejected, which<br />

is why it can be<br />

intimidating to<br />

break into a<br />

new tribe<br />

• How do I build a trusting relationship<br />

with them, going forward?<br />

All of these questions require us to<br />

know how to plan, prospect, enquire,<br />

understand others and find ways to<br />

engage in meaningful exchanges for the<br />

purpose of making a strong connection.<br />

That is also what is required in the<br />

business world and more specifically<br />

in retail sales.<br />

Strangers to friends<br />

Let me share a specific example to<br />

illustrate my point.<br />

Recently I was harvesting our annual crop<br />

of plums. It has been a good season and<br />

we harvested around 30kg.<br />

What we normally like to do is make a<br />

pflaumenmus, which is plum butter, and<br />

50 | <strong>September</strong> <strong>2020</strong>

we also preserve the plums; however,<br />

given previous harvests, we had more<br />

than enough already.<br />

We didn’t need to cook anything this year<br />

but we also didn’t want to have these<br />

delicious plums go to waste.<br />

I devised a plan – I would take some<br />

excess plums door-to-door and offer<br />

them to my neighbours for free, some<br />

of whom I know well and others whom<br />

I do not know.<br />

Have you ever tried to go door-to-door<br />

selling something?<br />

It’s not easy, even if the product you have<br />

won’t cost the other person anything!<br />

People can be wary because they are<br />

caught off guard; they’re wondering who<br />

you are and what you want.<br />

To address this and before I left for my<br />

plum distribution drive, I developed<br />

my VBR – valid business reason – for<br />

calling on them.<br />

It went something like this: to people<br />

I didn’t know, I said, “Hi, I’m your<br />

neighbour from up the street. We have an<br />

abundance of fresh plums we cannot use<br />

and I was wondering if you would like to<br />

have some?”<br />

Immediately everyone knew why I was<br />

there and what I was offering.<br />

When they said yes to the offer, I<br />

instructed them to get a large bowl so<br />

I could give them plenty of plums.<br />

To people I did know, I said the same thing<br />

but with one crucial difference: I used<br />

their names.<br />

“Hi [person’s name], we have an<br />

abundance of fresh plums we cannot use<br />

and I was wondering if you would like to<br />

have some?”<br />

I managed to visit 12 houses, which<br />

took me three hours because, besides<br />

distributing my plums, I got to have<br />

some wonderful conversations with<br />

my neighbours.<br />

Clear<br />

planning<br />

Consider how<br />

others will<br />

perceive you<br />

and define<br />

how you will<br />

address that<br />

Positive<br />

intentions<br />

Focus on what<br />

you can provide<br />

and making<br />

a meaningful<br />

connection<br />

Open and<br />

friendly<br />

Be confident<br />

and allow<br />

others the<br />

space to say<br />

yes or no<br />

I even got some home-grown corn and<br />

chillies in return and it was a lovely way to<br />

spend a Saturday afternoon.<br />

There were real skills involved here<br />

– knowing how to introduce yourself;<br />

helping people to quickly understand why<br />

you are there; giving neighbours a choice<br />

to say yes or no; being open, friendly and<br />

welcoming.<br />

All of these were integral to the success<br />

of the venture – as they are when it comes<br />

to dealing with customers.<br />

However, having a clear plan and the right<br />

intentions made the biggest difference to<br />

my success in this situation, helping me<br />

to build new and better relationships in<br />

my community.<br />

SUE BARRETT is founder and CEO of<br />

innovative and forward-thinking sales<br />

advisory and education firm Barrett<br />

and online sales education platform<br />

salesessentials.com. Visit: barrett.com.au


Management<br />

Thinking big? Your small business doesn’t need to<br />

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

after all? KARYN GREENSTREET explains why thinking big is no guarantee of success.<br />

It’s written in nearly every business book<br />

and spoken from the lips of nearly every<br />

business guru: achieving growth is the<br />

pathway to retail happiness.<br />

More products, more services, more<br />

stores, and more revenue.<br />

Bigger is better – right? In fact, the<br />

endless push to grow businesses to the<br />

next level – whatever that means – may<br />

not be the right thing for many of us.<br />

There’s no shame in declaring that you<br />

want to keep your business small.<br />

This article isn’t about people who<br />

remain small because they’re scared<br />

to take risks or because they don’t<br />

have the skills or the financing to<br />

grow larger.<br />

This article is about people who choose<br />

to keep their businesses small because<br />

it’s what they really want.<br />

Debunking business myths<br />

There’s an unspoken taboo in declaring<br />

an intention to keep a business small. In<br />

his book, The E-Myth Revisited, Michael<br />

Gerber says that those who elect to stay<br />

small and work in their businesses have<br />

a job, not a business.<br />

This logic seems incorrect. There<br />

doesn’t appear to be anything wrong<br />

with wanting to stay small and do the<br />

everyday work yourself.<br />

Gerber’s principle is that a business<br />

should be created to get more out of<br />

life, and most self-employed people<br />

start their own businesses because they<br />

love what they do.<br />

Certainly the work business owners do<br />

should allow them to have the lifestyle<br />

they want – but people don’t always<br />

start businesses to make incredible<br />

amounts of money.<br />

If that were the case, why not get a<br />

corporate executive job? It would be far<br />

less risky!<br />

People start<br />

businesses<br />

to provide<br />

the services<br />

and products<br />

they love and<br />

to work in a<br />

way that gives<br />

them personal<br />

fulfilment<br />

as well as<br />

a creative<br />

challenge<br />

No, people start businesses to provide<br />

the services and products they love<br />

and to work in a way that gives them<br />

personal fulfilment as well as a<br />

creative challenge.<br />

Of course, there’s also the freedom that<br />

self-employment provides.<br />

The joy of small<br />

There is a new way of looking at small<br />

business that challenges the notion that<br />

all growth is desirable.<br />

In his book, Small Giants: Companies<br />

That Choose to be Great Instead of<br />

Big, Bo Burlingham discusses small<br />

business owners who had a choice to<br />

increase their business to majestic<br />

proportions – yet chose instead to<br />

perfect what they had, rather than<br />

sell out to the ‘growth’ ideal.<br />

Those who elect to stay small and<br />

create a great business are generally<br />

more interested in the qualitative<br />

52 | <strong>September</strong> <strong>2020</strong>

SMALL<br />


Freedom<br />

and flexibility<br />

in decisionmaking<br />

Retaining<br />

a hands-on<br />

approach<br />

to everyday<br />

operations<br />

Focus on<br />

perfecting the<br />

offering, rather<br />

than meeting<br />

growth targets<br />

Remaining<br />

closely<br />

connected to<br />

customers and<br />

employees<br />

aspects of their work than in sales. They want to be<br />

great at what they do and offer the best service and<br />

products possible.<br />

In my opinion, the only way to do this is to remain<br />

small. The boutique-business model allows owners<br />

to connect intimately with their customers, to listen<br />

to their needs and create solutions quickly.<br />

This model gives owners a level of independence<br />

and joy that they might never find in larger<br />

businesses.<br />

American author and entrepreneur Seth Godin<br />

believes small businesses provide untold flexibility.<br />

“Small is the new big because small gives you the<br />

flexibility to change the business model,” he says.<br />

“Small means you can tell the truth on your blog.<br />

Small means that you will outsource the boring,<br />

low-impact stuff like manufacturing and shipping<br />

and billing and packing to others while<br />

you keep the power because you invent the<br />

remarkable.”<br />

Learning to love business<br />

A business starts as a means to an end. Perhaps<br />

the aim is to achieve a certain lifestyle or pay the<br />

school fees, but there’s no reason a business can’t<br />

also be enjoyable.<br />

Those who love gardening aren’t trying to find ways<br />

to delegate their gardening work to others. They’re<br />

focused on getting their fingers in the dirt and<br />

doing it themselves because the very<br />

act of working in the garden is enjoyable to them.<br />

Sometimes this means they need a smaller garden<br />

that they can more easily manage. They have fewer<br />

plants so they can give each one the attention it<br />

needs to truly flourish.<br />

In business too, many self-employed people don’t<br />

want to be ‘absentee owners’. They don’t want<br />

to lose touch with customers or the reasons<br />

they work. They don’t want to be corporate-style<br />

managers and would rather work with partners<br />

who love what they do too.<br />

Those who want to be the owner of a large number<br />

of jewellery stores with an army of employees<br />

should go for it. There’s nothing stopping them.<br />

But those who want to get their hands dirty every<br />

day should stay focused and build a business that’s<br />

small and great.<br />

KARYN GREENSTREET is president of Passion<br />

for Business, specialists in small business<br />

consulting. Visit: passionforbusiness.com


Marketing & PR<br />

Waging war: marketing vs sales<br />

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

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

Over the years I’ve heard much<br />

commentary about the roles of marketing<br />

and sales within business. Popular sales<br />

writer Geoffrey James has written that<br />

marketing should be subordinate to sales<br />

instead of a separate function.<br />

Obviously, marketing experts disagree.<br />

War is expensive; let’s see if we can put<br />

an end to this one.<br />

The role of marketing<br />

In many businesses, marketing’s role<br />

is to get the word out about the store,<br />

attracting new customers by creating<br />

front-of-mind awareness and a buzz for<br />

new offerings.<br />

A firm strategy is required to ensure<br />

businesses see returns on their<br />

marketing expenditure.<br />

However, often, businesses contribute<br />

their largest marketing investments –<br />

both in dollars and production capacity –<br />

towards their least profitable lines.<br />

This raises some important questions<br />

when assessing the marketing strategy:<br />

• Are the right customers being targeted?<br />

• Are businesses touting the right<br />

offerings?<br />

• If they are doing both the above, how is<br />

it that retailers end up with so many lowmargin<br />

customers and offerings?<br />

Market research is another role that falls<br />

under the purview of marketing. Product<br />

innovations and improvements are often<br />

supported by, if not initiated through,<br />

research conducted by the marketing<br />

department or officer.<br />

The question is: should this be<br />

marketing’s province exclusively?<br />

The role of sales<br />

The role of sales staff is, simplistically, to<br />

generate sales. Unfortunately, too many<br />

retailers operate from this very view,<br />

and, when asked, salespeople can rarely<br />

identify their ‘ideal’ customers, what<br />

those customers value and what that<br />

value is worth in monetary terms.<br />

To make matters worse, the current<br />

models for sales commission encourage<br />

staff to relentlessly pursue customers and<br />

to do anything they can to make the sale.<br />

When marketing<br />

and sales are<br />

both targeting<br />

the same highly<br />

profitable people<br />

and categories,<br />

a business will<br />

generate higher<br />

revenues more<br />

quickly and at<br />

premium prices<br />

This occurs whether the business’ marketing<br />

is targeting the right segments or not.<br />

How can retailers stop this madness? Here<br />

are some thoughts.<br />

The importance of cross-pollination<br />

In small businesses, like jewellery stores,<br />

staff often handle both marketing and<br />

sales – but it’s rare that someone analyses<br />

profitability by both customer and product<br />

line/service categories.<br />

A caveat here – storeowners often calculate<br />

profit in ways that make it easy for them<br />

to report financial results under external<br />

reporting requirements.<br />

Marketing and sales people should make<br />

sure they are comfortable that profit<br />

numbers reflect the economics of the<br />

various markets they serve.<br />

There are a few fundamentals to consider:<br />

• Why are some customers willing to pay<br />

more for an offering?<br />

• What do they see that other customers<br />

do not?<br />

54 | <strong>September</strong> <strong>2020</strong>



Both<br />

marketing and<br />

sales teams<br />

should focus on<br />

targeting highvalue<br />

customers<br />

Marketing<br />

staff must<br />

‘crunch the<br />

numbers’ and<br />

use insights<br />

from sales to<br />

identify bestperforming<br />

offerings and<br />

opportunities<br />

Data collected<br />

by sales staff<br />

can be used<br />

to inform and<br />

improve the<br />

marketing<br />

message<br />

• Are the marketing messages designed to<br />

attract more of these customers?<br />

• How can this information help salespeople<br />

focus their efforts toward this market?<br />

• How can staff make marketing messages and<br />

sales scripts more congruent to increase the<br />

likelihood of sales?<br />

• What opportunities are staff seeing in<br />

the market for innovation and/or product<br />

improvement?<br />

• Are these opportunities something for which<br />

buyers are willing to pay extra?<br />

• Which offerings are languishing? Should they<br />

be invigorated or abandoned?<br />

Leverage relationships<br />

Customers will always have stronger rapport<br />

with sales staff than with marketing staff, and<br />

sales staff have access to the shop floor to see<br />

first-hand how customers react to products.<br />

They also get the opportunity to have more<br />

candid exchanges with customers than backoffice<br />

staff. Therefore, their observations can be<br />

extremely valuable for improving the sales and<br />

marketing approach.<br />

Customers are more likely to offer feedback<br />

to salespeople they like and to let them know<br />

when a competitor is about to release a product<br />

of value.<br />

At the same time, salespeople are able to<br />

share trends that they see in their customers’<br />

shopping preferences.<br />

Salespeople should also be encouraged to<br />

share any language they’re using that helps close<br />

a sale or establish a relationship. Likewise, they<br />

should also be encouraged to share complaints<br />

they’ve received from customers.<br />

All of this information can help shape a retailer’s<br />

marketing messages so that they resonate with<br />

their most profitable customers.<br />

When marketing and sales are both targeting the<br />

same highly profitable people and categories,<br />

a business will generate higher revenues more<br />

quickly and at premium prices. Now, how’s that<br />

for a peace treaty?<br />

DALE FURTWENGLER is the founder of<br />

Furtwengler & Associates. Hs is a speaker,<br />

author and business consultant. Visit:<br />



Logged On<br />

"looks like kate middleton<br />

has recently worn a pair<br />

of medium gold hoops.<br />

tomorrow i’ll upload an<br />

‘inspired by kate’ blog<br />

post and link images to<br />

my best selling hoops. I<br />

should also send that out<br />

as an eNewsletter to my<br />

customers who frequently<br />

buy gold jewellery.”<br />

Low-cost ways to attract online customers<br />

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

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

Are you looking for ways to acquire new<br />

online customers without burning a hole<br />

in your pocket? No matter how great your<br />

product is, it just becomes pointless if<br />

there is no customer base.<br />

Yet businesses today don’t want users<br />

to visit their page only to buy something;<br />

similar to the in-store retail experience,<br />

they want to connect with customers in<br />

order to build a relationship that yields<br />

benefits in the future.<br />

Here are seven ways in which you can<br />

attract customers and promote your<br />

business without spending a fortune.<br />

1. Hijack trending topics<br />

For this process, you need to be quick<br />

as you can to inject your brand in real-time<br />

to get the coverage you want. You need to<br />

choose a trending topic related to<br />

your industry.<br />

Done correctly, you will be exposed to new<br />

audiences who will start following your page<br />

on social media – if they like what they see.<br />

In turn, they could become customers.<br />

For example, during the Cricket World<br />

Cup, country hashtags like #IndvsAus will<br />

trend on Twitter. In the past, popular soup<br />

and noodle brand Maggi tapped into the<br />

World Cup’s exposure with an image that<br />

suggested there are two things that India<br />

needs the most: the World Cup and Maggi.<br />

The brand then pushed the idea of<br />

consuming Maggi products while watching<br />

the game.<br />

2. To make a friend, be a friend<br />

Partnering with other brands will<br />

boost exposure to many eyeballs from<br />

neighbouring networks.<br />

You can collaborate by doing a guest<br />

blog, sharing boards on Pinterest, crosspromotions<br />

on social channels, or running<br />

a joint contest or campaign.<br />

It is important to choose the correct brand<br />

for the collaborative campaign. Ensure the<br />

other brand is relevant to your audience<br />

– that is, your current and potential<br />

customers – but is not a competitor.<br />

Their audience and customers should<br />

overlap with yours, and they should have<br />

a positive reputation and similar values.<br />

A great way to<br />

boost purchases<br />

is to create<br />

‘spot sales’ on<br />

social media<br />

and specify<br />

that prices will<br />

return to normal<br />

in a few hours<br />

3. Provide exlcusive discounts<br />

Who doesn’t love a good deal? We all do, so<br />

make sure you provide such exclusive offers<br />

to your potential customers that it becomes<br />

tough for them to deny.<br />

Whenever you put a time frame on<br />

something, it makes customers act faster<br />

as they don’t want to miss an opportunity<br />

to save money or snap up their favourite<br />

products.<br />

A great way to boost purchases is to create<br />

‘spot sales’ on social media and specify that<br />

prices will return to normal in a few hours.<br />

4. Leverage the power of users<br />

User-generated content is content created<br />

by users to show interaction with your<br />

brand. This makes potential customers<br />

crave for the same experience, leading them<br />

straight to your store.<br />

The social media pages of adventure<br />

camera business GoPro are filled<br />

with pictures and videos submitted by<br />

customers. This not only showcases the<br />

potential of the product but attaches values<br />

of fun and adventure to the brand itself.<br />

56 | <strong>September</strong> <strong>2020</strong>



1. Quality over<br />

quantity is key<br />

when it comes<br />

to content – but<br />

ensure you are<br />

posting regularly<br />

and at the<br />

optimum time<br />

2. Convert<br />

browsers into<br />

buyers by creating<br />

urgency through<br />

spot sales<br />

3. Foster brand<br />

loyalty by<br />

featuring usergenerated<br />

content<br />

– this will also<br />

save you time and<br />

money on creating<br />

your own content<br />

4. Go beyond<br />

your existing<br />

base using<br />

trending topics<br />

and hashtags, or<br />

partnering with<br />

other brands on a<br />

campaign<br />

5. The old rules<br />

still apply –<br />

customers expect<br />

the same great<br />

service online as<br />

they do offline<br />

5. Provide stellar customer service<br />

In both online and offline retail, the element<br />

that will truly give brownie points to your<br />

brand is the customer service you provide.<br />

Your duty doesn’t end once your product is<br />

sold; in fact, it starts when customers begin<br />

using the product.<br />

Customer service plays a massive role when<br />

it comes to shaping purchase decisions, so<br />

make use of various low- or no-cost digital<br />

tools that can help you monitor and respond<br />

quickly to requests.<br />

6. Highlight the perks<br />

Customers love it when they can gain<br />

additional perks along with products/<br />

services. Highlight any perks you provide on<br />

all social-media pages and websites, such<br />

as free shipping, your loyalty program, or<br />

a gift with purchase.<br />

This will boost awareness and possibly<br />

stimulate user-generated content online.<br />

7. Be original and creative<br />

There’s no sugarcoating for this one:<br />

retaining new customers is even harder<br />

than gaining them. For that, you need to<br />

keep producing original and creative content<br />

that keeps followers engaged and updated.<br />

To help keep the flow of content going,<br />

create a weekly content calendar and jot<br />

down any post ideas in there first.<br />

You don’t need to post 10 times a day; it’s<br />

better to post less frequently but be sure<br />

that each post is perfectly designed to create<br />

an impact.<br />

As you can see, you don’t have to spend<br />

thousands on marketing your business and<br />

attracting new customers. All you need to<br />

engage customers is the correct strategy<br />

that will work for your business.<br />

Incorporate these seven elements into<br />

your plan and soon your content will be<br />

flowing in the right direction. Once you feel<br />

like you have made a footing, you can keep<br />

experimenting, measuring and tweaking<br />

your strategy.<br />

F V J E W E L L E R Y<br />

A v i b r a n t c o l l i s i o n o f<br />

p r e c i o u s s t o n e s , p e a r l s ,<br />

& s t e r l i n g s i l v e r .<br />

Maariaa<br />

W W W . F A B U L E U X V O U S . C O M<br />

HARSH AJMERA is the founder of Digital<br />

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Access one one of of the the largest inventories of of Argyle Argyle Pink Pink Diamonds Diamonds in Australia in Australia<br />

All<br />

All<br />

SGA<br />

SGA<br />

Argyle<br />

Argyle<br />

pink<br />

pink<br />

diamonds<br />

diamonds<br />

are<br />

are<br />

cut<br />

cut<br />

&<br />

&<br />

polished<br />

polished<br />

by<br />

by<br />

Argyle<br />

Argyle<br />

with<br />

with<br />

Argyle<br />

Argyle<br />

Certificares<br />

Certificares<br />

& Lot<br />

&<br />

Numbers.<br />

Lot Numbers.<br />

Whether you are after a tender stone for investment, a few melee to complete<br />

Whether you are after a tender stone for investment, a few melee to complete<br />

a custom design or just a single pink diamond, we can make it happen.<br />

a custom design or just a single pink diamond, we can make it happen.<br />

Access one of the largest inventories of Argyle Pink Diamonds in Australia<br />

All SGA Argyle pink diamonds are cut & polished by Argyle with Argyle Certificares & Lot Numbers.<br />

Whether you are after a tender stone for investment, a few melee to complete<br />

a custom design or just a single pink diamond, we can make it happen.<br />



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

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

Access one of the largest inventories of Argyle Pink Diam<br />

All SGA Argyle pink diamonds are cut & polished by Argyle with Argyl<br />

Whether you are after a tender stone for investment, a few<br />

a custom design or just a single pink diamond, we can m<br />


Access one of the<br />

largest inventories of<br />

T: 02 9290 2199 F: 02 9262 1630 E: Pink@samsgroup.com.au<br />

Argyle Pink Diamonds<br />

in Australia<br />

All SGA Argyle Pink Diamonds are cut and polished by<br />

Argyle with Argyle Certificares and Lot Numbers.<br />

Whether you are after a tender stone for investment, a<br />

few melee to complete a custom design or just a single<br />

pink diamond, we can make it happen.

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