Jeweller - December 2020

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