Jeweller - August 2022

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AUGUST <strong>2022</strong><br />

Unlocking Profit<br />



Show & Tell<br />



Changing Diamonds<br />





Sapphire Dreams celebrates the natural wonders Australia has to<br />

offer, in the form of unique, vibrant Sapphires. Expertly cut and<br />

crafted, every stone has passed through the hands of our skilful<br />

gem cutters. Mined on Australia’s east coast, Sapphire Dreams<br />

stones are sustainably sourced and crafted into immaculate,<br />

luxurious jewellery pieces.<br />

Our Australian sapphire jewellery is available in 9ct or 18ct White,<br />

Rose or Yellow Gold, with many designs enhanced by sparkling,<br />

elegant white diamonds.<br />

SapphireDreams.com.au<br />

Become a stockist today<br />

02 9290 2199

Exquisite Argyle pink diamonds, exceptional<br />

designs by Pink Kimberley<br />

Become a stockist today<br />

02 9290 2199<br />


Find comfortable glamour in Blush Pink diamonds, elegant<br />

designs, showcasing a beautiful glimpse of Australian history.<br />

Become a stockist today 02 9290 2199

Solid Gold Collection<br />

Become a stockist today<br />

02 9290 2199<br />

Established for over five decades, Classique is renowned for high quality,<br />

elegant and ageless timepieces. Classique’s Solid Gold range features wrist<br />

and pocket watches, with the option for a diamond bezel. Every piece is<br />

engineered with Swiss Quartz movement, for the ultimate luxury. Find stylish,<br />

modern, classic, and timeless pieces at Classique.<br />


(02) 9417 0177 / dgau.com.au<br />

baume-et-mercier.com<br />

Riviera Automatic, 42mm

Helping you shine<br />

yesterday, today<br />

& tomorrow.<br />



To schedule an appointment, please contact us:<br />

L. J. WEST DIAMONDS INC. | 589 5th Ave, Suite 1102 | New York, NY 10017, U.S.A. | T +1 212 997 0940<br />

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

Introducing our Revolutionary<br />

3D Ring Configurator<br />

1300 LIVADI (548234)<br />


THE<br />



Supporting Australia’s finest<br />

independent jewellery retailers and<br />

preferred supply partners with<br />

innovation, technology, strategic marketing,<br />

professional expertise, integrity and more.<br />

With clarity and confidence,<br />

we elevate independent retail.<br />

What are you waiting for?<br />

Josh Zarb - CEO<br />

0448 416 070 | josh@jewellerscollective.com<br />

jewellerscollective.com<br />







AUGUST <strong>2022</strong><br />




AUGUST <strong>2022</strong><br />

Contents<br />

This Month<br />

Industry Facets<br />

17 Editorial<br />

20 Upfront<br />

24 News<br />

59 Show & Tell<br />

36<br />

39<br />

110<br />

112<br />

10 YEARS AGO<br />

Time Machine: <strong>August</strong> 2012<br />


Pearls V: Exotics<br />

MY BENCH<br />

Yuki Mathwin<br />


William Gant<br />

59 SHOW & TELL<br />

Fair preparation<br />

Features<br />

4The International <strong>Jeweller</strong>y Fair will<br />

take place in Sydney for the first time since<br />

2019 later this month. Learn about the<br />

new products on offer from suppliers.<br />

41<br />

49<br />

94<br />


Find the right price for the right product<br />


Three ways to rejuvinate a stagnant business<br />


Lamenting natural diamond producers' missed income<br />

Better Your Business<br />


Fine line<br />

4Selecting the wrong product price<br />

is a disaster for retailers. Too high?<br />

Unachievable for customers. Too low?<br />

The wrong message is communicated<br />

about the quality of the product.<br />

SAMUEL ORD explores the<br />

complicated world of retail pricing.<br />

104<br />

106<br />

107<br />

108<br />

109<br />


Customer service will make or break a business. KIZER AND BENDER explains why.<br />


DAVID BROCK explores the importance of quality over quantity in sales.<br />


Consumer behaviour myths are widespread. BRI WILLIAMS debunks common beliefs.<br />


SHANE O'NEILL puts the latest social media craze under the microscope.<br />


MANDY EDWARDS outlines the perils of failing to update your social media strategy.<br />


Exotics<br />

4Extravagant pearls<br />

come in a wide range<br />

of colours, varieties<br />

and forms, and some of<br />

the world's rarest and<br />

most unique come from<br />

unexpected sources.<br />

FRONT COVER Proudly Australian-owned and<br />

operated, this year SAMS Group celebrates 55<br />

years of dedication to innovative new brands,<br />

inspiring creative trends, and delivering quality<br />

service. Since its humble beginning in March of<br />

1967 until today, SAMS Group continues to be a<br />

market leader in luxury jewellery and impeccable<br />

design involving high-quality Australian<br />

gemstones. Visit: samsgroup.com.au<br />

Unlocking Profit<br />

Show & Tell Changing Diamonds<br />


<strong>August</strong> <strong>2022</strong> | 13

T H E W A T E R C H A M P I O N<br />

The new Delfin Mecano is forged from the same<br />

DNA as its brilliant 1960s forerunner, able to<br />

function perfectly at up to 200m deep, thanks<br />

to the Edox Double O-ring seals. Edox has<br />

given the watch face an eye-catching makeover<br />

with a skeletonised movement exposing<br />

some of the intricate motions of the stunning<br />

Calibre 853. Delfin – The Water champion.<br />

(02) 9417 0177 | dgau.com.au

Editor’s Desk<br />

And it’s another turn of event!<br />

The industry is buzzing ahead of the most eagerly anticipated jewellery fair yet.<br />

ANGELA HAN says everything points to this being a meeting of deep significance.<br />

I am sure that when the exhibitors at the<br />

last International <strong>Jeweller</strong>y Fair were<br />

packing up their stands on the final day<br />

in 2019, no one would have thought the<br />

next time they would be gathering in<br />

Sydney would be in <strong>2022</strong>!<br />

Following a three-year hiatus caused<br />

by the COVID-19 global pandemic, the<br />

Sydney trade fair is back.<br />

While there have been some smaller,<br />

boutique-style events during 2020 and<br />

2021 when it looked like the pandemic<br />

was only passing through, nothing<br />

compares to a full-scale jewellery fair at<br />

Darling Harbour.<br />

If there is anything that we learned<br />

during the past three years, it’s how<br />

important face-to-face business events<br />

are, and when it comes to buying events<br />

– where retailers meet one-on-one with<br />

suppliers – it’s even more vital.<br />

This was more true for the jewellery<br />

industry where the touch and feel of a<br />

product plays a major part in the financial<br />

transaction – from determining how<br />

light plays off the facet of a gemstone,<br />

to reviewing the finishing on a ring with<br />

fine craftsmanship, we quickly discovered<br />

that business was better when we could<br />

engage all senses.<br />

That was never more evident than with<br />

the various attempts to organise virtual<br />

trade shows that effectively left us with a<br />

permanent 'Zoom hangover'.<br />

Not only did we all become zoomed<br />

out by having to attend or participate<br />

in, webinars, virtual events and trade<br />

shows but the ability to switch off and not<br />

have our engagement metrics tracked<br />

constantly became exhausting.<br />

Aside from the fact that the organisers<br />

of these events always managed to claim<br />

they were successful, I’ve still yet to<br />

hear of any exhibiting suppliers say that<br />

they’re itching to do another virtual fair<br />

because orders were through the roof.<br />

In fact, the opposite was often true<br />

as exhibitors felt that they’d wasted<br />

resources and, in some cases, been<br />

duped. After all, time and money<br />

are luxuries that are in short supply,<br />

especially in this economic climate!<br />

While we have been somewhat fortunate<br />

in Australia compared with many other<br />

countries, the international trade show<br />

industries are still slowly getting back<br />

on their feet.<br />

While JCK Las Vegas seems to have<br />

basked in success with its 17,000 visitors<br />

and 1,800 exhibitors, it’s worth sparing a<br />

thought for Hong Kong. It may well take<br />

it some time to regain its dominance<br />

as the premier destination location for<br />

international jewellery buyers.<br />

It should also be remembered that the<br />

organisers of the upcoming <strong>Jeweller</strong>y &<br />

Gem World (JGW) Fair shifted this year’s<br />

exhibition from Hong Kong to Singapore.<br />

It’s set to take place on 27-30 September<br />

and is said to be a more ‘accessible’ inperson<br />

experience.<br />

And while organiser Informa Markets<br />

hopes the change of venue is a one-off<br />

arrangement, we know that anything can<br />

happen these days, as evidenced by its<br />

recent decision to change locations due<br />

to pandemic-related travel restrictions.<br />

But back to our own jewellery fair, which<br />

we will be more eagerly anticipating this<br />

year than any before.<br />

Busy and bustle at the fair<br />

Not only are the suppliers preparing for<br />

their first fair in three years, the buying<br />

groups will be out in force.<br />

Nationwide has made some major plans<br />

for its presence at the Sydney fair. The<br />

From<br />

determining<br />

how light plays<br />

off the facet of<br />

a gemstone, to<br />

reviewing the<br />

finishing on a<br />

ring with fine<br />

craftsmanship,<br />

we quickly<br />

discovered that<br />

business was<br />

better when we<br />

could engage<br />

all senses.<br />

Annual Awards Dinner will be held on the<br />

Sunday during the fair while a members’<br />

night out to watch the Moulin Rouge<br />

musical has also been organised.<br />

In addition, workshop visits to tour the<br />

facilities of Chemgold and Palloys have<br />

been planned for members. Meanwhile<br />

on the fair floor, Bill Sechos of Gem<br />

Studies Laboratories will conduct four<br />

diamond grading courses exclusively for<br />

Nationwide members, alongside a dozen<br />

other education training sessions.<br />

Independent <strong>Jeweller</strong>s Collective will<br />

focus its activities around the theme:<br />

A Brilliant Christmas and is set to host<br />

a special members meeting over the<br />

two days preceding the IJF where it will<br />

present its <strong>2022</strong>/2023 Marketing Calendar<br />

and conduct Brilliant Christmas training<br />

workshops where the keynote address<br />

will be on how to market your business<br />

in today’s landscape.<br />

Amidst a host of other exhibitors’<br />

promotions, we celebrate some special<br />

anniversaries of cornerstone Aussie<br />

companies, like Duraflex Group Australia<br />

(60 years) and SAMS Group (55 years)<br />

which have also been exhibiting for many<br />

decades at this same show.<br />

Fair organiser Expertise Event will also<br />

host retail strategist Debra Templar, who<br />

will deliver six motivational and pragmatic<br />

sessions for store-owners and managers,<br />

and to top it off, the ever-popular Happy<br />

Hour will take place on the Saturday<br />

evening, before the fair closes.<br />

As always, the <strong>Jeweller</strong> team is looking<br />

forward to greeting you at the fair with<br />

a magazine and copy of the Trade Fair<br />

Directory!<br />

Let’s make it an event to remember!<br />

Angela Han<br />

Publisher<br />

<strong>August</strong> <strong>2022</strong> | 17

Dedicated to innovating new brands, leading creative trends,<br />

Dedicated to innovating new brands, leading creative trends,<br />

preserving integrity and delivering quality<br />

preserving integrity and delivering quality<br />

With over 55 years of experience within the industry, Sams Group Australia is the<br />

market leader in delivering quality timepieces and stunning jewellery to the Australian public.<br />

In March 1967, Sam Der Bedrossian founded<br />

Sams Watchmaker <strong>Jeweller</strong> Pty Ltd. To this day,<br />

the company remains a fully Australian-owned<br />

family business – a company that he still faithfully<br />

manages.<br />

Within a few years, he began to import movements<br />

from Switzerland to design and assemble his own<br />

watches under the brand name “Classique”.<br />

Sam is still passionate about every detail and<br />

design of his watches, and remains completely<br />

involved in every aspect, Sam Der starting Bedrossian with AM the<br />

selection of world FOUNDER, quality parts MANAGING and components<br />


that make up a Classique watch.<br />

In 1991, Steve Der Bedrossian joined the family<br />

business to help create and manage Classique<br />

Watches. While gaining experience in the industry,<br />

Steve In March had 1967, a vision Sam Der to extend Bedrossian further founded into the 100<br />

domain per cent of fine Australian-owned, diamonds and Sams jewellery Watchmaker with an<br />

<strong>Jeweller</strong> Pty Ltd., a company that he still faithfully<br />

manages to this day.<br />

Within a few years, he began to import movements<br />

from Switzerland to design and assemble his own<br />

watches under the brand name “Classique”.<br />

From Humble Beginnings<br />

From Humble Beginnings<br />

emphasis on Australian materials that represented<br />

the very best of Australia and its rare beauty.<br />

In 2010, the brands Pink Kimberley Diamonds<br />

and Blush Pink Diamonds were established. The<br />

use of Australian pink diamonds fell well within<br />

the scope of company values of using only local<br />

materials – and so the vision became creation.<br />

With both brands being well-received by the<br />

industry and consumers, the Australian Pink<br />

Diamond Exchange and Sapphire Dreams were<br />

launched<br />

Steve Der<br />

in<br />

Bedrossian<br />

2021 to further emphasise the<br />


importance and company belief in the quality and<br />

rare beauty of Australian products.<br />

Sams Group is proud to celebrate 55 years in the<br />

industry and would like to thank the trade for the<br />

decades emphasis of on support. Australian materials that represented<br />

We<br />

the<br />

look<br />

very<br />

forward<br />

best of<br />

to<br />

Australia<br />

continuing<br />

and its<br />

our<br />

rare<br />

service<br />

beauty.<br />

to you.<br />

In 2006, the brands Pink Kimberley Diamonds<br />

and Blush Pink Diamonds were established. The<br />

use of Australian pink diamonds fell well within<br />

the scope of company values of using only local<br />

materials – and so the vision became creation.<br />

Sam is still passionate about every detail and<br />

design of his watches, and remains completely<br />

involved in every aspect, starting with the<br />

selection of world quality parts and components<br />

that make up a Classique watch.<br />

In 1991, Steve Der Bedrossian joined the family<br />

business to help create and manage Classique<br />

Sam Der Bedrossian AM<br />

Watches. While gaining experience in the industry,<br />


Steve had a vision to extend further into the<br />

With both brands gaining rapid popularity and<br />

interest to both retailers and consumers, the<br />

Australian Pink Diamond Exchange and Sapphire<br />

Dreams were launched in 2021 to further<br />

emphasise the importance and company belief in<br />

the quality and rare beauty of Australian products.<br />

Now with multiple landmark brands, Sams Group<br />

Steve Der Bedrossian<br />

is proud to celebrate 55 years in the industry<br />


and continue to serve the industry with the most<br />

beautiful Australia has to offer the world.<br />

samsgroup.com.au<br />

orders@samsgroup.com.au • samsgroup.com.au •<br />

02 9290 2199<br />

02 9290 2199



U S T R ALI A<br />


Classique Watches was founded in 1967, making<br />

it the first brand within Sams Group Australia.<br />

The luxurious timepieces are fitted with Swiss<br />

Movements, featuring a design to suit any style.<br />

Combining the natural beauty of Argyle pink<br />

diamonds with award winning Australian<br />

contemporary design. Elegance and luxury<br />

are epitomised in Pink Kimberley’s pieces.<br />

Addressing market opportunity and high<br />

demand, Blush Pink Diamonds was created<br />

on the principle that jewellery with natural<br />

pink Australian Argyle diamonds should be<br />

affordable and accessible to every price range.<br />

APDX is Australia’s first digital marketplace<br />

for buying and selling Argyle pink diamonds,<br />

with the expert advice of gemmologists and<br />

experienced jewellers on your side.<br />

Taking inspiration from the natural wonders<br />

of Australia, Sapphire Dreams showcases<br />

incredible Australian Sapphires, set in modern<br />

and luxurious designs.<br />

Become a stockist today

Upfront<br />

#Instagram hashtags to follow<br />

Alpha Order<br />

#iconicjewellery<br />

5,440 POSTS<br />

#dreamring<br />

213,452 POSTS<br />

#weddingjewelry<br />

1,778,955 POSTS<br />

#engagementring<br />

7,201,778 POSTS<br />

#australianopals<br />

60,004 POSTS<br />


Marie-Louis Diadem<br />

#pearls<br />

7,410,009 POSTS<br />

#blackjewelry<br />

97,111 POSTS<br />

#goldnecklaces<br />

151,003 POSTS<br />

#ringinspo<br />

105,999 POSTS<br />

#winterjewellery<br />

39,155 POSTS<br />

4The Marie-Louise Diadem is a tiara<br />

designed to hold 79 emeralds and<br />

more than 1,000 diamonds, totaling<br />

approximately 700 carats. The tiara is<br />

a scrolling design of palmettes and<br />

medallions in gold and silver. The tiara<br />

was commission by Napoelon Bonaparte,<br />

Emperor of France, as a gift to his second<br />

wife, Marie-Louise of Austria. Following<br />

her death, ownership of the tiara is a hotly debated topic.<br />

Marie-Louise bequeathed the tiara to one of two people.<br />

According to The Smithsonian, her aunt Archduchess Elise was<br />

the recipient. The Louvre states that her cousin, Leopold II, Grand<br />

Duke of Tuscany, was the heir. A descendant sold the tiara to Van Cleef<br />

& Arpels in 1953. The emeralds were sold individually and in 1962,<br />

were replaced with Persian turquoises totaling 540 carats. The Tiara is<br />

currently on display at The Smithsonian in Washington DC.<br />

Trend Spotting<br />

4The pendulum has swung back in<br />

favour of clip-on earrings after more<br />

than four decades in the wilderness.<br />

Gucci, Dolce & Gabbana, Dior, Oscar<br />

Dela Renta and beloved designer<br />

Alessandra Rich are all showcasing<br />

new clip-on products US actress<br />

Jennifer Garner, star of Alias and 13<br />

Going On 30, recently revealed she's<br />

long been a fan of clip-on earrings.<br />

Image credit: @gwynethpaltrow<br />

Stranger Things<br />

Weird, wacky and wonderful<br />

jewellery news from around the world<br />

Rodents steal gold<br />

4In a bizarre incident reported<br />

from Mumbai, India, police<br />

officers claim to have recovered<br />

gold stolen by rats. A 45-year-old<br />

woman informed the police that<br />

approximately 100 grams of gold<br />

had gone missing. Investigating<br />

officers were led to a garbage<br />

dump and after examining CCTV<br />

footage, observed rodents entering<br />

the abandoned bag, taking the<br />

gold, and heading into a nearby<br />

drain.Police recovered the gold<br />

ornaments within a gutter nearby.<br />

Closing after 277 years<br />

4Thurlow Champness, a<br />

jewellery store in Suffolk, Britain,<br />

has confirmed the business<br />

will cease operating soon. The<br />

business has been run out of<br />

the same store for 277 years.<br />

The store opened in 1745, with<br />

watchmaker George Lumley<br />

selling watches, diamond jewellery,<br />

gold pieces and clocks. Current<br />

owner Trevor Salt is retiring after<br />

more than four decades work.<br />

Digital Brainwave<br />

Thin as can be<br />

Graff has been<br />

taught the<br />

importance<br />

of prioritising<br />

cybersecurity<br />

measures.<br />

4UK-based jewellery store Graff has<br />

been given a firm lesson in the importance<br />

of cybersecurity after paying more than<br />

$US7 million in random to hackers. The<br />

incident became public in early June when<br />

representatives of Graff appeared in court in<br />

London to sue an insurance provider.<br />

According to the lawsuit, Graff was attacked<br />

by Russian ransomware last year, leading<br />

to threats to publish private client data. A<br />

Graff spokesperson confirmed that a payout<br />

was negotiated with the hackers to prevent<br />

damage to customers.<br />

Campaign Watch<br />

4American actress Gwyneth Paltrow<br />

has found herself under fire once again,<br />

this time over the launch of a new<br />

''everyday'' jewellery collection.<br />

The 49-year-old recently launched a<br />

jewellery line simply titled 'G' and was<br />

branded as 'out of touch' by users<br />

on social media. Marketing for the<br />

jewellery branded the products as<br />

''everyday'' despite featuring a<br />

$7,900 gold necklace featuring<br />

1.96-carat diamonds.<br />

4Swiss watch manufacturer<br />

Richard Mille has launched the<br />

world's thinnest mechanical watch.<br />

The Richard Mille Ferrari Ultra-Thin<br />

has a profile of just 1.8mm, which<br />

is approximately the thickness of a<br />

human hair. The previous record for<br />

world's thinnest watch was held by<br />

Bugari's Octo Finissimo Ultra.<br />

150 editions intricately crafted<br />

titanium Richard Mille watch will be<br />

released, retailing at approximately<br />

$US1.7 million.<br />


Published by Befindan Media Pty Ltd<br />

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

Publisher Angela Han angela.han@jewellermagazine.com • Journalists Samuel Ord samuel.ord@jewellermagazine.com | Richard Chiu editorial@jewellermagazine.com<br />

Production Coordinator Lauren McKinnon art@befindanmedia.com • Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com<br />

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

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

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

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<br />

arising from the published material.

sales@dsmjewels.com<br />


SYDNEY<br />

Suite 911-912, Level 9, 155 King St.<br />

The Trust Building Sydney,<br />

NSW 2000 | 02 9232 1410<br />


Suite 605A, Level 6, 227 Collins St.<br />

The Wales Corner Building Melbourne,<br />

VIC 3000 | 03 9650 3166

Natural Certified Diamonds | Natural Loose Diamonds<br />

Lab Grown Certified Diamonds | Natural Fancy Colour Diamonds<br />

Natural Matching Pair Diamonds | Natural Black Diamonds<br />

Natural Diamond <strong>Jeweller</strong>y | Lab Grown Diamond <strong>Jeweller</strong>y

News<br />

<strong>Jeweller</strong>y fair scammers back in business as world exits pandemic<br />

<strong>Jeweller</strong> decided to engage with one of the<br />

scammers offering the attendee list for the<br />

International <strong>Jeweller</strong>y Fair. We asked for the<br />

details of this list and the cost.<br />

We were supposedly communicating with Henry<br />

Johnston, a database and list expert from<br />

an international research company based in<br />

Pennsylvania, USA. Even though our email replies<br />

were being sent during Australian business hours,<br />

they were being quickly answered although it was<br />

meant to be 3am in the US.<br />

<strong>Jeweller</strong>y show scammers are back in force as the<br />

world ‘reopens’ after the global pandemic.<br />

The scams – which were increasingly prevalent<br />

before COVID forced the closure of most<br />

international trade shows all around the world<br />

– are very simple.<br />

These scams tends to target three things: attendee<br />

lists, fair directories and hotel reservations.<br />

Attendee lists<br />

This is the most common scam and involves<br />

exhibitors being contacted by people who claim to<br />

have an upcoming show’s attendee list. For a price,<br />

you buy complete contact details of every visitor -<br />

before they even attend the event!<br />

The scammers will often use the show name,<br />

logo and/or show organiser’s name in the<br />

email signature.<br />

<strong>Jeweller</strong> is aware of a number of emails<br />

currently circulating stating, “We are offering<br />

you the attendees contacts list of IJF<br />

International <strong>Jeweller</strong>y Fair <strong>2022</strong>: Are you<br />

interested to purchase?”<br />

The email goes on to list attendee categories<br />

including jewellery retailer, department store buyer,<br />

watch or clock retailer, duty free retailer, jewellery<br />

manufacturer and so on.<br />

Fair directories<br />

This scam entails exhibitors receiving an email<br />

to update their company information in the<br />

‘International Fairs Directory’, or another name<br />

similar to the name of the exhibition they are<br />

scheduled to attend.<br />

These emails appear at a time when suppliers<br />

are focusing on the trade show’s planning.<br />

A few years ago, a number of Australian jewellery<br />

suppliers got caught by this scam when they found<br />

themselves agreeing to pay €1,212 ($AU1,796) to<br />

a company each year for three years for the<br />

‘privilege’ of advertising in a directory, which had<br />

no connection to any trade show.<br />

Hotel reservations<br />

This scam has not been as prominent in the<br />

Australian jewellery industry; however, again it’s<br />

very simple: exhibitors are offered ‘too good to<br />

refuse’ hotel deals only to discover they booked<br />

rooms through a third-party room broker.<br />

People arrive at a hotel only to find that no booking<br />

exists and there is no recourse for the payment<br />

of rooms. These ‘brokers’ falsely imply they are<br />

affiliated with show management and secure<br />

deposits and/or full prepayment fraudulently.<br />

Gary Fitz-Roy, managing director Expertise Events<br />

said that not only does he get calls every year from<br />

jewellery exhibitors about the attendee list being<br />

sold, he said his own business gets offers to buy<br />

the attendee list of his own show!<br />

“It’s an old scam and no one running it is very<br />

sophisticated. The scammers copy the exhibitors<br />

list contact details from our website, as well as our<br />

details as the fair organiser, and then try to sell us<br />

an attendee list that they don’t have.<br />

“In fact, some years ago, when we launched<br />

a new exhibition in another industry, the<br />

scammers were trying to sell the attendee list<br />

of a show that had never taken place. It was the<br />

first event,” Fitz-Roy said.<br />

He advises exhibitors to ignore these emails:<br />

“Suppliers and exhibitors and, more importantly,<br />

visitors [retail buyers] need to be assured that<br />

Expertise Events does not sell our database, the<br />

scammers have no access to it.<br />

“It’s simply a fraud, just another internet scam.”<br />

Investigation<br />

This publication receives many emails attempting<br />

the attendee list scam, and a quick search of the<br />

email address and/or adding the URL address of<br />

the, so called, list broker will quickly expose the<br />

scam. That is, while the email address can be, say,<br />

john.smith@exhibitorlists.com, there will be no<br />

website for the business Exhibitorlists.<br />

We asked Johnston to call our office to discuss<br />

the details. We were told the attendee list for a<br />

show that had not taken place included the names,<br />

addresses, phone numbers and email addresses<br />

of 15,237 jewellery buyers scheduled to attend the<br />

Sydney trade fair.<br />

When the number of buyers was queried, the man –<br />

who revealed he was an Indian national - confirmed<br />

that the figure was correct. He also confirmed he<br />

was located in Pennsylvania, the address on the<br />

company’s website, and explained that “he is on call<br />

to answer questions, even at 3am in the morning!”<br />

At this point, we asked if he could tell us how many<br />

jewellery stores there are in Australia according to<br />

his “extensive database of jewellery buyers”.<br />

He said he could provide that figure but first, he had<br />

to “interrogate the database” at which point there<br />

was fast and seemingly loudly exaggerated typing<br />

(banging) on a keyboard to signify search queries.<br />

The answer came back “more than 40,000”.<br />

<strong>Jeweller</strong> confirmed the question to Johnston and<br />

he replied, “Yes, that’s correct, there are more than<br />

40,000 independent jewellery stores in Australia.<br />

And we have all their contact details.”<br />

For the record, the total number of jewellery stores<br />

in Australia, including chain stores such as Michael<br />

Hill, Prouds, and so on, is fewer than 3,000!<br />

Following further discussion - including a great<br />

many more outrageous claims - we agreed to buy<br />

the list.<br />

We were presented with an invoice for $US500<br />

listing the payment details for a National Australia<br />

Bank account; however; the payment had to<br />

be made via a specific Western Union office in<br />

Sunshine, a western suburb of Melbourne.<br />

Needless to say, the payment was never made,<br />

even though we assured Mr Johnston that it had.<br />

Fitz-Roy said the only way to deal with<br />

scammers is not to reply. “It happens on all<br />

of our shows and happens to other event<br />

organisers all around the world.<br />

“Expertise Events has the largest database of<br />

jewellery retailers and buyers by far. We would<br />

never sell, rent, or give away our lists.”<br />

24 | <strong>August</strong> <strong>2022</strong>

News<br />

June jewellery sales achieve mixed results; need for planning pushed<br />

Australian jewellery sales saw mixed results across<br />

product categories in June with the performance<br />

roundup to the end of the financial year influenced<br />

by impacts of the COVID-19 pandemic and<br />

weather events, according to the latest Retail Edge<br />

Consultant’s market report.<br />

Comparative sales dollars slightly increased by 1.9<br />

per cent in June compared with the same period<br />

last year but marked a significant increase by 19<br />

per cent based when compared to June 2020.<br />

An increase of 3.5 per cent was noted for<br />

comparative units sold when measured against<br />

June 2021, but revealed a decline of 6 per cent<br />

when compared with June 2020.<br />

Mike Dyer, sales manager, Retail Edge said, “The<br />

end of the financial year and the start of the climb<br />

to Christmas all encompassed in the simple flip of<br />

a page on a calendar.”<br />

He stressed that planning for the new financial<br />

year “has taken on an even greater importance” as<br />

the latest data revealed mixed results and “point<br />

towards the [end of financial year] sales maybe<br />

having a greater influence than at the same time<br />

last year.”<br />

Comparative average sales based on inventory<br />

dropped by 2.6 per cent ($214) when compared<br />

with the same period last year ($219) but marked<br />

a strong 26 per cent increase from $169 when<br />

measured against June 2020.<br />

Diamond set precious jewellery sales declined by 15<br />

per cent compared with June 2021 but indicated an<br />

8 per cent increase based on a two-year difference.<br />

Other categories also increased; colour stone<br />

set precious jewellery rose by 13 per cent when<br />

measured against last year, but revealed a strong<br />

43 per cent increase compared with June 2020,<br />

while non-stone precious jewellery saw a slight<br />

increase of 1.2 per cent compared with June 2021<br />

but marked a significant rise of 22 per cent when<br />

measured against June 2020.<br />

Sales dollars for laybys for new pieces and pickups/<br />

cancellations rose by 15 per cent, which points to<br />

increased cashflow and customer traffic, as well as<br />

consumers carefully “planning and budgeting their<br />

jewellery purchases.”<br />

However, sales dollars for services/repairs declined<br />

by 27 per cent between new (incoming) pieces and<br />

pickups/cancellations. A similar downtrend was<br />

seen for special orders which dropped by 8 per cent<br />

between new pieces and pickups/cancellations.<br />

Dyer noted that the decline in services and special<br />

orders should draw attention to marketing and<br />

social media campaigns for those segments to<br />

perform better.<br />

“When looking at your 12-month planning,<br />

remember to review suppliers as well as product<br />

categories. As consumer product acceptance shifts,<br />

you need to understand and adapt to maintain<br />

market relevance,” he added.<br />

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News<br />

Record sales performance for Australian jewellery retailer<br />

Despite Michael Hill['s shutdown of three stores in Australia<br />

during the quarter, plus the loss of more than 10,000 store<br />

hours, the company has been on a consistent uptrend for 12<br />

successive quarters.<br />

Brisbane-based jewellery retailer Michael Hill<br />

International has announced a record year of sales<br />

based on its latest trading report.<br />

Store sales increased by 17 per cent for the<br />

quarter and 7.3 per cent for the full year when<br />

measured with the same period last year.<br />

Same-store sales also increased by 8 per cent<br />

for the year when compared with the same<br />

period last year. Quarterly results saw an<br />

increase of 2.1 per cent.<br />

Daniel Bracken, CEO and managing director,<br />

Michael Hill International said, “I’m delighted<br />

with our full year trading results, despite the<br />

continued backdrop of COVID disruptions and<br />

the resulting loss of 10,000 store trading days,<br />

we have delivered the highest sales and margin<br />

in the history of the Michael Hill brand.”<br />

Digital sales also generated a record<br />

performance with sales of more than $40 million<br />

marked by an increase of 23 per cent compared<br />

with the previous year and representing 7.1 per<br />

cent of total sales for the group.<br />

Despite the shutdown of three stores in Australia<br />

during the quarter, plus the loss of more than<br />

10,000 store hours, the company has been on a<br />

consistent uptrend for 12 successive quarters.<br />

Another key contributor to the sales performance is<br />

the Brilliance by Michael Hill loyalty program which<br />

has more than 1.4 million members to date.<br />

“These results reaffirm our continuing journey<br />

to elevate the Michael Hill brand through our<br />

marketing, our product, our stores, and our<br />

people,” Bracken said, noting the challenges of<br />

the COVID-19 pandemic and the uncertain global<br />

economic environment.<br />

“The business will continue to prioritise<br />

key strategic initiatives across loyalty, retail<br />

fundamentals, and digital expansion while<br />

maintaining an elevated focus on capital<br />

investment opportunities,” he added.<br />

The company has forecasted comparable earnings<br />

before interest and taxes (EBIT) figures of between<br />

$60 to $63 million for FY22.<br />

Michael Hill International is listed both in the ASX<br />

and NZX and operates 280 stores throughout<br />

Australia, New Zealand, and Canada.<br />



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News<br />

Millions in jewellery<br />

mysteriously missing<br />

Former jeweller convicted of grand larceny in US<br />

The missing jewellery includes several high-end vintage and<br />

rare pieces belonging to 18 jewellers participating in the<br />

International Gem and <strong>Jeweller</strong>y Show.<br />

An estimated $US150 million ($AU221 million) of<br />

jewellery loaded into an armoured vehicle and en<br />

route to a trade show in Los Angeles has bizarrely<br />

disappeared.<br />

The missing jewellery includes several high-end<br />

vintage and rare pieces belonging to 18 jewellers<br />

participating in the International Gem and<br />

<strong>Jeweller</strong>y Show.<br />

Some of the jewellers, as reported by CBS News,<br />

have lost pieces that have been curated for the last<br />

40 years.<br />

The missing jewellery was being transported to the<br />

Pasadena Convention Centre from another trade show<br />

at the San Mateo Event Centre.<br />

However, details on what has happened to the<br />

jewellery remain a mystery as the owners say they are<br />

yet to receive a detailed explanation from Brink’s, the<br />

owner of the armoured vehicle.<br />

CBS News contacted a spokesperson for Brink’s who<br />

refused to disclose the nature of what is believed<br />

to have been a robbery. CBS was unable to verify if<br />

security footage or tracking devices from the vehicle<br />

are available as a part of the investigation.<br />

"Earlier this week, a loss incident involving a<br />

Brink's vehicle occurred near Los Angeles,” Brink’s<br />

statement reads.<br />

“According to the information the customers provided<br />

to us before they shipped their items, the total value of<br />

the missing items is less than $US10 million.<br />

“We are working with law enforcement, and we will<br />

fully reimburse our customers for the value of their<br />

assets that were stolen, in accordance with the terms<br />

of our contract.”<br />

The Federal Bureau of Investigation is investigating<br />

the case together with the LA Country Sheriff’s<br />

Department.<br />

Nehal Modi has been convicted of first degree<br />

grand larceny in the New York State Supreme<br />

Court.<br />

In December, a jury indicted Modi for one count<br />

of grand larceny, defined as the theft or robbery<br />

of an item valued at more than $US1 million.<br />

According to Manhattan District Attorney<br />

Alvin Bragg, between March and <strong>August</strong> 2015,<br />

Modi made false representations regarding<br />

a purported deal with Costco Wholesale<br />

Corporation to obtain more than $US2.6 million<br />

worth of diamonds from Lev Leviev Diamonds,<br />

then liquidated the diamonds for his own<br />

personal gain.<br />

“This scheme unfolded in the heart of New York<br />

City’s historic diamond district., where Mr. Modi<br />

conned and defrauded a Manhattan business<br />

out of millions,” said Bragg.<br />

“Here, there was clear and conclusive evidence<br />

Swiss luxury goods group Richemont has<br />

reported stellar global sales for the first fiscal<br />

quarter despite ongoing struggle in China.<br />

The group’s major jewellery maisons —<br />

Cartier, Van Cleef & Arpels, and Buccellati<br />

— climbed 20 per cent year-on-year to €3.02<br />

billion ($AU4.48 billion) for the three months<br />

ending June 30.<br />

Revenue from watch brands such as Piaget,<br />

Vacheron Constantin and A. Lange & Söhne<br />

increased 18 per cent to €1 billion ($AU1.48<br />

billion).<br />

that Mr. Modi obtained these diamonds under<br />

false pretenses and used them for quick cash.”<br />

Modi was once CEO of retail group Samuels<br />

Jewelers, which shut down in 2019 after<br />

its parent company, India’s Gitanjali Group,<br />

collapsed as a result of fraud committed against<br />

Punjab National Bank.<br />

Grand larceny in the first degree is a class B<br />

felony under New York state law and carries<br />

a minimum penalty of one to three years<br />

imprisonment.<br />

Sentencing is scheduled for July 22 and<br />

according to reporting by Rapaport News,<br />

Modi plans to appeal his conviction.<br />

The 41-year-old is the younger brother of<br />

infamous businessman Nirav Modi, 51, who is<br />

currently behind bars in the UK for a range of<br />

criminal offences including fraud and money<br />

laundering.<br />

Richemont celebrates strong opening quarter<br />

Total revenue for Richemont for the quarter<br />

reached €5.26 billion ($AU7.80 billion) – a 20<br />

percent improvement compared with the first<br />

fiscal quarter of last year.<br />

The regional data was positive in the US<br />

market, improving by 41 per cent compared<br />

with last year. The US market accounted for<br />

22 per cent of total sales. Europe improved by<br />

41 per cent.<br />

The Asia Pacific market performed negatively<br />

with an 8 per cent decrease in sales,<br />

attributed to the COVID pandemic.<br />

The pandemic continues to hurt sales in<br />

China too, with Richemont reporting a 37 per<br />

cent drop in sales for the quarter.<br />

Based in Switzerland, Richemont owns luxury<br />

brands such as A. Lange & Söhne, Buccellati,<br />

Cartier, Vacheron Constantin, and Van Cleef<br />

& Arpels. Retail accounts for 58 per cent of<br />

Richemont’s sales.<br />

28 | <strong>August</strong> <strong>2022</strong>

News<br />

Luxury jeweller sues insurer over cyber ransom<br />

British luxury jeweller Graff has filed a lawsuit<br />

against its insurer for refusing to cover a multimillion<br />

dollar ransom payment.<br />

Graff paid $US7.5 million in cryptocurrency to a<br />

notorious Russian hacking syndicate, Conti, after<br />

the company was hacked using ransomware in<br />

September of 2021.<br />

As a part of the extortion, the public leaking of<br />

confidential client information was threatened<br />

against Graff.<br />

Graff’s lawsuit has been made against Travelers<br />

Companies Inc, stating that the ransom paid<br />

in cryptocurrency to the criminals should have<br />

been covered under its insurance policy.<br />

A Graff spokesperson told Bloomberg, “We<br />

are extremely frustrated and disappointed by<br />

Travelers’ attempt to avoid settlement of this<br />

insured risk.”<br />

As reported in <strong>Jeweller</strong> last year, the hackers<br />

reportedly stole high-profile identities from Graff<br />

and leaked personal and sensitive information<br />

on the ‘dark web’.<br />

In a bizarre twist, the hackers released a<br />

statement of apology saying: “We found that our<br />

sample data was not properly reviewed before<br />

being uploaded to the blog” and it assured Saudi<br />

Arabia, UAE, and Qatar families whose names<br />

appeared on the leak that any information<br />

pertaining to the royal family members “will be<br />

deleted without any exposure and review.”<br />

The hackers removed 69,000 documents posted<br />

online following the apology, which they claimed<br />

represented only 1 per cent of their total haul.<br />

In another statement, the group offered<br />

assurances that none of the stolen files was<br />

“sold on auctions or offered as samples, or<br />

revealed in any other capacity to any third party.”<br />

Cybersecurity experts said the unexpected<br />

response from the hackers could have been<br />

borne out of fear of possible repercussions for<br />

any customers on the list.<br />

The hacked files included invoices, client lists,<br />

receipts, and credit details of Graff clientele.<br />

Graff was founded by British jewellery Laurence<br />

Graff in 1960 and today operates more than 50<br />

stores worldwide with locations in New York,<br />

London, Las Vegas, Monte Carlo, Beijing, and<br />

Melbourne.<br />

Graff paid $US7.5 million in cryptocurrency to a notorious<br />

Russian hacking syndicate, Conti, after the company was<br />

hacked using ransomware in September of 2021.

News<br />

Indian jeweller seizes world record with stunning ring<br />

Ring fetches $US7.3 million<br />

A diamond jeweller from India has entered the<br />

Guinness World Records after creating a ring<br />

that holds more than 24,000 diamonds.<br />

The mushroom-shaped ring dubbed “The<br />

Touch Of Ami” holds 24,679 white diamonds<br />

and was made by Kerala-based SWA Diamonds.<br />

The ring took 90 days to create and weighs<br />

340 grams and is valued at $US95,243<br />

($AU141,576).<br />

Abdul Gafur Anadiyan, managing director SWA<br />

Diamonds said, “It is our privilege and honour<br />

that this ring was made in India”<br />

“[The ring] marks the triumph of entrepreneurship<br />

in the diamond sector of our state.”<br />

The design was inspired by the pink oyster<br />

mushroom which symbolises immortality<br />

in Indian culture. It was modeled using 3D<br />

computer-aided design and the ring base<br />

was molded in gold before being encrusted<br />

in diamonds.<br />

"A team of qualified independent diamond<br />

experts and jewellery experts evaluated the<br />

ring at IGI - International Gemological Institute<br />

Lab," Anadiyan added. The previous record<br />

was created in 2020 by another Indian jeweller<br />

- Harshit Bansal of Renani Jewels, with a ring<br />

featuring 12,638 diamonds.<br />

SWA Diamonds is owned by jewellery<br />

manufacturer and distributor Capestone.<br />

The latest Poly Auction in Hong Kong has<br />

collected more than $US25 million in sales, with<br />

the highest price achieved by one particularly<br />

impressive ring.<br />

The auction was hosted on 13 July and<br />

headlined by a ruby and diamond ring from<br />

Cartier which sold for $US7.3 million<br />

($AU10.6 million).<br />

The ring features an 8.3-carat Burmese ruby<br />

surrounded by white diamonds.<br />

Among the other notable items was a necklace<br />

with 43 jadeite beads and a diamond clasp,<br />

which was sold for $US6.4 million ($AU9.3<br />

million).<br />

Another necklace, this one by Harry Winston,<br />

featured 65.75 carats of Colombian emeralds<br />

paired with diamonds and sold for $US4.9<br />

million ($AU7.1 million).<br />

A pair of 15.7-carat heart-shaped, D-color,<br />

internally flawless diamonds sold for $US3.36<br />

million ($AU4.8 million), toward the upper end<br />

of the presale estimate.<br />

Sales from the auction totalled $US25.1 million<br />

($AU36.6 million).<br />

18ct Diamond & Precious Coloured Gemstone <strong>Jeweller</strong>y Collection<br />


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See our range at Stand C44<br />

International <strong>Jeweller</strong>y Fair<br />

<strong>August</strong> 27-29th

News<br />

MoonSwatch won't be available online<br />

Enthusiasts hoping to become owners of the Omega x Swatch Speedmaster<br />

Bioceramic MoonSwatch will still need to attend a store in-person, with a<br />

spokesperson confirming that online access will not be offered.<br />

In March of this year, the release of the Moonswatch collection caused<br />

mayhem outside of stores across the world, including in Melbourne<br />

and Sydney.<br />

The Moonswatch is the result of a collaboration between Omega<br />

and Swatch and was priced at $AU380 per watch. That retail price is<br />

dramatically cheaper compared with other Omega Speedmaster products,<br />

which list for more than $AU7,000.<br />

The watch collection offers customers the chance to own a timepiece close<br />

to the iconic Omega Speedmaster at a fraction of the cost. Online auction<br />

sites such as eBay quickly featured watches listed at more than five times<br />

the retail price following the launch.<br />

At locations in Melbourne and Sydney, lines formed in the early morning<br />

outside stores, however, due to the limited availability of the product,<br />

hundreds were left disappointed.<br />

Swatch Group CEO Nick Hayek has now confirmed that the watch will<br />

not be sold online, telling Fratello “There’s no emotion in online buying.”<br />

“It’s a carefully produced Swiss-made watch and not a commodity.<br />

“The MoonSwatch is not about to make as much money as possible in<br />

the shortest possible time period. So why should we sell it online?”<br />

Swatch has 110 retail stores worldwide.<br />

Hayek noted that after two years of pandemic restrictions, “it was about<br />

time to celebrate and to bring the people back on the streets, meet<br />

together, and revive the brick-and-mortar stores.”<br />

There are 11 models in the MoonSwatch collection representing the solar<br />

system, with each model designed after one planetary figure. Each planet<br />

from Mercury to Pluto is represented, as well as the Sun and Moon.<br />

According to a Swatch spokesperson, there is currently a shortage of<br />

Moonswatch products, with the company’s website attributing this to<br />

“overwhelming demand from Swatch fans all over the globe.”<br />

“We’re working around the clock behind the scenes to make the 11 unique<br />

watches and are replenishing our selected Swatch stores regularly with<br />

this special collaborative collection between Swatch and Omega,” the<br />

website reads.<br />

The statement noted the watches are not limited-edition timepieces,<br />

so consumers may be able to purchase them soon once stocks are<br />

replenished.<br />

Timeless Elegance<br />

The watch collection was launched on 26 March, with Australia being<br />

one of the first countries to launch the model ahead of the US and<br />

European markets.<br />

The watches are designed and modeled after the iconic Omega<br />

Speedmaster Professional Moonwatch, which was made famous after<br />

US astronaut Buzz Aldrin wore the watch during the 1969 mission to<br />

the Moon.<br />

Luxury Pearl and Opal <strong>Jeweller</strong>y<br />

enquiries@ikecho.com.au<br />

+61 2 9266 0636<br />


News<br />

Anniversary celebration: Reflecting on 60 years of Duraflex<br />

Duraflex Group Australia, one of Australia’s<br />

longest running jewellery industry suppliers<br />

celebrates 60 years in business this year.<br />

Throughout its operation the company has<br />

weathered many storms, from economic<br />

recessions and the global financial crisis to<br />

the more recent global pandemic.<br />

Anniversaries provoke not only celebration, but<br />

also reflection, and Duraflex Group Australia<br />

(DGA) managing director Phil Edwards told<br />

<strong>Jeweller</strong> it was a time to look back, as well as<br />

ahead.<br />

“We are a close-knit team and we are very<br />

proud of our company history,” Edwards said.<br />

“More than half the team have been with the<br />

business for 10 years or more and our current<br />

longest serving team member will celebrate<br />

25 years with us in 2023.<br />

“Our long-standing success in the industry is<br />

testament to our long-standing relationships<br />

with our retail partners. We’ve forged and<br />

fostered these relationships over many years.”<br />

Early days<br />

With a watch focus initially, Duraflex was founded<br />

in 1962 by Ron Kearns and while ownership has<br />

since changed hands the humble roots of the<br />

business are reflected in the name today – an<br />

amalgamation of “durable” and “flexible” - after<br />

watch straps.<br />

The business would eventually become the clear<br />

leader for local supply of said watch straps,<br />

before Ron Kearns partnered with his son Rod<br />

who expanded the business into the distribution<br />

of a limited range of jewellery.<br />

Duraflex Group's stand at IJF 2018.<br />

The next major change came in 2003, when<br />

Phil Edwards acquired the business from the<br />

Kearns family.<br />

Edwards said his immediate focus at the time<br />

was expanding Duraflex’s international brand<br />

distribution portfolio.<br />

“The strategic expansion of our business was<br />

essential,” he said.<br />

“The retail industry has transformed and shifted<br />

direction over the decades and our ability as<br />

a business to pivot and adapt and change and<br />

champion innovation has proved critical.<br />

“Working in close collaboration with retail<br />

partners and constantly adapting to their diverse<br />

business needs whilst striving to provide the<br />

best products, pricing and service possible –<br />

these points have always been the underpinning<br />

of our success.”<br />

Thomas Sabo<br />

The most significant of these brands would<br />

be launched three years later in 2006. The<br />

formation of a partnership with one little known<br />

European jewellery brand - Thomas Sabo -<br />

would dramatically change Duraflex’s status<br />

position in the local industry.<br />

Thomas Sabo was founded in 1984 and took<br />

more than two decades to gain international<br />

recognition as the trade remained fiercly<br />

divided between fine and fashion jewellery.<br />

DGA opted to launch the brand at the Sydney<br />

Trade Fair in <strong>August</strong> 2006 and in the early days,<br />

trading struggled to gain traction.<br />

It wasn’t until the Charm Club collection was<br />

launched in 2007 that popularity surged. Within<br />

seven years, Thomas Sabo would be held by<br />

more than 300 stockists across Australia and<br />

New Zealand.<br />

Edwards said that for DGA the success of the<br />

Thomas Sabo distribution partnership marked<br />

an evolution of the business.<br />

“It proved pivotal to DGA’s repositioning as<br />

a multi-branded distributor and certainly in<br />

hindsight was a defining moment," he said.<br />

"It was also defining moment for the industry<br />

and the development of the branded jewellery<br />

category in our local market. DGA is immensely<br />

proud to have been one of the leaders of the<br />

category expansion."<br />

Fast forward to <strong>2022</strong> and DGA distributes 16<br />

major international brands while remaining a<br />

fully Australian owned and operated business.<br />

More than 1,100 retail stores are supplied by<br />

the business, which remains based in<br />

Chatswood, Sydney.<br />

Pandemic<br />

Recent years have been far from smooth sailing<br />

for Australian retailers with the COVID pandemic<br />

throwing more than a few spanners in the<br />

works. Some impacts of the pandemic were<br />

immediately clear such as major disruptions<br />

to supply chains, a lack of direct access to<br />

customers and rises in job insecurity.<br />

Edwards said that simply surviving the<br />

Rod Kearns and Phil Edwards<br />

pandemic wasn’t the company’s aim – seeking a<br />

strengthened positioned was also important.<br />

“It all comes back to working in close<br />

collaboration with our retail partners by tailoring<br />

our services and support to directly assist their<br />

unique and individual business needs during any<br />

challenging period,” Edwards said.<br />

“For many, when the store doors were forced<br />

shut they opened up online, and we were there<br />

to assist by providing e-commerce and dropship<br />

solutions. For others, it was about weathering<br />

the storm together and preparing strategically<br />

for reopening with extra support where it was<br />

needed.”<br />

Duraflex Group's stand at IJF 2019.<br />

“We also recently redeveloped a new upgraded<br />

B2B Portal which is ready for launch. The aim is<br />

to enable our retailers to place orders with more<br />

efficiency and ease.”<br />

Over the past 60 years Duraflex has evolved<br />

from watch straps to European branded<br />

jewellery, a diamond range, and more recently<br />

Swiss watches.<br />

From here, Duraflex’s attention turns to the<br />

International <strong>Jeweller</strong>y Fair, beginning in Sydney<br />

on 27 <strong>August</strong>, where a distribution relationship<br />

with Swiss watchmakers Edox will be launched<br />

to a sea of eager buyers celebrating the first<br />

large-scaling industry gathering since 2019.<br />

34 | <strong>August</strong> <strong>2022</strong>


available in 9ct & 18ct gold and platinum<br />


+61 (08) 8352 1400 | sales@markmcaskill.com.au<br />


10 Years Ago<br />

Time Machine: <strong>August</strong> 2012<br />

A snapshot of the industry events making headlines this time 10 years ago in <strong>Jeweller</strong>.<br />

Historic Headlines<br />

4 Tiffany gets stamp on new metal<br />

4 High tech on show at jewellery fair<br />

4 Pandora launches new season collections<br />

4 Police close in on $3 million jewellery gang<br />

4 Sweet launch for Thomas Sabo diamond range<br />



“Building a customer base is an essential<br />

part of any business and regaining<br />

lost customers can be one of the most<br />

efficient ways of doing it.”<br />



Zamel’s guilty of misleading<br />

consumers – again<br />

The Federal Court has found that the <strong>Jeweller</strong>y<br />

Group, the company that operates Zamel's,<br />

misled consumers about the level of savings to<br />

be made during sales over an 18-month period.<br />

The Court found that Zamel’s, which at the time<br />

of the offences consisted of between 93 and 101<br />

stores, misrepresented the savings consumers<br />

would make from purchasing items during sales<br />

periods in respect of 44 jewellery items included<br />

across six Zamel’s catalogues and one flyer<br />

distributed by national letter box drop, instore<br />

and on Zamel’s website between November<br />

2008 and May 2010.<br />

Rolex and Harry Winston<br />

defend their brands<br />

Rolex and Harry Winston have both proceeded<br />

to take legal action against companies they feel<br />

have damaged the value of their brands.<br />

Watch giant Rolex is suing an American<br />

online, pre-owned watch retailer for allegedly<br />

breaching counterfeit laws.<br />

Melrose.com, which according to its own<br />

website sells restored luxury wristwatches,<br />

including pre-owned men’s and women’s<br />

Rolex watches, is being sued by Rolex for<br />

using counterfeit parts in the restoration of its<br />

watches. The Rolex lawsuit accuses Melrose.<br />

com of using counterfeit parts on its restored<br />

watches in a deliberate effort “to confuse and<br />

deceive the public”.<br />

The Los Angeles Times reported in early <strong>August</strong><br />

that Rolex is seeking an injunction to prohibit the<br />

online retailer from including counterfeit parts<br />

on Rolex watches or even from mentioning the<br />

brand on its website.<br />

<strong>August</strong> 2012<br />

ON THE COVER Maxum<br />

Editor’s Desk<br />

4What’s wrong with retail: “Over<br />

the next few days, I pondered these<br />

two shopping experiences. Abysmal<br />

customer service is nothing new, but<br />

it’s certainly odd that it remains at a<br />

time when consumers have a clear<br />

alternative.<br />

I mean, if retailers aren’t going to<br />

provide the human touch they regularly<br />

claim is one of their advantages, or if<br />

that human touch is unpleasant, then<br />

why bother?”<br />

Soapbox<br />

4To brand or not to brand : “With that<br />

in mind, I don’t believe brands need<br />

to be in competition with each other<br />

– they can be in the same store and<br />

have a relationship that compliments<br />

one another. In fact, I’d like to see a<br />

future with less competition and more<br />

collaboration.<br />

“Brands are born and die every day. To<br />

keep mine alive, I think I’ll give a little<br />

more daily thought to the people behind<br />

the store counter, the people parting<br />

with their hard-earned, and the people<br />

wearing and cherishing the Uberkate<br />

brand.”<br />

– Kate Sutton,<br />

founder and designer of Uberkate<br />

Pandora Australia bucks<br />

international trend<br />

Despite a significant drop in international<br />

revenue, Pandora’s sales figures in Australia<br />

last quarter indicate the brand is still going<br />

strong.<br />

Global jewellery giant Pandora may have<br />

experienced a group revenue decrease of 9.5<br />

per cent in the second quarter of 2012, but its<br />

Australian figures indicate Australians are<br />

still in love with brand’s charms.<br />

Pandora recorded a decrease in second<br />

quarter revenue of 2.2 per cent in Australia,<br />

comfortably outperforming the global<br />

Pandora figures, which Pandora Australia<br />

president David Allen was very pleasing to<br />

see.<br />

“Q2 was a very good quarter for us,” Allen<br />

said. “We were very pleased with the<br />

performance of our seasonal collection<br />

launched in March.<br />

Aussie brand succeeds in<br />

United Kingdom<br />

Men’s jewellery company Cudworth<br />

Enterprises has appointed a distributor for<br />

the United Kingdom and Ireland, and plans<br />

to expand further afield in the future.<br />

Southern hemisphere retailers seem to<br />

possess an almost insatiable hunger for<br />

European jewellery brands.<br />

Homegrown supplier Cudworth will be<br />

hoping that the trend can go both ways,<br />

however, and has announced a partnership<br />

with a UK-based distributor to sell its<br />

products to British retailers.<br />

36 | <strong>August</strong> <strong>2022</strong>



“We guarantee that you will be financially better off with Nationwide.”<br />

Colin Pocklington, Managing Director<br />

• NETWORKING • COST SAVINGS • Business Planning<br />


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Behind every gemstone,<br />

there is a fascinating story<br />

waiting to delight clients<br />

around the world. Studying<br />

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Passionately educating the industry, gem enthusiasts<br />

and consumers about gemstones

REVIEW<br />

Gems<br />

Pearls Part V: Examining the Exotics<br />

Above: Moussaieff; David Morris; Clogau<br />

Below: Kendra Scott; Amanya<br />

To the average consumer, or even the<br />

average jewellery sales assistant, pearls<br />

are often known to be gloriously lustrous,<br />

covered in glittering nacre, as close to<br />

white as possible, and aiming to be<br />

perfectly round.<br />

But pearls may take many forms, borne<br />

of a range of different sea creatures,<br />

whether bivalve or gastropod, nacreous<br />

or not.<br />

Abalone - including Paua - pearls are<br />

one of the better-known examples of<br />

exotic pearls, given their popularity<br />

and harvest in Australia’s neighbouring<br />

nation, New Zealand.<br />

A type of nacreous pearl, the most<br />

well-known Abalone variety displays a<br />

unique and highly recognisable multitude<br />

of blues, green, and brownish colours<br />

with high iridescence - the highest of the<br />

pearl-bearing molluscs.<br />

Abalones may be natural pearls, forming<br />

without human intervention of any kind,<br />

or cultured with the introduction of a<br />

shell seed.<br />

Natural Abalone pearls range greatly<br />

in size, from small seed pearls to large<br />

specimens of more than 70mm. These<br />

are often baroque in shape, and more<br />

rarely near round. The cultured blister<br />

pearls, however, typically range from<br />

9mm through to 20mm or so.<br />

These pearls form in the gastropod<br />

Haliotis, which differ from the more<br />

familiar pearl oysters in that they only<br />

have one shell and no pearl sac.<br />

The Haliotis Iris is also known as the Paua<br />

shell or rainbow Abalone, and is the largest<br />

species in New Zealand, with a maximum<br />

shell size of around 18cm.<br />

Other species include Haliotis fulgens,<br />

which produce green, blue and coppercoloured<br />

natural pearls with flecks of<br />

fuchsia; and Haliotis rufescens – a red<br />

abalone.<br />

Across each species, Abalone pearls are<br />

rarer than the more commonly known<br />

varieties of cultured nacreous pearl.<br />

For the gemmologist, characteristic<br />

identifying features of the various Abalone<br />

pearl species - besides their highly<br />

desired multicoloured orient - includes<br />

a botryoidal-like pattern on the surface<br />

at magnification, and a chalky greenishyellow<br />

fluorescent reaction under longwave<br />

ultraviolet lighting.<br />

Leaving nacre behind entirely, the<br />

conch pearl proves there is beauty and<br />

desirability in the organic nature of pearl<br />

production, regardless of shine. Queen<br />

conch pearls are a very rare gem that has<br />

long been desired throughout history.<br />

It is believed conch pearls have enjoyed<br />

a rich history alongside their nacreous<br />

counterparts, even symbolising a channel<br />

of communication with gods of the sea<br />

amongst the Inca peoples.<br />

These white to brownish, salmon to pink<br />

pearls are produced in the Lobatus gigas<br />

mollusc (formally Strombus gigas) across<br />

the Caribbean.<br />

What these pearls lack in traditional<br />

Abalone Pearl<br />

Produced by the<br />

haliotis, haliotis iris,<br />

haliotis fulgens, haliotis<br />

rufescens<br />

Colour: Multiple<br />

Found in: Australia, New<br />

Zealand, South Africa,<br />

Japan, North America<br />

Mohs Hardness: 3.5<br />

Lustre: Intense<br />

Formula: CaCO ³<br />

pearl lustre, they more than make up<br />

for in the highly sought-after orangish<br />

pink colours and a captivating porcelainlike<br />

lustre. Conch pearls also feature<br />

a distinctive flame-like structure that<br />

imparts a silky appearance.<br />

Typically, these pearls are baroque in<br />

shape and most often between 3mm<br />

and 8mm, with sizes surpassing<br />

13mm being rare.<br />

The approximate estimate of the<br />

occurrence of gem-quality conch<br />

pearls is one pearl in every 50,000<br />

queen conch shells.<br />

Pearls, in general, are always on the<br />

more delicate side of gemstone choice,<br />

and in the case of exotic pearls there<br />

may be some extra precautions to take<br />

to ensure your treasures last a lifetime.<br />

Abalone pearls are often hollow and<br />

therefore fragile; handle gently. Conch<br />

pearls, on the other hand, may fade or<br />

change colour if exposed to x-rays or<br />

to sunlight over long periods of time.<br />

Care should always be taken in both<br />

cleaning and storing these organic gems.<br />

Mikaelah Egan FGAA Dip DT<br />

began her career in the industry at<br />

Diamonds of Distinction in 2015. She now<br />

balances her role at the Gemmological<br />

Association of Australia with studying<br />

geology at the University of Queensland.<br />

Visit instagram.com/mikaelah.egan<br />

For more information on gems and<br />

gemmology ,go to www.gem.org.au<br />

<strong>August</strong> <strong>2022</strong> | 39

AUGUST 27 – 29, <strong>2022</strong><br />

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Retail Pricing Guide<br />

Pricing doesn't matter<br />


Fundamentally sound product pricing is crucial to the success of a retail jewellery business.<br />

SAMUEL ORD explores the application of common strategies, and weighs the pros and cons of each.<br />

As a small business, how do you set the<br />

appropriate price for a product?<br />

That’s a question that every retailer should be able to<br />

answer. Product pricing is an element of trade that will<br />

make or break any business.<br />

Surprisingly, this is an area in which many retailers report<br />

a lack of confidence.<br />

According to a recent study published by Retail Systems<br />

Research, a US market intelligence company, there is a<br />

notable difference in the way successful and unsuccessful<br />

retailers view pricing strategy.<br />

The study defined ‘winners’ as retailers with a sales growth<br />

exceeding 4.5 per cent, and ‘losers’ as retailers who fail to<br />

meet that average number.<br />

The study concluded that just 64 per cent of the winners<br />

consider themselves satisfied with their capabilities when<br />

it comes to accurately pricing products.<br />

According to the study, 67 per cent of the winners said<br />

pricing optimisation was “absolutely vital”. Only 42 per cent<br />

of the losers agreed. None of the winners surveyed agreed<br />

with the suggestion that no price optimising tools were<br />

required for a business.<br />

Bizarrely, two per cent of the losers agreed with that<br />

sentiment! Perhaps that’s not so bizarre, considering their<br />

categorisation.<br />

Brian Kilcourse, managing director Retail Systems<br />

Research, says the study confirmed the importance of<br />

correct pricing for retailers.<br />

“In the end, retailers should know that closing the pricing<br />

readiness gap is now a critical component of overall retail<br />

strategy,” he says.<br />

“It is clear that in order to win, precision pricing is a musthave,<br />

not a nice-to-have.”<br />

Another recent survey by web data platform Bright Data<br />

suggested that consumers are increasingly fixated on price.<br />

When asked which factors typically influence their<br />

purchase decisions when shopping online, 82 per cent<br />

of respondents said price. In addition, 74 per cent of<br />


Consumer<br />

Behaviour<br />

#1<br />

driver of customer<br />

satisfacton for<br />

Gen Z consumers<br />

is pricing.<br />

75%<br />

of Gen Z and<br />

Millenial<br />

consumers consult<br />

at least one other<br />

digital resource<br />

before making<br />

a significant<br />

purchase.<br />

#2<br />

driver of customer<br />

satisfaction for Gen Z<br />

consumer was digital<br />

experience.<br />

47%<br />

of all consumers prefer<br />

to engage with retailers<br />

by visiting a brick-andmortar<br />

store.<br />

Source: Verint<br />

respondents said they would switch from their usual<br />

retailer if they found a better price elsewhere.<br />

Find the balance<br />

What is not commonly known is that there are more than<br />

20 different methods or strategies of price setting. (See<br />

below) Some can, or should be, used for specific activites<br />

and/or events.<br />

In many ways, product pricing is like walking a tightrope:<br />

Success in the pursuit of the appropriate pricing strategy<br />

comes down to a balancing act, avoiding the extreme<br />

pitfalls of failure on either side.<br />

If the calculations are incorrect and the product is priced<br />

too low, the long-term impact is dire. Low pricing may not<br />

generate sufficient profit to cover costs, especially in the<br />

event that sales volume is down.<br />

In the end, retailers should know that closing the<br />

pricing readiness gap is now a critical component<br />

of overall retail strategy.<br />

Customers are likely to fear that your product is inferior<br />

to those offered by competitors if your product is notably<br />

cheaper. Many customers are looking for value above cost,<br />

after all.<br />

Additionally, a retailer who sets a price too low is sending<br />

a simple message to the rest of the market “our product<br />

isn’t as good as similar products on the market, and thus,<br />

is worth less.”<br />

The perils of over-pricing are obvious. Sales volume will<br />

drop as customers favour competitors with less expensive<br />

products.<br />

While the endgame in business is to produce profit, when<br />

it comes to product pricing, this messaging or signalling is<br />

just as important. Price setting is communication.<br />

A luxury vehicle manufacturer such as Ferrari won’t drop<br />

the price of a car simply to match the prices offered by a<br />

major manufacturer such as Toyota.<br />

The way a product is priced is a message regarding the<br />

<strong>August</strong> <strong>2022</strong> | 41

S E CUR E<br />

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Retail Pricing Guide | FEATURE<br />

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value of that product, and when a retailer makes a product too<br />

cheap you’re cheapening the brand of the business in the process.<br />

Tough task for jewellers<br />

Establishing the correct pricing strategies can be more<br />

challenging in the jewellery industry for a range of reasons,<br />

including issues of transparency on the factors that go into<br />

calculating the final value of a product.<br />

S A F E<br />

S ECU R E<br />

NON-S LIP<br />



Nationwide <strong>Jeweller</strong>s represents more than 500 independent jewellery<br />

stores across Australia and New Zealand. Managing director Colin<br />

Pocklington says educating members on the importance of precision<br />

in pricing became a major focus many years ago.<br />

“Around 20 or so years ago we recommended to all members that<br />

they implement a higher pricing strategy,” he says.<br />

“This was in response to increased operating cost, specifically with<br />

rent and labour as a percentage of sales.<br />

“A pricing strategy needs to be based on the businesses financial<br />

model, so that the resultant gross margin percentage will result in<br />

a gross profit percentage that is within industry benchmarks, and<br />

importantly, after covering all overheads provides a profit before tax [as<br />

a percentage of sales] that will give an adequate return on investment.<br />

Pocklington says that since education around product pricing<br />

became a priority, Nationwide has explored options for best<br />

communicating the information with members.<br />

“Our benchmark surveys revealed that many members were not<br />

achieving an adequate profit as a percentage of sales. “We also<br />

introduced our Repair Price Book, as the vast majority of members<br />

were not charging enough on repairs,” he explains.<br />

“Prices in the book are ‘scientifically’ calculated and based on<br />

labour and material costs, and the number of minutes required for<br />

each type of repair. We issue a new book about every two years, or<br />

annually if needed, based on changes to material or labour costs.”<br />

So, with the importance of accurate product pricing firmly underlined,<br />

it’s time to explore some of the most valuable strategies.<br />

Cost-based pricing<br />

Cost-based pricing is by far the most common strategy employed<br />

by retailers. It’s a tactic that is easy to implement and given a<br />

healthy sales volume, all but guarantees a profit.<br />

A retailer calculates the total expenses associated with operation,<br />

including direct material cost, direct labour cost, and other<br />

overheads, and then adds an additional percentage to the final<br />

sales price to ensure that a profit is returned.<br />

Competera contributor Vladimir Kuchkanov explains “such a<br />

pricing strategy ensures that a company receives a profit margin<br />

that meets the anticipated rate of return.”<br />

“Cost-based pricing is widely used because of its simplicity and<br />

the degree of information required to anticipate the profit.<br />

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At this point, cost plus pricing is better than value-based pricing<br />

in cases when the data on costs and demand cannot be obtained<br />

easily. Experts label cost-based pricing as one of the most rational<br />

approaches toward profit maximisation.”<br />

Cost-based pricing is not only easy to implement, but it’s also easy<br />

for customers to understand. There are a number of important<br />

disadvantages associated with the practice, however.<br />

Cost-based pricing fails to factor in the pricing of<br />

competitors, and if a competitor is producing the same<br />

product at a cheaper cost, that competitor will generate<br />

more profit in the long term.<br />

Cost-based pricing fails to factor in the pricing of competitors, and<br />

if a competitor is producing the same product at a cheaper cost,<br />

that competitor will generate more profit in the long term.<br />

In the same vein, consumers may be willing to pay more than a minor<br />

percentage increase for a particular product, such as luxury watches.<br />

If a product is mispriced, profit may be missed by a retailer or a<br />

store may be viewed consumers as having an inferior product by<br />

selling a product at a far cheaper rate than that of competitors.<br />

Premium pricing<br />

The premium pricing strategy is centred on communicating the<br />

message that a retailer’s product is superior to those offered by<br />

the competition.<br />

Implementing premium pricing is simple. Retailers assess<br />

the market and their direct competitors and then price similar<br />

products higher.<br />

The aim of premium pricing is two-fold – as a retailer offering the<br />

most expensive price, customers may infer that product is of the<br />

highest quality compared with its cheaper counterparts.<br />

In a scenario where two retailers have matching sales volume over<br />

a similar product, the retailer implementing premium pricing will<br />

have superior profit.<br />

Jim Woodruff, Small Business Chron, says half-hearted<br />

commitment to premium pricing will end in disaster.<br />

“While it's natural to focus on and point out the weaknesses of<br />

the competition, companies have more success with premium<br />

pricing when they concentrate on creating value that makes their<br />

products worth the higher prices,” he says.<br />

“Establishing a product with a high-priced image takes time,<br />

money, and the efforts of everyone in the business. The entire<br />

marketing program must project high quality, and the consumer<br />

must be convinced that the product is worth every penny.”<br />

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Retail Pricing Guide | FEATURE<br />

Loss leader pricing<br />

Hoping to attract new customers to your store? A loss<br />

leader strategy could be an option, at various times.<br />

Loss leader pricing is a marketing strategy in which<br />

products are sold at a retail price set lower than the<br />

wholesale price in order to attract new customers to a store.<br />

The hope for retailers who employ loss-leading practices<br />

is that once a customer is in a store, they will be enticed to<br />

purchase additional products which are not priced below<br />

wholesale price.<br />

The most popular example of loss leading is supermarkets<br />

selling milk. Milk as a product rarely generates profit for<br />

supermarkets, however with fridges commonly located at<br />

the rear of a store, customers are exposed to products that<br />

do generate a profit while inside.<br />

Deal Avo writer Aleksandra Holownia, says “the<br />

assumption behind this strategy is quite straightforward.<br />

“Some companies try to lure customers with prices for<br />

specific products that are irresistibly low. This way, at least<br />

according to their thinking, customers will more eagerly<br />

walk in the store and buy more products, including those<br />

that have normal prices.”<br />

Keystone pricing<br />

Another common strategy that aims to simplify the sales<br />

process is keystone pricing.<br />

Keystone pricing is a simple equation, with a retailer<br />

setting the price of a product at exactly double the<br />

wholesale price.<br />

Simplicity isn’t the only advantage that comes with this<br />

approach, as keystone pricing also offers a high-profit<br />

margin and flexibility in range if minor adjustments needs<br />

to be made at a later date.<br />

Matt Ellsworth, Act On Intelligence, says it’s a common<br />

approach for retailers with a new product and little<br />

background on the market.<br />

“The most common use of keystone pricing is when a<br />

retailer brings a new product to its shelves,” he says.<br />

“Without historical pricing data on the item, it’s hard to<br />

know the ideal sales price you should launch with.<br />

“That’s where keystone pricing comes in. By doubling the<br />

wholesale cost and setting your initial sale price at that<br />

level, you can generally get some kind of profit margin,<br />

while gathering data on how customers reacted to the<br />

initial price.<br />

“If you find that customers aren’t buying at the markup<br />

level, you can use markdowns and discounts until the<br />


Consumer<br />

Profile<br />

64%<br />

of retail executives<br />

believe consumers<br />

are willing to<br />

spend more in<br />

<strong>2022</strong>, but need to<br />

rely on credit or<br />

Buy Now Pay Later.<br />

68%<br />

of retail<br />

executives expect<br />

consumers to<br />

favour businesses<br />

with strong<br />

"environmentally<br />

friendly" focuses.<br />

70%<br />

of retail executives<br />

believe that<br />

growth in <strong>2022</strong><br />

will be hampered<br />

or disrupted<br />

by employee<br />

shortages.<br />

58%<br />

of retail executives<br />

believe inflation<br />

presents an<br />

opportunity to<br />

improve margins<br />

and take price.<br />

Source: Deloitte<br />

selling price is more in line with customer expectations.<br />

Likewise, if your sales volume is extremely high at launch,<br />

you could raise the selling price to increase your margin.”<br />

There are a number of retail scenarios where keystone<br />

pricing is inappropriate. Keystone pricing suffers in that<br />

it doesn’t factor in prices used by the competition, and if<br />

other stores are notable less expensive, customers may<br />

be driven away.<br />

Competitive pricing<br />

A competitive pricing strategy is a process of selecting<br />

price points for products based on competitor pricing<br />

in a particular market or niche.<br />

Retailers who utilise competitive pricing move away from<br />

pricing based on business costs or profit targets. The<br />

competitive pricing strategy incorporates three other<br />

pricing strategies – premium pricing, loss-leading pricing,<br />

and equalling pricing in one, all-encompassing strategy.<br />

Establishing a product with a high-priced image<br />

takes time, money, and the efforts of everyone<br />

in the business.<br />

When a retailer commits to competitive pricing, they will<br />

lower the prices of products to undercut competitors<br />

on some products, while also raising the price of other<br />

products to establish a premium or prestige brand.<br />

The third aspect of premium pricing is price-matching –<br />

offering customers a discount to match the price offered<br />

by a competitor.<br />

Profit Well contributor Vivian Guo, says competitive pricing<br />

is difficult to get wrong. “It’s rare to royally screw up using<br />

this form of pricing,” Guo says.<br />

“If you have a fairly solid grasp on your product’s quality, target<br />

audience, and cost of production, this method will most likely<br />

never lead to bankruptcy. It’s kept your competitors afloat, so<br />

similarly, it should do the same for you.<br />

“In saturated industries like retail, competitor-based<br />

pricing can be fairly accurate. After all, for most consumer<br />

products there are millions of customers and enough data<br />

to move pricing closer towards a methodology based on<br />

market price and market share.”<br />

Recommended Retail Price<br />

Recommended retail price (RRP), also known as<br />

manufacturer suggested retail pricing (MSRP), is a strategy<br />

commonly used by car dealers, while retailers of other<br />

high-priced goods such as appliances, electronics, and<br />

jewellery also employ the approach.<br />

44 | <strong>August</strong> <strong>2022</strong>

Watch: Daintree<br />

As the name suggests, a RRP is provided to a retailer by the<br />

manufacturer or supplier of the product. The price is supposed<br />

to reflect the costs incurred during production and sales.<br />

The use of the RRP strategy is effective at reducing inventory and<br />

generating sales in a sluggish economy. Some retailers offer prices<br />

at or below RRP as a part of clearances.<br />

The downside to the strategy is a conflict with the theory of<br />

competition. RRP also passes on the responsibility of pricing to<br />

an external party, while the consequences for error will only be<br />

experienced by the retailer in most circumstances.<br />

Without historical pricing data on the item, it’s hard<br />

to know the ideal sales price you should launch with.<br />

James Gordon, The Business Professor, says establishing<br />

uniformity in the prices of products from store to store is an<br />

important part of the process.<br />

“Although such standardised prices ensure that consumers do not<br />

have to overpay for the goods purchased, several retailers actually<br />

sell products for lower prices than the MSRP [RRP],” Gordon says.<br />

“This is typically done to move inventory from the shelves during<br />

periods of slow sales or as part of competitive pricing strategies<br />

aimed at outdoing the prices offered by competing retailers.<br />

“Since retailers usually purchase products from [suppliers] at<br />

wholesale prices that are well below the MSRP, it is possible to<br />

offer huge discounts on the listed prices and still turn a profit.”<br />

Penetration pricing<br />

Penetration pricing, as the name suggests, is a marketing strategy<br />

that aims to attract new customers to a product or service.<br />

Retailers offer lower prices than those offered by competitors –<br />

sometimes accepting an initial loss – in exchange for engaging<br />

with a new demographic.<br />

Implementation is simple for retailers, beginning by researching<br />

the prices offered by competitors, and adjusting prices in-store to<br />

undercut the competition. The aim of the strategy is to build market<br />

share with the hope of retaining customers once prices<br />

are eventually raised to generate profit.<br />

Francesca Nicasio, writer for Vend, says that switching brands isn’t<br />

a popular practice for consumers and that penetration pricing can<br />

encourage a transition.<br />

“90 per cent of people consider themselves equally [brand] loyal or<br />

more [brand] loyal than they were a year ago. For new brands or<br />

companies releasing new products, this isn’t good news,” she explains.<br />

Nicasio continues by explaining that this issue is exacerbated for<br />

small business that find themselves in competition against large<br />

chain stores and international corporations.<br />

(02) 9417 0177 | www.dgau.com.au

Retail Pricing Guide | FEATURE<br />

4.55 CTS OF PAVÉ RUBIES,<br />





Absorption pricing<br />

Price is determined by adding unit variable cost to the overhead and<br />

managing costs and dividing by the amount of product units.<br />

Competitive pricing<br />

A process based on flexibility, with prices adjusted higher or lower<br />

based on competitor pricing in certain markets.<br />

Cost-based pricing<br />

Direct material and labour costs, as well as overhead costs, are<br />

combined and added to a mark-up percentage to generate profit.<br />

Skimming<br />

Price is raised so that fewer sales are required to break even.<br />

Strategy targets early endorses of a product, usually used to rapidly<br />

recover investment in product development.<br />

Decoy pricing<br />

Retailer offers a minimum of three products. Two of the three<br />

products will be similarly priced and relatively expensive, the third<br />

will be notably cheaper. This tactic drives customers to disregard<br />

the cheaper product is inferior and choose between the two more<br />

expensive options.<br />

Freemium<br />

Retailer offers a product for free but charges a premium for<br />

advanced features, functionality or for related products and<br />

services.<br />

High-low pricing<br />

Pricing differs between walk-in customers and those who join a<br />

loyalty program. Loyalty program members receive promotions<br />

such as coupons offering lowered prices.<br />

Keystone pricing<br />

Retail price is determined by doubling the wholesale price.<br />

Loss leader<br />

A product is sold by a retailer below cost in order to entice<br />

customers to the store and purchase items priced to produce profit.<br />

Marginal-cost pricing<br />

A product price is set at or, slightly above, the marginal cost of<br />

production. Used by businesses during times of poor sales.<br />

Odd-Even pricing<br />

A psychological strategy relating to the way odd and even numbers<br />

are perceived by customers relating to price sensitivity. Price<br />

sensitive customers prefer products to be priced on odd numbers.<br />

Customers unbothered by price prefer items priced at an even<br />

number.<br />

Pay What You Want<br />

Pay What You Want (PWYW) is a system where buyers are given<br />

the chance to pay whatever price they deem the product to be<br />

worth. Has been used previously by musicians and artists.<br />

Penetration pricing<br />

Price is set particularly low in order to generate first-time<br />

customers in a new market. Price is raised once market<br />

share is seized.<br />

Predatory pricing<br />

Predatory pricing is the practice of undercutting specific<br />

competitors in a bid to drive a rival business out of a market.<br />

Premium decoy pricing<br />

A retailer sets the price of one product artificially high in order to<br />

promote the sale of a second comparable product which has been<br />

performing poorly.<br />

Premium pricing<br />

A product is priced high in order to maintain reputation. Customers<br />

infer that based on price alone, the product is high quality.<br />

Price discrimination<br />

Prices are set differently for the same product in alternative<br />

markets. Business may pursue this practice based on different<br />

circumstances, such as location.<br />

Price leadership<br />

Rarely a deliberate strategy and more of market observation.<br />

Dominant products tend to influence the price being set for inferior<br />

products.<br />

Psychological pricing<br />

A catch-all term used to describe pricing strategies that relate to<br />

subtle manipulation of customers, such as odd/even pricing.<br />

Recommended retail pricing<br />

Recommended retail pricing is provided by the manufacturer or<br />

supplier of the product. The price reflects the costs incurred during<br />

production and sales.<br />

Target pricing business<br />

Tactic in which the selling price of a product is calculated with the<br />

aim of generating a rate of return relating to a prior investment.<br />

Time-based pricing<br />

Prices are finely tuned based on customer spending habits at<br />

different times of the day and week. Prices are raised or lowered for<br />

a product in order to maximise sales, usually an automated online<br />

practice.<br />

Time-sensitive pricing<br />

Pricing tactic implemented on products with a short shelf life. While<br />

perishables like food are an obvious example, retailers may use<br />

time-sensitive pricing to make the most of a trend or fad, before<br />

lowering the price once popularity wanes in order to clear inventory.<br />

Value-based pricing<br />

Price is determined by a retailer based on the estimated value of the<br />

product to a customer, rather than in relation to production costs.<br />

Variable pricing strategies<br />

Includes the total cost of all variable characteristics associated with<br />

the production of a product.<br />

Yield management strategy<br />

An all-encompassing pricing philosophy which values the buying<br />

behaviour patterns of customers, environmental factors and market<br />

price to successfully secure the most profit.<br />

46 | <strong>August</strong> <strong>2022</strong>

FEATURE | Retail Pricing Guide<br />

“It’s hard to bet on new entrants when you’ve<br />

been using the same products from longstanding<br />

brands. Penetration pricing provides<br />

a solution to both problems.”<br />

Penetration pricing has some immediate and<br />

obvious shortfalls for jewellery retailers.<br />

Unsuccessful attempts at gaining more<br />

market share can lead to insufficient funds for<br />

business operations long-term, as well as lost<br />

opportunities with customers who associate<br />

higher prices with higher quality products.<br />

Penetration pricing is commonly used by<br />

supermarkets, streaming services, hotels,<br />

and banks.<br />

Weighing it up<br />

While the pricing strategies listed above are all<br />

important, there are many more to choose from.<br />

When it comes to selecting the right pricing<br />

strategy, it’s important to start by setting targets<br />

that are both measurable and attainable.<br />

With those in place, you can then perform<br />

market research, determining what methods<br />

your competitors are using and what degree of<br />

success they’re having.<br />

That kind of information won’t be readily<br />

available, but can be gleaned by speaking<br />

with customers and analysing how they view<br />

competitor pricing.<br />

With targets in mind, knowledge of how your<br />

competitors are approaching pricing, and an<br />

understanding of how customers perceive the<br />

market, a retailer is then ready to weigh up the<br />

pros and cons of different pricing strategies and<br />

determine which one best suits the market.<br />

It’s hard to bet on new entrants when you’ve<br />

been using the same products from<br />

long-standing brands.<br />

Edge Retail Academy provides highly specialised<br />

consulting services to US, Australian and New<br />

Zealand retail jewellers. David Brown, president<br />

and <strong>Jeweller</strong> contributor, says involving an outside<br />

perspective can improve the pricing process.<br />

“In my experience, the biggest barrier to<br />

business owners setting the correct price is<br />

their own mindset,” Brown says.<br />

“In many cases, items are set lower than<br />

they could be because of assumptions and<br />

expectations the owner held.<br />

“The business owner put up barriers that aren’t<br />

necessary. Often the most successful pricing<br />

strategies are the ones set by other people who<br />

don’t have an emotional ‘buy-in’ to the decision.<br />

One of the most effective ways of pricing is to ask<br />

someone who has no knowledge of the cost of<br />

the item to tell you what they think it is worth.<br />

Brown continues: “Again, this has often led<br />

to higher pricing policies than a ‘cost-plus’<br />

mentality, especially where the staff are involved<br />

and don’t know the inputs. At the end of the day,<br />

they are the ones who will be selling it!”<br />

Just as there are different horses for different<br />

courses, there are different pricing strategies<br />

for different businesses.<br />

In the same way that sending a champion<br />

thoroughbred to an unsuitable racetrack could<br />

end in disaster for all involved, so will adopting<br />

the wrong pricing strategy for a retailer.<br />

Every retailer has it’s own unique factors and<br />

quirks and failing to take them into consideration<br />

when pursuing the correct pricing strategy is<br />

opening the door to a nasty dismount!<br />

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47<br />

1/4 PAGE BLOCK<br />


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Internal Business Development<br />

The three forms<br />

of<br />


With uncertainty on the horizon, the time has come for retailers to plan for ways to promote internal growth.<br />

DAVID BROWN shares three important approaches to promote improvement from within a business.<br />

In the world of business, it’s not enough to simply<br />

succeed once. Businesses must constantly reinvent,<br />

recreate and rejuvinate in order to maintain<br />

relationships with existing customers and forge new<br />

partnerships with the customers of tomorrow.<br />

US actress Lauren Bacall once said that “standing still is the<br />

fastest way of moving backwards in a rapidly changing world.”<br />

That’s an important concept small business must keep in<br />

mind heading into the second half of <strong>2022</strong> and beyond.<br />

If you’re familiar with my work, you’ll know that I’m a fan of<br />

the 80/20 principle. It’s the art of concentrating resources in<br />

the 20 per cent of your business that can lead to 80 per cent<br />

of the improvement in results.<br />

There are many facets to business including marketing, staff<br />

management, and sales development just to name a few.<br />

What each of these areas have in common is that they can<br />

be reliant on the actions of other people, such as advertisers,<br />

sales staff and customers.<br />

While each have their own 80/20 areas that represent a<br />

worthwhile concentration of time and energy, business should<br />

at first concentrate resources in areas where you can have<br />

complete control of the outcome.<br />

In digging through the monthly store performance data, there<br />

are three key areas that I feel every business should review<br />

and seek to improve. The beauty of each of these areas is<br />

it’s easy, through comparative data, to see how your store is<br />

performing against others.<br />


Deep Dive<br />

60%<br />

of retailers believe<br />

new product ranges<br />

should be the most<br />

important focus to<br />

boost sales.<br />

72%<br />

of retailers<br />

highlight<br />

shipping costs<br />

as having a<br />

material impact<br />

on their input<br />

costs<br />

90%<br />

of retailers<br />

believe training<br />

conditions will<br />

improve (or<br />

stay the same)<br />

during <strong>2022</strong>.<br />

Source: Deloitte<br />

The areas that you can control while having some of the<br />

biggest impacts on your results are mark up, old product,<br />

and controlled buying.<br />

Markup<br />

Pressure to generate sales and achieve sales targets often<br />

results in a decrease in markup. After all, if it costs the customer<br />

less they will buy more or say purchase quicker, right?<br />

Wrong!<br />

Take a look at other retail stores that have advertised<br />

themselves as being the cheapest and count how many<br />

of those are still trading.<br />

The price-conscious customer has no loyalty. Remember<br />

that the more sales you discount, the more you teach your<br />

customers they shouldn't pay the ticketed price.<br />

If being the cheapest was the answer then our shopping<br />

centres would be crowded with identical stores selling on<br />

price and high-end product would not have a marketplace<br />

anymore, and yet we see a constant growth in new high-end<br />

fashion brands all the time.<br />

That doesn’t mean you don’t discount to get sales, just pick<br />

the battles that you can win. The older the item, the happier<br />

you should be to offer a discount.<br />

Items that have good markups, such as those with a greater<br />

than 200 per cent markup, have some inbuilt ‘head room’ to<br />

negotiate with and still produce the sales your business needs<br />

to generate enough profit.<br />

<strong>August</strong> <strong>2022</strong> | 49

News<br />

Internal Business Development | FEATURE<br />

xxx<br />

Xxxx<br />

Review your past three months of sales and look at the markup achieved<br />

on F-Fast sellers, fast sellers and old product.<br />

If you have access to group comparison data you should be able to see<br />

how you compare to your group average in your KPI report. Are you behind<br />

or ahead of it? Look at your three-year comparison – is your markup<br />

static or slipping?<br />

1/2 PG V<br />


Bear Grylls Survival<br />

3720 Sea series<br />

Now may be the right time to review what markup that you need to<br />

achieve to run your business. That is a key metric that you should review<br />

at least every six months as the market and trading conditions are<br />

continually changing around you.<br />

It is critical that you know, at all times, when you are above or below that<br />

markup figure. Reviewing that information at the end of the financial year<br />

is too late to do anything about it.<br />

Knowing this, you can project sales targets that give you the money<br />

required to run your business. You can also formulate and monitor the<br />

pricing of stock as it goes into your system.<br />

The breadth and importance of this topic cannot be covered in these<br />

few words but it is a starting point to driving this area of your business<br />

forward.<br />

Above all don’t let your own attitude be the handbrake on developing your<br />

mark up. On average, customers will pay more for products and services<br />

than business owners believes.<br />

xxxx<br />

Give your customers the chance to prove it!<br />

Xxxx<br />

Old product<br />

I mentioned above that it was best to focus on parts of the business with<br />

which we could have complete control.<br />

Most retailers understand this when it comes to markup. You can choose<br />

what price you put on an item, and what price you want to sell it for.<br />

For many, however, old product is viewed in a different light. Sadly, many<br />

retailers don’t see old product as something they can control. After all, they<br />

argue, they can’t force customers to make purchases at the end of the day.<br />

What these retailers neglect to understand is the extent to which a<br />

passive approach causes old product to age. You have a choice in how<br />

long an item stays within your inventory.<br />

Let’s test this theory. Find a sample of old items from one department,<br />

mark them down to $1 each and put them in the front window. Let me<br />

know what’s left at the end of the week.<br />

Reading this it’s easy to think I’m being a little flippant and I don’t<br />

recommend you take every item that hasn’t sold in the last twelve<br />

months and give it away.<br />

(02) 9417 0177 | www.dgau.com.au

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Internal Business Development | FEATURE<br />

Stock that is still technically<br />

‘new’, less than 180 days old,<br />

can rapidly become old. To get a<br />

clearer picture of this concept,<br />

produce a stock-by-age report<br />

and organise by department to<br />

see the number of units involved.<br />

The point I’m making is that you choose to<br />

accept whether an old product stays within the<br />

store or not. If you really needed to you, always<br />

have the option of reducing the price to $1 and<br />

moving it quickly.<br />

That’s the real lesson here – you have control.<br />

For retailers, feeling in control of what happens<br />

within a business is directly related to the<br />

success and profit a business generates.<br />

It’s the reason why many people start their own<br />

business; the pursuit of feeling in control of the<br />

decision-making process. A business owner can<br />

choose whether they go to work or not. Feelings<br />

of freedom in business come from control.<br />

Old stock creates a number of issues. These<br />

include capital becoming tied up, displays<br />

looking tired and cluttered, and customers<br />

possibly perieving a business as out of touch<br />

with current market trends and fashions.<br />

Old stock can also cause issues for sales staff,<br />

who feel demotivated by a stagnant environment.<br />

It’s important to compare your sales-to-stock<br />

ratio. In the past 12 months, there are fewer than<br />

two, then potentially there is an old stock issue.<br />

If you look at this figure for each department,<br />

you’ll gain a better understanding of how<br />

widespread the issue is.<br />

I suggest using the 12-month column to<br />

dilute any possible one-off impacts, such<br />

as an unusually slow month in any specific<br />

department.<br />

The age of stock is also important. Stock that is<br />

still technically ‘new’, less than 180 days old, can<br />

rapidly become old. To get a clearer picture of<br />

this concept, produce a stock-by-age report and<br />

organise by department to see the number of<br />

units involved.<br />

With so many retail sectors flooding the market<br />

with ‘sales’ the traditional once-a-year attack on<br />

old product may not produce the same results it<br />

once did.<br />

Certainly, retailers should still do this at the time<br />

of year when they have achieved the best results,<br />

it’s important to continuously chip away at old<br />

stock to get the best traction.<br />

There are many strategies business owners can<br />

employ to slowly, but surely, clear this inventory.<br />

One approach may be a manager’s special<br />

cabinet, and another is paying incentives to sales<br />

staff for clearing a specific product.<br />

For retailers, feeling in control of what<br />

happens within a business is directly related<br />

to the success and profit a business generates.<br />

Additionally, retailers may talk with the suppliers<br />

of certain stock at the next buying group meeting<br />

concerning stale inventory.<br />

The starting point, however, is understanding<br />

that you have control over the fate of old product<br />

at all times.<br />

Controlled buying<br />

For many, one of the most enjoyable aspects of<br />

owning and operating a store is the chance to<br />

buy new product.<br />

Thankfully, you aren’t dealing with plastic bags<br />

or masking tape. Rings, watches and jewellery in<br />

general are fun things to buy and sell.<br />

This enjoyment can be an Achilles heel for<br />

some businesses, however. Many customers<br />

experience a rush of adrenaline when making<br />

a purchase, and it can be a similar experience<br />

for retailers, with the added justification of the<br />

purchase being for a business.<br />

Controlling the urge to purchase, and ensuring<br />

that you are buying for the right reasons, can be<br />

one of the most difficult areas of self-control for<br />

any store owner. The better control exerted by an<br />

owner the more effective a business will become.<br />

A well-reasoned buying plan must be tailored<br />

with a number of factors in mind. During the<br />

developing of a buying plan, the following<br />

questions should be kept in mind:<br />

• Debt reduction: Are you managing your cash<br />

flow in order to reduce outstanding loans or<br />

accounts?<br />

• Inventory turnover: Are the current product<br />

levels appropriate for needs of the business<br />

right now?<br />

• Diversity: Is the mixture of product<br />

conducive to reaching sales targets? Are there<br />

any balance issues that need addressing?<br />

• Increasing average retail: Does the level of<br />

product reflect overall sales targets?<br />

• Restocking: Have you replaced inventory of<br />

proven sellers?<br />

There’s a simple formula retailers can stick with<br />

- purchases (stock in) must be less than cost<br />

of sales (the original cost of the goods you have<br />

sold) for any measured period of time.<br />

Businesses must spend less on replacement<br />

product than the value of what is sold. If this<br />

continues indefinitely you will be reducing your<br />

level of stock.<br />

There is always the chance issues can surface<br />

which challenge the parity of this formula, such<br />

as deferred payments offered by suppliers,<br />

branded products introducing new ranges, and<br />

buying larger quantities of fast selling products.<br />

If one hypothetical product is guaranteed to<br />

sell, there is no cause for concern, because the<br />

income may well be generated before the invoice<br />

needs to be paid.<br />

If another hypothetical product doesn’t sell<br />

before the invoice is due, then the problem<br />

remains regardless of the payment terms. Every<br />

product that a store possesses, that has not<br />

been sold before payment is due, will lead to<br />

reduced cash flow.<br />

If ‘fast sellers’ represent 80 per cent of your<br />

sales, then 80 per cent of your ‘cost of sales’ is<br />

already pre-committed to replacing these items.<br />

Thus 20 per cent of your cost of sales is<br />

available for debt reduction, stock reduction, or<br />

52 | <strong>August</strong> <strong>2022</strong>

Just the edge<br />

you need.<br />

Know your business<br />

and industry trends<br />

anywhere, anytime.<br />

At the beach or at a Trade Fair, review<br />

your stock and sales performance from any<br />

Supplier, even while you’re on their stand.<br />

Use pooled data to optimise profits by<br />

knowing the best performing items and<br />

emerging trends before you buy.<br />

Are you ready to improve your retail profits?<br />

• Mentoring & Management Consulting<br />

• Fun and Effective Sales Training<br />

• Seamless Succession Planning<br />

07 5574 0322<br />

mike@retailedgeconsultants.com<br />


Internal Business Development | FEATURE<br />

Purchasing new products<br />

for a business is exciting,<br />

but restraint is a must!<br />

entrepreneurial buying of new stock that you have never had offered before.<br />

If debt reduction, or stock reduction, is a part of your overall plan, then<br />

this 20 per cent needs to be further reduced to provide a new stock<br />

‘open to buy’ figure.<br />

In other words, once you have allowed for the 80 per cent of items that<br />

need to be repurchased, as well as the amount you want to reduce your<br />

debt or product levels by, the balance remaining is what is left to spend<br />

on new, unproven items.<br />

If you spend anymore than this you are spending more than you have<br />

coming in.<br />

The key to getting this process right is to ensure that any new items,<br />

regardless of how they are paid for, are deducted from the new open to<br />

buy fund at the time of ordering.<br />

If that’s done, then a jeweller avoids the trap of being lured into a false<br />

sense of how much capital is available to be spent.<br />

Unless you have a specific plan to increase or decrease your product<br />

levels, you should end each period with the same amount of product<br />

as you started and ideally with the same percentage of fast sellers.<br />

The only change should be new product replacing old product that<br />

is no longer required. Using this benchmark is the most effective way<br />

to measure your buying and keep it under control.<br />

Good luck<br />

Putting any forecasts for the future aside, all businesses have the chance<br />

to provoke internal sales improvement by securing control over the<br />

elements which can always be managed, regardless of external volatility<br />

or stability.<br />

It is critical that businesses are operating with accurate markup figures.<br />

Reviewing that information at the end of the financial year is too late to<br />

repair issues. Do it now!<br />

Old and stagnant inventory is an issue that can always be addressed.<br />

Resolving those kinds of product management issues is a great way of<br />

reinforcing feelings of control and building confidence for business owners.<br />

Our 9ct gold designs are fashionable and practical.<br />

Choose from a selection of stackable rings,<br />

elegant earrings and stunning pendants.<br />

SapphireDreams.com.au<br />

Become a stockist today<br />

02 9290 2199<br />

Purchasing new products for a business is exciting, but restraint is a<br />

must! Before any new inventory is acquired it’s essential that a business<br />

is spending less than is coming in and that all this information is<br />

measured and accounted for.<br />

In the words of Tony Robbins – “it’s our decisions, and not the conditions<br />

of our lives, which determines our destiny.”<br />

DAVID BROWN is co-founder and business mentor with Retail Edge<br />

Consultants and for more than 25 years has offered specialised training<br />

and management services to retailers throughout Australia and New<br />

Zealand. Learn more: retailedgeconsultants.com

Anyone can make a claim, but<br />

unfortunately exaggeration is a blood<br />

relative of falsehood and fiction.<br />

As they say, the devil is in the details.<br />

Numbers lead you to the detail and<br />

the detail leads you to facts.



As at 31 March <strong>2022</strong>, <strong>Jeweller</strong> was ranked 65,246, in the world, well<br />

ahead of other jewellery industry titles in more populous countries.<br />

For example, the US magazines JCK, Instore, and National Jeweler,<br />

ranked 87,514, 222,301 and 250,243 respectively, even though the<br />

population of the US is much larger than Australia.<br />


WORLD<br />


1 <strong>Jeweller</strong> Australia 65,246<br />

2 JCK USA 87,514<br />

3 Instore Magazine USA 222,301<br />

4 National Jeweler USA 250,243<br />

5 Retail <strong>Jeweller</strong> India 264,557<br />

6 <strong>Jeweller</strong>y Net Asia Hong Kong 371,672<br />

7 Diamond World India 515,279<br />

8 Professional <strong>Jeweller</strong> UK 550,812<br />

9 Solitaire Magazine Singapore 842,952<br />

10 Retail <strong>Jeweller</strong> Magazine UK 1,019,888<br />

11 Indian <strong>Jeweller</strong> India 1,077,502<br />

12 The Jewelry Magazine India 1,195,354<br />

13 <strong>Jeweller</strong>y Outlook UK 1,212,803<br />

14 <strong>Jeweller</strong>y World Australia 1,226,650<br />

15 Art of <strong>Jeweller</strong>y India 1,237,318<br />

Which is why <strong>Jeweller</strong> remains #1.<br />

<strong>Jeweller</strong> has been the leading voice of the Australian and New Zealand jewellery<br />

industries for 25 years, and today we rank #1 in the world.<br />

Alexa, the independent global ranking system for measuring website traffic and<br />

readership, now ranks jewellermagazine.com as the most widely read industry<br />

publication in the world – by far!<br />

Better still, the daily time spent on jewellermagazine.com is more than 21 minutes,<br />

which far exceeds all other international publications, which average only 2–3 minutes<br />

per visitor. Moreover, our ‘page views’ is miles ahead of all other industry publications.<br />

In addition, <strong>Jeweller</strong>’s social media presence dominates and our eMags boast more<br />

than 12.3 million reads.<br />

The numbers speak for themselves - follow the leader, and follow the readers too!<br />

16 <strong>Jeweller</strong>y Focus UK 1,290,905<br />

17 <strong>Jeweller</strong>y Business Canada 1,388,929<br />

18 <strong>Jeweller</strong>s Network South Africa 1,436,224<br />

19 <strong>Jeweller</strong>y Monthly UK 2,196,837<br />

20 Canadian <strong>Jeweller</strong> Canada 2,670,625<br />

21 The Retail Jeweler USA 3,218,391<br />

22 Preziosa Magazine Italy 3,582,030<br />

23 Gold Book Magazine Turkey 4,099,295<br />

24 Bangkok Gems & <strong>Jeweller</strong>y Thailand 4,558,422<br />

25 Hong Kong <strong>Jeweller</strong>y Magazine Hong Kong 6,296,819<br />

26 The New <strong>Jeweller</strong> UAE / India 10,992,912<br />

27 Jewel Trendz India NO DATA<br />

28 Solitaire International Singapore NO DATA<br />

29 <strong>Jeweller</strong>y Time New Zealand NO DATA<br />





WORLD<br />


1 Rapaport Magazine* USA 139,695<br />

2 Idex* Israel 370,487<br />


Denotes titles connected to diamond trading platforms / publication




Page Views is the number of times a reader visits any page<br />

on a website. A higher Page View figure the better, because it<br />

means readers are more engaged in the content. <strong>Jeweller</strong>’s<br />

Page View count of 12 leads all websites while most others<br />

can only record a single Page View before the reader leaves.<br />

Time-on-Page is the average time a reader spends on a page<br />

while Time-On-Site is how long they spend on the site each day.<br />

<strong>Jeweller</strong> leads the world with a Daily Time of 21.50 minutes,<br />

while most other publications only manage 1-2 minutes. The<br />

more time spent on a website, the better the global ranking.<br />

The Bounce Rate measures the percentage of visits that<br />

consist of only a single page view. It indicates the percentage<br />

of readers that land on a website, and immediately leave<br />

(‘bounce off’) meaning a low bounce rate is optimal. Alexa<br />

records <strong>Jeweller</strong>’s Bounce Rate at less than 25 per cent.<br />




(IN MINUTES)<br />


BOUNCE<br />

RATE<br />

1 <strong>Jeweller</strong> Australia 12.00<br />

2 Retail <strong>Jeweller</strong> India 8.60<br />

3 <strong>Jeweller</strong>s Network South Africa 6.00<br />

4 <strong>Jeweller</strong>y Business Canada 4.00<br />

5 Gold Book Magazine Turkey 4.00<br />

6 <strong>Jeweller</strong>y Net Asia Hong Kong 3.60<br />

7 Solitaire Magazine Singapore 3.00<br />

8 JCK USA 2.20<br />

9 <strong>Jeweller</strong>y Outlook UK 2.00<br />

10 The Jewelry Magazine India 2.00<br />

11 <strong>Jeweller</strong>y Focus UK 2.00<br />

12 Indian <strong>Jeweller</strong> India 2.00<br />

13 Canadian <strong>Jeweller</strong> Canada 2.00<br />

14 <strong>Jeweller</strong>y Monthly UK 2.00<br />

15 Instore Magazine USA 1.70<br />

16 Diamond World India 1.50<br />

17 National Jeweler USA 1.30<br />

18 Professional <strong>Jeweller</strong> UK 1.10<br />

19 Retail <strong>Jeweller</strong> Magazine UK 1.00<br />

20 Art of <strong>Jeweller</strong>y India 1.00<br />

21 <strong>Jeweller</strong>y World Australia 1.00<br />

22 The Retail Jeweler USA 1.00<br />

23 Preziosa Magazine Italy 1.00<br />

24 Bangkok Gems & <strong>Jeweller</strong>y Thailand 1.00<br />

25 Hong Kong <strong>Jeweller</strong>y Magazine Hong Kong 1.00<br />

26 The New <strong>Jeweller</strong> UAE / India 1.00<br />

27 Jewel Trendz India NO DATA<br />

28 Solitaire International Singapore NO DATA<br />

29 <strong>Jeweller</strong>y Time New Zealand NO DATA<br />

1 <strong>Jeweller</strong> Australia 21:50<br />

2 Retail <strong>Jeweller</strong> India 14:59<br />

3 <strong>Jeweller</strong>s Network South Africa 12.22<br />

4 <strong>Jeweller</strong>y Net Asia Hong Kong 02.60<br />

5 Art of <strong>Jeweller</strong>y India 02.49<br />

6 JCK USA 02.47<br />

7 Indian <strong>Jeweller</strong> India 02.47<br />

8 Gold Book Magazine Turkey 02.26<br />

9 <strong>Jeweller</strong>y World Australia 02.23<br />

10 Instore Magazine USA 02.12<br />

11 Diamond World India 02.03<br />

12 <strong>Jeweller</strong>y Outlook UK 01.53<br />

13 Solitaire Magazine Singapore 01.51<br />

14 National Jeweler USA 01.49<br />

15 <strong>Jeweller</strong>y Focus UK 01.32<br />

16 Professional <strong>Jeweller</strong> UK 01.28<br />

17 <strong>Jeweller</strong>y Business Canada 01.17<br />

18 The Jewelry Magazine India 01.05<br />

19 Retail <strong>Jeweller</strong> Magazine UK 00.60<br />

20 <strong>Jeweller</strong>y Monthly UK 00.34<br />

21 Jewel Trendz India NO DATA<br />

22 Solitaire International Singapore NO DATA<br />

23 Bangkok Gems & <strong>Jeweller</strong>y Thailand NO DATA<br />

24 The New <strong>Jeweller</strong> UAE / India NO DATA<br />

25 <strong>Jeweller</strong>y Time New Zealand NO DATA<br />

26 Canadian <strong>Jeweller</strong> Canada NO DATA<br />

27 The Retail Jeweler USA NO DATA<br />

28 Preziosa Magazine Italy NO DATA<br />

29 Hong Kong <strong>Jeweller</strong>y Magazine Hong Kong NO DATA<br />

2 <strong>Jeweller</strong> Australia 24.40%<br />

1 Retail <strong>Jeweller</strong> India 22.70%<br />

3 <strong>Jeweller</strong>y Net Asia Hong Kong 36.80%<br />

4 Retail <strong>Jeweller</strong> Magazine UK 45.50%<br />

5 <strong>Jeweller</strong>y Outlook UK 50.00%<br />

6 <strong>Jeweller</strong>y Business Canada 58.30%<br />

7 The Jewelry Magazine India 60.00%<br />

8 <strong>Jeweller</strong>y Focus UK 62.50%<br />

9 JCK USA 64.40%<br />

10 Art of <strong>Jeweller</strong>y India 69.20%<br />

11 Diamond World India 69.80%<br />

12 Professional <strong>Jeweller</strong> UK 72.20%<br />

13 Instore Magazine USA 72.70%<br />

14 <strong>Jeweller</strong>y World Australia 78.60%<br />

15 Indian <strong>Jeweller</strong> India 81.00%<br />

16 National Jeweler USA 82.30%<br />

17 Jewel Trendz India NO DATA<br />

18 <strong>Jeweller</strong>y Time New Zealand NO DATA<br />

19 Canadian <strong>Jeweller</strong> Canada NO DATA<br />

20 The Retail Jeweler USA NO DATA<br />

21 Preziosa Magazine Italy NO DATA<br />

22 Bangkok Gems & <strong>Jeweller</strong>y Thailand NO DATA<br />

23 Hong Kong <strong>Jeweller</strong>y Magazine Hong Kong NO DATA<br />

24 The New <strong>Jeweller</strong> UAE / India NO DATA<br />

25 <strong>Jeweller</strong>s Network South Africa NO DATA<br />

26 Gold Book Magazine Turkey NO DATA<br />

27 Solitaire Magazine Singapore NO DATA<br />

28 <strong>Jeweller</strong>y Monthly UK NO DATA<br />

29 Solitaire International Singapore NO DATA<br />











(IN MINUTES)<br />





BOUNCE<br />

RATE<br />

1 Idex* Israel 1.60<br />

2 Rapaport Magazine* USA 1.80<br />

1 Rapaport Magazine* USA 02:20<br />

2 Idex* Israel 02:06<br />

1 Rapaport Magazine* USA 54.60%<br />

2 Idex* Israel 63.70%<br />

All data collated as at 31 March <strong>2022</strong>


Show & Tell<br />

SHOW &<br />

TELL<br />

<strong>2022</strong><br />

The sky is the limit for buyers and suppliers alike at this<br />

year’s International <strong>Jeweller</strong>y Fair - the first large-scale<br />

gathering of the industry since 2019. In this exclusive<br />

preview, take a sneak peek at what’s on offer at the show.

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Alku<br />

Galvin Watch Company<br />

The Alku collection is inspired<br />

by European dress watches<br />

of the 1940s. A domed dial is<br />

one of the key features in a<br />

collection with vintage flair.<br />

Galvin Watch Company took<br />

the characteristics of this<br />

style and fused it with Nordic<br />

minimalist features on the dial.<br />

galvinwatchcompany.com.au<br />

STAND<br />

B39<br />

Ania Haie<br />

Duraflex Group Australia<br />

A daily jewellery must-have, this solid<br />

14-carat gold mini padlock paired<br />

with the delicately-crafted gold chain<br />

provides a stunning accent to your<br />

everyday look. A simple yet stunning<br />

aesthetic piece that matches any style.<br />

aniahaie.com.au<br />

STAND<br />

A07<br />

APDX<br />

SAMS Group Australia<br />

The Australian Pink Diamond Index (APDX)<br />

boasts Argyle pink diamonds in a variety of<br />

different cuts and colours, accompanied by<br />

expert advice and handling, for a smooth<br />

investment process.<br />

australianpinkdiamondexchange.com.au<br />

STAND<br />

F18<br />

Arina <strong>Jeweller</strong>y<br />

Indian diamond jewellery manufacturing<br />

company Arina <strong>Jeweller</strong>y presents the<br />

Diamonds of her Dreams collection, featuring<br />

impeccably created and crafted jewellery.<br />

arinajewellery.com<br />

STAND<br />

E46<br />

Atlas Pearls<br />

Over the past 29 years Atlas<br />

Pearls, an Australian company, has<br />

become one of the world’s largest<br />

producers of the much soughtafter,<br />

white, and silver South Sea<br />

pearls. Atlas Pearls produced<br />

more than 560,000 pearls in 2021.<br />

atlaspearls.com.au<br />

STAND<br />

G32<br />

Autore Pearls<br />

Autore's Timeless Collection. St Moritz earrings,<br />

detailed in 18-carat white gold with white diamonds<br />

and white South Sea Pearls. St Moritz pendant,<br />

featuring 18-carat white gold with white diamonds<br />

and a white South Sea Pearl. Single row diamond<br />

eternity ring, with 18-carat white gold and white<br />

diamonds paired with a white South Sea Pearl.<br />

autorepearls.com.au<br />

STAND<br />

G09<br />

Aztec Gold and Silver<br />

Aztec Gold & Silver presents stunning new<br />

pendants on sterling silver chains, available<br />

with matching earrings. The stunning silver<br />

range from Europe will also be available,<br />

showcasing a wide variety of collections.<br />

STAND<br />

D44<br />

Baume & Mercier<br />

Duraflex Group Australia<br />

Driven by the prestigious Baumatic<br />

manufacture calibre, the Riviera 10616 is the<br />

all-road Swiss watch. Its transparent blue<br />

sapphire dial, interchangeable metal bracelet<br />

and open caseback complete the sporty look.<br />

dgau.com.au/baume-mercier<br />

STAND<br />

A07<br />

60 | <strong>August</strong> <strong>2022</strong>



Australian Pink Diamond Exchange provides a smart and safe platform<br />

to buy and sell your Argyle pink diamonds.<br />

Every diamond we list undergoes and completes a strict authenticity verification process.<br />

APDX will also arrange safe and secure transportation, no matter if you are buying or selling.<br />

Our team has over 25 years of industry experience and expert knowledge<br />

in working with Argyle pink diamonds.<br />

Become an Authorised Agent<br />

apdx.com.au sales@apdx.com.au 1800 344 008




IJF<br />

D01<br />

Timesupply<br />

jewellery + watches<br />

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

sales@timesupply.com.au | timesupply.com.au<br />

exclusive distributor AU & NZ

Timesupply<br />

jewellery + watches<br />

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

sales@timesupply.com.au | timesupply.com.au<br />

exclusive distributor AU & NZ<br />

IJF<br />


Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

BECKS<br />

Inspired by natural forms<br />

and environmental<br />

awareness, BECKS<br />

Cascade Collection is a<br />

refreshing take on timeless<br />

patterned wedders.<br />

Available in a variety of<br />

widths, Cascade features<br />

patterns and colours to suit<br />

a variety of preferences.<br />

pwbeck.com.au<br />

STAND<br />

E01<br />

Bella Donna Silver<br />

Bella Donna Silver's<br />

oval ring (12x16mm) is<br />

available with amethyst,<br />

blue topaz, and green<br />

amethyst. The double<br />

pear-shaped earrings<br />

(8x5mm) are available<br />

with the same gemstones.<br />

belladonnasilver.com.au<br />

STAND<br />

A14<br />

Blue Diamonds<br />

STAND<br />

A24<br />

The Lightening Ridge opal,<br />

gem and diamond set is a<br />

showpiece statement, with the<br />

striking necklace catching the<br />

eye with four opals within an<br />

array of diamonds. Set using<br />

a floating diamond method,<br />

giving exceptional brilliance.<br />

Gem set oval links add colour<br />

with yellow, blue sapphires,<br />

tsavorite, and garnets creating<br />

unique appeal.<br />

Blush Pink Diamonds<br />

SAMS Group Australia<br />

The Blush Amelia Ring showcases<br />

a round-cut Argyle pink diamond,<br />

surrounded by a double halo, set<br />

on a pave white diamond band.<br />

The Kimberley Birgitte Wedder is a<br />

simple band, featuring Argyle pink<br />

diamonds, set in 18-carat rose gold.<br />

pinkkimberley.com.au<br />

STAND<br />

F18<br />

(02) 9417 0177 | www.dgau.com.au

EST. 1981<br />

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />






Blush Pink Diamonds<br />

SAMS Group Australia<br />

The Blush Hermione set features<br />

sparkling round-cut Argyle pink<br />

diamonds, set in an 18-carat rose<br />

gold floral design and placed<br />

delicately on a white gold band.<br />

pinkkimberley.com.au<br />

STAND<br />

F18<br />



FOR<br />




& FOR<br />

PARTS<br />


& PARTS<br />


Fast delivery Australia wide<br />

Fast delivery Australia wide<br />

We Keep deliver your Australia watch wide<br />

Keep repair your business watch<br />

aliving Keep repair your and business watch<br />

ticking<br />

aliving repair and business ticking<br />

Seiko and Energizer watch<br />

batteries. alive Seiko and and Spare parts<br />

Energizer ticking<br />

supplier<br />

watch<br />

of Seiko, plus Seiko tools and<br />

batteries. Spare parts supplier<br />

High of Seiko, quality accessories.<br />

plus Seiko tools watch and<br />

batteries, German-made accessories. spare Beco parts,<br />

Technic<br />

tools watchmaker<br />

German-made<br />

and accessories<br />

supplies and<br />

Beco Technic<br />

Heli watch care.<br />

German-made watchmaker Beco supplies Technic and<br />

As watchmaker a family Heli owned watch supplies and care.<br />

operated and<br />

business, As a Heli family watch we value<br />

owned cleaning your<br />

and care. business<br />

operated<br />

and support.<br />

business, Family owned we value and your operated. business<br />

We Proudly value your serving and business support.<br />

the and jewellery support.<br />

trade for over forty years.<br />

Proudly serving the jewellery<br />

trade Preferred for over supplier forty to years.<br />

all four<br />

buying groups.<br />

Preferred Preferred supplier supplier to all to four<br />

buying groups.<br />

Free Call: 1800 244 354<br />

Free Free It’s<br />

Call: Fax: easy 1800 to enquire<br />

1800 028<br />

244 887<br />

354<br />

or place your order.<br />

It’s Free easy Fax: to place 1800 your 028 order! 887<br />

It’s orders@thebatteryman.com.au<br />

easy to place your order!<br />

orders@thebatteryman.com.au<br />

Bronzallure<br />

Duraflex Group Australia<br />

Designed and made in Italy, the<br />

Felicia earrings with natural<br />

stones and precious cubic zirconia<br />

elements speak the language of<br />

love and tenderness. Golden rose<br />

patented alloy, 18-carat rose gold<br />

plating, cubic zirconia and selected<br />

natural gemstones – nickel-free,<br />

cadmium-free and hypoallergenic.<br />

bronzallure.com<br />

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

Carmen <strong>Jeweller</strong>s presents a<br />

natural emerald collection. 14-carat<br />

yellow gold natural emerald<br />

(0.82-carat) and lab-grown diamond<br />

(0.22-carat) earrings. 14-carat yellow<br />

gold natural emerald (1.25-carat)<br />

and lab-grown diamond (0.18-carat)<br />

pendant. 14-carat yellow gold<br />

natural emerald (1.17-carat) and<br />

lab-grown diamond (0.18-carat) ring.<br />

Centrestone Insurance<br />

Centrestone <strong>Jeweller</strong>y Insurance<br />

offers customers an effortless<br />

solution to insuring their precious<br />

jewellery pieces by working closely<br />

with a network of jewellers to offer<br />

an insurance policy that is tailored<br />

specifically for each unique piece of<br />

jewellery. Policies are custommade<br />

by jewellery experts with<br />

comprehensive worldwide coverage.<br />

centrestone.com.au<br />

STAND<br />

A07<br />

STAND<br />

G18<br />

STAND<br />

B10<br />

All button batteries for trade use only.

Producing more than 550,000 pearls each year across 7 farm sites<br />

throughout the South Seas, Atlas Pearls is a global leader in the<br />

production of sustainable South Sea pearls, certified from the source.<br />

Available online around the world.<br />


Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Chemgold<br />

chemgold.com<br />

STAND<br />

D17<br />

Enhance and complete designs<br />

with Chemgold's wide range of highquality<br />

precious metal components.<br />

Produced in Australia and Italy,<br />

Chemgold's findings are made from<br />

the finest materials which come in<br />

18-carat, 9-carat and sterling silver.<br />

Colours of Chemgold is<br />

the full range of casting<br />

alloys from the state-ofthe-art<br />

precious metal<br />

casting house of Chemgold.<br />

The collection of alloys is<br />

the largest in the country,<br />

offering options in platinum,<br />

white gold, yellow gold,<br />

silver, bronze, and brass.<br />

Classique<br />

SAMS Group Australia<br />

A Classique staple design, these<br />

watches are available in an<br />

array of metal and dial colours,<br />

featuring a bracelet band and<br />

round face, with the option for a<br />

diamond bezel. Fitted with Swiss<br />

quartz movement.<br />

samsgroup.com.au<br />

STAND<br />

F18<br />

Coeur de Lion<br />

Timesupply<br />

Coeur de Lion's new iconic Geo Cube style in fresh turquoise and<br />

blue tones. Featuring a unique asymmetric design with crystal<br />

pearls and cubes of natural semi-precious stones blue such as<br />

aventurine, sodalite, howlite, and amazonite. Handmade in Germany.<br />

timesupply.com.au<br />

STAND<br />

D01<br />

Cudworth<br />

Cudworth Enterprises<br />

Hardware is the new collection for men<br />

from Cudworth; semi-precious bead<br />

neckpieces and bracelets stacked with<br />

Italian leather bracelets. The collection<br />

also features stainless steel neck chains<br />

and bracelets in Ion plated colours such<br />

as 14-carat gold, black, and gunmetal.<br />

cudworthenterprises.com<br />

STAND<br />

C24<br />

Diamonds by DGA<br />

Duraflex Group Australia<br />

Featuring the most beautiful selection of<br />

jewellery finished to the highest quality,<br />

our range includes 9-carat and 18-carat<br />

gold diamond earrings, bracelets, rings<br />

and pendants. The settings include;<br />

claw, invisible, illusion plate pavé and<br />

micro pavé. Our natural diamonds are<br />

high-quality colour and clarity.<br />

dgau.com.au<br />

STAND<br />

A07<br />

DJ Diamond Designs<br />

Featuring the most beautiful<br />

selection of jewellery finished<br />

to the highest quality, our<br />

range includes 9-carat<br />

and 18-carat gold diamond<br />

earrings, bracelets, rings<br />

and pendants. The settings<br />

include; claw, invisible, illusion<br />

plate pavé and micro pavé. Our<br />

natural diamonds are highquality<br />

colour and clarity<br />

djdiamonddesigns.com.au<br />

STAND<br />

C44<br />

68 | <strong>August</strong> <strong>2022</strong>

Concept to Creation<br />


1300 886 108 | AUSTRALIA WIDE<br />


Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Ellendale Diamonds<br />

ellendalediamonds.com.au<br />

STAND<br />

A23<br />

18-carat white or yellow gold<br />

rings. Each ring has a central<br />

four-claw setting that features<br />

cushion-cut Australian yellow<br />

diamond (0.71/1.01) carats.<br />

Upswept shoulders are grain set<br />

with 16 white round brilliant cut<br />

diamonds (0.24 carats).<br />

18-carat white or rose gold<br />

huggie style earrings. V claw end set<br />

with 0.24 carats of white marquise<br />

diamonds and bezel set with 0.06<br />

carats of pink round diamonds from<br />

the Argyle diamond mine.<br />

EDOX<br />

Duraflex Group Australia<br />

Edox proudly acknowledges its heritage<br />

but also embraces innovation and<br />

imagination in its collections. Today, Edox<br />

is known for its highly water-resistant<br />

timepieces, complex hand-polished watch<br />

cases and traditional hand assembling.<br />

dgau.com.au<br />

STAND<br />

A07<br />

18-carat white or rose gold knifeedge<br />

style half hoop drop earrings.<br />

Two removable enhancers feature<br />

11mm Broome South Sea pearls with<br />

white round diamonds (0.13 carats)<br />

and 68 round pink diamonds (0.34<br />

carats) from the Argyle diamond mine.<br />

Specialists in Lab-Grown & Natural Diamonds<br />

Gemstones<br />

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

T: (08) 9349 7861 | E: wholesale@pinnaclejewellers.com | www.pinnaclejewellers.com<br />


(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Evotech<br />

evotechpacific.com.au<br />

STAND<br />

G14<br />

The EvoTech ProLaser<br />

Welder is a table-top<br />

laser welder designed<br />

and manufactured in Italy.<br />

Available in four variants,<br />

namely 150J - 180J - 200J<br />

and 200J-Plus which are<br />

called EASY-1, EASY-2,<br />

EASY-3, and EASY-3 Plus.<br />

The L3 Magic Laser<br />

Engraver provides<br />

jewellers with an in-store<br />

engraving option suitable<br />

for all to use. The intuitive<br />

software makes light<br />

work of inside and outside<br />

ring or bangle engraving,<br />

flat engravings, and<br />

image engraving.<br />

Fabuleux Vous<br />

Fabuleux Vous' La Pierre<br />

Carnelian Long Necklace<br />

features the warm, vibrant,<br />

orange colours of the carnelian<br />

stone, all placed on a sterling<br />

silver curb chain. The total<br />

length of the necklace is 85cm,<br />

and comes with a 5cm extender.<br />

fabuleuxvous.com<br />

STAND<br />

F14<br />

Firegem<br />

Paterson Fine <strong>Jeweller</strong>y<br />

Firegem's new cross-pendant features<br />

a 9-carat yellow gold oval claw set<br />

(7X5mm) with triplet opals and a single<br />

diamond. Additonally, matching earrings<br />

and a pendant crafted with triplet opals<br />

and solid 9-carat yellow gold in an<br />

elegant leaf-shaped pattern.<br />

pfj.com.au<br />

Georgini<br />

westendcollection.com.au<br />

STAND<br />

F04<br />

The Globe Bracelet by Georgini is inspired<br />

by luxurious red carpet events and dazzles<br />

with pearl and a simple chain adorned<br />

with sprinkles of sparkle and the Georgini<br />

emblem. Crafted from luxurious rhodium<br />

plated 925 sterling silver it measures 16cm<br />

with a 4cm extension.<br />

Diamonds by Georgini features<br />

stunning lab-grown diamonds,<br />

laser-inscribed on the girdle with<br />

a report number and a statement<br />

that guarantees quality and<br />

authenticity with the independent IGI<br />

certification. 18-carat white gold ring<br />

with a 1-carat solitaire diamond.<br />

The Georgini Gold Collection is<br />

crafted from 9-carat gold and set<br />

with dazzling moissanite stones.<br />

Features a round brilliant-cut<br />

1.25-carat solitaire stone in a<br />

claw setting as the centrepiece.<br />

Stones run along the band, paired<br />

with a flawless 9-carat gold band.<br />

Gerrim<br />

Gerrim's dazzling turqoise<br />

and diamond earrings and<br />

ring as well the stunning<br />

necklace pendant.<br />

gerrim.com<br />

STAND<br />

B13<br />

Global <strong>Jeweller</strong>y Concepts<br />

Stunning ideal-cut zirconia necklace<br />

set in 9-carat gold as a part of the<br />

EverGem Summer collection.<br />

STAND<br />

B12<br />

72 | <strong>August</strong> <strong>2022</strong>

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Global <strong>Jeweller</strong>y Concepts<br />

Sapphire and diamond ring set in 18-carat<br />

white gold. Part of the Myriad Diamonds<br />

Summer Collection, also available in<br />

ceylon sapphire and ruby.<br />

evergem.com.au<br />

STAND<br />

B12<br />

Grown Diamonds<br />

Showcasing the world's<br />

largest round lab-grown<br />

diamond. This stunning<br />

11.32-carat F VVS2 round<br />

brilliant-cut diamond is IGI<br />

certified, an ideal cut with<br />

hearts and arrows.<br />

growndiamonds.com.au<br />

STAND<br />

E10<br />

Ikecho<br />

Ikecho’s best-selling 9-carat YG Keshi<br />

freshwater pearl with a beautiful<br />

18mm diamond pendant (0.03ct).<br />

ikecho.com.au<br />

STAND<br />

E13<br />

Classic collection<br />

A golden touch to our timeless design.<br />

Inspired by nature.<br />

Find out more about the<br />

Classic collection at www.mondaine.com<br />

Ingersoll<br />

West End Collection<br />

The art of everyday luxury<br />

defines the latest collection<br />

from Ingersoll. Presenting<br />

the Jazz Automatic Watch.<br />

Featuring a skeleton dial<br />

with a day/night and dual<br />

time function the intricate<br />

craftsmanship of the watch is<br />

highlighted.<br />

westendcollection.com.au<br />

STAND<br />

F04<br />

(02) 9417 0177 | www.dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Inspiring Pearls<br />

inspiringpearls.com.au<br />

STAND<br />

C31<br />


STAND C24<br />

Remarkable white<br />

button freshwater pearls<br />

(9mm) set on matte<br />

finish earrings. Available<br />

in yellow gold-plated<br />

sterling silver, or simple<br />

sterling silver.<br />

Remarkable<br />

nucleated semi-baroque<br />

natural multi-colour<br />

freshwater pearl<br />

necklace (10-12mm).<br />

JAG<br />

Duraflex Group Australia<br />

JAG is a relaxed, understated and<br />

versatile brand with a core product<br />

offering that is considered in design.<br />

Simple, clean lines defined by<br />

quality fits and fabrications underpin<br />

each Jag range. Jag is effortless and<br />

relaxed in the Australian way.<br />

dgau.com.au<br />

STAND<br />


(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

La Couronne<br />

Discover the Elizabeth ring, La Couronne’s<br />

new trilogy birthstone range. The collection<br />

pays homage to the Platinum Jubilee,<br />

honing in on the theme of celebrating<br />

one’s unique and personal achievements.<br />

Accompanied with shoulder diamonds and<br />

set in 9-carat gold, the design is timeless.<br />

lacouronnejewellery.com.au<br />

STAND<br />

C20<br />

Limra Gems<br />

STAND<br />

H16<br />

Limra Gems presents<br />

a centred Colombian<br />

emerald gemstone<br />

surrounded by pigeon<br />

blood red ruby and<br />

white diamond. A<br />

gold ring inspired by<br />

Art Deco style.<br />

LJ West<br />

The Scott West Aureole Hoop<br />

Earrings Collection, featuring<br />

large (37mm) 18-carat yellow<br />

gold with 268 stones of natural<br />

pink diamonds (2.16-carat)<br />

as well as 154 white melee<br />

diamonds (1.42-carat).<br />

scottwestdiamonds.com<br />

STAND<br />

F10<br />

Luminox<br />

Duraflex Group Australia<br />

The new Pacific Diver Chrono<br />

is a beautiful addition to the<br />

Chronograph series. Defined<br />

by a stainless steel case and<br />

Carbonox unidirectional bezel,<br />

it's a vital instrument for any<br />

diver. This watch comes in a<br />

stainless-steel bracelet.<br />

luminox.com.au<br />

STAND<br />

A07<br />

Mark McAskill <strong>Jeweller</strong>y<br />

Stunning new dress ring design<br />

which features octagonal cut<br />

lemon quartz stone (14x10mm)<br />

which has been claw set in<br />

9-carat yellow gold.<br />

markmcaskill.com.au<br />

STAND<br />

C10<br />

Maurice Lacroix<br />

West End Collection<br />

Maurice Lacroix unveils its<br />

latest timepiece, the AIKON<br />

Skeleton. Presented in a 39mm<br />

stainless steel case, the modest<br />

diameter of this watch promises<br />

widespread appeal. Waterproof<br />

with sapphire crystal glass.<br />

westendcollection.com.au<br />

STAND<br />

F04<br />

78 | <strong>August</strong> <strong>2022</strong>

The experts<br />

in coloured stones.<br />








07 3229 1250 sales@sapphirexport.com

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Mondaine<br />

Duraflex Group Australia<br />

Inspired by nature, the 40mm<br />

stainless steel case, hands, and<br />

indexes of this watch from the<br />

Classic collection are matte-finished<br />

preserving Mondaine's timeless<br />

design and minimalist look. With a<br />

deep sea blue dial and a Milanese<br />

mesh strap, this timepiece pays<br />

homage to the wonders of our seas.<br />

dgau.com.au<br />

STAND<br />

A07<br />

My Little Angel<br />

Paterson Fine <strong>Jeweller</strong>y<br />

Headlined by remarkable<br />

sterling silver, My Little<br />

Angel is an open belcher<br />

link bracelet that features<br />

a little feet charm and a<br />

pink enamel heart charm.<br />

pfj.com.au<br />

STAND<br />

B01<br />

NCF<br />

These rock chains are meticulously<br />

fabricated to emanate brilliance and<br />

elegance, and are available in various<br />

real gold plating and protected with<br />

anti-tarnish treatment, finished as<br />

bracelets, necklaces, and anklets.<br />

ncfaus.com<br />

STAND<br />

B49<br />

Nordgreen<br />

West End Collection<br />

Nordgreen's Unika gold 5-link<br />

bracelet 32mm watch. Danish<br />

design by Jakob Wagner for a<br />

timeless look with interchangeable<br />

straps for versatility.<br />

westendcollection.com.au<br />

STAND<br />

F04<br />

Specialising in:<br />

• Argyle origin<br />

• Coloured diamonds<br />

• Synthetic diamonds<br />

• Rough diamonds<br />



Y UR SALES<br />



COME AND<br />

SEE US AT<br />



STAND<br />

C20<br />

Interest Free Finance Available For Approved Customers<br />

Your Very Own Personalised Christmas Catalogue!<br />

What we offer:<br />

• Quick turnaround stock!<br />

We dispatch all orders<br />

received by 12pm for<br />

delivery the following day<br />

• Personalised catalogues<br />

with your store name,<br />

logo and address<br />

• Fantastic range of<br />

POS material<br />

• Digital marketing package<br />

Gifting<br />

T H E S E A S O N O F<br />


$ 995<br />

M2259<br />

$ 249<br />

M3157<br />

$ 1195<br />

M3155<br />

www.deltadiamonds.com<br />

0439 209 933<br />

To view our range and order stock<br />

visit us at www.lacouronnejewellery.com.au<br />

or email us at sales@lacouronnejwl.com.au<br />

For more information, call us now! 03 9764 2165<br />


120979 LC Christmas Catalogue <strong>2022</strong>_P1-7.indd 1 1/7/<strong>2022</strong> 9:45 am

INTERNATIONAL JEWELLERY FAIR <strong>2022</strong> | Show & Tell<br />

Nomination<br />

Timesupply<br />

nomination-jewellery.com.au<br />

STAND<br />

D01<br />

It’s all about the colour with this<br />

new range from the Nomination<br />

Fashion collection. Features<br />

beautiful sparkling zirconias in a<br />

variety of shapes set in 22-carat<br />

rose gold plated sterling silver.<br />

OOZOO Timepieces<br />

Our newest OOZOO Timepieces models include<br />

gold and silver cases with coloured leather<br />

straps in our 'vintage' slimline range. All<br />

OOZOO watches feature Japanese quartz Miyota<br />

movements that are water resistant to splash and<br />

rain with a stainless-steel back that is nickel safe.<br />

oozoo.com.au<br />

STAND<br />

E45<br />

Three fashionable new bracelet<br />

bases, including the on-trend<br />

“oil slick” colour to add a new<br />

dimension to this ever-popular<br />

range. Unique interchangeable<br />

rings and tops in new styles and<br />

vibrant sparkling fashion colours -<br />

such as ruby, emerald, chrysolite,<br />

fuchsia, peridot, blue zircon and<br />

purple velvet.<br />



Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />



Palloys<br />

palloys.com<br />

Born out of passion and the<br />

art of jewellery, Livadi creates<br />

commitment rings and jewellery,<br />

with an emphasis on quality<br />

craftsmanship using only the<br />

finest materials.<br />

STAND<br />

C01<br />

Paterson Fine <strong>Jeweller</strong>y<br />

STAND<br />

B01<br />

A new range of flat top signet rings<br />

in a polished finish. 9-carat yellow<br />

gold which comes in five unique<br />

styles - the Drake, Declan, Dominic,<br />

Daryl, and Dixon varieties.<br />

New collection of ladies flexible<br />

cuff bangles crafted in 9-carat yellow<br />

gold. Available with zirconia and<br />

blue topaz.<br />

pfj.com.au<br />

Become a stockist today<br />

sales@samsgroup.com.au<br />

02 9290 2199

(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Pink Kimberley<br />

SAMS Group Australia<br />

pinkkimberley.com.au<br />

STAND<br />

F18<br />

Rare Argyle diamond<br />

rings from Pink Kimberley<br />

are crafted in floral<br />

inspired settings, featuring<br />

an array of round-cut<br />

Argyle pink diamonds,<br />

encrusted with white<br />

diamonds, set in 18-carat<br />

rose and white gold.<br />

The Kimberley Kira set<br />

features a matching pendant<br />

and ring, with two overlapping<br />

bands of Argyle pink and<br />

white diamonds, set in<br />

18-carat white and rose gold.<br />

Poix & Troy<br />

Poix & Troy Australia are brand<br />

ambassadors and represent<br />

some of the finest jewellery<br />

houses from around the world.<br />

Aiming to build strong personal<br />

partnerships with incredible<br />

designers and leading<br />

manufacturers, to develop<br />

dazzling and unique collections.<br />

poixandtroy.com.au<br />

STAND<br />

G20<br />

Podium<br />

An award-winning technology company, developing<br />

cloud-based software which specialises in customer<br />

feedback and communication between businesses<br />

and consumers. Developed with an aim to assist<br />

businesses in improving their online reputation.<br />

podium.com.au<br />

STAND<br />

F44<br />

Police<br />

Duraflex Group Australia<br />

Police captures the essence of the<br />

urban, free and rebellious street<br />

spirit. Designed primarily for men,<br />

the Police range also incorporates<br />

unisex and ladies’ styles from retro<br />

to modern, glamorous to sporty.<br />

Technology and design come<br />

together seamlessly in timepieces<br />

that feature top-quality materials<br />

and functionality.<br />

dgau.com.au<br />

STAND<br />

A07<br />

Qudo<br />

Timesupply<br />

Unique interchangeable<br />

rings and tops in new<br />

styles and new vibrant<br />

sparkling fashion colours<br />

- such as ruby, emerald,<br />

chrysolite, fuchsia,<br />

peridot, blue zircon, and<br />

purple velvet.<br />

qudojewellery.com.au<br />

STAND<br />

D01<br />

84 | <strong>August</strong> <strong>2022</strong>

Find comfortable glamour in Blush Pink diamonds, elegant designs,<br />

showcasing a beautiful glimpse of Australian history.<br />

Become a stockist today<br />

02 9290 2199

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

RAS<br />

Timesupply<br />

New wearable art from Spanish<br />

handmade brand RAS is inspired<br />

by the nature around us. The<br />

Tropic Ovals bangle features a<br />

unique shaped wide cuff style<br />

with an intricate leaf pattern.<br />

timesupply.com.au<br />

STAND<br />

D01<br />

Retail Edge<br />

Know your business and industry<br />

trends anywhere, anytime. At the beach<br />

or at a trade fair, review your stock and<br />

sales performance from any supplier,<br />

even while you’re on their stand. Use<br />

pooled data to optimise profits by<br />

knowing the best-performing items<br />

and emerging trends before you buy.<br />

retailedgeconsultants.com.au<br />

STAND<br />

E44<br />

Salt & Pepper Diamonds<br />

Salt and pepper diamonds are<br />

mined,natural diamonds without<br />

treatment. The heavily-included<br />

nature of Salt and Pepper<br />

Diamonds means they are all<br />

unique and incomparable. They<br />

have become a popular and<br />

economical choice for Millennial<br />

engagement rings and everyday<br />

jewellery alike.<br />

saltandpepperdiamonds.com.au<br />

STAND<br />

A20<br />

Sapphire Dreams<br />

SAMS Group Australia<br />

sapphiredreams.com.au<br />

STAND<br />

F18<br />

The beautiful Sapphire<br />

Dreams Trilogy rings feature<br />

Australian sapphires in teal,<br />

blue, yellow, and green, set in<br />

18-carat white and yellow gold<br />

encrusted with white diamonds.<br />

Scanlan & Co.<br />

RJ Scanlan’s Lux Collection<br />

is made in Germany and is an<br />

800-piece range of matching<br />

pendants, earrings, and rings<br />

has something for all tastes and<br />

budgets. The manufacturing is<br />

second to none from a company<br />

that's been creating beautiful<br />

jewellery for more than 80 years.<br />

scanlanandco.com.au<br />

STAND<br />

G10<br />

Halo-style 18-carat<br />

Australian sapphire rings, from<br />

Sapphire Dreams, are classic,<br />

luxurious pieces. Featuring<br />

an array of stones including<br />

deep teal, green, yellow, and<br />

everything in between.<br />

86 | <strong>August</strong> <strong>2022</strong>

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Shillcombe<br />

matsjonasson.com.au<br />

STAND<br />

A02<br />

Hand-made, collectable<br />

Swedish crystal from Mats<br />

Jonasson, Maleras. The blue bird,<br />

kingfisher, puppy and red rose<br />

designs will dazzle as a statement<br />

piece reflecting the artisan,<br />

glassmaking traditions combined<br />

with innovative design."<br />

Sekonda<br />

Duraflex Group Australia<br />

With a wide-range of ladies<br />

and gents models, SEKONDA<br />

combines elegance, fashion<br />

and style at a competitive price<br />

offering value to the Australian<br />

consumer second to none.<br />

SEKONDA is an ideal choice for<br />

all astute customers of highquality,<br />

value-for-money watches.<br />

dgau.com.au<br />

STAND<br />

A07<br />

Stones & Silver<br />

Birthstone necklaces made<br />

from .925 sterling silver<br />

featuring a silver disc perfect<br />

for engraving and a Preciosa<br />

crystal for each month. Available<br />

individually or as a set.<br />

stonesandsilver.com.au<br />

STAND<br />

F02<br />

Est.1968<br />





Bracelets & Necklaces | Bangles | Earrings<br />

Pendants | Fine Chains | Rings | Findings<br />

Personalised <strong>Jeweller</strong>y | Cufflinks<br />




MEMBER<br />

03 9654 4449<br />

Level 4, Wales Corner<br />

227 Collins Street<br />

Melbourne VIC 3000<br />

gems@kandk.net.au<br />

Email info@eugenesjewellery.com.au<br />

Address 802/125 Swanston Street, Melbourne VIC 3000<br />

Phone 03 9662 4486<br />


Made in Italy . Made in Italy .<br />


Bronzallure is the Made in Italy brand that designs jewels in the exclusive<br />

Golden Rosé alloy plated in 18kt rose gold. All the designs are hand-set<br />

and hand-finished in-house. Family owned, third-generation of <strong>Jeweller</strong>s<br />

with over 60 years of experience.<br />


Bronzallure jewels are the perfect union of avant-garde technology, fine<br />

Italian manufacturing and a careful selection of the best natural stones.<br />

All jewels are hypoallergenic, nickel, cadmium and lead-free, whilst<br />

bearing a signed guarantee that certifies their excellent quality.<br />


Bronzallure Milano innovation is the crafting of the particular Golden<br />

Rosè® alloy, a newborn rose metal, which is through to the core of every<br />

jewel. A result of 10 years of research, the unique formula provides<br />

hypoallergenic, tarnish-resistant, lustrous and long term immutability of<br />

colour.<br />

(02) 9417 0177 | dgau.com.au

Show & Tell | INTERNATIONAL JEWELLERY FAIR <strong>2022</strong><br />

Stones & Silver<br />

Set in .925 sterling silver<br />

these stunning stud chain<br />

earrings are a must-have..<br />

Additionally, the .925<br />

sterling silver 7mm chain<br />

link ring is right on trend.<br />

stonesandsilver.com.au<br />

STAND<br />

F02<br />

Thomas Sabo<br />

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Diamond Industry Update<br />


Natural Diamond<br />

Producers'<br />


The international diamond industry has been reshaped by the economic<br />

sanctions imposed on Russia following the invasion of Ukraine. PRANAY<br />

NARVEKAR and CHAIM EVEN ZOHAR of IDEX explore some of the most<br />

significant changes to the market and the ramifications on the pipeline.

FEATURE | Diamond Industry Update<br />



It is well known that in 2021, the diamond<br />

midstream and downstream sectors experienced<br />

what was probably one of their best years in<br />

recent memory, right up there alongside 2011.<br />

In the euphoria, US$20 billion of potential and thus<br />

unearned income was lost as a ripple effect of the<br />

legitimisation of laboratory-grown diamonds (LGDs) by<br />

De Beers. High Street jewelers and high-end jewellery<br />

chains, traditionally the greatest defenders of the natural<br />

product, have lost their inhibitions and are now the main<br />

LGD drivers, without reputational fears.<br />

Nevertheless, the entire industry not only saw a surge<br />

in sales after the COVID outbreak in 2020, but also<br />

experienced one of its most profitable years, something for<br />

which it had been yearning. 2021 helped the industry ‘rightsize’<br />

its inventories and bring the overall business model<br />

back in line with what it should be.<br />

De Beers, champion of the natural diamond industry, triggered<br />

the universal acceptance of the competing LGD product with<br />

the launch in 2018 of its Lightbox range of diamonds. It’s<br />

now apparent this move heralded a point of no return for the<br />

massive uptake of the LGD industry and the natural diamond<br />

industry will now have to live with the implications.<br />

Those who have followed our annual analysis for many years<br />

will remember that we have said that eventually the price<br />

differentiation between natural and LGD will disappear, and<br />

the market will know only one product, called diamonds.<br />

Fortunately, we aren’t there yet!<br />

With the launch of Lightbox, De Beers management said<br />

they hoped to keep LGD prices in check and to corral LGD<br />

into the impulse-purchase category. All this was backed by<br />

a lot of research.<br />

The reality is quite different; a bulk of LGD sales now cater<br />

to the bridal market! Just read one of many headlines on<br />

bridal websites: ‘These are the best places to buy labgrown<br />

diamond rings’, or ’Maximise your budget without<br />

sacrificing style’.<br />

We find it difficult to believe that De Beers’ research missed<br />

this outcome.<br />

K E Y STATS<br />

Financial<br />

figures from<br />

the pipeline<br />

$22.1bn<br />

Polished diamond<br />

sales, in US Dollars,<br />

for 2021.<br />

$10bn<br />

Estimated total debt<br />

in US Dollars in the<br />

diamond midstream<br />

in 2021.<br />

$230m<br />

Rough diamonds sold<br />

by Gokhran, Russia's<br />

state treasury, from<br />

the stockpile in 2021.<br />

$20b<br />

The potentially<br />

unearned income,<br />

in US Dollars, for<br />

diamond producers<br />

as a result of De<br />

Beers' launch of<br />

Lightbox.<br />

Pricing policies in natural and LGD diamonds are not all<br />

that different. The bulk of LGD sales by value are in the<br />

larger stones (pointers and carat-plus stones) and if LGD<br />

stones were sold at natural prices, the size of the diamond<br />

pipeline would probably nearly double from $US22 billion of<br />

polished sales to $US40 billion.<br />

While it can be argued that it might not necessarily be a<br />

correct comparison, it highlights how big a dent the LGD<br />

market has made in the natural diamond industry.<br />

It is just a matter of time before countries that produce<br />

natural diamonds fully realise the irreversible damage the<br />

legitimisation of LGDs has caused to the natural diamond<br />

pipeline. In any case, it’s probably too late for Botswana and<br />

Namibia to rebel against De Beers.<br />

That is, the producing countries have also seen a steady<br />

surge in demand, so they may find it difficult to measure<br />

the ‘unearned potential income’. The same counts for<br />

achievable rough prices; without the LGD alternative on<br />

the market prices would have increased much more.<br />

Natural producers are the only pipeline participants who are<br />

tied to natural diamonds. All others, including De Beers, are<br />

enjoying the LGD fruits.<br />

Market share transition<br />

For the diamond industry, the US is the primary market<br />

for diamond jewellery, which accounts for more than 50<br />

per cent of the global market.<br />

In 2021, the US market share of diamonds increased<br />

from about 54 per cent to nearly 60 per cent.<br />

Other markets also showed a good recovery follwoing the<br />

2020 problems and overall the retail industry achieved a<br />

growth of nearly 32 per cent, an increase of about $US85<br />

billion. China and India were the other standout regions,<br />

with Hong Kong also recovering well.<br />

Retailers across the world had a dream run in 2021. Not<br />

only did their sales improve, but the margins also improved<br />

across retail. While an increase in online sales meant that<br />

margins tightened, demand meant that the pricing power<br />

of the retailers increased, leading to lower discounting and<br />

effectively higher margins.<br />

<strong>August</strong> <strong>2022</strong> | 95

Diamond Industry Update | FEATURE<br />


Source: Bureau of Economic<br />

Analysis, US Department of<br />

Commerce<br />

Chart adapted from IDEX<br />

Jewelry and watches<br />

Durable goods<br />

Nondurable goods<br />

Financial Services, Insurance & Non-profits<br />

Personal consumption expenditures<br />

Housing, Utilities, Healthcare & Other Services<br />

Food, Accomodation & Personal Care Services<br />

Transportation, Recreation & Personal Care Services<br />

Additionally, LGD sales also increased significantly, often<br />

providing better margins than the natural product.<br />

Due to the bull-whip (or ripple) effect in the polished diamonds<br />

pipeline, polished increased by about 55 per cent compared<br />

to 2020 to reach $US22 billion. This was despite the fact that<br />

retailers sold down from their existing inventories.<br />

Part of this increase is attributable to the rise in prices, which<br />

averaged about 10-15 per cent for the year. However, there<br />

were specific areas that had a much more substantial price<br />

rise.<br />

The Argyle mine, which provided about 2-3 million carats<br />

of mainly smaller and cheaper quality polished, closed in<br />

late 2020 and by 2021 all rough from the Argyle mine was<br />

exhausted. These goods were generally used in jewellery<br />

mass-produced for the US market.<br />

The prices for these goods remained manageable for a major<br />

part of the year; however, in the last quarter, as polished<br />

stocks from Argyle rough were used up, prices moved up<br />

to levels that were about 30-40 per cent above that in the<br />

previous year.<br />

As previously mentioned, a big chunk of the business lost due<br />

to the non-availability of the product from the Argyle mine was<br />

made up by the LGD industry, for which 2021 was even better<br />

than the previous year.<br />

The penetration of LGD in the US market significantly<br />

increased as more stores started experimenting with<br />

maintaining LGD stock, and the LGD market suppliers have<br />

made the most of the opportunity.<br />

Unlike previous predictions of LGD being restricted to fashion<br />

and lower-priced jewellery, bridal customers were also<br />

purchasing LGDs in significant numbers.<br />

This implied that larger stones, including in the 2-carat plus<br />

range, remained in demand. What became apparent was that<br />

retailers were offering customers a larger LGD in the same<br />

budget, making it a value offering for customers.<br />

At the lower end of the market, LGD jewellery could offer<br />

a better-looking product than the jewellery with polished<br />

diamonds from Argyle.<br />


Going Deep<br />

60%<br />

Polished diamond<br />

sales, in US<br />

Dollars, for 2021.<br />

26%<br />

of the world's<br />

rough diamond<br />

supply by value<br />

comes from<br />

Russia<br />

50%<br />

of polished<br />

diamonds used<br />

in jewellery are<br />

sourced from<br />

Alrosa<br />

95%<br />

of diamonds<br />

produced in<br />

Russia are mined<br />

by Alrosa<br />

Change coming<br />

While the market share of LGD-based jewellery is<br />

constantly increasing, a good portion of the wholesale<br />

demand for LGDs still continues to come from the<br />

introduction in new stores, rather than end-product<br />

demand.<br />

But this will change because of the sophistication and<br />

effectiveness of LGD promotions, including the marketing<br />

spend by Lightbox.<br />

Also, most of the suppliers of LGD jewellery come from<br />

a natural diamond background and many of the same<br />

practices such as memo offerings have started to be used<br />

in the LGD industry to push sales.<br />

Due to the bull-whip (or ripple) effect in the polished<br />

diamonds pipeline, polished increased by about 55<br />

per cent compared to 2020 to reach $US22 billion.<br />

Actually, the same emotional love message, used for<br />

natural diamonds, is now also applied to the LGD product.<br />

Diamond polishing has been a highly competitive business<br />

with very slim margins for most of the past decade.<br />

However, 2021 was a pleasant exception. The generally<br />

increasing polished prices meant that polishers were<br />

generally able to enjoy much larger margins.<br />

Apart from the margins, polishers also were able to ‘rightsize’<br />

their inventory. The high demand enabled them to sell<br />

‘non-moving’ stock, and almost all types of goods found<br />

buyers at an acceptable price.<br />

The increased turnover and profits, along with the rightsizing<br />

of the inventory, meant that many businesses in the<br />

midstream were able to significantly reduce their leverage.<br />

The total debt in the midstream was estimated to be a little<br />

above $US10 billion.<br />

While this was an increase over the previous year, it came<br />

on the back of significantly higher turnovers. With lowinterest<br />

rates, the industry would have wanted to take on<br />

C<br />

M<br />

Y<br />

CM<br />

MY<br />

CY<br />

CMY<br />

K<br />

96 | <strong>August</strong> <strong>2022</strong>

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Diamond Seasonally Industry Adjusted Update Consumption | FEATURE<br />

Expenditure<br />

Source: Bureau of Economic Analysis, U.S. Department of Commerce<br />




Source: Bureau of Economic<br />

Analysis, US Department of<br />

Commerce<br />

Chart adapted from IDEX<br />

-<br />

-<br />

-<br />

Seasonly adjusted consumption expenditure (SEAC) Index<br />

Year-on-Year change in SEAC for the month<br />

more debt – but the prevailing banking reluctance to<br />

‘come back’ to diamonds is still very visible.<br />

It will take time to earn back the trust and<br />

confidence that has been lost. Maybe this is for<br />

the better!<br />

When coupled with the highly profitable year, this<br />

meant that the balance sheet of the midstream has<br />

again become extremely healthy and the businesses<br />

more bankable. In a manner, this strength allowed<br />

the companies to indulge in the speculative frenzy<br />

on rough prices in the first quarter of <strong>2022</strong>.<br />

Rough producers faced their own challenge in<br />

2020, with many having to close their mines and<br />

operations either due to no sales or due to COVID-19<br />

outbreaks. Throughout 2021, most producers sold<br />

all the rough they could produce.<br />

A few of the larger rough producers were able<br />

to even sell down all their excess stocks, which<br />

they had built up over 2018 and 2019. Along with<br />

the sales, profitability also increased significantly<br />

for most producers, as rough prices followed<br />

polished diamond prices.<br />

However, they didn’t see the boom they could<br />

have had.<br />

Overall the rough producers sold about $US15.47<br />

billion of rough or an increase of about 65 per cent<br />

in rough sales over 2020.<br />

The rough market saw Gokhran, the Russian state<br />

treasury, sell about $US230 million of rough from<br />

their stockpile during 2021, which helped cool the<br />

market, especially for the smaller goods.<br />

While a couple of mines in Canada faced their<br />

own issues, Gahcho Kué and Renard both had<br />

production which is skewed to the lower end of<br />

the quality spectrum.<br />

The Renard mine had been struggling to stay<br />

afloat; however, with the increase in prices in the<br />

cheaper quality of goods, these mines and their<br />

mining companies could get a new lease of life, as<br />

the prices for cheaper diamonds are expected to<br />

remain robust.<br />

In a nutshell, the entire pipeline had a dream year,<br />

with great sales growth and fabulous profitability for<br />

most companies across the pipeline. What is more<br />

interesting is examining some of the other factors<br />

that accounted for the industry’s success.<br />

Pandemic a blessing in disguise<br />

While on the one hand, the reluctance of banks to<br />

finance the industry impacted the liquidity situation<br />

(and return on capital employed decreased), the<br />

consumers and downstream in general didn’t have<br />

to extend suppliers’ credit on the same levels as in<br />

previous years.<br />

Governmental COVID-stimulus packages produced<br />

tangible benefits for the jewellery sector.<br />

Rough producers faced their own challenge in<br />

2020, with many having to close their mines<br />

and operations either due to no sales or due<br />

to COVID-19 outbreaks.<br />

As COVID spread globally, governments reacted<br />

by imposing lockdowns and many businesses<br />

struggled to operate in those situations. While<br />

technology-based businesses could implement a<br />

work-from-home policy, service businesses could<br />

not do that and suffered greatly.<br />

To alleviate this issue, governments offered various<br />

stimulus packages to keep businesses afloat and<br />

help them restart after the lockdowns were relaxed.<br />

The US government offered the most generous<br />

stimulus from all governments, and over the course<br />

of two years, it amounted to nearly 25 per cent of the<br />

total GDP of the country. The stimulus was offered<br />

in various tranches and covered various different<br />

payouts and subsidies by the government.<br />

What is equally important from an analysis<br />

perspective is the timing of the stimulus. A<br />

quick summary of the stimulus packages,<br />

which were released by the US government,<br />

is shown in the table.<br />

The dates in the table indicate when the stimulus<br />

was approved. The amounts were actually spent<br />

over a much longer period. The main points are that,<br />

in real terms more than half of the money actually<br />

reached the consumers wallets in 2021.<br />

While many citizens did suffer in 2020 and a<br />

stimulus was necessary, the continued flow of<br />

stimulus in 2021 was the cherry on the cake, leading<br />

to a tremendous boost for the US economy.<br />

This boost in spending was uneven and was not felt<br />

uniformly across all sectors. Certain sectors such<br />

as services, hospitality, and transportation – many of<br />

which could also be termed as essential expenses<br />

for the consumers – faced severe headwinds as the<br />

need for spending on these areas was reduced.<br />

For example, the continued work-from-home<br />

policies for many top paying tech companies,<br />

automatically reduced fuel bills, a need for a vehicle,<br />

need for restaurants and cafes, business travel<br />

expenses, and so on.<br />

The US consumer has not focused on savings<br />

over the past few decades but the reduced need<br />

for spending along with the stimulus meant that<br />

consumers suddenly had extra funds in their<br />

pockets.<br />

Analysis of the data from the Bureau of Economic<br />

Analysis, US Department of Commerce shows<br />

the sectors that were the beneficiaries. Durable<br />

goods, which includes jewellery, seem to be the<br />

largest beneficiaries, as consumers seem to have<br />

channeled their excess disposable income into<br />

purchasing ‘hard assets’ for which they probably<br />

aspired, but did not have the income to acquire.<br />

98 | <strong>August</strong> <strong>2022</strong>



Chart adapted from IDEX<br />

Stimulus Package Name<br />

Passed<br />

Date<br />

Amount<br />

($ billion)<br />

Stimulus and Relief Package 1 & 2 Mar 2020 12 b<br />

SRP 3 (CARES Act) and 3.5 Mar/Apr 2020 2,724 b<br />

Lost Wage Assistance Jul 2020 44 b<br />

SRP 4 Dec 2020 900 b<br />

SRP 5 (America Rescue Plan) Mar 2021 1,900 b<br />

Total Approved Stimulus<br />

$5,580 b<br />

Up until the first quarter of <strong>2022</strong>, overall Personal Consumption expenditure<br />

had risen by about 18 per cent compared to the first quarter of 2019, while<br />

durable goods were up 43 per cent and jewellery was up by about 70 per cent.<br />

Clearly, the industry was better placed to garner the aspirational<br />

disposable income of consumers. Other US luxury sales also saw similar<br />

increases in the 50 per cent range, but jewellery was clearly one of the<br />

best performing sector.<br />

Beware misleading headlines<br />

There is generally a reference to year-on-year sales for the month in news<br />

reports, and in many cases, these have made the headlines for their doubledigit<br />

numbers. However, when sales have shown a large movement, it is<br />

important to have a view of both the overall value as well as a year-on-year<br />

(YoY) view of the sales.<br />

In the first quarter of <strong>2022</strong> many reports showed a double-digit growth rate<br />

on a YoY basis, and traders might have been misled into believing that the<br />

industry had been growing spectacularly, possibly even fueling some of the<br />

speculation which was seen in the first two months of the year.<br />

Looking at the complete numbers (those provided by the US Bureau of<br />

Economic Analysis are normalised on a month-to-month basis), we can<br />

see that the sales have moved in a band post-June/July of 2021. In fact,<br />

December, which is the peak season for the retail jewellery industry, had the<br />

second-lowest values in the June–December period.<br />

Dig deeper and you’ll see a rapid increase in the January–April period of<br />

2021, probably as consumer confidence increased along with some of the<br />

stimulus checks reaching the consumers.<br />

This means that even when absolute values remain in the same band for<br />

Q1 <strong>2022</strong>, you will still see high double-digit YoY growth for the month, with<br />

a decreasing pattern.<br />

The absolute numbers tell us that even if sales were to remain at current<br />

levels, you will start seeing low or negative YoY growth from June onwards.<br />

Hence it might be prudent for the industry to temper its expectations for the<br />

full year.<br />

This stimulus money along with the quantitative easing by the central<br />

bank – and low-interest rates – unleashed funds that found their way into<br />

investments in the financial sector, which drove up asset prices across the<br />

board - housing, stock markets, cryptocurrencies, or other assets - which<br />

in turn fed into the demand through the wealth effect.<br />

Credit card borrowing (the costliest debt) also fell significantly from the all-<br />





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Diamond Industry Update | FEATURE<br />

It is just a matter of time before<br />

countries that produce natural<br />

diamonds fully realise the irreversible<br />

damage the legitimisation of LGDs<br />

has caused to the natural diamond<br />

pipeline. In any case, it’s probably too<br />

late for Botswana and Namibia to<br />

rebel against De Beers.<br />

Image: Diavik Mine<br />

time high at the end of 2019 as many paid down<br />

their borrowings.<br />

Time to pay the bills<br />

The 2021 party, however, seems to be ending and it<br />

may be the time to pay the bills.<br />

Most of the stimulus has been paid out and various<br />

moratoriums, which had been introduced in the<br />

US, have lapsed. The stimulus and the resulting<br />

demand had pushed up prices and inflation to<br />

levels not seen by the current generation.<br />

The US Federal Reserve has already started<br />

to react (though it could, arguably, be late) to<br />

the higher inflation through increased interest<br />

rates, and is set to reverse its quantitative easing<br />

measures, albeit gradually. Consumer credit card<br />

debt has been creeping up and might rival the<br />

peak levels by the end of the year.<br />

All this was expected to happen along with<br />

the tightening in the labour markets, called<br />

‘great resignation’ by the media. The rising<br />

rates in the US have another knock-on effect,<br />

that of strengthening the dollar. In normal<br />

circumstances, a strong dollar is a negative<br />

factor for growth in the diamond industry.<br />

The <strong>2022</strong> financial market situation was on the<br />

radar of most financial market observers and is<br />

not a surprise. It was expected that the diamond<br />

industry too would get back to its ’normal’ state of<br />

operations, besieged by the usual problems of low<br />

growth and insufficient profitability.<br />

Even a best-case scenario for the diamond industry<br />

projected growth at a retail level of not more than<br />

1-2 per cent for the year.<br />

Even considering a flat scenario of a 0 per cent<br />

growth implied that the polished sales would drop<br />

by about $US1 billion and the rough demand would<br />

be nearly flat, as the midstream is expected to<br />

stock up again.<br />

Looking at these projections the speculative frenzy<br />

in the markets in the first two months of <strong>2022</strong> was<br />

out of place and expected to correct.<br />

All that was before the conflict in Ukraine started.<br />

Impact of invasion<br />

The Russian invasion of Ukraine and the resultant<br />

actions taken by the Western governments<br />

could totally upend any business projections or<br />

plans which businesses might have budgeted<br />

for, especially because of the way our industry is<br />

placed, because about 26 per cent of the rough<br />

by value, and about 32 per cent by volume, was<br />

supplied by Alrosa, a company majority-owned<br />

by the Russian government.<br />

It is increasingly clear that Russia is waging<br />

attrition warfare, a military strategy of belligerent<br />

attempts to win by wearing down the enemy<br />

to the point of collapse. This may take many<br />

months, if not years – and the hostility might still<br />

expand beyond other borders.<br />

When the war began, the US followed by other<br />

European governments, quickly applied financial<br />

sanctions on the Russian government. They<br />

later included companies like Alrosa, which,<br />

they claimed, were financing the Russian war on<br />

Ukraine.<br />

The first round of US sanctions prevented Alrosa<br />

from doing business in the US, something that<br />

was almost negligible and had almost no impact.<br />

The latter round of sanctions saw Alrosa added<br />

to the Office of Foreign Assets Control Specially-<br />

Designated Nationals list. This sanction is<br />

much more damaging because it means that no<br />

financial flows can pass through the US.<br />

All transactions in the US dollar have to pass<br />

through banks in the US and with this inclusion,<br />

no bank would be willing to process any<br />

payments from customers to Alrosa, thereby<br />

throttling the source of income for the country.<br />

When the sanctions were announced, the<br />

industry adopted a wait-and-watch attitude.<br />

The speculation in the first couple of months had<br />

dulled the mid-stream’s appetite for rough and,<br />

in a way, the forced absence of rough supplies<br />

from Russia was even considered a blessing in<br />

disguise for the industry, which had started to<br />

again pile on the stock and debt.<br />

Companies were hoping for a quick resolution to<br />

the conflict and wishing that things would go back<br />

to normal. However, hope is not a strategy. As the<br />

conflict drags on, the solution seems to be squarely<br />

in the realm of politics.<br />

Unfortunately, the fate of the conflict will seemingly<br />

be determined by people who have very little to<br />

lose, which would mean that a resolution and the<br />

eventual lifting of financial sanctions seem to now<br />

be a distant possibility.<br />

Living with sanctions<br />

The world had been effectively uni-polar – with<br />

only one dominant nation – for more than 30<br />

years. Nations across the world are now aware<br />

of the damages that financial sanctions can<br />

cause and now understand the will of the US<br />

to weaponise them.<br />

As we go forward, the world will start becoming<br />

multi-polar – driven by multiple strong and<br />

competing nations – once again with the trade<br />

of different countries and blocs being primarily<br />

restricted to each bloc separately.<br />

In the past decade, financial sanctions have<br />

increasingly become the US weapon of choice,<br />

given its dominant position in the global financial<br />

system. Raghuram Rajan, a leading economist,<br />

termed financial sanctions as ‘weapons of mass<br />

destruction’ due to their blunt nature in trying to<br />

effect change.<br />

While sanctions might be inhibitors and have a<br />

preventive impact, they have not shown any success<br />

in providing immediate solutions once a conflict has<br />

100 | <strong>August</strong> <strong>2022</strong>

FEATURE | Diamond Industry Update<br />

TACY’S 2020 - <strong>2022</strong><br />






Direct costs of<br />

rough production<br />

7.3<br />

Direct cost of production<br />

Including stock value depreciation<br />

Rough gem<br />

Lab-grown<br />

Rough production<br />

value<br />

14.07<br />


0.0<br />

ANGOLA<br />

1.7<br />

DRC<br />

0.35<br />


4.7<br />


0.84 1.42<br />

RUSSIA<br />

2.73<br />

CANADA<br />

1.53<br />


0.43<br />


0.12<br />

OTHERS<br />

0.25<br />



OTHERS<br />

2<br />

Mines sales to<br />

industry<br />

15.47<br />


6.68<br />

ALROSA<br />

3.97<br />

DE BEERS<br />

4.82<br />



Net rough used for<br />

local production<br />

15.89<br />


0.15<br />

ISRAEL<br />

0.41<br />

INDIA<br />

13.2<br />

USA<br />

0.11<br />


0.87<br />

CHINA<br />

0.54<br />

RUSSIA<br />

0.23<br />

OTHERS<br />

0.38<br />

Value of polished<br />

production<br />

20.58<br />


0.19<br />

ISRAEL<br />

0.55<br />

INDIA<br />

17.13<br />

USA<br />

0.14<br />


1.06<br />

CHINA<br />

0.69<br />

RUSSIA<br />

0.31<br />

OTHERS<br />

0.51<br />

Polished sales<br />

22.10<br />

Value of recycled<br />

polished<br />

0.23<br />

Value of recycled diamonds<br />

(Consumer sell backs) re-entering pipeline<br />

Retail Diamond<br />

Content<br />

21.89<br />

USA&<br />

CANADA<br />

12.61<br />

EUROPE<br />

& SA<br />

1.69<br />

HK/CHINA<br />

TAIWAN<br />

2.47<br />

JAPAN<br />

0.97<br />

INDIA<br />

1.35<br />

GULF&<br />

TURKEY<br />

1.39<br />

REST OF<br />

WORLD<br />

1.41<br />

Retail of Diamond<br />

<strong>Jeweller</strong>y<br />

85.55<br />

USA&<br />

CANADA<br />

51.23<br />

EUROPE<br />

& SA<br />

5.37<br />

HK/CHINA<br />

TAIWAN<br />

10.68<br />

JAPAN<br />

3.34<br />

INDIA<br />

4.94<br />

GULF&<br />

TURKEY<br />

6.13<br />

REST OF<br />

WORLD<br />

3.86<br />

© <strong>2022</strong> COPYRIGHTS BY TACY LTD. AND<br />



<strong>August</strong> <strong>2022</strong> | 101

Diamond Industry Update | FEATURE<br />

De Beers' Lightbox<br />

started. Countries and citizens may go well beyond<br />

their perceived capacities to face sanctions when<br />

they feel that they are being unjustly treated.<br />

Without going into which side is justified in their<br />

view, sanctions can be considered unilateral and<br />

gaining their power from the dollar being the<br />

primary global currency.<br />

The manner in which governments have gone about<br />

applying sanctions also reeks of hypocrisy. Some<br />

countries give waivers to sanctions, which are<br />

inconvenient, or can cause significant upheaval.<br />

For example, waivers have been given on<br />

products such as oil, natural gas, uranium and<br />

titanium where Russia is a major supplier for<br />

the nations applying the sanctions. Developing<br />

nations have started complaining about the<br />

impact of the sanctions on countries that are,<br />

effectively, innocent bystanders.<br />

Another notable aspect of this Russia-Ukraine<br />

war was how quickly businesses, including<br />

jewellery retailers and brands, decided that they<br />

would not by Russian-origin diamonds. Many<br />

have a constant customer interface and probably<br />

reacted in this fashion due to their individual<br />

political, social or moral compulsions.<br />

These ‘business sanctions’ have further affected<br />

the pitch for the industry. Alrosa, in fact, had been at<br />

the forefront of promoting industry self-regulation<br />

initiatives such as the Responsible <strong>Jeweller</strong>y<br />

Council, and the updated World Diamond Council<br />

System of Warranties. It is ironic that now these<br />

very same chain-of-warranty mechanisms are<br />

being used by the industry to exclude Alrosa.<br />

In future, other countries and companies might not<br />

be willing to join such cooperative mechanisms,<br />

as no country or company can confidently say that<br />

it could not be next to face sanctions. Irrespective<br />

of how long the sanctions last, it is clear that the<br />

industry will find it extremely difficult to come to a<br />

common ground, or agree on, any self-regulation<br />

mechanism in the future.<br />

New environment<br />

It is clear that for the diamond industry, sanctions<br />

are here to stay and the industry needs to be ready<br />

for the long haul, and choose which side to take.<br />

The sanctions will probably continue even after the<br />

conflict stops.<br />

One of the primary strengths of the industry is its<br />

resilience and the adaptability of its companies,<br />

as it has proven again and again over the decades.<br />

Reports indicate that Russian rough has already<br />

started finding its way to the market.<br />

Without going into which side is justified<br />

in their view, sanctions can be considered<br />

unilateral and gaining their power from the<br />

dollar being the primary global currency.<br />

In the event that the industry transitions into a<br />

multi-polar environment, companies clearly need<br />

to take sides, having to scale down their business in<br />

order for them to continue being compliant.<br />

With the current regulations in place, the industry<br />

is likely to be split down the middle, with some<br />

companies abiding by the sanctions and other<br />

companies dealing in Russian diamonds, but not<br />

supplying them to the developed world.<br />

We are confident even in a multi-polar world that<br />

the industry will continue to adapt and thrive as it<br />

has done in the past. Unfortunately sanctions tend<br />

to provide the greatest reward to companies that<br />

dodge sanctions, at the cost of the responsible<br />

companies leading to a fall in the industry<br />

compliance standards.<br />

Matter of cost<br />

The US has been trying for more than a decade<br />

to get the diamond industry to segregate its<br />

inventories. This was initially proposed for<br />

diamonds from Zimbabwe. Various chain-ofcustody<br />

initiatives were proposed by the US<br />

government agencies to prevent Zimbabwean<br />

diamonds being sold in the US. These efforts met<br />

with at best partial success. Some diamonds from<br />

Zimbabwe were easily identifiable and the volume<br />

of supply from the country was limited.<br />

The authors wrote extensively at that point about<br />

the segregation of diamonds. The views expressed<br />

remain the same even after 10 years, namely:<br />

• Segregation of larger stones (>0.20 carats),<br />

which are generally polished individually, can be<br />

done managed by the industry.<br />

• The challenge is in the smaller diamonds,<br />

which are traded and sold in parcels with parcels<br />

being mixed multiple times.<br />

• It is still feasible to segregate diamonds,<br />

however there is a significant cost, which<br />

would need to be borne by the midstream for<br />

maintaining the diamonds separately.<br />

• The authors questioned the ability of the<br />

midstream to bear those costs, which were<br />

more than $US1 billion on an annual basis.<br />

Costs had to be passed on to the consumer or<br />

borne by the mines.<br />

• It could mean an increase in polished prices<br />

of more than 10 per cent in the concerned<br />

category of goods.<br />

Our observations in the matter still hold. However<br />

with the current emotional support for Ukraine<br />

and the general inflationary environment in many<br />

developed nations, it might be easier to pass on<br />

these costs to the consumers. It is to be seen<br />

whether the resolve will remain once the consumer<br />

attention moves on to other issues.<br />

Availability<br />

Aside from the cost perspective, the removal of<br />

supplies from Alrosa could cause severe availability<br />

problems for certain kinds of companies. As<br />

mentioned, Alrosa diamonds represent about 26 per<br />

cent of diamonds by value and about 32 per cent by<br />

volume. Clearly, their diamonds are smaller with a<br />

102 | <strong>August</strong> <strong>2022</strong>


LGD producers also<br />

have not scaled up their<br />

capacities to a stage<br />

where they can replace<br />

Alrosa production.”<br />

UNIQUE<br />



lower average cost as compared to the market.<br />

The impact of the Alrosa sanctions across different categories of diamonds<br />

is different, given the production mix of their mines.<br />

Polished which is produced from Alrosa rough, has a much higher share in<br />

diamond categories that are used by luxury, lifestyle, or high-fashion brands.<br />

In many of these categories, Alrosa accounts for over 50 per cent of the<br />

polished diamonds supplied.<br />

Companies in these sectors could face serious issues in obtaining supplies,<br />

especially in the latter half of <strong>2022</strong>. It is indeed ironic, that many of these<br />

luxury brands were some of the first to stop using Russian-origin diamonds.<br />

Crossing the Rubicon<br />

Luxury brands take great care in cultivating their image over decades<br />

and most big brands have stayed away from using lab-grown diamonds<br />

in their jewellery or watches. Going forward, with the Alrosa supplies not<br />

useable, they could face a supply shock, as there might not be enough<br />

diamonds to meet their requirements.<br />

The question remains whether they will cross the Rubicon and decide<br />

to use LGD in their luxury products and whether their consumers will<br />

accept those products and the ‘advertising spin’ their marketing teams<br />

will give for that decision.<br />

The only segment that would be laughing all the way to the bank would be<br />

the LGD industry.<br />

Companies have had a phenomenal year, and supply shortages can lead to<br />

new business opportunities for LGD jewellery companies, as retailers try to<br />

fill their shelves for the upcoming Christmas and holiday season.<br />

LGD producers also have not scaled up their capacities to a stage where<br />

they can replace Alrosa production. For a change, they might see price<br />

increases in the second half of <strong>2022</strong>.<br />

More than the incremental business, the shortages will open new<br />

opportunities for LGD suppliers, as retailers who would have otherwise not<br />

considered selling LGD jewellery are forced to go ahead and offer the product.<br />

No wonder the current market conditions might seem like heaven for the LGD<br />

industry, while diamond-producing countries continue to lick their wounds.<br />

Diamonds from $10/ct<br />

Full Range on display at STAND A20<br />

opposite the Nationwide lounge at the<br />

International <strong>Jeweller</strong>y Fair<br />

ICC Sydney, Darling Harbour<br />

<strong>August</strong> 27-29<br />

CHAIM EVEN-ZOHAR is a retired consultant to the diamond industry<br />

and the former editor of the Israel Diamond Exchange’s Diamond<br />

Intelligence Briefs. PRANAY NARVEKAR is director of Pharos Beam<br />

Consulting, a firm providing analysis and insights into the supply,<br />

financing, and structure of the diamond industry.


Strategy<br />

Quick fix training tips for<br />

outstanding customer care<br />

When it comes to retail, fewer things matter more than providing quality customer service.<br />

KIZER & BENDER offer practical ways to improve the impression left upon customers.<br />

While it’s true that we live in an everchanging<br />

world, in the realm of retail,<br />

one truth is standing the test of time –<br />

the importance of high-quality customer<br />

service.<br />

Relationships with valuable customers can<br />

be broken in an instant due to poor service.<br />

According to a recent study by Redpoint<br />

Global, a customer engagement and data<br />

management company, 39 per cent of<br />

customers surveyed said that will not do<br />

business with a business that fails to offer<br />

some kind of personalised experience.<br />

Furthermore, business consultants<br />

Verint Systems recently released a report<br />

revealing that 64 per cent of customers<br />

surveys have switched companies at least<br />

once due to poor customer service.<br />

Retailers should take note of the<br />

visceral reaction customers have to<br />

poor customer service, and conversely,<br />

reflect on the lasting impact positive<br />

interactions can have on the way a<br />

customer views a business.<br />

Over the years we’ve written extensively<br />

about customer service, or more to the<br />

point, the lack of it. Bad service is rampant<br />

in every type of retail store and we've<br />

experienced it ourselves.<br />

For example, a salesperson at a bridal<br />

store who couldn’t be bothered to help<br />

us find the perfect gown for an upcoming<br />

wedding. A waitress, who took one meal to<br />

our table, then waited a further 25 minutes<br />

to deliver the second.<br />

Then there was the staff member at the<br />

arts and crafts store who couldn’t tell us<br />

about the products on offer because “she’s<br />

not a crafter.” We could go on forever, and<br />

we’re sure you could too.<br />

Too many customers expect to receive poor<br />

service from staff members who are not<br />

equipped to do their jobs.<br />

If you’re honest, you might even be willing<br />

to admit that bad service occasionally<br />

happens in your store as well. And when it<br />

does, it’s a big deal. There’s an older retail<br />

study to consider:<br />

• 15 per cent of customers will refuse to<br />

shop at a store again due to poor pricing.<br />

• 15 per cent of customers will refuse<br />

to shop at a store again due to poor<br />

product selection<br />

• 70 per cent of customers will refuse to<br />

shop at a store again due to a negative<br />

interaction with the staff.<br />

Let that sink in for a moment! The good<br />

news is that the 70 per cent statistic is<br />

within your control.<br />

How important is training in your store? You<br />

have a big opportunity right in front of you.<br />

Customers who visit your store will come<br />

with high hopes and lists in hand. The<br />

way they are treated while in the store<br />

determines whether they return, and<br />

perhaps even more importantly, what they<br />

tell others about what they think about your<br />

store.<br />

Here’s one last statistic to consider –<br />

according to research performed by<br />

business consultants thinkJar, just one<br />

It’s dangerous<br />

to assume that<br />

every staff<br />

member knows<br />

every product<br />

inside and out,<br />

so consider<br />

hosting<br />

monthly<br />

meetings that<br />

focus on new<br />

product lines.<br />

in 26 customers will report a negative<br />

experience to the business itself.<br />

That’s just 13 per cent of customers! This<br />

means that if your staff negatively impact<br />

the reputation of your store, the chances<br />

are you may not even hear about it. The<br />

reputation of your store will be damaged,<br />

and you won’t have the chance to rectify<br />

the issue.<br />

Today is the perfect time to get your staff<br />

focused and back on track!<br />

Back to basics<br />

It’s important each member of staff has<br />

a thorough understanding of the basic<br />

principles of customer service.<br />

There should be no uncertainty over<br />

exactly how you expect customers to be<br />

greeted, and how returns, special orders<br />

and requests are to be handled.<br />

Try to remember that not everyone shares<br />

the same perspective on social graces<br />

or has benefited from etiquette training.<br />

What might seem like common sense to<br />

you, with the benefit of experience, may not<br />

have occurred to a younger employee.<br />

Share with your staff the important impact<br />

quality customer service has on your<br />

business and the role they must play within<br />

its implementation.<br />

Prepare new hires for success<br />

New hires need to feel comfortable and<br />

productive from their very first day on<br />

the job.<br />

A New Associate Orientation Program<br />

will ensure that they do. All employees<br />

104 | <strong>August</strong> <strong>2022</strong>

Business Strategy<br />

need to feel a sense of victory and<br />

accomplishment, so assign each new hire<br />

a simple task to complete on their first day<br />

of work. Remember to meet for a quick<br />

discussion at the end of the shift to discuss<br />

how the day went.<br />

One effective approach is to pair<br />

each new employee with a veteran of<br />

the business who can mentor them<br />

throughout their first weeks on the job.<br />

Most employees focus on making a good<br />

first impression and it’s a lot easier to<br />

ask an assigned mentor a question than<br />

it is to ask the boss.<br />

Hands-on training<br />

Make product knowledge an important<br />

part of your training program.<br />

It’s dangerous to assume that every staff<br />

member knows every product inside and<br />

out, so consider hosting monthly meetings<br />

that focus on new product lines. Don’t<br />

forget about new applications for old<br />

favorites and covering the basics.<br />

To make it more straightforward, select<br />

one particular category per meeting<br />

and discuss what’s important about the<br />

product, its application, and technique.<br />

Make these meetings hands-on training<br />

sessions; it’s much easier to sell a product<br />

once you’ve handled it.<br />

When the store is quiet you can conduct<br />

your training right on the sales floor.<br />

It’s easy to point out what’s important<br />

about a product category when it’s right<br />

in front of you. You’re sure to attract the<br />

attention of customers, so let them in<br />

the fun. They might even have a trick or<br />

two to share.<br />

Daily 10<br />

Gather your staff on the sales floor each<br />

morning, or at least three times per week,<br />

for a short meeting before you open for<br />

business.<br />

Talk for 10 minutes about products,<br />

techniques, applications, customer<br />

requests, policies, trade shows, industry<br />

news, associate experiences, and<br />

upcoming events – whatever makes sense<br />

that particular morning.<br />

Offer your staff the opportunity to share<br />

any information they feel is important<br />

too, as their perspective can help you<br />

gain stronger insight into the views of<br />

your customers.<br />

Clear and consistent communication<br />

keeps everyone familiar and in the loop,<br />

as well as on their toes.<br />

Give me 5!<br />

Here’s another daily exercise that will<br />

encourage increased sales performance.<br />

At a staff meeting, hold up a product and<br />

ask the sales staff to list any items that<br />

could be added to the purchase to increase<br />

the value of the sale.<br />

Add-on selling is good for business and it’s<br />

good for customers. You’ll up your average<br />

sale and customers won’t have to return<br />

to the store to pick up the additional items<br />

they need but forgot to buy.<br />

On-going training programs<br />

Devote one store meeting a month to staff<br />

training.<br />

Between these meetings, provide access<br />

to books, websites, and videos for staff<br />

members can study on their own. We know<br />

retailers who allow their top performers to<br />

attend classes offered at trade shows.<br />

Others have set up in-store ‘universities’<br />

where employees are rewarded with<br />

raises, and even promotions, each time<br />

they earn a new ‘degree’ as a part of the<br />

training.<br />

Clear expectations<br />

Set aside a few minutes each morning<br />

to complete an opening checklist that<br />




Products<br />

Ensure<br />

employees are<br />

up to date on all<br />

that’s offered.<br />

Technique<br />

Remind<br />

employees of<br />

expectations<br />

with customer<br />

service.<br />

News<br />

Share any<br />

relevant industry<br />

developments or<br />

business updates.<br />

Calendar<br />

Remind<br />

employees of<br />

any significant<br />

upcoming events.<br />

Feedback<br />

Offer your<br />

employees the<br />

chance to share<br />

any insight they<br />

feel is important.<br />

outlines everything planned for the store<br />

across the coming day.<br />

The checklist should include the daily<br />

overall store sales goal, departmental<br />

goals, item of the day, in-store specials,<br />

classes, and upcoming sales, events, and<br />

promotions.<br />

In short, anything and everything staff<br />

members need to know about the store.<br />

Managers can also prepare a closing<br />

checklist of tasks that need to be<br />

completed before the store re-opens<br />

the following day. The internet has many<br />

templates available if you don’t have time<br />

to design your own.<br />

Business cards<br />

Every member of staff – full and part-time<br />

– should have business cards that are<br />

personalised with name and title.<br />

You can buy hundreds of business cards<br />

at most instant printers at very little cost.<br />

salespeople, in particular, are worth this<br />

small investment.<br />

Remember that each card that’s<br />

distributed as a mini-advertisement for<br />

your store.<br />

Let your stars shine!<br />

Why do all the training yourself when<br />

your experienced members of staff<br />

can help out?<br />

Many stores have employees who excel<br />

in differing areas. Allow experienced<br />

employees to do the hands-on training<br />

for that category or product line.<br />

You can incorporate these experienced<br />

employees into the approaches listed<br />

above too - don’t be afraid to delegate!<br />


BENDER are retail strategists,<br />

authors and consultants. Visit:<br />

kizerandbender.com<br />

<strong>August</strong> <strong>2022</strong> | 105


Selling<br />

Repairing our sales win rates<br />

Quality over quantity is one of the most well-known pieces of business wisdom, however how many salespeople ever stop<br />

and think about what it really means? DAVID BROCK explores the simple math behind an important business philosophy.<br />

I’ve long discussed the importance of<br />

win/loss analysis in improving business<br />

performance, and to this day, I continue<br />

to be amazed at how little we understand<br />

about what causes us to win and lose in the<br />

world of business.<br />

It’s important to understand why we win,<br />

why we lose, and how we maximise our<br />

performance and productivity.<br />

Let’s explore a straightforward example.<br />

Assume three members of staff have the<br />

same quota of $500,000 in annual sales<br />

and each has the same average deal/sale<br />

size of $10,000.<br />

Let’s also assume that they require the<br />

same number of opportunities to find a<br />

qualified sale. Let’s assume 10 prospecting<br />

efforts produce one qualified sale.<br />

With a 20 per cent win rate, it takes<br />

Salesperson A 2,500 prospective<br />

opportunities to fulfill the quota.<br />

Salesperson B, with a win rate of 30<br />

per cent, can achieve that task in 1,670<br />

prospective opportunities. Our strongest<br />

performing hypothetical staff member,<br />

Salesperson C, can achieve the quota with<br />

1,000 prospective opportunities with a win<br />

rate of 50 per cent.<br />

This is the kind of maths all retailers<br />

should be performing, however in reality,<br />

I find very few sales teams, or managers,<br />

who have spent time thinking about what<br />

this means.<br />

Ask the big questions<br />

Sadly, the rare few managers and sales<br />

staff who do track this kind of data tend to<br />

view it as a kind of ‘law of nature’ and not<br />

something that can be improved.<br />

Across the many businesses I’ve<br />

encountered, too few managers and sales<br />

staff are willing to challenge themselves<br />

and ask the important questions about<br />

their practice.<br />

How do we increase our win rates? How do<br />

we increase our average deal/sale sizes?<br />

How do we compress the sales cycle?<br />

How do we create greater yield from our<br />

Those with poorer win rates fall into the trap of chasing so many potential<br />

sales they fail to invest the time needed to win at the macro level.<br />

prospecting efforts? How do we effectively<br />

improve the performance of each person<br />

on the team?<br />

When these kinds of questions are<br />

proposed, the answer is always the same:<br />

“Just do more!”<br />

You may read this and find yourself<br />

thinking, “Well Dave, you are just showing<br />

that maths works, what’s your point?”<br />

Once we start looking at these big<br />

questions with the above example in mind,<br />

we must then ask what it is that causes<br />

such a difference in the performance of<br />

one salesperson to another.<br />

What are the salespeople with 50 per cent<br />

win rates doing differently than those<br />

with few wins? How can we get others<br />

to emulate the achievements of our elite<br />

performers? These are the right questions.<br />

Quality over quantity<br />

Our simple example above treats<br />

everything other than win rates as being<br />

relatively equal, and we know that reality is<br />

never that straightforward.<br />

Sales staff with higher win rates tend to<br />

have higher average deal/sales values.<br />

The elite performers also tend to have<br />

higher yields with their prospecting<br />

efforts. It’s natural that more successful<br />

salespeople are more focused on the<br />

right prospects and will rarely be caught<br />

wasting time on low-quality opportunities.<br />

It’s natural that<br />

more successful<br />

salespeople are<br />

more focused<br />

on the right<br />

prospects and<br />

will rarely<br />

be caught<br />

wasting time<br />

on low-quality<br />

opportunities.<br />

Because sales staff with higher win rates<br />

need to chase fewer opportunities, they<br />

can invest more time in the opportunities<br />

they select. This practice dramatically<br />

improves customer experience and by<br />

extension, the propensity to purchase.<br />

Comparatively, those with poorer win<br />

rates fall into the trap of chasing so many<br />

potential sales they fail to invest the time<br />

needed to win at the macro level.<br />

This is what I like to call a ‘performance<br />

death spiral’ because by reducing the<br />

time and energy spent on each individual<br />

prospective customer, failing salespeople<br />

chase much-needed wins by contacting<br />

or dealing with more and more prospects,<br />

falling into a vicious cycle of failure.<br />

Over time, I’ve analysed businesses and<br />

seen these kinds of trends repeating<br />

themselves. Today, it’s all too common to<br />

see salespeople settling for single-digit<br />

sales performances.<br />

The far too common focus on volume<br />

of contacts with prospective clients has<br />

had a horrible impact on performance<br />

on average. Many promote reducing the<br />

amount of time spent on each call and<br />

increasing the number of calls made or<br />

increasing the number of emails sent out.<br />

This is rarely the right message!<br />

Focus on what works<br />

The key to driving performance for<br />

salespeople is rarely increasing overall<br />

activity. Improvement comes from<br />

producing more and more from each<br />

individual sales opportunity.<br />

Instead of doing more of what doesn’t<br />

work, faster, we must focus on what<br />

works. Discovering what it is that produces<br />

success within these interactions and<br />

learning to execute more effectively.<br />

DAVID BROCK is the founder of<br />

Partners in Excellence, a consulting<br />

and business services company. Brock<br />

has a background in sales, marketing<br />

and management. Learn more:<br />

partnersinexcellenceblog.com<br />

106 | <strong>August</strong> <strong>2022</strong>


Management<br />

Five human behaviour myths busted<br />

If behavioural science is so good, why aren’t more people using it?<br />

BRI WILLIAMS examines a few common myths about consumer decision-making.<br />

There’s something that has always<br />

confounded me. When people read or hear<br />

about behavioural economics, and more<br />

broadly, behavioural science, they typically<br />

get excited.<br />

Suddenly the strange things people do, and<br />

the strange decisions we make, start to<br />

make sense.<br />

Why do I over pack for my holiday?<br />

Underestimate the time a project will take?<br />

Buy stuff on sale, just because it’s on sale?<br />

The issue is we have the tendency to<br />

quickly forget these insights. Sure, they<br />

might return as a fun story or anecdote to<br />

share at the next dinner party, but all-toooften<br />

we completely miss the opportunity<br />

to apply these insights to our professional<br />

work.<br />

Bottom line? The science of behavioural<br />

influence has failed to influence behaviour!<br />

Let’s examine several beliefs about<br />

behaviour that have been busted by<br />

science, however, remain stubbornly<br />

ingrained in the public’s consciousness.<br />

Money motivates us<br />

After a point at which our basic needs are<br />

met, money doesn’t motivate performance.<br />

In fact, in cognitively challenging<br />

tasks, monetary incentives can impair<br />

performance.<br />

This should be widely understood by now,<br />

however, what is the thing that comes<br />

to mind immediately when we’re talking<br />

about motivating people? Money! When<br />

we ask the people we’re trying to motivate,<br />

such as our sales staff, what do they think<br />

would work best? Money!<br />

Money is alluring for two reasons. It is<br />

unequivocal. You know its value. A dollar<br />

is a dollar. And secondly money is flexible.<br />

You get to choose what you do with it.<br />

But money is also impersonal and<br />

transactional. It makes us more selfish,<br />

creates a sense of entitlement and dilutes<br />

reciprocity. When it comes to motivating<br />

staff, we should look for other avenues<br />

beyond simply a bigger payday.<br />

Remember that people think based on emotions and feelings just as<br />

often as they do cold, hard logic.<br />

Know better do better<br />

Education and information campaigns<br />

are great. Great for advertising agencies,<br />

that is, because they land big contracts to<br />

create ads and collateral.<br />

However, do information campaigns<br />

change behaviour? Rarely!<br />

Information doesn’t mean ‘info-motion’.<br />

Knowing doesn’t mean doing. We know we<br />

should save for retirement, but in Australia<br />

we have compulsory superannuation<br />

because individuals can’t be trusted to do it<br />

themselves!<br />

It’s hard to argue with providing people<br />

information, of course. It’s safe. But it also<br />

means the onus is shifted to the recipient<br />

to engage with, understand and act on<br />

what they learn.<br />

Specify<br />

The more specific your goal the better,<br />

right? How else will you know what to<br />

do? The problem with making your goals<br />

precise is it makes them boring.<br />

To paraphrase the words of behavioural<br />

scientist and author Ayelet Fishbach, it<br />

turns it into a chore, and we don’t like<br />

chores.<br />

You are better making goals somewhat<br />

abstract so you are reminded of the<br />

purpose of your goal. Focusing on the<br />

goal of ‘looking after my fitness’ is better<br />

than ‘going to the gym five times per<br />

week’ because it leaves the door for more<br />

The more<br />

specific your<br />

goal, the better,<br />

right? How else<br />

will you know<br />

what to do? The<br />

problem with<br />

making your<br />

goals concrete<br />

is it makes them<br />

boring.<br />

creative ways of achieving the goal.<br />

People tend to think getting into the nittygritty<br />

is the best approach. SMART goals<br />

(specific, measurable, achievable, relevant<br />

and time-bound), for example, that value<br />

specificity and getting down to the tiny<br />

details.<br />

In a retail environment this seems to me to<br />

be more about control and micromanaging<br />

than it is about getting the best results<br />

from your staff.<br />

We are rational<br />

The biggest myth of all is that we are<br />

rational; that customers always make<br />

decisions on the basis of facts and logic.<br />

It’s a nice thought; however, it’s not true.<br />

We have a habit of explaining most of our<br />

day away. Logic is retrospective however;<br />

we join the dots and explain our behaviour<br />

in hindsight. Logic is also hypothetical and<br />

we believe we’ll act in a particular way in<br />

a future circumstance, even though we<br />

probably won’t.<br />

The problem, when it comes to influencing<br />

people in an attempt to adjust their<br />

behaviour, is we think logic will work as<br />

a superior vehicle to play on feelings and<br />

associations.<br />

Think about it like this – and I’m doing it<br />

right now – my article is trying to convince<br />

you of the merit of behavioural science by<br />

laying out my argument piece-by-piece. It’s<br />

human nature, but it’s not always effective.<br />

In order to get the best out of your staff,<br />

don’t be afraid to look for ways beyond just<br />

money to promote improved performance.<br />

Remember that people think based on<br />

emotions and feelings just as often as they<br />

do cold, hard logic. Find ways to make<br />

goals achievable in a creative sense – avoid<br />

becoming stagnant and trapped by detail.<br />

BRI WILLIAMS is founder of People<br />

Patterns, a specialist consultancy<br />

that applies behavioural science to<br />

everyday business issues.<br />

Visit: www.briwilliams.com<br />

<strong>August</strong> <strong>2022</strong> | 107


Marketing & PR<br />

To TikTok or not to TikTok?<br />

There’s a shiny new tool in the social media marketing world and it’s called TikTok.<br />

SHANE O’NEILL weighs up the pros and cons of the application for retailers.<br />

The latest social media ‘buzz’ for business<br />

is TikTok and the advantages it can offer<br />

businesses. You could add it to your<br />

marketing strategy, but should you?<br />

Sure, TikTok is fun; however, is it the<br />

right audience at the right time for a<br />

retail jeweller?<br />

Before you jump onto a new social media<br />

platform, it’s wise to define your goals in<br />

using the channel.<br />

You can’t do everything and do it well,<br />

and if you aren’t doing something well,<br />

what exactly are you doing?<br />

Numbers<br />

As a small business you can almost<br />

justify joining just about any social media<br />

channel. Depending on your strategy and<br />

staff skills, it’s possible to be successful<br />

on various platforms.<br />

However, that’s not typical for most<br />

retailers. Unless you have endless<br />

marketing dollars, there are usually more<br />

relevant channels than the newest social<br />

channel du jour.<br />

When Google+ was launched in 2011, many<br />

thought it would be the Facebook killer.<br />

Instead, it never caught on. Before you start<br />

to dilute your marketing efforts with yet<br />

another social media application, you must<br />

complete your due diligence to determine if<br />

it’s the right fit.<br />

Consider using this simple formula to help<br />

rationalise adding or changing our social<br />

media. Time + strategy + audience = effort<br />

and money.<br />

Ask yourself how much time you will<br />

need to dedicate to maintaining the social<br />

channel. You must understand how you’ll<br />

use the channel. Make sure the user base<br />

is your target customer and it has large<br />

enough base on a local level.<br />

For example, how much time do you need<br />

to invest in creating TikTok videos? Video is<br />

certainly more time-consuming than static<br />

images, but is also far more engaging. You<br />

can and should create video content for any<br />

channel you use.<br />

Make sure the user base is your target customer and it has large enough<br />

base on a local level.<br />

So, the questions are what type of videos<br />

should you create that you can use across<br />

other channels, and do you have the time to<br />

add TikTok videos?<br />

Strategy<br />

Before you add more social media<br />

channels – and therefore work – define<br />

your strategic objective. For the sake of<br />

discussion, we’ll assume the strategic<br />

use of TikTok would be to target the bridal<br />

customer, based on the profile of the<br />

average user.<br />

If that’s the case, are you already targeting<br />

bridal on social media? Most social media<br />

users use multiple channels and TikTok<br />

isn’t the primary channel for most, so are<br />

you planning to make TikTok your primary<br />

bridal channel?<br />

If so, is it better than what you are<br />

currently using? For example, Instagram<br />

is a great channel to target the bridal<br />

audience as 31.5 per cent of US users<br />

are between the ages of 25–34. That’s<br />

the prime bridal demographic. In fact,<br />

54.4 per cent of US Instagram users are<br />

between the ages of 18-34.<br />

More than 40 per cent of Australians<br />

reportedly have an Instagram account<br />

as of 2021.<br />

Oh, by the way, Instagram has also<br />

launched its own take on the TikTok format,<br />

called Reels, which may very well affect<br />

TikTok’s growth and user adaptation.<br />

The bottom line<br />

is it’s easy to<br />

get caught up<br />

in the newest<br />

social trends.<br />

However, newer<br />

social channels<br />

often don’t stack<br />

up to other more<br />

well-established<br />

social channels,<br />

for a litany of<br />

reasons that<br />

you need to<br />

consider before<br />

going down the<br />

rabbit hole.<br />

Audience<br />

So, who’s using TikTok the most?<br />

Around 50-60 per cent of US users are<br />

between the ages of 16-24. That’s a large<br />

number of users outside of the average age<br />

of a typical bride at 28. More than seven<br />

million Australians over the age of 18 use<br />

the application according to a recent report,<br />

the majority of which are female.<br />

Moreover, some are still in high school<br />

and the rest probably aren’t prime for<br />

bridal marketing efforts. Another reason<br />

business gurus are touting TikTok is that it<br />

gives you the chance to get in front of Gen Z.<br />

I get it, but why?<br />

They won’t start becoming prime bridal<br />

customers for at least another four or<br />

five years. With the pace of technology<br />

evolution, I’ll bet we’ve all moved on to<br />

something else.<br />

Effort and money<br />

So, now comes the $64,000 question; is<br />

it worth the additional time and effort to<br />

create and develop a TikTok presence,<br />

and do you have sufficient marketing<br />

dollars to allocate?<br />

Would you take dollars away from more<br />

strategically appropriate channels, such as<br />

Instagram, to do so? From my perspective,<br />

the answer should be no. Will TikTok grow<br />

into a marketing juggernaut?<br />

Maybe, but it’s not there yet as there are<br />

simply too many superior options for the<br />

majority of jewellers and their marketing<br />

dollars.<br />

The bottom line is it’s easy to get caught<br />

up in social trends. However, newer social<br />

channels often don’t stack up to wellestablished<br />

social channels, for a litany of<br />

reasons that you need to consider before<br />

going down the rabbit hole.<br />

SHANE O'NEILL is vice president of<br />

Fruchtman Marketing, a consultancy<br />

company specialising in jewellery .<br />

Learn More: fructman.com<br />

108 | <strong>August</strong> <strong>2022</strong>


Logged On<br />

Adapt or die!<br />

Stay on top of the social media game<br />

The social media landscape is always changing. MANDY EDWARDS says your<br />

marketing strategy must adapt to reflect these changes to avoid failure.<br />

The world of social media marketing<br />

can change at a rapid and, sometimes,<br />

frightening pace.<br />

A website that once guaranteed a boost in<br />

sales for a retailer can become obsolete<br />

overnight. Proven methods of reaching the<br />

right audience can become unpopular and<br />

vanish in what feels like the blink of an eye.<br />

The way your business posts, what your<br />

business posts, and who your business<br />

targets – it’s all liable to change. If you’re<br />

not adapting how your business uses<br />

social media to market your products to<br />

customers, you’re going to fail.<br />

For example, within a 12-month period<br />

around 2018, the following happened<br />

– all more or less at once. Algorithm<br />

changes were implemented by search<br />

engines, advertising metrics were<br />

adjusted, Facebook use began to notably<br />

decline, Instagram use by consumer<br />

audiences surged, and Twitter doubled<br />

the character count.<br />

Those were just the notable changes. It’s<br />

likely just the tip of the iceberg! In the<br />

early days of social media marketing, the<br />

system was relatively straightforward<br />

- a business would run an account or<br />

page, depending on the website, and post<br />

content for its subscribers.<br />

The content would reach the audience<br />

unchanged via a feed. It reminds me of<br />

the movie Field of Dreams, where the<br />

protagonist is told “if you build it, he will<br />

come!” The theory was the same. You had<br />

access to your subscribers and were free<br />

to push them in the direction of your digital<br />

store by whatever method you chose.<br />

There was no algorithm dictating who<br />

saw what – how times have changed!<br />

Fast forward to today and the landscape<br />

is vastly different for businesses. There<br />

is a science and psychology behind<br />

social media marketing – and it’s<br />

changing all the time.<br />

Audience<br />

There’s one thing that has changed very<br />

Put yourself in the shoes of your followers and think closely about<br />

your content.<br />

little – the audience. The sensibilities of<br />

the average customer haven’t changed<br />

too much and it’s important we remember<br />

those fundamentals.<br />

Customers don’t want to see sales<br />

pitches. When it comes to digital content,<br />

customers want to be given material<br />

that matters to them. Customers aren’t<br />

interested in fluff – the stupid gimmicky<br />

videos and jokes that make you want to gag.<br />

Customers want relevant content with<br />

substance. As a retailer, we must avoid<br />

wasting the time of a customer by<br />

posting meaningless “share this to win a<br />

$25 gift card!” posts. Those posts clutter<br />

the feed of not just our subscribers,<br />

likely existing customers, but also their<br />

friends and family – who may be our<br />

customers of tomorrow.<br />

Review your content<br />

Retail businesses tend to spread<br />

themselves out over many social media<br />

networks, attempting to make the most of<br />

platforms such as Facebook, Instagram,<br />

Twitter, and LinkedIn.<br />

Put yourself in the shoes of your followers<br />

and think closely about your content. Are<br />

you posting something that would make<br />

you stop and read? Or does it look like<br />

the most of the content online, worthy of<br />

nothing more than scrolling by?<br />

Think about how you compare to your<br />

competitors. What does your content<br />

Put yourself<br />

in the shoes of<br />

your followers<br />

and think<br />

closely about<br />

your content.<br />

Are you posting<br />

something that<br />

would make you<br />

stop and read?<br />

have in common with the material of your<br />

closest rival? How does it differ? These are<br />

the questions you should be asking before<br />

posting – and not after!<br />

Stay flexible<br />

Digital marketing is going through an<br />

evolution right now – in fact, it always is.<br />

When social media was popularised<br />

marketers quickly learned to exploit it.<br />

Many business owners became an ‘expert’<br />

on using it as a marketing tool without<br />

formal training. The tide turned and now<br />

on websites such as Facebook, that kind of<br />

content is penalised by algorithms.<br />

To avoid getting swept up in the same<br />

wave, focus on the basics of marketing.<br />

Aim on relationship-building with your<br />

audience and remember that it’s not a<br />

one-way street.<br />

As a retailer, you have to be active and<br />

responsive to everyone. Customers<br />

have said for a long time that they want<br />

meaningful, accurate, authentic, and<br />

informative content.<br />

Adapt your content as such. Get rid of<br />

the fluff! Post content that will draw an<br />

audience in, and make them act. Contact<br />

potential customers directly and build a<br />

relationship through social media. Form<br />

your own community.<br />

Customers always pursue more<br />

personalised experiences, especially in<br />

retail. Your business should use social<br />

media to tailor the experience they have<br />

with you. Consider posting about your<br />

interactions with customers – feature your<br />

customers with your products! Find a way<br />

to connect the two.<br />

Loyalty is key to long-term survival in<br />

retail. This applies to the jewellery industry<br />

more than most! The strongest will survive<br />

and those who adapt will outlive the rest.<br />

MANDY EDWARDS is founder of ME<br />

Marketing Services, a social media<br />

and management consultancy. Visit:<br />

memarketingservices.com<br />

<strong>August</strong> <strong>2022</strong> | 109

My Bench<br />

Yuki Mathwin<br />

Abrecht Bird <strong>Jeweller</strong>s. Melbourne VIC<br />

Age 45 • Years in Trade 8 • Training Four-year apprenticeship, certificate IV.<br />



A massive hexagonal-shaped storm was discovered on<br />

Saturn’s north pole in the 1980s. The raging hurricane<br />

is 32,000 kilometres in diameter and over the years has<br />

been observed to have changed from a blue colour to a<br />

more golden colour. It has six distinct sides, larger than<br />

the size of the earth, which form the shape of a hexagon.<br />

4FAVOURITE GEMSTONE That’s a difficult question.<br />

At the moment it’s opal. I’m totally mesmerised by all<br />

the colours.<br />

4FAVOURITE METAL 18-carat yellow gold.<br />

4FAVOURITE TOOL Hammer, there’s something<br />

about hammering. Maybe it’s the noise, or the power<br />

to manipulate metal, that I really enjoy.<br />

4BEST NEW TOOL DISCOVERY I love our laser welder,<br />

there is nothing it cannot do!<br />

4BEST PART OF THE JOB Being able to talk about<br />

jewellery all day.<br />

4WORST PART OF THE JOB Two things. Waking up in<br />

the middle of the night, thinking about a job. Constantly<br />

dropping small diamonds. They’re both pretty bad!<br />

4BEST TIP FROM A JEWELLER You never stop learning.<br />

4BEST TIP TO A JEWELLER Never give up.<br />


My mental health, because I always feel inspired to<br />

make myself jewellery, but don’t have the time!<br />

4LOVE JEWELLERY BECAUSE <strong>Jeweller</strong>y is a form of<br />

expression and can hold a lot of meaning. I love the<br />

history of jewellery too, a piece can tell many stories.<br />

110 | <strong>August</strong> <strong>2022</strong>


Soapbox<br />

Chasing the pink paper<br />

Provenance has never been more important for collectors of rare diamonds and gemstones.<br />

WILLIAM GANT unveils the ‘mysteries’ of the fancy colour diamond market.<br />

We all know the value of a diamond<br />

varies considerably according to its<br />

qualities.<br />

And while the 4Cs – colour, clarity, cut,<br />

carat – are the most familiar to the typical<br />

diamond consumer, when it comes to colour<br />

stones, two of the four can become more<br />

confusing.<br />

That is, providing a certificate from a<br />

reputable diamond laboratory declaring a<br />

white diamond’s qualities leads to consumer<br />

confidence that they have purchased<br />

precisely what they had intended to buy –<br />

particularly since they are unlikely to be able<br />

to grade the stones themselves.<br />

However, when fancy colour diamonds come<br />

into play, the importance of certificates takes<br />

on a whole new dimension.<br />

For example, the value difference between<br />

a Fancy and Fancy Light saturation is<br />

enormous; the presence of secondary and<br />

even tertiary colours can send the value<br />

diving or soaring, depending on the hue;<br />

and the overall brightness and tone can<br />

significantly affect the value.<br />

When it comes to important fancy-coloured<br />

diamonds, it goes without saying that<br />

certificates are sine qua non – essential –<br />

when making a purchase.<br />

And then we have the question of<br />

provenance. From where did the<br />

diamond originate?<br />

Provenance has become a crucial factor<br />

for collectors of the legendary Argyle<br />

pink and violet diamonds. Such incredibly<br />

rare stones from the now-closed Argyle<br />

diamond mine in the remote Kimberley<br />

region of Western Australia are as distinct<br />

as they are beautiful.<br />

The pinks possess a warm, feminine tone<br />

like the shades of cherry blossoms, distinct<br />

from the colder tones or orangey hues from<br />

deposits elsewhere.<br />

The violets redefined how the laboratories<br />

classified this colour category; they are a<br />

standout among fancy coloured diamonds<br />

not only for belonging in the highest end<br />

of the frequency band of colour, but also<br />

because of their unique origin of colour.<br />

That said, not many people are aware that<br />

pink diamonds have also been mined in<br />

South Africa, Canada, Russia and Brazil.<br />

However most consumers want an Argyle<br />

pink, and they want to be sure they get what<br />

they paid for.<br />

So, if 90 per cent of the world’s pink<br />

diamonds have been discovered in Western<br />

Australia, it’s important that the other<br />

stones are not passed off as ‘Argyle pinks’.<br />

Unfortunately certificates from independent<br />

labs typically do not state the origin of the<br />

stone. It comes as no surprise then that<br />

many collectors of Argyle pinks and violets<br />

will demand certificates issued by the mine<br />

itself, to prove beyond doubt that the stones<br />

originated from the Argyle deposit.<br />

However, Argyle-certified stones are<br />

becoming scarcer by the day with the mine<br />

no longer in production. Demand continues<br />

to be intense. The value of pinks and violets<br />

have grown; with limited supply and high<br />

demand, it is a simple economic reality.<br />

Importance of origin<br />

What may not be well-appreciated is that<br />

Argyle certificates – linked to the stones<br />

by laser inscription – were only relatively<br />

recently introduced in the mine’s life cycle.<br />

The issue of certificates for stones weighing<br />

0.20 carats and above only commenced<br />

in 2005; it was over a decade later when<br />

smaller stones such as 10-pointers began to<br />

be supplied with certificates.<br />

This means that the vast majority of pink<br />

and violet diamonds from the Argyle<br />

deposit – including from the peak of the<br />

mine’s production around the turn of the<br />

millennium, when Argyle produced fully<br />

a third of the world’s diamonds – are not<br />

certified with inscriptions to link them.<br />

The consequence of this is that collectors<br />

who focus only on Argyle-certificated pink<br />

and violet diamonds may miss out on the<br />

It comes as no<br />

surprise then<br />

that many<br />

collectors of<br />

Argyle pinks<br />

and violets<br />

will demand<br />

certificates<br />

issued by the<br />

mine itself, to<br />

prove beyond<br />

doubt that<br />

the stones<br />

originated<br />

from the<br />

Argyle deposit.<br />

opportunity to acquire these beautiful<br />

Australian treasures. Not to mention paying<br />

a significant premium for that ‘paper’.<br />

Fortunately, laboratory analyses have<br />

become increasingly sophisticated, enough<br />

to be able to verify the origin of a diamond in<br />

some instances.<br />

Origin certificates are sometimes possible<br />

because deposits can have certain<br />

characteristics from atomic impurities<br />

and age and temperature conditions – a<br />

geological fingerprint, if you will – that<br />

detailed optical and spectroscopic analyses<br />

can reveal to show whether a stone had<br />

originated from that deposit. This is<br />

particularly important since tracking a<br />

diamond from its rough state to polished is<br />

not usually possible with ‘historical’ stones.<br />

The advantage of stones originating from a<br />

once-giant deposit like Argyle is that there<br />

are numerous data points to support the<br />

analyses.<br />

Just as the art world has specialised<br />

experts who can thoroughly analyse and<br />

certify whether a particular oil painting is<br />

an original, there are specialised diamond<br />

laboratories that can thoroughly analyse<br />

and certify whether a stone had originated<br />

from the Argyle deposit.<br />

Such detailed origin certificates are gaining<br />

popularity, particularly when presented<br />

together with certificates confirming the<br />

stones’ “usual” characteristics: size, shape<br />

and colour.<br />

Therefore, if you seek to acquire a pink or<br />

violet diamond from the Argyle deposit,<br />

your options will become far greater – and<br />

perhaps more affordable – if you consider<br />

origin-certified stones in addition to those<br />

bearing the miner’s certificates in your<br />

search.<br />

Name: William Gant<br />

Business: LJ West Diamonds Australia<br />

Position: Managing director<br />

Location: Perth, WA<br />

Years in the industry: 13<br />

C<br />

M<br />

Y<br />

CM<br />

MY<br />

CY<br />

CMY<br />

K<br />

112 | <strong>August</strong> <strong>2022</strong>



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