Jeweller - December 2020

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY DECEMBER 2020
Survival lessons
ESSENTIAL BUSINESS TIPS LEARNED
FROM A YEAR OF UPHEAVAL
Full state of play
A COMPREHENSIVE REPORT INTO THE
AUSTRALIAN JEWELLERY INDUSTRY IN 2020
Show stoppers
STANDOUT JEWELLERY PIECES
FROM LOCAL TALENTS

#1
FOLLOW THE
LEADER
Reader
PUBLICATION
GLOBAL
RANKING
TIME SPENT
PER VISITOR
1 JCK 80,897 1:58 USA
COUNTRY
There are many ways to measure #1, however; when
it comes to media, there’s only one way... readership.
2 Jeweller 89,405 32:07 Australia
3 National Jeweller 143,232 1:58 USA
4
Instore Magazine 175,059 2:09 USA
5 Rapaport Magazine* 193,212 1:51 USA
6 Idex* 259,946 2:44 Israel
7 Jewellery Net Asia 325,766 2:33 Hong Kong
8 Professional Jeweller 413,298 1:48 UK
9 The Jewelry Magazine 501,729 1:09 India
10 Diamond World* 629,210 1:59 India
Not only is Jeweller the #1 magazine in Australia
and New Zealand by far, we are now 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 industry publication in the world,
just behind the US’s JCK magazine.
Better still, according to Alexa, the daily time spent
on jewellermagazine.com averages 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 22 November 2020
* Denotes magazines connected to diamond trading platforms
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY

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Discover the new Christmas Collection from 29 th October 2020
Available in Pandora concept stores, participating stockists and pandora.net

DECEMBER 2020
Contents
This Month
Industry Facets
13 Editor’s Desk
18 Upfront
20 News
32 Jewellers Showcase
24
27
28
31
64
66
10 YEARS AGO
Time Machine: December 2010
NOW & THEN
Fairfax & Roberts
MY STORE
Rohan Jewellers
LEARN ABOUT GEMS
Lapis lazuli
MY BENCH
Leon Raper
SOAPBOX
John Rose
35 STATE OF THE INDUSTRY REPORT
The full picture
Jeweller explores the evolution of
the watch and jewellery industry
over the past 10 years.
CHAIN STORES
The demise of fashion jewellery chains
Fine jewellery demonstrates unexpected resilience
Mid-sized jewellery chains have mixed results
2020 State of the Industry Report
37
46
52
PART I: CHAIN STORES
Chain reactions
PART II: BRAND-ONLY STORES
Brand and deliver
PART III: BUYING GROUPS
Strength in numbers
Better Your Business
BRAND-ONLY STORES
Huge increase in brand-only stores over past decade
International luxury groups make their mark
BUYING GROUPS
Shake up for the buying groups in 2020
How will they fare in the future?
58
60
61
62
63
BUSINESS STRATEGY
SUE BARRETT reflects on the lessons of 2020 for business owners.
SELLING
RICH KIZER and GEORGANNE BENDER share six top tips for boosting sales.
MANAGEMENT
It’s time to organise your thinking for 2021, writes DAVID BROWN.
MARKETING & PR
WILLIAM COMCOWICH advises on how to determine your campaign’s success.
LOGGED ON
Instagram Stories require preparation and planning, writes SIMON DELL.
31 LEARN ABOUT GEMS
Lapis lazuli
4Explore the enduring appeal
and fascinating history of
this deep blue mineral.
FRONT COVER Peter W Beck is
synonymous with wedding rings
of the highest quality, combining
expert craftsmanship with the
finest materials to create.
December 2020 | 11

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As you meet the demands of this
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Visit Stuller.com/Holiday.
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Editor’s Desk
Listening to the heartbeat of the jewellery trade
What happens when the Australian jewellery industry undergoes an intense medical examination?
ANGELA HAN checks the vitals and shares her findings.
Every word that could describe the global
pandemic has already been written.
The events of 2020 will be recorded in
history’s pages as a central turning point in
the way we view the world and the things
that we value.
Undoubtedly, it’s been an extraordinary year,
one that deserves introspection and analysis
as it draws to an end.
If you wanted to know what the Australian
jewellery industry looks like today in the midst
of an economic crisis, then you’re in luck.
By sheer coincidence, this month is the
10-year anniversary of our 2010 State of
the Industry Report (SOTIR). In a way, this
2020 update happens to be our contribution
to the pages of history.
A decade ago Jeweller researched and
compiled the first-ever comprehensive
analysis of the Australian jewellery industry;
we analysed the core segments of the trade
from fashion and fine jewellery stores to
chain and brand-only and flagship stores.
It was an exhaustive investigation into
the status and health of the trade, which
revealed some very interesting insights.
Much like a medical examination, data was
meticulously recorded and every aspect of
the industry was analysed in-depth.
Indeed, some of the findings of the
2010 report flew in the face of what was
considered conventional wisdom or
common knowledge about Australia’s
retail jewellery market.
In other words, a lot of what was believed
was wrong or, at least, not supported by the
research. Debunking ‘conventional wisdom’
is part of the media’s role.
While our 2020 State of the Industry Report
reviews many aspects of the market, at the
beginning of this year it was our intention
to include an analysis of the most important
industry category - independent jewellery
stores.
However, the COVID pandemic not only
dramatically affected our ability to undertake
the research but, more importantly, the
resulting economic crisis could, and has,
had a major impact on jewellery stores to
the extent that some have closed.
For that reason, we decided to research
and quantify the number of independent
jewellers after the 2020 Christmas trading
period to better compare the results.
As you will discover, our 2020 SOTIR reveals
that fine jewellery chains have remained
resilient over the ensuing 10 years.
In 2010 we reported on the rise of fashion
jewellery chains, however, a decade later
they are all but gone.
While 63 per cent of fashion jewellery chain
stores closed, there was only a 13 per cent
reduction in the number of fine jewellery
chain stores.
In fact, of the seven fashion chains that
existed in 2010, we discover today that six
have collapsed and/or closed their doors!
While the past decade has resulted in the
demise of fashion jewellery chains, back
in 2010, we identified 128 brand-only and
flagship stores, however today there are
220 - a 72 per cent increase in presence.
What we found surprising is the number
of high-end ‘prestige’ brands that have
expanded into Australia courtesy of
international luxury good conglomerates.
The Australian jewellery industry in 2010
was beginning to recover from the global
financial crisis (GFC), which hit the world
from 2007-2009.
Interestingly, CommSec’s 2010 Economic
Insights report announced that the sales of
jewellery, watches, and clocks rose 10.3 per
cent, while spending across other industries
decreased during the same period.
Spending on tools and equipment was down
6.7 per cent, while air travel (4.4), gambling
(2.5) and cigarettes (0.8) all suffered.
Even spending on essential goods and
services was down against jewellery!
A decade later in the midst of a global
pandemic, LVMH stock prices have reached
its highest trade ever at 496.90 EUR since
it first listed on the stock exchange in 1990,
while Pandora and Tiffany stock prices also
continue to soar.
Hong Kong retailer Chow Tai Fook is
trading better than this time last year
and both Michael Hill International and the
The 2020 State
of the Industry
Report update
happens to be
our contribution
to the pages of
history.
US chain, Signet Jewelers, are steadily
recovering since the huge sell off in the
depths of the crisis.
On home soil, jewellery management
consultancy firm Retail Edge released
positive reports of increased sales across
its 450 customers in Australia and NZ.
Reports released since June indicate
that sales have been bouyant despite
the pandemic.
Indeed, there was a 23 per cent increase
in September sales compared to last
year, despite Victoria remaining in Stage 4
lockdown. October’s report indicates that
sales were also up 20 per cent, revealing a
positive growth trend which is predicted to
continue through the holiday trading.
In amidst the chaos, a pattern appears
to be emerging.
Like discovering a speck of gold at the
bottom of a murky pan, turbulent times
appear to be an opportunity for jewellers
who confront challenges with open eyes
and a positive attitude.
What is fast is fleeting, but what is
meaningful can last forever.
Humans will always yearn to be
surrounded by things that are expressive,
beautiful and unchanging, a sentiment that
appears to be magnified during times of
uncertainty.
Be it through an economic crisis or
through a pandemic, people don’t stop
creating memories, celebrating milestones
and falling in love.
A glance back at the past decade has
revealed this insight: consumers have
chosen jewellery, through times both
thick and thin. As long as there is a deep
human experience to celebrate, there will
always be a purpose for jewellers.
To ensure you remain up to date with these
insights and research reports, subscribe
to our eNewseletter and connect with us
to keep track of vitals and listen to the
heartbeat of the industry.
Angela Han
Publisher
December 2020 | 13

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Upfront
#Instagram hashtags to follow
Alpha Order
#blackopal
383,157+ POSTS
#dreamring
152,666+ POSTS
#minimalistjewelry
333,526+ POSTS
#morganite
193,583+ POSTS
Stranger Things
Weird, wacky and wonderful
jewellery news from around the world
‘Green’ diamonds
#fancydiamonds
48,961+ POSTS
#gemlover
126,476+ POSTS
#jewellerystyle
37,848+ POSTS
#necklaces
5.2 MILLION POSTS
#tanzanite
411,402+ POSTS
#whitegold
2 MILLION POSTS
HISTORIC GEMSTONE
Mogul Mughal Emerald
Weighing 217.80 carats, the Mogul Mughal is one of the world’s largest emeralds.
Originally mined in Colombia, it was likely transported to India by Spanish traders.
Carved with a Shi’a Muslim prayer, the gemstone bears the date ‘1107 AH’ (1695–1696
CE), dating it to the reign of the last great Mughal emperor, Aurangzeb. Scholars
believe it belonged to one of his courtiers. US mineralogist Alan Caplan acquired the
emerald some time in the 20th Century; after his death, it was sold by Christie’s in
2001 for £1.5 million. Today, it is part of the Museum of Islamic Art in Doha, Qatar.
Celebrity Style
4 Actress Tracee Ellis Ross (inset)
showed off her impeccable jewellery
taste at the People’s Choice Awards,
donning a gorgeous set of statement
earrings from Schiaparelli (above).
Inspired by the surrealist art of Jean
Cocteau, the chandelier set features
brass, crystal, and pearl.
4UK clean energy entrepreneur
Dale Vince claims to have created
the first ‘zero-impact’ lab-grown
diamonds. The stones are created
in factories powered by wind and
solar energy, using carbon captured
from the atmosphere. “Making
diamonds from nothing more than
the sky, from the air we breathe, is a
magical, evocative idea – it’s modern
alchemy,” Vince said. “We don’t need
to mine the Earth to have diamonds,
we can mine the sky.”
Ear’s the thing
4US jeweller Jules Kim has
launched jewellery designed to be
slipped onto wireless earphones,
also known as ‘ear pods’. Kim was
inspired by watching athletes
training in New York City. “These
pieces reflect... the future of
jewellery style,” he said. The hoops
and studs are available in 14-carat
white or yellow gold and in silver
and gold vermeil, with 2-carat
diamonds.
Digital Brainwave
The One Small
Step program
also includes
practical guides
to digital tools,
as well as a free
consultation with
Navii Digital.
4Australian technology start-up Navii
Digital is offering a free program called One
Small Step to assist SMEs in adapting to
the digital environment. It includes a series
of webinars featuring representatives from
companies like Facebook and Xero, as well
as SME owners discussing their experiences
with digital marketing and e-commerce.
Liz Ward, founder Navii Digital, said,
“Small businesses tell us they need to see
businesses like theirs, and the benefits and
the costs associated with digital tools before
they adopt them.”
Top Product
4The Pink Kimberley Classic
Collection showcases shimmering
halo and double halo designs set
with stunning pink diamonds from
the iconic Argyle Mine.
Thieves exposed
4UK police have busted a ring
of thieves responsible for a spate
of high-profile celebrity burglaries
after a Romanian call girl posed with
a stolen necklace in a social media
photo. The gang raided the London
homes of billionaire heiress Tamara
Ecclestone and Chelsea FC manager
Frank Lampard, stealing jewellery
and cash valued at £25 million. The
Mirror newspaper reports that
the call girl was part of the gang’s
‘supporting cast’.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
Published by Befindan Media Pty Ltd
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | Subscriptions & Enquiries: info@jewellermagazine.com
Publisher & Managing Editor Angela Han angela.han@jewellermagazine.com • Assistant Editor Arabella Roden arabella.roden@jewellermagazine.com
Digital Co-ordinator Trish Bucheli-Preece trish@jewellermagazine.com • Advertising Toli Podolak toli.podolak@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.

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COMPANY DIRECTOR
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www.colonialgemstones.com

News
In Brief
End of an era: Argyle Mine officially closed
Russian pink diamond
sold for $27 million
4 The Spirit of the Rose – the largest-ever
vivid purplish-pink diamond to appear at
auction – has sold for $US26.6 million at a
Sotheby’s event in Geneva. The 14.83-carat
stone, mined by Alrosa in Russia, is
internally flawless and was named after a
famous ballet. An anonymous telephone
bidder won the auction, paying the highestever
price per carat for a purple-pink
diamond, according to Sotheby’s.
Man jailed for $3 million
Melbourne robbery
4Karl Kachami, one of two men who
pleaded guilty in relation to the April
armed robbery of a Melbourne gold
dealer, has been sentenced to four years
in prison, with eligibility for parole in
two years. Kachami, 48, planned the
robbery with an employee of the dealer
and believed it was a “victimless crime”.
He made off with more than $3 million
in cash, jewellery and bullion.
Thieves detained over
Green Vaults heist
4Three people have been arrested in
Berlin in relation to the theft of priceless
jewellery from Dresden Castle’s Green
Vault, a year after the crime took
place. The museum – which is home to
the Dresden Green, one of the world’s
largest green diamonds – was burgled in
the early morning of 25 November 2019
after a small fire at an electricity junction
box caused a power failure.
New national sales
manager at Peter W Beck
4Peter W Beck has appointed
Greville Ingham to the newly-created
role of national sales manager, working
across both retail and precious metal
services divisions of the business.
The role encompasses both Australia
and New Zealand. Ingham was previously
precious metal services manager at
Peter W Beck between 1992 and 2000,
and is a member of the Beck family. He
commenced his new role on 2 November.
An aerial view of the Argyle Mine – the world’s premier source of pink diamonds – which ceased production on
3 November after 37 years of operation.
The source of more than 90 per cent of the
world’s pink diamonds, the Argyle Mine in the
Kimberley region of Western Australia, has
been permanently closed by owner Rio Tinto
after more than 30 years
of operation.
The mine’s last day of operation was 3
November, with employees and traditional
owners of the land attending an event to mark
the start of the closure process.
Rio Tinto estimates it will take five years to
dismantle and decommission the Argyle site,
which will be rehabilitated, monitored, and
returned to traditional owners.
Andrew Wilson, general manager of the Argyle
Mine, said, “This is an historic day for the
Argyle Mine and the east Kimberley region,
and a great source of pride for this unique
Australian success story.
“A new chapter will now begin as we start the
process of respectfully closing the Argyle mine
and rehabilitating the land, to be handed back
to its traditional custodians.”
Diamonds were discovered in the region in
1979, with alluvial operations commencing
four years later.
Open pit mining began in 1985, and the Argyle
site was transitioned to a fully underground
operation in 2013 as its diamond reserves
began to be exhausted.
Over its period of operation, the mine has
produced more than 865 million carats of
rough diamonds and is the world’s largest
producer of natural fancy colour diamonds.
The annual Argyle Tender of colour diamonds
began with a 33-stone viewing in Antwerp in
1984, and has since evolved into a staple of
the diamond-buying calendar that captivates
industry figures and consumers alike.
“A new chapter will now begin as we
start the process of respectfully closing
the Argyle Mine and rehabilitating
the land, to be handed back to its
traditional custodians”
ANDREW WILSON
Argyle Mine
Arnaud Soirat, chief executive – copper and
diamonds at Rio Tinto, said, “50 years ago
there were very few people who believed
there were diamonds in Australia – even
fewer could have foreseen how the Argyle
story would unfold.
To arrive at this final chapter has required
vision, courage and determination to overcome
significant challenges to enter new territory in
diamond exploration, mining and marketing.”
He added, “Today Argyle’s influence stretches
into many spheres and over many continents
and I am very proud to acknowledge all
those people who have contributed to the
discovery and development of the mine and the
production of some of the finest diamonds the
world has ever seen.”
Bids for the penultimate Tender, ‘One Lifetime,
One Encounter’, closed on 2 December.
20 | December 2020

Louis Vuitton purchases a second large
diamond mined in Botswana
Perfect fit
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The 549-carat Sethunya diamond has been acquired by Louis Vuitton and will be cut by HB Antwerp.
Image credit: Louis Vuitton
French fashion house Louis Vuitton has acquired
a 549-carat stone unearthed at the Karowe Mine
in Botswana – 10 months after purchasing the
1,758-carat Sewelô diamond, which was mined
at the same site.
The new diamond has been named Sethunya,
which means ‘flower’ in the Setswana language.
It was discovered in February 2020, a month
after Louis Vuitton acquired the Sewelô, which is
the largest diamond found in Botswana to date.
Both stones were mined by Canada’s Lucara
Diamond Corporation (Lucara).
As part of the deal, the Sethunya diamond will
be cut by HB Antwerp in collaboration with
Louis Vuitton in order to create a personalised
jewellery set for a customer.
A statement from Lucara explained, “Louis
Vuitton envisages crafting beautiful, bespoke
high-value polished stones of variable size
and shape fashioned from this rare specimen
to the client’s wishes: the ultimate personalised
high jewellery experience and the opportunity to
create a truly unique gem, a storied
family heirloom.
“In this way, the client will be involved in the
creative process of plotting, cutting, polishing,
and becoming part of the story that the stone will
carry with it into history.”
Eira Thomas, CEO Lucara, said the company
was “extremely pleased to be building on the
ground-breaking partnership established for the
manufacturing of the Sewelô earlier this year”.
Following the Sethunya sale announcement,
Lucara confirmed it had found another
remarkable diamond – a 998-carat rough – at
Karowe. That stone will be sold directly to HB
Antwerp as part of an overall deal to acquire all
Lucara diamonds above 10.8 carats.
“Lucara is extremely pleased with the continued
recovery of large, high-quality diamonds from
the south lobe of the Karowe mine.
“To recover two [500-carat-plus] diamonds
in 10 months, along with the many other
high-quality diamonds across all the size
ranges, is a testament to the unique aspect
of the resource at Karowe”
EIRA THOMAS
Lucara Diamond Corporation
“To recover two [500-carat-plus] diamonds in
10 months, along with the many other highquality
diamonds across all the size ranges, is a
testament to the unique aspect of the resource
at Karowe,” Thomas said.
The 998-carat rough, the Sethunya, and the
Sewelô are the latest in a string of large
diamonds found at Karowe. In 2015, Lucara
mined the 1,111-carat Lesedi La Rona – the
second-largest Botswanan diamond – from the
site; it was sold to jeweller Graff Diamonds for
$US53 million ($AU77 million) two years later.
In 2016, Lucara sold the 813-carat Constellation
diamond to Dubai-based Nemesis International
for $US63.1 million ($AU86.8 million), setting a
per-carat price record in the process.
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The diamond
pipeline
has, for the
first time
in almost
100 years,
become truly
demanddriven
Pranay Narvekar
and Chaim Even-
Zohar
DIAMOND
INDUSTRY
ANALYSTS
New diamond industry report released
The analysis identifies 2019 as a pivotal year.
A new report exploring the restructuring of
the diamond trade over the course of 2019
and 2020 has been published, delving into the
macroeconomic and industry-specific factors
influencing the trade from mine to market.
Authored by diamond industry analysts
Pranay Narvekar and Chaim Even-Zohar –
who have previously contributed to Jeweller –
the report is titled The 2019 Pipeline: Prelude
to the Storm.
It details how the diamond market has
switched from being largely supply-driven
to a demand-focused model.
“The diamond pipeline has, for the first time
in almost 100 years, become truly demanddriven
– at each and every level of the
pipeline,” Narvekar and Even-Zohar write.
“It has become a normal competitive industry
not any more driven by the rough supply side,”
they add.
Calling the shift “a most desirable conclusion
for the midstream” of the diamond industry –
that is, cut-and-polishing operations in India,
and polished diamond traders – Narvekar
and Even-Zohar predict that the restructuring
process will lead to an industry that is
“structurally not only more competitive, but
also much healthier”.
The analysts identify 2019 as the turning point
for change, describing it as a “gap year”.
Stock levels were clearing amid falling
prices and sales, ahead of a predicted steady
recovery in the ensuing years.
Even-Zohar and Narvekar also explored
demand shifts in 2020 as a result of
COVID-19.
Indeed, the expected improvement in sales
and prices failed to materialise this year as
the pandemic unfolded, yet Narvekar and
Even-Zohar conclude that the fundamental
shifts initiated last year have ultimately left
the diamond industry in a stronger position.
Queensland jeweller to close Ipswich
store after 20 years
It’s been a
wonderful
experience
for us all and
we’re certainly
going to miss
our time here.
It’s been a
real pleasure
looking after
everybody
The Pascoe Jewellers store, located in the
Riverlink Shopping Centre, will cease trading on
Christmas Eve.
As noted in Jeweller’s State of The Industry
Report 2020, Pascoe Jewellers reduced
its store count from nine to three between
2010 and 2020.
Speaking to the Courier Mail, Geoff Pascoe
explained, “[Ipswich] is the eighth [store]
I’ve closed down so I’ve got two left.
“My health hasn’t been the best. I’ve had
cancer operations this year and I just had
to close all the stores. I’ve decided it’s a lot
easier to just try and close all the stores
down than try and sell them.”
Featuring the
delicate pink tone of
Argyle pink diamonds
Geoff Pascoe
PASCOE
JEWELLERS
The Ipswich branch of family-owned Pascoe
Jewellers, which had been operating in the
Queensland city for two decades, will
permanently close on Christmas Eve.
The decision to close the store was made due
to the ill health of owner Geoff Pascoe, who
runs the business alongside wife Carolyn.
Pascoe said the business had reduced its
employee headcount from 100 to around
30.Of the Ipswich closure, he added that
customers were “so sad” to see the
Riverlink Shopping Centre store go. The
remaining stores are located in Toowoomba
and Forest Lake; daughter Bianca Pascoe
will take over the latter.
SAMS GROUP
AUSTRALIA
E pink@samsgroup.com.au
W samsgroup.com.au
P 02 9290 2199

Pandora launches holiday marketing
campaign with Millie Bobby Brown
The new animated campaign – which is designed for social media – features a range
of Pandora celebrity spokespeople.
Pandora Jewelry has released its
2020 holiday season advertisement
featuring its celebrity spokespeople,
including Stranger Things actress
Millie Bobby Brown.
Described as a “mixed media short
film” with “a message of love and
unity”, the advertisement combines
live action with animation and is titled
One Lovely Day.
In the clip, an animated Brown is
joined by the Pandora ‘Muses’ –
Game Of Thrones actress Nathalie
Emmanuel, models Georgia May
Jagger and Halima Aden, dancer
Larsen Thompson, Australian
fashion writer, director and
consultant Margaret Zhang, and
artist Tasya van Ree – and US-based
music and design duo Coco & Breezy
(sisters Corianna and Brianna
Dotson).
The group visit Los Angeles, New
York, London, Shanghai and Australia
in a magical gift box, where they
distribute pink Pandora presents
as the 1977 hit ‘Lovely Day’ by Bill
Withers plays.
Carla Liuni, chief marketing director,
Pandora Jewelry, said, “We know this
holiday season may be unusual, with
some families unable to be together.
So, we wanted to highlight that,
regardless of where you are in the
world, you can still celebrate with the
ones you love and show them how
much you care.
“The aim of this feel-good animation
is to share this sentiment in a really
fun and engaging way.”
The clip was produced by Andy
Baker Studio in London. Andy
Baker, director, said, “We wanted
to combine the realism of the live
action and the 2D in a way that
felt unique and spent a lot of time
working on how we would design the
backgrounds using photography and
background painting techniques to
give us a really cool visual identity.”
“We know this holiday season
may be unusual, with some
families unable to be together.
So, we wanted to highlight that,
regardless of where you are in
the world, you can still celebrate
with the ones you love”
CARLA LIUNI
Pandor Jewelry
The advertisement is designed for
social media and will be posted to
Pandora’s own channels, as well
as the social media channels of the
celebrity spokespeople; they have a
combined following of more than 48
million on Instagram alone.
Pursuing a digital-based advertising
campaign appears to be a prudent
move by Pandora.
The company has focused on
e-commerce growth throughout
2020 and a recent financial report
indicated ‘triple-digit’ increases
in online sales in its two largest
markets – the US and UK – over the
three months to 30 September.
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10 Years Ago
Time Machine: December 2010
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 IIJS gears up for Mumbai debut
4 Personalisation trend hits bridal jewellery
4 Tiffany loses six-year battle against eBay
4 Australia buoys Asia-Pacific market
4 New consumer laws to aid jewellers
Lab-grown diamonds
to take off?
A diamond manufacturer has revealed that it
has been mass-producing colourless, synthetic
diamonds and is gearing up to sell them online.
Gemesis, which specialises in lab-grown
diamonds, has until now focused mostly on fancycoloured
stones.
Colourless diamonds are more expensive to
cultivate than fancy-coloured stones, but Gemesis
is now using the chemical vapour deposition (CVD)
method to produce thousands of carats a month
from its manufacturing base in Southeast Asia.
Chief executive and president Stephen Lux to US
trade magazine JCK that the “created” gems are
mostly more than 0.5 carat, H colour, and VS clarity.
“This is a momentous thing,” Lux said. “We can
provide to the consumer a colourless diamond
that is identical in every way to a mined stone,
except for its origin.”
Diamond Exchange closes
owing $2.5 million
In what can be described as a tragedy for online
diamond buyers, internet retailer Diamond
Exchange has closed its doors.
Diamond Exchange’s future was dealt a final
blow when the Victorian Supreme Court ended its
administration process and sent it into liquidation
on 12 November after joint administrators Con
Kokkinos and Matthew Jess of Worrells were
unable to prove that the case could be resolved in
a beneficial manner to creditors.
Its debts total $2.5 million, of which $1 million is
owed to customers.
December 2010
ON THE COVER State of the Industry Report
Editors’ Desk
4Market Intelligence: “The Yellow Pages
is useless. Have you used it recently?
I’m not just talking about the printed
Yellow Pages either. I stopped using
Yellowpages.com.au some time ago for
many reasons, the main one being its
lack of reliability.
These days we think about directories
differently, especially since the advent of
internet search. Print directories
are, and have always been, databases of
information. The way that information
is delivered – whether print, online or
through your mobile – is less important
than the quality of the information itself.
The online version of the Yellow Pages
is simply a different delivery mechanism
for the same database of information.
What has never changed is the need
for accurate information, and that’s
where the Yellow Pages lets you down
– it’s inaccurate.
Keep in mind that the very business
of Yellow Pages is to provide accurate
and up-to-date information, and if its
information is neither accurate nor
current then it’s useless.”
STILL RELEVANT 10 YEARS ON
Back to the Future:
Increasing commodification will
undoubtedly make some areas of
jewellery retail far more impersonal,
but the general consensus is that
jewellery will become more personal
– particularly at the higher end of the
marke – through increased [customer]
participation in design.
JWNZ losing money
The latest financial statements lodged by
JWNZ show that not only did the association
make a loss of more than $40,000 last year, but
membership income is dropping.
Jewellers and Watchmakers of New Zealand is
classified financially as an “incorporated society”
and as such is required to have its accounts
independently audited. The 2009/10 financial
statements show JWNZ’s trade fair lost $14,000
last year. The September fair had income of
$79,083 but expenses of $93,578.
Revenue from “commission” also declined,
while costs – including travel and meetings,
administrative, and magazine – increased.
Ole Lynggaard eyes
Australian flagship store
High-end European jewellery brand Ole
Lynggaard aims to further build its presence
in Australia by opening a flagship store in
the country.
The move is part of a worldwide strategy to
expand in international markets. Australia is
the Danish brand’s second-strongest export
market after Germany, depsite having only
launched its jewellery here in 2009.
Due to its desire for exclusivity, Ole Lynggaard’s
imminent Australian store will support its
existing retail base, rather than expanding it.
The store will follow the mould of the premium
Ole Lynggaard flagship in Copenhagen.
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
24 | December 2020

For your free copy of the Peter W Beck Catalogue containing over 2000 styles, please
contact Marketing on 08 8440 3369 or at Marketing@pwbeck.com.au

INTERCHANGEABLE
NEW
A very Happy Christmas
from the Timesupply team,
best wishes for a safe and
successful 2021.
Timesupply
jewellery + watches
p +61 (0)8 8221 5580
sales@timesupply.com.au | timesupply.com.au
exclusive distributor AU & NZ

INSIDE
Now & Then
Fairfax & Roberts
Celebrating 162 Years • SYDNEY, NSW • A moment with Irene Deutsch, CEO
MILESTONE S
L to R: Fairfax & Roberts employees pose for a photograph in 1896; the original Lamb & Fairfax premises on
George Street in the 19th Century – a new workshop would later be established on nearby Hunter Street.
Fairfax & Roberts is proud to be Australia’s
oldest established jeweller. Our incredible
story began in 1826 when Richard Lamb
set up a business on Sydney’s main street
as an optician and jeweller. He was later
joined by Alfred Fairfax, of the Fairfax
newspaper dynasty, and in 1858 together
they established Fairfax & Roberts as
Sydney’s first ‘emporium for fine silver and
watchmaking’.
One of Fairfax & Roberts’ early
achievements, in 1873, was the design and
production of the iconic tower clock that
still marks time at Sydney’s Central Station.
By 1886, the company was designing
and creating the finest luxury jewellery,
watches and objects d’art for Australia’s
wealthiest families. These one-of-a-kind
pieces have been tightly held for generations
by the families who commissioned them.
More than a century-and-a-half later,
Fairfax & Roberts still trades in precious
jewels as well as specialising in private
commissions. We maintain our own
workshop where pieces are exclusively
designed and carved and set by hand.
Most recently, the COVID-19 global
pandemic presented a never-before-seen
challenge for all businesses. We had to
diversify, be agile and think creatively – and
to ultimately accelerate many of our longterm
projects.
We successfully launched an online
boutique for ready-to-wear jewellery,
including our extensive range of
international brands. We also renovated
our flagship showroom and launch a
new homewares brand, No.19, which has
received overwhelmingly positive feedback.
It was important to us that during these
uncertain times, we continued to provide
exceptional service and create a new and
inviting space for our customers to visit once
these times had passed.
Our success throughout our history is
measured in the tears of joy our customers
shed when presented with a bespoke,
heartfelt gift or when we hear of a Fairfax
& Roberts engagement ring being passed
from one generation to the next.
The most beautiful part about our jewellery
is that it carries our client’s life story.
Indeed, tradition is a value that we proudly
promote. Our brand is based on a tradition
of quality, excellence, design innovation and
exquisite craftsmanship.
I enjoy it when customers come into the
store and have stories to tell about their
parents or grandparents having had an
heirloom piece of jewellery made by us, and
when I mention to people that I am CEO
of Fairfax & Roberts, I see the amount of
wonderful brand recognition it evokes.
The most rewarding part is knowing that
we continue to create history every day,
by making beautiful pieces of jewellery to
mark some of the most special occasions
in people’s lives.
I do feel a sense of responsibility to continue
the brand, and the traditions and the high
level of quality our clients expect. However,
I also find it incredibly exciting to be part of
something with such great history.
This desire to create luxury jewellery that
is meaningful, now and in the future, flows
1858
Richard Lamb and
Alfred Fairfax found
Sydney’s first ‘emporium
for fine silver and
watchmaking’ at
394 George Street, under
the name Lamb & Fairfax
1873
Lamb & Fairfax designs
and produces the clock
tower for Sydney’s
Central Station
1876
Richard Lamb passes
away and Alfred
Fairfax’s nephew Barton
joins the business
1886
Oscar G Roberts invests
in the business and its
name is changed to
Fairfax & Roberts. A new
workshop at 23 Hunter
Street and an outlet in
London are opened, and
the company registers its
‘maker’s mark’ with the
London Assay Office
1898
Fairfax & Roberts
manufactures the
commemorative solid
gold ‘opening key’ to
the Queen Victoria
Building
1927
Fairfax & Roberts crafts
a sterling silver kangaroo
pin for the Prince of
Wales – the future King
Edward VIII – upon his
visit to Australia
1990
The business moves
into an iconic Art Deco
building near Sydney’s
Martin Place
2008
Fairfax & Roberts
celebrates its 150th
anniversary with a
coffee table book and
new jewellery collections
Above: The Fairfax & Roberts boutique as it is
today, on Castlereagh Street near Martin Place.
throughout everything we do. It informs
our standard and keeps pushing us to
consistently please our customers with
jewellery that inspires and delights.
At the heart of the Fairfax & Roberts
brand – and what makes our pieces
so desirable – is the unique quality of
our designs.
Creating beautiful jewellery is a task
that the artisans of Fairfax & Roberts
take seriously, continuously creating
new collections to showcase our
stunning showroom.
We have set our quality standards
exceptionally high and we stay true
to this with every piece that leaves
our workshop.
My partner and I love Fairfax & Roberts
for so many reasons. We are committed
to honouring its rich history and want
to continue to make this a place where
happiness is created.
As a newly-appointed CEO, I would
obviously like to put my own stamp on
the business – with a nod to tradition.
Our customers should expect to see
our name out there more often, and
some new jewellery collections in the
new year.
We want to make Fairfax & Roberts a
destination, where people know they
will always find something special and
interesting. We want to be the best at
what we do and continually delight our
customers – hopefully for many years
to come!
Read the full length interview
on Jewellermagazine.com
December 2020 | 27

INSIDE
My Store
Rohan Jewellers
PERTH, WA with Rohan Milne, founder and creative director • SPACE COMPLETED 2008, though we have made continual updates since then
4Who is the target market?
A love of collaborating with our customers and
handcrafting custom jewellery is at the core of
the Rohan Jewellers philosophy – we have
become synonymous with that.
Our clients seek a highly personalised experience
when embarking on creating a bespoke piece
of jewellery with us, so this factor had great
influence when designing our boutique in
Leederville – one of our two Perth stores.
A private viewing room within the boutique
provides a relaxed and intimate setting to try
on collection pieces, explore ideas with our
designers, and view our range of loose gemstones
– including coveted Argyle pink diamonds –
with me.
4Which features encourage sales?
I was inspired to create a luxury boutique with
a relaxed environment that makes people feel
at ease.
Rohan Jewellers is a welcoming space where
clients can explore their own ideas and work
with a designer to have them turned into highquality
jewellery.
4What is the store design’s ‘wow factor’?
Unique to our Leederville boutique, our workshop
– where all of our pieces are handcrafted – is
located on-site. We invite customers to visit our
workshop at any time where our master jewellers
are constantly working on new pieces.
I’m happy to show them the precise tools that
I and the team of jewellers will use as they
collaborate in the creation of each unique piece.
28 | December 2020

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

REVIEW
Gems
Lapis lazuli: The night sky in your hand
L to R: Fred Leighton ring, Chow Tai Fook necklace, Andrew Grima
brooch | Below: Boucheron bracelet, Arman Sarkisyan ring
Lapis lazuli, often shortened to lapis, gained
its name from Latin and Persian origins –
lazhuward meaning ‘blue’ in Persian and
lapis meaning ‘stone’ in Latin. The gem has
been highly prized for thousands of years,
being used in jewellery, carvings, seals and
decorative items..
In the ancient world, lapis lazuli was worn
to signify rank and wealth, having been
used by kings and nobles as seals to mark
their official documents.
It has long been associated with wisdom,
protection, love and healing.
During the Renaissance the gem was
prized by European artists. Ground to a fine
powder, lapis was the source of a colour
pigment called ultramarine.
Under a microscope, lapis lazuli looks like
the night sky – with depths of blue lazurite,
a fine white haze of calcite and the starlike
sparkle of pyrite.
Lapis ranges in colour from greenish blue
to rich royal blue and violet blue. The most
prized – and valuable – is an intense royal
blue featuring minute gold flashes of pyrite.
Afghanistan is considered the most
significant source of quality lapis. The gem
has been mined there for thousands of
years in a remote and inhospitable region,
known historically as Bactria.
From isolated valleys, lapis was transported
by camel caravan to the bazaars of the
Mediterranean and then westwards to the
gem trading houses of Europe.
Lapis lazuli
From Persion
lazhuward meaning
‘blue’ and Latin lapis
meaning ‘stone’.
and called ‘Prussian blue’ or ‘Berlin blue’ is
one to note.
To detect staining, look for dye between the
grains of the gem and the tell-tale gleam of
transparent quartz, which is not present in
natural lapis.
Sintered synthetic spinel – to which pyrite
is added during the sintering process
–is another imitant. Sintering involves
compacting synthetic materials to make a
solid mass.
Sodalite is a gem that, to the untrained eye,
can look like lapis. It is not the rich royal
blue of lapis, but rather a greyish blue. Look
for the absence of pyrite and evidence of
dyeing – such as uneven colour and patches
of dye in and around bead drill holes.
It was an expensive material used only
by artists of established reputation for
religious works and private commissions
by wealthy sponsors.
Lapis lazuli is an aggregate comprised
primarily of lazurite, calcite and pyrite.
Quality lapis consists mainly of lazurite
– which gives the gem its intense blue
colour – with small amounts of white
calcite and pyrite.
It is the metallic flash of pyrite against
the deep blue of lazurite that makes it so
attractive to gem collectors and jewellery
artists. Lesser quality lapis will often
be a faded blue, without the depth and
brightness of the finer quality, and will have
a greater concentration of calcite.
Today, other sources are Lake Baikal in
Siberia, Chile, Angola, Pakistan, Canada
and Colorado in the US.
Lapis has long been fashioned into beads,
cabochons, inlays and free-form shapes.
Historically, the gem was also valued
as a carving material for ornaments,
hair combs, game board pieces and
protective amulets.
Lapis is often treated. It is a porous gem
that lends itself to waxing and oiling to
improve its lustre. Lesser quality lapis is
often dyed to reduce the appearance of
calcite and to enhance the blue of lazurite.
As high-quality lapis is expensive there are
imitants on the market; jasper stained blue
Colour: Blue to bluepurple,
mottled
Found in: Afghanistan,
Russia, Chile, Angola,
Pakistan, Canada
and the US
Mohs Hardness: 5–6
Class: Metamorphic
rock
Lustre: Waxy to vitreous
Formula:
(Na,Ca) 8
Al 6
Si 6
O 24
(S,SO) 4
Reconstructed lapis lazuli is made from
low quality lapis crushed and bonded with
resin. Pyrite is added to the mix. To identify
it, look for a smooth surface texture even on
chipped surfaces, a colour that looks ‘too
perfect’, and the absence of calcite.
As lapis is considered a relatively soft gem,
use mild soapy water to clean. Rinse and
leave to dry. Avoid using harsh chemicals
or an ultrasonic cleaner.
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
December 2020 | 31

CELEBRATING
Local Talent
LUCAS BLACKER
JEWELLERY
Freeform Colour
Stone Bangle
Metals: Platinum,
18-carat yellow gold and
rose gold
Gemstones: Rhodolite
and spessartite
garnet, blue and
parti-colour
sapphire, diamond
Lucas Blacker
Sydney, NSW
MEADOWLARK
Snake & Star Ring Set
Metal: 9-carat yellow gold
Gemstones: Morganite,
diamond
Claire Hammon & Greg
Fromont
Auckland, NZ
DAVID KEEFE FINE
JEWELLERY
Flower Ring
Metal: 9-carat yellow gold
Gemstones: Citrine,
amethyst, blue topaz
David Keefe Jr
Auckland, NZ
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
ONE ORANGE DOT
Oval Link Bracelet
Metal: Stainless steel
Sean O’Connell
Bundeena, NSW
RACHEL LAURA GORMAN
Pink Fuchsia Giardinetti
Ring (above) & Gem Garden
Ring (below)
Metal: Sterling silver
Gemstones: Above - Garnet,
pink tourmaline, rose quartz,
amethyst; Below - Sapphire,
tourmaline, blue topaz
Rachel Laura Gorman
Melbourne, VIC
32 | December 2020

PAYET GALLERY
Blue Beryl & Gold Ring
Metal: 18-carat
yellow gold
Gemstone: Blue beryl
Nicholas &
Francois Payet,
Margaret River, WA
MARK EVANS
FINE JEWELLERY
Water Drop Pendant
Metal: 18-carat white gold
Gemstones: Blue topaz,
diamond, clear quartz
(chain)
Mark Evans
Maroochydore, QLD
SCULPTED
JEWELS
Leaf Pendant
Metals: 9-carat
rose and white gold
Gemstone: White
diamond
Roley McIntyre
Wagga Wagga, NSW
JUAN CASTRO
Persefone Earrings
Metal: 9-carat
yellow gold
Gemstone: Pink
tourmaline
Juan Castro
Melbourne, VIC
EBBEKE & CO.
Art Deco Emerald
Ring
Metals: Platinum,
18-carat yellow gold
Gemstones: Emerald,
diamond
Lucas Ebbeke
Auckland, NZ
SUSAN EWINGTON
Hanna Ring
Metal: 18-carat
yellow gold
Gemstones: Parti
sapphire, cognac
diamond
Susan Ewington
Noosaville, QLD
JOHN MILLER DESIGN
Ocean Story – Beneath
The Waves Cuff
Metal: Hand-engraved and
stamped sterling silver
John Miller
Yallingup, WA
December 2020 | 33

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STATE OF THE INDUSTRY
10 Years at a Glance
STATE OF THE
INDUSTRY REPORT
AN IN-DEPTH REPORT OF AUSTRALIA’S JEWELLERY INDUSTRY OVER A DECADE
RESEARCH FEATURE: 10 YEARS AT A GLANCE
JEWELLERY
RETAIL
EVOLUTION
There is little doubt the past 10 years have led to
a significant change in the Australian jewellery
landscape – yet analysis of the data by Jeweller
shows a number of surprising trends and stories.
CHAIN STORES
The demise of fashion jewellery chains
Fine jewellery demonstrates unexpected resilience
Mid-sized jewellery chains have mixed results
BRAND-ONLY STORES
Huge increase in brand-only stores over past decade
International luxury groups make their mark
BUYING GROUPS
Shake up for the buying groups in 2020
How will they fare in the future?
December 2020 | 35

BACKGROUND
STATE OF THE INDUSTRY
REPORT EXPLAINED
The first detailed analysis of the Australian jewellery industry was published in
2003. It examined, and measured, the number of jewellery stores in the major
shopping centres in each state and, interestingly, found that jewellers accounted
for a ‘standard’ five per cent of all specialty stores in shopping centres.
The research also surveyed the number of jewellery chains and compared their
store count by state, also comparing that data against each state’s population data.
In the following years, Jeweller conducted adhoc research and in 2007 we
published a more comprehensive analysis of the chain stores. At the time, there
were around 1,000 stores listed, however, a need emerged to refine the research
by better defining store types and product categories.
This process culminated in the 2010 State of the Industry Report, published in
December that year.
The 68-page 2010 report offered a definition of – and differentiation between –
independent jewellery businesses, fashion and fine jewellery stores, chain stores,
brand-only and flagship stores, and finally jewellery kiosks.
Unsurprisingly, the jewellery industry has continued to evolve to the extent that,
in some ways, it’s a little like going ‘back to the future’; the industry appears to
be evolving full circle, back to its roots.
That is, independent jewellers are increasingly focusing on high-value items
– often custom-made jewellery for specific clients – along with repairs and
remodels. In part, it’s a crucial move to differentiate from easily purchased, lowvalue/low-priced
items sold on the internet.
At the same time, a notable change from previous reports is suppliers
(wholesalers) altering their distribution models, becoming defacto retail operations
that compete with independent jewellers.
What began as high-profile watch and jewellery brands establishing ‘Flagship’
stores – purported to assist independent stockists – has, in some cases, morphed
into full-on competition. As part of the evolution, Jeweller has redefined the
flagship and brand-only categories, which is explained in the article. It largely
affected how we define Pandora’s business model, moving it from the brand-only
category to the chain store category.
As the industry changes in the coming years, there may be a need to re-evaluate
the definitions used in future State of the Industry Reports.
Jeweller endeavours to maintain definitions where they are appropriate and
relevant to the current trading environment, and to enable simple comparison with
data in previous reports.
This edition, therefore, covers the chain and brand-only store categories as well as
the current membership and stores counts of the four buying groups – Nationwide,
Showcase, Leading Edge and the new entrant, Independent Jewellers Collective.
SAVING THE BEST FOR LAST
At the beginning of 2020, Jeweller’s intention was to include an analysis of the
most important category of all: independent jewellery stores. It would mark the
10-year anniversary of the first detailed analysis of the true state of the industry.
However, the COVID-19 pandemic not only dramatically affected our ability to
undertake the research but, more importantly, the resulting economic crisis has
had a major impact on jewellery stores – to the extent that many closed.
For that reason, we decided to research and quantify the number of independent
jewellers after the 2020 Christmas trading period. This report will be available in
the New Year.
36 | December 2020

STATE OF THE INDUSTRY
Chains through the Decade
CHAIN REACTIONS
Australian jewellery retailing has undergone significant evolution over the past
decade, but, surprisingly, the changes are very different to what was expected when
Jeweller published its last State of the Industry Report in 2010.
A
decade on from Jeweller’s first State of
the Industry Report, the jewellery retail
industry – mirroring the broader retail
sector – has undergone momentous change. Yet
over the past 10 years, fine jewellery chain stores
have remained relatively resilient, at least in
terms of store numbers.
However, the same cannot be said for the fashion
jewellery category!
There were 21 fine jewellery chain store ‘brands’ in 2010,
operating a total of 977 stores nationally. On a Like-By-Like
basis, by 2020 that number had declined by 125 stores to 852,
representing a 13 per cent reduction in total store count.
That contraction could be considered small when compared
with the performance of other consumer categories.
Some fine jewellery chains – such as Prouds and Michael Hill
– managed to increase overall store numbers, while others
marginally decreased.
Only two ‘names’ entirely disappeared from the list: Blue
Spirit, a lesser-known small franchise, which operated six
stores in 2010, and the high-profile Thomas Jewellers, with
nine stores.
James Thomas founded Thomas Jewellers in 1896 in
Ballarat. After 121 years of operation, the Thomas family
decided to close its iconic Bourke Street Mall store in
Melbourne in October 2017, as well as the Warnambool,
Wagga Wagga, Albury, Shepparton, Bendigo, Ballarat and
Geelong stores.
In contrast, of the seven fashion jewellery chains listed in the
State of the Industry Report (SOIR) 10 years ago, only one
remains – six closed their physical stores.
The proverbial ‘last man standing’, Lovisa, has grown from 35
locations in Australia to 152 over the past decade, following
the liquidation and closure of major competitors and smaller
fashion jewellery chains alike – including its sister chain Diva.
The ‘downfall’ of the six fashion jewellery chains means
that of the 378 stores that were operating in 2010, 343 no
longer exist.
Demise of fashion chains
For the purpose of research and a report, it is necessary
to create definitions in order to accurately measure and
compare results across categories and over time.
Therefore, a ‘chain’ is defined as a group of five or more
BY THE NUMBERS
Chain Insights
In this report, a ‘chain’
is defined as a group of
five or more jewellery
stores trading under
the one (brand) name,
with one ownership
entity – a person or
company –
co-ordinating buying
and marketing
activities across the
group. It could include a
franchise operation.
1164
fine jewellery
chain stores
remain open as
at December 2020
343
of 378 fashion
jewellery chain
stores have closed
since 2010
50%
chains in
Australia are
owned and / or
controlled by New
Zealand entities
jewellery stores trading under the one (brand) name, with
one ownership entity – a person or company – co-ordinating
buying and marketing activities across the group. It could
include a franchise operation.
In addition, Jeweller notes that a chain store usually has
central management and standardised business methods
and practices and will purchase product from both local
suppliers and/or import its own product.
In 2020, Lovisa is the largest fashion jewellery chain
operating in Australia. The ASX-listed BB Retail Capital,
founded by retail entrepreneur Brett Blundy, owns it.
TABLE 1: FASHION CHAINS STORE COUNT 2020 VS 2010
Chain 2010 2020 Variance
Diva 176 0 -176
Equip Accessories 104 0 -104
Lovisa 35 152 117
Magnolia Silver 22 0 -22
Butterfly Silver 20 0 -20
Bijoux 11 0 -11
Myka 10 0 -10
TOTAL 378 152 -226
Of the 7 chains in 2010, 6 collapsed and/or closed their physical stores
to move online. Of the 378 fashion jewellery stores in 2010, 343 closed.
Lovisa’s current store count, as noted in its most recent
annual report, is 152; however, an article published by
Jeweller in May 2014 detailing the closure of Lovisa’s
176-store sister chain Diva – also owned by BB Retail
Capital – noted that Lovisa had 158 stores across Australia.
Therefore, even though Lovisa has had an impressive
increase of 117 stores since 2010, it has rationalised
its store count over the past few years.
The demise of Diva is interesting. It was launched in 2003
by husband and wife team Colette and Mark Hayman, and
within two years it had expanded to 83 stores. It was sold
to BB Retail Capital in 2005.
By 2007, a further 72 stores had been opened, bringing
to 131 the total retail outlets in Australia.
Diva operated a further 369 stores overseas, primarily
targeting teenage girls, while Lovisa promoted itself as
being able to “fill the void for high quality, fashion forward
and directional jewellery.”
In 2010, and after a three-year absence from the industry
due to a non-compete clause in the sale of Diva to BB Retail
December 2020 | 37

STATE OF THE INDUSTRY | Chains through the decade
2020
STORE COUNT
Top 5
Largest Fine
Jewellery
Chains
Capital, Colette Hayman launched a new
fashion jewellery and accessories store,
eponymously named Colette Accessories.
The first Colette Accessories store opened
in Sydney’s CBD and, at the time, Hayman
boasted that they would have 120 stores
within three years. By 2014, the store count
had reached 102 across Australia, with a
further 18 overseas.
In contrast, of the seven fashion
jewellery chains listed in the State
of the Industry Report (SOIR) 10
years ago, only one remains – six
closed their physical stores...
The ‘downfall’ of the six fashion
jewellery chains means that of the
378 stores that were operating in
2010, 343 no longer exist.
However in February, the company – which
had been renamed Colette By Colette
Hayman – was placed into administration.
At the time of publication, it had emerged
from the administration process with
35 stores.
Diva and Colette are not the only large
fashion jewellery chains to have found
the going tough over the past decade.
Other closures
Butterfly Silver, a fashion jewellery business
established in 2002, operated 20 stores in
2010. It collapsed in March 2018 closing
all locations.
However, Hoskings subsequently acquired
the e-commerce business butterflysilver.
com.au.
Equip Accessories, which featured in the
2010 SOIR with 104 stores, was liquidated
in 2017. It had expanded to 110 Australian
stores, all of which were closed.
The other three fashion chains that didn’t
survive the decade with bricks and mortar
locations were Magnolia Silver, Bijoux,
and Myka.
In total, and along with Butterfly Silver,
they represented 63 store closures.
Magnolia Silver and Bijoux now operate
as online-only businesses.
On the other hand, Silvershop, which
was founded in 1999, has now expanded
to seven stores in Queensland making it
a small chain.
This collapse of 343 fashion jewellery
stores, along with Colette’s 64-store
closure as a result of administration,
leads to the question: why has the retail
landscape changed so drastically over
the past decade for the lower end of
the market?
The answer likely lies in more strenuous
competition from online incumbents
and new entrants, given that low-margin,
high-volume fashion jewellery is more
suited to internet sales than higher-value,
low-volume fine jewellery.
Further, and more importantly, the
continual increase in shopping centre
tenancy costs – particularly persquare-metre
rents – has resulted in an
unsustainable business model, especially
when ‘rent’ includes a sales percentage.
44 additional
stores since 2010
12 additional
stores since 2010
11 fewer stores
since 2010
43 fewer stores
since 2010
19 fewer stores
since 2010
TABLE 2: FINE JEWELLERY CHAINS’
STORE COUNT 2020 VS DEC 2010
Chain 2010 2020 Variance
Prouds 217 264 47
Michael Hill 144 154 10
Angus & Coote 133 120 13
Goldmark 119 74 -45
Wallace Bishop 57 38 -19
Zamels 100 33 -67
Shiels 31 40 9
Mazzucchelli's 25 28 3
Bevilles 29 24 -5
Salera’s 21 18 -3
Hoskings 17 16 -1
Gregory 16 15 -1
Graham's 7 6 -1
Regency 6 6 0
Anthonys 8 5 -3
Hardy Brothers 7 5 -2
Pascoe* 9 3 -6
Goldsmith* 9 2 -7
Dia Oro* 7 1 -6
Blue Spirit # 6 0 -6
Thomas # 9 0 -9
TOTAL 977 852 -125
On a like-for-like basis there has been 13% reduction
in store numbers the past 10 years
* No longer chain. # Stores closed
CHART 1: CHAIN DOMINANCE BETWEEN 2003 - 2020
2003
2007
2010
2020
0 250 500 750 1000 1250
38 | December 2020

Chains through the decade | STATE OF THE INDUSTRY
2020
STORE COUNT
Top 5
Resilient
Chains
Zamels
This structure further reduces the margin
on already low-margin items.
Michael Hill experienced a number of
other ups and downs.
TABLE 3: FINE & FASHION JEWELLERY
CHAINS’ STORE COUNT DEC 2020
The collapse of 343 fashion
jewellery stores, along with
Colette’s 64-store closure as a
result of administration, leads to
the question: why has the retail
landscape changed so drastically
over the past decade for the lower
end of the market?
Fine jewellery chains’ resilience
If one considers the long list of apparel and
accessories chains that have collapsed
over the past five years – including Roger
David, Marcs, Ed Harry, Rhodes & Beckett,
Bardot, and Jeanswest, among others – as
well as international chains which have
withdrawn from the Australian market, such
as Topshop, Esprit, Jigsaw, and Karen Millen,
fine chains have been surprisingly resilient.
Michael Hill Australia has expanded
throughout the past decade, with 10 more
stores in 2020 (154) than it had in 2010 (144).
However, those figures belie the fact that
the company went through major upheaval
when it exited the US market in 2018, closing
nine stores. At that time, the Australian store
count had reached 172, which means that
since 2010, when its store count was 144,
it opened as many as 28 stores to February
2018 – yet in the ensuing period it has closed
18 stores (see chart page 40).
9 additional stores
since 2010
3 additional stores
since 2010
No store closures
since 2010
Only one fewer
store since 2010
Only one fewer
store since 2010
The ASX-listed company decided
to expand its ‘brand’ offering by
establishing a new retail chain in 2014
called Emma & Roe – named after
founder Sir Michael Hill’s daughter
Emma and his wife’s maiden name, Roe.
The new stores attempted to specialise
in ‘demi-fine’ charms, bracelets,
necklaces, earrings and stackable rings.
The concept was trialled for 18 months,
beginning in five Queensland stores
in 2013 under the Captured Moments
brand. After receiving “encouraging
results”, the company opened its first
Emma & Roe concept store in Mackay,
Queensland, in April 2014.
Even though the number of Emma &
Roe stores quickly increased, the venture
ultimately proved unsuccessful. By June
2018 then-CEO Phil Taylor announced
the closure of all 36 stores.
The ‘big boy’ of the Australian jewellery
industry, James Pascoe Ltd (JPL), the
owner of Prouds, Goldmark and Angus
& Coote, remains the largest group, as
it was in 2010. Since then it has had a
net loss of only 11 stores, or 2 per cent,
declining from 469 to 458.
While the result is impressive, like
Michael Hill, the company has
rationalised its store mix and footprint
across Australia. Prouds increased its
presence by an impressive 47 stores
since 2010 (from 217 to 264), yet 45
Goldmark stores were closed (falling
from 119 to 74) during the same period.
Chain
Stores
Prouds 264
Michael Hill 154
Lovisa 152
Pandora # 124
Angus & Coote 120
Colette 35
Goldmark 74
Wallace Bishop 38
Zamels 33
Shiels 40
Mazzucchelli's 28
Bevilles 24
Salera’s 18
Hoskings 16
Gregory 15
Silvershop 7
Graham's 6
Regency 6
Anthonys 5
Hardy Brothers 5
TOTAL 1164
# Pandora was not included on the Chain Store list in
2010 as it was defined as a ‘brand-only’ store while
*In order to emerge from administration, Colette has
closed 64 stores this year, reducing its count from
99 to 35.
Prouds
Angus & Coote
CHART 2: PROUDS, ANGUS & COOTE AND GOLDMARK STORE GROWTH SINCE 2003
Goldmark
PROUDS STORES
Stores
2003 2007 2010 2020
ANGUS & COOTE STORES
Stores
2003 2007 2010 2020
Stores
2003 2007 2010 2020
The above charts show the growth of the three James Pascoe Ltd (JPL) chains stores. It should be noted that Angus & Coote and Goldmark were not part of JPL in 2003, which acquired the
ASX-listed Angus & Coote in a reverse takeover deal for $76 million in 2007. Prouds opened three new stores since July 2020, and closed two Angus & Coote stores and two Goldmark stores.
GOLDMARK STORES
December 2020 | 39

STATE OF THE INDUSTRY | Chains through the decade
IN SUMM A RY
History
Pandora
Meanwhile, 13 Angus & Coote stores got the chop. Myles
Norman, general manager JPL, confirmed that some
of the Angus & Coote and Goldmark ‘closures’ were stores
that were converted to, and re-branded as, Prouds.
Decline of Zamels
However, the story is not as positive when it comes to The
Jewellery Group, which owns Zamels and Mazzuchelli’s.
In 2010 Zamels was Australia’s third-largest jewellery chain
with 100 retail stores; however, by June 2020, a whopping
63 Zamels stores had closed. By December, four more had
closed. During the same period The Jewellery Group also
closed two single store ‘brands’, Vivien’s and Budgens.
On a brighter note, Mazzucchelli’s had increased from 25
stores in 2010 to 28 in December 2020, most of which are new
locations, with one Zamels store (Chadstone, in Melbourne)
being converted to Mazzucchelli’s. As a result, The Jewellery
In 2003 we asked:
are there too many
jewellery stores in
the major shopping
centre?
After extensive
research we found:
71
The number of
major shopping
centres in capital
cities
Group is now less than half the size it was in 2010, operating
61 stores, down from 127 (see chart 3).
Many of the problems facing Zamels can be traced to the
2007 sale of the 53-year-old family business to Quadrant
Private Equity. At the time, speculation valued the deal at
between $75 million and $100 million.
CHART 3: THE JEWELLERY GROUP
Stores
Zamels
TABLE 4: FINE & FASHION CHAINS BY OWNERSHIP
Chain Owner/Group Stores
Prouds
264
Angus & Coote James Pascoe
120
Group
Total
458
12,561
The number of
specialty stores
in the 71 centres
2003 2007 2010 2017 2020
Mazzuchelli's
Goldmark 74
Michael Hill Michael Hill 154 154
Lovisa BB Retail Capital 152 152
Pandora Pandora 124 124
Zamels
33
The Jewellery Group
Mazzucchelli's 28
Shiels
40
Transworld Enterprises
Graham's 6
Wallace Bishop
38
Wallace Bishop
Hardy Brothers 5
Colette Colette 35 35
Bevilles Bevilles 24 24
Salera’s Salera’s 18 18
Hoskings Hoskings 16 16
Gregory Gregory 15 15
Silvershop Silvershop 7 7
Regency Regency 6 6
Anthonys Anthonys 5 5
61
46
43
TOTAL 1164 1164
The above chart shows the updated chain store count as at December
2020. Note that a ‘chain’ is defined as 5 or more stores.
667
The number of
jewellery and
watch stores
5.3%
Jewellery stores
as a percentage
of all stores
16%
The percentage
of overall retail
sales at shopping
centres
Stores
2007 2010 2020
With a total of 61 stores, The Jewellery Group is half the size it was in 2010.
Since July 2020, Zamels closed four stores and Mazzhuchelli’s closed two.
However, when the takeover was completed, industry sources
suggested the final sale was closer to $48 million – a figure
that many believed was still excessive.
Five years later, that assessment was seemingly proved
correct when Quadrant sold The Jewellery Group to one of
the world’s largest jewellery manufacturers: Mumbai-based
M Suresh Group DMCC. In November 2017, Jeweller reported:
“In a stunning depreciation, Quadrant is tipped to be offloading
the group for less than $20 million – a loss of around $30
million in just over four years.”
At the time of the second sale, industry pundits questioned
the logic of an Indian jewellery manufacturer operating an
Australian-based retail chain, which then accounted for 102
Zamels and 27 Mazzucchelli’s stores.
Zamels had also encountered problems with its brand image
in 2012 when it was fined $250,000 by the Federal Court after
being found guilty of misleading consumers about the savings
CONTINUED ON PAGE 42
40 | December 2020

200
100
Chains through the decade | STATE OF THE INDUSTRY
ZOOMING OUT
A HISTORY LESSON:
TWISTS & TURNS
While the New Zealand based James Pascoe Ltd (JPL)
represents the largest retail footprint across Australia –
controlling Prouds, Angus & Coote and Goldmark chains –
that wasn’t always the case.
As previously noted, the 2010 State of the Industry Report
(SOIR) listed JPL with a combined total of 469 stores across
its three chains, falling to 458 this year.
The accompanying chart shows the growth of the three chains
since 2003, but it should be recognised that JPL acquired
Angus & Coote (A&C) and Goldmark in 2007 in a $76 million
deal. The acquisition included three other jewellery chains
which were part of A&C and which no longer operate.
A&C was established in 1895 and was listed on the Australian
Stock Exchange (ASX) in 1952. At the time of the JPL takeover
– which required approval from the Australian Competition
and Consumer Commission (ACCC) – A&C operated the
Edments, Dunklings and Amies chain, as well as Goldmark.
At the time of Jeweller’s first chain store research and
analysis in 2003, A&C operated 254 stores (Goldmark 114,
Amies 34, Dunklings 26, Edments 25, A&C 55) and according
to research firm IBISworld, the company had 12 per cent of
the jewellery and watch store business.
The deal was controversial not only because it required
ACCC approval, but also because it was a ‘reverse takeover’
– named for when a smaller company attempts to acquire
a larger company.
JPL announced the takeover move in January 2007 when it
had around 174 Prouds stores in Australia and when the
ASX-listed A&C accounted for around 246 stores.
In addition, Prouds was only the third-largest group at the time
of the reverse takeover; Kleins, a fashion jewellery franchise,
was the second-largest chain/group, with 182 stores.
In another interesting twist, reminiscent of recent history, in
May 2008 Kleins was placed into receivership after collapsing
with $20 million in debt. Two months later the company was
liquidated after administrator James Stewart, of Ferrier
Hodgson, said he was being forced to close the business.
“Despite 46 expressions of interest and eight indicative
offers being received, once parties proceeded to due diligence
it was clear that no-one was confident about returning the
business to profitability, considering the risks and financial
commitment required,” Stewart said.
In November 2008 Prouds went on to re-brand Amies in
Queensland, Dunklings in Victoria and Edments in South
Australia and Western Australia as Angus & Coote stores,
which helps explain the increase from 41 stores in 2007
to 133 in 2010, and finally 120 this year.
And in one final twist, of the 1,164 chain stores across
Australia in 2020, 52 per cent are owned and ‘controlled’ by
the Kiwis: James Pascoe Ltd and Michael Hill International.
0
CHART 4.1:
300
200
100
0
CHART 4.2:
500
400
300
200
100
0
2003 2007 2010 2020
Pascoes Group Chart
Angus & Coote Goldmark Prouds
2003 2007 2010 2020
Angus & Coote Goldmark Prouds
ABOVE JAMES PASCOE
LIMITED STORES BY BRAND
The above chart shows the growth of the
three James Pascoe Ltd (JPL) chains
stores over the past 17 years. It should be
noted that Angus & Coote and Goldmark
were not part of JPL in 2003; they were
acquired in 2007 in a reverse takeover
deal of Angus & Coote.
‘03 ‘07 ‘10 ‘20
Total Stores
LEFT JPL TOTAL STORES
The combined total of stores for
the three James Pascoe Ltd chains
since 2003.
2003 2007 2010
CHART 4.3: 2020 Australian chains with New Zealand ownership (By Brand)
10%
ANGUS & COOTE
Chain by Brand
Stores
Angus & Coote (JPL) 120
Goldmark (JPL) 74
Prouds (JPL) 264
Michael Hill (MHI) 154
Other 552
TOTAL 1164
OTHER
48%
552 STORES
NZ-OWNED in % 52%
Australian chains with New Zealand ownership (By Group)
MICHAEL HILL
13%
154 STORES
Chain by Group
Stores
James Pascoe (JPL) 458
Michael Hill (MHI) 154
Other 552
TOTAL 1164
NZ-OWNED in % 52%
OTHER
48%
552 STORES
MHI
13%
154 STORES
PROUDS
23%
264 STORES
JPL
39%
458 STORES
120 STORES
GOLDMARK
6%
74 STORES
ABOVE The pie charts show the number of New Zealand owned/controlled jewellery chains
trading in Australia by brand name and by group owned. They account for 52 per cent of stores.
December 2020 | 41

STATE OF THE INDUSTRY | Chains through the decade
CHART 5:
Wallace Bishop
Bevilles
Saleras
150
40
Stores
100
50
Stores
30
20
10
Stores
0
2003 2007 2010 2020
0
2003 2007 2010 2020
2007 2010 2020
The above charts show the store count changes for Wallace Bishop, Bevilles and Salera’s based on Jeweller’s previous reports. Since July 2020, Salera’s closed two stores.
CONTINUED FROM PAGE 40
to be made during an extensive sales period.
Unfortunately for The Jewellery Group,
it was the second time that Zamels had
been targeted by the Australian Competition
and Consumer Commission (ACCC) over
two-price – also known as ‘was-now’ –
advertising.
In 2006 the ACCC launched legal
proceedings against the then-family owned
Zamels in regard to its 2005 Christmas
catalogue. The Federal Court found
that Zamels had not sold the items at a
strikethrough (was) price for a reasonable
period prior to the sale.
This ACCC double-whammy might also have
affected the Zamels business model which
was based around ‘was-now’ advertising;
its retail marketing and pricing strategies
were changed and which, ultimately, could
have impacted trading levels.
Mid-sized chains up and down
The mid-sized retail chains present an
interesting scenario, with developments
that might have seemed unexpected a
decade ago.
In 2010, Wallace Bishop was Australia’s
sixth-largest fine jewellery brand, with
57 stores. It also operated seven Hardy
Brothers stores after acquiring the iconic
brand in 1997.
With a combined total of 64 group stores,
Wallace Bishop was the fourth largest group
after JPL (469 stores), Michael Hill (144) and
The Jewellery Group (127).
The high-profile Queensland retailer has
since closed 19 stores as well as two Hardy
Brothers stores.
In 2017, the proud family business
celebrated its centenary. At the time, CEO
Stuart Bishop – the grandson of founder
Wallace Bishop – told Jeweller that the
retailer had overcome many obstacles over
the years, including two World Wars, the
Great Depression, economic downturns
and the Global Financial Crisis of 2008.
“We have tackled and embraced the rise of
the shopping centre during the 20th Century
and of course more recently, the internet
revolution,” Bishop added.
However, despite the business’ long
history of resilience, it is fair to say that
management didn’t expect to see anything
like the coronavirus pandemic that has
caused a worldwide economic crisis.
Still, Bishop told Jeweller: “We are pleased
with the group’s performance in FY20 and
Q1 of FY21. Whilst COVID-19 presented
unique challenges for the retail sector, we
took the opportunity to restructure aspects
of our operations, including our retail
operating model, and invested significantly
in our digital offering.”
“Online shopping increased during
COVID-19, and we benefited from the
upturn in online sales as a result. The
momentum has continued in the past few
months, and Wallace Bishop is wellpositioned
as we enter our all-important
Christmas trading period.”
Bishop confirmed that the current store
count of 38 Wallace Bishop and five Hardy
Brothers stores was the same as in the
pre-COVID-19 period, adding, “There are no
plans to close any stores in the foreseeable
future. We continue to review our store
footprint, which is ‘business as usual’ for
the Wallace Bishop Group.
“Any store closures over the past 12 months
were due to ‘end of lease’.”
Meanwhile, South Australia-based Shiels
Jewellers managed to expand over the past
decade with a major move into Queensland,
where it opened seven stores.
In 2010 Shiels, owned by Transworld
Enterprises, was the seventh-largest retail
chain and 10 years later it has expanded
from 31 stores to 40.
Interestingly, it has reduced its West
Australian store count by four (17 to 13),
while South Australia, where the company
is based, increased by one (14 to 15).
OBITUA RY
Death of
fashion the
past decade
176 stores closed
104 stores closed
22 stores closed
(Online only)
20 stores closed
(Online only)
11 stores closed
(Online only)
Transworld’s second ‘brand’, Grahams
Jewellers, closed two stores, down from
eight in 2010 to six in 2020. However,
according to Toby Bensimon, managing
director of Transworld Enterprises, one
more Grahams store is scheduled to
close because “it’s not the right location”.
Rise and fall – and rise
Even more intriguing are the fortunes
of Bevilles Jewellers. Once a bastion of
Melbourne fine jewellery retailing, it was
founded in 1934 by Leo and Rae Beville and
has been in the hands of three generations
of their family since, with granddaughter
Michelle now CEO.
It first expanded outside of Victoria in
2003 when it opened its first NSW store at
Parramatta. Today its store count stands
at 24, compared with 29 in 2010. While that
figure indicates a loss of only five stores,
the story is more complex – one that is both
negative and positive.
While the recent history of
Bevilles is tumultuous, its current
position perhaps indicates the
resilience of its management...
[After] entering administration,
the business was subsequently
rebuilt, bringing its store count
back to 24.
Not only does Bevilles operate fewer
stores today than it did in 2010, over the
ensuing years two stores were closed and,
in April 2014, the chain entered voluntary
administration.
As a result, Bevilles’ store count was
forcibly reduced; 11 stores closed, bringing
to 16 the number of stores across Victoria,
NSW and South Australia.
However, the business was subsequently
CONTINUED ON PAGE 45
42 | December 2020

Chains through the decade | STATE OF THE INDUSTRY
ZOOMING IN
PANDORA: PAST THE PEAK?
While the accompanying fine jewellery chain store
analysis does not include Pandora, its store count
has been included in the 2020 Chain Store table.
The company and brand was defined as a ‘brandonly’
chain in the 2010 State of the Industry Report
(SOIR) – rather than a fine jewellery chain.
The distinction is important because Pandora was,
and remains, both a supplier to the wider jewellery
market and a prominent retailer of its own brand.
For this reason, the 2010 SOIR listed Pandora as
a ‘brand-only’ operator, which was defined as
“one, or more, fine or fashion jewellery stores that
sells and markets its own brand of jewellery and/
or watches.
It is usually a vertical-market operation, does not
utilise local suppliers, and stores are often owned
and operated by the proprietor of the brand or
under license via franchise agreements.”
Since 2010 the Pandora ‘Concept’ (brand-only)
stores – many of which are operated by franchisees
– have increased from 41 to 124. However, a
number of the stores have closed in recent times.
Pandora Australia refused to divulge the figure,
but it is rumoured to be approximately five.
Traditional jewellers once frowned upon Pandora
jewellery as a cheap fashion product; however the
line between fashion and fine jewellery is often
subjective and it was blurred when Pandora’s
designs began using gold and diamonds.
Further, the dismissive ‘fashion’ tag flew in the
face of Pandora’s successful distribution model,
and which best demonstrates the evolution of the
brand and the industry. That is, by around 2010
Pandora was sold by more than 700 independent
jewellery stockists.
Following a six-year run of meteoric growth, the
company began closing accounts in Australia and
New Zealand; during 2011 alone, more than 100
stockists had their accounts closed as Pandora
entered a “new business phase in Australasia”.
The news struck the industry hard, but more was
to come.
In 2012, Pandora Australia announced a further
100 stockists would be closed while at the same
time pushing its own franchise model.
Pandora was, and remains, both
a supplier to the wider jewellery
market and a prominent retailer
of its own brand.
The table below shows that from a peak of more
than 700 Australian independent stockists, the
brand was supported by only 124 stores in June
2020. In other words, Pandora maintains only 18
per cent of its independent consumer distribution
points as it did at its peak.
Adding the Pandora franchise stores, that figure
reaches around 35 per cent.
In fairness, much of the decline has been at
the company’s choice; however, the way it has
managed itself over recent years caused many
jewellers to quit the brand – with some making
the decision for Pandora.
Reasons for no longer stocking Pandora have
included what many saw as excessive and unfair
trading terms and conditions, along with being
treated as ‘second-class citizens’ compared to
the franchise operators.
For example, the increased number of forced
deliveries per year gave retailers little choice in
their own stock levels. Combined with minimum
quantities on each item (i.e. pack sizes of three-ofkind),
independent stockists were prevented from
matching stock purchases with sales, resulting in
ever-increasing stock levels.
The over-stocking problem increased to such
an extent that, in August 2019, the company took
the extraordinary step of buying back jewellery
from stockists for smelting. However, even
the buy-back program was saddled with strict
conditions, including that retailers would be
charged a handling fee.
The retailers’ decision to stop stocking Pandora
may have been well-founded, given that over the
past three to four years, Pandora sales have
been declining – to the extent that in 2019, the
company announced an international ‘re-launch’
of the brand.
Less than two years after announcing that it
would focus on its company-owned and franchise
stores, thereby closing thousands more wholesale
accounts from its independent jewellery retailers,
Pandora Jewelry CEO Alexander Lacik declared
in February this year that that may have been a
poor decision.
Lacik, who joined Pandora in April 2019 from
outside the jewellery industry, believes the
company might have lost “a lot of new customers”
and may need to refocus on distribution to
independent jewellery stores – the very
businesses that it once discarded.
2020 Points of Sale NSW VIC QLD WA SA TAS ACT NT Total
Pandora Concept Store 39 29 26 17 6 2 3 1 123
Pandora
Pandora
Pandora Stockist 45 33 31 4 7 1 0 3 124
TOTAL POINTS OF SALE 84 62 57 21 13 3 3 4 247
No. of stockists 2010 700
No. of stockists 2020 124
Decline 576
Points Stockists of Sale 10 v 2020
Percentage decline 82%
No. of stockists 2010 700
Points of Sale in 2020 247
Decline 453
Points of Sale 2020
Percentage decline 65%
800
Stores & Stockists
Stores & Stockists
50
40
30
20
10
NSW VIC QLD WA SA TAS ACT NT
ABOVE Table and 0 chart compares the number of Pandora Concept (brand-only) stores
and Pandora independent stockists by state. Pandora has an additional 18 Concept Stores in
New Zealand. Australia and New Zealand are grouped within the Pandora Pacific division.
NSW VIC QLD WA SA TAS ACT NT
Number of Stockists
600
400
200
0
Number of Stockists
2010 2020 2010 2020
ABOVE Shows how the number of Pandora stockists has reduced since
2010 compared to the increase in Pandora Concept (brand-only) stores,
noting that the number of independent stockists has declined by 82%
December 2020 | 43

STATE OF THE INDUSTRY | Chains through the decade
A GLANCE THROUGH 2003 - 2020
CHAIN SNAPSHOT: STORE COUNTS
The charts below detail the changes in store count across a number of well-known fine and fashion jewellery chains over time.
These changes reflect factors such as the evolving nature of the retail environment, individual business decisions including the
re-branding of ‘sister’ chains, and macroeconomic factors such as the Global Financial Crisis. Tables have been updated since
we reported figures in July at the height of the pandemic in Australia.
Michael Hill
Michael Hill
Zamels
Mazzuchelli's
Stores
Stores
Stores
2003 2007 2010 2018 2020
2003 2007 2010 2017 2020
2007 2010 2020
Store count decreased by 2 since July ‘20
Store count decreased by 4 since July ‘20 Store count decreased by 2 since July ‘20
Wallace Bishop
Bevilles
Saleras
150
40
Stores
100
50
Stores
30
20
10
Stores
0
2003 2007 2010 2020
0
2003 2007 2010 2020
2007 2010 2020
Store count decreased by 2 since July ‘20
Bevilles Shiels
Gregory
Hoskings
40
20
20
30
15
15
Stores
20
10
Stores
10
5
Stores
10
5
0
2003 2007 2010 2020
0
2003 2007 2010 2020
0
2007 2010 2020
Store count increased by 4 since July ‘20
Lovisa
Diva
Equip Accessories
200
150
Stores
2010 2014 2020
Stores
150
100
50
0
2007 2010 2020
Stores
100
50
0 0
0
2007 2010 2017 2020
Store count increased by 12 since July ‘20
44 | December 2020

HILLS AND VALLEYS
KEY MOMENTS FOR
MICHAEL HILL
It’s been a topsy-turvy decade for Michael Hill
International. Following the opening of his first
store in 1979 in the New Zealand town of
Whangarei, jeweller Michael Hill became well
known for unique designs and utilised highimpact
advertising to elevate the business to
national prominence.
The company grew steadily, and by 1987 it had
10 stores and was listed on the New Zealand
Stock Exchange (NZX). At the same time, the
company expanded into Australia, opening
four stores in Brisbane over four weeks.
In 2002, the company opened five stores in
Canada and six years later made inroads into
the US market by acquiring and re-branding
17 stores from Whitehall Jewelers.
In January 2011, and the age of 72, founder
Michael Hill was granted a knighthood in
New Zealand’s New Year Honours List.
After a long and illustrious career, Sir Michael
retired as his namesake company’s chairman
in November 2015 and the following year
Michael Hill International (MHI) was listed on
the Australian Stock Exchange (ASX).
At the time, 60 per cent of its stores were in
Australia and more than 80 per cent of MHI’s
revenue and profits were generated outside of
New Zealand.
The company began trading on 7 July 2016 at $1.15
per share. At the time of publication its share price
was $AU0.32 on the ASX and $NZ0.34 on the NZX.
The company’s 2020 Annual Report recorded a total
of 290 stores; 155 stores in Australia (dropping to
154 by December 2020), 49 in New Zealand and 86
in Canada. It reported revenue of $492 million and
post-tax profit of $3 million.
In October 2016 the Hill family trust, Hoglett
Hamlet, sold 10 per cent of its stake – 16 million
shares – in MHI for $25.6 million. However, it
remains the company’s largest shareholder,
owning 38 per cent of the company.
CONTINUED FROM PAGE 42
restructured and four months later a new
store was opened at Melbourne’s Westfield
Fountain Gate.
Then, in December 2015, the chain opened
a new Melbourne CBD store, having exited
Bourke Street Mall in 2011 when it was
“outbid” by Swarosvki for the ‘flagship’
location where it had been mall positioned
for more than a decade.
At the time, Michelle Beville said, “The
lease was up and we put in a bid to renew,
however the landlord decided to go out to
market after international interest [from
other retailers].
“International players have come to town
and they have the ability to pay fabulous
rent. The right rent moving forward [for
smaller companies] is difficult, due to these
international companies.”
In October 2017, Indian jewellery company
Tara Jewels acquired a 49 per cent stake
in Bevilles, four years after forming a
“strategic alliance” with the Australian
jewellery retailer.
While the recent history of Bevilles is
tumultuous, its current position perhaps
indicates the resilience of its management.
After ‘losing’ the high-profile Bourke Street
Mall store and entering administration, the
business was subsequently rebuilt, bringing
its store count back to 24 – close to its peak
of 29 in 2010.
By anyone’s reckoning, that’s no mean feat.
Another Victorian-based chain has also
proved quite resilient over the past 10 years.
Salera’s began 2010 with 21 stores – 15 in
Victoria and six in Queensland – increasing
to 23 the following year.
Alfredo Salera founded the business in 1953;
by December 2020, its store count was 18 –
a sustained record for a family-owned and
operated mid-sized chain.
Hoskings Jewellers has also proved
relatively robust. It made Jeweller’s list in
2010 with 17 stores, and today the Victorian-
IN SUMM A RY
Insights
Fashion
jewellery chain
stores have
seen a massive
decline, due
to increased
competition
and occupancy
costs
Fine jewellery
chain stores
have remained
resilient, when
compared with
both fashion
jewellery and
the broader
discretionary
category
Fine and
fashion
jewellery
remain
differentiated
in the market
Large jewellery
groups have
maintained
control of
fine jewellery
chains
Lovisa has
become the
dominant
player in
fashion
jewellery, with
152 stores
and no major
competitors
based jeweller still operates 16 outlets.
The company also owns the Goldsmith
brand, which has been less fortunate;
seven stores were closed in the past
10 years, with its numbers falling from
nine to two.
With that said, three Goldsmith stores
were converted to Pandora ‘Concept
stores’; Hoskings now operates six
Pandora stores in total (see page 40).
The 2010 SOIR also detailed that Hoskings
owned and operated four other jewellery
stores: three under the Sterns brand and
one Diamond House. These stores no
longer exist.
Once again, taking into account the demise
of many high profile and long-standing
retail businesses across the apparel
and fashion accessory categories, the
resilience of fine jewellers is impressive.
Other well-known names that have stood
the test of time include NSW’s Gregory
Jewellers and Regency Jewellers.
In 2010 Gregory Jewellers was listed as
a small-sized chain with 16 stores, and
today it has 15.
While one Gregory store was technically
closed, it was converted to a Gucci store
operated by Gregorys.
Another small chain, Regency Jewellers,
which was founded in 1968, has also fared
well. It operated six stores throughout
regional NSW in 2010 and it still operates
the same number today.
The same cannot be said for the
Queensland based Anthonys Fine
Jewellers.
It was listed with eight stores in the
2010 SOIR, however today it has been
reduced to five across Brisbane. Owned
by Queensland Wholesalers, the company
also operated three Kings Jewellers stores
in 2010 – all of which have ceased trading.
While Anthonys, with five stores, continues
to be defined as a ‘chain’, the same
cannot be said for Brisbane-based Pascoe
Jewellers or Melbourne-based Dio Oro
Jewellers, which was re-branded to
Diamond Valley Jewellers this year.
Both have suffered over the past 10 years.
Pascoe closed six stores (from nine to
three) and a seventh – located in Ipswich,
Queensland – is scheduled to close on
Christmas Eve this year, due to owner
Geoff Pascoe’s ill health.
Dio Oro has reduced its store count from
seven to one. Therefore, both businesses
have been removed from Jeweller’s
‘chain’ store list, along with Goldsmith, as
mentioned previously.
While the wider Australian non-essential
(discretionary spend) retail industry has
suffered greatly in the past decade, it’s
fair to say that many industry experts
had predicted bleaker times for fine
jewellery chains.
In the past decade only two names
disappeared altogether and, although
there has been a net loss of 118 stores
from the original 978, 63 closures were
from Zamels alone.
Reviewing the past 10–15 years – the first
of Jeweller’s analysis of jewellery chains
was published in 2003 – many jewellers
lamented the rise of, and competition
from, fashion jewellery.
It was viewed as ‘cheap product’, however,
this category has been impacted most by
changes in the retail sector.
To that end, fine jewellery retailers
have demonstrated an adaptability and
buoyancy over the past decade that
was not only unexpected, but should be
celebrated given the current times.
Editor’s note: A previous version of this
report was published digitally in July 2020.
This version includes updated figures that
were correct as at 1 December 2020. It
should be recognised that even though some
jewellery websites remain “live”, this does not
mean the business or its bricks-and-mortar
stores still operate.
December 2020 | 45

STATE OF THE INDUSTRY
Brand-Only Stores
BRAND and DELIVER
Part two of Jeweller’s analysis of the jewellery and watch industries explores how international
brands have expanded their presence in the Australian market – and how the brand-only store
model has increased competition with retailers.
The trend of jewellery retailing moving
towards two distinct ‘types’ has
continued over the past decade with
few surprises in store numbers. However, there
have been some very significant changes to the
mix of the Brand-Only retail category.
When Jeweller published the 2010 State of The Industry
Report there were 153 brand-only stores along with 17
flagship stores operating in Australia – a total of 170
outlets. And while the number is similar a decade later,
the structure and mix is not.
In 2010 Jeweller defined a brand-only retailer as a fine
or fashion jewellery store – or group of stores – that sells
and markets its own brand of jewellery and/or watches.
It is usually a vertical-market operation, does not utilise
local suppliers, and does not distribute to third-party
stockists on a large scale.
Brand-only stores are often owned and operated by the
proprietor of the brand, or they can be operated under
license. Before we look at the state of play in 2020 it’s
important to recognise and acknowledge a few issues.
Firstly, as markets and industries evolve, the consumer’s
perception of products and brands changes, which in
turn alters the market via different shopping habits.
Therefore, to develop and collate industry information in a
consistent manner, it’s vital to define categories so that the
data can be measured and analysed fairly and accurately,
allowing meaningful comparisons to be drawn.
In other words, to count something you must first define it.
It should be noted that we did not classify airport stores
or shop-in-shop arrangements, such as concessions, as
brand-only stores in either the 2010 or 2020 reports. Under
the concession model, brands occupy space within a host
store like Myer or David Jones, in return for paying a lease
and/or a percentage of their sales to the larger store.
A decade ago we considered that flagship stores were
different to brand-only stores in that they were owned
and operated by the brand itself, rather than a third
party. These outlets usually stock the largest range of the
brand’s merchandise and are regarded as a ‘landmark
store’ or ‘face’ of the brand.
Flagship stores take their name from a nautical term,
referring to the headship in a fleet of vessels – one
determined as the fastest, largest, newest, and mostheavily
armed or the best known.
BY THE NUMBERS
Brand-Only
In this report, a ‘brandonly’
retailer is defined
as a fine or fashion
jewellery store, or
group of stores, that
sells and markets its
own brand of jewellery
and/or watches. Brandonly
stores are often
owned and operated
by the proprietor of the
brand, or they can be
operated under license.
24
watch and
jewellery brands
opened their first
brand-only stores
in Australia over
the past 10 years
5
brands from the
2010 State of the
Industry report
no longer operate
stores in australia
126%
increase in new
entrants to the
brand-only watch
and jewellery
store category
In retailing, flagship stores stand as ideal examples of
their featured brand, excelling beyond lesser stores in
every way – they have more product, a greater access to
brand marketing, occupy more floor space and hold a
better position in terms of foot traffic. They are designed
to be the very best of what a brand has to offer.
Therefore, flagship stores usually form part of a
company’s marketing and advertising budget, which can
mean the profitability of the store is less important than
its presence within a specific market.
For these reasons, flagship stores are usually not large
in number because, by definition, they are designed to
be the lead store – the archetype of the company and
the brand. By nature, there can only be one or a few
leaders. They are also more expensive to operate.
We believed it was appropriate to distinguish between
brand-only and flagship stores in 2010. However, after
10 years of evolution in the market, the difference is
arguably irrelevant – particularly in the watch sector,
which has changed dramatically over the past five years.
Given these changes as well as the closure of many
flagship stores (Autore, Briel, Storm, Georgini), Jeweller
has determined that the distinction between flagship
and brand-only stores is no longer substantially
significant for the purposes of a State of the Industry
Report.
The flagship category has therefore been discontinued
and all flagship stores will be considered brand-only
stores, regardless of the commercial nature of the outlet.
Strategy backfire
A decade ago, high-profile watch brands – mainly Swiss
– were distributed via a wide wholesale channel to
independent stockists/retailers. Many watch companies
began to establish flagship stores as a way to promote
the brand, while arguing that the flagship store itself
was not a direct competitor to its independent stockists.
However, many jewellers did not agree! While the
flagship store strategy can work, especially in jewellery
where repeat purchases are common – think charms,
for example – it’s more complex for expensive ‘one-off’
purchases, such as luxury watches.
This complexity stems from the fact that successful
brands often consider their customer as the end
consumer and the ‘bricks-and-mortar’ retailer is
simply seen as the delivery method; while the retailer
is undoubtedly an integral part of the transaction, they
are viewed as a facilitator of the transaction – a conduit
46 | December 2020

Brand-only stores | STATE OF THE INDUSTRY
OV ER V IE W
Rise & Fall
TABLE 1: BRAND-ONLY STORES 2020
Increased from
32 to 44 stores
BRAND 2020 NSW VIC QLD WA SA TAS ACT NT TOTAL 2010
APM Monaco 4 2 1 7
Tiffany & Co
between the brand and the consumer.
With that perception in mind, the brand
– justifiably – wants to exert more
control over its relationship with the
customer. After all, it takes a great deal
of time, money and effort marketing
and developing a product, and a vital
component of the product’s image is the
perception of value and prestige.
Arguably, a $100 watch can tell the time
in the same way as a $10,000 watch, so
why pay the extra cost?
As a result, the more expensive Swiss
watch brands began cultivating the
flagship store model, establishing
high-profile outlets in premium CBD
locations as ‘destination’ stores that
complemented their wider distribution to
independent stockists.
Yet in some cases the strategy backfired
by souring relationships with those
retail stockists.
One notable case was the 2010 decision
of luxury conglomerate Moët-Hennessy
Louis Vuitton (LVMH) to open new Tag
Heuer flagship stores in the Melbourne and
Sydney CBDs, while simultaneously closing
the accounts of neighbouring stockists.
The move was met with howls of protest
from retailers who were already worried
about losing sales to rival watch and
jewellery stores – let alone dealing with
direct competition from their own suppliers!
In April of that year, jewellery chain Angus
& Coote took a stand. Reacting swiftly, the
high-profile jewellery chain withdrew the
Tag Heuer brand from all its stores.
Asked at the time whether Tag’s decision
would affect the way Angus & Coote
would select its watch brands in future,
Andrew Nock, then-general manager of
merchandising and marketing said, “Yes,”
adding, “We see the supply chain as being
a partnership; we give respect and we
expect respect in return. We want a winwin
situation for all involved.”
There was a similar uproar in 2007 when
Increased from
4 to 8 stores
Increased from
5 to 8 stores
Increased from
2 to 6 stores
Increased from
2 to 6 stores
Increased from
2 to 6 stores
Increased from
14 to 19 stores
Decreased from
10 to 0 stores
18 stores down to
7 stores, recovered
to 17 stores
Bell & Ross 1 1
Bremont 1 1
Bulgari 1 3 2 6 2
Cartier 2 1 1 4 5
Chaumet 1 1
Daniel Wellington 2 1 3
Dior* 1 1 2
Fossil 5 8 4 2 19 14
Franck Muller 1 1
Georg Jensen 2 4 3 1 10 12
Graff 1 1
Gucci 2 1 2 1 6 7
Hèrmes 1 1
Hublot 1 1
IWC Schaffhausen 1 1 2
Jaeger-LeCoultre 1 1 2
Kailis 4 4 3
Longines 1 1 2
Louis Vuitton 2 3 2 1 8
Michael Kors 9 5 14
Montblanc 2 2 4
Ole Lynggaard 1 1
Omega 2 3 1 6 2
Panerai 1 1 2
Paspaley 1 3 1 2 1 8 4
Piaget 1 1
Rolex 2 1 2 1 6
Secrets Shhh 2 4 9 1 1 17 18
Seiko 2 1 3
Swarovski 20 12 10 2 1 1 46
Swatch 1 1 2 3
Tag Heuer 1 2 2 1 6 2
Thomas Sabo 1 2 3 4
Tiffany & Co. 2 2 2 1 1 8 5
Tissot 2 2
Vacheron Constantin 2 2 1 1 6
Van Cleef & Arpels 1 2 3
TOTAL 75 79 42 18 4 0 1 1 220
There are 220 brand-only stores in Australia as at 1 December 2020, across 38 individual brands. This
represents a 72 per cent increase in store numbers since 2010 and shows 24 new entrants in the same period.
*While Dior operates several boutiques in Australia, only two sell the brand’s watches and jewellery.
December 2020 | 47

L to R:
Rolex; Omega
IN SUMM A RY
Current State
the Swiss watch giant Swatch decided to open an Omega
flagship store in Sydney. Although Swatch did not close
surrounding Omega accounts, many stockists were up in
arms.
It is important to note that, in those days, luxury watch and
jewellery brands avoided selling their products online.
With the subsequent change in strategy – and their slow
acknowledgement that they would have to embrace
e-commerce – they believed that consumers would still
visit a destination brand-only store because of their strong
connection to the brand itself.
The result is that today, in many cases, the only remaining
distribution channel of a luxury watch brand is via a brandonly
store – either company-owned or operated under licence.
In the jewellery sector, Pandora offers another case study
into the changes in market dynamics. The 2010 State of
the Industry Report listed the Danish company with one
flagship store owned and operated by Pandora Australia,
and 41 brand-only stores – some of which were operated
by franchisees, and others by Pandora.
A decade on, Pandora has 123 brand-only stores – which it
refers to as ‘Concept Stores’. It recently announced the closure
of its original flagship store in the prestigious Pitt Street Mall
retail precinct, which it had occupied since 2010.
The company opted not to renew its lease on the premises
– which expired at the end of September – following lengthy
discussions with Scentre, which is Australia’s largest retail
landlord and the operator of Westfield shopping centres.
New trends
It is possible to compare the 2010 and 2020 data by
combining the 2010 categories. Excluding Pandora, this
shows that 10 years ago there was a total of 20 watch and
jewellery brands in the Australian market responsible for
170 flagship and brand-only stores, compared to 38 brands
responsible for 220 stores today.
However, as detailed in Jeweller’s State of the Industry
Report 2020: Part I, which examined chain stores,
Pandora’s business has changed to the extent that we
220
brand-only stores
operating in
Australia in 2020
72%
increase in
number of brandonly
stores in
10 years
38
watch and
jewellery brands
operating brandonly
stores in
2020
79
number of watch
brand-only stores
in 2020
TABLE 2: WATCH BRAND-ONLY 2020
BRANDS NSW VIC QLD WA TOTAL
Bell & Ross 1 1
Bremont 1 1
Daniel Wellington 2 1 3
Fossil 5 8 4 2 19
Franck Muller 1 1
Hublot 1 1
IWC Schaffhausen 1 1 2
Jaeger-LeCoultre 1 1 2
Longines 1 1 2
Michael Kors 9 5 14
Omega 2 3 1 6
Panerai 1 1 2
Rolex 2 1 2 1 6
Seiko 2 1 3
Swatch 1 1 2
Tag Heuer 1 2 2 1 6
Tissot 2 2
Vacheron Constantin 2 2 1 1 6
TOTAL 31 33 10 5 79
In 2010 there were only six watch companies with brand-only stores,
however, a decade on there are 18 operating a total of 79 stores.
Some stores are operated by the brand owner, while others are
operated under license from the owner.
now list its 123 retail outlets as chain stores rather than
brand-only stores, in line with the notion that Pandora is
not a vertical-market operation.
That is, Pandora still has a wide wholesale channel to
LUXURY GOODS GROUPS: BRAND OWNERSHIP
RICHEMONT 10 BRANDS
LVMH
10 BRANDS
KERING
6 BRANDS
Economists define a luxury good as a product for which
demand increases more than proportionally as income
rises – the expenditure on a luxury good becomes a
greater proportion of overall spending. The international
conglomerates cover a wide range of product categories
other than watches and jewellery such as fashion, perfumes,
cosmetics, eyewear, wines and spirits.
Cartier
Dunhill
IWC Schaffhausen
Jaeger-LeCoultre
Montblanc
Bulgari
Chaumet
Dior
Fendi
FRED
Boucheron
Dodo
Girard-Perregaux
Pomellato
Qeelin
In addition, they continue to expand their businesses via
brand extensions; moving an established and well-known
brand in one consumer category into another. Think Hermes
expanding from luxury leather goods to watches and
jewellery, or Montblanc from writing instruments.
The following tables show brand ownership by luxury group.
Panerai
Piaget
Ralph Lauren
Vacheron Constantin
Van Cleef & Arpels
Hublot
Kenzo
Marc Jacobs
Tag Heuer
Zenith
Ulysse Nardin
Chaumet
48 | December 2020

Brand-only stores | STATE OF THE INDUSTRY
L to R:
Bulgari; Boucheron
independent stockists – unlike, for example, Tiffany & Co., Cartier,
and Georg Jensen, which have vertically-integrated business
models.
A vertically-integrated business consolidates multiple steps in
the typical distribution process, from manufacturing to consumer
purchase. Hence Pandora stores are now classed as a ‘chain’ for
the purpose of our 2020 State of the Industry Report. This means
we can compare apples with apples, and observe that there were
128 flagship and brand-only stores in 2010 (excluding Pandora)
compared to 220 in 2020.
Further, we can see that five of the 19 brands in 2010 (Autore, Briel,
Storm, Georgini and Guess) no longer operate any retail stores
whatsoever today. Despite this contraction, 24 new brands have
entered the market, meaning that there are now 38 watch and
jewellery companies operating brand-only stores in Australia.
It should be noted here that the increase in brand-only stores
has been driven by a number of internationally renowned luxury
conglomerates, such as Moët Hennessy Louis Vuitton (LVMH) and
Richemont, which cover a wide range of products, from jewellery
and watches to fashion and leather goods, perfumes and cosmetics.
These groups account for many of the new brand-only stores
introduced to the Australian market over the past 10 years –
including Montblanc, Chaumet, Hublot, Piaget, Van Cleef & Arpels,
Jaeger-LeCoultre, and Vacheron Constantin – and increases in the
number of existing brand stores, notably Bulgari and Tag Heuer.
International luxury brands such as Chopard and Hèrmes have
followed suit.
It is notable that Kennedy Jewellers, which was established in
Sydney in 1976, operates 10 boutiques (brand-only stores) for Rolex,
IWC Schaffhausen, Jaeger-LeCoultre, Panerai and Graff.
These have been included in this section of the State of the Industry
report, consistent with Jeweller’s definition that brand-only stores
can be owned and operated by the proprietor of the brand, or under
license by third parties.
Rolex, for example, has two other boutiques in Queensland operated
by Langfords Jewellers, while owner Richemont operates a second
Jaeger-LeCoultre brand-only store in Melbourne.
The evolution of the watch and jewellery brand mix over the past decade
TABLE 3: JEWELLERY BRAND-ONLY STORES 2020
BRANDS NSW VIC QLD WA SA TAS ACT NT TOTAL
APM Monaco 4 2 1 7
Bulgari 1 3 2 6
Cartier 2 1 1 4
Chaumet 1 1
Dior 1 1 2
Georg Jensen 2 4 3 1 10
Graff 1 1
Gucci 2 1 2 1 6
Hèrmes 1 1
Kailis 4 4
Louis Vuitton 2 3 2 1 8
Montblanc 2 2 4
Ole Lynggaard 1 1
Paspaley 1 3 1 2 1 8
Piaget 1 1
Secrets Shhh 2 4 9 1 1 17
Swarovski 20 12 10 2 1 1 46
Thomas Sabo 1 2 3
Tiffany & Co. 2 2 2 1 1 8
Van Cleef & Arpels 1 2 3
TOTAL 44 46 32 13 4 0 1 1 141
There has been a large move by international luxury goods brands to establish brand-only outlets
in Australia. Of the 38 watch and jewellery brands with brand-only stores in Australia, nearly 40
per cent are owned by LVMH, Richemont, or Kering.
SWATCH GROUP
19 BRANDS
FOSSIL GROUP
15 BRANDS
MOVADO
10 BRANDS
TIMEX
8 BRANDS
Balmain
Jaquet Droz
Adidas
Marc by Marc Jacobs
Movado
Gc
Blancpain
Léon Hatot
Armani Exchange
Michael Kors
Concord
Guess
Breguet
Longines
Burberry
Michele
EBEL
Nautica
Ck Calvin Klein
Mido
Columbia Sportswear
Skagen
MVMT
Salvatore Ferragamo
Certina
Omega
Diesel
Tory Burch
Olivia Burton
Ted Baker
Endura
Rado
DKNY
Coach
Timex
Flik Flak
Swatch
Emporio Armani
Hugo Boss
Versace
Glashütte Original
Swiss Timing
Frank Gehry
Lacoste
Versus
Hamilton
Tissot
Karl Lagerfeld
Tommy Hilfiger
Harry Winston
Kate Spade
Scuderia Ferrari
December 2020 | 49

Swarovski
is also interesting. Of the 19 brands in the 2010 report, only
six were watches; a decade on, that figure has tripled to 18.
And not all are Swiss! Japanese watch brand Seiko
selected Australia as an early location for its
expansion into brand-only stores.
In March 2016 it opened a store in Sydney’s Queen
Victoria Building and a Melbourne store followed,
opening in the CBD in 2018. Importantly, only last
December the company opened a new boutique for its prestige brand,
Grand Seiko, at Pitt Street Mall in Sydney.
Today there are 79 brand-only watch stores and, unsurprisingly, 81 per cent
of the outlets (64) are in Sydney and Melbourne. Of course, many jewellery
brands also offer watches.
Ups and downs, like-for-like
If we analyse the brand-only stores from 2010 to 2020 on a like-for-like
basis, we find some interesting results.
Swarovski is the standout performer, having increased its store count
by 14, from 32 in 2010 to 46 in 2020. Paspaley doubled it store count,
from four to eight – equalling Tiffany & Co.’s local store count.
Tag Heuer also doubled its store count to six, while Bulgari increased
its presence in Australia by four stores (from two to six).
Secrets Shhh has had a topsy-turvy decade. The 17-store retailer specialises
in cubic zirconia jewellery and was listed in Jeweller’s 2010 report with 18
stores, so it has declined by only one store in 10 years.
However, that’s not the full story.
Jane Meredith, along with friend Dietmar Gorlich, co-founded Secrets
Shhh in Noosa, Queensland in 2000. Under a franchise model, it quickly
grew to 26 stores across Australia and New Zealand before the 2007–2008
Global Financial Crisis took its toll, as it did on so many retailers.
By 2010, it was down to 18 stores – but more decline was yet to come. In
April 2017, the number of Secrets Shhh stores had fallen to only seven –
four company-owned and three franchised.
At that point, former Michael Hill International (MHI) CEO Mike Parsell
acquired a majority stake in the business and set about reinvigorating the
retailer. Parsell was well placed for the task; he had been with MHI for
30 years and was responsible for establishing the New Zealand jewellery
chain in Australia in 1987.
In October 2019, Parsell oversaw the opening of the latest Secrets Shhh
store at Robina Town Centre on Queensland’s Gold Coast, bringing the
total number of outlets to 17 – nine company-owned and eight franchised
– which is almost the same level as a decade ago.
Another interesting ‘story’ is that of APM Monaco, a silver jewellery brand
with seven Australian stores. It was founded in Monaco in 1982 but is now
headquartered in Hong Kong. US-based private equity firm TPG Capital,
which focuses on leveraged buyouts and growth capital, acquired a 30 per
cent stake in 2019.
Proudly distributed by
Many retailers might recall that Bolt International, the original distributor
of the hugely successful Ice-Watch, first introduced the brand to the
Australian market in 2012. Its first local brand-only store opened in
Sydney in 2016.
However, as a wholesale operation, the brand was not successful and
02 9417 0177 | www.dgau.com.au

Brand-only stores | STATE OF THE INDUSTRY
SAMS GROUP
AUSTRALIA
distribution was ceased a few years later.
APM Monaco is not the only retail brand that first attempted a comprehensive
wholesale distribution in Australia.
Danish brand Ole Lynggaard entered the Australian market in 2009 – with
much fanfare – as a wholesaler, establishing a flagship store in Market
Street, Sydney in October 2010 – one of just six worldwide. The others are
located in Copenhagen, Stockholm, Singapore and Paris.
The Sydney flagship store is still operating today, and the brand is also stocked by a small
number of retailers including Trewarne Jewellery in Melbourne and McKinney’s in Brisbane.
Concluding thoughts
Cartier
It is clear that the market has changed, with the
internationally renowned luxury conglomerates
focusing on global expansion as consumers
become more ‘brand-centric’ shoppers.
In addition, the line between jewellery/watch
companies and fashion companies has continued
to blur.
That is, increasingly, luxury brands in one category
are expanding their product offering into watches
and jewellery, thereby making it more difficult to
clearly define the brand.
For example, Hèrmes, which has a heritage in
leather goods, and Montblanc, which is best known
for writing instruments, now have watch and
jewellery ranges.
It is called brand extension, and it is nothing new.
Indeed, the Australian market already has an
interesting story about how a brand extension
takes over the original product: JAG watches.
JAG remains one of the most popular brands in
Australia and yet it was originally founded as a
denim jeans label in the 1970s by Adele Palmer.
TABLE 4: AT A GLANCE - NUMBER OF STORES
Brand-Only stores 2010* 128
Brand-Only stores 2020 220
Increase in stores 92
Percentage increase 72%
Between 2010 and 2020 Australia saw a dramatic
increase in the number of brand-only stores, from
128 to 220.
TABLE 5: AT A GLANCE - NUMBER OF BRANDS
Number of Brands 2010* 19
Number of Brands 2020 38
Closed brands since 2010 5
Number of new entrants since 2010 24
Percentage increase in new entrants 126%
* Both tables exclude Pandora
Of the 19 brands operating brand-only stores in 2010,
five closed their outlets, which means there has been
24 new entrants into the market – a 126 per cent
increase – over the past decade.
JAG jeans are said to have gained international
recognition when Steve McQueen, Jackie Onassis and Mick Jagger joined the brand’s starstudded
following.
In an unusual move back then, the Australian distributor of Sheaffer pens, Izzy Wolfe, approached
JAG to launch a new watch range under license, and the rest is history.
Given the success of the model, it is likely brand extensions will continue and we will see more
expansion from luxury brands into non-core product categories.
That said, on a like-for-like basis, there were 128 brand-only stores in 2010 across a total of 19
watch and jewellery brands. A decade later, there has been an increase of 92 brand-only stores
(72 per cent), to 220 across 38 brands today.
These figures neatly illustrate the shift from ‘retailer-centric’ to ‘brand-centric’ distribution and
marketing – though there is, clearly, still a firm place for independent stockists in the overall strategy.
And, if you consider that five brands in 2010 either exited Australia or closed their retail operation, then
there have been 24 new entrants since 2010. That’s an increase of more than 125 per cent!
The numbers indicate that over the past 10 years, international jewellery and watch brands began
to appreciate the Australian market and consider it a viable investment, both in terms of cost –
establishing one or several flagship store – and time, in the form of forming distribution networks
with independent retailers.
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STATE OF THE INDUSTRY
Buying Groups Report
STRENGTH in NUMBERS
Following a year of unprecedented upheaval, Jeweller revisited the four jewellery industry buying groups
profiled in our March report to explore how they have adapted and supported members throughout COVID-19.
It feels as if it’s every second day that we read
about another retailer closing its doors.
Economic and financial causes aren’t the
only issues at play; Australia has also had to
contend with drought, floods, fires and now the
coronavirus, all of which have taken their toll on
the already fragile retail industry.
In March, Colin Pocklington, managing director Nationwide
Jewellers – Australia and New Zealand’s largest buying group
– told Jeweller, “The conservative spending of consumers
continues to adversely affect the industry. Until we see real
growth in incomes and an easing in cost of living, we are
unlikely to see growth of sales.”
Yet in the wake of the pandemic, he struck a more optimistic
tone: “Obviously the last few months have been stressful for
everyone – particularly our Melbourne and Victorian members
and suppliers. That said, trading is very buoyant at the
moment. Consumers appear to be confident, with the virus
now under control.
“An increasing demand for custom design continues to
grow, with Australians who would normally be overseas now
spending their money domestically,” he explained.
That insight was echoed by Carson Webb, general manager
Showcase Jewellers, who said, “Consumers have very limited
travel plans and are more confident to remain local, support
local businesses, and enjoy the simple things around the again.
This is also true for our New Zealand members – and this is
true for many retail businesses, not just jewellery.”
He added, “I’d even go as far as to say this has seen the
resurgence of the independent jeweller, and many would be
booked out for weeks with makes and repairs.”
At Australia’s newest jewellery buying group, Independent
Jewellers Collective (IJC) – which launched in the first three
months of the year – the pandemic had an unexpectedly
unifying effect, according to CEO Josh Zarb.
“The uncertainty in the early days of COVID-19 was just as hard
for us a anyone, and it took hold just as we were launching IJC.
What it did do, which inadvertently worked in our favour, was to
pull a group of retailers together very quickly.
“[Our members] formed a very tight bond from the onset,
which gave us a great sense of community.”
Zarb also noted an uptick in sales for members, saying, “The
most pleasing thing to note throughout the last six months was
just how strong regional retail trade has been and almost all of
our members’ stores have been trading very strongly.”
By July, IJC had surpassed its initial member target of 40
BY THE NUMBERS
Buying Group
Insights
Buying groups offer
retail jewellers a
myriad of benefits,
beyond supplier
discounts. Group
members access
marketing and
business strategies
and support,
sophisticated ordering
platforms, access to
exclusive products,
and much more.
569
Australian
jewellery retailers
are buying group
members
102
jewellery stores in
New Zealand are
part of a buying
group
85.7%
of buying group
members are
in Australia
retailers and that number has held steady for the past five
months. As of 1 December, IJC had 43 members operating
52 stores.
Showcase Jewellers recorded a net increase of one new
member, to 139 and 212 stores in Australia and 19 stores
and 19 members in New Zealand, while Nationwide’s
membership remained relatively stable, decreasing from
322 to 317 members, and 364 stores.
Support and advice
During the pandemic, Showcase Jewellers found that its
existing e-commerce infrastructure paid off for members.
“To be very honest, our previous strategies of our fine
jewellery focus and investing in many of our digital
customised platforms has proven to be exactly what we
needed to support our members,” Webb explained.
Communication was also a key priority: “Using our active
internal communication platform has meant we’ve been able
to keep membership up to date and on top of what needs to
be done.”
“The uncertainty in the early days of
COVID-19 was just as hard for us a anyone,
and it took hold just as we were launching IJC.
What it did do, which inadvertently worked
in our favour, was to pull a group of retailers
together very quickly.”
JOSH ZARB
Independent Jewellers Collective
At IJC, Zarb said members had embraced “the Zoom
phenomenon” as interstate travel was largely prevented.
“We started hosting regular IJC group Zoom meetings with
all our partners [retailers] every two weeks from April and
then every three weeks from June,” he told Jeweller.
“During this time, we were able to share ideas and provide
some leadership and updates on many issues that the
industry was facing.
“This has become a very effective group communication
platform for us, as we invite guests to each meeting and we
can record these sessions easily for everyone to refer to at
a later date. These will continue into our business model
moving forward,” Zarb added.
At Nationwide, the focus was also on providing robust
digital offering, including new platforms to replace those
52 | December 2020

COV ID-19 INSIGHT
Lessons
Learned
Showcase Jewellers
physical events which were cancelled due to
international travel restrictions.
“With the cancellation of the 2020
International Jewellery & Watch Fair
[which was scheduled to take place in
October], we brought forward the launch of
our new eWarehouse in conjunction with
our Virtual Pre-Christmas Expo week,”
Pocklington says.
“Our Expo week was a huge success for
both members and suppliers, with orders
placed far in excess of the 2019 fair.”
Nationwide’s annual Antwerp diamondbuying
trip was also shifted online to ensure
members were still able to source and sell
Antwerp stones in 2020.
The ‘virtual buying trip’ ran from July
to September and connected jewellers
with diamantaires through videoconferencing,
as well as providing
marketing materials to promote the
stones and encourage pre-orders.
More broadly, the group also launched
its Global Diamond Vault, which gives
members access to certified diamonds
from both local and overseas suppliers.
In terms of communication and education,
Pocklington noted that daily webinars
on industry-related topics – including
forecasts and marketing strategies – as
well as tutorials.
Proactive and positive
While the buying groups acknowledged
the difficulties of COVID-19, a sense
of comparative optimism and positivity
shone through.
IJC’s Zarb noted, “The impact of coronavirus
on our group has been significant, but we
have been extremely fortunate that we were
not as negatively impacted by this as others
may have been.”
At Showcase, Webb said, “Thankfully, as a
group, we went into the pandemic period in
very good financial shape with a brilliant six
months of trade in the second half of 2019.
“This provided us with excellent leverage to
support all our membership throughout the
period – especially those in Melbourne.”
Colin Pocklington
Nationwide Jewellers
“The last few months
have been stressful for
everyone – particularly
our Melbourne and
Victorian members and
suppliers. That said,
trading is very buoyant
at the moment.
Consumers appear to
be confident.”
Carson Webb
Showcase Jewellers
“Our previous
strategies of our fine
jewellery focus and
investing in many of
our digital customised
platforms has proven
to be exactly what we
needed to support our
members.”
Josh Zarb
Independent Jewellers
Collective
“We started hosting
regular IJC group
Zoom meetings with
all our partners
[retailers]... During
this time, we were
able to share ideas
and provide some
leadership and
updates on many
issues that the
industry was facing.”
TABLE 1: GROUP TOTALS
GROUP TOTALS AUSTRALIA As at Dec ‘20
TYPE NATIONWIDE SHOWCASE LEADING EDGE IJC TOTAL
MEMBERS 317 139 70 43 569
STORES 364 184 104 52 704
Buying group figures have been adjusted from a previous report in February 2020. Members and store
counts have increased overall due to Independent Jewellers Collective’s 43 members and 52 stores.
GROUP TOTALS NEW ZEALAND As at Dec ‘20
TYPE NATIONWIDE SHOWCASE LEADING EDGE IJC TOTAL
MEMBERS 73 19 1 0 93
STORES 80 19 3 0 102
The New Zealand market has remained relatively stable, with a decrease of four members since February.
GROUP TOTALS INTERNATIONAL
TYPE
NATIONWIDE
FIJI
SHOWCASE
VANUATU
TOTAL
MEMBERS 1 1 2
STORES 4 1 5
Members and stores outside of Australia and New Zealand
Support during difficult times is perhaps
the clearest benefit for retailers of joining
a buying group, and this was illustrated as
the pandemic raged – forcing independent
retailers to modify their strategies and
seek external assistance.
“From late March to October, we spent
considerable time supporting members
with: information on how to access the
various government benefits; negotiating
rent relief with landlords – together
with our specialist jewellery store rent
consultants we helped over 200 members
achieve substantial rent reductions – and
finally, implementing various marketing
activities to boost sales,” Pocklington said.
Indeed even prior to COVID-19,
unsustainable tenancy costs topped
retailers’ list of concerns – something the
buying groups acknowledged at the start
of the year.
In March, Pocklington said many of his
members were already “seeking rent
reductions to bring their occupancy costs
811
STORES
TOTAL NUMBER
664
MEMBERS
back in-line with industry benchmarks”
while Webb noted that the disconnect
between store revenue and retail tenancy
costs had only widened over time.
“When a jeweller signed a $75,000
lease, say, five years ago, that lease has
now risen to around $91,000. Have the
jeweller’s sales increased proportionally
over that period?”
“The statistics will tell you that they
haven’t. And what about the legislated
wage increases that they have no control
over?” Webb asked in March.
Declining foot traffic in shopping
centres was also an escalating problem
for discretionary retailers like jewellers
– and that trend was accelerated by
the pandemic.
Charlie Davey, general manager of
members and category management
at Leading Edge Group Jewellers, told
Jeweller in March that high tenancy
costs had forced many anchor tenants to
December 2020 | 53

STATE OF THE INDUSTRY | Buying Groups Report
QUICK NUMBERS
Members’
Whereabouts
leave centres, leading to a decrease in foot traffic. As noted in
Jeweller’s feature ‘Seeing Eye to Eye: The Retail Rent Review’,
overall retail precinct footfall declined 8.1 per cent between 2017
and 2020, while shopping centre vacancy rates reached a 20-year
peak in June this year.
Pocklington pointed to the number of store closures to
illustrate the seriousness of the situation. “More than 300
Australian jewellery stores – representing 10 per cent of all
retailers – have closed in the last four years, with the main
factor being falling sales.
“Without doubt, the biggest challenge has been the significant
drop in jewellery industry sales over the last three to four years.”
“From late March to October, we spent
considerable time supporting members on how
to access the various government benefits,
negotiating rent relief with landlords –together
with our specialist jewellery store rent consultants
we helped over 200 members achieve substantial
rent reductions – and implementing various
marketing activities to boost sales”
COLIN POCKLINGTON
Nationwide Jewellers
COVID-19 accelerated another key trend in the retail sector,
which is the shift to e-commerce. According to figures from
Australia Post, 12 per cent of Australian retail sales took place
online in March 2020 – a new record high.
“Over the past two years, I think the changing face of our
consumers and their purchasing habits is something that
remains challenging for many independent jewellers,” Zarb
told Jeweller in March.
Davey agreed: “Bricks-and-mortar retailers are suffering due
to the online shopping experience. With each store closure in
regional Australia comes a loss of brands and items someone
once purchased.
“This drives consumers online to replenish those items –
encouraging online shopping in people who have traditionally
shopped locally.”
Lingering challenges
The variety of support on offer from buying groups places
independent jewellers in a strong position for the future, but the
same challenges that existed pre-COVID are likely to continue –
both within the jewellery category and across the retail sector.
At the same time, the Australian economy is not expected to
fully recover from the deep shocks of the COVID-19 for more
than a year.
Analysts at PriceWaterhouseCoopers (PWC) estimate overall
Australian household consumption fell 8–11 per cent in 2020 and
predict a recovery to “pre-COVID-19 levels towards the beginning
of 2022”, with the greatest impact felt in discretionary retail
categories – which includes jewellery.
33%
of buying group
members are
in New South
Wales
3%
of buying group
member stores
are in Tasmania
12.5%
of buying group
members’ stores
are in New
Zealand
165
stores in
Victoria are
part of a buying
group
117
buying group
members are
in Queensland
A recent report by management consultancy McKinsey, Australia’s next
normal: The cautious consumer – published in August – found that
“spending cutbacks and frugal, recession-like behaviour are showing
up in our data across all segments and categories, with the exception
of groceries” and that temporary relief measures were “masking”
consumption patterns.
The PWC report Where Next For Retail and Consumer? notes that
while the JobKeeper program, loan and mortgage deferrals, and other
government stimulus cushioned the initial blow of COVID-19, consumer
spending is expected to drop and then remain stagnant in the mid-term.
“The Australian retail sector was already struggling before COVID-19.
2020 saw the collapse of some iconic Australian retailers. The expected
drop in consumer spending, especially in discretionary categories, will
put further pressure on the sector,” the report’s authors noted.
Pocklington succinctly described the trading reality in March, telling
Jeweller, “We recognised the start of these difficult trading conditions
back in mid-2016 and started developing strategies, training and
marketing initiatives to assist members in maintaining profitability in a
declining market.”
Zarb explained that there is no simple answer to solve the challenges
retailers currently face.
“Unfortunately, there is no one ‘magic bullet’ that will be the single
solution to thrive in today’s retail climate,” he says.
However, that doesn’t mean there is nothing retailers can do to
improve:“If I had to get specific, I would suggest that retailers really
focus on identifying who their customer is and start to ensure their
marketing targets them.
“Thankfully, as a group, we went into
the pandemic period in very good financial shape with
a brilliant six months of trade in the second half of 2019.
This provided us with excellent leverage to support all
our membership throughout the period –
especially those in Melbourne.”
CARSON WEBB
Showcase Jewellers
“I would recommend that, if they are struggling, they reach out for
assistance. All the groups offer numerous support services to assist
their members.”
In the new digital world, where consumers are spoilt for choice,
Pocklington also advised retailers to undertake more marketing
activity each month, across more channels and platforms. They should
also look to offer different merchandise with different price points
than their competitors, especially chain stores. He advises Nationwide
members that better inventory management can also substantially
improve profitability.
Webb had similar advice at the start of the year, which is even more
pertinent in the ‘COVID normal’ reality: “First, work your stock levels
smarter. Customers are wanting ‘the same, but different’. Adjust now,
or you’ll drown in stock. The average store is sitting at 38 per cent of
stock value over two years old.
“Secondly, a really pertinent question to ask is, ‘Why me?’ Why should
54 | December 2020

Buying Groups Report | STATE OF THE INDUSTRY
SAMS GROUP
AUSTRALIA
TABLE 2: AUSTRALIAN TOTALS
The following tables include the most recent available membership and store count data, provided by the four
buying groups exclusively to Jeweller. While three buying groups experienced declines in membership over
the course of 2020 – largely attributed to COVID-19 and expected retirements – new buying group Independent
Jewellers Collective notably surpassed its launch target of 40 member stores.
NATIONWIDE AUSTRALIA As at Dec ‘20
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 113 66 65 25 28 10 7 3 317
2018 - MEMBERS 108 77 67 30 33 10 8 2 335
Variance 5 -11 -2 -5 -5 0 -1 1 -18
2020 - STORES 129 81 75 26 30 11 9 3 364
2018 - STORES 127 94 82 32 34 10 12 2 393
Variance 2 -13 -7 -6 -4 1 -3 1 -29
Excludes 73
members and 80
stores in NZ and
1 member with 4
stores in Fiji
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SINGLE STONES
SHOWCASE AUSTRALIA As at Dec ‘20
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 53 32 37 5 4 7 0 1 139
2018 - MEMBERS 61 30 40 7 5 8 0 1 152
Variance -8 2 -3 -2 -1 -1 0 0 -13
2020 - STORES 65 42 57 7 4 8 0 1 184
2018 - STORES 76 47 63 10 5 10 0 1 212
Variance -11 -5 -6 -3 -1 -2 0 0 -28
Excludes 19
members and 19
stores in NZ and
1 member with 1
store in Vanuatu
MATCHED PAIRS
LEADING EDGE AUSTRALIA As at Dec ‘20
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 33 12 8 3 8 2 1 3 70
2018 - MEMBERS 54 23 26 9 17 3 1 2 135
Variance -21 -11 -18 -6 -9 -1 0 1 -65
2020 - STORES 33 37 12 5 11 2 1 3 104
2018 - STORES 70 52 29 10 19 3 2 10 195
Variance -37 -15 -17 -5 -8 -1 -1 -7 -91
Excludes 1
member and 3
stores in NZ
CALIBRATED MELEE LINES
IJC AUSTRALIA As at Dec ‘20
COMPARISON NSW VIC QLD WA SA TAS ACT NT TOTAL
2020 - MEMBERS 19 5 7 5 7 0 0 0 43
2020 - STORES 24 5 10 5 8 0 0 0 52
Started
buying group
early 2020
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W samsgroup.com.au
P 02 9290 2199

STATE OF THE INDUSTRY | Buying Groups Report
the customer in your area, town, city or even online, shop with you? Why are
you any different or special?
“If you can answer that honestly, and your customer agrees with you, then
you’re on the right track indeed.” Webb said many Showcase members who
focused on custom design and manufacture, and specialise in fine jewellery,
are performing very well.
Zarb advised retailers to reassess marketing, while Davey said it was
vital for jewellers to concentrate on great customer service and creating
unique environments – shopping experiences that can’t be matched by
online competitors.
“Focus on providing a seamless customer shopping experience, from the
presentation of your store, website and mobile interaction. Continue to review
your cost of doing business and review the options available for payments,
utilities and rent, and where needed, get help from your network,” he advised.
TABLE 3: 2020 GRAND TOTALS
TYPE NATIONWIDE SHOWCASE LEADING EDGE IJC TOTAL
MEMBERS 317 139 70 43 569
STORES 364 184 104 52 704
Excludes New Zealand and International stores
TYPE TOTAL 2018 VARIANCE
MEMBERS 569 622 -53
STORES 704 800 -96
2018 vs 2020 total variance. Excludes New Zealand
and International stores
However, post-COVID, Webb cautioned: “Stores are certainly using their
online presence as a place to connect and get the customers in. When they
are in, it’s a matter of keeping everyone safe and yet still trying to maximise
sales when you have limited people in the store with social distancing rules.
“There’s never a dull moment in retail, however, we are some of the most
resilient people you’ll ever meet and we find ways to make things work!”
Equipped for the future
As the business climate has changed, and as traditional retailing has come
to grips with digital competition, training and education have become the
cornerstones of all the buying groups.
Pocklington notes that the ability to benchmark your store against other,
similar stores is vital: “In the past two years, we have created a 12-month
trading budget for more than 150 of our members, and in the process
benchmarked their business and provided them with the precise actions
needed to improve their profitability.”
Webb doesn’t see the current retail environment as an ‘us versus them’
fight: “It’s about transparency and giving consumers a choice [with
lab-created diamonds]. Let’s get on with it and stop trying to pull each
other down!
“Our amazing industry needs better cohesion and a few more smiles and
high fives, not constant beat ups. We have an amazing industry that offers
consumers emotional engagement like no other can. Make it count!”
Proudly distributed by
Before launching IJC, Zarb conducted a review of the marketplace in order
to find the new buying group’s niche. He told Jeweller, “Everything we offer
at IJC aims at specific one-on-one support for our retailer partners.
“Upon joining the Independent Jewellers Collective, partners will receive
02 9417 0177 | www.dgau.com.au

a free Business Health Check, covering staffing levels, stock holding,
merchandising, marketing and overall business performance and
profitability – delivered in a ‘real world’ solution package.”
Like all other industries, the original reason for joining a buying group
was to take advantage of the trade discounts from suppliers – but that
is only part of the picture.
Taking the next steps
In March, Webb was quick to address the ‘glass half-empty mentality’
that can permeate any industry during tough times.
“Aside from all the difficulties, the real danger I see is the danger
from ourselves, as the retailer, getting stuck in the negative talk and
becoming irrelevant to the consumer,” he explained.
Indeed, while retailers must continue to adapt to a more digitallyfocused
environment, 2020 also proved that the retail experience is a
resilient one.
A recent survey of 25,000 international consumers, conducted by
Adyen and Opinium Research, found Australians had a far stronger
desire to shop in-store than their UK or US counterparts –72 per cent
versus 50 per cent 62 per cent, respectively – and nearly two-thirds
of Australian respondents indicated they they were looking forward to
shopping ‘or pleasure again.
More broadly, the Westpac-Melbourne Institute Index of Consumer
Sentiment reached a seven-year peak of 107.7 in November, following
an 11.9 per cent increase in October. The Index is now 13 per cent
above the average over the six months prior to March 2020.
Indeed, while retailers must continue to adapt
to a more digitally-focused environment,
2020 also proved that the retail experience
is a resilient one
Yet even amid signs of recovery, Webb recommends “cautious and
measured steps”, predicting, “2021 will be a little more unknown as
the government incentives slowly disappear. With a vaccine promising
to be close, it’s still going to be fragile and uncertain times ahead.”
This is perhaps where the benefits of safety in numbers becomes vital;
membership to a buying group offers a range of support not readily
available to individual stores.
While retail buying groups do not offer the elusive panacea – and
may not be the right choice for every independent jeweller – as the
business world becomes increasingly competitive and complicated,
they do offer a safe harbour within which like-minded business
owners can seek protection and assistance in order to flourish.
Better still, jewellers now have a choice of four groups – all with
different advantages – to suit their specific needs.
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.
Editor’s note: A previous version of this report appeared in the March 2020
edition of Jeweller. Consistent with Jeweller’s role as a journal of record for
the industry, updated membership and store count figures were deemed
necessary given the impact of COVID-19, as well as the entrance of a fourth
buying group into the category.
Proudly distributed by
02 9417 0177 | www.dgau.com.au

BUSINESS
Strategy
Survival lessons of the pandemic
for business owners
As Australia slowly emerges from the grip of COVID-19, SUE BARRETT reflects on the unavoidable and unexpected
challenges of this year – and what business owners can learn about resilience, leadership, and change.
Four months into the COVID-19
pandemic, I wrote down the lessons
that I was learning about myself as
a leader, and my business. At the
time, I described the crisis as a test of
character for me and other people.
It had put everything I cared for, valued,
and taken for granted on notice.
Not that I wasn’t aware of or didn’t pay
attention to these things before – I am a
very attentive and purposeful person –
however, the pandemic put everything on
the table for a thorough examination.
As the COVID-19 shutdown hit, the very
first thing I did was gather my team
together and I said: “Our number one
goal is to stay together and stay in
business. We’ve worked too hard to let all
of our good work go to waste.
“We will manage our costs and reduce
where we can and then we will prepare
for the future.”
Then, I addressed the reality of the
economic situation for our clients.
happening to their businesses, their
customers and supply chains, we are
going to get ready a range of sales
resources and support for them so
they can get selling again and can keep
their businesses going and people in
jobs,” I said.
“This is what we are great at and this is
what we are going to help them address,
when they are ready.”
“We are going to keep selling, marketing
and engaging with our clients and others
to help them navigate their way through
this storm. By having their backs, we will
have our own.”
The interesting thing is that the things
I spoke about had been the focus of the
business all along.
Knowing our purpose made it easier
to channel our efforts towards what
was important. It also united us on our
journey through 2020’s many challenges.
And as it was for so many people, lessons
kept revealing themselves to me.
There is nothing
like a major
crisis to get us
to rethink what
is essential,
what is
desirable, what
is just nice to
have, and what
is past its useby
date
second, stricter lockdown in Melbourne
– where our business is based – some
governments around the world seemingly
ignoring the virus, elections that kept the
world on tenterhooks, and at a personal
level, deciding to leave our physical office
of 22 years to start anew.
There is nothing like a major crisis to get
us to rethink what is essential, what is
desirable, what is just nice to have, and
what is past its use-by date.
Reflecting on the first wave
As the saying goes, we are all in the
same storm, but we are not all in the
same boat.
What that means is if we pay attention,
we can learn a lot by listening to each
other: our clients, our families, and
others with whom we engage.
From doing so, it’s clear that some –
personally and professionally – have
sailed through this year virtually
unscathed while others are struggling
to make ends meet and stay in business.
“While everyone is going to need some
time to get their heads around what is
The second part of the year presented
more and different obstacles, like the
It has been interesting to see those who
carry themselves with dignity and grace
58 | December 2020

Business Strategy
even during the toughest situations, and
those who do not. Which brings me to a
quote that caught my attention during
the early stages of the COVID-19 crisis:
“A crisis does not develop character, it
reveals character.”
The pandemic is affecting people,
businesses, communities and
governments in a myriad of ways, but it’s
also revealing characters.
So, what is character? It is the aggregate
of features and traits that form the
individual nature of a person or thing. It
includes our moral or ethical qualities
as individuals, teams, businesses and
societies.
Some people are magnificent at leading
the way with clarity and purpose, while
others are out of control and create
mayhem and panic. And others still
are somewhere in between.
I know you are already seeing certain
people flash before your eyes as you
read this!
Our character – expressed through
behaviour and actions – does impact
others for better or for worse, especially
in times like this.
As a business owner and manager, ask
yourself these four questions:
• How do I handle myself under
pressure?
• How do I want to handle myself under
pressure?
• How do I want to present myself and
lead in a crisis and beyond?
• How do I want to be perceived and
remembered by others?
As Maya Angelou once said: “People will
forget what you said, people will forget
what you did, but people will never forget
how you made them feel.”
Through the second wave – and beyond
While the first few months of the
pandemic were a lesson in character
and preparedness, the next months
crystallised further insights.
First was that relocating can be
liberating, both physically and
emotionally.
I am a creature of habit when it comes
to work routines and had run my
business from a commercial office
space for more than two decades.
I thought working from home would leave
me feeling sad or mournful – however,
the exact opposite occurred.
Instead, I felt free. I also got the chance
to update my workspace and habits
which improved my – and my team’s
– productivity.
They say if you want to change old
habits, the best time to do it is when
you are changing your physical location,
such as moving to a new house or
business premises.
This year has been an opportunity to
change for the better, and to seek out
new ways of working that make sense
for the future of my business.
The next lesson was about the
importance of staying the course;
relationships, commitment, and
teamwork can save the day – or the year!
My team is very strong and committed,
with a clear focus and purpose that allow
us to navigate every situation with a
sense of control.
I promised my team at the beginning of
the pandemic that our number-one job
was to stay together and stay in business,
and we did just that.
Simply put, we did exactly what
we advised other businesses to
do throughout COVID-19 – keep
communication channels open,
develop new relationships and nurture
existing ones, adapt and develop
new offers, and identify new market
segments to ensure that you have a full
pipeline of opportunity.
Knowing how to strategise and sell are
vital business and life skills we can all
benefit from, now and in the long term.
Finally, I learnt that mental health is vital
to our overall well-being. Taking time to
check in with employees, customers and
suppliers does matter.
Sometimes, the best thing we can do
is listen and respect another person’s
KEY
INSIGHTS
Define your
purpose
Unite and focus
your staff by
articulating a
clear vision for
the business
Reflect and
improve
Assess your
management
style and habits,
and how you
can improve
Embrace
change
Times of
crisis and
disruption are
opportunities for
evolution
feelings – even if they are all over the
place and somewhat negative.
However, we can do this in such a way
that we do not get swept up in their
emotions. Instead, as leaders, we can
be a neutral sounding board of calm
and reason, with a ‘Can do-What if’
approach that provides hope and
purposeful optimism.
Equally, it is important for business
leaders and owners make time and space
to unload feelings and emotions in a
healthy way, so that they do not disrupt
their employees, customers, business
partners and family.
The end of an era
I am a 2020 Year 12 parent. Like many
other parents, we have had our fair
share of extra challenges and work this
year participating in the schooling of
our children.
This year also signifies the end of
the schooling years as parents for
my husband and I – 19 years of dropoffs
and pick-ups, parent-teacher
interviews, and so on.
As my son graduated, I found myself
reflecting on these 19 years as part of the
school community; all the relationships,
projects, and community activities we
participated in to help it flourish.
For many people, 2020 represents the
end of an era for their business – whether
it be relocating a store, shifting to
e-commerce, or retiring and handing on
to a new generation.
But if this year has taught us anything,
it is that this process of change is as
wonderful as it is sad; after all, the end
of one era is just the beginning of the
next one.
SUE BARRETT is founder and CEO of
innovative and forward-thinking sales
advisory and education firm Barrett
and online sales education platform
salesessentials.com. Visit: barrett.com.au
59 | December 2020

BUSINESS
Selling
Six simple and effective selling tips
you can implement right now
While some aspects of your business have undoubtedly had to change and adapt to the new reality of retail,
there are other elements that you can’t afford to neglect, advise RICH KIZER and GEORGANNE BENDER.
Even when things were ‘normal’ – before
COVID-19 – customers shopped in strange
patterns, and their choices tended not to
be divided equally among retailers. Yet the
pandemic has made it even clearer that if
you want to make more sales, you must do
more as a retailer.
Here are six of the most effective ways to
build your business and increase sales today
and into 2021.
Continue to plan events and promotions
You have competition coming at you from all
sides, all vying for the customers’ attention.
What are you doing about it? Just opening
your doors is not enough.
You need to be ready with events that are
locked and loaded on your calendar. In-store
events do not always automatically equate
to running a sale – although that’s an option.
You can do ‘make it-and-take it’ events,
demos, seminars, pop-ups, supplier days –
the possibilities are endless.
If you are selling online or via social media,
plan something special for any digital sales
days or upcoming holidays too.
Now is a fantastic time to create a calendar
of sales events for each month of 2021 –
both digital and physical. Plan each event,
buy product, and get your team involved.
Re-train your team
You can’t do everything by yourself; you need
a team of strong sales staff backing you up.
Be specific about what you need and be up
front about what is required to do the job.
Sanitising the store and reinforcing mask
mandates will be with us for a while and
your team needs to know what is expected of
them. That much goes without saying.
This isn’t a time to hold back, it’s time to
sell. Hold training sessions about product
and how to deliver exemplary service when
you can’t see the customer’s face.
Update your team each time a state or
community COVID-19 guideline changes
and commit to a training schedule that lasts
all year long. Adopt a ‘buddy system’ and
partner new hires with seasoned pros who
Retailers must do more to attract and close every sale.
can mentor them as they learn about the
store and the products you sell..
Create a ‘never out’ list
Every retailer should have a ‘never out’ list
of the things you need to have in stock 100
per cent of the time. During peak times of
the year, this list takes on an even bigger
significance when being out of one of these
items can literally make or break a sale.
Your POS system will likely create this list for
you, but make sure to do frequent physical
counts on the sales floor to make sure your
list is correct.
Sell, sell, sell gift cards
Gift cards are your secret weapon – and
that’s gift cards, not gift certificates. There’s
a reason for that: a recent study found
that retailers who switch from paper gift
certificates to plastic gift cards increased gift
card sales from 35 per cent to 50 per cent.
It also found that 55 per cent of gift card
recipients required more than one shopping
trip to spend the balance of their card –
which is good news for retailers!
More time spent browsing means more
chances to make another sale and turn a
repeat customer into a loyal brand advocate.
Remember, a gift card that’s presented in
a boring paper sleeve or envelope doesn’t
look like much, even if it’s for big bucks. So,
If you have
product that
has been sitting
dormant on
your shelves
while your store
was closed,
a clearance
strategy is
important.
Packing them
away for sale
next year is
almost never a
good idea
package your gift cards with a look that’s
unique to what you sell and offer your gift
cards electronically too for contactless sales.
Ensure your returns policy is competitive
If every one of your competitors accepts
returns and exchanges but your policy
screams ‘No!’, customers will go
somewhere else to shop. Note that
during the pandemic, many retailers have
lengthened return and exchange windows.
A good returns policy is even more
important when it comes to shopping online.
You’ll save more sales if you train all your
staff to politely suggest an exchange or a
gift card before offering a refund. Make sure
your policy is up to date with all relevant
legislation too.
Be prepared for markdowns
If you have product that has been sitting
dormant on your shelves while your
store was closed, a clearance strategy is
important. Packing them away for sale next
year is almost never a good idea and trying
to sell past-season product at full price isn’t
a good look.
Determine which piece will be discounted;
how much it will be discounted by, how it
will be ticketed – numbers work better than
percentages – and where it will be displayed
on the sales floor.
Unless you are having a big sale, display
clearance stock near the back of the store
so shoppers have to pass through new
displays to get to it.
You’re exhausted just reading this, right?
Being a retailer has always meant long
hours and putting out fires. Add in selling
through your website and social media, plus
keeping up with COVID-19 mandates, and
you have a lot of new hats to wear.
The only thing that makes it easier? Having
a game plan.
RICH KIZER and GEORGANNE BENDER
are retail strategists, authors and
consultants. Visit: kizerandbender.com
60 | October 2020

BUSINESS
Management
Set your business up for success in
2021 with a four-step strategy
A new year is the perfect time for a fresh start, writes DAVID BROWN, who recommends
a simple reflective exercise to organise your business priorities for the future.
There’s something about the beginning
of a new year that makes us take
stock and rethink our actions; gym
memberships have their highest joining
rate and diet programs get an influx of
new members.
It’s the ideal opportunity for a reset in
order to get ourselves back on track – to
undo those bad habits that have crept in
and make sure you’re getting the most out
of your time.
Your business is no exception. Although
it’s not spring, this is the time of year
when your business will most benefit from
a figurative ‘spring clean’.
You’ve got the rush of December behind
you, there is hopefully money in the bank,
and you may even have had a chance to
grab a few days off – if you’re lucky!
So how should your reset take shape?
Starting the process of change
Management expert Brian Tracy, who
has been a keynote speaker and business
training specialist for more than 30 years,
has identified four areas to change.
Now is an opportune time to take his
advice onboard.
Tracy breaks it down into four simple
key questions:
What should I do more of? – What are the
‘good habits’ you’ve managed to establish
in your business that you’d like to do more
often or more regularly?
Perhaps you only re-order your bestselling
products once per fortnight. Could
you step this up to once a week?
After all, the longer a best-seller is out of
the store, the more likely you are to miss a
sale you might otherwise secure.
What should I do less of? – What still
needs to be done, but perhaps could be
done by someone else? What are you
doing that could be done less often?
A failure to delegate undermines many
a good business. Are there tasks you are
responsible for that you don’t need to
Organise your thoughts by answering four management questions.
do yourself? For example, could someone
else be processing those re-orders?
Could you let a staff member deal with
something you don’t need to be doing?
Not only will this free you up to tackle
bigger issues, but it will empower another
staff member and provide a greater level
of job satisfaction.
What should I start doing? – What are
the habits you know you should have that
aren’t getting done?
You may, for example, have had intentions
of getting regular staff training sessions
underway but have kept procrastinating.
These sorts of tasks often fall under the
category of important, but not urgent.
They are valuable to your business but
because they are not pressing – your staff
can survive without the training for now –
you don’t get around to it.
The end result is a business still
functioning, but not succeeding at the
level it could.
What should I stop doing? – This can be
the toughest question to address, because
once made, a habit can be hard to break.
It’s the ideal
opportunity for
a reset in order
to get ourselves
back on track
– to undo those
bad habits that
have crept in
and make sure
you’re getting
the most out of
your time
Do you have regular distractions that are
part of your day that aren’t necessary?
One such distraction may be answering
your staff’s questions.
It may sound counter-intuitive, but
often staff already know the answer to
something – they simply need you to
give them permission to make their
own decisions.
Customer issues are also a case in point.
Do your staff come to you with every
customer problem or complaint?
Empowering them to resolve matters
up to a certain value will eliminate a
large percentage of your time spent on
unnecessary tasks. It will also make the
customer happier as their problem can
be resolved more promptly.
As a further bonus, it also allows your
staff to feel more in control during what
might be an uncomfortable situation
and that in turn gives them a sense of
resilience and confidence.
Set yourself up for success
If you’re looking for a starting point to
make some fresh changes in 2021, then
this exercise is a great place to begin.
Once you begin asking yourself these
questions, you’ll be surprised how many
areas of your business fit into each of the
four categories.
Monitoring your daily activity will soon
show up where you can start to make
meaningful changes.
The small amount of time it will take you
to complete this exercise and implement
some lasting solutions will be some of the
best time you will spend all year.
Don’t procrastinate – get started today!
DAVID BROWN is is co-founder
and business mentor with Retail
Edge Consultants. Visit:
retailedgeconsultants.com.
61 | October 2020

BUSINESS
Marketing & PR
How to evaluate your PR and marketing
strategy on a limited budget
It is critical to measure the success of PR and marketing campaigns – the challenge
is doing so in a cost-effective manner, writes WILLIAM COMCOWICH.
A large budget makes it easier to
obtain substantial media exposure
and measure the results of PR and
marketing. But most businesses don’t
have millions – or even thousands – to
spend on media measurement.
Most non-profit organisations, start-ups
and small businesses generally have
limited resources for PR and marketing,
and especially for PR measurement.
Even many large organisations rely on
shoestring budgets for media monitoring.
The following approaches can help those
with limited funds affordably measure
their PR and marketing.
Selecting the right goals
When it comes to marketing and PR, set
goals that are easy to measure. These
could cover lead generation, increased
sales, or positive media mentions in
certain publications.
The more specific the goal, the easier it
is to measure.
To find meaningful results, make sure
more general PR goals are linked to
business objectives and can be measured
accurately and regularly.
As Kathie Green, director of marketing
at mobile advertising firm TapSense,
explains, “It is important to set and
meet your quantifiable press-coverage
goals every quarter, to ensure you
stay focused on creating great content,
raising awareness for your company,
and getting return on investment from
your PR efforts.”
Many PR teams tend to track and analyse
more data than they need.
Review your metrics periodically to
eliminate outdated and unneeded data
– many are obsolete or unhelpful and
consume precious time and energy.
Focusing on just a handful of key metrics
can bring clarity and save time.
The rule of thumb is to use data points
that show how the PR campaign helped
Dive into the data to find out if your campaign is reaching its targets.
attract customers or potential customers,
boost sales conversion, or support other
business objectives.
The first data points to go should be
‘vanity metrics’, such as numbers of
Twitter followers and Facebook likes.
These are easy to report and boost
the ego, but they don’t materially help
improve business results.
Instead, businesses should focus on
how these metrics increased sales – for
example, how many followers shared
links to your website or clicked through
from an Instagram post.
Mara Conklin, founder and president
of Clarus Communications, advises
businesses to look beyond traditional
media metrics to find ways to
meaningfully and affordably
measure PR success.
“Because good PR positively impacts
attitude and perception, it’s okay to
look for ‘soft’ measurements that really
contribute to the company,” she writes.
Ultimately, it all comes down to one
thing – does the metric help you make
decisions? When you see the metric, do
you know what you need to do?
When it comes
to marketing
and PR, set
goals that
are easy to
measure. These
could cover
lead generation,
increased sales,
or positive
media mentions
in certain
publications
Saving time and money
One of the most cost-effective methods
of measuring the success of your
marketing and PR strategy is to use
data you already have.
If one goal is increased traffic to the
website, examine web analytics for longterm
traffic trends, such as the number
of returning visitors, time on page, and
the most popular pages.
Social media platforms also typically
report engagement levels, the number
of followers, and more.
However, keep in mind their limitations;
social media platforms often include
analytics that are designed to encourage
continued use of the platform, rather
than offering useful data.
Other services may not provide the full
scope of information that your business
requires – for example, Google Alerts is
not reliable as a media monitoring tool.
Consider using a dedicated low-cost
media monitoring tool instead.
Marni Zapakin, vice-president at PR
research firm Ketchum Global Research
& Analytics, says, “While no tool is
perfect, tools today leverage web crawling
technology that scrapes the internet for
comprehensive media tracking of online
news and certain social channels.
“You can integrate external data to
have everything in one, easy-to-use
dashboard,” she adds.
The bottom line is that small businesses
and organisations can now measure
their PR and marketing efforts without
spending huge sums by focusing on the
correct metrics and using an effective
monitoring tool.
WILLIAM COMCOWICH is is founder
and acting CEO of Glean.info by
CyerAlert. Visit: glean.info
62 | October 2020

BUSINESS
Logged On
Make the most of Instagram Stories by
creating a structured content plan
One of the most versatile and dynamic ways to engage with potential customers is through
Instagram Stories – but it requires proper planning, writes SIMON DELL.
Instagram stories may have only been
around since 2016, but in a short time
they’ve gone from a fun gimmick to a
powerful digital marketing tool. They
can help engage with your audience and
boost sales.
However, like everything, it all works better
with a plan. Here’s how to create a content
plan for your Instagram Stories.
Keep it on-brand
Instagram Stories give you a lot of freedom
in terms of what you’re posting, and
whether it be video, text or photos, you
want to make sure your posts align to your
brand’s unique style. If you are consistent
with your themes and aesthetics, you can
help build more brand awareness – that is,
customers are more likely to remember you
and perceive you in a positive light.
One simple first step is to think about the
colours associated with your brand and
incorporate this into your Instagram Stories.
For example, if in-store signage is red, use
that same shade of red in your Stories.
Consider the font style and colour, filters –
stick to one or two – background colours,
text blocks, and stickers. Obviously, all
photos and videos will look different, but
matching these other elements ensures
your content looks cohesive.
Understand your goals
Before you start planning your content,
think about what you are trying to achieve.
Is it all about generating sales? Maybe you
simply want to build brand awareness or
increase your follower count – and therefore
your pool of potential customers.
Once you determine what your goals are,
you can start planning content. Ideally,
each Story should have a single goal to
avoid confusion. Bear in mind that you can
work towards different goals with separate
Stories, which appear at the top of your
business’ Instagram profile.
Selecting a content type
There are three types of posts that can make
up an Instagram Story – photo, video, or text.
Entertaining, engaging, and informative Stories will produce real results.
Photos and text slides run for six seconds,
and videos can be up to 15 seconds.
When using photos, you can add features
like stickers, text, or emojis to make the post
look more dynamic. You can also add videos
to a photo post with certain editing apps,
such as Canva and Wave.video.
Again, there’s no perfect method – just
keep the content consistent, entertaining,
and useful for your audience. You may
prefer a four-post Story with just photos,
or a six-post Story with a mix of photos,
video, and text.
The only must is to ensure the call to action
– that is, any invitation to interact, such as
“Shop”, “Discover”, “Try”, or “Watch” – isn’t
always on the last post in the Story. People’s
attention will wane, and you want your key
message to reach as many as possible.
Mix it up
The beauty of Instagram Stories is that
you can use multiple posts and slides to
tell a story.
For example, on different days of the week
you could:
• Advertise a product and direct people to
visit your website
• Share images and videos of your
business’ everyday routine to show your
human side
There are plenty
of features
you can add
to Instagram
Stories that
invite your
audience to
engage with
your posts,
such as polls,
question-andanswer
boxes,
emoji sliders,
quizzes, and
countdowns
• Provide your followers with some lighthearted
entertainment
• Share useful tips relating to your products
or industry
One important point is to not focus on selling
exclusively. If all your Stories advertise
products and ask people to buy, they will fall
flat. Remember that engaging with people is
an integral step towards future sales.
There are plenty of features you can add to
Instagram Stories that invite your audience
to engage with your posts, such as polls,
question-and-answer boxes, emoji sliders,
quizzes, and countdowns.
Not only is this fun and interactive, but it
also opens up a connection. Depending on
your reach, you can even contact those who
engage and start a conversation.
Frequency and scheduling
Instagram Stories disappear after 24 hours,
so if you post a two-slide story in the morning,
and add another two slides the next day, the
first two will ‘drop off’ before the newer ones.
For a full Story with an intended purpose, it’s
best to post the whole thing at once.
Next, think about when your intended
audience is most likely to see your Stories.
After some time, you will get a feel for the
time of day or night when you get the highest
number of views and reactions.
Unfortunately, it’s difficult to ‘schedule’ an
Instagram Story through the app. However,
there are separate digital tools, such as
HootSuite or Later, which allow you to create
and edit Instagram Stories and schedule
them to be posted at a certain time.
Your content should be easy to read,
enjoyable and informative. If you target each
of your Stories towards a specific goal, you
can quickly build your audience and turn
Instagram into an easy, and very valuable,
marketing tool.
SIMON DELL is co-founder and CEO
of Cemoh, a Brisbane-based firm that
provides marketing staff on demand.
He specialises in digital marketing and
brand management. Visit: cemoh.com
63 | October 2020

My Bench
Leon Raper
Australian Diamond Company (ADC), Melbourne VIC
Age 56 • Years in Trade 30 • Training Trade-qualified diamond setter (South Africa), Diploma of Jewellery & Object Design (Melbourne Polytechnic)
First job Apprentice diamond setter at Edward Ber in South Africa, 1981 • Other Qualifications Licensed real estate agent (Queensland)
SIGNATURE PIECE
MORGANA OVAL HALO
ENGAGEMENT RING
PRIVATE COMMISSION
In this ring, an 18-carat rose gold-toned morganite is surrounded
by small round brilliant-cut diamonds. As a simple, classic halo
ring, it’s timeless and guaranteed to draw attention.
4FAVOURITE GEMSTONE Padparadscha
sapphire. These sapphires are rare and not easily
available – especially unheated ones that are
the colour of a tropical lotus flower. The more
saturated the colour, the more valuable they are.
4FAVOURITE METAL It depends on how the
metal is used; it’s white gold when setting stones,
yellow gold when manufacturing or crafting a ring,
and platinum for longevity.
4FAVOURITE TOOL Heavy duty ring bender pliers.
They bend just about any thickness of precious
metal with ease.
4BEST NEW TOOL DISCOVERY GRS Graversmith
– I never knew how much easier it makes your
work, especially setting work!
4BEST PART OF THE JOB Mastering a technique
that you once found hard to do.
4WORST PART OF THE JOB Realising that you
misunderstood an instruction on a job packet only
after it’s completed.
4BEST TIP FROM A JEWELLER If your gut tells
you that something is not correct with a job
order, follow up with whoever is responsible for
that order.
4BEST TIP TO A JEWELLER Clean your
workbench at the end of each day. There is nothing
worse than starting your day having to face an
untidy bench.
4BIGGEST HEALTH CONCERN ON THE BENCH
Fine dust particles – especially abrasive powder
coming from the sanding disc and pre-polishing
waxes like Tripoli Lustre Polishing Compound.
4LOVE JEWELLERY BECAUSE It’s in my blood! My
father was a diamond cutter/polisher and from a
very young age, I would go with him when he visited
various people in the industry. That is how I was
exposed to the diamond and jewellery business.
64 | December 2020

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OPINION
Soapbox
There are many e-commerce opportunities
for retailers – and suppliers are here to help
With the acceleration of e-commerce during COVID-19 lockdowns, the time is right for retailers
to integrate and invest in this side of their business, writes JOHN ROSE.
A successful online presence has become
an increasingly important part of any
jewellery retailer’s business. To allow
customers to browse and shop at your
store wherever they are, and whenever
they wish, exponentially increases the
potential for sales.
E-commerce has changed dramatically
over the past 10 years, and so has
consumer behaviour towards online
purchasing.
Gone are the days where consumers went
online simply to get a bargain. Most sites
offering cheap products are not trusted
and have lengthy delays in delivery of the
product, without any ability to talk to anyone
about delivery times, defects, returns,
etcetera. Customers do not want that.
The three main reasons why customers
buy online today are convenience, trust and
speed. Consumers, especially Australians,
prefer to buy from a trusted source that
they know. This is why Amazon has had a
far more difficult time making an impact on
the Australian market than it has overseas.
People are shopping from their desk
during their lunch break, on the bus, before
breakfast, late at night – whenever it is
convenient for them to do so.
So, how can jewellers capitalise on this
‘new normal’?
As a supplier to the jewellery industry, West
End Collection gets a lot of feedback from
retailers. Sell-out reports show major retail
operators selling seven to 10 times more of
our brands through their online store than
they do in their largest flagship store.
Why is this? It comes down to those three
factors of convenience, trust and speed.
Customers know that they can quickly and
easily buy a quality product online from
a trusted retailer that, should there be a
problem, they can talk to directly and drop
in to see should the need arise.
That part is critical: consumers want to
buy from a retailer they recognise, that
has a real presence here in Australia, and
that they can easily contact for customer
service.
The greatest advantage that physical stores
have over purely online stores is their loyal
existing customers, with whom they often
have a personal relationship. So, in order to
succeed, an online presence should be an
extension of the bricks-and-mortar store.
You don’t need to spend thousands of
dollars chasing potential customers, trying
to convince them to buy from you. The
easiest way to build your web sales is to
entice your existing walk-in customers –
not through discounts, or special offers, but
with the convenience of online shopping.
Starting an online store is quick, easy
and inexpensive – there are services such
as Shopify which do all the work for you.
The monthly rates for these services are
competitively priced and the extra features
available allow you to add more functions to
encourage sales.
To make the process even simpler,
suppliers – including West End Collection
– often offer digital integration with your
website, which allows you to upload
batches of watches and jewellery to your
website at the click of a button.
West End’s ‘Integrator’ service also
connects directly to our warehouse and
automatically updates retailers’ websites
when an item is out of stock, or when a
new item becomes available. Many of our
retailers are also offering drop-shipping,
which means fewer sales are lost due to
The greatest
advantage
that physical
stores have over
purely online
stores is their
loyal existing
customers, with
whom they often
have a personal
relationship.
So, in order to
succeed, an
online presence
should be an
extension of
the bricks-andmortar
store
lack of stock.
When an order comes in for an item that’s
not in store, the retailer simply ‘pushes’ the
delivery on to the supplier, which then ships
the item directly to the customer.
The other benefit to retailers of having
a quality website is being able to offer a
broader range of products than they could
carry in-store.
If a customer is in the store looking for a
particular piece of jewellery or a specific
watch, the retailer can simply show them the
item on the website. If the customer likes the
item, it can easily be ordered and be sent to
the store – no lost sale.
While it may seem counterintuitive,
customers often like to talk to someone
while they are browsing the retailer’s
website. This creates a genuine personalised
shopping experience and allows them to ask
for advice and guidance before they make
their purchase.
Further integrating the online-offline sales
process, retailers can use programs such
as Podium which allow them to send a text
message to the customer while they are
in-store, or after an online sale, prompting
them to leave a Google review.
These positive reviews boost the retailer to
the top of Google searches and add to their
online credibility, leading to more sales.
Making a website an extension of a physical
store is now becoming the standard, and
there are many clear benefits for retailers.
Name: John Rose
Company: West End Collection
Position: General manager
Location: Melbourne, VIC
Years in Industry: 23
66 | December 2020

RETAIL TRADE DAYS COMING IN 2021
to a city near you!
ewellery
• TRADE DAYS •
Gift
Jewellery
• TRADE DAYS •
BRISBANE
SYDNEY
PERTH
ADELAIDE
February 13 – 14, 2021
Brisbane Convention Centre
Southbank
February 20 – 21, 2021
ICC Sydney
Darling Harbour
March 13 – 14, 2021
Perth Convention
& Exhibition Centre
March 20 – 21, 2021
Adelaide
Showground
We are ready to get back to business and recognise the importance
to reconnect quickly and efficiently.
Introducing the Retail Trade Days, giving wholesalers an easy and affordable opportunity to connect
with local retailers, easy access to an event, with a cross section of suppliers in their own state.
The Retail Trade Days will be a marketplace of leading jewellery suppliers, all trading from a trestle table
with a maximum cap of 2 tables. It is designed to ensure that participants focus their offer on samples of
their latest new releases, or dead stock they are looking to clear. With exhibitor packages starting at
only $1,100, don’t miss out on bouncing back with these intimate and local focused events.
Get in touch!
If you have any questions, or want to secure your involvement contact the team at Expertise Events.
Phone: (02) 9452 7575
Email: jewelleryfair@expertiseevents.com.au
Organised by:
Est. 1990

Australian Argyle pink diamonds are beyond rare and amongst the most precious diamonds in the world.
Pink Kimberley jewellery is crafted from an exquisite blend of white diamonds and
natural Australian pink diamonds from the Argyle Diamond Mine, located in the East
Kimberley region of Western Australia. A coveted Argyle pink diamond Certificate
accompanies all Pink Kimberley pieces containing pink diamonds greater than 0.08ct.
PinkKimberley.com.au
E pink@samsgroup.com.au W samsgroup.com.au P 02 9290 2199
SAMS GROUP
AUSTRALIA