Cudworth’s black leather multi-strand bracelet features black haematite, plain and braided black leather bracelets with a stainless steel clasp.

The Hardware collection includes items featuring leather bracelets, haematite, tiger’s eye and agate beads.

Cudworth Enterprises has been an Australian wholesaler of men’s cufflinks and jewellery since 1918, and also distributes Hugo Boss writing instruments. It specialises in sterling silver and stainless steel jewellery, sourcing from Asia, Germany and England.

More information: Cudworth Enterprises’ full range

Setting the correct pricing strategy for products and services is a great challenge. Pricing has a tremendous impact on profits because pricing not only determines the quantity sold but also the direct contribution to the bottom line. The following are a few key points to consider when setting prices:

Set a pricing strategy

Start by setting pricing and profit-margin goals. What is your target profit margin given your expenses? Determine if you are competing on price or quality. You cannot do both because quality suffers when prices are lowered.

If you are determined to be a low-cost leader then efficiency in operations is critical; there’s no room to be wasting money on anything. On the other hand, if you are selling quality then do not compromise on price. Discounts are a good strategy if you are a low-cost leader but not when quality is your unique selling proposition (USP).

Pricing correctly should not be based on intuition. Use smart analytical tools to set proper prices. Put in place a specific pricing strategy based on the perceived value of an item to your target market. Do not make assumptions and be prepared to research and test alternatives.

Maximise profits

Any pricing structure should maximise profits. The price should be set so that profits are maximised based on the given demand relative to price. It is not uncommon for prices to be too low. This might bring an increase in demand but ultimately results in lower profits.

Setting prices too high will see decline in sales as buyers choose to shop elsewhere. The key is to price correctly so the number of units sold is maximised and therefore so are profits. Does your pricing structure maximise or impede your sales revenue? Find the happy medium and maximise profits.

Do pricing homework

Review your expense budget and price your products and services accordingly. In determining a budget, keep in mind fixed and variable expenses.

Review marketing expenses and how those are built into the pricing structure and marketing plan of a business – advertising, sales commissions, direct mail and other promotional activities are expensive and should directly impact any pricing strategy.

Review competitors’ pricing and attempt to determine their profit margin. Many businesses have very thin profit margins and others rely on debt. Have a clear plan for using debt wisely or, if fortunate enough, do not incur any debt at all.

Gain a competitive edge

Make pricing a competitive advantage by providing more value than competitors at comparative price levels. Research the competition and add value in a unique way that better meets the needs of the target market. Try to do this without increasing expenses too much and support it with service that is better than your competition. When an offering is attractive to the target market, price becomes less of a factor in purchasing decisions.

Customers are looking for fair pricing; people generally know that realise that they get what they pay for.

The most important need of the consumer is that they make a purchase believing they received a fair price for the value of the product or service. Price is equal to relative value in the minds of customers.

Prices driven down

Competition, excessive inventories and the internet are driving prices lower than ever before. Keep in mind when setting a pricing strategy that we are all forced to do more with less these days.

We have to compete smarter, focusing on customer service and knowledge-based services. In these areas, our expertise and our customers’ returns on investment will determine a fair price.

For those in sales, also remember that you must believe 100 per cent in the pricing of a product or service. Any doubt in this area will lead to customer objections on price and an inevitable loss of the sale.

Customers sense a lack of confidence and competition keeps pricing fair. Have confidence in your pricing strategy and communicate that same assurance with your customers. Price should equal the value you bring customers.

Follow these guidelines and you can set prices that appeal to customers while also aiding the business. This can only lead to more sales and improved profits, which is the reason we’re doing this in the first place, right?

Rural communities have been hit hard by the drought, particularly where agriculture and farming is tantamount to a town’s sustainability. Ultra-low rainfall in parts of NSW and central Queensland has resulted in a reduction in fodder. Coupled with dwindling cattle prices, this has left farmers with little disposable income to invest in local business.

“When the farmers are doing well, we are all doing well,” is the age-old truism. This is true not only for the jewellery sector but all areas of retail. Regional jewellers are finding alternative ways to engage customers, including integrating different business models, offering new products and services, and establishing unique points of difference.

Forging new partnerships

Regional NSW was hit hard by the drought and the rural township of Temora was no exception. Its industry relies heavily on the success of farmers and dwindling cattle prices and farming revenue have had run-on effects in the retail sector.

Debbie Davidge has operated Debs Jewellery for almost three decades and has witnessed the decline of business around Temora. In addition to the effect it has on local business, Davidge says the drought has impinged on the mental health and general morale of the township.

“I had one lady in my store in tears because somebody had reported her to the RSPCA for her cattle looking underfed. So not only is she dealing with a drought now but all of these other factors are putting a strain on her and her family,” Davidge says. “She’s been a stalwart of our community; she’s an amazing person and for someone like that to have that happen to them is just heartbreaking.”

According to Davidge, this customer and friend was forced to sell 27 head of cattle for $5,000.

“That’s their livelihood and she was devastated; it was her husband’s superannuation,” she says, adding that this isn’t an isolated case. “This affects so many people – it’s hideous.”

Such anecdotes are not unique to Temora or Davidge’s customers. With the extended dry spell, many have been forced to make challenging sacrifices to survive. For Davidge, this means making drastic changes to her business model in order to diversify her store to meet the needs of her customers. As such, Debs Jewellery has built partnerships with local artisans and designers to offer a range of products other than jewellery.

“There is one local girl who is also from a farm and she’s branching out to supplement her income. She’s designing and putting together a fashion label – all beautiful bespoke pieces, all made here – and it’s amazing,” she says.

Davidge has also partnered with a milliner as well as a local woman who produces Venetian blown-glass beads. She says these partnerships are helping to forge a strong community in spite of difficult times.

“I’ve been in retail here for 28 years and my father owned a menswear retail store here for 45 years. Our family is so involved in this community and we have to keep it together. If we don’t, that will be when everything splinters,” she explains. “Retailers have to look outside the square and get outside their traditional retail jewellery mentality because if they don’t, they won’t survive.”

Banding together

Toowoomba region jeweller Geoff Pascoe has managed his business since it opened in Oakey in 1992. He and wife Carolyn have witnessed the fallout of the drought and have seen its impact on Pascoe Jewellers and other retailers.

“People don’t have the same amount of money to spend on gifts when things are tough so you need to change your price mix and cater for the market as it changes. Have a marketing programme, be professional and look after your staff and customers,” he explains, noting that Toowoomba is an unusual region given its growth in the retail sector in recent years.

“In the past 18 months, our main shopping centre has doubled in size introducing another 100 retailers into town, plus smaller centres are popping up in the region everywhere; competition is fierce and you need to be at your best to survive.”

Pascoe says the small townships in the region are agricultural but have vast employment across health care, education, retail and construction, and food services. Despite the diversity of the Toowoomba region, Pascoe says all businesses should apply the same rules to achieve objectives.

“In any business you need to plan, whether you’re on the land, in retail or running a government,” he explains. “Draw up budgets, determine what steps you need to take to achieve the end result, monitor your results and be aware of the changes happening around you.”

Part of the planning process is liaising with other jewellers, suppliers and associations, all of whom can offer assistance during difficult times.

“As far as the jewellery industry goes, we need to keep the communication lines open,” Pascoe continues. “This is where the buying groups are invaluable for providing opportunities to talk with each other and understand that you’re not on your own. Sometimes there’s a better way of doing things.”

While farmers are the most affected by the drought, all businesses in the region struggle with the ongoing dry weather. Pascoe says members of the tight-knit community are doing all they can to help one another.

“Like most communities affected by drought, people are fundraising to help out. We are very fortunate in Australia; when people need help, the Australian public and businesses are there, especially in the regional areas,” he says, urging, “We need to remember to buy locally and support each other whenever possible.”

Shop local, reap rewards

Pallot Jewellers has been in the same building in Bairnsdale since 1924. Third-generation owner William Pallot has worked in the business as a watchmaker for over 40 years and agrees with Pascoe that supporting local business is paramount.

While East Gippsland has received more rain than other drought-affected regions, farmers have struggled to sustain business. In turn, retailers have felt the cinch on spending. Pallot has seen the best and worst of both worlds; he’s a watchmaker by profession and has spent time working on a cattle farm.

“It’s a tough time for the farmers and it has certainly affected the Bairnsdale retailers. At the moment you can drive to the shops and you can park pretty much wherever you want,” Pallot says, noting that the business has managed to continue its success thanks to tourism and the town’s ageing population.

“There’s a lot of retirement money around that isn’t affected so much by the drought and we’ve got a big hinterland here. Bairnsdale is the largest town between here and Merimbula so a lot of people come from Buchan, Orbost and all those little towns to do their main shopping in Bairnsdale.”

He adds that owning his store has eased financial pressures that might plague other retailers. “I think the fact that we own the store has definitely been a contributing factor to our success,” he says.

“There is a residence upstairs so the rent from that contributes to the business. I think being a retailer would be pretty tough at the moment if you also had to pay a big rent.”

Pallot says the biggest key to his success has been through his support of other local businesses and industry. Pallot Jewellers is the official timekeeper of the local cup and the business sponsors various sports clubs and organisations, which is recognised by locals who choose to support Pallot Jewellers rather than online stores.

“Get involved with local community clubs and sponsor sports and community groups,” he advises. “You’ll find people are very loyal; if you donate to them they’ll spend their money in your store.”

Pallot says showing a commitment to long-term local employment is another way to build a community bond.

“We always employ locals. Two of the women who work in the store with my wife have been with us for over a decade.”

Sell practical products

Farmers and local industry have suffered long without rain in West Wyalong.

West Wyalong Jewellers owner Valerie Burgess says she has worked hard to diversify the business to stay in the black during the drought.

“We’ve had to put in lower-priced products, more emotional-type products and items that people need rather than want. We have also focused on hosting events and offering different services,” she says.

“We’ve done two-for-one days where we offer polishing and spring-cleaning of jewellery and we also stock more practical gifts.”

Burgess has been in the industry for 40 years and purchased the business 15 years ago with husband Peter from her in-laws. She says knowledge she gained from the previous owners has helped and she has also found support in belonging to Showcase Jewellers buying group.

“They [The previous owners] had already been through drought so that knowledge of diversifying and making the business run with the current climate does help us,” she says.

Burgess says most of her business comes from the workshop where engraving and watch and jewellery repairs drive sales. She says shoppers respond to the store’s strong customer service.

“We’ve recently started offering a customised, personal touch with our jewellery sales, something you cannot get online. We’ve found that good, old-fashioned customer service is really helping us through this period,” she says, adding that jewellers must remain vigilant and keep trying new things.

“Stick to the basics with your products and try to come up with some ideas to make people come into your store – we try to do that all the time,” she advises.

“Obviously times are tough and we aren’t doing as well as we were 12 months ago but I think the key is to keep plugging along.”

In addition to belonging to a buying group, Burgess says local community groups are very helpful.

For example, the West Wyalong Business Group “prides itself on promoting the ‘shop local, shop small’ kind of attitude”.

“As a small community, we can bounce off each other and help each other,” she says. “We do our best to keep everything in town and support each other and we find people in these small country towns tend to do that.”

Point of difference

Regional NSW has possibly been hit hardest by the drought but Wagga Wagga’s Troy Watkins believes his business, Kristopher Graydon Jewellery, is still going strong.

“It has been dry, but nobody has raised any major concerns. We haven’t noticed an impact on our business,” Watkins says, adding, “The last drought before this one lasted for seven years; it was very dry for a long time and back then there was a bigger response for fundraisers to help the farmers.”

Watkins believes the Wagga Wagga community’s multi-industrial background is responsible for its ongoing success. The rural city is home to universities, an army and air-force base that “carry the city”, as well as farming and produce.

Watkins believes local pride helps drive the economy with most residents opting to purchase goods through local businesses rather than shopping online or travelling.

“I always shop locally no matter what; I don’t shop online,” he says. “Although we are a big city, we do feel inclined to spend the money here so that we can create growth here and promote jobs here.”

Watkins has been in business for 26 years and said Kristopher Graydon has kept its business model as a point of difference to Wagga Wagga competitors. As such, drought and other adverse factors have not changed the shop’s daily operations.

“We are a bit different in that we serve our customers from our benches so customers can walk up to our bench, watch us work and talk to us while we make rings or repair pieces,” Watkins says.

“It is an attraction for our customers and it helps them to build trust in us, because they can see firsthand that the work is done here in front of them. It creates great interest too.”

For Davidge, while it is important to have a willingness to adapt in tough times, awareness of the impacts on mental health is extremely important.

“It can be hard to accept the help of those who are willing to listen and support. At the end of the day, that is what community is about,” she says, adding, “Think outside the square and use the talents of those in the community to help each other.”

While it’s no question that jewellers across the country miss the boon times of old, it is adapting to these changes that has helped retailers to thrive, not just survive.

Having a willingness to think creatively and support the community will help these businesses secure a brighter, and hopefully wetter, future.

Held at the Hong Kong Convention and Exhibition Centre on the edge of Victoria Harbour, the 37th edition showcased a full range of quality and price-point watch categories of mechanicals, quartz and smart watches together.

A comprehensive range of tools, parts, crystals, testing equipment, machinery, display stands and presentation materials made it a one-stop sourcing platform for international buyers.

The 2018 Fair attracted 21,000 buyers, up 2 per cent on last year, with 830 exhibitors from 25 countries and regions. Newcomers from Denmark, Poland, Saudi Arabia and South Africa also made their debut.

Organiser, Hong Kong Trade Development Council (HKTDC) deputy executive director Benjamin Chau said: “To help local enterprises expand into new markets, the HKTDC organised 78 buying missions representing more than 4,400 buyers from 3,200 companies from 58 countries and regions.”

“The Fair continued to feature the [original equipment manufacturer] OEM smart watch zones for Hong Kong companies to showcase results of their research and development in smart watches, helping the industry move up the value chain and develop further,” Chau said.

The event was not just about the latest wearable technology on the market; the diversity of Asian manufacture, inventive ideas and sensitive reaction to buyer demands for luxury and quality goods were recognised for having steadily risen year-on-year across its wide range of products.

Chinese watchmakers are always moving to close the gap with its Swiss counterparts in terms of market image, aesthetics and quality, and contrarily the Swiss are already recognising the broader opportunities of proximity to China – the HKW&CF is an ideal crossroad of these cultures.

Vincent Calabrese, one of Switzerland’s most innovative and creative watchmakers exhibited at the HKW&CF. Calabrese boasts 62 years’ experience in the trade and made his Salon de TE debut this year.

“[The Salon] provides a good platform for me to connect with retailers and consumers. I am keen to develop the Chinese mainland’s watch market because it is the best market for Swiss watches … I hope to come back next year,” Calabrese said.

Stylistically, last year there was a seismic shift to minimalism that was evident again in almost every maker’s range. This year it would be impossible to miss the adoption of wood for bracelets and cases and even some with genuine leather dials.

The HKW&CF presented a wide range of classy eye-catching wristwatches, including Piaget’s Altiplano, the world’s slimmest mechanical jewellery wristwatch which was expected to fetch around £140,000 (AU$260,500).

Boegli’s Grand Opera series musical watches,– equipped with a musical module and mechanical movement, capable of playing 17 musical notes – were also displayed.

Memorigin’s Marco Fu watch series was also a highlight, and was themed around snooker with three black diamonds set at the 1, 4 and 7 dial markers, for snooker player Fu’s 147-point scoring record. Memorigin brand represents what is most refreshing about the Asian sector of watch design.

There are no inhibitions or untouchable traditions and this is nowhere more evident than in its model SpongeBob Gold Tourbillon SquarePants, based on the animated TV series. Consider the entertaining contradiction of combining the high technology of the tourbillon, the famous invention of AL Breguet, with SpongeBob SquarePants and pay more than £5,000 (AU$9,300) for the privilege? Irony indeed!

PTS Resources is a Hong Kong-based supplier of watch movements and although PTS does offer movements of its own design, most notably its fine tourbillons, the actual manufacturing is done by the Hangzhou Watch Company and four other partnering factories.

This year, PTS Resources exhibited new calibres including a quite striking rectangular movement where the movement itself is subject to the PVD coating and is available in quite vividly attractive colours.

Others such as Sea-Gull and Shanghai Watch are quietly producing serious new brand complications at a time when its Swiss counterparts are marking time or producing simpler, more affordable mid-range watches.

An annual feature of the HKW&CF is the small orders zone featuring around 130 showcases, targeting buyers looking to place orders for 500-1,000 watches, clocks, leather straps, bracelets or accessories.

The award-winning and finalist entries of the 35th Hong Kong Watch & Clock Design Competition were also on display at Hall 1B concourse to showcase local creativity to international buyers.

As part of the HKW&CF, a design competition for up-and-coming watch designers provides an opportunity to showcase skills and get some exposure to the wider community.

The theme for this year was, “Time & Space Breakthrough” for the open competition and “Colourful World” for the student competition.

Celebrating a successful year, the HKTDC, together with the Hong Kong Watch Manufacturers Association and the Federation of Hong Kong Watch Trades and Industries, organised an event that thrived ahead of other international trade fairs this year. The event will return in 2019 on 3 September.

HONG KONG WATCH FAIR GALLERY

Beryl also comes in a colourless variety called goshenite, and red beryl is so rare that you will not likely see in jewellery. All have a hardness of 7.5 to 8 on the Mohs scale.

The vibrant colour of emerald has been adored from Roman times. Cleopatra had her own mines and the Incas worshipped emeralds and used them in jewellery long before the Conquistadors conquered Colombia in the 1500s and opened mines to trade on the subcontinent and Europe.

Moguls prized the gem and secured vast collections before they were whisked off to Iran by Persian invaders in the 16th century.

Created by trace impurities of chromium and vanadium, the intense green colour is the most prized. The price drops when accompanied by a bluish tinge, and continues to devalue further when coloured a yellowish tinge from iron impurities. When the colour of beryl is too light to be called emerald, it is termed ‘green beryl’ and the price plummets again.

Colombia remains the major source of emeralds, retaining the best reputation and usually commanding a price premium. Clients often ask for a Colombian emerald thinking it will be of superior quality. However, not all Colombian emeralds are equally fabulous.

Emeralds are currently sourced from many parts of the world, including Russia (sourced from the Urals for more than 100 years), Zambia, Brazil, Zimbabwe, Afghanistan and Ethiopia. Some emeralds from these mines will rival the best Colombian emeralds. One should never buy a gem just from its location provenance.

You need to see the stone’s colour and brilliance. The best cut to show off the brilliance and colour of most beryl is, of course, the emerald or step cut. The ‘cut off’ corners also protect the stone from chipping.

Emeralds typically have many inclusions; the French say they have a Jardin (garden) inside them, affecting the clarity. The inclusions also make emeralds a more brittle gemstone, often confused with it being soft. It should be known that all emeralds have the same hardness, but the inclusions make them prone to breaking.

To help improve their clarity and colour, emeralds are treated in several ways. They are usually “oiled” at the mines– a process that uses oil to fill the cracks and inclusion spaces in a technique practised for centuries. This treatment is standard and must be disclosed, as these emeralds should not be cleaned in an ultrasonic cleaner or with soapy water. Doing so removes the oil and renders the emerald less desirable.

Emeralds can also be filled with a glass or a resin-like substance to also improve durability, however the stability of these treatments varies so this treatment must also be disclosed, ultimately affecting the price of the gemstone.

Because emerald is one of the more prized gems, it has been made synthetically by various methods. Synthetic emeralds are easy to detect as the colour is vibrant and the gemstones are free of inclusions. A large natural emerald free of inclusions is very rare.

It is clear that the range of colours in emeralds are diverse and should be appreciated by jewellers and their clients alike.

I gave up predicting the future a long time ago; I wasn’t very good at it. I don’t remember the exact date but it was around the time that I said, “Pet Rocks are a dumb idea and no one will be stupid enough to buy them!”

Well, around 1.5 million people proved me wrong and the dumb concept made the creator a millionaire.

My other predictions that have proved wrong include: “No-one will take World Championship Wrestling seriously,” and, “Intelligent adults will not dress up as superheroes, anime and video-games characters and attend comic festivals” … though my definition of “intelligent” probably means I am yet to be proven wrong on the latter!

Anyway, you get the idea: attempting to predict human behaviour is almost futile. With that in mind, I find the latest debate about synthetic diamonds interesting.

I am not willing to predict whether there will be an immediate and significant change to the diamond industry, but it’s fair to say that De Beers obviously thinks this will be the case otherwise it would not have entered the synthetic diamond market.

I also think it’s fair to say that synthetic-diamond manufacturers had been quietly going about their business a little like that not-quite-right cousin at Christmas lunch – everyone knows he’s there but no one takes any notice.

We all knew lab-grown diamonds existed and that the technology was improving; however, it had pretty much been business as usual, meaning business without lab-created diamonds, for the jewellery industry.

All this changed when De Beers recently announced it had entered the synthetic diamond sector with new company Lightbox Jewelry. The move by the diamond giant was perhaps not so surprising to industry observers, but what came next certainly caught many by surprise.

The US Federal Trade Commission (FTC) made a new ruling on diamond nomenclature in which the word “natural” was omitted from its definition. Furthermore, the regulations for marketing diamonds had also been altered to allow the use of the previously banned words “gem” and “gemstones” when marketing synthetic gems.

These new rules change the game a little in favour of synthetic-diamond manufacturers, though there are analysts who believe that Lightbox Jewelry is a De Beers strategy to force the price of lab-grown diamonds down so as to maintain a price differential between them and the natural products.

In saying that, there’s no doubt the lab-grown market has gained momentum in the past 12 months and much of this momentum can be attributed to Millennial and Gen Z consumers. If you believe the promotional and public relations activity, young diamond buyers are socially conscious and value quality and integrity.

Indeed, a recent De Beers study found that the two demographics account for two-thirds of diamond demand, and while Millennials make up the largest group of diamond consumers now, Gen Z will be an even-larger customer base in the near future.

If lab-grown diamonds are not only on par with mined diamonds – or even better, some might argue, because of the ethical issues that cloud the mined diamond sector – a powerful question is being asked: Would you propose to your future spouse with a synthetic diamond?

It’s a fair point. Do lab-created diamonds carry the same romantic notions of a natural diamond, or are they still shrouded in stigma?

The tradition of a man buying a woman a diamond ring is a 70-year marketing story that connects connotations of rarity and preciousness with love … but it’s still a story and it still relies on the support of De Beers and the DTC to tell it effectively.

Some say that lab-grown diamonds might be okay for ‘cheap’ jewellery but ask: do they truly signify love and romance?

After all, would you propose with a synthetic diamond? Or, if you’re a woman, what would you think if you subsequently discovered your engagement ring held a man-made stone which came out of a factory, rather than from ‘mother earth’?

Maybe new generations of diamond buyers will still care enough about tradition to pay a premium for a natural stone even though science can achieve the same result ethically and at a more desirable price.

Who knows?

And I’m not about to make a prediction about the future. I have failed too many times before … my friend still has her Pet Rock!

Firestar Diamonds, one of fraudster Nirav Modi’s former companies, owned the intellectual property and sold its inventory and assets in late September, following its declaration of bankruptcy in February.

ABG Intermediate Holdings, which trades as Authentic Brands Group, purchased the legal rights to the “best friend” phrase which can be used in the US, Canada and European Union.

Court Records stated the company’s IP and assets sale totalled US$5.7 million (AU$8.1 m), with SimplexDiam purchasing US$1.9 million ($2.7 m) in inventory across 28 lots including diamond rings and wedding bands.

It has also been reported that Christie’s will auction Moon of Baroda diamond – worn by Monroe in the movie when she sang the iconic song – on 27 November.

The stone is a 24.04-carat pear-shaped fancy yellow diamond and is said to have a ‘rich history’ dating back hundreds of years.

Emerald ring breaks record 

In other auction news, an emerald ring has fetched more than double its presale estimate and broken records at a Sotheby’s auction in New York.

The piece featured a 10.68-carat lozenge-shaped Colombian emerald shouldered by baguette diamonds which managed to sell for US$1.2 million (AU$1.7 m), far higher than its US$300,000-$500,000 estimate. The sale represented more than US$113,000 (AU$160,000) per-carat.

The emerald contributed to the record-breaking auction, which made the highest value of sales at a in history at a Fine Jewels auction, totalling US$11 million (AU$15.6 m) with 75 per cent of items sold.

Kendall Reed, head of Sotheby’s fine jewels division New York, stated: “We saw outstanding prices for white and fancy-coloured diamonds, especially pear-shaped stones — all of which outperformed their estimates.”

Two private collections at the auction achieved “white glove” status whereby every piece was sold, according to Sotheby’s.

The next jewellery auction will be the Magnificent Jewels and Noble Jewels sale in Geneva where the late Queen Marie Antoinette’s collection will be viewed for the first time.
 

More reading
Let them eat pearls – Royal jewellery for sale
Indian jeweller linked to bank fraud scheme charged
‘Magnificent’ $26 million blue diamond highlight of auction
Pink diamond to break Christie’s records
 

According to data published in September, Millennials – consumers currently aged 21 to 39 – accounted for almost 60 per cent of jewellery sales in the US last year and 80 per cent in China .

Gen Z – people aged 20 and under – represent 35 per cent of the world’s population and are forecast to become the majority consumer group of diamond jewellery sales in coming decades, already representing 5 per cent of the US consumer market.

De Beers Group CEO Bruce Cleaver stated: “The younger generations present wide-ranging opportunities for the diamond industry with the significant size and purchasing power of today’s Millennials and tomorrow’s Gen Z consumers.”

“While both of these generations desire diamonds just as much as the generations that have come before them, there are undoubtedly new dynamics at play: those diamonds may now be in different product designs, used to symbolise new expressions of love and researched and purchased in different ways to mark different moments in life.”

The report pointed to four major characteristics that can be attributed to both generations’ buying habits: love is meaningful to them, they are digital natives, they value authenticity, individuality and self-expression, and they are engaged with social issues.

Cleaver went on to acknowledge that both generations are influenced by social media and online shopping, utilising both to research the diamond market before investing in a product, noting that 98 per cent of Chinese Millennial and Gen Z consumers research purchases through one or more channels before buying.

“The ‘always on/always connected’ nature of today’s consumers – buying what they want when they want it – is resulting in changes to the typical decision-making and purchasing approach. Retailers across a range of industries are finding they need to rewrite the rule book when it comes to forging and maintaining connections with consumers,” Cleaver said.

Among the changing requirements for diamond marketing targeted to the younger generations, the report noted the use of ‘influencer marketing’ as a key tool for engaging consumers. Digital marketing across Instagram, Snapchat and Youtube were considered top channels for social media engagement in the diamond sector.

The report also recognised differing socio-political attitudes among Millennials and Gen Z to their parents’ generation (Baby Boomers) in relation to sexuality, stating: “The young generations’ liberal attitudes towards sexuality and gender identity require businesses in the diamond industry to move beyond binary approaches to these issues by avoiding gender stereotypes and venturing out of traditional relationship contexts.”

Globally, Millennials represent 29 per cent of the total population equating to 2.1 billion people, while all older generations combined account for 36 per cent. In India, Millennials account for 31 per cent of the population and outnumber all older generations put together.

Millennials represent the “bridal generation” with the average age of marriage between 24-30 in main diamond-consuming countries. Bridal jewellery accounts for more than a quarter of diamond jewellery acquired by women in the US, China and Japan.

According to the report it is crucial that the diamond industry looks to the younger generations who are increasing spending while the Baby Boomers are decreasing their spending in the category. The World Bank forecasts Millennials’ total income will exceed US$4 trillion (AU$5.6 t) by 2030 and will have overtaken Gen X as soon as 2020.

Aside from the two younger generations, diamond jewellery demand as a whole increased last year, having reached US$82 billion (AU$115 b), up 2 per cent in 2017. Diamond demand in countries outside of Japan, China, India, US and Gulf (Saudi Arabia) – classed as ‘the rest of the world’ – includes Australia and European nations, which contributed a 2 per cent increase to US $18 billion (AU$25 b) in the sector. This was “due to strengthening macro-economic performance and currency appreciation against the US dollar.”

With growth in both population and interest in consuming diamond jewellery, it is imperative that jewellers across the sector look to Millennials and Gen Z for a brilliant future.

The three-day Symposium hosted a number of panels which discussed industry issues spanning traceability, challenges in the emerald mining sector, ethical supply chain and environmental impacts of mining. More than 200 foreign delegates and 300 local delegates attended the event, including speakers from 25 countries.

Symposium chairman and president of the Colombian Exporters Association, Guillermo Galvis, addressed the audience at the event’s 12 October opening in which he highlighted the importance of government and local communities working in cohesion to achieve sustainable mining practices: “It’s up to us to have a better industry,” he said.

These sentiments were reiterated by International Colored Gemstone Association ambassador to Colombia, Idolfo Romero Rodríguez: “I look forward to all the projects currently underway and those that are upcoming in order to have clear guidance with reporting standards of geological information and to collaborate on this fantastic initiative,” he stated.

“Together, we are taking coloured gemstones—and especially our beloved emeralds—forward,” Rodríguez added.

The Colombian Government used the Symposium as an opportunity to unveil upcoming plans for its five-year ‘Mineral Digital Fingerprint’, which commenced earlier this year. The US$30 million project establishes the origins of minerals by identifying physical-chemical characteristics and has been organised in partnership with the Colombian Geological Service and the National University.

Gloria Prieto, from Colombia’s Ministry of Mines and Energy presented the Fingerprint, which can also be used to trace the different stages of exploitation, refinement and commercialization of the minerals.

Delegates from luxury brands included Van Cleef and Arpels and LVMH, with the latter’s environmental project manager Cathelijne Klomp hosting a presentation which stressed the importance of companies ensuring all elements of their products are ethically sourced.

The CIBJO Congress immediately followed the Symposium from 15 October. Colombia’s vice president Marta Lucia Ramirez attended the conference where she outlined challenges within local industry and stressed the importance of expanding the country’s jewellery sector.

CIBJO President Gaetano Cavalieri unveiled the Federation’s Responsible Sourcing Guidance, which will achieve Blue Book status. He stated: “As industry leaders, our obligation is to ensure that our sector is able to evolve and adapt in accordance with changing business, technological, social and geopolitical conditions.”

“Staying in one place effectively means that you are moving backwards, and that is not acceptable.”

Responsible Sourcing Commission was established, with Philip Olden appointed as its president in order to change and amend the working document in future if need be.
 

More reading
Emerald symposium returns for second event
Who cares about gemstone supply-chain transparency?
Calls for more transparency at World Diamond Congress
 

The Salera’s Jewellmasters in Maribyrnong’s Highpoint Shopping Centre was robbed at 2:30pm on 17 October when a man jumped over the counter and took diamond jewellery valued at more than $100,000.

Storeowner Alfredo Salera told 9News his 82-year-old wife attempted to stop the assailant and was violently pushed to the ground during the attack.

“I heard screaming inside the shop and it was my wife. She was very, very upset because she tried to stop the man, but she was not able to. I saw the man run like a wild bull into the corridor and disappear,” Salera said.

“This was a tragic situation… It all happened in about 20 seconds.”

Salera took his wife to the hospital where she was treated for bruising on her arm and back, she was reportedly “very shaken” by the assault.

Detective Senior Constable Dean Scano also spoke with 9News about the ongoing investigation and stated it was a “brazen, pre-planned crime.”

“He would have had to have done a fair bit of pre-planning to know where the emergency exit was. He had an accomplice who was waiting at a getaway point.”

The man fled the scene in a white 1997 Honda Accord, which was later recovered.

Victoria Police has released the CCTV footage from the robbery, as well as other footage from Highpoint that it hopes will help identify the perpetrator.

Investigators are urging anyone with information to contact Crime Stoppers on 1800 333 000 or submit a confidential report online at https://ift.tt/TqINjN

More reading
Jewellery store robbery in Maribyrnong
Local stores robbed; Hatton thief freed
Michael Hill store robbed again, no arrests made
 

WATCH NOW:

Each month we explore a select retail outlet from Australia and around the world, with directors and owners briefing us on the decisions behind the design.

OCTOBER SPOTLIGHT: UNIQUE  OPAL MINE ADELAIDE			SEPTEMBER SPOTLIGHT: HEUB			AUGUST SPOTLIGHT: DNS JEWELLERS
Country: Australia Name: Tim Sheridan and Steven Miles Position: Co-owners			Country: United States Name: Soigne Kothari Position: Partner			Country: Australia Name: Dean and Nic Sumner Position: Co-owners
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JULY SPOTLIGHT: DIAMOND EXCHANGE			JUNE SPOTLIGHT: STEARNS JEWELLERS			MAY SPOTLIGHT: MCLEAN & CO JEWELLERS
Country: Australia Name: Laura Howard Position: Senior diamond specialist			Country: Australia Name: Rick Stearns Position: Managing director/ Master jeweller			Country: Australia Name: Stuart Mclean Position: Director
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APRIL SPOTLIGHT: DIAMOND BOUTIQUE			MARCH SPOTLIGHT: CAROLINE NÉRON			FEBRUARY SPOTLIGHT: E.G ETAL
Country: Australia Name: Olivia Hutchison Position: Director			Country: Canada Name: Caroline Néron Position: Founder			Country: Australia Name: Emma Goodsir Position: Director E.G Etal
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Posted October 03, 2018 |

UNIQUE OPAL MINE ADELAIDE’s greatest attraction is the opalised dinosaur from Cooper Pedy on display. 

STORe: UNIQUE OPAL MINE ADELAIDE   Country: Australia Names: Tim Sheridan and Steven Miles Position: Co-Owners
When was the renovated space completed? The jewellery store on the ground level was established 40 years ago and the mine beneath the shop was built 35 years ago. The old owner showed us photos of the renovation and from our understanding, the mine space was mainly dug out with wheelbarrows, which nowadays you would never get away with. We took over the business about five and a half years ago. Who is the target market and how did they influence the store design? We have a lot of tourists and mining enthusiasts – “rockhounds” we call them – who visit. In the school holidays we have a lot of families and children coming to see the space. The mine has possibly the largest retail opal collection in the world. We do cutting and polishing demonstrations in the mine space so it’s very interactive for both our visitors and ultimately, our customers. With the relationship between store ambience and consumer purchasing in mind, which features in the store encourage sales? Most of our customers venture downstairs into the mine and that really encourages sales. They can see all the different types of Australian opals we have on offer. The mine space is split into Queensland boulder opal, Adamooka and Cooper Pedy sections so customers can identify different types of opals and discover what they like. What is the store design’s ‘wow factor’? We have an opalised dinosaur from Cooper Pedy on display. The Plesiosaur was originally on display in Adelaide Museum and the miner who found it later had it in a box in his garage. When we found out, we flew right over to check it out. The mine space is also lined with around $150,000 worth of opal, so that’s an attraction.

A profit margin isn’t just something that retailers should measure; it’s a metric that retailers should strive to continuously improve. As author Doug Hall wrote, “If your profit margins aren’t rising, chances are your company isn’t thriving.” To help do just that, here are some pointers that can enable retailers to widen their margins. Check them out to see how they can be applied to any business:

Lower the cogs

Take a closer look at all materials and procedures required to create or source your products and establish how these materials can be purchased for less without compromising the quality.

Is it necessary to order larger quantities? Are there any middlemen or administrative expenses that can be cut from the process? Consider these things carefully and then take action accordingly. Let’s say a retailer needs to increase order quantities for a particular item to lower its price.

In this case, the retailer should first look at inventory data and determine if he can afford to order certain items in bulk. If not, would it be possible to consolidate orders with other items or team with other purchasers to increase buying power? This is something that large retailers have been doing for quite some time now. A few years ago, for example, Walmart sought out co-purchasers for raw materials so the chain could consolidate purchases and get more buying clout.

Explore options and run them by suppliers to see if better deals can be negotiated. If suppliers won’t budge, don’t be afraid to check out other suppliers to find out if they can offer more favourable terms. Make sure existing suppliers are aware of this though, as they might end up offering better rates.

Increase prices

Increasing prices enables retailers to make more money on each sale, thus increasing margins and improving the bottom line; however, retailers can baulk at the prospect of increasing their prices out of fear that they’ll lose customers. Pricing decisions depend on each company’s products, margins and customers. The best thing to do is to look into your own business, run the numbers and figure out your pricing sweet spot.

On top of considering basic pricing components like costs and margins, look at external factors such as competitor pricing, the state of the economy and the price sensitivity of target customers. Also take the time to consider what types of customers you want to attract. Do you want to sell to shoppers who would take their business elsewhere just because they could get an item for less or would you rather attract customers who don’t base their purchase decisions solely on price?

It’s surprising to find that the majority of your regular customers may actually belong to the latter group – a study by Defaqto found that 55 per cent of consumers would pay more for a better customer experience.

Taking all these things into consideration, a price increase can be calculated and tested on a few select products. Retailers can then gauge customer reaction and sales from there. Also consider implementing creative or psychological tactics when coming up with prices in order to make them more appealing. Tiered pricing is one effective strategy.

In order to combat cheaper knock-offs one US shoe retailer, Footzyfolds, decided to revamp its prices… but not in the way one might think. Instead of lowering prices across the board, Footzyfolds introduced a high-end category for its products. With the new pricing format, it lowered the price of its everyday products to $20 a pair and introduced a new ‘Lux’ category for $30 a pair.

Owner Sarah Caplan told the New York Times that the move helped increase revenue dramatically. “We actually have had the most interest in our higher-priced shoes,” she said, adding that the business reported a 100 per cent increase in revenue after launching the high-end line in the summer of 2010.

The way to communicate new prices is just as important as the prices themselves so put thought into how these messages are relayed to customers. Give shoppers a heads up prior to any price hike; let them know it’s happening and how it’s going to benefit them.

Also, be sure to communicate differentiating factors as well as value in service. Justify higher prices by telling customers why the store is different or better than the competition. Ensure customers are aware of it however this is demonstrated. The right price increase could improve a store’s bottom line significantly enough to offset any losses from shoppers who decide not to buy from you. Additionally, having fewer customers helps lower operating expenses while freeing up staff to increase service quality at the same time.

Reduce expenses with automation

Automation can do wonders for productivity as well as the bottom line. By putting repetitive activities on autopilot, retailers can reduce the time, manpower and operating expenses required to run a business.

Are there any cumbersome activities that are eating up the time of your staff members? Take note and then look for solutions that can take care of them automatically. For instance, to save time and operating expenses, I know of one menswear store that automated the task of transferring sales data to accounting software. Rather than manually plugging the numbers into the program, the owner integrated his point-of-sale system with accounting software and got the two tools talking to each other so that information was automatically transferred from one program to the next.

The result: he has been able to free up time so he and his staff could devote more energy to helping customers. He also estimates that the automated system in his store saves him 40 to 80 hours a week. This doesn’t just apply to data entry. These days, there’s usually an app for most of the boring administrative tasks.

Optimise supplier relationships

Earlier in this article, I mentioned negotiating better contracts with suppliers to reduce the costs of goods and widen margins. Consider building stronger relationships with suppliers. Ask if there’s anything that can be done to make things easier or more cost-effective for them so they can fulfil orders in a more efficient way.

Strengthen relationships with suppliers and determine how you can work better together. Doing this can help you identify ways to reduce product costs and operating expenses. At the very least, it should improve workflow and productivity.

Personalise your offers

Another effective way to improve margins is to offer tailored discounts. Remember, not all customers are wired the same way; some people may need a discount incentive to convert while others don’t really require a lot of convincing.

Identify how big of a discount is necessary to convert each customer. Case in point: Online bicycle retailer BikeBerry.com sought the help of a big data company to analyse customer behaviour and gather intel on the past purchases of customers, their browsing histories and more. The store got to know its customers and was able figure out the most cost-effective way to convert each one.

BikeBerry then created a series of email campaigns with five different discount offers tailored to each individual. Customers received one of the following offers in their inbox: free shipping, 5 per cent, 10 per cent, 15 per cent or $30 off new products. The campaigns ran for two months and the business not only increased sales within that period but also widened its profit margins by not offering discounts to customers who would convert at a lower threshold.

Instead of offering blanket discounts, go through the purchase histories of customers and personalise offers based on their behaviour and preferences. Doing so won’t just increase the chances of conversion; it’ll also help you maximise margins.

A retailer doesn’t always have to make drastic changes to a business to significantly improve the bottom line. As this post has shown, sometimes a simple tweak in pricing or a phone call to a supplier can pave the way for wider margins.

3D printing technology has advanced at an unfathomable rate in recent years and, as the machinery and technology have become more accessible to manufacturing jewellers, many have opted to pick up the skill.

A reduction in equipment prices and an increase in onshore casting companies have helped Australia and New Zealand to catch up to international 3D printing pioneers. Early concerns raised by artisanal jewellers that 3D printing would result in job losses or poorly assembled products have been cast aside as other industries embrace the once-feared technology.

Some reservations towards 3D printing still remain and invested parties agree that comprehensive education and training are required in order to capitalise on the expanding sector and ensure the quality of products.

Get the resin right

Once priced out of reach, 3D printers are now considered affordable for personal use, having dropped to under US$400 for a small printer that can be installed at home. This opportunity offers endless possibilities for boutique and amateur jewellers, but such unrestricted access raises concerns about quality control, notably that novice CAD designers might create casts that fail to produce quality jewellery.

Palloys is a jewellery division of Pallion and was one of the first local companies to embrace CAD and silicon casting methods. Operations manager Chris Botha acknowledges that attitudes to the technology have changed and cautions newcomers to ensure they are well-educated in the practice before investing heavily in both the machinery and software.

“The biggest change in recent years has been the cost of the equipment involved in printing. Software has remained pretty expensive but the hardware in 3D printing has dropped dramatically,” Botha says, adding that Palloys is committed to training and education in these technologies.

“Anyone can now purchase a printer to produce jewellery designs. Our aim is to address this hole and ensure knowledge in the trade is shared.”

As machine prices have dropped, producers of 3D printers have altered their resin specifications to lock customers into purchasing only corresponding resins for their printers. This means there are many different printers and resins in the market at the moment, each with its own unique features to suit different production needs.

Abraham Tok, of Sydney’s Tok Bros Jewellery, uses Form2 3D printers manufactured by FormLabs, which require blue and purple castable resins. He says jewellers and designers should research thoroughly before purchasing a printer.

“Do your homework and be very patient; getting started in 3D printing can be time consuming for newcomers and there can be a lot of tweaking and adjusting to get the right balance of settings on your printer and resins,” Tok explains.

“We recommend asking manufacturers for samples so you can benchmark them against others – we send resins to customers for them to try on before producing in precious metals.”

Botha echoes these sentiments and warns that many companies are distributing printers only manufactured to respond to a particular resin combination, usually offered exclusively through the company.

“The industry is changing and we will soon see companies that are coming in at a low price point but are fixing their hardware so it will only work with one type of resin. Much in the same way, you can’t move HP printer ink onto another traditional printer,” Botha says.

Anthony Nowlan’s business Evotech Pacific exclusively distributes GemVision Technology along with open-source printing line Asiga. Nowlan says having an open-source model offers manufacturers more diversity in what casting house they choose and which products they can model for commercial production.

“The advantage of the Asiga printers is that you can also use open-sourced resins from other companies,” he says.

“As long as you know what the exposure rate of those resins are – which the companies are usually happy to divulge – then you dial those into the software and use those without issue.”

Nowlan says different products suit different requirements, which provides flexibility to the user. “It’s all about choice,” he explains. “Having the choice to utilise a resin that works with your casting company or, if you do your own casting, having an investment that works better with one resin. It is advantageous to be able to experiment.”

Sydney-based casting house Chemgold offers a wide variety of software and printing services. Director Larry Sher says the company aims to account for the ever-broadening requirements of manufacturing jewellers by operating printers across different casting systems.

“We have a huge range of 3D printers to allow us to accommodate the variety of designs our clients need us to produce for them,” Sher says. “Certain designs may not be suitable for resin so they are produced using Multi Jet printing technology, which is relatively smooth.”

Sharing resources

Navigating the gamut of 3D printing and resin purchases can be daunting and time consuming, as is learning the intricacies of CAD design and its software. To assist, resellers and printing companies are striving to educate clients.

FormLab printers distributor LST Group has launched 3Design training lounge, an online forum where customers can connect with industry specialists to have all their questions answered.

“The 3Design Forum is the largest jewellery-specific CAD community and we offer a large variety of complimentary training resources,” managing director Chris Hill says, adding, “Our local product specialist has 14 years’ experience in providing customised training solutions.”

Palloys recently launched an online platform called JewellersPal and the company offers a space where 3D printing users and CAD designers can share questions, tips and hints to help manufacturing jewellers.

“We’re trying to lift that little mantle of secrecy off the trade; there’s this perception that everyone has been hiding their secrets to turn a profit, which is not actually true,” Botha says.

Evotech Marketplace and Evotech Vendor are two programs currently available to manufacturers and casting experts through Evotech Pacific.

“Because they’re only fairly new, we are concentrating on the design aspect of the Marketplace and Vendor stores,” Nowlan says.

“We will be branching out and inviting service bureaus that concentrate on 3D printing to join the Marketplace. That way, clients will be able to upload files and get a quote directly from any company on the marketplace and then they can send the model to them or the casting house.”

Chemgold’s Custom Design Form provides manufacturers with a checklist of key information and dimensions in order to complete their designs.

“A critical aspect of CAD is communication, which is why it’s best to use the form. This prevents delays in obtaining certain dimensions, along with ensuring our goal of providing exactly what our customers want the first time,” Sher says.

“Once comfortable with the design process, and if the customer is doing more volume, we would recommend they consider purchasing the CAD software themselves.”

All parties agree that social media has also been advantageous for local manufacturers seeking advice from those who have been in the industry for a longer period.

3D printing at the retail level

Reid Jackson manages Townsville’s Regional Manufacturing Jewellers and says the addition of his Asiga printer has increased the turnaround time on production. Furthermore, the technology has improved rapidly since purchase.

“We chose the Pico2 39 and, in the 18 months since purchasing, we’ve had possibly seven upgrades and have noticed the improvement in resolution and print growth lines diminish tenfold,” he says. “Our print time has been drastically reduced.”

Jackson says he has also benefited from the additional support he has received in online forums: “Sure, you may have failures in the beginning but throw up a problem and, in no time flat, you will be presented with many answers from around the world.”

For manufacturing retailers looking to dip a toe in CAD and 3D printing, Palloys offers My Dream Ring, a collection of almost 500 pieces that can be prototyped in store within 90 minutes. The customer can benefit by trying on the prototypes – constructed in hard, black plastic – in order to see how the final product will look.

“That’s the biggest draw right now for non-manufacturing retailers,” Botha says.

“If they own the IP on their files and they have the files locally, it’s very quick for them to prototype something for their customer to try on.” Botha sees this as the future direction of jewellery retail.

“I think that will be the future of these nouveau printers that are coming out,” he adds. “The quality will never reach a $150,000 printer but the quality is good enough for the customer to see what it looks like on the finger.”

Chemgold also has a library of CAD designs in its JewelMount Collection, which covers a range of classic styles suitable for most manufacturing jewellers and retailers.

“All they need to do is advise which aspect of the design they wish to modify,” Sher says. “This can be changes to the stone and shank dimensions, mixing shanks and settings or adding extra stones.”

The technology has advanced to help retailers and jewellers win on-the-spot sales. They can meet their customers’ need for instant gratification without waiting for a product to be manufactured.

Botha recalls a time when his biggest sales “came from me going home and printing a prototype for a customer overnight”.

“Nowadays, you no longer need to know how to operate a CNC; you just need to know how to press a go button and you can have it in an hour and a half,” he says.

Palloys calculates the cost of a black, plastic ring prototype around 45 cents if the low-end printer runs for one year alone. Calculations are made including the cost of a $90 litre of resin, which makes 600 rings.

Hill has found production rates of prototypes to be at a similarly low cost to manufacturers using FormLabs.

“The printers we offer are capable of printing high-resolution jewellery models in a single build at a cost of 40 cents per model. Why outsource your printing when you can do it faster, cheaper and better in-house with a Form2 3D printer?” he says.

The future is metal

UK manufacturers Cooksongold partnered with Electro Optical Systems (EOS) to produce the world’s first direct-metal printer, designed to cater specifically to precious metals used in jewellery manufacturing without the middle process of casting.

The printer uses a sintering method, heating powdered precious metals at a high temperature and using a laser that follows a software design similar to CAD to identify a pattern. The process, known as additive manufacturing (AM), may seem like a far-off future invention; however, companies in Europe and the US are in the early stages of producing quality jewellery using the method.

Cooksongold and EOS displayed the printer this year at International Jewellery London (IJL) and promised manufacturers “the power and freedom to create complex jewellery in a matter of hours”.

David Fletcher, Additive Manufacturing business development manager, says the IJL would provide the wider industry an insight into the forthcoming technological advancements available in 3D printing.

“[The system displays] how the jewellery industry can now adopt the process as part of their supply chain,” he says. “We believe that the more people understand about the technology, the more they will be able to push the boundaries of jewellery making by completing previously unachievable designs.”

Back on home ground, suppliers and casting companies are well aware of AM capabilities and predict the technology will become more of a reality within the next decade. Nowlan agrees it needs fine-tuning before it is embraced locally but believes it’s not far away.

“It’s one thing to print something in titanium or steel but you can have certain issues with the alloy content and the equipment itself when it comes to precious metals,” he says. “It’s not far off and additive manufacturing is definitely going to be the next revolution.”

Tok is hesitant of the current production value offered by AM and says it is still in its early days: “The technology currently exists to print 3D models directly in gold but the results are not good enough for fine jewellery production; the technology needs more time to develop,” he says, adding, “Should the results be up to our production standards then we would definitely consider implementing this technology one day.”

Sher believes that it won’t be long before manufacturers look to join the movement if the cost of the direct-metal printers drop similarly to 3D printers.

“Currently the machines are extremely expensive and require large volumes of precious metal to run and the surface finish is very low compared to our castings from resin,” he says.

Jackson agrees but says jewellers should be keen to embrace new technologies as they become viable: “My advice to any manufacturing jeweller thinking about it is just get on board with this technology. It is so exciting and rewarding and to keep all in-house, if possible, just means more dollars in your pocket – it’s a win-win solution all the way.”

A gemmologist is someone who has studied the field, is proficient in their knowledge of gemstones and can identify and classify the material so why doesn’t the industry accept the descriptions given by gemmologists?

According to the field of gemmology, a gemstone can be a mineral that naturally occurs and is mined out of the ground, cut and then polished. More often than not, it is then sold to the consumer as ‘natural’.

Many gemstones are treated, like sapphires for instance; however, in most instances, these treatments are industry-accepted and therefore considered a ‘natural good’. One example of this is the ‘oiling’ of an emerald.

A gemstone can also be man-made, which is where we get into technical terminology as all man-made items with the same chemical composition as naturally-occurring gemstones are currently known as ‘synthetic’.

Synthetic is a simple term when, for all intents and purposes, man-made gemstones are the same as naturally-occurring gemstones except that they are made in a laboratory.

Another type of gemstone is ‘imitation’. An imitation can be almost any type of material that imitates a gemstone. Perhaps the most common is paste (glass) imitating diamonds and sapphires. When gemmologists use the term imitation, we mean an item that might look like a specific type of gemstone but does not share the same chemical properties.

Still, within the jewellery industry there are traders who sell gemstones to the public using the wrong words and provide incorrect information to consumers. In my opinion, this miscommunication stems from terminology backed by the trade at large, including former heads of the Jewellers Association of Australia (JAA) in the early 2000s.

The said terminology dictates the following: natural – natural, removed from the ground and cut, then polished and set into jewellery; created – made in a laboratory, and with the same chemical composition as the natural item; synthetic – a pale imitation, often glass, pretending to be something else.

This is confusing for anyone who has qualifications in gemmology because it is quite simply wrong! I used to work in a large store that had a couple of natural sapphire pieces. These pieces were generally Australian dark-blue sapphires and were communicated to staff and consumers as natural sapphires, which was technically correct from a gemmological perspective.

This store also sold created sapphires and these were explained as “gemstones created in a laboratory that are the same as natural gemstones”. While this was technically correct, I had an issue with the word choice of ‘created’. You see, the store also had synthetic pieces that were described as “glass that is similar in look to sapphire”. This is where the entire trade falls down.

That same store stocked watch brands including Citizen, Seiko and Omega, whose models contained ‘synthetic sapphire-crystal glass’. So a salesperson who was telling a customer 10 seconds ago that ‘synthetic’ meant an item made from paste (silicon oxide), making it an imitation of the real thing, was now telling the same customer that they should pay extra for a Swiss or Japanese watch that had synthetic sapphire-crystal glass!

Doesn’t this mean that it is just silicon oxide? Of course not. The watch companies listen to gemmologists and industry experts, respecting scientific nomenclature enough to abide by the naming conventions that exist.

What happens to consumers who have been told that a synthetic is an imitation but also something that has been created is synthetic? They get confused. Who has caused this confusion? Confusion that creates a lack of trust between consumers and jewellers and which is hurting the entire industry? The industry itself has caused it by using ‘created’ and ‘synthetic’ in the wrong contexts.

The industry needs to accept the proper scientific nomenclature established by the field of gemmology. If we accept gemmological terms, then this issue of confusion is immediately gone. If we want to use ‘created’ then we must use it only interchangeably with the term ‘synthetic’ – the word ‘imitation’ must remain as imitation. I hope the trade can band together and use the correct terms to counter-act this once and for all. We don’t sell 9-carat yellow gold as 15-carat copper-silver alloy now, do we?

Name: Masis Agopyan
Business: Erebouni
Position: Owner
Location: Sydney
Years in the industry: 25

Expertise Events managing director Gary Fitz-Roy, organiser of IJF, said visitor attendance “lifted across the Saturday and Sunday”, while the keynote seminars drew crowds in the afternoons.

“Overall, we finished in double-digit growth which is pleasing, but it [visitors] is only one measure. While the numbers are important I think the real shift was around buying and the positive attitude from both retailers and exhibitors. The industry needs to start looking a lot more at the glass half full, as all business is challenging, but it is what you make of it,” he said.

Fitz-Roy said the increase in visitor numbers should be kept in context given the JAA’s attempt last year to launch a competing trade show on the same dates as the IJF.

“While I am surprised at the real increase, I think we need to keep it in context. Last year there was a lot of controversy around there being two trade shows and the industry divided. That in itself was quite negative despite it being resolved going into the fair,” he said.

After the JAA cancelled its proposed trade fair last year, Fitz-Roy said Expertise Events was still working to reunite the “divided” industry.

“I think retail has done it tough for a few years and sooner or later you need to get on with running the business, and the Fair represents the most time and cost-effective way to view what’s new and buy in a concise way,” he said.

Nationwide Jewellers managing director Colin Pocklington said the buying group experienced increased attendance on last year with 391 members from 158 stores accounted for.

“It surprised us because with the economy being so poor we expected less people but we got more. Last year we registered 147 stores. We put a lot of effort into our programme and we marketed to people all of the things we were doing across marketing, workshops and social events. I suppose the sum of those events appealed to a lot of people,” he said.

Pocklington said many members utilised Nationwide’s six months interest free financing scheme to place store orders of $25,000 to $50,000 per store.

“I think probably because trading has been a bit tough lately, more members used our finance than usual. It supports our preferred suppliers on the floor as well, so it works for both suppliers and our members,” he said.

Many exhibitors also reported a successful weekend. Ikecho Pearls director Erica Madsen said she experienced the industry’s reformation through the interactions made at her stand and that she would “be exhibiting at the Fair again next year.”

“We found the Fair was consistent across the whole three days, there wasn’t a lot of foot traffic, but the buyers that came were serious buyers and wanting to be there to order stock,” she said.

“We didn’t hear much negative talk, which was refreshing.”

Rachel Maunder, senior sales marketing manager of Gerrim International said the team did not exhibit last year, however it did receive positive feedback from visitors at the event.

“The people who did come to our stand were definitely there to purchase from us. There wasn’t much foot traffic but we found we were consistent across all three days,” she said.

“I found that the retailers were really confident in buying and were confident in our product. They knew what they wanted or if we did have to get them over the line it wasn’t that they were worried about it not selling.”

Fabuleux Vous director Helen Thompson-Carter said while the Fair was smaller than in previous years, the New Zealand-based business experienced susbtantial growth on last year, processing an estimated four times as many orders.

“We had an outstanding Fair and while we had a very good fair last year, we did manage to quadruple our results this year. It’s probably the best fair we’ve ever had and I think it’s a classic case of less is more,” she explained.

“While the Fair was very small, I thought it consisted of the same degree of quality from exhibitors. We know from the half empty glass point of view that there are a lot of stores closing in New Zealand and Australia, but what that means is that like most other industries, the jewellery industry is just consolidating.”

Thompson-Carter stressed that retailers who did attend the Fair benefited from getting an insight into upcoming industry trends.

“The really good retailers will continue to go from strength to strength, but those that choose not to embrace digitalisation, social media and the smaller design-driven different brands, and unique pieces of jewellery as an art form, will slowly and consistently disappear,” she said.

Cudworth Enterprises director Darren Roberts said retailers needed to make an effort in attending the IJF to ensure its success for years to come.

“Without the support of the retailers and the foot traffic, the Fair will disappear, as it has in other industries. Jewellery fairs in general overseas in Italy, England and Hong Kong have all scaled down because they’re not getting the support from retailers.”

Lester Brand, managing director of Lester Brand Jewellery said he hadn’t exhibited at the Fair in years and said he was “happy to be back at the event”.

“We were able to catch up with some customers who we don’t see very often because they are from some of our rural areas, so that was good,” Brand said.

“We will certainly be there again next year. But from a more globalised perspective, I would have to say I thought the attendance was quite low compared to some years ago. I accept our economic conditions at the moment are quite challenging and our federal politics don’t help, but I think, as an industry, we should be working a little bit harder to support the event.”

Alluding to the buying group’s pre-fair events, Brand said: “Some circumstances lead retailers to be pulled away from the Fair and I think we need to consider what is best for our industry, and then we may have a better Fair in future years that’s also better for retailers and suppliers alike. Given that the industry is not in the boom times, as it once was, I believe the model of individual group buying days is over, it doesn’t work as well as it once did, for either the supplier or the retailers.”

Paterson Fine Jewellery managing director David Paterson noticed the swell of visitors on the Saturday taper off on the Sunday afternoon and recognised the support of buying group members’ at the event.

“This year was surprisingly good, especially considering we weren’t optimistic about the amount of buying group members who might attend event at Darling Harbour. At the end of the day many supported the Fair regardless of their own buying group trade day, so it was a good weekend for us,” he said.

“I don’t see the need any longer for the group buying days before the Sydney Trade Fair. A better result for suppliers would see all groups reverting back to the Nationwide model where seminars and presentations are done at the Fair rather than at their own events offsite and many days before the IJF. It brings everyone together and unites the industry. Group buying days are terrific events at earlier times during the year however.”

“The groups should know that the suppliers will have the same deals at the Sydney Fair as they do at the pre-fair buying group days, and that way it will reduce replication and save everyone – including their members – a lot of time and money.”

While the aforementioned consolidation and reuniting of the industry appears to be in its early days, those who did visit the event appeared to be proactive in placing orders, as was the case for Timesupply’s Ken Abbott.

“We found our retailers had very positive attitudes and were ordering freely and asking for orders to be delivered as soon as possible,” he said.

Duraflex Group Australia managing director Phil Edwards said it was the attitude of visitors that dictated the overall atmosphere of the event.

“Retailers that did attend appeared more focused with a clear plan and direction on how they will be moving forward. There was less general review and consideration in their interactions as they were more focused on either ordering or moving on to their next meeting,” he stated.

These sentiments were reiterated by Worth and Douglas director Chris Worth: “Overall we found the attitude to be very positive and we always see good uptake in ordering new products in the lead up to Christmas.”

“It’s always a great event for launching new releases and our latest collections were well received,” Worth said.

The 2019 event has been scheduled for 24-26 August.

Award winners bask in glory The three buying groups across Australia and New Zealand celebrated their members’ achievements with awards ceremonies at the International Jewellery Fair as well as at independent conferences. Nationwide Jewellers held its celebratory dinner at ICC Sydney on Sunday 25 August, where it commemorated 20 years of travel to Antwerp for diamond buying and 25 years of business in New Zealand. Leading Edge Group Jewellers hosted a three-day conference in the Hunter Valley ahead of the IJF. Managing director Joshua Zarb said the buying group’s awards ceremony was a highlight of the event with Ted Pevy recognised for his lifetime achievement to the group, with a portrait painted in his honour. Showcase Jewellers celebrated its retailers and suppliers at a conference gala dinner where Loloma Jewellers’ Graham Jackson was celebrated for his long-term commitment to the buying group. From now on the Retailer of the Year award will be known as the Graham Jackson Retailer of the Year Award. LEADING EDGE GROUP JEWELLERS Member of the year Regency Group Store of the year Australia: Jim Hughes and Sons NZ: Dinsdale Jewellers Lifetime achievement award Ted Pevy Jewellery Centre (top left) Supplier of the year Diamonds & Gemstones: La Couronne Precious Metals: Jewellery Centre Watches: Seiko Silver, Fashion & Branded Jewellery: Duraflex Group Australia (bottom left)   NATIONWIDE JEWELLERS Member of the year Australia: Springfield Jewellers, Springfield, QLD (top left) NZ: Country Jewel, Winton Supplier of the year Australia: Jewellery Centre (bottom left) NZ: Peka Agencies Apprentice of the year Mikaela Donovan, Georgies Fine Jewellery, Narooma, NSW Rising star award Erica Seath, Georgies Fine Jewellery, Narooma, NSW   SHOWCASE JEWELLERS Retailer of the year Keoghans Showcase Jewellers, NZ (top left) Supplier of the year Citygold Honorary award Graham Jackson, Loloma Jewellers (top right)