Jeweller - August 2022

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
AUGUST 2022
Unlocking Profit
LEARNING THE SECRETS TO SETTING
THE BEST RETAIL PRICING
Show & Tell
ALL THAT IS NEW & EXCITING
AT THE SYDNEY FAIR
Changing Diamonds
ARE THERE IRREVERSIBLE SHIFTS
IN THE DIAMOND MARKET?
SAMS GROUP
AUSTRALIA

Sapphire Dreams celebrates the natural wonders Australia has to
offer, in the form of unique, vibrant Sapphires. Expertly cut and
crafted, every stone has passed through the hands of our skilful
gem cutters. Mined on Australia’s east coast, Sapphire Dreams
stones are sustainably sourced and crafted into immaculate,
luxurious jewellery pieces.
Our Australian sapphire jewellery is available in 9ct or 18ct White,
Rose or Yellow Gold, with many designs enhanced by sparkling,
elegant white diamonds.
SapphireDreams.com.au
Become a stockist today
02 9290 2199

Exquisite Argyle pink diamonds, exceptional
designs by Pink Kimberley
Become a stockist today
02 9290 2199
PinkKimberley.com.au

Find comfortable glamour in Blush Pink diamonds, elegant
designs, showcasing a beautiful glimpse of Australian history.
Become a stockist today 02 9290 2199

Solid Gold Collection
Become a stockist today
02 9290 2199
Established for over five decades, Classique is renowned for high quality,
elegant and ageless timepieces. Classique’s Solid Gold range features wrist
and pocket watches, with the option for a diamond bezel. Every piece is
engineered with Swiss Quartz movement, for the ultimate luxury. Find stylish,
modern, classic, and timeless pieces at Classique.
ClassiqueWatches.com

(02) 9417 0177 / dgau.com.au
baume-et-mercier.com
Riviera Automatic, 42mm

Helping you shine
yesterday, today
& tomorrow.
YOUR LEADING SUPPLIER OF PINK ARGYLE, WHITE DIAMONDS & DIAMOND JEWELLERY
worldshiner.com

To schedule an appointment, please contact us:
L. J. WEST DIAMONDS INC. | 589 5th Ave, Suite 1102 | New York, NY 10017, U.S.A. | T +1 212 997 0940
L. J. WEST AU PTY LTD | Level 9, 225 St Georges Terrace | Perth, WA 6000, Australia | T +61 40 997 6981

Info@LJWestDiamonds.com | www.LJWestDiamonds.com | www.ScottWestDiamonds.com

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innovation, technology, strategic marketing,
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With clarity and confidence,
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What are you waiting for?
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LEARNING THE SECRETS TO SETTING
THE BEST RETAIL PRICING
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
ALL THAT IS NEW & EXCITING
AT THE SYDNEY FAIR
AUGUST 2022
ARE THERE IRREVERSIBLE SHIFTS
IN THE DIAMOND MARKET?
AUSTRALIA
AUGUST 2022
Contents
This Month
Industry Facets
17 Editorial
20 Upfront
24 News
59 Show & Tell
36
39
110
112
10 YEARS AGO
Time Machine: August 2012
LEARN ABOUT GEMS
Pearls V: Exotics
MY BENCH
Yuki Mathwin
SOAPBOX
William Gant
59 SHOW & TELL
Fair preparation
Features
4The International Jewellery Fair will
take place in Sydney for the first time since
2019 later this month. Learn about the
new products on offer from suppliers.
41
49
94
RETAIL PRICING FEATURE
Find the right price for the right product
BUSINESS FEATURE
Three ways to rejuvinate a stagnant business
DIAMOND FEATURE
Lamenting natural diamond producers' missed income
Better Your Business
41 RETAIL PRICING FEATURE
Fine line
4Selecting the wrong product price
is a disaster for retailers. Too high?
Unachievable for customers. Too low?
The wrong message is communicated
about the quality of the product.
SAMUEL ORD explores the
complicated world of retail pricing.
104
106
107
108
109
BUSINESS STRATEGY
Customer service will make or break a business. KIZER AND BENDER explains why.
SELLING
DAVID BROCK explores the importance of quality over quantity in sales.
MANAGEMENT
Consumer behaviour myths are widespread. BRI WILLIAMS debunks common beliefs.
MARKETING & PR
SHANE O'NEILL puts the latest social media craze under the microscope.
LOGGED ON
MANDY EDWARDS outlines the perils of failing to update your social media strategy.
39 LEARN ABOUT GEMS
Exotics
4Extravagant pearls
come in a wide range
of colours, varieties
and forms, and some of
the world's rarest and
most unique come from
unexpected sources.
FRONT COVER Proudly Australian-owned and
operated, this year SAMS Group celebrates 55
years of dedication to innovative new brands,
inspiring creative trends, and delivering quality
service. Since its humble beginning in March of
1967 until today, SAMS Group continues to be a
market leader in luxury jewellery and impeccable
design involving high-quality Australian
gemstones. Visit: samsgroup.com.au
Unlocking Profit
Show & Tell Changing Diamonds
SAMS GROUP
August 2022 | 13

T H E W A T E R C H A M P I O N
The new Delfin Mecano is forged from the same
DNA as its brilliant 1960s forerunner, able to
function perfectly at up to 200m deep, thanks
to the Edox Double O-ring seals. Edox has
given the watch face an eye-catching makeover
with a skeletonised movement exposing
some of the intricate motions of the stunning
Calibre 853. Delfin – The Water champion.
(02) 9417 0177 | dgau.com.au

Editor’s Desk
And it’s another turn of event!
The industry is buzzing ahead of the most eagerly anticipated jewellery fair yet.
ANGELA HAN says everything points to this being a meeting of deep significance.
I am sure that when the exhibitors at the
last International Jewellery Fair were
packing up their stands on the final day
in 2019, no one would have thought the
next time they would be gathering in
Sydney would be in 2022!
Following a three-year hiatus caused
by the COVID-19 global pandemic, the
Sydney trade fair is back.
While there have been some smaller,
boutique-style events during 2020 and
2021 when it looked like the pandemic
was only passing through, nothing
compares to a full-scale jewellery fair at
Darling Harbour.
If there is anything that we learned
during the past three years, it’s how
important face-to-face business events
are, and when it comes to buying events
– where retailers meet one-on-one with
suppliers – it’s even more vital.
This was more true for the jewellery
industry where the touch and feel of a
product plays a major part in the financial
transaction – from determining how
light plays off the facet of a gemstone,
to reviewing the finishing on a ring with
fine craftsmanship, we quickly discovered
that business was better when we could
engage all senses.
That was never more evident than with
the various attempts to organise virtual
trade shows that effectively left us with a
permanent 'Zoom hangover'.
Not only did we all become zoomed
out by having to attend or participate
in, webinars, virtual events and trade
shows but the ability to switch off and not
have our engagement metrics tracked
constantly became exhausting.
Aside from the fact that the organisers
of these events always managed to claim
they were successful, I’ve still yet to
hear of any exhibiting suppliers say that
they’re itching to do another virtual fair
because orders were through the roof.
In fact, the opposite was often true
as exhibitors felt that they’d wasted
resources and, in some cases, been
duped. After all, time and money
are luxuries that are in short supply,
especially in this economic climate!
While we have been somewhat fortunate
in Australia compared with many other
countries, the international trade show
industries are still slowly getting back
on their feet.
While JCK Las Vegas seems to have
basked in success with its 17,000 visitors
and 1,800 exhibitors, it’s worth sparing a
thought for Hong Kong. It may well take
it some time to regain its dominance
as the premier destination location for
international jewellery buyers.
It should also be remembered that the
organisers of the upcoming Jewellery &
Gem World (JGW) Fair shifted this year’s
exhibition from Hong Kong to Singapore.
It’s set to take place on 27-30 September
and is said to be a more ‘accessible’ inperson
experience.
And while organiser Informa Markets
hopes the change of venue is a one-off
arrangement, we know that anything can
happen these days, as evidenced by its
recent decision to change locations due
to pandemic-related travel restrictions.
But back to our own jewellery fair, which
we will be more eagerly anticipating this
year than any before.
Busy and bustle at the fair
Not only are the suppliers preparing for
their first fair in three years, the buying
groups will be out in force.
Nationwide has made some major plans
for its presence at the Sydney fair. The
From
determining
how light plays
off the facet of
a gemstone, to
reviewing the
finishing on a
ring with fine
craftsmanship,
we quickly
discovered that
business was
better when we
could engage
all senses.
Annual Awards Dinner will be held on the
Sunday during the fair while a members’
night out to watch the Moulin Rouge
musical has also been organised.
In addition, workshop visits to tour the
facilities of Chemgold and Palloys have
been planned for members. Meanwhile
on the fair floor, Bill Sechos of Gem
Studies Laboratories will conduct four
diamond grading courses exclusively for
Nationwide members, alongside a dozen
other education training sessions.
Independent Jewellers Collective will
focus its activities around the theme:
A Brilliant Christmas and is set to host
a special members meeting over the
two days preceding the IJF where it will
present its 2022/2023 Marketing Calendar
and conduct Brilliant Christmas training
workshops where the keynote address
will be on how to market your business
in today’s landscape.
Amidst a host of other exhibitors’
promotions, we celebrate some special
anniversaries of cornerstone Aussie
companies, like Duraflex Group Australia
(60 years) and SAMS Group (55 years)
which have also been exhibiting for many
decades at this same show.
Fair organiser Expertise Event will also
host retail strategist Debra Templar, who
will deliver six motivational and pragmatic
sessions for store-owners and managers,
and to top it off, the ever-popular Happy
Hour will take place on the Saturday
evening, before the fair closes.
As always, the Jeweller team is looking
forward to greeting you at the fair with
a magazine and copy of the Trade Fair
Directory!
Let’s make it an event to remember!
Angela Han
Publisher
August 2022 | 17

Dedicated to innovating new brands, leading creative trends,
Dedicated to innovating new brands, leading creative trends,
preserving integrity and delivering quality
preserving integrity and delivering quality
With over 55 years of experience within the industry, Sams Group Australia is the
market leader in delivering quality timepieces and stunning jewellery to the Australian public.
In March 1967, Sam Der Bedrossian founded
Sams Watchmaker Jeweller Pty Ltd. To this day,
the company remains a fully Australian-owned
family business – a company that he still faithfully
manages.
Within a few years, he began to import movements
from Switzerland to design and assemble his own
watches under the brand name “Classique”.
Sam is still passionate about every detail and
design of his watches, and remains completely
involved in every aspect, Sam Der starting Bedrossian with AM the
selection of world FOUNDER, quality parts MANAGING and components
DIRECTOR
that make up a Classique watch.
In 1991, Steve Der Bedrossian joined the family
business to help create and manage Classique
Watches. While gaining experience in the industry,
Steve In March had 1967, a vision Sam Der to extend Bedrossian further founded into the 100
domain per cent of fine Australian-owned, diamonds and Sams jewellery Watchmaker with an
Jeweller Pty Ltd., a company that he still faithfully
manages to this day.
Within a few years, he began to import movements
from Switzerland to design and assemble his own
watches under the brand name “Classique”.
From Humble Beginnings
From Humble Beginnings
emphasis on Australian materials that represented
the very best of Australia and its rare beauty.
In 2010, the brands Pink Kimberley Diamonds
and Blush Pink Diamonds were established. The
use of Australian pink diamonds fell well within
the scope of company values of using only local
materials – and so the vision became creation.
With both brands being well-received by the
industry and consumers, the Australian Pink
Diamond Exchange and Sapphire Dreams were
launched
Steve Der
in
Bedrossian
2021 to further emphasise the
CHIEF EXECUTIVE OFFICER
importance and company belief in the quality and
rare beauty of Australian products.
Sams Group is proud to celebrate 55 years in the
industry and would like to thank the trade for the
decades emphasis of on support. Australian materials that represented
We
the
look
very
forward
best of
to
Australia
continuing
and its
our
rare
service
beauty.
to you.
In 2006, the brands Pink Kimberley Diamonds
and Blush Pink Diamonds were established. The
use of Australian pink diamonds fell well within
the scope of company values of using only local
materials – and so the vision became creation.
Sam is still passionate about every detail and
design of his watches, and remains completely
involved in every aspect, starting with the
selection of world quality parts and components
that make up a Classique watch.
In 1991, Steve Der Bedrossian joined the family
business to help create and manage Classique
Sam Der Bedrossian AM
Watches. While gaining experience in the industry,
FOUNDER, MANAGING DIRECTOR
Steve had a vision to extend further into the
With both brands gaining rapid popularity and
interest to both retailers and consumers, the
Australian Pink Diamond Exchange and Sapphire
Dreams were launched in 2021 to further
emphasise the importance and company belief in
the quality and rare beauty of Australian products.
Now with multiple landmark brands, Sams Group
Steve Der Bedrossian
is proud to celebrate 55 years in the industry
CHIEF EXECUTIVE OFFICER
and continue to serve the industry with the most
beautiful Australia has to offer the world.
samsgroup.com.au
orders@samsgroup.com.au • samsgroup.com.au •
02 9290 2199
02 9290 2199

SSAMS A GROUP O U P
AAUSTRALIA
U S T R ALI A
ESTABLISHED SINCE 1967
Classique Watches was founded in 1967, making
it the first brand within Sams Group Australia.
The luxurious timepieces are fitted with Swiss
Movements, featuring a design to suit any style.
Combining the natural beauty of Argyle pink
diamonds with award winning Australian
contemporary design. Elegance and luxury
are epitomised in Pink Kimberley’s pieces.
Addressing market opportunity and high
demand, Blush Pink Diamonds was created
on the principle that jewellery with natural
pink Australian Argyle diamonds should be
affordable and accessible to every price range.
APDX is Australia’s first digital marketplace
for buying and selling Argyle pink diamonds,
with the expert advice of gemmologists and
experienced jewellers on your side.
Taking inspiration from the natural wonders
of Australia, Sapphire Dreams showcases
incredible Australian Sapphires, set in modern
and luxurious designs.
Become a stockist today

Upfront
#Instagram hashtags to follow
Alpha Order
#iconicjewellery
5,440 POSTS
#dreamring
213,452 POSTS
#weddingjewelry
1,778,955 POSTS
#engagementring
7,201,778 POSTS
#australianopals
60,004 POSTS
HISTORIC GEMSTONE
Marie-Louis Diadem
#pearls
7,410,009 POSTS
#blackjewelry
97,111 POSTS
#goldnecklaces
151,003 POSTS
#ringinspo
105,999 POSTS
#winterjewellery
39,155 POSTS
4The Marie-Louise Diadem is a tiara
designed to hold 79 emeralds and
more than 1,000 diamonds, totaling
approximately 700 carats. The tiara is
a scrolling design of palmettes and
medallions in gold and silver. The tiara
was commission by Napoelon Bonaparte,
Emperor of France, as a gift to his second
wife, Marie-Louise of Austria. Following
her death, ownership of the tiara is a hotly debated topic.
Marie-Louise bequeathed the tiara to one of two people.
According to The Smithsonian, her aunt Archduchess Elise was
the recipient. The Louvre states that her cousin, Leopold II, Grand
Duke of Tuscany, was the heir. A descendant sold the tiara to Van Cleef
& Arpels in 1953. The emeralds were sold individually and in 1962,
were replaced with Persian turquoises totaling 540 carats. The Tiara is
currently on display at The Smithsonian in Washington DC.
Trend Spotting
4The pendulum has swung back in
favour of clip-on earrings after more
than four decades in the wilderness.
Gucci, Dolce & Gabbana, Dior, Oscar
Dela Renta and beloved designer
Alessandra Rich are all showcasing
new clip-on products US actress
Jennifer Garner, star of Alias and 13
Going On 30, recently revealed she's
long been a fan of clip-on earrings.
Image credit: @gwynethpaltrow
Stranger Things
Weird, wacky and wonderful
jewellery news from around the world
Rodents steal gold
4In a bizarre incident reported
from Mumbai, India, police
officers claim to have recovered
gold stolen by rats. A 45-year-old
woman informed the police that
approximately 100 grams of gold
had gone missing. Investigating
officers were led to a garbage
dump and after examining CCTV
footage, observed rodents entering
the abandoned bag, taking the
gold, and heading into a nearby
drain.Police recovered the gold
ornaments within a gutter nearby.
Closing after 277 years
4Thurlow Champness, a
jewellery store in Suffolk, Britain,
has confirmed the business
will cease operating soon. The
business has been run out of
the same store for 277 years.
The store opened in 1745, with
watchmaker George Lumley
selling watches, diamond jewellery,
gold pieces and clocks. Current
owner Trevor Salt is retiring after
more than four decades work.
Digital Brainwave
Thin as can be
Graff has been
taught the
importance
of prioritising
cybersecurity
measures.
4UK-based jewellery store Graff has
been given a firm lesson in the importance
of cybersecurity after paying more than
$US7 million in random to hackers. The
incident became public in early June when
representatives of Graff appeared in court in
London to sue an insurance provider.
According to the lawsuit, Graff was attacked
by Russian ransomware last year, leading
to threats to publish private client data. A
Graff spokesperson confirmed that a payout
was negotiated with the hackers to prevent
damage to customers.
Campaign Watch
4American actress Gwyneth Paltrow
has found herself under fire once again,
this time over the launch of a new
''everyday'' jewellery collection.
The 49-year-old recently launched a
jewellery line simply titled 'G' and was
branded as 'out of touch' by users
on social media. Marketing for the
jewellery branded the products as
''everyday'' despite featuring a
$7,900 gold necklace featuring
1.96-carat diamonds.
4Swiss watch manufacturer
Richard Mille has launched the
world's thinnest mechanical watch.
The Richard Mille Ferrari Ultra-Thin
has a profile of just 1.8mm, which
is approximately the thickness of a
human hair. The previous record for
world's thinnest watch was held by
Bugari's Octo Finissimo Ultra.
150 editions intricately crafted
titanium Richard Mille watch will be
released, retailing at approximately
$US1.7 million.
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 Angela Han angela.han@jewellermagazine.com • Journalists Samuel Ord samuel.ord@jewellermagazine.com | Richard Chiu editorial@jewellermagazine.com
Production Coordinator Lauren McKinnon art@befindanmedia.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.

sales@dsmjewels.com
DSMPACIFIC.COM
SYDNEY
Suite 911-912, Level 9, 155 King St.
The Trust Building Sydney,
NSW 2000 | 02 9232 1410
MELBOURNE
Suite 605A, Level 6, 227 Collins St.
The Wales Corner Building Melbourne,
VIC 3000 | 03 9650 3166

Natural Certified Diamonds | Natural Loose Diamonds
Lab Grown Certified Diamonds | Natural Fancy Colour Diamonds
Natural Matching Pair Diamonds | Natural Black Diamonds
Natural Diamond Jewellery | Lab Grown Diamond Jewellery

News
Jewellery fair scammers back in business as world exits pandemic
Jeweller decided to engage with one of the
scammers offering the attendee list for the
International Jewellery Fair. We asked for the
details of this list and the cost.
We were supposedly communicating with Henry
Johnston, a database and list expert from
an international research company based in
Pennsylvania, USA. Even though our email replies
were being sent during Australian business hours,
they were being quickly answered although it was
meant to be 3am in the US.
Jewellery show scammers are back in force as the
world ‘reopens’ after the global pandemic.
The scams – which were increasingly prevalent
before COVID forced the closure of most
international trade shows all around the world
– are very simple.
These scams tends to target three things: attendee
lists, fair directories and hotel reservations.
Attendee lists
This is the most common scam and involves
exhibitors being contacted by people who claim to
have an upcoming show’s attendee list. For a price,
you buy complete contact details of every visitor -
before they even attend the event!
The scammers will often use the show name,
logo and/or show organiser’s name in the
email signature.
Jeweller is aware of a number of emails
currently circulating stating, “We are offering
you the attendees contacts list of IJF
International Jewellery Fair 2022: Are you
interested to purchase?”
The email goes on to list attendee categories
including jewellery retailer, department store buyer,
watch or clock retailer, duty free retailer, jewellery
manufacturer and so on.
Fair directories
This scam entails exhibitors receiving an email
to update their company information in the
‘International Fairs Directory’, or another name
similar to the name of the exhibition they are
scheduled to attend.
These emails appear at a time when suppliers
are focusing on the trade show’s planning.
A few years ago, a number of Australian jewellery
suppliers got caught by this scam when they found
themselves agreeing to pay €1,212 ($AU1,796) to
a company each year for three years for the
‘privilege’ of advertising in a directory, which had
no connection to any trade show.
Hotel reservations
This scam has not been as prominent in the
Australian jewellery industry; however, again it’s
very simple: exhibitors are offered ‘too good to
refuse’ hotel deals only to discover they booked
rooms through a third-party room broker.
People arrive at a hotel only to find that no booking
exists and there is no recourse for the payment
of rooms. These ‘brokers’ falsely imply they are
affiliated with show management and secure
deposits and/or full prepayment fraudulently.
Gary Fitz-Roy, managing director Expertise Events
said that not only does he get calls every year from
jewellery exhibitors about the attendee list being
sold, he said his own business gets offers to buy
the attendee list of his own show!
“It’s an old scam and no one running it is very
sophisticated. The scammers copy the exhibitors
list contact details from our website, as well as our
details as the fair organiser, and then try to sell us
an attendee list that they don’t have.
“In fact, some years ago, when we launched
a new exhibition in another industry, the
scammers were trying to sell the attendee list
of a show that had never taken place. It was the
first event,” Fitz-Roy said.
He advises exhibitors to ignore these emails:
“Suppliers and exhibitors and, more importantly,
visitors [retail buyers] need to be assured that
Expertise Events does not sell our database, the
scammers have no access to it.
“It’s simply a fraud, just another internet scam.”
Investigation
This publication receives many emails attempting
the attendee list scam, and a quick search of the
email address and/or adding the URL address of
the, so called, list broker will quickly expose the
scam. That is, while the email address can be, say,
john.smith@exhibitorlists.com, there will be no
website for the business Exhibitorlists.
We asked Johnston to call our office to discuss
the details. We were told the attendee list for a
show that had not taken place included the names,
addresses, phone numbers and email addresses
of 15,237 jewellery buyers scheduled to attend the
Sydney trade fair.
When the number of buyers was queried, the man –
who revealed he was an Indian national - confirmed
that the figure was correct. He also confirmed he
was located in Pennsylvania, the address on the
company’s website, and explained that “he is on call
to answer questions, even at 3am in the morning!”
At this point, we asked if he could tell us how many
jewellery stores there are in Australia according to
his “extensive database of jewellery buyers”.
He said he could provide that figure but first, he had
to “interrogate the database” at which point there
was fast and seemingly loudly exaggerated typing
(banging) on a keyboard to signify search queries.
The answer came back “more than 40,000”.
Jeweller confirmed the question to Johnston and
he replied, “Yes, that’s correct, there are more than
40,000 independent jewellery stores in Australia.
And we have all their contact details.”
For the record, the total number of jewellery stores
in Australia, including chain stores such as Michael
Hill, Prouds, and so on, is fewer than 3,000!
Following further discussion - including a great
many more outrageous claims - we agreed to buy
the list.
We were presented with an invoice for $US500
listing the payment details for a National Australia
Bank account; however; the payment had to
be made via a specific Western Union office in
Sunshine, a western suburb of Melbourne.
Needless to say, the payment was never made,
even though we assured Mr Johnston that it had.
Fitz-Roy said the only way to deal with
scammers is not to reply. “It happens on all
of our shows and happens to other event
organisers all around the world.
“Expertise Events has the largest database of
jewellery retailers and buyers by far. We would
never sell, rent, or give away our lists.”
24 | August 2022

News
June jewellery sales achieve mixed results; need for planning pushed
Australian jewellery sales saw mixed results across
product categories in June with the performance
roundup to the end of the financial year influenced
by impacts of the COVID-19 pandemic and
weather events, according to the latest Retail Edge
Consultant’s market report.
Comparative sales dollars slightly increased by 1.9
per cent in June compared with the same period
last year but marked a significant increase by 19
per cent based when compared to June 2020.
An increase of 3.5 per cent was noted for
comparative units sold when measured against
June 2021, but revealed a decline of 6 per cent
when compared with June 2020.
Mike Dyer, sales manager, Retail Edge said, “The
end of the financial year and the start of the climb
to Christmas all encompassed in the simple flip of
a page on a calendar.”
He stressed that planning for the new financial
year “has taken on an even greater importance” as
the latest data revealed mixed results and “point
towards the [end of financial year] sales maybe
having a greater influence than at the same time
last year.”
Comparative average sales based on inventory
dropped by 2.6 per cent ($214) when compared
with the same period last year ($219) but marked
a strong 26 per cent increase from $169 when
measured against June 2020.
Diamond set precious jewellery sales declined by 15
per cent compared with June 2021 but indicated an
8 per cent increase based on a two-year difference.
Other categories also increased; colour stone
set precious jewellery rose by 13 per cent when
measured against last year, but revealed a strong
43 per cent increase compared with June 2020,
while non-stone precious jewellery saw a slight
increase of 1.2 per cent compared with June 2021
but marked a significant rise of 22 per cent when
measured against June 2020.
Sales dollars for laybys for new pieces and pickups/
cancellations rose by 15 per cent, which points to
increased cashflow and customer traffic, as well as
consumers carefully “planning and budgeting their
jewellery purchases.”
However, sales dollars for services/repairs declined
by 27 per cent between new (incoming) pieces and
pickups/cancellations. A similar downtrend was
seen for special orders which dropped by 8 per cent
between new pieces and pickups/cancellations.
Dyer noted that the decline in services and special
orders should draw attention to marketing and
social media campaigns for those segments to
perform better.
“When looking at your 12-month planning,
remember to review suppliers as well as product
categories. As consumer product acceptance shifts,
you need to understand and adapt to maintain
market relevance,” he added.
Experience Unmatched Service & Reliability
Precious Metals
Jewellery Production
REFINING | METALS | CASTING | CAD/CAM | FINDINGS
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Sydney: Unit 37, 34-36 Ralph St, Alexandria 2015
Melbourne: 1406/227 Collins St, Melbourne 3000

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News
Record sales performance for Australian jewellery retailer
Despite Michael Hill['s shutdown of three stores in Australia
during the quarter, plus the loss of more than 10,000 store
hours, the company has been on a consistent uptrend for 12
successive quarters.
Brisbane-based jewellery retailer Michael Hill
International has announced a record year of sales
based on its latest trading report.
Store sales increased by 17 per cent for the
quarter and 7.3 per cent for the full year when
measured with the same period last year.
Same-store sales also increased by 8 per cent
for the year when compared with the same
period last year. Quarterly results saw an
increase of 2.1 per cent.
Daniel Bracken, CEO and managing director,
Michael Hill International said, “I’m delighted
with our full year trading results, despite the
continued backdrop of COVID disruptions and
the resulting loss of 10,000 store trading days,
we have delivered the highest sales and margin
in the history of the Michael Hill brand.”
Digital sales also generated a record
performance with sales of more than $40 million
marked by an increase of 23 per cent compared
with the previous year and representing 7.1 per
cent of total sales for the group.
Despite the shutdown of three stores in Australia
during the quarter, plus the loss of more than
10,000 store hours, the company has been on a
consistent uptrend for 12 successive quarters.
Another key contributor to the sales performance is
the Brilliance by Michael Hill loyalty program which
has more than 1.4 million members to date.
“These results reaffirm our continuing journey
to elevate the Michael Hill brand through our
marketing, our product, our stores, and our
people,” Bracken said, noting the challenges of
the COVID-19 pandemic and the uncertain global
economic environment.
“The business will continue to prioritise
key strategic initiatives across loyalty, retail
fundamentals, and digital expansion while
maintaining an elevated focus on capital
investment opportunities,” he added.
The company has forecasted comparable earnings
before interest and taxes (EBIT) figures of between
$60 to $63 million for FY22.
Michael Hill International is listed both in the ASX
and NZX and operates 280 stores throughout
Australia, New Zealand, and Canada.
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Australian leading wholesaler, specialising in manufacturing
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MILLENNIUM CHAIN
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www.millenniumchain.com.au

News
Millions in jewellery
mysteriously missing
Former jeweller convicted of grand larceny in US
The missing jewellery includes several high-end vintage and
rare pieces belonging to 18 jewellers participating in the
International Gem and Jewellery Show.
An estimated $US150 million ($AU221 million) of
jewellery loaded into an armoured vehicle and en
route to a trade show in Los Angeles has bizarrely
disappeared.
The missing jewellery includes several high-end
vintage and rare pieces belonging to 18 jewellers
participating in the International Gem and
Jewellery Show.
Some of the jewellers, as reported by CBS News,
have lost pieces that have been curated for the last
40 years.
The missing jewellery was being transported to the
Pasadena Convention Centre from another trade show
at the San Mateo Event Centre.
However, details on what has happened to the
jewellery remain a mystery as the owners say they are
yet to receive a detailed explanation from Brink’s, the
owner of the armoured vehicle.
CBS News contacted a spokesperson for Brink’s who
refused to disclose the nature of what is believed
to have been a robbery. CBS was unable to verify if
security footage or tracking devices from the vehicle
are available as a part of the investigation.
"Earlier this week, a loss incident involving a
Brink's vehicle occurred near Los Angeles,” Brink’s
statement reads.
“According to the information the customers provided
to us before they shipped their items, the total value of
the missing items is less than $US10 million.
“We are working with law enforcement, and we will
fully reimburse our customers for the value of their
assets that were stolen, in accordance with the terms
of our contract.”
The Federal Bureau of Investigation is investigating
the case together with the LA Country Sheriff’s
Department.
Nehal Modi has been convicted of first degree
grand larceny in the New York State Supreme
Court.
In December, a jury indicted Modi for one count
of grand larceny, defined as the theft or robbery
of an item valued at more than $US1 million.
According to Manhattan District Attorney
Alvin Bragg, between March and August 2015,
Modi made false representations regarding
a purported deal with Costco Wholesale
Corporation to obtain more than $US2.6 million
worth of diamonds from Lev Leviev Diamonds,
then liquidated the diamonds for his own
personal gain.
“This scheme unfolded in the heart of New York
City’s historic diamond district., where Mr. Modi
conned and defrauded a Manhattan business
out of millions,” said Bragg.
“Here, there was clear and conclusive evidence
Swiss luxury goods group Richemont has
reported stellar global sales for the first fiscal
quarter despite ongoing struggle in China.
The group’s major jewellery maisons —
Cartier, Van Cleef & Arpels, and Buccellati
— climbed 20 per cent year-on-year to €3.02
billion ($AU4.48 billion) for the three months
ending June 30.
Revenue from watch brands such as Piaget,
Vacheron Constantin and A. Lange & Söhne
increased 18 per cent to €1 billion ($AU1.48
billion).
that Mr. Modi obtained these diamonds under
false pretenses and used them for quick cash.”
Modi was once CEO of retail group Samuels
Jewelers, which shut down in 2019 after
its parent company, India’s Gitanjali Group,
collapsed as a result of fraud committed against
Punjab National Bank.
Grand larceny in the first degree is a class B
felony under New York state law and carries
a minimum penalty of one to three years
imprisonment.
Sentencing is scheduled for July 22 and
according to reporting by Rapaport News,
Modi plans to appeal his conviction.
The 41-year-old is the younger brother of
infamous businessman Nirav Modi, 51, who is
currently behind bars in the UK for a range of
criminal offences including fraud and money
laundering.
Richemont celebrates strong opening quarter
Total revenue for Richemont for the quarter
reached €5.26 billion ($AU7.80 billion) – a 20
percent improvement compared with the first
fiscal quarter of last year.
The regional data was positive in the US
market, improving by 41 per cent compared
with last year. The US market accounted for
22 per cent of total sales. Europe improved by
41 per cent.
The Asia Pacific market performed negatively
with an 8 per cent decrease in sales,
attributed to the COVID pandemic.
The pandemic continues to hurt sales in
China too, with Richemont reporting a 37 per
cent drop in sales for the quarter.
Based in Switzerland, Richemont owns luxury
brands such as A. Lange & Söhne, Buccellati,
Cartier, Vacheron Constantin, and Van Cleef
& Arpels. Retail accounts for 58 per cent of
Richemont’s sales.
28 | August 2022

News
Luxury jeweller sues insurer over cyber ransom
British luxury jeweller Graff has filed a lawsuit
against its insurer for refusing to cover a multimillion
dollar ransom payment.
Graff paid $US7.5 million in cryptocurrency to a
notorious Russian hacking syndicate, Conti, after
the company was hacked using ransomware in
September of 2021.
As a part of the extortion, the public leaking of
confidential client information was threatened
against Graff.
Graff’s lawsuit has been made against Travelers
Companies Inc, stating that the ransom paid
in cryptocurrency to the criminals should have
been covered under its insurance policy.
A Graff spokesperson told Bloomberg, “We
are extremely frustrated and disappointed by
Travelers’ attempt to avoid settlement of this
insured risk.”
As reported in Jeweller last year, the hackers
reportedly stole high-profile identities from Graff
and leaked personal and sensitive information
on the ‘dark web’.
In a bizarre twist, the hackers released a
statement of apology saying: “We found that our
sample data was not properly reviewed before
being uploaded to the blog” and it assured Saudi
Arabia, UAE, and Qatar families whose names
appeared on the leak that any information
pertaining to the royal family members “will be
deleted without any exposure and review.”
The hackers removed 69,000 documents posted
online following the apology, which they claimed
represented only 1 per cent of their total haul.
In another statement, the group offered
assurances that none of the stolen files was
“sold on auctions or offered as samples, or
revealed in any other capacity to any third party.”
Cybersecurity experts said the unexpected
response from the hackers could have been
borne out of fear of possible repercussions for
any customers on the list.
The hacked files included invoices, client lists,
receipts, and credit details of Graff clientele.
Graff was founded by British jewellery Laurence
Graff in 1960 and today operates more than 50
stores worldwide with locations in New York,
London, Las Vegas, Monte Carlo, Beijing, and
Melbourne.
Graff paid $US7.5 million in cryptocurrency to a notorious
Russian hacking syndicate, Conti, after the company was
hacked using ransomware in September of 2021.

News
Indian jeweller seizes world record with stunning ring
Ring fetches $US7.3 million
A diamond jeweller from India has entered the
Guinness World Records after creating a ring
that holds more than 24,000 diamonds.
The mushroom-shaped ring dubbed “The
Touch Of Ami” holds 24,679 white diamonds
and was made by Kerala-based SWA Diamonds.
The ring took 90 days to create and weighs
340 grams and is valued at $US95,243
($AU141,576).
Abdul Gafur Anadiyan, managing director SWA
Diamonds said, “It is our privilege and honour
that this ring was made in India”
“[The ring] marks the triumph of entrepreneurship
in the diamond sector of our state.”
The design was inspired by the pink oyster
mushroom which symbolises immortality
in Indian culture. It was modeled using 3D
computer-aided design and the ring base
was molded in gold before being encrusted
in diamonds.
"A team of qualified independent diamond
experts and jewellery experts evaluated the
ring at IGI - International Gemological Institute
Lab," Anadiyan added. The previous record
was created in 2020 by another Indian jeweller
- Harshit Bansal of Renani Jewels, with a ring
featuring 12,638 diamonds.
SWA Diamonds is owned by jewellery
manufacturer and distributor Capestone.
The latest Poly Auction in Hong Kong has
collected more than $US25 million in sales, with
the highest price achieved by one particularly
impressive ring.
The auction was hosted on 13 July and
headlined by a ruby and diamond ring from
Cartier which sold for $US7.3 million
($AU10.6 million).
The ring features an 8.3-carat Burmese ruby
surrounded by white diamonds.
Among the other notable items was a necklace
with 43 jadeite beads and a diamond clasp,
which was sold for $US6.4 million ($AU9.3
million).
Another necklace, this one by Harry Winston,
featured 65.75 carats of Colombian emeralds
paired with diamonds and sold for $US4.9
million ($AU7.1 million).
A pair of 15.7-carat heart-shaped, D-color,
internally flawless diamonds sold for $US3.36
million ($AU4.8 million), toward the upper end
of the presale estimate.
Sales from the auction totalled $US25.1 million
($AU36.6 million).
18ct Diamond & Precious Coloured Gemstone Jewellery Collection
DJDIAMONDDESIGNS.COM.AU
Daniel Jacuk | 0412 071 103 | sales@djdiamonddesigns.com.au
See our range at Stand C44
International Jewellery Fair
August 27-29th

News
MoonSwatch won't be available online
Enthusiasts hoping to become owners of the Omega x Swatch Speedmaster
Bioceramic MoonSwatch will still need to attend a store in-person, with a
spokesperson confirming that online access will not be offered.
In March of this year, the release of the Moonswatch collection caused
mayhem outside of stores across the world, including in Melbourne
and Sydney.
The Moonswatch is the result of a collaboration between Omega
and Swatch and was priced at $AU380 per watch. That retail price is
dramatically cheaper compared with other Omega Speedmaster products,
which list for more than $AU7,000.
The watch collection offers customers the chance to own a timepiece close
to the iconic Omega Speedmaster at a fraction of the cost. Online auction
sites such as eBay quickly featured watches listed at more than five times
the retail price following the launch.
At locations in Melbourne and Sydney, lines formed in the early morning
outside stores, however, due to the limited availability of the product,
hundreds were left disappointed.
Swatch Group CEO Nick Hayek has now confirmed that the watch will
not be sold online, telling Fratello “There’s no emotion in online buying.”
“It’s a carefully produced Swiss-made watch and not a commodity.
“The MoonSwatch is not about to make as much money as possible in
the shortest possible time period. So why should we sell it online?”
Swatch has 110 retail stores worldwide.
Hayek noted that after two years of pandemic restrictions, “it was about
time to celebrate and to bring the people back on the streets, meet
together, and revive the brick-and-mortar stores.”
There are 11 models in the MoonSwatch collection representing the solar
system, with each model designed after one planetary figure. Each planet
from Mercury to Pluto is represented, as well as the Sun and Moon.
According to a Swatch spokesperson, there is currently a shortage of
Moonswatch products, with the company’s website attributing this to
“overwhelming demand from Swatch fans all over the globe.”
“We’re working around the clock behind the scenes to make the 11 unique
watches and are replenishing our selected Swatch stores regularly with
this special collaborative collection between Swatch and Omega,” the
website reads.
The statement noted the watches are not limited-edition timepieces,
so consumers may be able to purchase them soon once stocks are
replenished.
Timeless Elegance
The watch collection was launched on 26 March, with Australia being
one of the first countries to launch the model ahead of the US and
European markets.
The watches are designed and modeled after the iconic Omega
Speedmaster Professional Moonwatch, which was made famous after
US astronaut Buzz Aldrin wore the watch during the 1969 mission to
the Moon.
Luxury Pearl and Opal Jewellery
enquiries@ikecho.com.au
+61 2 9266 0636
www.ikecho.com.au

News
Anniversary celebration: Reflecting on 60 years of Duraflex
Duraflex Group Australia, one of Australia’s
longest running jewellery industry suppliers
celebrates 60 years in business this year.
Throughout its operation the company has
weathered many storms, from economic
recessions and the global financial crisis to
the more recent global pandemic.
Anniversaries provoke not only celebration, but
also reflection, and Duraflex Group Australia
(DGA) managing director Phil Edwards told
Jeweller it was a time to look back, as well as
ahead.
“We are a close-knit team and we are very
proud of our company history,” Edwards said.
“More than half the team have been with the
business for 10 years or more and our current
longest serving team member will celebrate
25 years with us in 2023.
“Our long-standing success in the industry is
testament to our long-standing relationships
with our retail partners. We’ve forged and
fostered these relationships over many years.”
Early days
With a watch focus initially, Duraflex was founded
in 1962 by Ron Kearns and while ownership has
since changed hands the humble roots of the
business are reflected in the name today – an
amalgamation of “durable” and “flexible” - after
watch straps.
The business would eventually become the clear
leader for local supply of said watch straps,
before Ron Kearns partnered with his son Rod
who expanded the business into the distribution
of a limited range of jewellery.
Duraflex Group's stand at IJF 2018.
The next major change came in 2003, when
Phil Edwards acquired the business from the
Kearns family.
Edwards said his immediate focus at the time
was expanding Duraflex’s international brand
distribution portfolio.
“The strategic expansion of our business was
essential,” he said.
“The retail industry has transformed and shifted
direction over the decades and our ability as
a business to pivot and adapt and change and
champion innovation has proved critical.
“Working in close collaboration with retail
partners and constantly adapting to their diverse
business needs whilst striving to provide the
best products, pricing and service possible –
these points have always been the underpinning
of our success.”
Thomas Sabo
The most significant of these brands would
be launched three years later in 2006. The
formation of a partnership with one little known
European jewellery brand - Thomas Sabo -
would dramatically change Duraflex’s status
position in the local industry.
Thomas Sabo was founded in 1984 and took
more than two decades to gain international
recognition as the trade remained fiercly
divided between fine and fashion jewellery.
DGA opted to launch the brand at the Sydney
Trade Fair in August 2006 and in the early days,
trading struggled to gain traction.
It wasn’t until the Charm Club collection was
launched in 2007 that popularity surged. Within
seven years, Thomas Sabo would be held by
more than 300 stockists across Australia and
New Zealand.
Edwards said that for DGA the success of the
Thomas Sabo distribution partnership marked
an evolution of the business.
“It proved pivotal to DGA’s repositioning as
a multi-branded distributor and certainly in
hindsight was a defining moment," he said.
"It was also defining moment for the industry
and the development of the branded jewellery
category in our local market. DGA is immensely
proud to have been one of the leaders of the
category expansion."
Fast forward to 2022 and DGA distributes 16
major international brands while remaining a
fully Australian owned and operated business.
More than 1,100 retail stores are supplied by
the business, which remains based in
Chatswood, Sydney.
Pandemic
Recent years have been far from smooth sailing
for Australian retailers with the COVID pandemic
throwing more than a few spanners in the
works. Some impacts of the pandemic were
immediately clear such as major disruptions
to supply chains, a lack of direct access to
customers and rises in job insecurity.
Edwards said that simply surviving the
Rod Kearns and Phil Edwards
pandemic wasn’t the company’s aim – seeking a
strengthened positioned was also important.
“It all comes back to working in close
collaboration with our retail partners by tailoring
our services and support to directly assist their
unique and individual business needs during any
challenging period,” Edwards said.
“For many, when the store doors were forced
shut they opened up online, and we were there
to assist by providing e-commerce and dropship
solutions. For others, it was about weathering
the storm together and preparing strategically
for reopening with extra support where it was
needed.”
Duraflex Group's stand at IJF 2019.
“We also recently redeveloped a new upgraded
B2B Portal which is ready for launch. The aim is
to enable our retailers to place orders with more
efficiency and ease.”
Over the past 60 years Duraflex has evolved
from watch straps to European branded
jewellery, a diamond range, and more recently
Swiss watches.
From here, Duraflex’s attention turns to the
International Jewellery Fair, beginning in Sydney
on 27 August, where a distribution relationship
with Swiss watchmakers Edox will be launched
to a sea of eager buyers celebrating the first
large-scaling industry gathering since 2019.
34 | August 2022

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10 Years Ago
Time Machine: August 2012
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 Tiffany gets stamp on new metal
4 High tech on show at jewellery fair
4 Pandora launches new season collections
4 Police close in on $3 million jewellery gang
4 Sweet launch for Thomas Sabo diamond range
STILL RELEVANT 10 YEARS ON
DEBBIE MAYO-SMITH
“Building a customer base is an essential
part of any business and regaining
lost customers can be one of the most
efficient ways of doing it.”
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
Zamel’s guilty of misleading
consumers – again
The Federal Court has found that the Jewellery
Group, the company that operates Zamel's,
misled consumers about the level of savings to
be made during sales over an 18-month period.
The Court found that Zamel’s, which at the time
of the offences consisted of between 93 and 101
stores, misrepresented the savings consumers
would make from purchasing items during sales
periods in respect of 44 jewellery items included
across six Zamel’s catalogues and one flyer
distributed by national letter box drop, instore
and on Zamel’s website between November
2008 and May 2010.
Rolex and Harry Winston
defend their brands
Rolex and Harry Winston have both proceeded
to take legal action against companies they feel
have damaged the value of their brands.
Watch giant Rolex is suing an American
online, pre-owned watch retailer for allegedly
breaching counterfeit laws.
Melrose.com, which according to its own
website sells restored luxury wristwatches,
including pre-owned men’s and women’s
Rolex watches, is being sued by Rolex for
using counterfeit parts in the restoration of its
watches. The Rolex lawsuit accuses Melrose.
com of using counterfeit parts on its restored
watches in a deliberate effort “to confuse and
deceive the public”.
The Los Angeles Times reported in early August
that Rolex is seeking an injunction to prohibit the
online retailer from including counterfeit parts
on Rolex watches or even from mentioning the
brand on its website.
August 2012
ON THE COVER Maxum
Editor’s Desk
4What’s wrong with retail: “Over
the next few days, I pondered these
two shopping experiences. Abysmal
customer service is nothing new, but
it’s certainly odd that it remains at a
time when consumers have a clear
alternative.
I mean, if retailers aren’t going to
provide the human touch they regularly
claim is one of their advantages, or if
that human touch is unpleasant, then
why bother?”
Soapbox
4To brand or not to brand : “With that
in mind, I don’t believe brands need
to be in competition with each other
– they can be in the same store and
have a relationship that compliments
one another. In fact, I’d like to see a
future with less competition and more
collaboration.
“Brands are born and die every day. To
keep mine alive, I think I’ll give a little
more daily thought to the people behind
the store counter, the people parting
with their hard-earned, and the people
wearing and cherishing the Uberkate
brand.”
– Kate Sutton,
founder and designer of Uberkate
Pandora Australia bucks
international trend
Despite a significant drop in international
revenue, Pandora’s sales figures in Australia
last quarter indicate the brand is still going
strong.
Global jewellery giant Pandora may have
experienced a group revenue decrease of 9.5
per cent in the second quarter of 2012, but its
Australian figures indicate Australians are
still in love with brand’s charms.
Pandora recorded a decrease in second
quarter revenue of 2.2 per cent in Australia,
comfortably outperforming the global
Pandora figures, which Pandora Australia
president David Allen was very pleasing to
see.
“Q2 was a very good quarter for us,” Allen
said. “We were very pleased with the
performance of our seasonal collection
launched in March.
Aussie brand succeeds in
United Kingdom
Men’s jewellery company Cudworth
Enterprises has appointed a distributor for
the United Kingdom and Ireland, and plans
to expand further afield in the future.
Southern hemisphere retailers seem to
possess an almost insatiable hunger for
European jewellery brands.
Homegrown supplier Cudworth will be
hoping that the trend can go both ways,
however, and has announced a partnership
with a UK-based distributor to sell its
products to British retailers.
36 | August 2022

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REVIEW
Gems
Pearls Part V: Examining the Exotics
Above: Moussaieff; David Morris; Clogau
Below: Kendra Scott; Amanya
To the average consumer, or even the
average jewellery sales assistant, pearls
are often known to be gloriously lustrous,
covered in glittering nacre, as close to
white as possible, and aiming to be
perfectly round.
But pearls may take many forms, borne
of a range of different sea creatures,
whether bivalve or gastropod, nacreous
or not.
Abalone - including Paua - pearls are
one of the better-known examples of
exotic pearls, given their popularity
and harvest in Australia’s neighbouring
nation, New Zealand.
A type of nacreous pearl, the most
well-known Abalone variety displays a
unique and highly recognisable multitude
of blues, green, and brownish colours
with high iridescence - the highest of the
pearl-bearing molluscs.
Abalones may be natural pearls, forming
without human intervention of any kind,
or cultured with the introduction of a
shell seed.
Natural Abalone pearls range greatly
in size, from small seed pearls to large
specimens of more than 70mm. These
are often baroque in shape, and more
rarely near round. The cultured blister
pearls, however, typically range from
9mm through to 20mm or so.
These pearls form in the gastropod
Haliotis, which differ from the more
familiar pearl oysters in that they only
have one shell and no pearl sac.
The Haliotis Iris is also known as the Paua
shell or rainbow Abalone, and is the largest
species in New Zealand, with a maximum
shell size of around 18cm.
Other species include Haliotis fulgens,
which produce green, blue and coppercoloured
natural pearls with flecks of
fuchsia; and Haliotis rufescens – a red
abalone.
Across each species, Abalone pearls are
rarer than the more commonly known
varieties of cultured nacreous pearl.
For the gemmologist, characteristic
identifying features of the various Abalone
pearl species - besides their highly
desired multicoloured orient - includes
a botryoidal-like pattern on the surface
at magnification, and a chalky greenishyellow
fluorescent reaction under longwave
ultraviolet lighting.
Leaving nacre behind entirely, the
conch pearl proves there is beauty and
desirability in the organic nature of pearl
production, regardless of shine. Queen
conch pearls are a very rare gem that has
long been desired throughout history.
It is believed conch pearls have enjoyed
a rich history alongside their nacreous
counterparts, even symbolising a channel
of communication with gods of the sea
amongst the Inca peoples.
These white to brownish, salmon to pink
pearls are produced in the Lobatus gigas
mollusc (formally Strombus gigas) across
the Caribbean.
What these pearls lack in traditional
Abalone Pearl
Produced by the
haliotis, haliotis iris,
haliotis fulgens, haliotis
rufescens
Colour: Multiple
Found in: Australia, New
Zealand, South Africa,
Japan, North America
Mohs Hardness: 3.5
Lustre: Intense
Formula: CaCO ³
pearl lustre, they more than make up
for in the highly sought-after orangish
pink colours and a captivating porcelainlike
lustre. Conch pearls also feature
a distinctive flame-like structure that
imparts a silky appearance.
Typically, these pearls are baroque in
shape and most often between 3mm
and 8mm, with sizes surpassing
13mm being rare.
The approximate estimate of the
occurrence of gem-quality conch
pearls is one pearl in every 50,000
queen conch shells.
Pearls, in general, are always on the
more delicate side of gemstone choice,
and in the case of exotic pearls there
may be some extra precautions to take
to ensure your treasures last a lifetime.
Abalone pearls are often hollow and
therefore fragile; handle gently. Conch
pearls, on the other hand, may fade or
change colour if exposed to x-rays or
to sunlight over long periods of time.
Care should always be taken in both
cleaning and storing these organic gems.
Mikaelah Egan FGAA Dip DT
began her career in the industry at
Diamonds of Distinction in 2015. She now
balances her role at the Gemmological
Association of Australia with studying
geology at the University of Queensland.
Visit instagram.com/mikaelah.egan
For more information on gems and
gemmology ,go to www.gem.org.au
August 2022 | 39

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FEATURE
Retail Pricing Guide
Pricing doesn't matter
OH WAIT, YES IT DOES!
Fundamentally sound product pricing is crucial to the success of a retail jewellery business.
SAMUEL ORD explores the application of common strategies, and weighs the pros and cons of each.
As a small business, how do you set the
appropriate price for a product?
That’s a question that every retailer should be able to
answer. Product pricing is an element of trade that will
make or break any business.
Surprisingly, this is an area in which many retailers report
a lack of confidence.
According to a recent study published by Retail Systems
Research, a US market intelligence company, there is a
notable difference in the way successful and unsuccessful
retailers view pricing strategy.
The study defined ‘winners’ as retailers with a sales growth
exceeding 4.5 per cent, and ‘losers’ as retailers who fail to
meet that average number.
The study concluded that just 64 per cent of the winners
consider themselves satisfied with their capabilities when
it comes to accurately pricing products.
According to the study, 67 per cent of the winners said
pricing optimisation was “absolutely vital”. Only 42 per cent
of the losers agreed. None of the winners surveyed agreed
with the suggestion that no price optimising tools were
required for a business.
Bizarrely, two per cent of the losers agreed with that
sentiment! Perhaps that’s not so bizarre, considering their
categorisation.
Brian Kilcourse, managing director Retail Systems
Research, says the study confirmed the importance of
correct pricing for retailers.
“In the end, retailers should know that closing the pricing
readiness gap is now a critical component of overall retail
strategy,” he says.
“It is clear that in order to win, precision pricing is a musthave,
not a nice-to-have.”
Another recent survey by web data platform Bright Data
suggested that consumers are increasingly fixated on price.
When asked which factors typically influence their
purchase decisions when shopping online, 82 per cent
of respondents said price. In addition, 74 per cent of
THE NUMBERS
Consumer
Behaviour
#1
driver of customer
satisfacton for
Gen Z consumers
is pricing.
75%
of Gen Z and
Millenial
consumers consult
at least one other
digital resource
before making
a significant
purchase.
#2
driver of customer
satisfaction for Gen Z
consumer was digital
experience.
47%
of all consumers prefer
to engage with retailers
by visiting a brick-andmortar
store.
Source: Verint
respondents said they would switch from their usual
retailer if they found a better price elsewhere.
Find the balance
What is not commonly known is that there are more than
20 different methods or strategies of price setting. (See
below) Some can, or should be, used for specific activites
and/or events.
In many ways, product pricing is like walking a tightrope:
Success in the pursuit of the appropriate pricing strategy
comes down to a balancing act, avoiding the extreme
pitfalls of failure on either side.
If the calculations are incorrect and the product is priced
too low, the long-term impact is dire. Low pricing may not
generate sufficient profit to cover costs, especially in the
event that sales volume is down.
In the end, retailers should know that closing the
pricing readiness gap is now a critical component
of overall retail strategy.
Customers are likely to fear that your product is inferior
to those offered by competitors if your product is notably
cheaper. Many customers are looking for value above cost,
after all.
Additionally, a retailer who sets a price too low is sending
a simple message to the rest of the market “our product
isn’t as good as similar products on the market, and thus,
is worth less.”
The perils of over-pricing are obvious. Sales volume will
drop as customers favour competitors with less expensive
products.
While the endgame in business is to produce profit, when
it comes to product pricing, this messaging or signalling is
just as important. Price setting is communication.
A luxury vehicle manufacturer such as Ferrari won’t drop
the price of a car simply to match the prices offered by a
major manufacturer such as Toyota.
The way a product is priced is a message regarding the
August 2022 | 41

S E CUR E
E A RRI NG B ACK S
Retail Pricing Guide | FEATURE
$7,899
$8999
P r o u dly d e sig n e d a n d
m a n u fac t u r e d in the U K
ASK FOR A
HELPING HAND
value of that product, and when a retailer makes a product too
cheap you’re cheapening the brand of the business in the process.
Tough task for jewellers
Establishing the correct pricing strategies can be more
challenging in the jewellery industry for a range of reasons,
including issues of transparency on the factors that go into
calculating the final value of a product.
S A F E
S ECU R E
NON-S LIP
H YPO-A LLERGE NIC
C OMFOR T ABLE
Nationwide Jewellers represents more than 500 independent jewellery
stores across Australia and New Zealand. Managing director Colin
Pocklington says educating members on the importance of precision
in pricing became a major focus many years ago.
“Around 20 or so years ago we recommended to all members that
they implement a higher pricing strategy,” he says.
“This was in response to increased operating cost, specifically with
rent and labour as a percentage of sales.
“A pricing strategy needs to be based on the businesses financial
model, so that the resultant gross margin percentage will result in
a gross profit percentage that is within industry benchmarks, and
importantly, after covering all overheads provides a profit before tax [as
a percentage of sales] that will give an adequate return on investment.
Pocklington says that since education around product pricing
became a priority, Nationwide has explored options for best
communicating the information with members.
“Our benchmark surveys revealed that many members were not
achieving an adequate profit as a percentage of sales. “We also
introduced our Repair Price Book, as the vast majority of members
were not charging enough on repairs,” he explains.
“Prices in the book are ‘scientifically’ calculated and based on
labour and material costs, and the number of minutes required for
each type of repair. We issue a new book about every two years, or
annually if needed, based on changes to material or labour costs.”
So, with the importance of accurate product pricing firmly underlined,
it’s time to explore some of the most valuable strategies.
Cost-based pricing
Cost-based pricing is by far the most common strategy employed
by retailers. It’s a tactic that is easy to implement and given a
healthy sales volume, all but guarantees a profit.
A retailer calculates the total expenses associated with operation,
including direct material cost, direct labour cost, and other
overheads, and then adds an additional percentage to the final
sales price to ensure that a profit is returned.
Competera contributor Vladimir Kuchkanov explains “such a
pricing strategy ensures that a company receives a profit margin
that meets the anticipated rate of return.”
“Cost-based pricing is widely used because of its simplicity and
the degree of information required to anticipate the profit.
(02) 9417 0177 | www.dgau.com.au

$3,895
At this point, cost plus pricing is better than value-based pricing
in cases when the data on costs and demand cannot be obtained
easily. Experts label cost-based pricing as one of the most rational
approaches toward profit maximisation.”
Cost-based pricing is not only easy to implement, but it’s also easy
for customers to understand. There are a number of important
disadvantages associated with the practice, however.
Cost-based pricing fails to factor in the pricing of
competitors, and if a competitor is producing the same
product at a cheaper cost, that competitor will generate
more profit in the long term.
Cost-based pricing fails to factor in the pricing of competitors, and
if a competitor is producing the same product at a cheaper cost,
that competitor will generate more profit in the long term.
In the same vein, consumers may be willing to pay more than a minor
percentage increase for a particular product, such as luxury watches.
If a product is mispriced, profit may be missed by a retailer or a
store may be viewed consumers as having an inferior product by
selling a product at a far cheaper rate than that of competitors.
Premium pricing
The premium pricing strategy is centred on communicating the
message that a retailer’s product is superior to those offered by
the competition.
Implementing premium pricing is simple. Retailers assess
the market and their direct competitors and then price similar
products higher.
The aim of premium pricing is two-fold – as a retailer offering the
most expensive price, customers may infer that product is of the
highest quality compared with its cheaper counterparts.
In a scenario where two retailers have matching sales volume over
a similar product, the retailer implementing premium pricing will
have superior profit.
Jim Woodruff, Small Business Chron, says half-hearted
commitment to premium pricing will end in disaster.
“While it's natural to focus on and point out the weaknesses of
the competition, companies have more success with premium
pricing when they concentrate on creating value that makes their
products worth the higher prices,” he says.
“Establishing a product with a high-priced image takes time,
money, and the efforts of everyone in the business. The entire
marketing program must project high quality, and the consumer
must be convinced that the product is worth every penny.”
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02 9290 2199

Retail Pricing Guide | FEATURE
Loss leader pricing
Hoping to attract new customers to your store? A loss
leader strategy could be an option, at various times.
Loss leader pricing is a marketing strategy in which
products are sold at a retail price set lower than the
wholesale price in order to attract new customers to a store.
The hope for retailers who employ loss-leading practices
is that once a customer is in a store, they will be enticed to
purchase additional products which are not priced below
wholesale price.
The most popular example of loss leading is supermarkets
selling milk. Milk as a product rarely generates profit for
supermarkets, however with fridges commonly located at
the rear of a store, customers are exposed to products that
do generate a profit while inside.
Deal Avo writer Aleksandra Holownia, says “the
assumption behind this strategy is quite straightforward.
“Some companies try to lure customers with prices for
specific products that are irresistibly low. This way, at least
according to their thinking, customers will more eagerly
walk in the store and buy more products, including those
that have normal prices.”
Keystone pricing
Another common strategy that aims to simplify the sales
process is keystone pricing.
Keystone pricing is a simple equation, with a retailer
setting the price of a product at exactly double the
wholesale price.
Simplicity isn’t the only advantage that comes with this
approach, as keystone pricing also offers a high-profit
margin and flexibility in range if minor adjustments needs
to be made at a later date.
Matt Ellsworth, Act On Intelligence, says it’s a common
approach for retailers with a new product and little
background on the market.
“The most common use of keystone pricing is when a
retailer brings a new product to its shelves,” he says.
“Without historical pricing data on the item, it’s hard to
know the ideal sales price you should launch with.
“That’s where keystone pricing comes in. By doubling the
wholesale cost and setting your initial sale price at that
level, you can generally get some kind of profit margin,
while gathering data on how customers reacted to the
initial price.
“If you find that customers aren’t buying at the markup
level, you can use markdowns and discounts until the
WHAT LIES A HE A D
Consumer
Profile
64%
of retail executives
believe consumers
are willing to
spend more in
2022, but need to
rely on credit or
Buy Now Pay Later.
68%
of retail
executives expect
consumers to
favour businesses
with strong
"environmentally
friendly" focuses.
70%
of retail executives
believe that
growth in 2022
will be hampered
or disrupted
by employee
shortages.
58%
of retail executives
believe inflation
presents an
opportunity to
improve margins
and take price.
Source: Deloitte
selling price is more in line with customer expectations.
Likewise, if your sales volume is extremely high at launch,
you could raise the selling price to increase your margin.”
There are a number of retail scenarios where keystone
pricing is inappropriate. Keystone pricing suffers in that
it doesn’t factor in prices used by the competition, and if
other stores are notable less expensive, customers may
be driven away.
Competitive pricing
A competitive pricing strategy is a process of selecting
price points for products based on competitor pricing
in a particular market or niche.
Retailers who utilise competitive pricing move away from
pricing based on business costs or profit targets. The
competitive pricing strategy incorporates three other
pricing strategies – premium pricing, loss-leading pricing,
and equalling pricing in one, all-encompassing strategy.
Establishing a product with a high-priced image
takes time, money, and the efforts of everyone
in the business.
When a retailer commits to competitive pricing, they will
lower the prices of products to undercut competitors
on some products, while also raising the price of other
products to establish a premium or prestige brand.
The third aspect of premium pricing is price-matching –
offering customers a discount to match the price offered
by a competitor.
Profit Well contributor Vivian Guo, says competitive pricing
is difficult to get wrong. “It’s rare to royally screw up using
this form of pricing,” Guo says.
“If you have a fairly solid grasp on your product’s quality, target
audience, and cost of production, this method will most likely
never lead to bankruptcy. It’s kept your competitors afloat, so
similarly, it should do the same for you.
“In saturated industries like retail, competitor-based
pricing can be fairly accurate. After all, for most consumer
products there are millions of customers and enough data
to move pricing closer towards a methodology based on
market price and market share.”
Recommended Retail Price
Recommended retail price (RRP), also known as
manufacturer suggested retail pricing (MSRP), is a strategy
commonly used by car dealers, while retailers of other
high-priced goods such as appliances, electronics, and
jewellery also employ the approach.
44 | August 2022

Watch: Daintree
As the name suggests, a RRP is provided to a retailer by the
manufacturer or supplier of the product. The price is supposed
to reflect the costs incurred during production and sales.
The use of the RRP strategy is effective at reducing inventory and
generating sales in a sluggish economy. Some retailers offer prices
at or below RRP as a part of clearances.
The downside to the strategy is a conflict with the theory of
competition. RRP also passes on the responsibility of pricing to
an external party, while the consequences for error will only be
experienced by the retailer in most circumstances.
Without historical pricing data on the item, it’s hard
to know the ideal sales price you should launch with.
James Gordon, The Business Professor, says establishing
uniformity in the prices of products from store to store is an
important part of the process.
“Although such standardised prices ensure that consumers do not
have to overpay for the goods purchased, several retailers actually
sell products for lower prices than the MSRP [RRP],” Gordon says.
“This is typically done to move inventory from the shelves during
periods of slow sales or as part of competitive pricing strategies
aimed at outdoing the prices offered by competing retailers.
“Since retailers usually purchase products from [suppliers] at
wholesale prices that are well below the MSRP, it is possible to
offer huge discounts on the listed prices and still turn a profit.”
Penetration pricing
Penetration pricing, as the name suggests, is a marketing strategy
that aims to attract new customers to a product or service.
Retailers offer lower prices than those offered by competitors –
sometimes accepting an initial loss – in exchange for engaging
with a new demographic.
Implementation is simple for retailers, beginning by researching
the prices offered by competitors, and adjusting prices in-store to
undercut the competition. The aim of the strategy is to build market
share with the hope of retaining customers once prices
are eventually raised to generate profit.
Francesca Nicasio, writer for Vend, says that switching brands isn’t
a popular practice for consumers and that penetration pricing can
encourage a transition.
“90 per cent of people consider themselves equally [brand] loyal or
more [brand] loyal than they were a year ago. For new brands or
companies releasing new products, this isn’t good news,” she explains.
Nicasio continues by explaining that this issue is exacerbated for
small business that find themselves in competition against large
chain stores and international corporations.
(02) 9417 0177 | www.dgau.com.au

Retail Pricing Guide | FEATURE
4.55 CTS OF PAVÉ RUBIES,
3.9 CTS OF SAPPHIRE IN
PLATINUM, EARRINGS
KNOW THE DEFINITIONS
A-Z OF RETAIL PRICING STRATEGY
Absorption pricing
Price is determined by adding unit variable cost to the overhead and
managing costs and dividing by the amount of product units.
Competitive pricing
A process based on flexibility, with prices adjusted higher or lower
based on competitor pricing in certain markets.
Cost-based pricing
Direct material and labour costs, as well as overhead costs, are
combined and added to a mark-up percentage to generate profit.
Skimming
Price is raised so that fewer sales are required to break even.
Strategy targets early endorses of a product, usually used to rapidly
recover investment in product development.
Decoy pricing
Retailer offers a minimum of three products. Two of the three
products will be similarly priced and relatively expensive, the third
will be notably cheaper. This tactic drives customers to disregard
the cheaper product is inferior and choose between the two more
expensive options.
Freemium
Retailer offers a product for free but charges a premium for
advanced features, functionality or for related products and
services.
High-low pricing
Pricing differs between walk-in customers and those who join a
loyalty program. Loyalty program members receive promotions
such as coupons offering lowered prices.
Keystone pricing
Retail price is determined by doubling the wholesale price.
Loss leader
A product is sold by a retailer below cost in order to entice
customers to the store and purchase items priced to produce profit.
Marginal-cost pricing
A product price is set at or, slightly above, the marginal cost of
production. Used by businesses during times of poor sales.
Odd-Even pricing
A psychological strategy relating to the way odd and even numbers
are perceived by customers relating to price sensitivity. Price
sensitive customers prefer products to be priced on odd numbers.
Customers unbothered by price prefer items priced at an even
number.
Pay What You Want
Pay What You Want (PWYW) is a system where buyers are given
the chance to pay whatever price they deem the product to be
worth. Has been used previously by musicians and artists.
Penetration pricing
Price is set particularly low in order to generate first-time
customers in a new market. Price is raised once market
share is seized.
Predatory pricing
Predatory pricing is the practice of undercutting specific
competitors in a bid to drive a rival business out of a market.
Premium decoy pricing
A retailer sets the price of one product artificially high in order to
promote the sale of a second comparable product which has been
performing poorly.
Premium pricing
A product is priced high in order to maintain reputation. Customers
infer that based on price alone, the product is high quality.
Price discrimination
Prices are set differently for the same product in alternative
markets. Business may pursue this practice based on different
circumstances, such as location.
Price leadership
Rarely a deliberate strategy and more of market observation.
Dominant products tend to influence the price being set for inferior
products.
Psychological pricing
A catch-all term used to describe pricing strategies that relate to
subtle manipulation of customers, such as odd/even pricing.
Recommended retail pricing
Recommended retail pricing is provided by the manufacturer or
supplier of the product. The price reflects the costs incurred during
production and sales.
Target pricing business
Tactic in which the selling price of a product is calculated with the
aim of generating a rate of return relating to a prior investment.
Time-based pricing
Prices are finely tuned based on customer spending habits at
different times of the day and week. Prices are raised or lowered for
a product in order to maximise sales, usually an automated online
practice.
Time-sensitive pricing
Pricing tactic implemented on products with a short shelf life. While
perishables like food are an obvious example, retailers may use
time-sensitive pricing to make the most of a trend or fad, before
lowering the price once popularity wanes in order to clear inventory.
Value-based pricing
Price is determined by a retailer based on the estimated value of the
product to a customer, rather than in relation to production costs.
Variable pricing strategies
Includes the total cost of all variable characteristics associated with
the production of a product.
Yield management strategy
An all-encompassing pricing philosophy which values the buying
behaviour patterns of customers, environmental factors and market
price to successfully secure the most profit.
46 | August 2022

FEATURE | Retail Pricing Guide
“It’s hard to bet on new entrants when you’ve
been using the same products from longstanding
brands. Penetration pricing provides
a solution to both problems.”
Penetration pricing has some immediate and
obvious shortfalls for jewellery retailers.
Unsuccessful attempts at gaining more
market share can lead to insufficient funds for
business operations long-term, as well as lost
opportunities with customers who associate
higher prices with higher quality products.
Penetration pricing is commonly used by
supermarkets, streaming services, hotels,
and banks.
Weighing it up
While the pricing strategies listed above are all
important, there are many more to choose from.
When it comes to selecting the right pricing
strategy, it’s important to start by setting targets
that are both measurable and attainable.
With those in place, you can then perform
market research, determining what methods
your competitors are using and what degree of
success they’re having.
That kind of information won’t be readily
available, but can be gleaned by speaking
with customers and analysing how they view
competitor pricing.
With targets in mind, knowledge of how your
competitors are approaching pricing, and an
understanding of how customers perceive the
market, a retailer is then ready to weigh up the
pros and cons of different pricing strategies and
determine which one best suits the market.
It’s hard to bet on new entrants when you’ve
been using the same products from
long-standing brands.
Edge Retail Academy provides highly specialised
consulting services to US, Australian and New
Zealand retail jewellers. David Brown, president
and Jeweller contributor, says involving an outside
perspective can improve the pricing process.
“In my experience, the biggest barrier to
business owners setting the correct price is
their own mindset,” Brown says.
“In many cases, items are set lower than
they could be because of assumptions and
expectations the owner held.
“The business owner put up barriers that aren’t
necessary. Often the most successful pricing
strategies are the ones set by other people who
don’t have an emotional ‘buy-in’ to the decision.
One of the most effective ways of pricing is to ask
someone who has no knowledge of the cost of
the item to tell you what they think it is worth.
Brown continues: “Again, this has often led
to higher pricing policies than a ‘cost-plus’
mentality, especially where the staff are involved
and don’t know the inputs. At the end of the day,
they are the ones who will be selling it!”
Just as there are different horses for different
courses, there are different pricing strategies
for different businesses.
In the same way that sending a champion
thoroughbred to an unsuitable racetrack could
end in disaster for all involved, so will adopting
the wrong pricing strategy for a retailer.
Every retailer has it’s own unique factors and
quirks and failing to take them into consideration
when pursuing the correct pricing strategy is
opening the door to a nasty dismount!
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47
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FEATURE
Internal Business Development
The three forms
of
RETAIL SUCCESS
With uncertainty on the horizon, the time has come for retailers to plan for ways to promote internal growth.
DAVID BROWN shares three important approaches to promote improvement from within a business.
In the world of business, it’s not enough to simply
succeed once. Businesses must constantly reinvent,
recreate and rejuvinate in order to maintain
relationships with existing customers and forge new
partnerships with the customers of tomorrow.
US actress Lauren Bacall once said that “standing still is the
fastest way of moving backwards in a rapidly changing world.”
That’s an important concept small business must keep in
mind heading into the second half of 2022 and beyond.
If you’re familiar with my work, you’ll know that I’m a fan of
the 80/20 principle. It’s the art of concentrating resources in
the 20 per cent of your business that can lead to 80 per cent
of the improvement in results.
There are many facets to business including marketing, staff
management, and sales development just to name a few.
What each of these areas have in common is that they can
be reliant on the actions of other people, such as advertisers,
sales staff and customers.
While each have their own 80/20 areas that represent a
worthwhile concentration of time and energy, business should
at first concentrate resources in areas where you can have
complete control of the outcome.
In digging through the monthly store performance data, there
are three key areas that I feel every business should review
and seek to improve. The beauty of each of these areas is
it’s easy, through comparative data, to see how your store is
performing against others.
RE TA IL FIGURES
Deep Dive
60%
of retailers believe
new product ranges
should be the most
important focus to
boost sales.
72%
of retailers
highlight
shipping costs
as having a
material impact
on their input
costs
90%
of retailers
believe training
conditions will
improve (or
stay the same)
during 2022.
Source: Deloitte
The areas that you can control while having some of the
biggest impacts on your results are mark up, old product,
and controlled buying.
Markup
Pressure to generate sales and achieve sales targets often
results in a decrease in markup. After all, if it costs the customer
less they will buy more or say purchase quicker, right?
Wrong!
Take a look at other retail stores that have advertised
themselves as being the cheapest and count how many
of those are still trading.
The price-conscious customer has no loyalty. Remember
that the more sales you discount, the more you teach your
customers they shouldn't pay the ticketed price.
If being the cheapest was the answer then our shopping
centres would be crowded with identical stores selling on
price and high-end product would not have a marketplace
anymore, and yet we see a constant growth in new high-end
fashion brands all the time.
That doesn’t mean you don’t discount to get sales, just pick
the battles that you can win. The older the item, the happier
you should be to offer a discount.
Items that have good markups, such as those with a greater
than 200 per cent markup, have some inbuilt ‘head room’ to
negotiate with and still produce the sales your business needs
to generate enough profit.
August 2022 | 49

News
Internal Business Development | FEATURE
xxx
Xxxx
Review your past three months of sales and look at the markup achieved
on F-Fast sellers, fast sellers and old product.
If you have access to group comparison data you should be able to see
how you compare to your group average in your KPI report. Are you behind
or ahead of it? Look at your three-year comparison – is your markup
static or slipping?
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Now may be the right time to review what markup that you need to
achieve to run your business. That is a key metric that you should review
at least every six months as the market and trading conditions are
continually changing around you.
It is critical that you know, at all times, when you are above or below that
markup figure. Reviewing that information at the end of the financial year
is too late to do anything about it.
Knowing this, you can project sales targets that give you the money
required to run your business. You can also formulate and monitor the
pricing of stock as it goes into your system.
The breadth and importance of this topic cannot be covered in these
few words but it is a starting point to driving this area of your business
forward.
Above all don’t let your own attitude be the handbrake on developing your
mark up. On average, customers will pay more for products and services
than business owners believes.
xxxx
Give your customers the chance to prove it!
Xxxx
Old product
I mentioned above that it was best to focus on parts of the business with
which we could have complete control.
Most retailers understand this when it comes to markup. You can choose
what price you put on an item, and what price you want to sell it for.
For many, however, old product is viewed in a different light. Sadly, many
retailers don’t see old product as something they can control. After all, they
argue, they can’t force customers to make purchases at the end of the day.
What these retailers neglect to understand is the extent to which a
passive approach causes old product to age. You have a choice in how
long an item stays within your inventory.
Let’s test this theory. Find a sample of old items from one department,
mark them down to $1 each and put them in the front window. Let me
know what’s left at the end of the week.
Reading this it’s easy to think I’m being a little flippant and I don’t
recommend you take every item that hasn’t sold in the last twelve
months and give it away.
(02) 9417 0177 | www.dgau.com.au

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• Generous supplier discounts
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• A community of like minded people
Plus many more services and resources focussed on supporting the independent jewellery
business owner.
Want to learn more?
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or email:
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Internal Business Development | FEATURE
Stock that is still technically
‘new’, less than 180 days old,
can rapidly become old. To get a
clearer picture of this concept,
produce a stock-by-age report
and organise by department to
see the number of units involved.
The point I’m making is that you choose to
accept whether an old product stays within the
store or not. If you really needed to you, always
have the option of reducing the price to $1 and
moving it quickly.
That’s the real lesson here – you have control.
For retailers, feeling in control of what happens
within a business is directly related to the
success and profit a business generates.
It’s the reason why many people start their own
business; the pursuit of feeling in control of the
decision-making process. A business owner can
choose whether they go to work or not. Feelings
of freedom in business come from control.
Old stock creates a number of issues. These
include capital becoming tied up, displays
looking tired and cluttered, and customers
possibly perieving a business as out of touch
with current market trends and fashions.
Old stock can also cause issues for sales staff,
who feel demotivated by a stagnant environment.
It’s important to compare your sales-to-stock
ratio. In the past 12 months, there are fewer than
two, then potentially there is an old stock issue.
If you look at this figure for each department,
you’ll gain a better understanding of how
widespread the issue is.
I suggest using the 12-month column to
dilute any possible one-off impacts, such
as an unusually slow month in any specific
department.
The age of stock is also important. Stock that is
still technically ‘new’, less than 180 days old, can
rapidly become old. To get a clearer picture of
this concept, produce a stock-by-age report and
organise by department to see the number of
units involved.
With so many retail sectors flooding the market
with ‘sales’ the traditional once-a-year attack on
old product may not produce the same results it
once did.
Certainly, retailers should still do this at the time
of year when they have achieved the best results,
it’s important to continuously chip away at old
stock to get the best traction.
There are many strategies business owners can
employ to slowly, but surely, clear this inventory.
One approach may be a manager’s special
cabinet, and another is paying incentives to sales
staff for clearing a specific product.
For retailers, feeling in control of what
happens within a business is directly related
to the success and profit a business generates.
Additionally, retailers may talk with the suppliers
of certain stock at the next buying group meeting
concerning stale inventory.
The starting point, however, is understanding
that you have control over the fate of old product
at all times.
Controlled buying
For many, one of the most enjoyable aspects of
owning and operating a store is the chance to
buy new product.
Thankfully, you aren’t dealing with plastic bags
or masking tape. Rings, watches and jewellery in
general are fun things to buy and sell.
This enjoyment can be an Achilles heel for
some businesses, however. Many customers
experience a rush of adrenaline when making
a purchase, and it can be a similar experience
for retailers, with the added justification of the
purchase being for a business.
Controlling the urge to purchase, and ensuring
that you are buying for the right reasons, can be
one of the most difficult areas of self-control for
any store owner. The better control exerted by an
owner the more effective a business will become.
A well-reasoned buying plan must be tailored
with a number of factors in mind. During the
developing of a buying plan, the following
questions should be kept in mind:
• Debt reduction: Are you managing your cash
flow in order to reduce outstanding loans or
accounts?
• Inventory turnover: Are the current product
levels appropriate for needs of the business
right now?
• Diversity: Is the mixture of product
conducive to reaching sales targets? Are there
any balance issues that need addressing?
• Increasing average retail: Does the level of
product reflect overall sales targets?
• Restocking: Have you replaced inventory of
proven sellers?
There’s a simple formula retailers can stick with
- purchases (stock in) must be less than cost
of sales (the original cost of the goods you have
sold) for any measured period of time.
Businesses must spend less on replacement
product than the value of what is sold. If this
continues indefinitely you will be reducing your
level of stock.
There is always the chance issues can surface
which challenge the parity of this formula, such
as deferred payments offered by suppliers,
branded products introducing new ranges, and
buying larger quantities of fast selling products.
If one hypothetical product is guaranteed to
sell, there is no cause for concern, because the
income may well be generated before the invoice
needs to be paid.
If another hypothetical product doesn’t sell
before the invoice is due, then the problem
remains regardless of the payment terms. Every
product that a store possesses, that has not
been sold before payment is due, will lead to
reduced cash flow.
If ‘fast sellers’ represent 80 per cent of your
sales, then 80 per cent of your ‘cost of sales’ is
already pre-committed to replacing these items.
Thus 20 per cent of your cost of sales is
available for debt reduction, stock reduction, or
52 | August 2022

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you need.
Know your business
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anywhere, anytime.
At the beach or at a Trade Fair, review
your stock and sales performance from any
Supplier, even while you’re on their stand.
Use pooled data to optimise profits by
knowing the best performing items and
emerging trends before you buy.
Are you ready to improve your retail profits?
• Mentoring & Management Consulting
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07 5574 0322
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www.retailedgeconsultants.com.au

Internal Business Development | FEATURE
Purchasing new products
for a business is exciting,
but restraint is a must!
entrepreneurial buying of new stock that you have never had offered before.
If debt reduction, or stock reduction, is a part of your overall plan, then
this 20 per cent needs to be further reduced to provide a new stock
‘open to buy’ figure.
In other words, once you have allowed for the 80 per cent of items that
need to be repurchased, as well as the amount you want to reduce your
debt or product levels by, the balance remaining is what is left to spend
on new, unproven items.
If you spend anymore than this you are spending more than you have
coming in.
The key to getting this process right is to ensure that any new items,
regardless of how they are paid for, are deducted from the new open to
buy fund at the time of ordering.
If that’s done, then a jeweller avoids the trap of being lured into a false
sense of how much capital is available to be spent.
Unless you have a specific plan to increase or decrease your product
levels, you should end each period with the same amount of product
as you started and ideally with the same percentage of fast sellers.
The only change should be new product replacing old product that
is no longer required. Using this benchmark is the most effective way
to measure your buying and keep it under control.
Good luck
Putting any forecasts for the future aside, all businesses have the chance
to provoke internal sales improvement by securing control over the
elements which can always be managed, regardless of external volatility
or stability.
It is critical that businesses are operating with accurate markup figures.
Reviewing that information at the end of the financial year is too late to
repair issues. Do it now!
Old and stagnant inventory is an issue that can always be addressed.
Resolving those kinds of product management issues is a great way of
reinforcing feelings of control and building confidence for business owners.
Our 9ct gold designs are fashionable and practical.
Choose from a selection of stackable rings,
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SapphireDreams.com.au
Become a stockist today
02 9290 2199
Purchasing new products for a business is exciting, but restraint is a
must! Before any new inventory is acquired it’s essential that a business
is spending less than is coming in and that all this information is
measured and accounted for.
In the words of Tony Robbins – “it’s our decisions, and not the conditions
of our lives, which determines our destiny.”
DAVID BROWN is co-founder and business mentor with Retail Edge
Consultants and for more than 25 years has offered specialised training
and management services to retailers throughout Australia and New
Zealand. Learn more: retailedgeconsultants.com

Anyone can make a claim, but
unfortunately exaggeration is a blood
relative of falsehood and fiction.
As they say, the devil is in the details.
Numbers lead you to the detail and
the detail leads you to facts.

WORLD RANKINGS OF JEWELLERY
INDUSTRY PUBLICATIONS
As at 31 March 2022, Jeweller was ranked 65,246, in the world, well
ahead of other jewellery industry titles in more populous countries.
For example, the US magazines JCK, Instore, and National Jeweler,
ranked 87,514, 222,301 and 250,243 respectively, even though the
population of the US is much larger than Australia.
POSITION PUBLICATION COUNTRY
WORLD
RANKING
1 Jeweller Australia 65,246
2 JCK USA 87,514
3 Instore Magazine USA 222,301
4 National Jeweler USA 250,243
5 Retail Jeweller India 264,557
6 Jewellery Net Asia Hong Kong 371,672
7 Diamond World India 515,279
8 Professional Jeweller UK 550,812
9 Solitaire Magazine Singapore 842,952
10 Retail Jeweller Magazine UK 1,019,888
11 Indian Jeweller India 1,077,502
12 The Jewelry Magazine India 1,195,354
13 Jewellery Outlook UK 1,212,803
14 Jewellery World Australia 1,226,650
15 Art of Jewellery India 1,237,318
Which is why Jeweller remains #1.
Jeweller has been the leading voice of the Australian and New Zealand jewellery
industries for 25 years, and today we rank #1 in the world.
Alexa, the independent global ranking system for measuring website traffic and
readership, now ranks jewellermagazine.com as the most widely read industry
publication in the world – by far!
Better still, the daily time spent on jewellermagazine.com is more than 21 minutes,
which far exceeds all other international publications, which average only 2–3 minutes
per visitor. Moreover, our ‘page views’ is miles ahead of all other industry publications.
In addition, Jeweller’s social media presence dominates and our eMags boast more
than 12.3 million reads.
The numbers speak for themselves - follow the leader, and follow the readers too!
16 Jewellery Focus UK 1,290,905
17 Jewellery Business Canada 1,388,929
18 Jewellers Network South Africa 1,436,224
19 Jewellery Monthly UK 2,196,837
20 Canadian Jeweller Canada 2,670,625
21 The Retail Jeweler USA 3,218,391
22 Preziosa Magazine Italy 3,582,030
23 Gold Book Magazine Turkey 4,099,295
24 Bangkok Gems & Jewellery Thailand 4,558,422
25 Hong Kong Jewellery Magazine Hong Kong 6,296,819
26 The New Jeweller UAE / India 10,992,912
27 Jewel Trendz India NO DATA
28 Solitaire International Singapore NO DATA
29 Jewellery Time New Zealand NO DATA
POSITION
TRADING PLATFORM /
PUBLICATION
COUNTRY
WORLD
RANKING
1 Rapaport Magazine* USA 139,695
2 Idex* Israel 370,487
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
Denotes titles connected to diamond trading platforms / publication

NUMBER OF PAGES VIEWED BY READERS
TIME SPENT ON JEWELLERY WEBSITES
BOUNCE RATE / PAGE 'STICKINESS’
Page Views is the number of times a reader visits any page
on a website. A higher Page View figure the better, because it
means readers are more engaged in the content. Jeweller’s
Page View count of 12 leads all websites while most others
can only record a single Page View before the reader leaves.
Time-on-Page is the average time a reader spends on a page
while Time-On-Site is how long they spend on the site each day.
Jeweller leads the world with a Daily Time of 21.50 minutes,
while most other publications only manage 1-2 minutes. The
more time spent on a website, the better the global ranking.
The Bounce Rate measures the percentage of visits that
consist of only a single page view. It indicates the percentage
of readers that land on a website, and immediately leave
(‘bounce off’) meaning a low bounce rate is optimal. Alexa
records Jeweller’s Bounce Rate at less than 25 per cent.
POSITION PUBLICATION COUNTRY PAGE VIEWS
POSITION PUBLICATION COUNTRY
DAILY TIME
(IN MINUTES)
POSITION PUBLICATION COUNTRY
BOUNCE
RATE
1 Jeweller Australia 12.00
2 Retail Jeweller India 8.60
3 Jewellers Network South Africa 6.00
4 Jewellery Business Canada 4.00
5 Gold Book Magazine Turkey 4.00
6 Jewellery Net Asia Hong Kong 3.60
7 Solitaire Magazine Singapore 3.00
8 JCK USA 2.20
9 Jewellery Outlook UK 2.00
10 The Jewelry Magazine India 2.00
11 Jewellery Focus UK 2.00
12 Indian Jeweller India 2.00
13 Canadian Jeweller Canada 2.00
14 Jewellery Monthly UK 2.00
15 Instore Magazine USA 1.70
16 Diamond World India 1.50
17 National Jeweler USA 1.30
18 Professional Jeweller UK 1.10
19 Retail Jeweller Magazine UK 1.00
20 Art of Jewellery India 1.00
21 Jewellery World Australia 1.00
22 The Retail Jeweler USA 1.00
23 Preziosa Magazine Italy 1.00
24 Bangkok Gems & Jewellery Thailand 1.00
25 Hong Kong Jewellery Magazine Hong Kong 1.00
26 The New Jeweller UAE / India 1.00
27 Jewel Trendz India NO DATA
28 Solitaire International Singapore NO DATA
29 Jewellery Time New Zealand NO DATA
1 Jeweller Australia 21:50
2 Retail Jeweller India 14:59
3 Jewellers Network South Africa 12.22
4 Jewellery Net Asia Hong Kong 02.60
5 Art of Jewellery India 02.49
6 JCK USA 02.47
7 Indian Jeweller India 02.47
8 Gold Book Magazine Turkey 02.26
9 Jewellery World Australia 02.23
10 Instore Magazine USA 02.12
11 Diamond World India 02.03
12 Jewellery Outlook UK 01.53
13 Solitaire Magazine Singapore 01.51
14 National Jeweler USA 01.49
15 Jewellery Focus UK 01.32
16 Professional Jeweller UK 01.28
17 Jewellery Business Canada 01.17
18 The Jewelry Magazine India 01.05
19 Retail Jeweller Magazine UK 00.60
20 Jewellery Monthly UK 00.34
21 Jewel Trendz India NO DATA
22 Solitaire International Singapore NO DATA
23 Bangkok Gems & Jewellery Thailand NO DATA
24 The New Jeweller UAE / India NO DATA
25 Jewellery Time New Zealand NO DATA
26 Canadian Jeweller Canada NO DATA
27 The Retail Jeweler USA NO DATA
28 Preziosa Magazine Italy NO DATA
29 Hong Kong Jewellery Magazine Hong Kong NO DATA
2 Jeweller Australia 24.40%
1 Retail Jeweller India 22.70%
3 Jewellery Net Asia Hong Kong 36.80%
4 Retail Jeweller Magazine UK 45.50%
5 Jewellery Outlook UK 50.00%
6 Jewellery Business Canada 58.30%
7 The Jewelry Magazine India 60.00%
8 Jewellery Focus UK 62.50%
9 JCK USA 64.40%
10 Art of Jewellery India 69.20%
11 Diamond World India 69.80%
12 Professional Jeweller UK 72.20%
13 Instore Magazine USA 72.70%
14 Jewellery World Australia 78.60%
15 Indian Jeweller India 81.00%
16 National Jeweler USA 82.30%
17 Jewel Trendz India NO DATA
18 Jewellery Time New Zealand NO DATA
19 Canadian Jeweller Canada NO DATA
20 The Retail Jeweler USA NO DATA
21 Preziosa Magazine Italy NO DATA
22 Bangkok Gems & Jewellery Thailand NO DATA
23 Hong Kong Jewellery Magazine Hong Kong NO DATA
24 The New Jeweller UAE / India NO DATA
25 Jewellers Network South Africa NO DATA
26 Gold Book Magazine Turkey NO DATA
27 Solitaire Magazine Singapore NO DATA
28 Jewellery Monthly UK NO DATA
29 Solitaire International Singapore NO DATA
POSITION
TRADING PLATFORM /
PUBLICATION
COUNTRY
PAGE VIEWS
POSITION
TRADING PLATFORM /
PUBLICATION
COUNTRY
DAILY TIME
(IN MINUTES)
POSITION
TRADING PLATFORM /
PUBLICATION
COUNTRY
BOUNCE
RATE
1 Idex* Israel 1.60
2 Rapaport Magazine* USA 1.80
1 Rapaport Magazine* USA 02:20
2 Idex* Israel 02:06
1 Rapaport Magazine* USA 54.60%
2 Idex* Israel 63.70%
All data collated as at 31 March 2022

INTERNATIONAL JEWELLERY FAIR
Show & Tell
SHOW &
TELL
2022
The sky is the limit for buyers and suppliers alike at this
year’s International Jewellery Fair - the first large-scale
gathering of the industry since 2019. In this exclusive
preview, take a sneak peek at what’s on offer at the show.

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Alku
Galvin Watch Company
The Alku collection is inspired
by European dress watches
of the 1940s. A domed dial is
one of the key features in a
collection with vintage flair.
Galvin Watch Company took
the characteristics of this
style and fused it with Nordic
minimalist features on the dial.
galvinwatchcompany.com.au
STAND
B39
Ania Haie
Duraflex Group Australia
A daily jewellery must-have, this solid
14-carat gold mini padlock paired
with the delicately-crafted gold chain
provides a stunning accent to your
everyday look. A simple yet stunning
aesthetic piece that matches any style.
aniahaie.com.au
STAND
A07
APDX
SAMS Group Australia
The Australian Pink Diamond Index (APDX)
boasts Argyle pink diamonds in a variety of
different cuts and colours, accompanied by
expert advice and handling, for a smooth
investment process.
australianpinkdiamondexchange.com.au
STAND
F18
Arina Jewellery
Indian diamond jewellery manufacturing
company Arina Jewellery presents the
Diamonds of her Dreams collection, featuring
impeccably created and crafted jewellery.
arinajewellery.com
STAND
E46
Atlas Pearls
Over the past 29 years Atlas
Pearls, an Australian company, has
become one of the world’s largest
producers of the much soughtafter,
white, and silver South Sea
pearls. Atlas Pearls produced
more than 560,000 pearls in 2021.
atlaspearls.com.au
STAND
G32
Autore Pearls
Autore's Timeless Collection. St Moritz earrings,
detailed in 18-carat white gold with white diamonds
and white South Sea Pearls. St Moritz pendant,
featuring 18-carat white gold with white diamonds
and a white South Sea Pearl. Single row diamond
eternity ring, with 18-carat white gold and white
diamonds paired with a white South Sea Pearl.
autorepearls.com.au
STAND
G09
Aztec Gold and Silver
Aztec Gold & Silver presents stunning new
pendants on sterling silver chains, available
with matching earrings. The stunning silver
range from Europe will also be available,
showcasing a wide variety of collections.
STAND
D44
Baume & Mercier
Duraflex Group Australia
Driven by the prestigious Baumatic
manufacture calibre, the Riviera 10616 is the
all-road Swiss watch. Its transparent blue
sapphire dial, interchangeable metal bracelet
and open caseback complete the sporty look.
dgau.com.au/baume-mercier
STAND
A07
60 | August 2022

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to buy and sell your Argyle pink diamonds.
Every diamond we list undergoes and completes a strict authenticity verification process.
APDX will also arrange safe and secure transportation, no matter if you are buying or selling.
Our team has over 25 years of industry experience and expert knowledge
in working with Argyle pink diamonds.
Become an Authorised Agent
apdx.com.au sales@apdx.com.au 1800 344 008

»CELEBRATING
BEAUTY OF NATURE«
INTERCHANGEABLE
IJF
D01
Timesupply
jewellery + watches
p +61 (0)8 8221 5580
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exclusive distributor AU & NZ
IJF
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Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
BECKS
Inspired by natural forms
and environmental
awareness, BECKS
Cascade Collection is a
refreshing take on timeless
patterned wedders.
Available in a variety of
widths, Cascade features
patterns and colours to suit
a variety of preferences.
pwbeck.com.au
STAND
E01
Bella Donna Silver
Bella Donna Silver's
oval ring (12x16mm) is
available with amethyst,
blue topaz, and green
amethyst. The double
pear-shaped earrings
(8x5mm) are available
with the same gemstones.
belladonnasilver.com.au
STAND
A14
Blue Diamonds
STAND
A24
The Lightening Ridge opal,
gem and diamond set is a
showpiece statement, with the
striking necklace catching the
eye with four opals within an
array of diamonds. Set using
a floating diamond method,
giving exceptional brilliance.
Gem set oval links add colour
with yellow, blue sapphires,
tsavorite, and garnets creating
unique appeal.
Blush Pink Diamonds
SAMS Group Australia
The Blush Amelia Ring showcases
a round-cut Argyle pink diamond,
surrounded by a double halo, set
on a pave white diamond band.
The Kimberley Birgitte Wedder is a
simple band, featuring Argyle pink
diamonds, set in 18-carat rose gold.
pinkkimberley.com.au
STAND
F18
(02) 9417 0177 | www.dgau.com.au

EST. 1981
Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
GREAT WATCHES EST. 1981
DESERVE
A GREAT WATCH BATTERY
GREAT WATCHES DESERVE
A GREAT WATCH BATTERY
Blush Pink Diamonds
SAMS Group Australia
The Blush Hermione set features
sparkling round-cut Argyle pink
diamonds, set in an 18-carat rose
gold floral design and placed
delicately on a white gold band.
pinkkimberley.com.au
STAND
F18
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Bronzallure
Duraflex Group Australia
Designed and made in Italy, the
Felicia earrings with natural
stones and precious cubic zirconia
elements speak the language of
love and tenderness. Golden rose
patented alloy, 18-carat rose gold
plating, cubic zirconia and selected
natural gemstones – nickel-free,
cadmium-free and hypoallergenic.
bronzallure.com
Carmen Jewellers
Carmen Jewellers presents a
natural emerald collection. 14-carat
yellow gold natural emerald
(0.82-carat) and lab-grown diamond
(0.22-carat) earrings. 14-carat yellow
gold natural emerald (1.25-carat)
and lab-grown diamond (0.18-carat)
pendant. 14-carat yellow gold
natural emerald (1.17-carat) and
lab-grown diamond (0.18-carat) ring.
Centrestone Insurance
Centrestone Jewellery Insurance
offers customers an effortless
solution to insuring their precious
jewellery pieces by working closely
with a network of jewellers to offer
an insurance policy that is tailored
specifically for each unique piece of
jewellery. Policies are custommade
by jewellery experts with
comprehensive worldwide coverage.
centrestone.com.au
STAND
A07
STAND
G18
STAND
B10
All button batteries for trade use only.

Producing more than 550,000 pearls each year across 7 farm sites
throughout the South Seas, Atlas Pearls is a global leader in the
production of sustainable South Sea pearls, certified from the source.
Available online around the world.
ATLASPEARLSTRADE.COM

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Chemgold
chemgold.com
STAND
D17
Enhance and complete designs
with Chemgold's wide range of highquality
precious metal components.
Produced in Australia and Italy,
Chemgold's findings are made from
the finest materials which come in
18-carat, 9-carat and sterling silver.
Colours of Chemgold is
the full range of casting
alloys from the state-ofthe-art
precious metal
casting house of Chemgold.
The collection of alloys is
the largest in the country,
offering options in platinum,
white gold, yellow gold,
silver, bronze, and brass.
Classique
SAMS Group Australia
A Classique staple design, these
watches are available in an
array of metal and dial colours,
featuring a bracelet band and
round face, with the option for a
diamond bezel. Fitted with Swiss
quartz movement.
samsgroup.com.au
STAND
F18
Coeur de Lion
Timesupply
Coeur de Lion's new iconic Geo Cube style in fresh turquoise and
blue tones. Featuring a unique asymmetric design with crystal
pearls and cubes of natural semi-precious stones blue such as
aventurine, sodalite, howlite, and amazonite. Handmade in Germany.
timesupply.com.au
STAND
D01
Cudworth
Cudworth Enterprises
Hardware is the new collection for men
from Cudworth; semi-precious bead
neckpieces and bracelets stacked with
Italian leather bracelets. The collection
also features stainless steel neck chains
and bracelets in Ion plated colours such
as 14-carat gold, black, and gunmetal.
cudworthenterprises.com
STAND
C24
Diamonds by DGA
Duraflex Group Australia
Featuring the most beautiful selection of
jewellery finished to the highest quality,
our range includes 9-carat and 18-carat
gold diamond earrings, bracelets, rings
and pendants. The settings include;
claw, invisible, illusion plate pavé and
micro pavé. Our natural diamonds are
high-quality colour and clarity.
dgau.com.au
STAND
A07
DJ Diamond Designs
Featuring the most beautiful
selection of jewellery finished
to the highest quality, our
range includes 9-carat
and 18-carat gold diamond
earrings, bracelets, rings
and pendants. The settings
include; claw, invisible, illusion
plate pavé and micro pavé. Our
natural diamonds are highquality
colour and clarity
djdiamonddesigns.com.au
STAND
C44
68 | August 2022

Concept to Creation
YOUR JEWELLERY DESIGN BROUGHT TO LIFE
1300 886 108 | AUSTRALIA WIDE
palloys.com

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Ellendale Diamonds
ellendalediamonds.com.au
STAND
A23
18-carat white or yellow gold
rings. Each ring has a central
four-claw setting that features
cushion-cut Australian yellow
diamond (0.71/1.01) carats.
Upswept shoulders are grain set
with 16 white round brilliant cut
diamonds (0.24 carats).
18-carat white or rose gold
huggie style earrings. V claw end set
with 0.24 carats of white marquise
diamonds and bezel set with 0.06
carats of pink round diamonds from
the Argyle diamond mine.
EDOX
Duraflex Group Australia
Edox proudly acknowledges its heritage
but also embraces innovation and
imagination in its collections. Today, Edox
is known for its highly water-resistant
timepieces, complex hand-polished watch
cases and traditional hand assembling.
dgau.com.au
STAND
A07
18-carat white or rose gold knifeedge
style half hoop drop earrings.
Two removable enhancers feature
11mm Broome South Sea pearls with
white round diamonds (0.13 carats)
and 68 round pink diamonds (0.34
carats) from the Argyle diamond mine.
Specialists in Lab-Grown & Natural Diamonds
Gemstones
& Jewellery Manufacturing
T: (08) 9349 7861 | E: wholesale@pinnaclejewellers.com | www.pinnaclejewellers.com
pinnaclejewellers

(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Evotech
evotechpacific.com.au
STAND
G14
The EvoTech ProLaser
Welder is a table-top
laser welder designed
and manufactured in Italy.
Available in four variants,
namely 150J - 180J - 200J
and 200J-Plus which are
called EASY-1, EASY-2,
EASY-3, and EASY-3 Plus.
The L3 Magic Laser
Engraver provides
jewellers with an in-store
engraving option suitable
for all to use. The intuitive
software makes light
work of inside and outside
ring or bangle engraving,
flat engravings, and
image engraving.
Fabuleux Vous
Fabuleux Vous' La Pierre
Carnelian Long Necklace
features the warm, vibrant,
orange colours of the carnelian
stone, all placed on a sterling
silver curb chain. The total
length of the necklace is 85cm,
and comes with a 5cm extender.
fabuleuxvous.com
STAND
F14
Firegem
Paterson Fine Jewellery
Firegem's new cross-pendant features
a 9-carat yellow gold oval claw set
(7X5mm) with triplet opals and a single
diamond. Additonally, matching earrings
and a pendant crafted with triplet opals
and solid 9-carat yellow gold in an
elegant leaf-shaped pattern.
pfj.com.au
Georgini
westendcollection.com.au
STAND
F04
The Globe Bracelet by Georgini is inspired
by luxurious red carpet events and dazzles
with pearl and a simple chain adorned
with sprinkles of sparkle and the Georgini
emblem. Crafted from luxurious rhodium
plated 925 sterling silver it measures 16cm
with a 4cm extension.
Diamonds by Georgini features
stunning lab-grown diamonds,
laser-inscribed on the girdle with
a report number and a statement
that guarantees quality and
authenticity with the independent IGI
certification. 18-carat white gold ring
with a 1-carat solitaire diamond.
The Georgini Gold Collection is
crafted from 9-carat gold and set
with dazzling moissanite stones.
Features a round brilliant-cut
1.25-carat solitaire stone in a
claw setting as the centrepiece.
Stones run along the band, paired
with a flawless 9-carat gold band.
Gerrim
Gerrim's dazzling turqoise
and diamond earrings and
ring as well the stunning
necklace pendant.
gerrim.com
STAND
B13
Global Jewellery Concepts
Stunning ideal-cut zirconia necklace
set in 9-carat gold as a part of the
EverGem Summer collection.
STAND
B12
72 | August 2022

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Global Jewellery Concepts
Sapphire and diamond ring set in 18-carat
white gold. Part of the Myriad Diamonds
Summer Collection, also available in
ceylon sapphire and ruby.
evergem.com.au
STAND
B12
Grown Diamonds
Showcasing the world's
largest round lab-grown
diamond. This stunning
11.32-carat F VVS2 round
brilliant-cut diamond is IGI
certified, an ideal cut with
hearts and arrows.
growndiamonds.com.au
STAND
E10
Ikecho
Ikecho’s best-selling 9-carat YG Keshi
freshwater pearl with a beautiful
18mm diamond pendant (0.03ct).
ikecho.com.au
STAND
E13
Classic collection
A golden touch to our timeless design.
Inspired by nature.
Find out more about the
Classic collection at www.mondaine.com
Ingersoll
West End Collection
The art of everyday luxury
defines the latest collection
from Ingersoll. Presenting
the Jazz Automatic Watch.
Featuring a skeleton dial
with a day/night and dual
time function the intricate
craftsmanship of the watch is
highlighted.
westendcollection.com.au
STAND
F04
(02) 9417 0177 | www.dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Inspiring Pearls
inspiringpearls.com.au
STAND
C31
CUDWORTHENTERPRISES.COM
STAND C24
Remarkable white
button freshwater pearls
(9mm) set on matte
finish earrings. Available
in yellow gold-plated
sterling silver, or simple
sterling silver.
Remarkable
nucleated semi-baroque
natural multi-colour
freshwater pearl
necklace (10-12mm).
JAG
Duraflex Group Australia
JAG is a relaxed, understated and
versatile brand with a core product
offering that is considered in design.
Simple, clean lines defined by
quality fits and fabrications underpin
each Jag range. Jag is effortless and
relaxed in the Australian way.
dgau.com.au
STAND
A07

(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
La Couronne
Discover the Elizabeth ring, La Couronne’s
new trilogy birthstone range. The collection
pays homage to the Platinum Jubilee,
honing in on the theme of celebrating
one’s unique and personal achievements.
Accompanied with shoulder diamonds and
set in 9-carat gold, the design is timeless.
lacouronnejewellery.com.au
STAND
C20
Limra Gems
STAND
H16
Limra Gems presents
a centred Colombian
emerald gemstone
surrounded by pigeon
blood red ruby and
white diamond. A
gold ring inspired by
Art Deco style.
LJ West
The Scott West Aureole Hoop
Earrings Collection, featuring
large (37mm) 18-carat yellow
gold with 268 stones of natural
pink diamonds (2.16-carat)
as well as 154 white melee
diamonds (1.42-carat).
scottwestdiamonds.com
STAND
F10
Luminox
Duraflex Group Australia
The new Pacific Diver Chrono
is a beautiful addition to the
Chronograph series. Defined
by a stainless steel case and
Carbonox unidirectional bezel,
it's a vital instrument for any
diver. This watch comes in a
stainless-steel bracelet.
luminox.com.au
STAND
A07
Mark McAskill Jewellery
Stunning new dress ring design
which features octagonal cut
lemon quartz stone (14x10mm)
which has been claw set in
9-carat yellow gold.
markmcaskill.com.au
STAND
C10
Maurice Lacroix
West End Collection
Maurice Lacroix unveils its
latest timepiece, the AIKON
Skeleton. Presented in a 39mm
stainless steel case, the modest
diameter of this watch promises
widespread appeal. Waterproof
with sapphire crystal glass.
westendcollection.com.au
STAND
F04
78 | August 2022

The experts
in coloured stones.
LOOSE DIAMONDS
LOOSE COLOURED GEMSTONES
DIAMOND & COLOURED STONE
ENGAGEMENT RINGS
WEDDING & DRESS RINGS
CAD DESIGN
SAPPHIREEXPORT.COM
07 3229 1250 sales@sapphirexport.com

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Mondaine
Duraflex Group Australia
Inspired by nature, the 40mm
stainless steel case, hands, and
indexes of this watch from the
Classic collection are matte-finished
preserving Mondaine's timeless
design and minimalist look. With a
deep sea blue dial and a Milanese
mesh strap, this timepiece pays
homage to the wonders of our seas.
dgau.com.au
STAND
A07
My Little Angel
Paterson Fine Jewellery
Headlined by remarkable
sterling silver, My Little
Angel is an open belcher
link bracelet that features
a little feet charm and a
pink enamel heart charm.
pfj.com.au
STAND
B01
NCF
These rock chains are meticulously
fabricated to emanate brilliance and
elegance, and are available in various
real gold plating and protected with
anti-tarnish treatment, finished as
bracelets, necklaces, and anklets.
ncfaus.com
STAND
B49
Nordgreen
West End Collection
Nordgreen's Unika gold 5-link
bracelet 32mm watch. Danish
design by Jakob Wagner for a
timeless look with interchangeable
straps for versatility.
westendcollection.com.au
STAND
F04
Specialising in:
• Argyle origin
• Coloured diamonds
• Synthetic diamonds
• Rough diamonds
DIAMOND LABORATORY
INCREASE
Y UR SALES
WITH LA COURONNE’S
COMPLETE MARKETING PACKAGE
COME AND
SEE US AT
THE INTERNATIONAL
JEWELLERY FAIR!
STAND
C20
Interest Free Finance Available For Approved Customers
Your Very Own Personalised Christmas Catalogue!
What we offer:
• Quick turnaround stock!
We dispatch all orders
received by 12pm for
delivery the following day
• Personalised catalogues
with your store name,
logo and address
• Fantastic range of
POS material
• Digital marketing package
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T H E S E A S O N O F
YOUR LOGO PRINTS HERE
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M2259
$ 249
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$ 1195
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www.deltadiamonds.com
0439 209 933
To view our range and order stock
visit us at www.lacouronnejewellery.com.au
or email us at sales@lacouronnejwl.com.au
For more information, call us now! 03 9764 2165
CATALOGUE
120979 LC Christmas Catalogue 2022_P1-7.indd 1 1/7/2022 9:45 am

INTERNATIONAL JEWELLERY FAIR 2022 | Show & Tell
Nomination
Timesupply
nomination-jewellery.com.au
STAND
D01
It’s all about the colour with this
new range from the Nomination
Fashion collection. Features
beautiful sparkling zirconias in a
variety of shapes set in 22-carat
rose gold plated sterling silver.
OOZOO Timepieces
Our newest OOZOO Timepieces models include
gold and silver cases with coloured leather
straps in our 'vintage' slimline range. All
OOZOO watches feature Japanese quartz Miyota
movements that are water resistant to splash and
rain with a stainless-steel back that is nickel safe.
oozoo.com.au
STAND
E45
Three fashionable new bracelet
bases, including the on-trend
“oil slick” colour to add a new
dimension to this ever-popular
range. Unique interchangeable
rings and tops in new styles and
vibrant sparkling fashion colours -
such as ruby, emerald, chrysolite,
fuchsia, peridot, blue zircon and
purple velvet.
INTERNATIONAL JEWELLERY FAIR
SYDNEY | 27TH - 29TH AUGUST

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
RINGERS WESTERN
OUTBACK WATCHES
Palloys
palloys.com
Born out of passion and the
art of jewellery, Livadi creates
commitment rings and jewellery,
with an emphasis on quality
craftsmanship using only the
finest materials.
STAND
C01
Paterson Fine Jewellery
STAND
B01
A new range of flat top signet rings
in a polished finish. 9-carat yellow
gold which comes in five unique
styles - the Drake, Declan, Dominic,
Daryl, and Dixon varieties.
New collection of ladies flexible
cuff bangles crafted in 9-carat yellow
gold. Available with zirconia and
blue topaz.
pfj.com.au
Become a stockist today
sales@samsgroup.com.au
02 9290 2199

(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Pink Kimberley
SAMS Group Australia
pinkkimberley.com.au
STAND
F18
Rare Argyle diamond
rings from Pink Kimberley
are crafted in floral
inspired settings, featuring
an array of round-cut
Argyle pink diamonds,
encrusted with white
diamonds, set in 18-carat
rose and white gold.
The Kimberley Kira set
features a matching pendant
and ring, with two overlapping
bands of Argyle pink and
white diamonds, set in
18-carat white and rose gold.
Poix & Troy
Poix & Troy Australia are brand
ambassadors and represent
some of the finest jewellery
houses from around the world.
Aiming to build strong personal
partnerships with incredible
designers and leading
manufacturers, to develop
dazzling and unique collections.
poixandtroy.com.au
STAND
G20
Podium
An award-winning technology company, developing
cloud-based software which specialises in customer
feedback and communication between businesses
and consumers. Developed with an aim to assist
businesses in improving their online reputation.
podium.com.au
STAND
F44
Police
Duraflex Group Australia
Police captures the essence of the
urban, free and rebellious street
spirit. Designed primarily for men,
the Police range also incorporates
unisex and ladies’ styles from retro
to modern, glamorous to sporty.
Technology and design come
together seamlessly in timepieces
that feature top-quality materials
and functionality.
dgau.com.au
STAND
A07
Qudo
Timesupply
Unique interchangeable
rings and tops in new
styles and new vibrant
sparkling fashion colours
- such as ruby, emerald,
chrysolite, fuchsia,
peridot, blue zircon, and
purple velvet.
qudojewellery.com.au
STAND
D01
84 | August 2022

Find comfortable glamour in Blush Pink diamonds, elegant designs,
showcasing a beautiful glimpse of Australian history.
Become a stockist today
02 9290 2199

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
RAS
Timesupply
New wearable art from Spanish
handmade brand RAS is inspired
by the nature around us. The
Tropic Ovals bangle features a
unique shaped wide cuff style
with an intricate leaf pattern.
timesupply.com.au
STAND
D01
Retail Edge
Know your business and industry
trends anywhere, anytime. At the beach
or at a trade fair, review your stock and
sales performance from any supplier,
even while you’re on their stand. Use
pooled data to optimise profits by
knowing the best-performing items
and emerging trends before you buy.
retailedgeconsultants.com.au
STAND
E44
Salt & Pepper Diamonds
Salt and pepper diamonds are
mined,natural diamonds without
treatment. The heavily-included
nature of Salt and Pepper
Diamonds means they are all
unique and incomparable. They
have become a popular and
economical choice for Millennial
engagement rings and everyday
jewellery alike.
saltandpepperdiamonds.com.au
STAND
A20
Sapphire Dreams
SAMS Group Australia
sapphiredreams.com.au
STAND
F18
The beautiful Sapphire
Dreams Trilogy rings feature
Australian sapphires in teal,
blue, yellow, and green, set in
18-carat white and yellow gold
encrusted with white diamonds.
Scanlan & Co.
RJ Scanlan’s Lux Collection
is made in Germany and is an
800-piece range of matching
pendants, earrings, and rings
has something for all tastes and
budgets. The manufacturing is
second to none from a company
that's been creating beautiful
jewellery for more than 80 years.
scanlanandco.com.au
STAND
G10
Halo-style 18-carat
Australian sapphire rings, from
Sapphire Dreams, are classic,
luxurious pieces. Featuring
an array of stones including
deep teal, green, yellow, and
everything in between.
86 | August 2022

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Shillcombe
matsjonasson.com.au
STAND
A02
Hand-made, collectable
Swedish crystal from Mats
Jonasson, Maleras. The blue bird,
kingfisher, puppy and red rose
designs will dazzle as a statement
piece reflecting the artisan,
glassmaking traditions combined
with innovative design."
Sekonda
Duraflex Group Australia
With a wide-range of ladies
and gents models, SEKONDA
combines elegance, fashion
and style at a competitive price
offering value to the Australian
consumer second to none.
SEKONDA is an ideal choice for
all astute customers of highquality,
value-for-money watches.
dgau.com.au
STAND
A07
Stones & Silver
Birthstone necklaces made
from .925 sterling silver
featuring a silver disc perfect
for engraving and a Preciosa
crystal for each month. Available
individually or as a set.
stonesandsilver.com.au
STAND
F02
Est.1968
AUSTRALIA’S WIDEST
RANGE OF GEMSTONES
ALL VARIETIES OF NATURAL
COLOURED GEMSTONES
Bracelets & Necklaces | Bangles | Earrings
Pendants | Fine Chains | Rings | Findings
Personalised Jewellery | Cufflinks
NATURAL FANCY
COLOURED DIAMONDS
OPALS AND PEARLS
MEMBER
03 9654 4449
Level 4, Wales Corner
227 Collins Street
Melbourne VIC 3000
gems@kandk.net.au
Email info@eugenesjewellery.com.au
Address 802/125 Swanston Street, Melbourne VIC 3000
Phone 03 9662 4486
eugenesjewellery.com.au

Made in Italy . Made in Italy .
BORN IN MILAN
Bronzallure is the Made in Italy brand that designs jewels in the exclusive
Golden Rosé alloy plated in 18kt rose gold. All the designs are hand-set
and hand-finished in-house. Family owned, third-generation of Jewellers
with over 60 years of experience.
QUALITY & COMFORT
Bronzallure jewels are the perfect union of avant-garde technology, fine
Italian manufacturing and a careful selection of the best natural stones.
All jewels are hypoallergenic, nickel, cadmium and lead-free, whilst
bearing a signed guarantee that certifies their excellent quality.
PATENTED INNOVATION
Bronzallure Milano innovation is the crafting of the particular Golden
Rosè® alloy, a newborn rose metal, which is through to the core of every
jewel. A result of 10 years of research, the unique formula provides
hypoallergenic, tarnish-resistant, lustrous and long term immutability of
colour.
(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
Stones & Silver
Set in .925 sterling silver
these stunning stud chain
earrings are a must-have..
Additionally, the .925
sterling silver 7mm chain
link ring is right on trend.
stonesandsilver.com.au
STAND
F02
Thomas Sabo
Duraflex Group Australia
THOMAS SABO launches
Rainbow Heritage and Pearls
and Chains collections.
Colourful gemstones, elegant
creations and filigree details:
the new sterling silver
collection by THOMAS SABO is
all about confidence and hope.
thomassabo.com.au
STAND
A07
The Battery Man
thebatteryman.com.au
STAND
B19
Looking for new ways
to increase business? Try
a Seiko Watch Battery
Replacement Service. Ask us
about out Seiko Starter Kits.
NEW Seiko S880 digital
multi-tester for watches
and clocks. It measures
battery voltage, resistance
of coil block, light
segmentation and the
current consumptions of
circuit block or movement
module. Easy to use.
TW Steel
Duraflex Group Australia
The new Red Bull Ampol
Racing watch collection
celebrates one of the
most prolific teams in
motorsports. Powered by
Swiss Made movements
and high-end specs, the
three new performance
timepieces are built with
racing in mind and at heart.
twsteel.com.au
STAND
A07
UNOde50 Spain
Timesupply
New from the UNOde50 Extraordinary
Collection is this stylish OVNI range, bold
and modern organic styled link chains
with shimmering feature shell pearls.
unode50.com.au
STAND
D01
Virtual Diamond
Boutique
Virtual Diamond Boutique
puts the world’s finest
diamonds, gemstones,
and finished jewellery
right in your hands. Rich
visual search and in-app
communications transform
the sourcing experience and
make you more efficient and
effective than ever before.
vdbapp.com
STAND
D46
Ven Diamonds
STAND
B38
Granted Australian
patent for a digital
vending machine
dispensing precious
items, dispensing GIA
certified diamonds
(5-point si1 and VS)
and 1-gram bullion
(Perth Mint).
90 | August 2022

Australia is enriched with amazing treasures. Sapphire Dreams pays
tribute to the beauty of natural Australian sapphires, sustainably
sourced from the sapphire fields of inland Eastern Australia. Our
Australian sapphire jewellery collection is crafted in 9ct or diamond
set 18ct gold. To achieve this level of uncompromised excellence,
all sapphires pass through the hands of our skilled gem cutters to
become one-of-a-kind, timeless masterpieces.
SapphireDreams.com.au
Become a stockist today
02 9290 2199

Show & Tell | INTERNATIONAL JEWELLERY FAIR 2022
WOLF 1834
Duraflex Group Australia
Classics are not created, they are born,
destined to be one-offs, different, unique,
and above all else, timeless. British
racing has, in a very short span of time,
become a classic and truly one of a kind.
dgau.com.au/wolf
STAND
A07
CHOOSE
COLOUR AT FV
World Shiner
World Shiner proudly
introduces a new range of
necklaces and bracelets
with natural and lab-grown
diamonds. The range
includes sizes ranging
from 2-point to 50-point.
worldshiner.com
STAND
G36
Worth & Douglas
Hunting for a ring
with a twist? These
new diamond wedding
rings include curved
and wishbone designs
with a modern twist.
Available in most alloys.
wdrings.com.au
STAND
E12
ZETAGS
ZETAGS provides everything you need to
print using the world’s most advanced
solutions for jewellery. Get the world’s most
durable tags exported to over 40 countries,
along with a cloud-based design and print
package that runs right from your Google
web browser.
zetags.com
STAND
F50
WWW.FVJEWELLERY.COM

TIME TO FUTURE PLAN...
IT’S ALL HERE!
AUGUST 27 – 29, 2022
ICC Sydney, Darling Harbour
jewelleryfair.com.au
Scan to register
Proudly
supported by
Diamond Sponsor
Gold Sponsor
Silver Sponsor
Organised by
Est. 1990

FEATURE
Diamond Industry Update
LAMENTING THE
Natural Diamond
Producers'
MISSED INCOME
The international diamond industry has been reshaped by the economic
sanctions imposed on Russia following the invasion of Ukraine. PRANAY
NARVEKAR and CHAIM EVEN ZOHAR of IDEX explore some of the most
significant changes to the market and the ramifications on the pipeline.

FEATURE | Diamond Industry Update
by PRANAY NARVEKAR &
CHAIM EVEN ZOHAR
It is well known that in 2021, the diamond
midstream and downstream sectors experienced
what was probably one of their best years in
recent memory, right up there alongside 2011.
In the euphoria, US$20 billion of potential and thus
unearned income was lost as a ripple effect of the
legitimisation of laboratory-grown diamonds (LGDs) by
De Beers. High Street jewelers and high-end jewellery
chains, traditionally the greatest defenders of the natural
product, have lost their inhibitions and are now the main
LGD drivers, without reputational fears.
Nevertheless, the entire industry not only saw a surge
in sales after the COVID outbreak in 2020, but also
experienced one of its most profitable years, something for
which it had been yearning. 2021 helped the industry ‘rightsize’
its inventories and bring the overall business model
back in line with what it should be.
De Beers, champion of the natural diamond industry, triggered
the universal acceptance of the competing LGD product with
the launch in 2018 of its Lightbox range of diamonds. It’s
now apparent this move heralded a point of no return for the
massive uptake of the LGD industry and the natural diamond
industry will now have to live with the implications.
Those who have followed our annual analysis for many years
will remember that we have said that eventually the price
differentiation between natural and LGD will disappear, and
the market will know only one product, called diamonds.
Fortunately, we aren’t there yet!
With the launch of Lightbox, De Beers management said
they hoped to keep LGD prices in check and to corral LGD
into the impulse-purchase category. All this was backed by
a lot of research.
The reality is quite different; a bulk of LGD sales now cater
to the bridal market! Just read one of many headlines on
bridal websites: ‘These are the best places to buy labgrown
diamond rings’, or ’Maximise your budget without
sacrificing style’.
We find it difficult to believe that De Beers’ research missed
this outcome.
K E Y STATS
Financial
figures from
the pipeline
$22.1bn
Polished diamond
sales, in US Dollars,
for 2021.
$10bn
Estimated total debt
in US Dollars in the
diamond midstream
in 2021.
$230m
Rough diamonds sold
by Gokhran, Russia's
state treasury, from
the stockpile in 2021.
$20b
The potentially
unearned income,
in US Dollars, for
diamond producers
as a result of De
Beers' launch of
Lightbox.
Pricing policies in natural and LGD diamonds are not all
that different. The bulk of LGD sales by value are in the
larger stones (pointers and carat-plus stones) and if LGD
stones were sold at natural prices, the size of the diamond
pipeline would probably nearly double from $US22 billion of
polished sales to $US40 billion.
While it can be argued that it might not necessarily be a
correct comparison, it highlights how big a dent the LGD
market has made in the natural diamond industry.
It is just a matter of time before countries that produce
natural diamonds fully realise the irreversible damage the
legitimisation of LGDs has caused to the natural diamond
pipeline. In any case, it’s probably too late for Botswana and
Namibia to rebel against De Beers.
That is, the producing countries have also seen a steady
surge in demand, so they may find it difficult to measure
the ‘unearned potential income’. The same counts for
achievable rough prices; without the LGD alternative on
the market prices would have increased much more.
Natural producers are the only pipeline participants who are
tied to natural diamonds. All others, including De Beers, are
enjoying the LGD fruits.
Market share transition
For the diamond industry, the US is the primary market
for diamond jewellery, which accounts for more than 50
per cent of the global market.
In 2021, the US market share of diamonds increased
from about 54 per cent to nearly 60 per cent.
Other markets also showed a good recovery follwoing the
2020 problems and overall the retail industry achieved a
growth of nearly 32 per cent, an increase of about $US85
billion. China and India were the other standout regions,
with Hong Kong also recovering well.
Retailers across the world had a dream run in 2021. Not
only did their sales improve, but the margins also improved
across retail. While an increase in online sales meant that
margins tightened, demand meant that the pricing power
of the retailers increased, leading to lower discounting and
effectively higher margins.
August 2022 | 95

Diamond Industry Update | FEATURE
CHART A: SEASONALLY ADJUSTED CONSUMPTION EXPENDITURE BY CATEGORY ($US BILLION)
Source: Bureau of Economic
Analysis, US Department of
Commerce
Chart adapted from IDEX
Jewelry and watches
Durable goods
Nondurable goods
Financial Services, Insurance & Non-profits
Personal consumption expenditures
Housing, Utilities, Healthcare & Other Services
Food, Accomodation & Personal Care Services
Transportation, Recreation & Personal Care Services
Additionally, LGD sales also increased significantly, often
providing better margins than the natural product.
Due to the bull-whip (or ripple) effect in the polished diamonds
pipeline, polished increased by about 55 per cent compared
to 2020 to reach $US22 billion. This was despite the fact that
retailers sold down from their existing inventories.
Part of this increase is attributable to the rise in prices, which
averaged about 10-15 per cent for the year. However, there
were specific areas that had a much more substantial price
rise.
The Argyle mine, which provided about 2-3 million carats
of mainly smaller and cheaper quality polished, closed in
late 2020 and by 2021 all rough from the Argyle mine was
exhausted. These goods were generally used in jewellery
mass-produced for the US market.
The prices for these goods remained manageable for a major
part of the year; however, in the last quarter, as polished
stocks from Argyle rough were used up, prices moved up
to levels that were about 30-40 per cent above that in the
previous year.
As previously mentioned, a big chunk of the business lost due
to the non-availability of the product from the Argyle mine was
made up by the LGD industry, for which 2021 was even better
than the previous year.
The penetration of LGD in the US market significantly
increased as more stores started experimenting with
maintaining LGD stock, and the LGD market suppliers have
made the most of the opportunity.
Unlike previous predictions of LGD being restricted to fashion
and lower-priced jewellery, bridal customers were also
purchasing LGDs in significant numbers.
This implied that larger stones, including in the 2-carat plus
range, remained in demand. What became apparent was that
retailers were offering customers a larger LGD in the same
budget, making it a value offering for customers.
At the lower end of the market, LGD jewellery could offer
a better-looking product than the jewellery with polished
diamonds from Argyle.
DI A MOND FIGURES
Going Deep
60%
Polished diamond
sales, in US
Dollars, for 2021.
26%
of the world's
rough diamond
supply by value
comes from
Russia
50%
of polished
diamonds used
in jewellery are
sourced from
Alrosa
95%
of diamonds
produced in
Russia are mined
by Alrosa
Change coming
While the market share of LGD-based jewellery is
constantly increasing, a good portion of the wholesale
demand for LGDs still continues to come from the
introduction in new stores, rather than end-product
demand.
But this will change because of the sophistication and
effectiveness of LGD promotions, including the marketing
spend by Lightbox.
Also, most of the suppliers of LGD jewellery come from
a natural diamond background and many of the same
practices such as memo offerings have started to be used
in the LGD industry to push sales.
Due to the bull-whip (or ripple) effect in the polished
diamonds pipeline, polished increased by about 55
per cent compared to 2020 to reach $US22 billion.
Actually, the same emotional love message, used for
natural diamonds, is now also applied to the LGD product.
Diamond polishing has been a highly competitive business
with very slim margins for most of the past decade.
However, 2021 was a pleasant exception. The generally
increasing polished prices meant that polishers were
generally able to enjoy much larger margins.
Apart from the margins, polishers also were able to ‘rightsize’
their inventory. The high demand enabled them to sell
‘non-moving’ stock, and almost all types of goods found
buyers at an acceptable price.
The increased turnover and profits, along with the rightsizing
of the inventory, meant that many businesses in the
midstream were able to significantly reduce their leverage.
The total debt in the midstream was estimated to be a little
above $US10 billion.
While this was an increase over the previous year, it came
on the back of significantly higher turnovers. With lowinterest
rates, the industry would have wanted to take on
C
M
Y
CM
MY
CY
CMY
K
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Diamond Seasonally Industry Adjusted Update Consumption | FEATURE
Expenditure
Source: Bureau of Economic Analysis, U.S. Department of Commerce
CHART B: SEASONALLY ADJUSTED
CONSUMPTION EXPENDITURE
– JEWELLERY ($US BILLION)
Source: Bureau of Economic
Analysis, US Department of
Commerce
Chart adapted from IDEX
-
-
-
Seasonly adjusted consumption expenditure (SEAC) Index
Year-on-Year change in SEAC for the month
more debt – but the prevailing banking reluctance to
‘come back’ to diamonds is still very visible.
It will take time to earn back the trust and
confidence that has been lost. Maybe this is for
the better!
When coupled with the highly profitable year, this
meant that the balance sheet of the midstream has
again become extremely healthy and the businesses
more bankable. In a manner, this strength allowed
the companies to indulge in the speculative frenzy
on rough prices in the first quarter of 2022.
Rough producers faced their own challenge in
2020, with many having to close their mines and
operations either due to no sales or due to COVID-19
outbreaks. Throughout 2021, most producers sold
all the rough they could produce.
A few of the larger rough producers were able
to even sell down all their excess stocks, which
they had built up over 2018 and 2019. Along with
the sales, profitability also increased significantly
for most producers, as rough prices followed
polished diamond prices.
However, they didn’t see the boom they could
have had.
Overall the rough producers sold about $US15.47
billion of rough or an increase of about 65 per cent
in rough sales over 2020.
The rough market saw Gokhran, the Russian state
treasury, sell about $US230 million of rough from
their stockpile during 2021, which helped cool the
market, especially for the smaller goods.
While a couple of mines in Canada faced their
own issues, Gahcho Kué and Renard both had
production which is skewed to the lower end of
the quality spectrum.
The Renard mine had been struggling to stay
afloat; however, with the increase in prices in the
cheaper quality of goods, these mines and their
mining companies could get a new lease of life, as
the prices for cheaper diamonds are expected to
remain robust.
In a nutshell, the entire pipeline had a dream year,
with great sales growth and fabulous profitability for
most companies across the pipeline. What is more
interesting is examining some of the other factors
that accounted for the industry’s success.
Pandemic a blessing in disguise
While on the one hand, the reluctance of banks to
finance the industry impacted the liquidity situation
(and return on capital employed decreased), the
consumers and downstream in general didn’t have
to extend suppliers’ credit on the same levels as in
previous years.
Governmental COVID-stimulus packages produced
tangible benefits for the jewellery sector.
Rough producers faced their own challenge in
2020, with many having to close their mines
and operations either due to no sales or due
to COVID-19 outbreaks.
As COVID spread globally, governments reacted
by imposing lockdowns and many businesses
struggled to operate in those situations. While
technology-based businesses could implement a
work-from-home policy, service businesses could
not do that and suffered greatly.
To alleviate this issue, governments offered various
stimulus packages to keep businesses afloat and
help them restart after the lockdowns were relaxed.
The US government offered the most generous
stimulus from all governments, and over the course
of two years, it amounted to nearly 25 per cent of the
total GDP of the country. The stimulus was offered
in various tranches and covered various different
payouts and subsidies by the government.
What is equally important from an analysis
perspective is the timing of the stimulus. A
quick summary of the stimulus packages,
which were released by the US government,
is shown in the table.
The dates in the table indicate when the stimulus
was approved. The amounts were actually spent
over a much longer period. The main points are that,
in real terms more than half of the money actually
reached the consumers wallets in 2021.
While many citizens did suffer in 2020 and a
stimulus was necessary, the continued flow of
stimulus in 2021 was the cherry on the cake, leading
to a tremendous boost for the US economy.
This boost in spending was uneven and was not felt
uniformly across all sectors. Certain sectors such
as services, hospitality, and transportation – many of
which could also be termed as essential expenses
for the consumers – faced severe headwinds as the
need for spending on these areas was reduced.
For example, the continued work-from-home
policies for many top paying tech companies,
automatically reduced fuel bills, a need for a vehicle,
need for restaurants and cafes, business travel
expenses, and so on.
The US consumer has not focused on savings
over the past few decades but the reduced need
for spending along with the stimulus meant that
consumers suddenly had extra funds in their
pockets.
Analysis of the data from the Bureau of Economic
Analysis, US Department of Commerce shows
the sectors that were the beneficiaries. Durable
goods, which includes jewellery, seem to be the
largest beneficiaries, as consumers seem to have
channeled their excess disposable income into
purchasing ‘hard assets’ for which they probably
aspired, but did not have the income to acquire.
98 | August 2022

TABLE A: STIMULUS PACKAGES RELEASED BY THE US GOVERNMENT
DURING THE COVID PANDEMIC
Chart adapted from IDEX
Stimulus Package Name
Passed
Date
Amount
($ billion)
Stimulus and Relief Package 1 & 2 Mar 2020 12 b
SRP 3 (CARES Act) and 3.5 Mar/Apr 2020 2,724 b
Lost Wage Assistance Jul 2020 44 b
SRP 4 Dec 2020 900 b
SRP 5 (America Rescue Plan) Mar 2021 1,900 b
Total Approved Stimulus
$5,580 b
Up until the first quarter of 2022, overall Personal Consumption expenditure
had risen by about 18 per cent compared to the first quarter of 2019, while
durable goods were up 43 per cent and jewellery was up by about 70 per cent.
Clearly, the industry was better placed to garner the aspirational
disposable income of consumers. Other US luxury sales also saw similar
increases in the 50 per cent range, but jewellery was clearly one of the
best performing sector.
Beware misleading headlines
There is generally a reference to year-on-year sales for the month in news
reports, and in many cases, these have made the headlines for their doubledigit
numbers. However, when sales have shown a large movement, it is
important to have a view of both the overall value as well as a year-on-year
(YoY) view of the sales.
In the first quarter of 2022 many reports showed a double-digit growth rate
on a YoY basis, and traders might have been misled into believing that the
industry had been growing spectacularly, possibly even fueling some of the
speculation which was seen in the first two months of the year.
Looking at the complete numbers (those provided by the US Bureau of
Economic Analysis are normalised on a month-to-month basis), we can
see that the sales have moved in a band post-June/July of 2021. In fact,
December, which is the peak season for the retail jewellery industry, had the
second-lowest values in the June–December period.
Dig deeper and you’ll see a rapid increase in the January–April period of
2021, probably as consumer confidence increased along with some of the
stimulus checks reaching the consumers.
This means that even when absolute values remain in the same band for
Q1 2022, you will still see high double-digit YoY growth for the month, with
a decreasing pattern.
The absolute numbers tell us that even if sales were to remain at current
levels, you will start seeing low or negative YoY growth from June onwards.
Hence it might be prudent for the industry to temper its expectations for the
full year.
This stimulus money along with the quantitative easing by the central
bank – and low-interest rates – unleashed funds that found their way into
investments in the financial sector, which drove up asset prices across the
board - housing, stock markets, cryptocurrencies, or other assets - which
in turn fed into the demand through the wealth effect.
Credit card borrowing (the costliest debt) also fell significantly from the all-
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Diamond Industry Update | FEATURE
It is just a matter of time before
countries that produce natural
diamonds fully realise the irreversible
damage the legitimisation of LGDs
has caused to the natural diamond
pipeline. In any case, it’s probably too
late for Botswana and Namibia to
rebel against De Beers.
Image: Diavik Mine
time high at the end of 2019 as many paid down
their borrowings.
Time to pay the bills
The 2021 party, however, seems to be ending and it
may be the time to pay the bills.
Most of the stimulus has been paid out and various
moratoriums, which had been introduced in the
US, have lapsed. The stimulus and the resulting
demand had pushed up prices and inflation to
levels not seen by the current generation.
The US Federal Reserve has already started
to react (though it could, arguably, be late) to
the higher inflation through increased interest
rates, and is set to reverse its quantitative easing
measures, albeit gradually. Consumer credit card
debt has been creeping up and might rival the
peak levels by the end of the year.
All this was expected to happen along with
the tightening in the labour markets, called
‘great resignation’ by the media. The rising
rates in the US have another knock-on effect,
that of strengthening the dollar. In normal
circumstances, a strong dollar is a negative
factor for growth in the diamond industry.
The 2022 financial market situation was on the
radar of most financial market observers and is
not a surprise. It was expected that the diamond
industry too would get back to its ’normal’ state of
operations, besieged by the usual problems of low
growth and insufficient profitability.
Even a best-case scenario for the diamond industry
projected growth at a retail level of not more than
1-2 per cent for the year.
Even considering a flat scenario of a 0 per cent
growth implied that the polished sales would drop
by about $US1 billion and the rough demand would
be nearly flat, as the midstream is expected to
stock up again.
Looking at these projections the speculative frenzy
in the markets in the first two months of 2022 was
out of place and expected to correct.
All that was before the conflict in Ukraine started.
Impact of invasion
The Russian invasion of Ukraine and the resultant
actions taken by the Western governments
could totally upend any business projections or
plans which businesses might have budgeted
for, especially because of the way our industry is
placed, because about 26 per cent of the rough
by value, and about 32 per cent by volume, was
supplied by Alrosa, a company majority-owned
by the Russian government.
It is increasingly clear that Russia is waging
attrition warfare, a military strategy of belligerent
attempts to win by wearing down the enemy
to the point of collapse. This may take many
months, if not years – and the hostility might still
expand beyond other borders.
When the war began, the US followed by other
European governments, quickly applied financial
sanctions on the Russian government. They
later included companies like Alrosa, which,
they claimed, were financing the Russian war on
Ukraine.
The first round of US sanctions prevented Alrosa
from doing business in the US, something that
was almost negligible and had almost no impact.
The latter round of sanctions saw Alrosa added
to the Office of Foreign Assets Control Specially-
Designated Nationals list. This sanction is
much more damaging because it means that no
financial flows can pass through the US.
All transactions in the US dollar have to pass
through banks in the US and with this inclusion,
no bank would be willing to process any
payments from customers to Alrosa, thereby
throttling the source of income for the country.
When the sanctions were announced, the
industry adopted a wait-and-watch attitude.
The speculation in the first couple of months had
dulled the mid-stream’s appetite for rough and,
in a way, the forced absence of rough supplies
from Russia was even considered a blessing in
disguise for the industry, which had started to
again pile on the stock and debt.
Companies were hoping for a quick resolution to
the conflict and wishing that things would go back
to normal. However, hope is not a strategy. As the
conflict drags on, the solution seems to be squarely
in the realm of politics.
Unfortunately, the fate of the conflict will seemingly
be determined by people who have very little to
lose, which would mean that a resolution and the
eventual lifting of financial sanctions seem to now
be a distant possibility.
Living with sanctions
The world had been effectively uni-polar – with
only one dominant nation – for more than 30
years. Nations across the world are now aware
of the damages that financial sanctions can
cause and now understand the will of the US
to weaponise them.
As we go forward, the world will start becoming
multi-polar – driven by multiple strong and
competing nations – once again with the trade
of different countries and blocs being primarily
restricted to each bloc separately.
In the past decade, financial sanctions have
increasingly become the US weapon of choice,
given its dominant position in the global financial
system. Raghuram Rajan, a leading economist,
termed financial sanctions as ‘weapons of mass
destruction’ due to their blunt nature in trying to
effect change.
While sanctions might be inhibitors and have a
preventive impact, they have not shown any success
in providing immediate solutions once a conflict has
100 | August 2022

FEATURE | Diamond Industry Update
TACY’S 2020 - 2022
DIAMOND PIPELINE | IN $US BILLION
FEATURE FIRST PUBLISHED
BY IDEX ONLINE
IDEXONLINE.COM
CHART D: PREPARED BY PHAROS BEAM CONSULTING
Direct costs of
rough production
7.3
Direct cost of production
Including stock value depreciation
Rough gem
Lab-grown
Rough production
value
14.07
AUSTRALIA
0.0
ANGOLA
1.7
DRC
0.35
BOTSWANA
4.7
NAMIBIA
0.84 1.42
RUSSIA
2.73
CANADA
1.53
ZIMBABWE
0.43
LESOTHO
0.12
OTHERS
0.25
USA, SINGAPORE,
MALAYSIA,RUSSIA&
OTHERS
2
Mines sales to
industry
15.47
INDEPENDENT
6.68
ALROSA
3.97
DE BEERS
4.82
POLISHED
LAB-GROWN
Net rough used for
local production
15.89
BELGIUM
0.15
ISRAEL
0.41
INDIA
13.2
USA
0.11
BOTSWANA
0.87
CHINA
0.54
RUSSIA
0.23
OTHERS
0.38
Value of polished
production
20.58
BELGIUM
0.19
ISRAEL
0.55
INDIA
17.13
USA
0.14
BOTSWANA
1.06
CHINA
0.69
RUSSIA
0.31
OTHERS
0.51
Polished sales
22.10
Value of recycled
polished
0.23
Value of recycled diamonds
(Consumer sell backs) re-entering pipeline
Retail Diamond
Content
21.89
USA&
CANADA
12.61
EUROPE
& SA
1.69
HK/CHINA
TAIWAN
2.47
JAPAN
0.97
INDIA
1.35
GULF&
TURKEY
1.39
REST OF
WORLD
1.41
Retail of Diamond
Jewellery
85.55
USA&
CANADA
51.23
EUROPE
& SA
5.37
HK/CHINA
TAIWAN
10.68
JAPAN
3.34
INDIA
4.94
GULF&
TURKEY
6.13
REST OF
WORLD
3.86
© 2022 COPYRIGHTS BY TACY LTD. AND
PHAROS BEAM CONSULTING LLP STRICTLY RESERVED.
REPUBLISHED WITH PERMISSION FROM PRANAY NARVEKAR
August 2022 | 101

Diamond Industry Update | FEATURE
De Beers' Lightbox
started. Countries and citizens may go well beyond
their perceived capacities to face sanctions when
they feel that they are being unjustly treated.
Without going into which side is justified in their
view, sanctions can be considered unilateral and
gaining their power from the dollar being the
primary global currency.
The manner in which governments have gone about
applying sanctions also reeks of hypocrisy. Some
countries give waivers to sanctions, which are
inconvenient, or can cause significant upheaval.
For example, waivers have been given on
products such as oil, natural gas, uranium and
titanium where Russia is a major supplier for
the nations applying the sanctions. Developing
nations have started complaining about the
impact of the sanctions on countries that are,
effectively, innocent bystanders.
Another notable aspect of this Russia-Ukraine
war was how quickly businesses, including
jewellery retailers and brands, decided that they
would not by Russian-origin diamonds. Many
have a constant customer interface and probably
reacted in this fashion due to their individual
political, social or moral compulsions.
These ‘business sanctions’ have further affected
the pitch for the industry. Alrosa, in fact, had been at
the forefront of promoting industry self-regulation
initiatives such as the Responsible Jewellery
Council, and the updated World Diamond Council
System of Warranties. It is ironic that now these
very same chain-of-warranty mechanisms are
being used by the industry to exclude Alrosa.
In future, other countries and companies might not
be willing to join such cooperative mechanisms,
as no country or company can confidently say that
it could not be next to face sanctions. Irrespective
of how long the sanctions last, it is clear that the
industry will find it extremely difficult to come to a
common ground, or agree on, any self-regulation
mechanism in the future.
New environment
It is clear that for the diamond industry, sanctions
are here to stay and the industry needs to be ready
for the long haul, and choose which side to take.
The sanctions will probably continue even after the
conflict stops.
One of the primary strengths of the industry is its
resilience and the adaptability of its companies,
as it has proven again and again over the decades.
Reports indicate that Russian rough has already
started finding its way to the market.
Without going into which side is justified
in their view, sanctions can be considered
unilateral and gaining their power from the
dollar being the primary global currency.
In the event that the industry transitions into a
multi-polar environment, companies clearly need
to take sides, having to scale down their business in
order for them to continue being compliant.
With the current regulations in place, the industry
is likely to be split down the middle, with some
companies abiding by the sanctions and other
companies dealing in Russian diamonds, but not
supplying them to the developed world.
We are confident even in a multi-polar world that
the industry will continue to adapt and thrive as it
has done in the past. Unfortunately sanctions tend
to provide the greatest reward to companies that
dodge sanctions, at the cost of the responsible
companies leading to a fall in the industry
compliance standards.
Matter of cost
The US has been trying for more than a decade
to get the diamond industry to segregate its
inventories. This was initially proposed for
diamonds from Zimbabwe. Various chain-ofcustody
initiatives were proposed by the US
government agencies to prevent Zimbabwean
diamonds being sold in the US. These efforts met
with at best partial success. Some diamonds from
Zimbabwe were easily identifiable and the volume
of supply from the country was limited.
The authors wrote extensively at that point about
the segregation of diamonds. The views expressed
remain the same even after 10 years, namely:
• Segregation of larger stones (>0.20 carats),
which are generally polished individually, can be
done managed by the industry.
• The challenge is in the smaller diamonds,
which are traded and sold in parcels with parcels
being mixed multiple times.
• It is still feasible to segregate diamonds,
however there is a significant cost, which
would need to be borne by the midstream for
maintaining the diamonds separately.
• The authors questioned the ability of the
midstream to bear those costs, which were
more than $US1 billion on an annual basis.
Costs had to be passed on to the consumer or
borne by the mines.
• It could mean an increase in polished prices
of more than 10 per cent in the concerned
category of goods.
Our observations in the matter still hold. However
with the current emotional support for Ukraine
and the general inflationary environment in many
developed nations, it might be easier to pass on
these costs to the consumers. It is to be seen
whether the resolve will remain once the consumer
attention moves on to other issues.
Availability
Aside from the cost perspective, the removal of
supplies from Alrosa could cause severe availability
problems for certain kinds of companies. As
mentioned, Alrosa diamonds represent about 26 per
cent of diamonds by value and about 32 per cent by
volume. Clearly, their diamonds are smaller with a
102 | August 2022

ETHICALLY MINED
LGD producers also
have not scaled up their
capacities to a stage
where they can replace
Alrosa production.”
UNIQUE
BE AUTIFULLY FL AWED
NATURAL DIAMONDS
lower average cost as compared to the market.
The impact of the Alrosa sanctions across different categories of diamonds
is different, given the production mix of their mines.
Polished which is produced from Alrosa rough, has a much higher share in
diamond categories that are used by luxury, lifestyle, or high-fashion brands.
In many of these categories, Alrosa accounts for over 50 per cent of the
polished diamonds supplied.
Companies in these sectors could face serious issues in obtaining supplies,
especially in the latter half of 2022. It is indeed ironic, that many of these
luxury brands were some of the first to stop using Russian-origin diamonds.
Crossing the Rubicon
Luxury brands take great care in cultivating their image over decades
and most big brands have stayed away from using lab-grown diamonds
in their jewellery or watches. Going forward, with the Alrosa supplies not
useable, they could face a supply shock, as there might not be enough
diamonds to meet their requirements.
The question remains whether they will cross the Rubicon and decide
to use LGD in their luxury products and whether their consumers will
accept those products and the ‘advertising spin’ their marketing teams
will give for that decision.
The only segment that would be laughing all the way to the bank would be
the LGD industry.
Companies have had a phenomenal year, and supply shortages can lead to
new business opportunities for LGD jewellery companies, as retailers try to
fill their shelves for the upcoming Christmas and holiday season.
LGD producers also have not scaled up their capacities to a stage where
they can replace Alrosa production. For a change, they might see price
increases in the second half of 2022.
More than the incremental business, the shortages will open new
opportunities for LGD suppliers, as retailers who would have otherwise not
considered selling LGD jewellery are forced to go ahead and offer the product.
No wonder the current market conditions might seem like heaven for the LGD
industry, while diamond-producing countries continue to lick their wounds.
Diamonds from $10/ct
Full Range on display at STAND A20
opposite the Nationwide lounge at the
International Jewellery Fair
ICC Sydney, Darling Harbour
August 27-29
CHAIM EVEN-ZOHAR is a retired consultant to the diamond industry
and the former editor of the Israel Diamond Exchange’s Diamond
Intelligence Briefs. PRANAY NARVEKAR is director of Pharos Beam
Consulting, a firm providing analysis and insights into the supply,
financing, and structure of the diamond industry.

BUSINESS
Strategy
Quick fix training tips for
outstanding customer care
When it comes to retail, fewer things matter more than providing quality customer service.
KIZER & BENDER offer practical ways to improve the impression left upon customers.
While it’s true that we live in an everchanging
world, in the realm of retail,
one truth is standing the test of time –
the importance of high-quality customer
service.
Relationships with valuable customers can
be broken in an instant due to poor service.
According to a recent study by Redpoint
Global, a customer engagement and data
management company, 39 per cent of
customers surveyed said that will not do
business with a business that fails to offer
some kind of personalised experience.
Furthermore, business consultants
Verint Systems recently released a report
revealing that 64 per cent of customers
surveys have switched companies at least
once due to poor customer service.
Retailers should take note of the
visceral reaction customers have to
poor customer service, and conversely,
reflect on the lasting impact positive
interactions can have on the way a
customer views a business.
Over the years we’ve written extensively
about customer service, or more to the
point, the lack of it. Bad service is rampant
in every type of retail store and we've
experienced it ourselves.
For example, a salesperson at a bridal
store who couldn’t be bothered to help
us find the perfect gown for an upcoming
wedding. A waitress, who took one meal to
our table, then waited a further 25 minutes
to deliver the second.
Then there was the staff member at the
arts and crafts store who couldn’t tell us
about the products on offer because “she’s
not a crafter.” We could go on forever, and
we’re sure you could too.
Too many customers expect to receive poor
service from staff members who are not
equipped to do their jobs.
If you’re honest, you might even be willing
to admit that bad service occasionally
happens in your store as well. And when it
does, it’s a big deal. There’s an older retail
study to consider:
• 15 per cent of customers will refuse to
shop at a store again due to poor pricing.
• 15 per cent of customers will refuse
to shop at a store again due to poor
product selection
• 70 per cent of customers will refuse to
shop at a store again due to a negative
interaction with the staff.
Let that sink in for a moment! The good
news is that the 70 per cent statistic is
within your control.
How important is training in your store? You
have a big opportunity right in front of you.
Customers who visit your store will come
with high hopes and lists in hand. The
way they are treated while in the store
determines whether they return, and
perhaps even more importantly, what they
tell others about what they think about your
store.
Here’s one last statistic to consider –
according to research performed by
business consultants thinkJar, just one
It’s dangerous
to assume that
every staff
member knows
every product
inside and out,
so consider
hosting
monthly
meetings that
focus on new
product lines.
in 26 customers will report a negative
experience to the business itself.
That’s just 13 per cent of customers! This
means that if your staff negatively impact
the reputation of your store, the chances
are you may not even hear about it. The
reputation of your store will be damaged,
and you won’t have the chance to rectify
the issue.
Today is the perfect time to get your staff
focused and back on track!
Back to basics
It’s important each member of staff has
a thorough understanding of the basic
principles of customer service.
There should be no uncertainty over
exactly how you expect customers to be
greeted, and how returns, special orders
and requests are to be handled.
Try to remember that not everyone shares
the same perspective on social graces
or has benefited from etiquette training.
What might seem like common sense to
you, with the benefit of experience, may not
have occurred to a younger employee.
Share with your staff the important impact
quality customer service has on your
business and the role they must play within
its implementation.
Prepare new hires for success
New hires need to feel comfortable and
productive from their very first day on
the job.
A New Associate Orientation Program
will ensure that they do. All employees
104 | August 2022

Business Strategy
need to feel a sense of victory and
accomplishment, so assign each new hire
a simple task to complete on their first day
of work. Remember to meet for a quick
discussion at the end of the shift to discuss
how the day went.
One effective approach is to pair
each new employee with a veteran of
the business who can mentor them
throughout their first weeks on the job.
Most employees focus on making a good
first impression and it’s a lot easier to
ask an assigned mentor a question than
it is to ask the boss.
Hands-on training
Make product knowledge an important
part of your training program.
It’s dangerous to assume that every staff
member knows every product inside and
out, so consider hosting monthly meetings
that focus on new product lines. Don’t
forget about new applications for old
favorites and covering the basics.
To make it more straightforward, select
one particular category per meeting
and discuss what’s important about the
product, its application, and technique.
Make these meetings hands-on training
sessions; it’s much easier to sell a product
once you’ve handled it.
When the store is quiet you can conduct
your training right on the sales floor.
It’s easy to point out what’s important
about a product category when it’s right
in front of you. You’re sure to attract the
attention of customers, so let them in
the fun. They might even have a trick or
two to share.
Daily 10
Gather your staff on the sales floor each
morning, or at least three times per week,
for a short meeting before you open for
business.
Talk for 10 minutes about products,
techniques, applications, customer
requests, policies, trade shows, industry
news, associate experiences, and
upcoming events – whatever makes sense
that particular morning.
Offer your staff the opportunity to share
any information they feel is important
too, as their perspective can help you
gain stronger insight into the views of
your customers.
Clear and consistent communication
keeps everyone familiar and in the loop,
as well as on their toes.
Give me 5!
Here’s another daily exercise that will
encourage increased sales performance.
At a staff meeting, hold up a product and
ask the sales staff to list any items that
could be added to the purchase to increase
the value of the sale.
Add-on selling is good for business and it’s
good for customers. You’ll up your average
sale and customers won’t have to return
to the store to pick up the additional items
they need but forgot to buy.
On-going training programs
Devote one store meeting a month to staff
training.
Between these meetings, provide access
to books, websites, and videos for staff
members can study on their own. We know
retailers who allow their top performers to
attend classes offered at trade shows.
Others have set up in-store ‘universities’
where employees are rewarded with
raises, and even promotions, each time
they earn a new ‘degree’ as a part of the
training.
Clear expectations
Set aside a few minutes each morning
to complete an opening checklist that
MORNING
MEETING
DISCUSSION
Products
Ensure
employees are
up to date on all
that’s offered.
Technique
Remind
employees of
expectations
with customer
service.
News
Share any
relevant industry
developments or
business updates.
Calendar
Remind
employees of
any significant
upcoming events.
Feedback
Offer your
employees the
chance to share
any insight they
feel is important.
outlines everything planned for the store
across the coming day.
The checklist should include the daily
overall store sales goal, departmental
goals, item of the day, in-store specials,
classes, and upcoming sales, events, and
promotions.
In short, anything and everything staff
members need to know about the store.
Managers can also prepare a closing
checklist of tasks that need to be
completed before the store re-opens
the following day. The internet has many
templates available if you don’t have time
to design your own.
Business cards
Every member of staff – full and part-time
– should have business cards that are
personalised with name and title.
You can buy hundreds of business cards
at most instant printers at very little cost.
salespeople, in particular, are worth this
small investment.
Remember that each card that’s
distributed as a mini-advertisement for
your store.
Let your stars shine!
Why do all the training yourself when
your experienced members of staff
can help out?
Many stores have employees who excel
in differing areas. Allow experienced
employees to do the hands-on training
for that category or product line.
You can incorporate these experienced
employees into the approaches listed
above too - don’t be afraid to delegate!
RICH KIZER and GEORGANNE
BENDER are retail strategists,
authors and consultants. Visit:
kizerandbender.com
August 2022 | 105

BUSINESS
Selling
Repairing our sales win rates
Quality over quantity is one of the most well-known pieces of business wisdom, however how many salespeople ever stop
and think about what it really means? DAVID BROCK explores the simple math behind an important business philosophy.
I’ve long discussed the importance of
win/loss analysis in improving business
performance, and to this day, I continue
to be amazed at how little we understand
about what causes us to win and lose in the
world of business.
It’s important to understand why we win,
why we lose, and how we maximise our
performance and productivity.
Let’s explore a straightforward example.
Assume three members of staff have the
same quota of $500,000 in annual sales
and each has the same average deal/sale
size of $10,000.
Let’s also assume that they require the
same number of opportunities to find a
qualified sale. Let’s assume 10 prospecting
efforts produce one qualified sale.
With a 20 per cent win rate, it takes
Salesperson A 2,500 prospective
opportunities to fulfill the quota.
Salesperson B, with a win rate of 30
per cent, can achieve that task in 1,670
prospective opportunities. Our strongest
performing hypothetical staff member,
Salesperson C, can achieve the quota with
1,000 prospective opportunities with a win
rate of 50 per cent.
This is the kind of maths all retailers
should be performing, however in reality,
I find very few sales teams, or managers,
who have spent time thinking about what
this means.
Ask the big questions
Sadly, the rare few managers and sales
staff who do track this kind of data tend to
view it as a kind of ‘law of nature’ and not
something that can be improved.
Across the many businesses I’ve
encountered, too few managers and sales
staff are willing to challenge themselves
and ask the important questions about
their practice.
How do we increase our win rates? How do
we increase our average deal/sale sizes?
How do we compress the sales cycle?
How do we create greater yield from our
Those with poorer win rates fall into the trap of chasing so many potential
sales they fail to invest the time needed to win at the macro level.
prospecting efforts? How do we effectively
improve the performance of each person
on the team?
When these kinds of questions are
proposed, the answer is always the same:
“Just do more!”
You may read this and find yourself
thinking, “Well Dave, you are just showing
that maths works, what’s your point?”
Once we start looking at these big
questions with the above example in mind,
we must then ask what it is that causes
such a difference in the performance of
one salesperson to another.
What are the salespeople with 50 per cent
win rates doing differently than those
with few wins? How can we get others
to emulate the achievements of our elite
performers? These are the right questions.
Quality over quantity
Our simple example above treats
everything other than win rates as being
relatively equal, and we know that reality is
never that straightforward.
Sales staff with higher win rates tend to
have higher average deal/sales values.
The elite performers also tend to have
higher yields with their prospecting
efforts. It’s natural that more successful
salespeople are more focused on the
right prospects and will rarely be caught
wasting time on low-quality opportunities.
It’s natural that
more successful
salespeople are
more focused
on the right
prospects and
will rarely
be caught
wasting time
on low-quality
opportunities.
Because sales staff with higher win rates
need to chase fewer opportunities, they
can invest more time in the opportunities
they select. This practice dramatically
improves customer experience and by
extension, the propensity to purchase.
Comparatively, those with poorer win
rates fall into the trap of chasing so many
potential sales they fail to invest the time
needed to win at the macro level.
This is what I like to call a ‘performance
death spiral’ because by reducing the
time and energy spent on each individual
prospective customer, failing salespeople
chase much-needed wins by contacting
or dealing with more and more prospects,
falling into a vicious cycle of failure.
Over time, I’ve analysed businesses and
seen these kinds of trends repeating
themselves. Today, it’s all too common to
see salespeople settling for single-digit
sales performances.
The far too common focus on volume
of contacts with prospective clients has
had a horrible impact on performance
on average. Many promote reducing the
amount of time spent on each call and
increasing the number of calls made or
increasing the number of emails sent out.
This is rarely the right message!
Focus on what works
The key to driving performance for
salespeople is rarely increasing overall
activity. Improvement comes from
producing more and more from each
individual sales opportunity.
Instead of doing more of what doesn’t
work, faster, we must focus on what
works. Discovering what it is that produces
success within these interactions and
learning to execute more effectively.
DAVID BROCK is the founder of
Partners in Excellence, a consulting
and business services company. Brock
has a background in sales, marketing
and management. Learn more:
partnersinexcellenceblog.com
106 | August 2022

BUSINESS
Management
Five human behaviour myths busted
If behavioural science is so good, why aren’t more people using it?
BRI WILLIAMS examines a few common myths about consumer decision-making.
There’s something that has always
confounded me. When people read or hear
about behavioural economics, and more
broadly, behavioural science, they typically
get excited.
Suddenly the strange things people do, and
the strange decisions we make, start to
make sense.
Why do I over pack for my holiday?
Underestimate the time a project will take?
Buy stuff on sale, just because it’s on sale?
The issue is we have the tendency to
quickly forget these insights. Sure, they
might return as a fun story or anecdote to
share at the next dinner party, but all-toooften
we completely miss the opportunity
to apply these insights to our professional
work.
Bottom line? The science of behavioural
influence has failed to influence behaviour!
Let’s examine several beliefs about
behaviour that have been busted by
science, however, remain stubbornly
ingrained in the public’s consciousness.
Money motivates us
After a point at which our basic needs are
met, money doesn’t motivate performance.
In fact, in cognitively challenging
tasks, monetary incentives can impair
performance.
This should be widely understood by now,
however, what is the thing that comes
to mind immediately when we’re talking
about motivating people? Money! When
we ask the people we’re trying to motivate,
such as our sales staff, what do they think
would work best? Money!
Money is alluring for two reasons. It is
unequivocal. You know its value. A dollar
is a dollar. And secondly money is flexible.
You get to choose what you do with it.
But money is also impersonal and
transactional. It makes us more selfish,
creates a sense of entitlement and dilutes
reciprocity. When it comes to motivating
staff, we should look for other avenues
beyond simply a bigger payday.
Remember that people think based on emotions and feelings just as
often as they do cold, hard logic.
Know better do better
Education and information campaigns
are great. Great for advertising agencies,
that is, because they land big contracts to
create ads and collateral.
However, do information campaigns
change behaviour? Rarely!
Information doesn’t mean ‘info-motion’.
Knowing doesn’t mean doing. We know we
should save for retirement, but in Australia
we have compulsory superannuation
because individuals can’t be trusted to do it
themselves!
It’s hard to argue with providing people
information, of course. It’s safe. But it also
means the onus is shifted to the recipient
to engage with, understand and act on
what they learn.
Specify
The more specific your goal the better,
right? How else will you know what to
do? The problem with making your goals
precise is it makes them boring.
To paraphrase the words of behavioural
scientist and author Ayelet Fishbach, it
turns it into a chore, and we don’t like
chores.
You are better making goals somewhat
abstract so you are reminded of the
purpose of your goal. Focusing on the
goal of ‘looking after my fitness’ is better
than ‘going to the gym five times per
week’ because it leaves the door for more
The more
specific your
goal, the better,
right? How else
will you know
what to do? The
problem with
making your
goals concrete
is it makes them
boring.
creative ways of achieving the goal.
People tend to think getting into the nittygritty
is the best approach. SMART goals
(specific, measurable, achievable, relevant
and time-bound), for example, that value
specificity and getting down to the tiny
details.
In a retail environment this seems to me to
be more about control and micromanaging
than it is about getting the best results
from your staff.
We are rational
The biggest myth of all is that we are
rational; that customers always make
decisions on the basis of facts and logic.
It’s a nice thought; however, it’s not true.
We have a habit of explaining most of our
day away. Logic is retrospective however;
we join the dots and explain our behaviour
in hindsight. Logic is also hypothetical and
we believe we’ll act in a particular way in
a future circumstance, even though we
probably won’t.
The problem, when it comes to influencing
people in an attempt to adjust their
behaviour, is we think logic will work as
a superior vehicle to play on feelings and
associations.
Think about it like this – and I’m doing it
right now – my article is trying to convince
you of the merit of behavioural science by
laying out my argument piece-by-piece. It’s
human nature, but it’s not always effective.
In order to get the best out of your staff,
don’t be afraid to look for ways beyond just
money to promote improved performance.
Remember that people think based on
emotions and feelings just as often as they
do cold, hard logic. Find ways to make
goals achievable in a creative sense – avoid
becoming stagnant and trapped by detail.
BRI WILLIAMS is founder of People
Patterns, a specialist consultancy
that applies behavioural science to
everyday business issues.
Visit: www.briwilliams.com
August 2022 | 107

BUSINESS
Marketing & PR
To TikTok or not to TikTok?
There’s a shiny new tool in the social media marketing world and it’s called TikTok.
SHANE O’NEILL weighs up the pros and cons of the application for retailers.
The latest social media ‘buzz’ for business
is TikTok and the advantages it can offer
businesses. You could add it to your
marketing strategy, but should you?
Sure, TikTok is fun; however, is it the
right audience at the right time for a
retail jeweller?
Before you jump onto a new social media
platform, it’s wise to define your goals in
using the channel.
You can’t do everything and do it well,
and if you aren’t doing something well,
what exactly are you doing?
Numbers
As a small business you can almost
justify joining just about any social media
channel. Depending on your strategy and
staff skills, it’s possible to be successful
on various platforms.
However, that’s not typical for most
retailers. Unless you have endless
marketing dollars, there are usually more
relevant channels than the newest social
channel du jour.
When Google+ was launched in 2011, many
thought it would be the Facebook killer.
Instead, it never caught on. Before you start
to dilute your marketing efforts with yet
another social media application, you must
complete your due diligence to determine if
it’s the right fit.
Consider using this simple formula to help
rationalise adding or changing our social
media. Time + strategy + audience = effort
and money.
Ask yourself how much time you will
need to dedicate to maintaining the social
channel. You must understand how you’ll
use the channel. Make sure the user base
is your target customer and it has large
enough base on a local level.
For example, how much time do you need
to invest in creating TikTok videos? Video is
certainly more time-consuming than static
images, but is also far more engaging. You
can and should create video content for any
channel you use.
Make sure the user base is your target customer and it has large enough
base on a local level.
So, the questions are what type of videos
should you create that you can use across
other channels, and do you have the time to
add TikTok videos?
Strategy
Before you add more social media
channels – and therefore work – define
your strategic objective. For the sake of
discussion, we’ll assume the strategic
use of TikTok would be to target the bridal
customer, based on the profile of the
average user.
If that’s the case, are you already targeting
bridal on social media? Most social media
users use multiple channels and TikTok
isn’t the primary channel for most, so are
you planning to make TikTok your primary
bridal channel?
If so, is it better than what you are
currently using? For example, Instagram
is a great channel to target the bridal
audience as 31.5 per cent of US users
are between the ages of 25–34. That’s
the prime bridal demographic. In fact,
54.4 per cent of US Instagram users are
between the ages of 18-34.
More than 40 per cent of Australians
reportedly have an Instagram account
as of 2021.
Oh, by the way, Instagram has also
launched its own take on the TikTok format,
called Reels, which may very well affect
TikTok’s growth and user adaptation.
The bottom line
is it’s easy to
get caught up
in the newest
social trends.
However, newer
social channels
often don’t stack
up to other more
well-established
social channels,
for a litany of
reasons that
you need to
consider before
going down the
rabbit hole.
Audience
So, who’s using TikTok the most?
Around 50-60 per cent of US users are
between the ages of 16-24. That’s a large
number of users outside of the average age
of a typical bride at 28. More than seven
million Australians over the age of 18 use
the application according to a recent report,
the majority of which are female.
Moreover, some are still in high school
and the rest probably aren’t prime for
bridal marketing efforts. Another reason
business gurus are touting TikTok is that it
gives you the chance to get in front of Gen Z.
I get it, but why?
They won’t start becoming prime bridal
customers for at least another four or
five years. With the pace of technology
evolution, I’ll bet we’ve all moved on to
something else.
Effort and money
So, now comes the $64,000 question; is
it worth the additional time and effort to
create and develop a TikTok presence,
and do you have sufficient marketing
dollars to allocate?
Would you take dollars away from more
strategically appropriate channels, such as
Instagram, to do so? From my perspective,
the answer should be no. Will TikTok grow
into a marketing juggernaut?
Maybe, but it’s not there yet as there are
simply too many superior options for the
majority of jewellers and their marketing
dollars.
The bottom line is it’s easy to get caught
up in social trends. However, newer social
channels often don’t stack up to wellestablished
social channels, for a litany of
reasons that you need to consider before
going down the rabbit hole.
SHANE O'NEILL is vice president of
Fruchtman Marketing, a consultancy
company specialising in jewellery .
Learn More: fructman.com
108 | August 2022

BUSINESS
Logged On
Adapt or die!
Stay on top of the social media game
The social media landscape is always changing. MANDY EDWARDS says your
marketing strategy must adapt to reflect these changes to avoid failure.
The world of social media marketing
can change at a rapid and, sometimes,
frightening pace.
A website that once guaranteed a boost in
sales for a retailer can become obsolete
overnight. Proven methods of reaching the
right audience can become unpopular and
vanish in what feels like the blink of an eye.
The way your business posts, what your
business posts, and who your business
targets – it’s all liable to change. If you’re
not adapting how your business uses
social media to market your products to
customers, you’re going to fail.
For example, within a 12-month period
around 2018, the following happened
– all more or less at once. Algorithm
changes were implemented by search
engines, advertising metrics were
adjusted, Facebook use began to notably
decline, Instagram use by consumer
audiences surged, and Twitter doubled
the character count.
Those were just the notable changes. It’s
likely just the tip of the iceberg! In the
early days of social media marketing, the
system was relatively straightforward
- a business would run an account or
page, depending on the website, and post
content for its subscribers.
The content would reach the audience
unchanged via a feed. It reminds me of
the movie Field of Dreams, where the
protagonist is told “if you build it, he will
come!” The theory was the same. You had
access to your subscribers and were free
to push them in the direction of your digital
store by whatever method you chose.
There was no algorithm dictating who
saw what – how times have changed!
Fast forward to today and the landscape
is vastly different for businesses. There
is a science and psychology behind
social media marketing – and it’s
changing all the time.
Audience
There’s one thing that has changed very
Put yourself in the shoes of your followers and think closely about
your content.
little – the audience. The sensibilities of
the average customer haven’t changed
too much and it’s important we remember
those fundamentals.
Customers don’t want to see sales
pitches. When it comes to digital content,
customers want to be given material
that matters to them. Customers aren’t
interested in fluff – the stupid gimmicky
videos and jokes that make you want to gag.
Customers want relevant content with
substance. As a retailer, we must avoid
wasting the time of a customer by
posting meaningless “share this to win a
$25 gift card!” posts. Those posts clutter
the feed of not just our subscribers,
likely existing customers, but also their
friends and family – who may be our
customers of tomorrow.
Review your content
Retail businesses tend to spread
themselves out over many social media
networks, attempting to make the most of
platforms such as Facebook, Instagram,
Twitter, and LinkedIn.
Put yourself in the shoes of your followers
and think closely about your content. Are
you posting something that would make
you stop and read? Or does it look like
the most of the content online, worthy of
nothing more than scrolling by?
Think about how you compare to your
competitors. What does your content
Put yourself
in the shoes of
your followers
and think
closely about
your content.
Are you posting
something that
would make you
stop and read?
have in common with the material of your
closest rival? How does it differ? These are
the questions you should be asking before
posting – and not after!
Stay flexible
Digital marketing is going through an
evolution right now – in fact, it always is.
When social media was popularised
marketers quickly learned to exploit it.
Many business owners became an ‘expert’
on using it as a marketing tool without
formal training. The tide turned and now
on websites such as Facebook, that kind of
content is penalised by algorithms.
To avoid getting swept up in the same
wave, focus on the basics of marketing.
Aim on relationship-building with your
audience and remember that it’s not a
one-way street.
As a retailer, you have to be active and
responsive to everyone. Customers
have said for a long time that they want
meaningful, accurate, authentic, and
informative content.
Adapt your content as such. Get rid of
the fluff! Post content that will draw an
audience in, and make them act. Contact
potential customers directly and build a
relationship through social media. Form
your own community.
Customers always pursue more
personalised experiences, especially in
retail. Your business should use social
media to tailor the experience they have
with you. Consider posting about your
interactions with customers – feature your
customers with your products! Find a way
to connect the two.
Loyalty is key to long-term survival in
retail. This applies to the jewellery industry
more than most! The strongest will survive
and those who adapt will outlive the rest.
MANDY EDWARDS is founder of ME
Marketing Services, a social media
and management consultancy. Visit:
memarketingservices.com
August 2022 | 109

My Bench
Yuki Mathwin
Abrecht Bird Jewellers. Melbourne VIC
Age 45 • Years in Trade 8 • Training Four-year apprenticeship, certificate IV.
SIGNATURE PIECE
SATURN’S STORM
A massive hexagonal-shaped storm was discovered on
Saturn’s north pole in the 1980s. The raging hurricane
is 32,000 kilometres in diameter and over the years has
been observed to have changed from a blue colour to a
more golden colour. It has six distinct sides, larger than
the size of the earth, which form the shape of a hexagon.
4FAVOURITE GEMSTONE That’s a difficult question.
At the moment it’s opal. I’m totally mesmerised by all
the colours.
4FAVOURITE METAL 18-carat yellow gold.
4FAVOURITE TOOL Hammer, there’s something
about hammering. Maybe it’s the noise, or the power
to manipulate metal, that I really enjoy.
4BEST NEW TOOL DISCOVERY I love our laser welder,
there is nothing it cannot do!
4BEST PART OF THE JOB Being able to talk about
jewellery all day.
4WORST PART OF THE JOB Two things. Waking up in
the middle of the night, thinking about a job. Constantly
dropping small diamonds. They’re both pretty bad!
4BEST TIP FROM A JEWELLER You never stop learning.
4BEST TIP TO A JEWELLER Never give up.
4BIGGEST HEALTH CONCERN ON THE BENCH
My mental health, because I always feel inspired to
make myself jewellery, but don’t have the time!
4LOVE JEWELLERY BECAUSE Jewellery is a form of
expression and can hold a lot of meaning. I love the
history of jewellery too, a piece can tell many stories.
110 | August 2022

OPINION
Soapbox
Chasing the pink paper
Provenance has never been more important for collectors of rare diamonds and gemstones.
WILLIAM GANT unveils the ‘mysteries’ of the fancy colour diamond market.
We all know the value of a diamond
varies considerably according to its
qualities.
And while the 4Cs – colour, clarity, cut,
carat – are the most familiar to the typical
diamond consumer, when it comes to colour
stones, two of the four can become more
confusing.
That is, providing a certificate from a
reputable diamond laboratory declaring a
white diamond’s qualities leads to consumer
confidence that they have purchased
precisely what they had intended to buy –
particularly since they are unlikely to be able
to grade the stones themselves.
However, when fancy colour diamonds come
into play, the importance of certificates takes
on a whole new dimension.
For example, the value difference between
a Fancy and Fancy Light saturation is
enormous; the presence of secondary and
even tertiary colours can send the value
diving or soaring, depending on the hue;
and the overall brightness and tone can
significantly affect the value.
When it comes to important fancy-coloured
diamonds, it goes without saying that
certificates are sine qua non – essential –
when making a purchase.
And then we have the question of
provenance. From where did the
diamond originate?
Provenance has become a crucial factor
for collectors of the legendary Argyle
pink and violet diamonds. Such incredibly
rare stones from the now-closed Argyle
diamond mine in the remote Kimberley
region of Western Australia are as distinct
as they are beautiful.
The pinks possess a warm, feminine tone
like the shades of cherry blossoms, distinct
from the colder tones or orangey hues from
deposits elsewhere.
The violets redefined how the laboratories
classified this colour category; they are a
standout among fancy coloured diamonds
not only for belonging in the highest end
of the frequency band of colour, but also
because of their unique origin of colour.
That said, not many people are aware that
pink diamonds have also been mined in
South Africa, Canada, Russia and Brazil.
However most consumers want an Argyle
pink, and they want to be sure they get what
they paid for.
So, if 90 per cent of the world’s pink
diamonds have been discovered in Western
Australia, it’s important that the other
stones are not passed off as ‘Argyle pinks’.
Unfortunately certificates from independent
labs typically do not state the origin of the
stone. It comes as no surprise then that
many collectors of Argyle pinks and violets
will demand certificates issued by the mine
itself, to prove beyond doubt that the stones
originated from the Argyle deposit.
However, Argyle-certified stones are
becoming scarcer by the day with the mine
no longer in production. Demand continues
to be intense. The value of pinks and violets
have grown; with limited supply and high
demand, it is a simple economic reality.
Importance of origin
What may not be well-appreciated is that
Argyle certificates – linked to the stones
by laser inscription – were only relatively
recently introduced in the mine’s life cycle.
The issue of certificates for stones weighing
0.20 carats and above only commenced
in 2005; it was over a decade later when
smaller stones such as 10-pointers began to
be supplied with certificates.
This means that the vast majority of pink
and violet diamonds from the Argyle
deposit – including from the peak of the
mine’s production around the turn of the
millennium, when Argyle produced fully
a third of the world’s diamonds – are not
certified with inscriptions to link them.
The consequence of this is that collectors
who focus only on Argyle-certificated pink
and violet diamonds may miss out on the
It comes as no
surprise then
that many
collectors of
Argyle pinks
and violets
will demand
certificates
issued by the
mine itself, to
prove beyond
doubt that
the stones
originated
from the
Argyle deposit.
opportunity to acquire these beautiful
Australian treasures. Not to mention paying
a significant premium for that ‘paper’.
Fortunately, laboratory analyses have
become increasingly sophisticated, enough
to be able to verify the origin of a diamond in
some instances.
Origin certificates are sometimes possible
because deposits can have certain
characteristics from atomic impurities
and age and temperature conditions – a
geological fingerprint, if you will – that
detailed optical and spectroscopic analyses
can reveal to show whether a stone had
originated from that deposit. This is
particularly important since tracking a
diamond from its rough state to polished is
not usually possible with ‘historical’ stones.
The advantage of stones originating from a
once-giant deposit like Argyle is that there
are numerous data points to support the
analyses.
Just as the art world has specialised
experts who can thoroughly analyse and
certify whether a particular oil painting is
an original, there are specialised diamond
laboratories that can thoroughly analyse
and certify whether a stone had originated
from the Argyle deposit.
Such detailed origin certificates are gaining
popularity, particularly when presented
together with certificates confirming the
stones’ “usual” characteristics: size, shape
and colour.
Therefore, if you seek to acquire a pink or
violet diamond from the Argyle deposit,
your options will become far greater – and
perhaps more affordable – if you consider
origin-certified stones in addition to those
bearing the miner’s certificates in your
search.
Name: William Gant
Business: LJ West Diamonds Australia
Position: Managing director
Location: Perth, WA
Years in the industry: 13
C
M
Y
CM
MY
CY
CMY
K
112 | August 2022

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