Jeweller - November 2020

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY NOVEMBER 2020
Saving Pandora
HOW A JEWELLERY JUGGERNAUT
SHRUGGED OFF THE PANDEMIC PANIC
Clocked and loaded
WHY PERFECTING E-COMMERCE IS KEY
TO IMPROVING WATCH SALES
Christmas tips
PREPARE TO MAKE YOUR HOLIDAY
SEASON SALES SPARKLE

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NOVEMBER MARCH 2020
Contents
This Month
Industry Facets
16 Upfront
34
10 YEARS AGO
Time Machine: November 2010
18 COVID-19 Update
36
MY STORE
By Charlotte
48 STRATEGY FEATURE
Clocked and loaded
GRAHAM HENRICKSON delivers a frank
assessment of retailers selling watches online.
22 News
38 Jewellers Showcase
41
64
66
LEARN ABOUT GEMS
Jade Part II: Nephrite
MY BENCH
David Hollanders
SOAPBOX
Richard Mayo
Features
42
SPECIAL REPORT
Pandora through the pandemic
42 SPECIAL REPORT
The Pandora paradox
Jeweller takes stock of how Pandora defied
the odds during the COVID-19 crisis.
48
STRATEGY FEATURE
Online watch sales: Running out of time
Better Your Business
54
56
58
60
62
RETAIL FEATURES
DOUG FLEENER reveals the different kinds of staff behaviour that shut down sales.
SELLING
Make sure these items are on your Christmas checklist, writes DAVID BROWN.
MANAGEMENT
DALE FURTWENGLER advises how to stay productive as a business owner.
MARKETING & PR
LISA MASIELLO explains the difference between customer loyalty and satisfaction.
LOGGED ON
Engagement is the key to social media sales, writes KARYN GREENSTREET.
41 LEARN ABOUT
Nephrite
FRONT COVER
Liza Borzaya’s Red Bumblebee
Earrings are crafted in 18-carat
yellow gold with white and
black diamonds, black pearls,
yellow sapphire, and enamel.
lizaborzaya.com
November 2020 | 11

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Upfront
#Instagram hashtags to follow
Alpha Order
#alternativejewelry
55,465+ POSTS
#nzjeweller
10,434+ POSTS
Stranger Things
#cabochon
HISTORIC GEMSTONE
The Black
Prince’s Ruby
4Now part of the British Crown
Jewels, the Black Prince’s Ruby
is the world’s largest known
uncut spinel. Weighing 170 carats,
the gemstone’s first recorded
owner was Abu Said, the Prince
of Granada, in the 14th Century.
It was later traded to the son of
King Edward III, a legendary knight known as the Black Prince, in
exchange for a military alliance. The spinel adorned King Henry
V’s helmet at the Battle of Agincourt and was later set in the
Imperial State Crown (above) for the coronation of Queen Victoria.
Read the full
Talkwalker x
HubSpot 2021
Social Media
Trends report,
including the
rest of the top 10
trends, here.
1.08 MILLION POSTS
#ceylonsapphire
61,876+ POSTS
#citrinering
19,772+ POSTS
#engravedrings
21,367 POSTS
#pendant
Digital Brainwave
6 MILLION POSTS
#princesscut
136,925+ POSTS
#saltandpepperdiamond
14,263+ POSTS
#watermelontourmaline
149,443+ POSTS
4Social media analytics platform Talkwalker
and marketing software firm HubSpot have
published a new report predicting the top
trends that will dominate social media in 2021.
Number-one was the rise of sociallyconscious
consumers who look to engage with
brands about issues and causes. Next was the
rise of digital disinformation, with businesses
advised to beef up online security and
communicate transparently with customers.
Rounding out the top three trends was the
continued dominance of current social media
apps, which the report predicts will integrate
more shopping features throughout the year.
Trendspotting
4Pearl earrings have emerged as
a growing trend, with several fashion
designers including Jason Wu (above)
accessorising their latest spring/
summer collections with the soft and
feminine jewellery.
Campaign Watch
4French fashion house Hèrmes has
unveiled its latest collection, Lignes
Sensibles, meaning ‘sensitive lines’.
Designed by Pierre Hardy, the collection
is crafted in rose gold and studded with
soft-hued cabochon gemstones (as in
the À l’écoute Necklace, above, which
features prehnite, sapphire, tourmaline,
and diamonds).
Jason Wu spring/summer 2021, Getty Images
Hèrmes À l’écoute Necklace
Weird, wacky and wonderful
jewellery news from around the world
Crystal healing
4Scientists from RMIT
University in Melbourne have
developed a ‘smart’ wound
dressing made from silk
and diamonds. The “gamechanger”
dressing can sense
temperature changes at the
wound site – an early sign
of infection – and don’t need
to be removed. The dressing
also showed “extremely high
antibacterial resistance” to
certain types of bacteria.
Law and disorder
4Two actors and a jewellery
store owner have reportedly
sued a US TV network over
a ‘traumatic’ armed robbery
scene filmed for a crime show.
According to TMZ, producers
did not have permits or police
permission to film the ‘guerillastyle’
robbery – complete with
masks, guns, and a getaway
van – and the store owner did not
realise the robbery was fake.
Novel approach
4A respected jewellery
industry journalist has written
a murder mystery novel set in
New York’s Diamond District.
Murder Is Forever, the debut
novel from JCK Online news
director Rob Bates, follows Mimi
Rosen – a young woman who
gets caught up in a conspiracy
after her cousin is seemingly
murdered over a $4 million
pink diamond.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
Published by Befindan Media Pty Ltd
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 64 930 790 434 | Phone: +61 3 9696 7200 | info@jewellermagazine.com
Publisher & Editor Angela Han angela.han@befindanmedia.com • Assistant Editor Arabella Roden arabella.roden@jewellermagazine.com
Advertising Toli Podolak toli.podolak@jewellermagazine.com • Digital Co-ordinator Trish Bucheli-Preece trish@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com
Copyright All material appearing in Jeweller is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd
strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information
believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed
to the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or
liabilities arising from the published material.

Proudly distributed by
(02) 9417 0177 | www.dgau.com.au

COVID-19 Update
23 November
Scheduled reopening of all
NSW borders, including
Victoria and New Zealand
$4 billion
announced to fund the Federal
Government’s JobMaker Hiring
Credit, which provides incentives
for businesses to hire new
employees aged 16–35
5.6%
September retail
turnover, compared
with September 2019
* Australian Bureau of Statistics, 4 November 2020
“This year retailers need to prepare for the
influx of online orders that may come their
way, earlier than usual. In November, there
is a continuum of big shopping events from
Click Frenzy on 10 November to Singles
Day, Black Friday and Cyber Monday.
The entire month has unofficially been
labelled ‘Black November.’”
JENNIFER WESTACOTT
CEO, BUSINESS COUNCIL
OF AUSTRALIA
“We need a highly-targeted,
careful and gradual reopening
of the national economy...
Getting all of Australia’s
domestic borders open again by
Christmas would be a $3 billion
gift to the nation.”
PAUL ZAHRA
CEO, AUSTRALIAN
RETAILERS ASSOCIATION
“The day after the Melbourne
Cup is when the Christmas
shopping season traditionally
gets underway, and there is
much to be optimistic about.
Victorian retailers are open for
business. Consumer confidence
is at an eight-month high.”
DR SHANE OLIVER
CHIEF ECONOMIST,
AMP CAPITAL
“Australia has performed far
better than many comparable
countries in controlling
coronavirus... This along with
a bit of luck should result in a
stronger, more assured recovery
in the Australian economy.”
49%
of Millennials and Gen Z
consumers surveyed planned
to buy fine jewellery during
the holiday season
* Platinum Guild International x 360 Market Reach survey
Retail sales were up 6.8% in
Q3 of 2020 – 4.4% above Q1,
which was pre-COVID
* Westpac Australia & New Zealand Weekly,
2 November 2020
43%
of Australian shoppers
plan to split their holiday
shopping between
bricks-and-mortar
stores and online
* Oracle Retail Survey/B&T Magazine
Western Australia
is the current ‘star
performer’ of the
retail sector
* Power Retail, 4 November 2020 ABC, 13 October 2020
*
GemFind
CIBJO
National Jeweler
Watch replays of
GemFind’s past
webinars for more
advice on creating
an effective
jewellery website
and using digital
marketing.
4Jewellery industry digital
marketing firm GemFind is
hosting a Christmas trading
webinar entitled ‘Most Effective
Digital Marketing Tactics for
the Holiday Season’ on 10
November.
Hosted by GemFind’s vicepresident
of sales and
marketing, Anthony Arechiga,
the session will focus on
strategies for standing out and
improving e-commerce sales
during the holiday period.
The webinar
is based on
findings from a
new PGI report
which explored
consumers’ post-
COVID sentiments
about jewellery.
4The next instalment
of the World Jewellery
Confederation’s Jewellery
Industry Voices webinar series
takes place on 19 November.
‘Jewellery as a Symbol for the
Meanings of Life: Story-telling
to Consumers in the New
Normal of 2021’ features
panellists from China, the
USA, France and India and is
sponsored by Platinum Guild
International (PGI).
From private
viewings to Zoom
rooms and more,
the webinar will
cover plenty
of ground for
connecting with
customers.
4For even more
Christmas sales advice,
US jewellery industry
publication National
Jeweler is hosting a
webinar on 17 November
focused on holiday events.
‘Holidays 2020: How to
Host the Right Event for
Your Business’ will see
jewellery consultants Kate
Peterson and Kathleen
Cutler discuss jewellers’
COVID-safe options.
18 | November 2020

Every holiday season is vital to your
business, and this year, success has
a new level of importance.
As you meet the demands of this
busy season, Stuller is ready to help
with our robust in-stock inventory.
Visit Stuller.com/Holiday.
Items featured, left to right: 87325 and 124536
Stuller.com
+1 337-262-7700

Created by members, for members
SHOWCASE
JEWELLERS
WE’RE HERE FOR YOU
Showcase Jewellers was established in 1981 by a group
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Today, Showcase Jewellers is a powerhouse of resources
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Our members have so many resources at their fingertips to
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• Extensive supplier
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including the latest
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Alongside these resources, you have the support of an
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News
Australian gemstone dealer
linked to al-Qaeda
Michael Hill reports strong results amid
COVID-19 pandemic
Gemstone dealer Ahmed Luqman Talib, director of Talib
& Sons, outside his Melbourne home during a police raid on
20 October. Image credit: Andrew Henshaw/Herald Sun.
The US government has designated an Australian
gemstone dealer as an ‘associated facilitator’ of terrorist
organisation al-Qaeda, with local police subsequently
raiding his home in the Melbourne suburb of Doncaster.
An official statement from the US Department of the
Treasury’s Office of Foreign Assets Control (OFAC)
declares that Ahmed Luqman Talib, 30, “has had financial
dealings in a number of countries and is involved in
dealing gemstones, which provide him with the ability to
move funds internationally for the benefit of al-Qaeda.
Talib’s gemstone business, Talib & Sons, is based in
Melbourne and was registered with the Australian
Securities & Investments Commission in May 2019.
In its latest quarterly trading update, Michael
Hill International (MHI) has recorded
improvements to same-store sales and
e-commerce in the first quarter of FY20-21,
despite rationalising its store network from
301 to 289.
Australia was the jewellery company’s bestperforming
market, with same-store sales
increasing 12.5 per cent compared with the
same period in 2019 despite the temporary
closure of 28 Melbourne stores due to the
Victorian lockdown.
It is also MHI’s largest market, with 154 of its
stores – approximately 53 per cent of the total
network – located there.
Canada and New Zealand also recorded
strong results, with same-store sales
increasing 5.9 per cent and 4.7 per cent
respectively.
Temporary store closures also impacted
the New Zealand results, with 16 Auckland
stores impacted by a three-week COVID-19
lockdown.
Daniel Bracken, CEO MHI, said, I am
particularly pleased with our first quarter
results... Although experiencing double-digit
foot traffic decline at a store level, we achieved
a significant lift in same-store sales.”
Revenue for the quarter totalled $119.3
million, a modest drop of 3.6 per cent when
compared with 2019. Australia recorded the
largest fall in total sales, of 5 per cent – versus
an increase of 5.7 per cent in Canada.
MHI’s e-commerce sales continued their
upward trend, increasing by 129 per cent when
compared with the same period in 2019; in
April, the company noted online sales had
increased 49.1 per cent.
Notably, the Brilliance loyalty program
has increased its membership by more
than 80 per cent since 30 June 2020 to
260,000 members.
Talib is director of the company, while his wife Jerry
Campbell is a minority member shareholder, the Herald
Sun reports.
The Talib & Sons website describes it as “a family
business specialised in the sourcing and purveying of
fine coloured gemstones” with “over four generations of
inherited ethics, skill and gemstone knowledge”. It claims
to have been “established in the coastal town of Beruwala
in the south-western region of Sri Lanka” and to have an
“extensive international procurement” network.
Following the US announcement, Victoria Police,
Australian Federal Police, and Australian Security
Intelligence Organisation (ASIO) officers executed a
search warrant of Talib’s home.
The Herald Sun reports that enquiries were also
made at several other addresses in Melbourne, NSW,
and Queensland.
Steven Mnuchin, US Secretary of the Treasury, said, “The
Treasury Department remains committed to disrupting
al-Qaeda’s financial activities and networks around
the world and appreciates the collaboration with our
Australian partners.”
As a result of the designation, Talib and his business are
prohibited from trading in the US or with any US citizens,
and any US-based assets will be frozen. At the time of
publication, no charges had been laid.
Jeweller contacted Ahmed Luqman Talib for comment,
but did not receive a response.
Defendant in Melbourne Gold Company robbery
faces court, awaits sentencing
Melbourne man Karl Kachami is now awaiting
sentencing over his role in the $3.9 million heist,
which took place on 27 April.
Karl Kachami, one of two defendants in the
$3.9 million robbery of gold dealer Melbourne
Gold Company (MGC), was remanded in
custody on Thursday 29 October after pleading
guilty to a range of charges.
The married father, 48, had been free on bail
since June, but is facing a custodial sentence
which will be handed down on 23 November.
Appearing for Kachami, Philip Dunn QC
acknowledged that his client would be “going
to jail – it’s a matter of how long he goes to
jail for”.
The court heard that Kachami agreed to
conduct the 27 April robbery with his friend
Daniel Ede – an employee at MGC – to
“preserve his life and wealth”.
Kachami had amassed a multimillion-dollar
property portfolio, though his primary source
of income – a boarding house for international
students in the prosperous inner-city suburb
of Fitzroy – had been severely impacted by the
COVID-19 pandemic.
“His whole house of cards which he was trying
to hold up… has [now] been totally trashed,”
The Age quotes Dunn as saying.
Dunn characterised his “naïve” client as a
“bungling burglar” with no prior criminal
convictions, who had initially dismissed
Ede’s plan to rob MGC.
However, prosecutor Brett Sonnet rejected
that characterisation, saying, “The intent
was to steal from a business premise in t
he city... the intent was to steal a large amount
of money.
“Both men played for very high stakes.
CONTINUED ON PAGE 32
22 | November 2020

#1
FOLLOW THE
LEADER
Reader
PUBLICATION
GLOBAL
RANKING
TIME SPENT
PER VISITOR
1 JCK 76,396 2:41 USA
COUNTRY
There are many ways to measure #1, however; when
it comes to media, there’s only one way... readership.
2 Jeweller 110,888 29:52 Australia
3 National Jeweller 157,922 1:56 USA
4
Instore Magazine 174,250 2:08 USA
5 Rapaport Magazine* 180,455 1:46 USA
6 Idex* 269,774 3:01 Israel
7 Jewellery Net Asia 350,859 2:32 Hong Kong
8 Professional Jeweller 416,169 1:44 UK
9 The Jewelry Magazine 533,052 1:00 India
10 Diamond World* 597,985 1:48 India
Not only is Jeweller the #1 industry magazine in
Australia and New Zealand by far, we are ranked #2
in the world by Alexa, the global ranking system for
analysing website readership.
Yes, your own Jeweller is now ranked the second
most widely read jewellery publication in the world,
just behind the US’s JCK magazine.
Better still, according to Alexa, the daily time spent on
jewellermagazine.com is nearly 30 minutes, which far
exceeds all is other business-to-business titles which
average between 2–3 minutes per visitor.
At the same time, Jeweller’s social media presence
dominates and our eMags boast 12 million reads.
It’s our commitment to excellence in reporting, high
quality presentation, and reader engagement that sets
us apart, which is why we say: Follow the Reader!
* Alexa Global Ranking statistics as at 7 November 2020
* Denotes magazines connected to diamond trading platforms
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY

News
MORE BREAKING NEWS
JEWELLERMAGAZINE.COM
In Brief
Alrosa pink diamond
set to be auctioned
4The Spirit Of The Rose – one of
the world’s largest vivid purplepink
diamonds – will hit the auction
block in Geneva on 11 November.
Sotheby’s is set to sell the 14.83 carat
internally-flawless stone, which was
mined, cut and polished in Russia by
Alrosa. The 27.85-carat rough was
unearthed at the Ebelyakh deposit in
Yakutia in July 2017. It is expected to
fetch up to $US38 million.
Luxury group Kering
sees slow recovery
4French luxury group Kering – which
owns watch and jewellery brands
including Pomellato, Boucheron,
Qeelin, Ulysse Nardin, and Girard-
Perregaux – has reported mixed
results for Q3 of 2020. Revenue fell
4 per cent compared with the same
period in 2019, with watches and
jewellery significantly impacted by
lack of tourism in Europe and Japan.
Louis Vuitton to sell
huge Botswana diamond
4Fashion house Louis Vuitton has
acquired a second large Botswana
diamond from mining company
Lucara, the 549-carat Sethunya
diamond, 10 months after it bought
the 1,758-carat Sewelô rough from
the same company. Louis Vuitton
plans to use the diamond as part of a
fully personalised jewellery design
experience, with the stone customcut
for a customer by HB Antwerp.
Breitling embraces
blockchain
4Swiss manufacturer Breitling has
begun issuing blockchain-protected
‘digital passports’ for all its watches
following a successful pilot program
earlier this year. The ‘passports’
are designed to remove the need
for paper documentation, simplify
the warranty and repairs process,
and prevent stolen watches from
being on-sold. The passport is
automatically connected to Breitling’s
warranty program, tracks all repairs
to the watch, and is linked to a
transferable authenticity certificate.
Teeth are one
of the smallest
bones in a
sauropod and
there is an
abundance
of them at
Lightning Ridge
TIMOTHY
FRAUENFELDER
University of
New England
There’s nothing
we love more
than helping
our fans tap
into their
favourite stories
and worlds
STEPHEN
FAIRCHILD
Pandora Jewelry
Opalised dinosaur teeth found in NSW
Four sauropod teeth preserved through the
opalisation process in Lightning Ridge. Image
Courtesy Timothy Frauenfelder
Researchers from the University of New
England have analysed several sauropod
teeth preserved through opalisation
in Lightning Ridge, NSW, discovering
previously unknown details about
dinosaurs that once lived in the region.
The four teeth were supplied by the
Australian Opal Centre – which is located
in Lightning Ridge and is home to the
world’s premier public collection of opalised
dinosaur fossils – and the Australian
Museum in Sydney.
They belonged to species including
brontosaurus and brachiosaurus, which
could grow up to 40m and weigh 90 tonnes.
Pandora releases Star Wars collection
Pandora Jewelry has launched a limitededition
range of Star Wars-themed jewellery,
designed in partnership with production
company Lucasfilm.
The pieces include charms and a bracelet,
and feature characters such as Darth Vader,
R2D2, Princess Leia, and The Child – also
known as ‘Baby Yoda’ – from The Mandalorian
series, as well as light sabers and the iconic
Star Wars logo.
The range is crafted in sterling silver, oxidised
sterling silver, and 18-carat gold-plated
sterling silver, with enamel, crystal and cubic
zirconia accents.
Stephen Fairchild, chief creative officer
Pandora, said, “We’re honoured to bring
Star Wars to life through jewellery.
“The Star Wars galaxy is one of extraordinary
imagination, richly-detailed characters and
creatures, and incredible adventures – a
perfect fit for Pandora.”
Australia is the only known source of
opalised dinosaur fossils, and all
dinosaur fossils found at Lightning Ridge
are opalised. While sauropod fossils are
commonly found in central Queensland, few
have been discovered in NSW.
Lead researcher Timothy Frauenfelder
said the fossils provided valuable insights
into the prehistoric environment.
“Teeth are one of the smallest bones in
a sauropod and there is an abundance
of them at Lightning Ridge.
“Although small in comparison to other
sauropod fossils, which can be over one
metre long, teeth can be incredibly useful
in assessing ecology and diversity,”
he explained.
Frauenfelder added, “Sauropod dinosaurs
don’t have different types of teeth such
as molars or incisors, and differing tooth
shapes can give us an idea about how many
species were living in a particular area.
“Based on this, we can identify potentially
three different species of sauropods that
co-existed at Lightning Ridge.”
The findings were published in the scientific
journal Lethaia.
He added,“There’s nothing we love more than
helping our fans tap into their favourite stories
and worlds, so we can’t wait to see how they’ll
express their passion through these artfully
stylish accessories.”
The unisex range launched in Pandora stores
and online on 1 October, with a number
of high-profile Australian ‘influencers’ –
including Elle Ferguson, Pia Muehlenbeck,
Bambi Northwood-Blyth, Christian Wilkins
and Kane Vato – promoting the range through
social media.
The Star Wars range follows the successful
Pandora x Harry Potter jewellery collection,
which was released late last year. It proved
to be particularly popular with customers,
accounting for 4.6 per cent of total sales in
November and December 2019, according to
the company’s annual report.
The limited-edition range has since been
extended with new designs.
24 | November 2020

New report explores attitudes
to lab-grown diamonds
A USTRALI AN AR G YLE PINK D I A M O NDS
The MVEye report indicates consumers are increasingly aware of and open to
purchasing man-made stones. Image: Lightbox Jewelry
A new report from US-based
jewellery industry marketing firm
The MVEye – formerly known as
MVI Marketing – has found that the
man-made stones have reached a
new threshold of awareness and
ownership among consumers.
In Gaining Critical Mass: 2020
Lab Grown Diamond Consumer
& Trade Research Report, The
MVEye revealed the results of its
September 2020 survey of more
than 1,000 US consumers aged
23-55 who had purchased diamond
jewellery in the past three years.
The report – which was sponsored
by the International Grown
Diamond Association and US
jewellery trade publication InStore
Magazine – found that 80 per cent
knew about lab-grown diamonds,
compared with less than 10 per
cent in 2012 and an increase of 22
per cent in two years.
Notably, 8 per cent of consumers
said they already owned a piece
of lab-grown diamond jewellery;
lab-grown diamonds are
currently estimated to represent
approximately 2–3 per cent of the
market.
by 38 per cent of independent
jewellery retailers in the US.
Companies including Signet
Jewelers – which owns the Zales,
Jared, James Allen, and Kay
Jewelers chains – have also begun
offering lab-grown diamonds within
the past 12 months.
Notably, 8 per cent of
consumers said they
already owned a piece
of lab-grown diamond
jewellery; lab-grown
diamonds are currently
estimated to represent
approximately 2–3 per
cent of the market
Marty Hurwitz, CEO The MVEye,
said, “Lab-grown diamond is
a high-margin category that
consumers are reacting to
positively.
“Now that Signet is in it, every
jewellery chain will have to take
a hard look at this category or lose
out on it.”
Consumers were most drawn to
the “size-to-value equation”, with
environmental impacts a secondary
factor.
The MVEye report estimated that
lab-grown diamonds were sold
As part of the report, The MVEye
surveyed 154 retailers, of which
approximately two-thirds sold labgrown
diamonds.
Of those that did stock lab-grown
CONTINUED ON PAGE 32

Tiffany & Co. and LVMH revive
takeover deal, drop court case
Following the collapse of its $16.2 billion takeover of Tiffany & Co. last month,
LVMH has agreed to purchase the jewellery company at a reduced price.
DGA diamonds are all natural and
ethically mined. The range includes
9K and 18K gold bridal sets, wedding
bands, fashion earrings, bracelets,
rings and pendants.
New season designs now available.
Proudly distributed by
Moët Hennessy Louis Vuitton
SE (LVMH) and Tiffany & Co.
have confirmed reports that a
new acquisition deal has been
accepted, and the two parties
will no longer proceed with a trial
which was scheduled to be heard
in January.
The original Merger Agreement,
which was inked on 24 November
2019, will be modified with a lower
purchase price and revised closing
conditions.
LVMH will acquire Tiffany & Co.
for $US131.50 per share, totalling
$US15.8 billion – reduced
from $US135 per share, or
$US16.2 billion.
Roger N Farah, chairman of
the board of directors, Tiffany
& Co., said, “We are very pleased
to have reached an agreement
with LVMH at an attractive price
and to now be able to proceed with
the merger.
“The board concluded it was in
the best interests of all of our
stakeholders to achieve certainty
of closing.”
At the time of publication, Tiffany
& Co. shares were trading at
$US130.81, an increase of more
than 6 per cent compared with
26 October.
Bernard Arnault, president and
CEO LVMH, added, “This balanced
agreement with Tiffany’s board
allows LVMH to work on the
Tiffany acquisition with confidence
and resume discussions with
Tiffany’s management on the
integration details.
“We are as convinced as ever of
the formidable potential of the
Tiffany brand and believe that
LVMH is the right home for Tiffany
and its employees during this
exciting next chapter.”
It is an abrupt about-face for
LVMH, which excoriated Tiffany
& Co. management over its
handling of the COVID-19 crisis
after withdrawing from the
merger in September.
A particular target of criticism
was the payment of dividends to
Tiffany & Co. shareholders during
the first wave of the pandemic.
However, Tiffany & Co. argued
that the payment was justified
due to historical precedent,
having never missed or reduced
a dividend payment since 1987.
Notably, under the terms of the
revised Merger Agreement, Tiffany
& Co. will be allowed to pay its
regular quarterly dividend to
shareholders on 19 November.
While all international
regulatory approvals have now
been obtained, at the time of
publication, the new deal was still
subject to the approval of Tiffany
& Co. shareholders.
02 9417 0177 | www.dgau.com.au

New GIA reports out of step with
international guidelines
The Gemological Institute of America (GIA) has begun issuing lab-grown diamond
grading reports which do not follow the guidelines specified by CIBJO.
The Gemological Institute of America
(GIA) has begun issuing its updated
Lab-Grown Diamond Grading Reports
(LGDRs), which do not follow the
latest guidelines published by CIBJO,
the World Jewellery Confederation.
In August, GIA announced that it
would change its LGDRs – which it
has issued since 2006 – to include
the same colour and clarity grading
system as it uses for natural
diamonds. Previously, LGDRs used
general descriptive terms.
The new reports also specify the
method of manufacture – chemical
vapour deposition (CVD) or highpressure,
high-temperature (HPHT)
– and include an indication of whether
post-growth treatments “may” have
been applied.
GIA has also redesigned the LGDRs
to visually differentiate them from
natural diamond grading reports.
However, CIBJO’s latest Laboratory-
Grown Diamond Guidance document
categorically states that the term
‘report’ is not appropriate for labgrown
diamonds .
A CIBJO statement dated 13 October
2020 notes, “Care should be taken
that the report itself does not infer a
similarity between a laboratory-grown
diamond and a natural diamond.
The report, therefore, is referred to
a ‘Laboratory-Grown Diamond
Product Specification’ and not a
grading report.”
Futhermore, “If the 4Cs are used by
a laboratory to describe the physical
characteristics of laboratory-grown
diamonds, the letters ‘LG’ should be
placed as a prefix before the 2Cs of
colour and clarity.”
“Care should be taken that the
report itself does not infer a
similarity between a laboratorygrown
diamond and a natural
diamond. The report, therefore, is
referred to a ‘Laboratory-Grown
Diamond Product Specification’
and not a grading report.”
CIBJO STATEMENT
The guidance document also
recommends that the manufacturer,
production batch, country of
manufacture, and specific postgrowth
treatment and process
information be included – none of
which are featured in the GIA LGDRs.
The Laboratory-Grown Diamond
Guidance document was developed
by a committee of representatives
from both the natural and lab-grown
diamond sectors, with its primary
purpose being to “protect and
enhance consumer confidence”.
Other organisations, including HRD
Antwerp, American Gem Society
Laboratories, Gemological Science
International and International
Gemological Institute, also offer
lab-grown diamond reports.

News
New details announced for Baselworld
replacement; Murdoch takeover hits snag
Organiser MCH Group has announced
further details of HourUniverse, the
trade fair and digital platform that is set
to replace the now-defunct Baselworld,
including launch dates and new features.
The online component of HourUniverse will
launch in February 2021, with a physical
trade show to follow from 8–21 April.
In a statement, MCH Group management
explained, “This new digital universe will
be a business and networking platform,
as well as a space for information, content
and conferences with live-streaming.
The online component of
HourUniverse will launch in
February 2021, with a physical
trade show to follow 8–21 April
“[It is] a platform also designed to serve
brands, permitting them to push their
content such as product launches, press
conferences, keynotes and seminars – live
and/or interactive, commercial or PR – in
their own corporate environment if they
wish, with selective access.”
The trade show – which MCH Group
describes as “a grand festival of
networking and experiences” with an
“urban tech atmosphere” – is set to take
place in the same venue that once held
Baselworld: Messe Basel.
While the event will retain some elements
of its previous iteration – including
conferences, pavilions, workshops,
exhibitions and a sales area – there will be a
greater emphasis on digital components.
This is reflected in the range of exhibitors,
which has been extended to include
‘connected products’, certified pre-owned
watch retailers, synthetic gemstone
manufacturers, and technology companies.
MCH Group has also promised a return to
the social atmosphere that once pervaded
Baselworld, with daily themed breakfasts
and Happy Hours, after-show parties, and
an opening and closing celebration.
Notably, the organiser has addressed
one of the most significant factors in the
decline of Baselworld by revamping its
pricing structure.
“The pricing policy has been drastically
adjusted to allow [exhibitors] a particularly
competitive return on investment… adapted
to their business, size, scope, expectations
and needs. Similarly, the accommodation
offered for exhibitors and visitors alike will
be at guaranteed ultra-competitive prices
without precedent.”
At the time of publication, specific details
of exhibition pricing and accommodation
rates had not yet been announced and no
exhibitors had been confirmed.
MCH Group has also announced its financial
results for the first half of 2020, revealing its
operating income fell 55 per cent compared
with the same period in 2019 largely as a
result of the COVID-19 crisis.
The losses were concentrated in the
exhibitions division, which recorded a
decline of 73 per cent compared with 2019.
This division accounts for more than half
of MCH Group’s revenue.
“MCH Group is expecting a decline in sales
of CHF230–270 million compared with
the previous year and an annual loss in
the upper double-digit million range,” the
report noted.
In July, the company’s Board of Directors
accepted an offer from Lupa Systems – an
investment firm whose founder and CEO
is James Murdoch, son of media magnate
Rupert Murdoch – to acquire a stake of
33.3–49 per cent for CHF10.50 per share.
The report stated that Lupa Systems was
“prepared to invest CHF75 million in the
MCH Group and help overcome the group’s
precarious economic situation”.
However, despite being approved by more
than 70 per cent of shareholders at an
extraordinary general meeting held in
August, the deal was blocked by the Swiss
Takeover Board (TOB).
The TOB found that, under Swiss law, Lupa
Systems would be required to make a
mandatory public offer to acquire any stake
larger than 33.3 per cent.
In a statement dated 28 August, Christian
Jecker, head of corporate communications
and investor relations MCH Group,
confirmed the company was in the process
of appealing the TOB decision to the Swiss
Financial Market Supervisory Authority.
The pricing
policy has been
drastically
adjusted
to allow
[exhibitors] a
particularly
competitive
return on
investment…
adapted to
their business,
size, scope,
expectations
and needs
MCH GROUP
STATEMENT
Featuring the
delicate pink tone of
Argyle pink diamonds
SAMS GROUP
AUSTRALIA
E pink@samsgroup.com.au
W samsgroup.com.au
P 02 9290 2199

Rio Tinto announces new diamond
tender; mining partner on the brink
The Diavik Helios, a 74.48-carat fancy yellow diamond mined in Canada, is Lot 1 in
Rio Tinto’s new Specials Tender of large diamonds. Image credit: Rio Tinto
In addition to its annual Argyle Tender
of pink, red, and blue diamonds, Rio
Tinto has begun a separate tender
for large stones weighing 10.8 carats
or more, including a fancy yellow
from Canada.
The ‘Specials Tender’ represents
the final sale of rough diamonds
from the Argyle Mine in Western
Australia, which is due to close at
the end of 2020.
Approximately 28,399 carats of rough
– including both fancy colours and a
26-carat gem-quality white stone –
are on offer.
Lot 1 of the Specials Tender is the
Diavik Helios. Originating from Rio
Tinto’s Diavik Mine in Canada’s
Northwest Territories, the 74.48-carat
fancy yellow diamond is named for the
ancient Greek sun god.
Patrick Coppens, general manager
– diamond sales and marketing, Rio
Tinto, said, “Since the Diavik Mine
began production in 2003, it has
produced on average only five large
yellow diamonds each year – in effect,
less than 0.001 per cent of Diavik’s
annual production.”
“The Diavik Helios is an exceptional
diamond in terms of its colour
saturation and clarity and will be
in strong demand from coloured
diamond specialists around the
world,” he added.
Bids for the Specials Tender are due
to close on 9 November, and the
collection will be shown in Antwerp
and Tel Aviv as well as online.
“The Diavik Helios is an
exceptional diamond in terms of
its colour saturation and clarity
and will be in strong demand from
coloured diamond specialists
around the world.”
PATRICK COPPENS
Rio Tinto
Notably, Rio Tinto recently applied to
a Canadian court for permission to
sell its beleaguered junior partner’s
portion of Diavik rough, which it had
been holding as collateral.
Dominion Diamond Mines, which
controls a 40 per cent stake in the
Diavik Mine, has faced severe financial
difficulties due to the COVID-19
pandemic and filed for insolvency
protection in April.
Its interim CEO, Patrick Merrin,
stepped down on 20 October following
the collapse of a CAD126 million
($AU134 million) restructuring plan,
which would have sold its 90 per cent
interest in another Canadian diamond
mine, Ekati, to an affiliate of its
parent company.
CONTINUED ON PAGE 32

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News
New report explores attitudes
to lab-grown diamonds
CONTINUED FROM PAGE 25
diamonds, 87 per cent indicated that they
were satisfied with their choice.
Meanwhile, 95 per cent stated that their
margins were higher for lab-grown diamonds
compared with natural diamonds, and
the closing rate for lab-grown sales was
estimated at 60–80 per cent.
Approximately half of these retailers said
that lab-grown diamonds “absolutely”
detract from their natural diamond sales.
“Lab-grown diamond is a highmargin
category that consumers
are reacting to positively... Every
jewellery chain will have to take
a hard look at this category or
lose out on it.”
MARTY HURWITZ
The MVEye
A similar proportion of retailers who
stocked only natural stones indicated they
were happy with their current diamond
business, with one third saying “nothing
could change their mind” about stocking
lab-grown diamonds.
Hurwitz said, “Consumers already accept
lab-grown diamonds in all channels. The
roadblock to the success of this category
has never been the consumer, it has been
the trade.”
He added, “It doesn’t matter what consumers
have assigned that emotion [of love] to,
jewellers have to make a profit on it – that’s
the goal. Hanging on to just one product that
sells love may not be a good idea.”
The MVEye report also explored the
increase in consumer awareness for
branded lab-grown diamonds, finding that
Brilliant Earth and DIAMA By Swarovski
enjoyed the most recognition, at 35 per
cent and 34 per cent respectively.
Lightbox Jewelry – the lab-grown diamond
fashion jewellery brand manufactured
by De Beers and launched in May 2018
– had the largest increase in consumer
awareness, rising from 7 per cent
in September 2018 to 24 per cent in
September 2020.
Lightbox Jewelry – the labgrown
diamond fashion
jewellery brand manufactured
by De Beers and launched in
May 2018 – had the largest
increase in consumer
awareness, rising from 7 per
cent in September 2018 to
24 per cent in September 2020
In late October, Lightbox officially opened
an extensive new factory in the US state of
Oregon, which is forecast to reach its full
production capacity of 200,000 polished
carats per year in early 2021.
It has also begun selling its 14-carat gold
range through international e-commerce
jewellery retailer Blue Nile.
It marks the first time Lightbox jewellery
has been sold outside the US and Canada.
Through Blue Nile, Australian and New
Zealand consumers will be able to
purchase the pieces, which are priced
at $US600–1,750 ($AU850–2,480).
Rio Tinto announces new diamond tender; mining
partner on the brink
CONTINUED FROM PAGE 30
Dominion’s previous CEO, Shane Durgin, resigned
in February.
A spokesperson for Dominion told Rapaport News,
“During recent months, Dominion has faced
unprecedented challenges stemming from the COVID-19
pandemic and global shutdown of diamond sales.
“Unfortunately, the recent development with the sale
process will force us to conserve cash as much as
possible in the near term, which could mean extending
furloughs or making permanent layoffs.”
In its court filing, Rio Tinto subsidiary Diavik Diamond
Mines (DDM) – which controls the majority of the Diavik
Mine as well as day-to-day operations – noted that
Dominion owed it CAD121.9 million ($AU129.8 million).
“During recent months, Dominion has faced
unprecedented challenges stemming from
the COVID-19 pandemic and global shutdown
of diamond sales. Unfortunately, the recent
development with the sale process will force
us to conserve cash as much as possible.”
DOMINION DIAMOND MINES SPOKESPERSON
“Dominion has not repaid the… payments, or any portion
thereof, and has no intention of doing so. It would be
unjust and inequitable not to permit DDM to recover
amounts owing to it [by selling the rough],” the filing
asserted.
Dominion filed documents in June alleging DDM had
breached the terms of the joint venture agreement,
which Rio Tinto strenuously denied.
A hearing on Rio Tinto’s rough sale application is
scheduled for 30 October. Dominion will remain under
insolvency protection until 7 November.
Defendant in Melbourne Gold Company robbery
faces court, awaits sentencing
CONTINUED FROM PAGE 22
In terms of gravity of offending, it is at the
highest end of the scale.”
The court heard that careful planning went
into the heist, including hiring a car, multiple
trips to a hardware store, and obtaining stolen
number plates.
Judge Howard Mason questioned Kachami’s
decision to take part in the heist instead of
selling his properties.
A witness impact statement from Michael
Kukulka, owner of Melbourne Gold Company,
was also read at the hearing.
Kukulka had known Ede for 15 years and said
the crime had left him distrustful and afraid,
having lost his “faith in mateship”.
While
police have
recovered
the majority
of the stolen
goods,
more than
$300,000
remains
missing
Ede was arrested in May. Until his
appearance at Melbourne Magistrates’
Court on Wednesday 14 October, he had
maintained his innocence.
Following his guilty plea, other charges
– including firearms offences and perjury –
were struck out, The Age reports.
At the time of publication, Ede had not yet
been sentenced.
Kachami also wielded a firearm during the
robbery, though CCTV footage later showed
that the weapon was not loaded.
He added that his business had suffered as a
result of the robbery, as customers no longer
felt his premises were secure.
While police have recovered the majority
of the stolen goods, more than $300,000
remains missing.
32 | November 2020

10 Years Ago
Time Machine: November 2010
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 Swarovski raises bar for Sydney store
4 Diamond Exchange challenges JAA
4 Cash for gold exposé implicates jewellers
4 Peekays founder passes away
4 Michael Hill hunts for ‘best couple’
Luxury jewellers urged to
consider ethics
Luxury jewellers are being urged to respond to an
emerging consumer social conscientiousness in
order to secure commercial success.
Jonathan Kendall, president of the World Jewellery
Confederation (CIBJO)’s market and education
commission, wrote in a recent report that the
Global Financial Crisis had prompted customers to
rethink their purchasing decisions.
“Customer awareness and concern for social,
ethical, and environmental issues also underpin
a desire for their purchases to provide a lasting,
meaningful experience. Innovative product
concepts, luxury recycling, accessible supply
chain information and a visible celebration
of craftsmanship will appeal to tomorrow’s
customer,” Kendall explained.
Employment rules push
jeweller to sell store
Confusion over the new Modern Award rules
has forced a Tasmanian jeweller to put one of
his two stores on the market.
Following Jeweller’s revelation that retail
jewellers were struggling to understand the new
employment Acts, which came into effect on 1
January 2010, it has emerged that a jeweller has
decided he would be better off closing his threeyear-old
store in Deloraine altogether.
Tim Haab told Jeweller that he was fearful
because “the small changes in the awards have
resulted in me bearing a higher liability”.
November 2010
ON THE COVER Protea Diamonds
Editors’ Desk
4The Wisdom Of Marx: “My view is that
an industry association should consist
of industry members not the people
who provide products or services to that
industry. JAA membership should be
restricted to two channels – suppliers of
product or services to jewellery retailers,
and those who retail that product or
service to consumers.
It’s a little like Grouch Marx’s famous
line, ‘I refuse to join any club that would
have me as a member’.”
Soapbox
4Where Is The Love?: “In a high-end
jewellery store, every piece tells an
individual story of the owner. But the
jewellery also reflects the customer,
because we create something unique,
with materials that are being used
specifically for the creation of that item,
in close consultation [with them].
Fine jewellers must fight against the
commodification of jewellery, before
we get to a point where every sale
comes down to price.”
– Michael Neuman, co-owner Mondial
Neuman Jewellers
STILL RELEVANT 10 YEARS ON
First Impressions Count:
“Before a customer examines your
gemstones, compliments your modern
jewellery design, or admires the quality
of your pieces, they are going to see your
store’s displays... Unfortunately, most
Australian retailers choose conservative
over innovative.”
Showcase moves into
New Zealand
Showcase Jewellers, one of Australia’s
top jewellery buying groups, has entered
New Zealand by merging with local buying
group Gemtime Jewellers after 12 months
of negotiation.
An agreement to merge Showcase with the
30-year-old Kiwi buying group was announced
during the JWNZ trade fair. Gemtime
chief exectuive Peter Alexander said, “The
merger will allow Showcase and Gemtime
to collaborate and create a leader in buying
and marketing power for Australian and New
Zealand independent jewellers.”
‘Offline’ jewellers missing
a trick
Only 36 per cent of Australian retailers own
a website, according to a recent MYOB survey,
showing there is still a long way to go before
the industry fully recognises the power of
the internet.
MYOB general manager Julian Smith said the
survey found a direct correlation between a
business’ web usage and its profitability.
Across the Tasman, internet take up is greater,
with 48 per cent of Kiwi retailers owning a
website. Smith attributed this to the size of
the local market, saying, “Kiwi retailers have
to think more creatively about how to market
their products.”
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
34 | November 2020

Signature
Style
WORTH & DOUGLAS
PO Box 866, Tullamarine, VIC 3043
@wdrings | 03 9338 0091 / 1800 006 388 | sales@worthdouglas.com.au | www.worthdouglas.com

INSIDE
My Store
By Charlotte
SYDNEY, NSW with Charlotte Blakeney, director • SPACE COMPLETED July 2019
4Who is the target market?
Our beautiful customers are primarily women, but
we do also get men purchasing for their family
members or partner.
Because of this, we wanted to create a space that
was feminine but not intimidatingly so. We kept
the colour scheme fairly creamy and neutral and
accented the space with soft pink florals and
rustic textures.
We also get customers across all demographics,
so we needed the space to be equal parts fun and
luxe – especially since we also sell 14-carat gold
diamond jewellery.
The space needed to be warm and playful, but still
clean and refined.
4Which features encourage sales?
Shopping can be such a stressful experience, so
rather than focus on optimising sales we want to
create a space that is tranquil, calming and warm.
We want our customers to step foot into our store
and immediately feel their stress melt away.
From the beautiful dried florals and natural textures
to our signature candle burning a heavenly tropical
scent, each sensory touchpoint in the store has
been chosen to evoke a sense of peace and calm.
At By Charlotte, we want our customers to resonate
with the jewellery on a deeper, more personal, level
– and a space that brings to life the spiritual and
empowering soul of the brand is essential.
4What is the store design’s ‘wow factor’?
As a brand we aim to empower women through
messages of love, peace and harmony. This was
something we heavily convey in the store with
inspiring mantras on the walls and mirrors; words
our customer can read through in their quiet
moments of browsing.
A particular favourite of mine is, “Everything you
are is enough.”
36 | November 020

CELEBRATING
Local Talent
MARTIN ROGERS
JEWELLERS
Blue Sapphire &
Diamond Bangle
Metal: 18-carat
yellow gold
Gemstones: Blue
sapphire, white diamond
Martin Farkas
Adelaide, SA
JAI HAY JEWELLER
Dress Ring
Metal: Yellow gold
Gemstones: Diamond, ruby
Jai Hay
Hobart, TAS
MICHAEL WILSON DIAMOND JEWELLERS
Rare Coloured Diamond Pavé Ring
Metals: 18-carat white gold, yellow gold
Gemstones: White diamond, fancy
colour diamonds
Aaron Wilson
Eltham, VIC
Australia and New Zealand are not only home to some of the
rarest gemstones in the world, but also the most talented jewellers.
Jeweller showcases a tapestry of local masterpieces that have been
meticulously crafted with great artisanship, right here on home soil
SARAH ROTHE
Anisoptera Collar
Metal: Anodised
titanium
Sarah Rothe
Adelaide, SA
RINGCRAFT MOANA
Spring Colours Rings
Metal: Rose gold
Gemstones: Diopside,
diamond
Rob Wright
Oakura, NZ

MATTHEWS JEWELLERS
Autumn Dream Earrings
Metals: 18-carat white
and rose gold
Gemstones: South Sea pearl,
diamond
Leah Abercrombie
Newcastle, NSW
JODI PHILLIPS FINE
JEWELLERY
Helena Ring
Metal: 18-carat
yellow gold
Gemstones: Bi-colour
sapphire, diamond
Jodi Phillips
Gold Coast, QLD
LIZUNOVA FINE
JEWELS
Manhattan Earrings
Metals: 18-carat
yellow and white gold
Gemstones: Parti
sapphire, green
tourmaline
Maria Lizunova
Sydney NSW
ROWE DESIGN
Natural Pearl
Cockatoo Pendant
Metal: Yellow gold
Gemstones: Free-form
keshi pearl
Shayne Rowe
Cairns, QLD
DEAN WALKER DSIGNS
It Came From Outer Space Pendant
Metal: 18-carat yellow and white gold
Gemstones: Opal, spinel, diamond
Dean Walker
Burnie, TAS
JASMINE FRASER
Art Deco Engagement Ring
Metal: White gold, yellow gold
Gemstones: Yellow diamond,
white diamond
Jasmine Fraser
Melbourne, VIC
KIRRA-LEA JEWELLERY
Torc Cuff
Metal: Recycled
sterling silver
Gemstones: Recycled
diamond, amethyst,
topaz, garnet
Kirra-Lea Caynes
Melbourne, VIC
November 2020 | 39

Completing my Diploma in
Gemmology has benefited
me as a jeweller in more
ways than I ever expected.
I have always had an interest
in gemstones and found
the course was not only
informative and challenging
but immensely rewarding.
Studying with the GAA has also
allowed me to meet like-minded
people from many facets of the
jewellery industry and grants me access
to resources that I will continue to use
throughout my professional career.
Emma Meakes FGAA
Jeweller, John Miller Design - WA
Diploma in
Gemmology
Enrolments now open
For more information
1300 436 338
learn@gem.org.au
www.gem.org.au
Be
Brilliant
Gem-Ed Australia
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY
Passionately educating the industry, gem enthusiasts
and consumers about gemstones

LEARN ABOUT
Gems
Jade Part II: Nephrite
L to R: David Webb earrings | David Webb necklace | Antique Necklace
| Fred Leighton Bracelet Below: Fred Leighton bracelet
In part one of the jade series, we noted
that the name ‘jade’ is a commercial
term used for two minerals: jadeite and
nephrite. Last month we focused on
jadeite; this month, we focus on nephrite.
With a hardness of 6–6.5 on Mohs’ scale,
nephrite is a little softer than jadeite,
which has a hardness of 6.5–7.
However, it has a higher tenacity and is
regarded as the ‘toughest’ of gems.
This property of toughness makes it
suitable not only in a range of jewellery,
but also for use in gem carvings and
decorative items.
Nephrite is an opaque to semi-translucent
mineral with a vitreous to somewhat
greasy lustre. Most consumers will be
familiar with green nephrite, with its
colour ranging from pale to dark green.
However, the gem has other colours:
white, yellow, brown, grey and black, and
a rare blue. The ‘mutton fat jade’ of China
is actually nephrite.
Like its relative jadeite, nephrite is mostly
found in the form of pebbles and boulders
near streams and rivers.
This location is attributable to the
toughness of the mineral because these
two minerals do not weather easily. But
as the two form under different geologic
conditions, they are not found together in
the same location.
Nephrite jewellery often features beads
and carvings with animal and floral
motifs. High quality nephrite may be cut
as cabochons, and its strong colour and
opacity make the gem ideal for use in
rings and pendants.
Nephrite that is translucent with a solid
green colour is the most valuable.
Mottling of colour or the presence of
dark mineral inclusions lessens the
gem’s value.
Nephrite is a more common mineral
than jadeite, and its major sources are
New Zealand, Mexico, Peru, British
Columbia and Taiwan. It is the official
state mineral of Wyoming.
To the Maori of New Zealand, nephrite
– called pounamu or greenstone – is an
important gemstone found on the South
Island around Otago.
It has great cultural significance, used not
only for adornments but also for practical
uses, including making tools
and weapons.
It is often worn as a pendant called a
Hei-tiki, which can be a simple smooth
polished piece or carved into traditional
Maori symbols of good fortune.
Nephrite
From the Latin lapis
nephriticus, meaning
‘kidney stone’
Colour: Many, including
green, white, yellow,
brown, grey, black, and
rarely blue
Found in: New Zealand,
Mexico, Peru, British
Columbia (Canada),
USA and Taiwan
Mohs Hardness: 6.5–7
Class: Pyroxene
Lustre: Subvitreous
Formula:
Ca 2
(Mg,Fe) 5
Si 8
O 22
(OH) 2
As with jadeite, nephrite has many imitants.
Because it is tougher than jadeite, nephrite
is more difficult to dye, so its imitants
tend to be other kinds of mineral that
may be dyed green, or minerals that are
naturally green.
A gemstone that can look similar is
bowenite, a member of the serpentine
mineral group.
However, unlike nephrite, the green colours
of bowenite tend to look rather yellowish or
blueish and may contain patches of white.
Bowenite is softer than nephrite, with a
hardness of 5.5 on Mohs’ scale.
Other imitants of jade include amazonite,
which is a blue-green variety of feldspar,
aventurine, a cryptocrystalline variety of
quartz, and massive grossular garnet.
Jade jewellery, whether it be jadeite or
nephrite, looks its best when kept clean.
Wipe it gently with a soft cloth dipped into
soapy water – don’t scrub or you will dull
the surface! Then use a cloth wetted with
just water to wipe off any soapy residue.
Susan Hartwig FGAA combines her love
for writing with a passion for gems and
jewellery through her gemmology blog,
ellysiagems.com. For more information
on gemmology courses and gemstones,
visit gem.org.au
November 2020 | 41

FEATURE
Diamond Industry Update
PANDORA
THROUGH THE
PANDEMIC
A TURNAROUND
IN THE MAKING

RECENT STATS
Pandora
Powers
Through
P
rior to the COVID-19 pandemic and
resulting financial crisis, Pandora was
the most-targeted stock by share traders
who were betting that the stock would drop in
price. Yet a recent report by financial publication
Bloomberg found that the jewellery company had
defied all expectations.
The report explained, “In a year of lockdowns and falling
consumer spending, the top spot in the world’s bestperforming
national market has been taken, surprisingly,
by a Danish jewellery maker and retailer.
“Shares of Pandora A/S have jumped 64 per cent this year,
heading the OMX Copenhagen 20 and 25, which
lead country indexes globally in the period.”
The 20 September article states that the positive outlook
for Pandora follows a decline in short sellers’ interest
in the stock.
“Hedge funds started leaving when Pandora showed signs
that growth was coming back and it has had a ‘ketchup
bottle’ effect on the stock,” Per Fogh, an analyst at
Sydbank, told Bloomberg.
“The short sellers have been out closing their positions and
combined with the positive sentiment on growth, that has
given the [Pandora] stock a big boost.”
This news follows the company’s advice on 26 August to the
Nasdaq Copenhagen, formerly known as the Copenhagen
Stock Exchange, that Pandora CEO, Alexander Lacik, had
purchased 57,560 shares at a total price of DKK23,505,544,
and now holds a total of 161,628 shares.
The stock closed at DKK454 ($US69/$AU97) on 30 August
and has since traded as high as DKK579.
Pandora has been through the wars over recent years.
In February it released its 2019 annual report which
recorded revenue falling in six of its seven key markets over
the previous 12 months – including the US and Australia.
197%
stock price
increase,
16 March –
13 October 2020
Source: Google Stocks
$2.42bn
revenue in the first
nine months of 2020
Source: Pandora Interim
Financial Report Q3 2020,
figure converted from
DKK4.07 billion
32
concept (brandonly)
stores were
permanently closed
between Q3 FY19
and Q3 FY20
Source: Pandora Interim
Financial Report Q3 2020
90%
of concept (brandonly)
stores
reopened following
COVID-19 closures,
31 July 2020
Total revenue fell from DKK22.8 billion ($AU5 billion) in
2018 to DKK21.9 billion ($AU4.8 billion).
At the time the report was published, Pandora stock
traded at around DKK312 ($US48/$AU66). Just four
years earlier, Pandora’s share price hovered at DKK871
($US133/$AU185). That was during a period where
revenue growth reached 40.2 per cent; it has declined
every year since.
At the time of the 2019 report, the exception to the
downward trend was China, which recorded stable sales
and accounted for 10 per cent of the total revenue.
“The short sellers have been out closing
their positions and combined with the positive
sentiment on growth, that has given the
[Pandora] stock a big boost.”
Per Fogh, Sydbank
However, the COVID pandemic was just beginning and
it was predicted that the crisis would have a significant
impact on revenue in the first quarter of 2020, especially
given that Pandora had temporarily closed more than 50
Chinese stores, while locations that remained open had
seen reduced foot traffic.
Anders Boyer, chief financial officer Pandora Jewelry,
said at the time, “We have seen empty streets in China.
It’s quite dramatic. The situation is highly unpredictable.”
Unpopular designs and product
In July 2019, Pandora’s woes reached a low when, in an
extraordinary step, management found it necessary to
announce a ‘buy-back’ scheme from retail stockists.
Pandora Denmark set a worldwide budget to clear poor
performing and unsaleable jewellery ranges from the
retail channel.
November 2020 | 43

A TURNAROUND IN THE MAKING | Pandora during the pandemic
AT THE HELM
Faces of
Management
Alexander Lacik
Current CEO, Pandora
Anders Colding Friis
Former CEO, Pandora
AUSTRALIAN
MANAGEMENT
In an email to Pandora stockists,
Phil McNutt, then-managing director
Pandora Australia and New Zealand,
said the company “is initiating an
inventory purchase program for select
multi-branded [independent jewellers]
partners in Australia.
“The purpose of the program is to
assist with your inventory management
by allowing you to sell to Pandora
older, outdated merchandise and
enabling you to purchase better, faster
turning merchandise.”
The returned Pandora product was
to be smelted.
“The event in Los Angeles marks
the beginning of our journey
to become more relevant for
consumers... [to] show a fresher
and more contemporary
Pandora.”
Alexander Lacik, Pandora
The email outlined how Pandora would
provide a list of products to retailers
and only items on that list would be
eligible for compensation.
Pandora would then buy the product
back at the “then-current wholesale
price less handling fee for each item
that it purchases”.
The handling fee was 20 per cent and
retailers were paid 90 days after the
product was returned. In addition, a
further 10 per cent handling fee was to
be charged if the items received were
not packed and invoiced by the retailer
as per a strict set of instructions.
This program sparked outrage from
Pandora’s authorised retailers –
something the company could
ill-afford at the time.
In effect, Pandora was still making
money on unpopular product pushed
onto retail stockists which they could
not sell; many stockists stood to lose
30 per cent on product they never
really wanted.
Jeweller reported one Pandora stockist
as saying, “This is typical of Pandora.
They ‘force’ us to take stock we don’t
want, or need, and have increased
the number of drops [range deliveries]
per year, and we have to pay them in
30 days.
“However, when their products fail to
sell – often because they do not fit well
with our customer base – they offer
to buy it back at only 70-80 per cent
of what it cost us and then delay our
payment for 90 days.”
At the same time (July 2019), Pandora
released a quarterly financial report,
revealing its earnings dropped 13.7
per cent to DKK1.29 billion ($AU283
million) over the previous three
months. The stock was trading at
around DKK255($US39/$AU54).
Australia was the second-worst
performer of Pandora’s top seven
markets. On a like-for-like basis,
Pandora Australia’s earnings fell 17
per cent compared with the same
David Allen
Current general manager,
Pandora APAC, and former
president Pandora Australia &
NZ (2012-2015) and Pandora
EMEA (2015-2020)
Phil McNutt
Former managing director,
Pandora Australia & NZ
(2019-2020)
Mikael Kruse Jensen
Former managing director,
Pandora Australia & NZ (2017-
2019) and Pandora Northern
Europe (2019-2020)
Brien Winther
Former managing director,
Pandora Australia & NZ (2015-
2017) and UK (2017-2018)
period the year before (2018), and 18 per
cent for the year-to-date.
Sales growth was equally poor, falling 17
per cent compared to the previous year
and 21 per cent for the year-to-date.
If the jewellery buy-back program
wasn’t sufficient evidence that the brand
was in the doldrums, Pandora also
announced a brand re-launch as part of
its “company-wide turnaround program,
Programme NOW.”
A grand re-launch event took place in
Los Angeles on 28 August 2019, and
was attended by more than 400 guests
from around the world, as well as
international news media.
“The event in Los Angeles marks the
beginning of our journey to become
more relevant for consumers. We have
received very positive feedback to the
marketing pilots we have conducted
earlier this year, so we are eager to take
this to consumers around the world and
show a fresher and more contemporary
Pandora,” CEO Lacik declared.
Management merry-go-round
Lacik joined Pandora as president and
CEO in February 2019, following the
resignation of Anders Colding Friis in
August 2018.
Friis announced he would leave the
company on 31 August 2018 after
three-and-a-half years at the helm. The
resignation came hot on the heels of the
company announcing “organisational
adjustments”, including the reduction
of almost 400 jobs in a bid to achieve its
2022 goals.
44 | November 2020

LOOK THROUGH TIME
Australian
Merry-Go-Round
Pandora during the pandemic | A TURNAROUND IN THE MAKING
At the time of Friis’ announcement,
the stock traded at around DKK359.
Lacik, who describes himself as a
“turnaround architect”, joined Pandora
after a short stint as CEO of Britax, a
British childcare products maker.
He previously spent 12 years at UK
personal goods manufacturer Reckitt
Benckiser, concluding his tenure as its
president of North American operations.
In that role, he oversaw major growth
in the company’s largest market, with
revenue totalling $US3.5 billion.
Pandora’s management shuffle
continued and by March 2019, with
the share price at around DKK320,
chairman of the board of directors,
Peder Tuborgh, announced plans to
appoint his successor. He had been
with Pandora since 2014.
At the same time, the company
also announced plans for a massive
share buyback over the ensuing 12
months, which was aimed to boost
shareholder dividends.
Following Lacik’s appointment, chief
operating officer Jeremy Schwartz
tendered his resignation on 3 April.
Schwartz had been acting as ‘co-CEO’
alongside chief financial officer
Anders Boyer since Colding Friis
quit the company.
None of the management changes
instilled confidence in the market; the
share price continued to fall for the
next two months and by 14 June 2019,
Pandora stock hit a new low of DKK220
($US34/$AU47).
2012 - May
Karin Adcock, founder
of Pandora Australia,
steps down after eight
years leading the company.
David Allen takes over
as managing director
of Australia and New
Zealand.
2015 - Sep
David Allen moves to
Denmark to take up the
newly-created position
of president EMEA region
(Europe, Middle East,
Africa). Brien Winther
is appointed managing
director of Australia and
New Zealand.
2016 - Sep
Brien Winther is
appointed managing
director of Pandora
British Isles effective
1 January 2017. Mikael
Kruse Jensen, Pandora
vice-president of finance,
is appointed managing
director of Australia and
New Zealand, effective
1 March 2017.
2017 - Jan
Brien Winther takes over
Pandora British Isles.
2017 - Mar
Mikael Kruse Jensen
takes over Pandora
Australia and New
Zealand.
2018 - Sep
After 18 months as
managing director of
Pandora British Isles,
Brien Winther leaves the
UK to return to Australia,
citing family reasons.
2019 - Jan
Mikael Kruse Jensen is
appointed as managing
director for Pandora
Northern Europe,
based in Germany.
Phil McNutt, former
president Sunglass Hut
Australia, is appointed
managing director of
Pandora Australia and
New Zealand.
2020 - Jul
David Allen moves back
to Australia to take over
as managing director of
the new Pandora Pacific
division, comprising
Australia, New Zealand
and Fiji. Phil McNutt
leaves the company.
Above: Chart compares the number of Pandora Concept (brand-only) stores and Pandora
independent stockists by state. Source: Jeweller’s State of the Industry Report 2020
Notably, following the management
changes and leading up to the August
brand re-launch, Pandora doubled its
marketing spend in Italy and the UK.
It also committed to increasing its
marketing investment across other
major markets, including Australia,
over the remainder of 2019.
However, in the months following the
re-launch and the international ‘buyback’
program to rid the retail channel
of unpopular and unsaleable stock, the
share price moved little.
From 30 August to 3 January 2020
it remained in a range of DKK260 to
DKK340. It was obvious why short
traders had made it a target.
Notably, following the
management changes and
leading up to the August brand
re-launch, Pandora doubled
its marketing spend in Italy
and the UK
There were more major management
change to come. On 24 March 2020
it was announced that former H&M
executive Martino Pessina would join
the leadership team.
Pessina took up the newly-created role
of chief commercial officer on 2 April
and became responsible for overseeing
10 regional ‘clusters’ created in
another round of restructuring.
Pessina was previously president of the
North American division of international
clothing retailer H&M. Over a twodecade
period working for the Swedish
company, he held management roles in
retail, sales, merchandising, operations
and expansion.
According to a Pandora Jewelry
statement, Pessina oversaw a
“remarkable sales and profit
turnaround” while leading the North
American division, increasing annual
revenue to more than $US4 billion.
Closer to home, over the past
five years, Pandora Australia
has undergone something of a
management merry-go-round.
It has been led by four different
executives: Brien Winther, who was
transferred to Pandora British Isles
after 13 months, Mikael Kruse Jensen,
who left to manage Pandora Northern
Europe, Phil McNutt, who joined the
company from Sunglass Hut in January
2019 and lasted less than two years,
and David Allen, who has returned to
Australia to head up the local arm for
the second time.
Worse to come
Other issues have plagued the
company. Many people – including
franchise owners and independent
stockists – pointed the finger at poor
product design and trading policies.
Some of Pandora’s woes began many
years before when it started closing
the accounts of stockists and, more
recently, the ‘buying back’ of its own
concept stores (franchisees) overseas.
November 2020 | 45

A TURNAROUND IN THE MAKING | Pandora during the pandemic
L to R: Pandora’s Muses featured in its 2020 campaign: Halima Aden, Georgia-May Jagger and Margaret Zhang
In May 2018 Pandora reached an agreement
with Ireland’s BJ FitzPatrick Holdings to take
back its distribution rights and to acquire its
store network for €23 million ($US26 million), of
which around €3 million ($US3.5 million), was
for BJ FitzPatrick’s inventory.
A 22 May statement read: “The acquisition is
consistent with Pandora’s intentions to increase
the owned and operated retail footprint in
markets of importance and will grant Pandora
the opportunity to enter Ireland directly.”
The agreement would add 24 company-owned
concept stores to its portfolio, while taking over
distribution to five franchisee concept stores and
10 shop-in-shops, mainly in Northern Ireland.
On the day of the announcement (Tuesday
22 May 2018) the stock closed at DKK505.
The market and industry pundits began to
question the new Pandora strategy of reducing
its international retail footprint – closing
independent stockists in favour of franchise
and company-owned stores – including a 6 July
article by Jeweller: ‘Pandora: The beginning of
the end?’
Two months later (22 August) Pandora’s
stock had plunged 25 per cent to DKK379
($US58/$AU80) – but the worst was yet to come.
“The company has been through a
turnaround process and before the
global lockdowns set in, we saw clear
signs that the efforts are working .”
Claus Wiinblad, ATP
Fast-forward almost exactly 12 months to 14
August 2019 – two weeks before the massive
brand re-launch in Los Angeles – and Pandora
had still failed to emerge from the doldrums;
it traded at DKK226 ($US35/$AU48), a 55 per
cent fall from when it announced worldwide
account closures.
The rationalisation of Pandora’s retail locations
was a not new trend; it had been taking place
since 2011 when it closed the accounts of 100
Australia and New Zealand retail stockists,
followed by another 100 closures in 2012.
Jeweller’s recent 2020 State of the Industry
Report highlighted that a decade ago, Pandora
was sold in more than 700 retail locations
(independent stockists and company-owned
stores) yet by July 2020, that number had fallen
to below 250 – 64 per cent fewer locations than
a decade earlier (see chart, facing page).
In effect, Pandora Australia has closed the
accounts of more stores than in which it is
currently sold today.
Australia is not the only territory to see a
rationalisation of Pandora stockists. More than
1,000 have been closed internationally over
recent years; 450 US and 130 Canadian accounts
were closed in 2016 alone.
In February this year, Lacik admitted that this
strategy may have been unwise, indicating that
Pandora might need to refocus on distribution
to independent jewellery stores – the very
businesses that it once discarded.
“There hasn’t been an awful lot of attention to
multi-brand stores [independent stockists] in
the last few years. The push has been [company]
owned and [franchise] operated stores.
“We have seen there are some opportunities that
we have forgone by reducing the multi-brand
presence so much. A lot of new customers
might come through a multi-brand rather than a
concept store,” he said.
According to the company’s website, Pandora
jewellery is currently sold in more than 100
countries in 7,400 outlets, including more
than 2,700 concept stores.
Possible turnaround
The brand re-launch of 28 August 2019, had
little impact on Pandora’s share price over
four months, to the start of 2020.
Yet, putting aside the COVID-19 market lows
of 16 March 2020, when it traded at DKK195
($US30/$AU41), Pandora seems to be moving
in a more positive direction, trading between
DKK450–DKK500 by 20 September, when the
Bloomberg report was published.
“The company has been through a turnaround
process and before the global lockdowns set in,
we saw clear signs that the efforts are working,”
Claus Wiinblad, head of equities at Danish
46 | November 2020

Above: Pandora’s share price has shown a marked decline over the past five
years, but has shown surprising resilience in 2020 – bouncing back from a nearhistoric
low to its best performance in more than two years.
pension fund ATP – which holds a 3.1 per cent stake in Pandora –
told the publication.
He added, “The company was transparent about the various
scenarios it might face and set up a plan that would ensure
sufficient liquidity even if the pandemic developed in the most
negative way.”
From a market perspective, it appears confidence in Pandora’s
new management and corporate structure is high. By 13 October,
the company’s stock was trading at DKK579.80, its highest point
since May 2018.
While the Bloomberg article cautioned that many analysts have
“had a mixed record
predicting the wild stock
market swings of the
jewellery maker,” it noted:
“The brand has been relaunched,
with the company
forecasting EBIT margin
to be in a range of 16 per
cent to 19 per cent this year
compared with almost 27
per cent last year.
“Some analysts are also
looking past the jewellery
maker’s prediction for
organic sales to fall as much
as 20 per cent this year,
focusing instead on the year
ahead,” the article added.
While Pandora has had a topsy-turvy few years, its performance
during the COVID-19 crisis under the leadership of Lacik seems
to be paying off – at least for shareholders.
However, whether it can also deliver results for its retail stockists
in 2021 – and beyond – is still unknown.
As always, the final result is, ultimately, decided by the consumer.
And on that note, in order to regain its dominance of the jewellery
market, history shows Pandora must focus on two things: product
design, and its distribution and reach to consumers.
Proudly distributed by
02 9417 0177 | dgau.com.au

STRATEGY FEATURE
Online Watch Sales
ONLINE
WATCH SALES:
RUNNING OUT
OF TIME
There is a clear framework for improving watch sales – but
in the digital era, it appears retailers are still neglecting
online customers, writes GRAHAM HENRICKSON.

y GRAHAM HENRICKSON
ESSENTIAL COMPONENTS
Watch Your
Business
Fob watches were invented in the late
19th Century and wristwatches followed
at the beginning of the 20th Century and
by 1930 they were outselling traditional fobs.
But both were made in Switzerland and mostly
by hand, making them hugely expensive and
limiting ownership to royalty and those with
considerable wealth.
Annual sales of watches increased modestly in the ensuing
decades – until the late 1960s and early ’70s, when Japanese
manufacturers Seiko and Citizen triggered a global boom and
caused a paradigm shift.
Three factors tipped the balance, allowing the Japanese to
take the market by storm and almost destroying the Swiss
watch industry in the process:
They invented the quartz movement
They designed and built new machinery for the mass
production of watch movements and components
They had access to cheap labour for low-cost assembly
For the first time in history, reliable and accurate timepieces
were affordable. The response was overwhelming: everyone
wanted and needed a watch, and now they could own one.
Since then, the world has experienced massive advancements
in technology and an explosion of consumer products,
appliances, and devices. Everything from ovens to televisions,
telephones and remote controls now provide consumers with
accurate-to-the-second timekeeping.
The fact is consumers no longer need a watch to know the
time and more of them are choosing not to wear one. So, is
time running out for watch retailers?
I raised this question in an article published by Jeweller in
2012. Drawing on more than 20 years of industry experience
– including as chair of the Timepiece Council – along with
the findings from research conducted by Citizen while I was
regional managing director, I offered five recommendations
to help retailers maintain and increase sales of watches.
Reviewing the framework for success
Stand out from the crowd – To attract customers you
need to look and act like you are in the watch business.
This does not require dedicating half the store to watches
or stocking umpteen different brands.
1 Stand out
from the
crowd
2
Engage and
reward
3 Focus on
gift-giving
4 Plan for
success
5 Be prepared
for failure
Choose the number of brands appropriate for the store and
allocate funds to promoting them well.
Be prepared to commit space, invest in stock, and honour
a replenishment agreement with supplier support.
Take the opportunity to explore options like a shop-in-shop
fit-out/display as well as an end-of-season balance-back of
discontinued and slow-selling models. Doing so can make
your store a primary destination for the brands you sell.
Engage and reward – Fewer people are buying watches.
But those who are do so more often. It therefore makes
good business sense to identify these customers and
understand their reasons for buying; are they a collector,
a follower of fashion, or are watches their preferred gift for
loved ones?
Many retailers have forgotten that it is far more economical
to keep an existing customer than it is to find a new one –
but it takes work to keep them.
Maintaining client cards or VIP lists is a great step but
meaningless if you fail to do anything with them. If kept
up-to-date, they provide the means to engage and reward
regular clients who spend and who are more likely to bring
like-minded customers to your store.
Focus on gift giving – Approximately 60 per cent of annual
retail sales of watches occurs in the eight weeks before
Christmas, and throughout the year as many as seven out
of 10 watches are purchased as gifts. Therefore, anything
that enhances the gift-giving experience is likely to have a
positive effect on sales.
Have you tried to gift wrap a watch box lately? Despite the
fact most are square, they are not easy to wrap, and you
are left with excess and wasted gift-wrap.
The offer to wrap watches purchased as gifts as a
complementary service – even if only for VIP customers
– will do wonders for goodwill and repeat business.
Plan for success – Success requires more than good
luck; it requires a well-thought plan and a structured
approach. This begins with the process you adopt for
choosing the brands to stock and determining what will
differentiate your business from competitors.
Once chosen, you can draw on the support of suppliers
with a written agreement that details what each party has
committed – this should include expert product education,
a minimum level of order fulfillment and a contribution to
marketing activity.
November 2020 | 49

STRATEGY FEATURE | Online Watch Sales
Is this for
a loved one?
We’ll gift wrap it and
tie a bow for you too!
Be prepared for failure – Regardless of the
effort made, it is fair to say few things in life go
without a hiccup. The fact is, things do go wrong
so, for any number of reasons, a brand may not
perform to expectations.
If this happens – and it will – you must be
prepared to replace it with a better option and
to do so quickly.
You need to monitor your own sales as well as
the brand’s sales performance in your state and
nationally. Ensure written supplier agreements
enable quick termination, keep your finger on the
pulse, and have at least two brands on standby.
Eight years on and the world has changed. In this
new COVID-19 reality, retailers can no longer rely
on passing trade for a continuous flow of store
‘traffic’ or highly trained sales staff to convert this
traffic into sales.
Success now depends heavily on the retailer’s
website. However, just because a person has visited
your store or made a purchase in the past is no
guarantee they will buy from your website. It simply
increases the chance of being considered. To be
successful, a website must capture the attention
of online shoppers and compel them to buy.
Competition is far greater online and customers
can shop around from the comfort of their own
home. Additionally, they can easily be tempted to
switch from a retailer they know and trust to an
unknown if it will save them a few dollars. It’s hard
to find any traditional bricks-and-mortar retailer
that has risen to the challenges of selling online,
as proven by the meteoric rise of Amazon.
To be successful online, you need to be competitive
on price but more importantly you must have a
point of difference. If your website is not designed
to promote and exploit this difference then you
won’t stand a chance.
If your strategy is short term and your approach is
simply to offer the lowest price, then your trading
will be based on the lowest common denominator. I
say short-term – because in my experience, there is
always someone prepared to take a few more dollars
off just to get the sale.
Adapting the framework
With all this in mind, it is now critical to assess
the websites of watch retailers – both independent
jewellery retailers, department stores, and
“Success now
depends heavily
on your website.
But just because a
person has visited
your store or made a
purchase in the past
is no guarantee they
will buy from your
website. It simply
increases the chance
of being considered.
To be successful, a
website must capture
the attention of
online shoppers and
compel them to buy.”
e-commerce businesses – based on these five
recommendations.
For the purposes of this analysis, I examined 10
retailers: Myer, David Jones, Prouds, Zamel’s, Shiels,
Salera’s, Wallace Bishop, WatchDirect.com.au,
TheIconic.com.au, and TimepieceStore.com.au.
However, before assessing the retailers, we need to
acknowledge two conditions that apply to the watch
industry and understand their implications.
First, the industry is in transition from a ‘needs’
business – where demand was driven by the
necessity of owning a watch – to a ‘wants’ business,
where demand is driven by the desire to wear one.
Secondly, a watch is an item of ‘conspicuous
consumption’ – a term that applies to goods and
services that when publicly displayed show one’s
social status, economic wealth, and taste for luxury.
Worn to be seen, a watch communicates a great
deal about the person who wears it, including their
lifestyle, income level, if they are conservative,
contemporary, or ultra-modern, and even the type
of work they do.
For these reasons, marketing watches in the context
of lifestyle is likely to be far more effective than
positioning them as a purely functional product.
This is best achieved by leveraging the marketing
that brands are already doing themselves, and
creating marketing materials and messages that
tap into the emotional experience associated with
a lifestyle, for example, capturing the thrill of diving
and connecting it to a dive watch.
A website is equivalent to a store and the product
pages are equivalent to a window display. Therefore,
many of the same rules of retail apply.
However, websites require extra attention because
unlike a visitor to a store, a visitor to a website
doesn’t have the benefit of a trained sales specialist
to greet, engage and provide them with great service
– the website must do all that and more.
My review was based on a structured assessment
of five categories: 1) standout, 2) engagement, 3)
rewards, 4) gift-giving and 5) ease of navigation,
with a possible total score of 100. Further details of
the methodology, and final scores, can be found in
Table A.
Stand out from the crowd
For a website to stands out it must be noticeably
different and distinguished from all others. It needs
to grab the browser’s attention and catch their eye.
For the purposes of this evaluation, I considered the
overall design and first impression.
Points were awarded for the use of images and
videos, as well as the appearance of products and
the information provided. Each site was scored out of
35. The results were disappointing. None were eyecatching
and there was little to differentiate
one from another.
The David Jones and Zamel’s sites were both
50 | November 2020

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WATCH WINDERS | WATCH BOXES | SAFES
JEWELLERY BOXES | TRAVEL BOXES
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STRATEGY FEATURE | Online Watch Sales
‘down’ at the time of assessment, and of the
remaining eight, the overall standard was poor.
Salera’s received the highest score of 17 and Myer
scored the lowest at six. Surprisingly, online-only
retailers fared no better than omnichannel stores.
Overall, retailers failed to capitalise on the
marketing investment made by the individual
brands and most didn’t even use the current
advertising images for the brands they sold.
“Of the sites reviewed, none were
visually exciting, inspiring, or
appealing. They simply presented
products like soldiers in a row,
compelling me to shop around for
the lowest price and the best
first-order discount.”
And considering video content is one of the most
effective ways to engage potential customers online,
only one out of 10 retailers used brand videos – and
even then, only for a few brands!
There can be no argument to the fact that a watch
is a lifestyle purchase. Despite this, lifestyle photos
were rarely used – and instead of promoting
recognisable brands that attract customers, some
websites used pictures of generic watches for their
key images.
Given that online customers are unable to hold a
watch or try it on, they at least deserve a 360-degree
view of the product – but many retailers simply used
the images provided by suppliers, and these vary
enormously in quality and style.
As a result, the websites showed a hotchpotch of
product images that ranged from 2D ‘pack-shots’ to
multiple images taken from different angles.
Even though virtual ‘try it on’ software is available
and used by other industries like sunglasses, watch
retailers are yet to adopt it.
The same scattergun approach appeared to
be taken when it came to product information.
Whatever happened to using a standard set of icons
with a reference chart? Do retailers believe that
online customers don’t warrant the effort?
7 out of 10
watches are
purchased
as gifts
60 per cent
of annual
retail watch
sales occur
in the eight
weeks before
Christmas
Of the sites reviewed, none were visually exciting,
inspiring, or appealing. They simply presented
products like soldiers in a row, compelling me to
shop around for the lowest price and the best firstorder
discount.
Engage the shopper
When a customer enters a store, they’re usually
greeted and engaged in conversation. This exchange
provides the opportunity to connect, learn more
about them, share knowledge, and then offer
products to meet their needs. It’s also a chance to
make a positive impression and establish a longlasting
relationship.
Although a website can’t replace the ‘human touch’,
it can be designed to deliver the same outcomes.
But this requires the ability to see life through the
eyes of your customers and to consider what value
you can add.
“Fewer people are buying watches.
But those who are, do so more often. It
makes good business sense to identify
these customers and understand their
reasons for buying; are they a collector, a
follower of fashion, or are watches their
preferred gift for loved ones?”
The effort made to engage customers is a clear
indication of whether a company is focused on
short- or long-term objectives. When engaged,
customers are more likely to have a positive
opinion and to return to the retailer.
Websites were given a score out of 30 for
engagement. Access to information that clearly
articulates the product’s benefits and helps with
decision-making is one way of engaging customers
– for example, water resistance, band adjustment,
benefits of ion-plating, and/or key materials and
manufacturing standards.
Chatbots, customer reviews, links to brand websites
and an active and informative blog are other ways to
engage with shoppers.
When it came to engagement, the results were
shocking. Once more, the David Jones and Zamel’s
sites were both down. Scores ranged from one
(Myer) to seven (Salera’s) out of 30, with online-only
stores scoring no better than traditional retailers.
While many sites allowed customers to search
according to construction material, none provided
any explanation. It was the same with water
resistance – with the potentially dangerous
discovery that most, if not all, sites featured watches
that appeared to be suitable for diving, but were not.
It’s hardly surprising that consumers are
confused when a respected retailer such as
52 | November 2020

DEPARTMENT
STORES
JEWELLERY
CHAINS
ONLINE
RETAILERS
Website Score of 100
Myer 18
David Jones
WEBSITE DOWN
Prouds 21
Shiels 29
Salera’s 34
Wallace Bishop 33
Zamels
WEBSITE DOWN
theiconic.com.au 24
timepiecestore.com.au 21
watchdirect.com.au 34
Table A: Each website was reviewed over a period of
three consecutive days; watch-specific pages for both
David Jones and Zamels websites were unavailable
for all three days, as shown. Each website was
assessed based on the categories of Standout,
Engagement, Rewards, Gift Giving, and Ease of
Navigation, with specific criteria within each category
graded on a score of 1–5, with 5 being ‘outstanding’.
Equal time was given to each retailer; the time taken
to assess the websites exceeded that of the average
online shopper.
Despite care taken to ensure accuracy, some features
may not have been accounted for (for example, loyalty
programs) due to a lack of visibility/poor design.
Wallace Bishop uses the following scale: 100M,
10M, 200M, 300M, 30M and finally 50M.
While many sites publish customer reviews
– neither Salera’s nor Myer appeared to have
any. Shiels was the only one to offer a reward
for reviews, however I challenge the logic of
combining a review of a product with a customer
service testimonial.
Rewarding customers
The definition of a reward is ‘a benefit received
after a specific action or behaviour, or gifts that
acknowledge and benefit people for their actions’.
To be effective, a reward must have value and a
direct link to the desired behaviour. Rewards are
a proven method of encouraging customers to
buy – and to buy more often. They also provide a
competitive advantage for one retailer over another.
Material goods are not the only rewards to which
consumers respond; acknowledging loyalty with VIP
client status/benefits as well as providing exclusive
additional services – such as advance notice of
sales events, free delivery, special discounts, and
access to privileged information – have proven just
as successful.
Websites were scored out of 10 with a maximum
of five for a loyalty program and five for providing
a gift with purchase or other exclusive offers.
It seems retailers are not keen to reward
customers with all sites scoring 0 – except for
Prouds and Wallace Bishop.
While both have VIP programs, they provided no
information on how to qualify or the rewards on
offer. How would you benefit from buying watches?
– they kept this to themselves.
Emphasis on gift-giving
It’s important to remember the primary reason
for buying a watch is gift-giving which is why
many brands invest significantly in packaging.
Simply showing the gift box for the brands they
sold would earn a retailer five points with another
five for offering gift wrapping, coming to a total
score out of 10.
Of all the sites, only Watchdirect.com.au made any
effort and scored 3. They showed the gift box of
some brands – but not all – and managed to get
some of those wrong! As for gift wrapping, not one
retailer offered that service, free or otherwise.
Structured for success
The ‘plan for success’ recommendation in the 2012
article is difficult to judge objectively. To do so I
developed a new metric – one that assessed the
structure of the website itself. Consideration was
given to ease of navigation, layout of products, and
brand identification, with a maximum score of 15.
Again, neither David Jones nor Zamel’s was
open for business, but the other eight sites all
scored well. Prouds scored the lowest with 9 and
Watchdirect.com.au scored the highest with 13.
As you might expect, the online stores scored
highest, but all were weak when it came to brand
identity. Simply having the brand logo appear
beside the watch and the brand name appear on
a separate line and in a different colour would be
a simple fix.
Concluding thoughts
Based on these results, it’s fair to say if any
retailers listened to the advice given in 2012,
they did not heed it.
While I’m accustomed to retailers believing they
know better, it’s surprising to see so many have
ignored the basic principles of retail, common
sense, and logic.
Unless they get serious and put some thought
and investment into how they sell watches online,
retailers may end up like the taxi industry after
the launch of Uber – fighting for their livelihood
because a growing number of consumers no
longer consider them relevant.
Fail to act and watch retailers could find
themselves competing against more and more
watch brands selling directly to consumers –
and doing a much better job of it than they do. .
GRAHAM HENRICKSON is managing director
of ID Results, a Sydney management consultancy
firm specialising in SMEs. Prior to founding
ID Results, he spent more than 20 years in the
watch industry. Visit: idresults.co

BEST OF BUSINESS
Retail Feature
I know you said
that you didn’t like
too much sparkle
but still wanted
something that
was substantial.
A ceylon sapphire
and diamond set
is a good place
to start. What do
you think? Did you
want more or less
sparkle?
What jewellers can learn from Goldilocks
When it comes to selling, there are certain behaviours that can stop sales before the process even begins. DOUG
FLEENER discusses how staff can ensure they’re establishing the right in-store environment to promote purchasing.
Except for her love of breaking and entering,
Goldilocks would have made a great
customer – she didn’t require any help and
she kept looking until she found exactly what
she wanted!
She didn’t give up if an item was too big or
too small, too hot or too cold, and just kept
going until she found something ‘just right’.
Alas, customers aren’t often like Goldilocks
– they’re not always sure what they like or
even what they dislike, and will sometimes
stop shopping altogether if they don’t
immediately find what they’re seeking.
That’s why I think one of the many ways to
add value to the customer experience is
to help consumers identify what they like
and dislike so as to end up with something
that’s just right.
Here are some tips to help retailers do
just that:
• Show two or three items together
– It’s actually easier for customers to
appreciate and differentiate between the
varying details, features and fits of multiple
products than they would if only viewing
one item at a time.
• Ask the customer what they like about
various products – A customer may tell
the salesperson that there are certain
things they like about a specific product but
it may not be quite the right one for them.
If this is the case, at least that customer is
telling the salesperson what they want.
• Ask the customer what they dislike
about various products – I once had a
salesperson tell me I shouldn’t ask what
a customer disliked because the customer
might not buy what they’re looking at.
I pointed out that if the customer doesn’t
like something, I doubt they are going to
buy it anyway!
I love to ask this question, almost as much
as I love to hear the customer answer,
“Nothing.” If there are things a customer
likes and can’t articulate what they don’t
like, then the salesperson has actually
found exactly what they want to buy.
• Managers should ask the sales team
how well they can help customers find
just the right products – If this isn’t
something the team practices on a regular
basis, take the opportunity to role-play with
each salesperson.
Honestly, ‘Can
I help you?’
should really be
eliminated from
a salesperson’s
vocabulary! If
customers want
help, they’ll ask.
If they don’t
staff should look
for ways to build
a connection
Once they feel comfortable, encourage
them to put it into practice. Don’t be
surprised how quickly they start finding
customers items that are just right.
Put an end to sales-limiting lines
One of the biggest challenges in retail is
the routine of it all. It’s fairly easy to fall
into the trap of doing and saying the same
things over and over, sometimes without
even realising what’s occurring.
This not only diminishes the customer’s
experience but these cliché opening lines
or sales questions also sound rehearsed
and that can directly impact sales.
Avoid, “Can I help you?” unless a customer
is clearly seeking assistance because it can
be an engagement killer. Honestly, “Can I
help you?” should really be eliminated from
a salesperson’s vocabulary!
If customers want help, they’ll ask. If they
don’t, staff should look for ways to build
a connection. Consider opening instead
with a greeting like, “Hello and welcome to
[store name].” Try to learn if they’ve been
in the store before and if they’re looking for
something in particular.
54 | November 2020

Best of Business | RETAIL FEATURE
Another one to avoid is, “Let me know
if you have any questions.” Salespeople
often say this after customers convey that
they don’t want or need help.
It’s okay to use this if a customer wants
some space but this is a statement that
limits a salesperson’s ability to reapproach
the customer later.
Of course, actively engaging with
customers is how staff add value to the
shopping experience and maximise sales
opportunities.
Consider saying, “I’ll check back with you
shortly. In the meantime, please let me
know if I can be of any assistance.”
Now, when staff re-approach, they’re just
following up on what they promised.
Of all the poor sales techniques and
limiting lines, “Will that be all?” and, “Did
you want to look at anything else?” cost a
retailer the most sales since they’re being
said to confirmed buyers.
The proper thing to do here is to continue
to recommend products until the
customer stops the sale.
Consider using a bridge statement to
keep the transaction alive. Good examples
include, “We have the perfect earrings
to wear with that pendant,” and, “You’re
going to want to pair that ring with this
bracelet.”
Talk with customers, not at them
One day I walked into a store and a staff
member asked, “How are you doing?”
I started to answer before realising that
she wasn’t talking to me.
She wasn’t talking to the couple
behind me either.
As it turned out, she was just talking at
people, mindlessly repeating, “How are
you doing?”
The more I shop, the more I notice that
people either talk with you or at you.
Outwardly, it looks the same but, as a
customer, you can feel the difference.
largest barriers to delivering a great
customer experience.
Staff are expected to greet everyone who
walks into the store so it is easy for them
to fall into the trap of talking at people.
Run through the following tips with the
team to ensure they’re conscious of the
need to talk with people and not at them:
• Make eye contact – There’s a big
difference between looking at people and
making eye contact
• Smile – Staff who make eye contact
and smile can’t help but make a positive
impression on shoppers.
There’s no need to force a smile because
it’s easy to smile naturally when making
eye contact with people
• Be personal – Staff who take the time to
learn one or two things about a customer
are well on their way to creating rapport.
Where are they from? Have they been at
the store before? If they have, what have
they purchased in the past?
• Acknowledge what people say –
Customers can always tell when a
salesperson is talking at them because
the salesperson doesn’t really care what
the customer has to say.
As an example, a hotel staff member once
asked how my day was going. For fun,
I said, “Not good. I lost my wallet,” to
which he replied, “Okay, have a good day.”
• Keep it fresh – I don’t recommend
‘getting fresh’ with customers! I do
recommend that staff keep changing what
they say and do with customers.
When we slip too deeply into a routine, we
slowly drift away from talking to people
and begin talking at them.
Don’t impede sales
Sometimes staff inadvertently do things
that make it harder for them to engage
and sell to customers, and which also
have a negative impact on the service
experience.
SERVICE
SUCCESS
Get the
timing right
Allow shoppers
to ‘decompress’
when they first
enter the store
Avoid cliché
lines
Open with a
greeting and a
question about
what they are
looking for
Listen
and learn
Don’t stick to
a sales script
or the same
old routine –
engage with
customers
Double up on
products
Show multiple
options and
ask for the
customer’s
opinion
Let them end
the sale
Continue
to serve
customers
until they
decide they
are finished
This often happens when helping a
customer find something specific. Staff
hold a product up and ask the customer,
“Something like this?” which requires the
customer to make a split-second decision.
While staff might find an item the
customer likes, they do also run the risk
of missing a product that they really love.
Instead, as previously mentioned, why
not select two or three items and present
them together?
This will at least give the customer time to
compare items, which will lead to a more
deliberate decision.
As an added bonus, this also substantially
increases the likelihood the customer will
buy multiple items.
Another way to impede sales is to
approach the customer too quickly. There
is a big difference between greeting
customers when they enter the store and
peppering them with questions within the
first five seconds of entry.
Most people need some time to
decompress and to take in the environment
– to get comfortable. Any salesperson who
tries to engage a customer too quickly is
certain to hear that dreaded shutdown
phrase, “Just looking.”
When a customer says, “Just looking,” it’s
usually a sign that staff did something to
impede the sale, such as asking, “How can
I help you?”
Asking if there will be anything else
is another way to impede sales. Yes, I
know I talked about this earlier but I’m
a broken record about it because it has
such a negative impact on the customer’s
experience and also affects sales.
Staff owe it to customers to continue to
show products and engage them until they
say they’re done, and not when staff ask if
they’re done.
It’s not the easiest habit to break but it’s
important that staff break it.
The more aware I became of this, the
more I realised how many people talk at
you, even in one-on-one conversations!
Routine and repetition is one of the
One way in which salespeople can impede
their own sales performance without
realising it is by rushing the customer’s
decision-making process.
DOUG FLEENER is president and
managing partner of Sixth Star Consulting.
Visit: dougfleener.com
November 2020 | 55

MARKETING & PR
BEST OF BUSINESS
Selling
XXXXX
XXXXXX
People are at the foundation of every great
business. In order for a team to achieve
the business vision, that team must be
surrounded with truly great people from top
to bottom.
Leadership teams know this but some aren’t
aligned on how to achieve it. Things get
muddy when it comes to deciding on the
correct actions and right time to successfully
execute those actions.
In a survey of business owners, 82 per cent
cited ‘people issues’ as their number one
frustration. That’s because teams don’t take
the time to define what it means to be a
great person within their team. If they have a
general idea of what a great person looks like
then the next challenge is to be consistent in
applying that definition to every role in the
company.
Business owners and managers who don’t
do this could find they have 22 different
people December issues at any is a given critical moment, month which for retailers – and even more so this year. With four weeks to go, now is the perfect time
is an extremely overwhelming feeling. To
to assess your store’s readiness – particularly if you have been closed or limited trading, writes DAVID BROWN.
overcome this, leaders must understand that
there are only two people issues, not 22.
Abraham Lincoln once said, “Give me six
RIGHT PERSON, WRONG SEAT
hours to chop down a tree and I’ll spend
The term ‘right person’ means an employee
the first four sharpening the axe.”
who fits into the culture and who truly cares
about By the what same the token, business a successful cares about. On
the December other hand, trading ‘wrong period seat’ can means depend that an
employee
as much on
doesn’t
the actions
match
you take before
the
December
role for which
1 as the
he
results
or she was
you
selected.
achieve
during December.
Maybe it was a good fit at one time but
This not only applies to the product
something has changed. Perhaps the role
you buy in but the other actions you
has grown or adapted in some way where it
take to prepare for your busiest month
now requires different skills and abilities than
of the year.
it did before. Now that an employee may
not Indeed, be able there to understand are multiple what different the business
needs, elements he or of she your may business no longer that want need the to
position be evaluated or perhaps and optimised lacks the skills in order to do what
is to required. make the imost of the holiday
shopping season.
None of this is news, of course. Yet
many retailers still seem to arrive at
XXXXXX
XXXXXX
Your December trading starts now
December almost by accident.
The pressing demands of running a
business – particularly in an unusual
and challenging year, full of unexpected
hurdles and changing regulations – can
result in many decisions being made
only at the point of no return.
That is, when things ‘must’ be done,
rather than ahead of time when they
can be dealt with most effectively.
Often, the strategy can be implemented
too late to gain the full benefit that
earlier decision-making and planning
would have provided.
Hopefully you’ve put much of your
planning into place – but if not, here’s
a checklist of things that you should
deal with now before time starts to work
against you.
Abraham
Lincoln once
said, ‘Give me
six hours to
chop down a
tree and I’ll
spend the first
four sharpening
the axe’
Product
• Inventory levels – How much product
will you need to operate effectively over
this period?
• Deadlines – What is the cut-off date for
reorders and special customer orders?
• Spares – What extras will you need of
fast selling product so you don’t run out?
• Merchandising – How will the store
look over the holiday season? What
product will be placed where? When
will you change it?
• Pricing – Do you need to reprice any
product to reflect current replacement cost
given the increase in gold and silver prices?
People DAVID BROWN is
co-founder and business
• Roster – Have mentor you with determined Retail Edge who will
be working when? Consultants. Do you Learn have More:
retailedgeconsultants.com
56 56 Jeweller | November September 2020 2018

your best staff on the most important
product counters and at your most
profitable times?
• Training – Is there any additional sales
training you need to put in place? Are your
staff aware of any new items or items you
plan to promote?
• Meetings – When will you have staff
meetings? What is the agenda? How will
you keep your staff focused during this
all-important month?
Promotion
• Marketing budget – How much will
you spend on promotion? Where will this
money be spent? What product and offers
will you use to bring in customers?
• Targeting – Not all customers are
equal. How will you be targeting your best
customers to get them to spend this year?
Will you be running any special
promotions or evenings for them?
Peripherals
• Packaging – Have you ensured you have
sufficient packaging, wrapping paper and
other essentials to get you through this
holiday period?
• Repairs – If repairs are an important
part of your business, have you set a
deadline for when you won’t promise
completion before December 25th?
• Cashflow – This time of year can be a
drag on bank balances. Have you planned
when receipts will come in and when
payments for December product will have
to be made?
• Cleaning – This is important for both
product and the store. Plus, change out
old lightbulbs, ensure signage and tickets
look their best, put decorations in place
and select seasonal music
Problems
• Product – The best laid plans can
still have problems. What contingency
Stock up and
stock smart
Assess your
inventory,
anticipate
future needs,
and define your
deadlines
Plan your
promotions
Set your
marketing
budget and
strategy
Write the
roster
Determine
which staff
members will
be working
when, and hold
any necessary
training
sessions
plans do you have if popular items aren’t
delivered or customer orders get delayed?
• COVID-19 – Do you have a plan in
place should there be an outbreak?
Would customers feel more comfortable
knowing you are prepared for every
eventuality?
• Illness – What if something happens to
a staff member? What if you are unable
to go into work yourself? Do you have a
back-up plan to cover for this eventuality?
A successful December starts with
successful preparation.
The better you are organised, the less
stressful and more profitable your
December trading period will be.
DAVID BROWN is is co-founder
and business mentor with Retail
Edge Consultants. Learn more:
retailedgeconsultants.com
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BUSINESS
Management
How to solve the productivity puzzle
Many successful people attribute success to their ability to focus their time, effort and energy but choosing
the right tasks for the moment is a big part of the productivity puzzle. DALE FURTWENGLER reports.
On any given day, small business owners
are faced with a variety of challenges. These
may include any and all of the following:
enhancing existing customer relationships,
attracting new customers, and anticipating
customers’ changing needs.
Add to that evaluating competitors’
product launches/price changes,
identifying new markets, improving
productivity, improving employee morale,
attracting/retaining talent, and dealing
with regulatory issues.
The list is endless – and the problem
for business owners, especially
traditional retailers, is that no-one can
focus on all of these at once so how
does one choose?
Focus on urgency
Some people base their choice on
urgency. Is the business losing top talent?
Are sales languishing? Has the business’
primary market become a commodity
market? Is the business losing its most
profitable customers? The problem with
urgency is that it’s about reacting to
situations, scrambling to maintain the
status quo. This means it’s not a great
long-term strategy.
Focus on enjoyment
In the absence of any emergency,
business people are likely to choose to
work on the things that interest them
the most.
Often this means they will delegate
less-pleasant tasks to others – but this
should not exempt them from monitoring
delegated work or applying strategic
thinking in those realms.
Focus on rotation
One method that works well is to set
aside time each week to focus on various
aspects of the business. Devote some
time to the following tasks:
• Evaluate your customer base – Have
you contacted customers recently? Have
When you allow
your mind to
work on what
it wants to
address, you not
only complete
that task more
quickly but also
find it easier
to focus on the
scheduled items
when you return
to them
there been any problems that surfaced
from a failure on your part to craft a
solution to a customer problem?
Have any customers indicated an interest
in product? Have any requested help with
new issues?
• Identify new markets – Have you
received requests for new products or
services? Are there new markets you
should be addressing?
What progress have you made in
approaching markets you’ve identified
but not yet penetrated? How effective has
your approach been so far?
• Improve productivity – How can you
streamline the processes involved
in marketing, selling, producing and
delivering your products? Are you
continuing to monitor your performance?
The quicker you deliver a solution to your
customers, the quicker they get a return
on their investment with you.
58 | November 2020

PROACTIVE
POINTERS
Set aside
time each week
to evaluate
different parts
of the business
Focus on
assessing: your
customer base,
opportunities
and challenges,
efficiencies,
and staff
Be flexible
– if you are
procrastinating
one task, move
on to another
and return to
the first later
• Monitor staff morale/productivity – Are you
monitoring employee productivity to find early
indicators of morale issues?
Are you asking staff for ideas of how the business can
improve performance and speed while increasing
customer satisfaction?
It’s wise to put these sections into a weekly calendar
– but don’t feel the need to be rigid about scheduling.
It’s perfectly fine to allow for movement within the
week, but try to avoid allowing the sessions to slip
into subsequent weeks as this readily translates into
a habit of deferring work.
Focus on flexibility
Retailers should allow for flexibility during their
weeks for a variety of reasons. Firstly, if energy levels
are low on any given day, owners and managers may
experience a diminished ability to concentrate.
If so, opt for some ‘mindless’ tasks that need to be
completed and postpone the truly important work for
the following day. Prepare for these tasks by hitting
the sack early that evening to ensure you have the
energy to tackle important jobs the next day.
Another reason to maintain a flexible schedule is to
allow yourself the opportunity to flick between tasks
based upon how you feel at the time. There are days
when you might have scheduled blog writing time but
instead stare at the screen for five fruitless minutes.
Whatever the reason for your inability to deal with the
issue at that moment, it makes sense to shift your
focus to the issue your mind wants to address.
In other words, don’t fight nature, as this is a futile
pursuit that leads to a general lack of productivity.
Interestingly, when you allow your mind to work on
what it wants to address, you not only complete that
task more quickly but also find it much easier to
focus on the scheduled items when you return
to them.
This simple approach will not only help you ensure
you’re touching all the bases in your business each
week but also ensure you’re pre-empting many of the
issues that affect business owners who only deal with
those based on urgency.
Now go and focus!
S E CUR E
E A RRI NG B ACK S
P r o u dly d e sig n e d a n d
m a n u fac t u r e d in the U K
S A F E
S ECU R E
NON-S LIP
H YPO-A LLERGE NIC
C OMFOR T ABLE
DALE FURTWENGLER is the founder of
Furtwengler & Associates. Hs is a speaker,
author and business consultant. Visit:
pricingforprofitbook.com
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02 9417 0177 | www.dgau.com.au

BEST OF BUSINESS
Marketing & PR
Data matters - satisfaction versus loyalty
Customer satisfaction is not the same as customer loyalty but if customers are happy, does it matter
what retailers call it? Yes, says LISA MASIELLO, who argues that the terms aren’t interchangeable.
Customer satisfaction is simply how
satisfied a customer is with a company’s
products and services. It takes into account
all interactions that customer has had with
the company and how that customer has
been treated along the journey.
Customer satisfaction is normally based
on data collected in surveys, as it is
dependent upon customer feedback.
For this reason, customer satisfaction
can be fleeting and fickle – a customer
can be satisfied today and unsatisfied
tomorrow.
This is because customers re-evaluate
their satisfaction after every individual
interaction they have.
An online experience may be great but a
later phone conversation may be horrible,
which changes their response to the
question of whether they are satisfied.
Customer satisfaction can also provide a
false sense of security to your company.
For example, cable television customers
who have only one service provider in
their area may say they are satisfied;
however, they might also switch
providers if a competitor enters the
market with a lower price.
Defining customer loyalty
Customer loyalty refers to how likely a
customer is to buy additional products
and services from a company.
It should be included as one of a
company’s metrics, showing how
much an existing customer has
purchased and over what period of time
– namely, the specific items purchased,
the sale price of those items, potential
future value and more.
Customer loyalty is not subjective, nor is
it reliant on feedback.
It can be measured with real numbers
and actually helps drive revenue and
company growth.
Those Facebook ‘likes’ that companies
love so much are not a measurement of
customer loyalty.
In fact, marketers refer to Facebook likes
as a ‘vanity’ metric.
Customer
loyalty is not
subjective, nor
is it reliant on
feedback. It can
be measured
with real
numbers and
actually helps
drive revenue
and company
growth
There is no guarantee a customer who likes
your page will buy more in the future.
Bending the data
Since customer satisfaction is often
measured by sending out surveys, months
can pass in between each input of data.
A quarterly survey distributed in January
might return a very high satisfaction rating
but a drop in customer service in February
might not reveal itself until the next survey in
April, if at all.
Meanwhile, dissatisfied customers went to
competitors in February and March and noone
knew why.
This doesn’t mean surveys are useless.
When completed after specific personal
interactions, they can be very insightful.
One example is immediately after an
interaction with a technical-support person
or customer-care representative, when
satisfaction surveys give immediate insight
into service expectations and delivery.
One key benefit of more tailored or
customised surveys is that positive changes
60 | November 2020

DECODING
THE DATA
Profile your
most loyal
customers
by analysing
purchasing
histories
Develop your
marketing and
PR campaigns
to target loyal
or near-loyal
customers
Issue tailored
satisfaction
surveys
immediately
after customer
interactions
Use insights
from surveys
to assess areas
of the business
that could be
improved
to business operations can be identified and
made more quickly.
Bottom-line importance
Customer loyalty is more important to
a company’s bottom line than customer
satisfaction. Firstly, loyal customers are not only
willing to buy more but also tend to be less price
sensitive, so they are more likely to pay full price
because they understand the additional value
they receive from your company.
Secondly, acquiring new customers is more
expensive than keeping existing ones. Selling
more to existing customers increases revenue
and decreases acquisition costs.
Thirdly, long-term customers don’t just
recommend businesses to their friends
and family; they become brand advocates,
influencing much larger circles of shoppers via
social media.
Finally, long-term customers understand the
ins and outs of your business and your products.
Long-term customers reach out less frequently
and put fewer demands on customer care and
billing departments.
Since customer loyalty is measured by looking
at the purchasing habits of individuals, it is easy
to use this data to create a profile of your most
profitable customers.
This can then be used to develop focused
marketing programs to prospects who are more
likely to become customers, remain customers
longer and buy higher-priced products.
Watches: Ellie II
The last word
Understanding the differences between
satisfaction and loyalty is important.
Customer satisfaction can provide high level
insights into the health of a business and, when
used strategically, can identify specific areas of
the business that are doing well and areas that
could be improved.
Customer loyalty data, including actual purchase
and revenue numbers, is critical for knowing
where a business stands today and where it will
likely be in the future.
LISA MASIELLO is an award-winning tech
industry marketing strategist, start-up
advisor and founder and CMO of Techmarc
Labs. Visit: techmarclabs.com.
Proudly distributed by
02 9417 0177 | www.dgau.com.au

BUSINESS
BEST OF BUSINESS
Logged On
XXXX
this jeweller is
hosting a question and
answer video session of
their biggest diamonds
and demonstrating how
different carats look
on the finger. Maybe I
can ask about seeing
a 2-carat emerald cut
diamond live if they
have any in stock? i’ve
always wanted to know
how big they’d look...
Turning online ‘lurkers’ into customers
Social media can annoyingly sometimes feel like a one-way conversation. KARYN GREENSTREET discusses
how to encourage commentary from customers in order to boost engagement and ultimately sales.
How many of you have ‘friends’ who scroll
through your social media posts but never
actually contribute to the conversations?
This may be acceptable – albeit a little
frustrating – in a personal setting but
it’s anything but ideal in a business
situation, especially when retailers are
using social media to ask for consumer
opinions to help steer the direction of
a product purchase.
Who are these silent friends and followers
and how can businesses get them talking?
When my business made the leap to the
internet in the mid-1990s, we noticed that
every time there was one person who was
interacting in our message forum there
were another 10 who were logged on,
reading the message threads but never
interacting.
Back then, we called them ‘lurkers’
– people who watch but don’t participate
in discussions.
Fast-forward almost 30 years and we find
that the lurker ratio of 10:1 still exists today
in online message forums, video classes,
webinars and any other place where
groups congregate.
In some places, especially Facebook,
Twitter, Instagram and other social
media apps, the lurker ratio is closer to
100:1 – for every person who participates,
there are 100 people just reading and
absorbing the conversation.
There are all kinds of reasons why people
don’t comment on platforms like Facebook
– perhaps they’re busy; perhaps they
have nothing to add; perhaps they’re not
comfortable with public commentary.
Most users are also accessing the
internet through mobile devices,
which are not conducive to typing long,
thoughtful responses.
I love when people leave comments on
my blog and when they interact in my
classes. Conversation brings value
and I love to hear people’s feelings and
experiences as well as share knowledge
and answer questions.
For businesses, the aim of online marketing
is to build connections that can be used as a
Too many small
businesses hide
behind their
content – they
post links to
articles on
Facebook but
they never share
any of their
own story
start point for establishing relationships with
existing and potential customers.
Being aware of the lurker ratio when using
social media and other online platforms
for marketing will help retailers gauge the
quality of connections and relationships, all
with an end goal of improving sales.
Here are some quick tips for boosting your
online conversations’ sales power.
Be visible
Too many small businesses hide behind
their content – they post links to articles on
Facebook but they never share any of their
own story.
I don’t mean clickbait stories like “I used
to live in a box but now I live in a mansion”;
I mean everyday stories about the business
and its staff.
What did the team do today? Did a staff
meeting or a group-building exercise just
take place? Give audiences a window into
the ‘personal’ side of the business.
Comment on other people’s posts
It’s a two-way street. If all a business does is
62 Jeweller September 2018
62 | November 2020

RULES OF
ENGAGEMENT
1. Share your
business’ story
to build a personal
connection with
your audience
of potential
customers
2. Open a dialogue
by asking
questions and
commenting on
others’ posts
3. Build credibility
by participating
in online groups
and forums
related to your
industry
4. Make it easy
to share your
content by
encouraging
‘likes’, adding
links in blog
posts, and
including a ‘share’
button
5. Acknowledge
your audience –
respond to their
comments and
questions
post articles and thoughts, never responding
to someone else’s blog posts and
Facebook posts, then why should anyone
communicate with it?
While it can be difficult for retailers to
engage in conversations with consumers,
there’s nothing wrong with contributing to
other industry group forums.
This helps to build credibility amongst
peers and also provides an opportunity to
learn from others. Who knows? Retailers
may then receive comments from industry
stakeholders on their own content.
Ask and you shall receive
Remember to ask questions. Instead of
simply saying, “Look at this new pearl
necklace that landed in store,’ consider
phrasing it as, “What do you think of this
new pearl necklace that landed in store?”
This invites responses and comments.
Engagement isn’t always vocal
In addition to making comments,
engagement can involve liking, sharing
and clicking. If using a blog, be sure to
add links in blog posts to other related
posts. Someone reading a blog post
and then clicking on a link is showing
engagement too.
Remember to include ‘sharing’ buttons on
blogs so readers can engage by sharing
content with others. On social media,
actively encourage others to share posts by
including a ‘please share’ message.
Respond back
This may seem obvious but it doesn’t hurt
to be reminded. When someone comments
upon a blog post or social media post,
please acknowledge it by providing a prompt
response. Those engaging in conversation
need to know they have been heard.
Retailers who embrace this advice should be
well on their way to improving their lurker
ratio and consumer engagement; however,
if the business’ lurker ratio is still 100:1, take
heart as it still means that there are people
reading what has been written.
Bear Grylls Survival
3740 Master series
More on luminox.com.au
KARYN GREENSTREET is president
of Passion for Business, specialists
in small business consulting. Visit:
passionforbusiness.com
Proudly distributed by
02 9417 0177 | www.dgau.com.au

My Bench
David Hollanders
Wild Trout Designer Jewellers, Sydney, NSW
Age 53 • Years in Trade 37 • Training Diploma in Jewellery Manufacture from Bradford & Ilkley College, Yorkshire • First job Goldsmithing apprenticeship at
Roy’s Jewellers, Lancashire in 1983 • Other Qualifications City & Guilds Jewellery Manufacture certification, Fellow of the Gemmological Association of Great
Britain, and Diamond Setting Diploma from Sir John Cass College, London
SIGNATURE PIECE
GOLD AND DIAMOND BANGLE
PRIVATE COMMISSION
This bangle was a labour of love for a special lady who had
recently been bereaved, losing the love of her life. The gold used
was hers, recycled, and the diamonds came from a variety of
jewellery pieces that either belonged to her husband or were
bought for her by him. I separated the diamonds by colour and
pavé set them in sections. She wears it all day, every day and we
recently made something similar for her daughter.
4FAVOURITE GEMSTONE I can’t go past the
vibrancy of a beautiful ruby.
4FAVOURITE METAL 18-carat yellow gold. What’s
not to love about a simple alloy that is both a
pleasing colour and is very accommodating?
4FAVOURITE TOOL Burnishers – how pleasing
it is that two metals rubbed together can give a
beautiful reflective finish!
4BEST NEW TOOL DISCOVERY A few years ago,
I discovered computer-assisted design (CAD). To
start with it was difficult to learn, but over the
years I’ve adapted my traditional skills to this
modern medium.
4BEST PART OF THE JOB Pleasing people.
4WORST PART OF THE JOB Quoting.
4BEST TIP FROM A JEWELLER Do it once,
do it right.
4BEST TIP TO A JEWELLER Do it once, do it right!
4BIGGEST HEALTH CONCERN ON THE BENCH
Dust is the biggest concern.
4LOVE JEWELLERY BECAUSE It never stops
surprising me. I started my apprenticeship in
goldsmithing at the age of 16, but I wasn’t ready
for the discipline required for the role – and I
was given the boot after less than a year! After
trying a couple of other jobs, including a trainee
stonemason, I decided that I really wanted to
pursue my passion in jewellery making.
After graduating from college in 1986, I landed
a job at the Diamond Boutique in Maidenhead,
Berkshire as a jobbing jeweller, progressing to
mounter. Then, under the guidance of Anthony
Hilbourne, I gained qualifications in gemmology,
diamond grading and diamond setting.
Even today, there is always something new
to discover – even though in a busy modern
workshop, we rarely get time to step back
and reflect!
64 | November 2020

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OPINION
Soapbox
It’s time to build a cross-generational bridge
The jewellery industry is facing the challenge of generational change – and it’s a case of evolve
or get left behind, writes RICHARD MAYO.
The jewellery industry goes backs centuries
and is an industry that is very much set on
relationships and tradition. However, just
because the jewellery industry is traditional,
that doesn’t mean our systems and
processes have to be.
Over the last decade there has been a
major shift in technological and digital
capabilities which has changed the way
consumers interact – and expect to interact
– with businesses.
I recently joined my family’s 34-year-old
business, Jewellery Services, which is New
Zealand’s largest jewellery workshop. We
have been providing quality services to the
jewellery trade since 1986.
What will happen to those decades-old
relationships when that generation retires,
and a cross-generational handover occurs?
How will the next generation lead these
businesses if they can’t rely on these
old relationships?
It’s not just the way of doing business that
is traditional; the operations and processes
in many jewellery businesses are equally so.
Coming from the fast-paced world
of consumer electronics, I’ve been
surprised that some businesses almost
seem reluctant to change or to invest in
technology. In some instances, we are
still receiving invoices printed on a dotmatrix
printer!
I’ve been
surprised that
some businesses
almost seem
reluctant to
change or
to invest in
technology – in
some instances,
we are still
receiving
invoices printed
on a dot-matrix
printer!
just the current leadership, who are
approaching retirement, and making things
easier for the next generation.
Over the past three months, during the
COVID-19 period, we have been working
hard on upgrading our core systems to
enable us to provide a higher level of service
to the jewellery industry.
We have merged two legacy systems into a
single, cloud-based solution. This enables
us to store more information about our jobs,
reduce pricing complexity and automate
many parts of our day-to-day workload.
It was a fundamental change, but it has
given us a solid foundation to build up our
business over the next few years.
Our story is similar to many in the jewellery
industry: traditional, family-owned and
operated, and built by relationships that
have been forged over decades.
I knew very little about the jewellery industry
before joining it, apart from stories told over
the kitchen table.
However, my background in transformation
– that is, identifying opportunities for
businesses and bringing them to fruition
– allows me to see the challenges our
industry could face if we don’t start
planning and evolving.
The jewellery industry is mostly led by
my father’s generation and there is, for
many, a question mark about who will lead
going forward. What will the succession
look like in family businesses, or when
those businesses are sold?
This isn’t about change for change’s sake,
this is about acknowledging that a key
responsibility of any business owner is
to ensure they, and their business, don’t
get left behind.
Millennials are digital-first and digitalfocused,
in business as well as in their
everyday lives and shopping habits, and
industry suppliers need to adapt to suit
that reality.
These Millennials are the future owners
of our businesses and will demand from
their industry partners the same level of
interaction they get in their personal lives.
My focus at Jewellery Services is about
making the whole process of servicing the
jewellery industry user-friendly, simple,
and efficient, with more of a digital focus
and building those relationships – beyond
That’s a lesson that other businesses
– particularly small, family-owned
enterprises – can take away and apply
to their own operations. There are real
benefits to investing in and upgrading the
technology you use every day.
Retailers have had to evolve over the last
decade and are now continuously innovating
to meet consumers’ demands and needs.
The reality is that the supplier side of the
industry has some catching up to do. So,
are you and your business ready for a
generational change?
Name: Richard Mayo
Company: Jewellery Services
Position: Director
Location: Auckland, NZ
Years in Industry: 1
66 | November 2020