2024 State of the Industry Report

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Unmatched. Unrivalled. Still Number One. Join us on the Gold Coast for our 2024 Time Out Conference. Find out why we are the leading buying group for independent jewellers. +612 9418 0000 • info@nationwidejewellers.com • www.nationwidejewellers.com 40
2024 STATE OF THE INDUSTRY REPORT BUYING GROUPS That said, the most alarming decline has been with LEGJ. When IJC was launched in 2020, there was no doubt that the most vulnerable buying group - running the risk of losing members - was LEGJ, which our study appears to confirm three years later. Indeed, LEGJ has had a staggering fall in members since the introduction of a fourth group. Worse, it appears that the buying group’s management is doing its best to avoid scrutiny on the matter - see break out box Page 45. Public perception As part of this current study, Jeweller conducted a quantitative survey of more than 200 Australian-based jewellery retailers in November 2023. The ten questions sought responses on various issues and topics, including respondent’s views of the buying groups. When asked which offers more benefits – membership to a buying group or membership to the Jewellers Association of Australia – 43.69 per cent of respondents either ‘strongly agreed’ or ‘agreed’ that the buying group was the better prospect. Only 12.63 per cent believed the JAA offers more benefits (strongly disagreed or disagreed). This could also explain why buying group member stores outstrips the JAA’s retail members by far - 520+ compared to around 300. Interestingly, in a similar survey of jewellery industry suppliers, respondents were asked their views as to whether buying groups provide beneficial support and business advice for independent jewellers. While a smaller sample size, the result was 34.61 per cent either ‘strongly agreed’ or ‘agreed’ compared to 25 per cent who ‘strongly disagreed’ or ‘disagreed.’ Industry feedback It’s hard to argue that times aren’t tough for independent retailers, and recent research from the Australian Retailers Association suggests that 55 per cent of small to medium-sized retailers are concerned or uncertain about their financial prospects. When presented with information about the reduction in independent jewellery retailers over the past decade, Showcase Jewellers managing director Anthony Enriquez wasn’t surprised. While troubling, he suggested that this data confirmed the importance of buying groups. “Sadly, I’m not surprised to hear these figures at all. This might seem easy to say given my position; however, I think this data underlines the importance of buying groups and what we can offer,” he tells Jeweller. “It’s true, times are tough for independents. Your shopping centre data highlights what we hear all the time – independents are facing rent increases from shopping centres that are unworkable. While major chains can negotiate from a position of strength, independents aren’t always able to.” He added: “It’s always been about strength in numbers, and for independent jewellers, that’s more important now than ever.” TABLE 3: BUYING GROUP MEMBERSHIP AND STORE COUNT IN 2023 Nationwide NSW VIC QLD WA SA TAS ACT NT TOTAL NZ Other 2023 - Members 104 62 64 23 27 9 7 3 299 69 1 369 2023 - Stores 117 78 71 23 27 10 8 3 337 77 5 419 Showcase NSW VIC QLD WA SA TAS ACT NT TOTAL NZ Other 2023 - Members 59 27 31 4 6 6 1 - 134 18 1 153 2023 - Stores 64 34 47 6 6 6 1 - 164 18 1 183 IJC NSW VIC QLD WA SA TAS ACT NT TOTAL NZ Other 2023 - Members 29 9 11 7 11 1 - 1 69 1 - 70 2023 - Stores 36 10 12 8 13 1 - 5 85 1 - 86 Leading Edge NSW VIC QLD WA SA TAS ACT NT TOTAL NZ Other 2023 - Members 8 8 3 - 1 1 - - 21 - - 21 2023 - Stores 8 9 2 - 1 1 - - 21 - - 21 All Groups NSW VIC QLD WA SA TAS ACT NT TOTAL NZ Other 2023 - Members 200 106 109 34 45 17 8 4 523 18 1 542 2023 - Stores 225 131 132 37 47 18 9 8 607 96 6 709 GRAND TOTAL GRAND TOTAL GRAND TOTAL GRAND TOTAL GRAND TOTAL The above tables record the number of members and stores of each buying group, including overseas members. The data was accurate as at November 30, 2023. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree 5.83% 6.80% 18.45% 25.24% 0% 10% 20% 30% 40% 50% More than 43 per cent of respondents believe that membership to a buying group offers greater benefit than membership to the JAA. Interestingly, even though JAA members were over-represented in the survey, less than 10 per cent preferred the JAA. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree 9.62% 15.38% 19.23% 15.38% 0% 10% 20% 30% 40% 50% Industry suppliers believe that buying groups provide beneficial support and business advice for independent jewellers (36 per cent) while 25 per cent do not. 41
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 and 36: 35
Page 37 and 38: HOLD YOUR HORSES 25.53% FEWER INDEP
Page 39: Buying Groups: Musical Chairs The n
Page 43 and 44: THE COMPLETE PACKAGE Supporting Aus
Page 45 and 46: 2024 STATE OF THE INDUSTRY REPORT B
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
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2024 State of the Industry Report

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