ROSEFIELD may find success. Independent retailers have to target a specific market, and that market can be widened - if need be - by expanding the demographics of visitors to any given store. The company was launched in Sydney in 2010 to "fill the void for high quality, fashion-forward, and directional jewellery.” From humble beginnings as the ‘little sister’ of Diva, Lovisa has blossomed into the leading fashion chain in Australia and a dominant figure in the wider jewellery industry. In the <strong>2024</strong> State of the Industry Report, Lovisa was documented as having 175 stores in Australia, with a strong presence in Victoria (47 stores), New South Wales (43 stores) and Queensland (43 stores). This is a particularly impressive expansion given that <strong>Jeweller</strong> had compiled chain store data as recently as 2020. Lovisa had 140 stores before the pandemic, meaning that despite the challenges of lockdowns and forced store closures, the company could still aggressively expand – further evidence of the durability of fashion jewellery during difficult economic times. Lovisa recently reported an 18.2 per cent increase in sales in the first half of the financial year, reaching $373 million. The company opened 74 new stores during the six-month period and now operates in more than 40 countries worldwide. It must be said that the reasons behind Lovisa’s success go beyond product. Stores are in high-traffic locations such as shopping centres, and vertical integration ensures speed to market and frequent inventory turnover. With that said, much of the company’s advantage in a very competitive market comes from product innovation. With a short production cycle, Lovisa can drive consumer engagement by taking trends straight from the latest fashion shows and making them available for mass consumption as quickly as possible at affordable prices. Lovisa’s business strategy underpins the value of fashion jewellery – the company can offer a broad range of products capable of rapidly adjusting to involving trends and preferences at an affordable price. As mentioned, products similar to what is offered by Lovisa do not belong in fine jewellery stores. However, there are still valuable lessons to be learned from the company's success for independent retailers about the viability of affordable, on-trend products and the value of forging a connection with young consumers. Additional benefits Chains and independent jewellery stores are different businesses; however, for independent retailers there are lessons to be learned based on the successes of Pandora and Lovisa. While products from Lovisa and Pandora certainly don’t appeal to everyone, the rapid expansion and strength of sales for both chains – particularly during the pandemic - demonstrate the appeal of fashion jewellery. While independent jewellery retailers cannot replicate the impact of vertical integration, they can capitalise on the adaptability and consistently ‘on-trend’ nature of fashion jewellery. It’s also worth noting that Lovisa and Pandora have withstood recent economic downturns better than many other companies because of the low-cost niche nature of fashion jewellery. As a final point of consideration, it’s also worth noting that fashion jewellery offers retailers access to a new target demographic of resilient consumers. Fashion jewellery sales are dominated by younger, primarily female, consumers. While these consumers cannot make large fine jewellery purchases, they are unlikely to feel certain impacts of certain economic pressures. Put another way, the purchasing patterns of teenage girls are not burdened with mortgage repayments! These consumers also tend to pay close attention to evolving trends, where fashion jewellery can meet a need that traditional fine jewellery cannot. With that said, while these young consumers may not be on the search for fine jewellery today, in a few years, they almost certainly will be. By using fashion jewellery to forge a connection between these consumers and your business today, you’re increasing your chances to be front-of-mind when the day comes when they need to make that first major purchase. 44 | <strong>March</strong> <strong>2024</strong> GUESS
CREATED DIAMONDS BY DGA Since 1962, Duraflex Group Australia have been proudly distributing international jewellery and watch brands. (02) 9417 0177 | www.dgau.com.au <strong>March</strong> <strong>2024</strong> | 45
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