2024 State of the Industry Report

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PROFIT OR PLAY...? DO BOTH! MARCH 24–25, 2024 Gold Coast Convention & Exhibition Centre jewelleryfair.com.au RegisterNow! SUPPORTED BY Organised by Est. 1990 36
HOLD YOUR HORSES 25.53% FEWER INDEPENDENT JEWELLERY SINCE 2010. See breakout box below. 22.73% FEWER INDEPENDENT JEWELLERY STORES IN WESTERN AUSTRALIA 26 INDEPENDENT JEWELLERY STORES IN NORTHERN TERRITORY 329 6.77% OF ALL INDEPENDENT JEWELLERY STORES ARE IN SOUTH AUSTRALIA INDEPENDENT JEWELLERY STORES ARE IN QUEENSLAND 62% OF JEWELLERY STORES IN NSW ARE INDEPENDENT JEWELLERS 2,010 TOTAL NUMBER OF INDEPENDENT JEWELLERY STORES IN AUSTRALIA 57.56% OF RETAIL JEWELLERS IN AUSTRALIA ARE INDEPENDENT JEWELLERS 48% OF JEWELLERY BUSINESSES ARE INDEPENDENT JEWELLERS IN ACT » INDEPENDENT STORES SURVIVE AND THRIVE There was once a time when independent jewellers believed that ‘cheap Asian imports’ were destroying the market. Then there was a time that jewellers believed chains stores were taking over the industry. This prompted Jeweller to investigate the claim - and which initiated the beginnings of the State of the Industry Report. The two claims were proven wrong and, today, while the percentage of independent stores has fallen from 64 per cent in 2010 to 57.4 per cent in 2023, part of this decline can be explained by the redefinition of a ‘jewellery store’. -4 INDEPENDENT JEWELLERS IN TASMANIA SINCE 2010 24.83% OF INDEPENDENT JEWELLERY STORES ARE IN VICTORIA for custom-made pieces seems to have also generated another significant change to the traditional ways jewellery is sold. Worthy of additional research is the trend for younger designers and bench jewellers to ‘go it alone’ by establishing a small-scale business primarily based online. They cannot or should not be considered online retailers, given that that term would suggest stock levels and consumers ordering jewellery off-the-shelf, albeit from a warehouse-style ‘shelf’ rather than an in-store showcase. It should come as no surprise - and would be a known known - that younger and more techsavvy people are starting their own business which is promoted in the digital world via various social media platforms. Again, jewellery can be unique because the sparkle and luxury of the items are ideal for website, Instagram, Twitter/X and Facebook marketing. Indeed, short videos of pieces being handmade are ideal for TikTok and YouTube. This is not a new trend; it’s a return to the original business model where artisans handcrafted jewellery in small workshops. IMPORTANT CLARIFICATION Hold your horses! The speed at which this has happened has most likely been enhanced due to the global pandemic, which caused job losses internationally. While Finally, a decline and as of has around been 700 previously independent detailed, jewellery stores in since the past the 13 pandemic, years might two sound trends alarming, have it's developed a figure that is at easily speed. explained. Firstly, The first as this an article increase has noted, in businesses the definition operating of a ‘jewellery from so-called store’ has ‘showrooms’; been changed however, since 2010, in some therefore many cases, businesses these showrooms have been reclassified are effectively and nonexistent. to a reduction See the of ‘Satellite approximately showroom 150-200 show-offs’ stores. that has led story on Page 27. The more realistic decrease is a ‘net reduction’ of around The second 500 stores. trend With is also factors worthy such of as close retirements and consideration. the impact of Jeweller’s the pandemic research on marginally has profitable businesses, uncovered this many was overseas-owned to be expected. online retailers doing their utmost to disguise Furthermore, it is important to note Jeweller has themselves as Australian-based or owned. tracked around 1,000 store closures in the past 13 Putting years. This aside means well-known that while international many stores online have closed jewellery since retailers, the 2010 it’s report, fair new to say stores that have consumers opened - would suggesting prefer that to the buy jewellery from a business industry is in still their an environment home country where that new would businesses be obligated are able to to local launch. laws. This differs from other comparable industries (video, sports, The research music, and has hardware discovered stores) that where many declining websites store that count appear is not local countered - using a by .au new address openings. - have no connection to Australia. Like the ‘showroom’ It issue, interesting these disguised to note that online many retailers new jewellery warrant stores further are investigation. based ethnic grounds, that is catering to immigrant markets such as Chinese, Indian and African. Known knowings and the future The first and only in-depth study of the Australian jewellery industry in 2010 accurately predicted many trade changes in the past decade. Other changes caused by the unexpected turmoil created by the global pandemic could not be forecast by their very nature. The most obvious is an increased reduction in independent jewellery stores over and above any natural decline. Like all change, the result can be seen as beneficial or detrimental. For example, one person’s perception - or misery - is based on their outcome, say, upon losing their job due to the pandemic. Having found themselves unemployed, a young jeweller who took a gamble by establishing their own business - and who goes on to be very successful - will have one view while the store owner approaching retirement who had to close their business as a result of the pandemic - rather than selling it - will have a different perspective. As always, and just like jewellery, beauty is in the eye of the beholder. 37
Page 1 and 2: State of the Industry Report A PANO
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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 and 26: Synopsis What will you learn from t
Page 27 and 28: Independent Jewellers: Still prospe
Page 29 and 30: 29
Page 31 and 32: TABLE 3: 2023 - 2010 COMPARISON Com
Page 33 and 34: usinesses - especially retailers -
Page 35: 35
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
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2024 STATE OF THE INDUSTRY REPORT V
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SERVICING THE JEWELLERY INDUSTRY SI
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2024 State of the Industry Report

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