2024 State of the Industry Report

More documents

Info

THE JEWELLERY INSURANCE SPECIALIST 4 DAYS FREE COVER Partner with us today CENTRESTONE BENEFITS WORLDWIDE COVER ANYWHERE, ANYTIME YOUR CLIENTS’ CLAIMS COME BACK TO YOU INSTANT COVER, NO WAITING PERIODS UP TO 150% COVER OF THE INSURED AMOUNT AGREED VALUE AND LIKE- FOR-LIKE REPLACEMENT NO EXCESS ON ALL CLAIMS COVER FOR ACCIDENTAL DAMAGE, LOSS &THEFT ANNUAL REVALUATIONS TO MATCH REPLACEMENT COST Our Mission. Offer the best product & service, and implement seamless solutions for jewellery insurance. Our Solutions. Implementing frictionless deployment of jewellery insurance with technology led innovation and solutions. Your Success. Fast, efficient and easy to use. Build your customer loyalty and additional revenue. COMMISSION PAID FOR EVERY POLICY. ALL CLAIMS COME BACK TO YOU 26 JOIN AS A PARTNER JEWELLER CALL NOW 1300 356 680 Centrestone Jewellery Insurance Lvl 28, 88 Phillip Street, Sydney 2000 NSW Info@centrestone.com.au www.centrestone.com.au
Independent Jewellers: Still prospering despite a decline It’s been said that one man’s misery is another man’s fortune. This philosophy may serve the jewellery industry well in the wake of a significant decline in independent retailers. KEY FINDINGS: AT A GLANCE 2,010 Number of independent jewellery stores in Australia, a decline of 26 per cent since 2010. While the overall decline in independent jewellery stores since 2010 might be startling, it's not a cause for panic. Retirements have led to a significant decline in jewellery stores in the past decade, and this trend is expected to continue. 754 Number of independent jewellery stores in New South Wales - the most of any Australian state. When Jeweller first conducted the State of Industry Report (SOIR) in 2010, Australia had 2,699 independent jewellery stores, consisting of retailers that sold fine and/or fashion jewellery. There were a further 1,355 jewellery chain stores and a small number (153) of brand-only stores, meaning that around 4,225 stores were catering to a population of 19.72 million. At the time, if you were to ask someone whether the number of independent jewellers would increase or decrease in the decade ahead, it’s fair to say that most people would have considered a decline more likely than not. There were, and are, many reasons why such a prediction would have been reasonable, despite the fact the jewellery industry has - and continues to - sail against the winds of change that impact most other retail categories. You only need to consider sports, chemist, and hardware stores - to name a few - where national chains and big box retailers have overrun independent and (mostly) family-run retail businesses. It could be worse; consider operating in a category that no longer exists (video stores) or has almost disappeared (newsagents and music stores). Given this background, it is fair to assume that a decline in the number of jewellery stores was likely - if not guaranteed - but the question is: to what extent would that store count decline? There are many perfectly logical - and predictable - reasons for a slight decline, given that most jewellery stores were owned by an ageing population (primarily men) approaching retirement. And gone are the days where it was a given that the children would take over the business; therefore, a percentage of store closures was predicted as ‘natural attrition’. This is ‘the known knowns’, to use the term by the US Secretary of Defense, Donald Rumsfeld. Further, as Jeweller’s recent survey of more than 200 jewellers demonstrates, retirement is still a significant issue. The accompanying chart indicates that 45 per cent of respondents intend to retire or sell their business in the next five years. But as you will see, some issues would also create decline, which perhaps were not as apparent 13 years ago - but now are! They were the known unknowns. And, of course, the elephant in the room must not be ignored – the unknown unknown! Not for a second would anyone in 2010 have thought the world would experience a global pandemic that would create international turmoil and almost overnight destroy business activity worldwide. So, given these factors, what would have been considered a reasonable - and natural - decline in the number of jewellery retailers since 2010, and how would that figure be reassessed given the unexpected impact of the COVID-19 pandemic? This report cannot answer the second question; however, it’s reasonable to assume that a natural reduction in jewellery stores would have been about, or a little above, 10 per cent. Back to the future Before examining the results of Jeweller’s new study of the Australian jewellery industry, let's look at some of the observations made in 2010 to assess their accuracy. For a start, it was observed that the Australian jewellery industry had demonstrated a surprising resilience in the face of the 2008-2009 global financial crisis (GFC). While many other countries suffered an economic recession, Australia’s economy avoided a recession. However, the economy was impacted by high inflation - which led to repeated hikes in interest rates - consumer confidence was adversely affected, and discretionary spending took a knock. Does that sound a little familiar today? The 2010 report stated that, surprisingly, the country's total number of jewellery stores had remained at the 2007 pre-GFC level. It was noted that compared with other retail sectors, such as entertainment and clothing (which compete with jewellery for the consumer’s discretionary dollar), the Australian jewellery industry has been successful at insulating itself from the increasing presence of chain stores. TABLE 1: INDEPENDENT JEWELLERY STORES IN AUSTRALIA 2023 Independent Stores NSW VIC QLD WA SA TAS ACT NT TOTAL 2010 Variance All fine and fashion 754 499 329 187 136 61 30 14 2,010 2,699 -689 Percentage 37.51% 24.83% 16.37% 9.30% 6.77% 3.03% 1.49% 0.70% 100.00% - -25.53% Chart shows a state-by-state store counts for independent jewellery stores in Australia, with the total figure contrasted with 2010. 27
Page 1 and 2: State of the Industry Report A PANO
Page 3 and 4: 3
Page 5: Become a stockist today 02 9290 219
Page 9 and 10: CONTENTS 2024 STATE OF THE INDUSTRY
Page 11 and 12: FP ADVERTISEMENT CONTACT US
Page 13 and 14: FROM THE PUBLISHER'S DESK You'll ne
Page 15 and 16: FROM THE EDITOR'S DESK Listen to wh
Page 17 and 18: AT A GLANCE Australian Jewellery In
Page 19 and 20: Lab Grown Diamonds A GLIMMERING FUT
Page 21 and 22: The journey towards a truly ethical
Page 23 and 24: Carbon Neutrality for Modern Jewell
Page 25: Synopsis What will you learn from t
Page 29 and 30: 29
Page 31 and 32: TABLE 3: 2023 - 2010 COMPARISON Com
Page 33 and 34: usinesses - especially retailers -
Page 35 and 36: 35
Page 37 and 38: HOLD YOUR HORSES 25.53% FEWER INDEP
Page 39 and 40: Buying Groups: Musical Chairs The n
Page 41 and 42: 2024 STATE OF THE INDUSTRY REPORT B
Page 43 and 44: THE COMPLETE PACKAGE Supporting Aus
Page 47 and 48: Chain Stores: Full steam ahead The
Page 49 and 50: FINE JEWELLERY CHAINS King of the C
Page 51 and 52: PROFIT OR PLAY...? DO BOTH! MARCH 2
Page 53 and 54: AT A GLANCE Australian Fashion Jewe
Page 55 and 56: PROUDLY DISTRIBUTED BY POIX AND TRO
Page 57 and 58: Brand-only stores: Vertical integra
Page 59 and 60: TABLE 2: BRAND-ONLY STORES - JEWELL
Page 63 and 64: Births, Deaths & Marriages: Good ni
Page 67 and 68: Shopping centres: Frontline in the
Page 69 and 70: 2024 STATE OF THE INDUSTRY REPORT S
Page 71 and 72: 2024 STATE OF THE INDUSTRY REPORT S
Page 73 and 74: JAA: The past is haunting, and the
Page 75 and 76: 2010 VS 2023 JAA Marketshare This t
Page 77 and 78:
Industry survey: Surprising results
Page 79 and 80:
My business is now more profitable
Page 81 and 82:
Cloudy skies blocking the view This
Page 83 and 84:
ehaviour. Purchasing patterns have
Page 85 and 86:
2024 STATE OF THE INDUSTRY REPORT V
Page 88 and 89:
2024 STATE OF THE INDUSTRY REPORT V
Page 90:
SERVICING THE JEWELLERY INDUSTRY SI
show all

2024 State of the Industry Report

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?