Results for November 12

How to survive the “Battle of the bots”

November 16, 2018

Online mega-retailers have integrated technology into their business models that attack and block competitors. CHRIS PETERSEN says every retailer should understand these tactics and how they affect bottom lines.

How to survive the “Battle of the bots” How to survive the “Battle of the bots” Reviewed by Unknown on November 16, 2018 Rating: 5

Preparing for change means sharing knowledge

November 16, 2018


Back in 2012, I wrote about how Australia tends to be up to 10 years behind other global jewellery industries in terms of technological innovation in the mass production industries.

However, in the past six years we have narrowed that gap greatly and are fast advancing in CAD/CAM to be on par with pioneering countries, including bringing it to small business.

Australians have become more globalised and are often willing to fly overseas to attend trade fairs and industry events. At worst now, we are only a year or two behind other countries in terms of taking up new technologies. The pace is picking up.

One factor opening the floodgates to CAD/ CAM manufacturing jewellers has been the deflation of cost for the equipment involved in printing. Jewellery CAD Software has remained expensive, but the hardware in 3D printing has dropped dramatically in the past six years.

Jewellers can now buy a machine for as little as US$500 that can print castable resins and it will ship with free CAM software. Commercially available printers were priced between $50,000 to $150,000 back when I started sharing my observations about CAD.

This drop in pricing will give advent to micro-industry jewellers working from home and selling online only, with little to no actual exposure to the formal jewellery industry. For casting companies, the challenge moving forward will be to keep pace with the constant release of newer resins and understanding whether or not we will be able to produce good casts using them, and helping provide that knowledge backwards to existing and newer CAM users.

While most monomer based resins are actually castable, there are a lot of resins that are not appropriate for the commercial process, and the onus is then placed on the casting company to produce a quality cast from unknown or un-castable resins, and in some cases casting houses may suggest producing a mould from such pieces, and rather injecting the mould with wax.

I’ve found over the last couple of years, very talented “old school” jewellers I have worked with have been snapped up out of the trade to work in management roles, or now run their own businesses, and the number of traditional jewellers on the bench is diminishing – apprenticeships look to be dwindling as well.

Many traditional skills aren’t going to be passed onto the next generation of jewellers, leaving an increasing pool of new jewellers who grow directly into CAD without a full understanding of the practical aspects of production on the bench, from what they produced on the screen.

In the next five to ten years I think we are going to see a lot more young people going straight from school, having already learned CAD, with a thirst to make jewellery. They will, with very little capital expense, have the ability to create products right from their laptops; we will see a lot more micro-businesses cropping up around these new jewellers.

The current “maker” community, traditionally producing toys and small components, are moving to wanting their designs in metal, and this requires casting typically, once they tie the casting process together with what they already print now, the leap to manufacturing jewellery is only a very small one.

However, the ability to create the CAD files and print them is one thing, but the knowledge required to determine if that product is market-ready is an acquired skill, as is the finishing of the product.

Traditionally trained manufacturing jewellers are dwindling in numbers, and we as the older generation of jewellers need to share as much of this vital information as possible with these up-and-coming jewellers – and the wider jewellery community – to ensure the next generation of manufacturers aren’t faced with gaps of knowledge.

We need to get that vital information about jewellery finishing, on the web as well, where everyone can get it, so this new pool of jewellers has a resource to go to, after their “physables” becomes actual physicals.

A number of casting companies, and CAD and CAM providers are building online platforms and forum spaces for all varieties of jewellers to ask questions about 3D printing, casting and prototyping. It’s an opportunity for us to all learn from each other.


Name: Chris Botha
Business: Pallion
Position: Operations Manager – jewellery division
Location: Marrickville, NSW
Years in the industry: 27 years


Preparing for change means sharing knowledge Preparing for change means sharing knowledge Reviewed by Unknown on November 16, 2018 Rating: 5

Defying drought: retailers reflect on dry spell

November 15, 2018


How can regional retailers change how they do business to counter difficult times? LUCY JOHNSON speaks to those who have tweaked their operations to adapt.

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.


Defying drought: retailers reflect on dry spell Defying drought: retailers reflect on dry spell Reviewed by Unknown on November 15, 2018 Rating: 5

Increase store visits with digital marketing

November 15, 2018


Omnishoppers account for a large portion of modern consumer groups and, while they may often shop online, there is no reason this cannot be converted to visits in-store. LAURA DAWSON explains how.

Think back to the last time you bought something in-store. Did you research it online and research it first? I bet you did… and that makes you an ‘omnishopper’!

An omnishopper is someone who utilises more than one retail channel when shopping. Perhaps they research online and buy in-store, buy online and collect in store or research in-store and buy online.

Bricks-and-mortar stores should be harnessing the power of digital marketing to increase in-store visits. Whether your website is a fun place to browse your range or an educational site with in-depth information about your products, it is integral for conversation and conversion.

Here are some tips on how to increase website traffic and then use the ensuing website data to activate in-store sales.

Harness data power

Data is important. To be able to drill down and understand buyer behaviour, you need the following metrics: look at what users bought or browsed, the devices they used to access the site, the times they visited, how they arrived on your page and where they went next.

Drive traffic to your website

To generate traffic, you must have a compelling and attractive site that encourages people want to do business with you. It must be active and updated with high-quality content and it must make use of search engine optimisation (SEO).

This means you have done keyword research and have included these keywords on your page, ensure you’re listed on Google Business and any other industry-relevant directories and have active reviews and listings on social media and use Google and Facebook for online advertising.

Once your users are on your site, it is helpful to capture their data with an email sign-up form.

Encourage sign-ups with a special discount or offer, like a five per cent discount in your online store or a gift with purchase.

If your email sign-up form is hard to use or requires too many steps, users are not going to bother.

Make it effortless for them to click through and give their information as your email list will form part of your digital-marketing efforts.

How to use data

Data is vital because it means you can shape what you do, based on your users’ behaviour – you can follow users wherever they go on the web; you can tailor blogs, content and campaigns using user data and conversions.

Let’s say you have looked at your data and found that shoppers aged between 25-34 are generally browsing your site from their mobile phones between 6pm and 8pm.

Perhaps they came via an organic search term and looked at the home page and product page before clicking through to a blog article.

You would use this information to make sure your advertising exists between 6pm and 8pm. You would also make sure that mobile users were getting the ads and that you wrote more content similar to the blog they’re reading.

Include this new content on your site along with a strong call to action to shop in-store for a special promotion. It’s actually just common sense. Break down your user data and use it to power your sales.

Content to mail out

Once you have a great database of email contacts, what do you send them to get them off the couch and into your store?

One idea may be hosting a theme day or special event to encourage in-store shopping, like an in-store flash sale. Special in-store discounts are also effective.

You need to create a sense of urgency so think about sending an in-store coupon and allow just 72 hours to redeem the discount.

You could also offer giveaways or some type of upgrade exclusively to in-store shoppers to incentivise them coming in.

You want to do just enough to deliver more value and create engagement but be careful to keep your promotions sporadic enough to ensure that people don’t come to expect deals like this all the time.

What has been discussed here are just some of the ways that you can leverage your website to drive visitors to your store. The ideas are limitless so go wild and use your imagination.

To achieve maximum success, it’s simply required that you think of your online channels – your website, your social media platforms – as in-store promotional tools as well as internet shopping destinations. That’s the real secret of omnichannel retailing.


Increase store visits with digital marketing Increase store visits with digital marketing Reviewed by Unknown on November 15, 2018 Rating: 5

Hong Kong Watch Fair continues to thrive

November 14, 2018


The Hong Kong watch and clock fair (HKW&CF) opened on 4 September with dazzling glitz and strong exhibitor and buyer optimism springing from a resurgent market. MARTIN FOSTER reports.

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

 


Hong Kong Watch Fair continues to thrive Hong Kong Watch Fair continues to thrive Reviewed by Unknown on November 14, 2018 Rating: 5

Coloured gemstones: a spectrum of opportunities

November 14, 2018


The uniqueness of coloured gemstones may be what attracts consumers but it is the health of Australia’s gemstone businesses that is a testament to the quality products available. LUCY JOHNSON reports.

Gemmology can grasp the fascination of amateur hobbyists who trek to find semi-precious stones through to high-end jewellers who use cut and polished gemstones to produce exquisite jewellery. The beauty of gemstones lies not only in their depth of colour or sharpness of cut but also in their diversity. No two are identical and differences in their aesthetic qualities, properties and values mean they can attract consumers right across the wider jewellery market who are seeking different price points and styles.

A passion for all things gems is what drives the following businesses, whose owners live and breathe the beauty that is coloured gemstones.

A sense of home

Rodrigo Orozco grew up in Colombia but moved to Australia more than 15 years ago. When he settled in his new home, he wanted to run a business that showcased the beauty he saw in his homeland. Falling for the lustre of Colombian emeralds, Orozco commenced his import business Beryllos, which has found success in the decade since its inception.

“One of the best ways to share my love for my country is through emeralds. They [Colombian emeralds] are definitely some of the most iconic and best-quality emeralds in the world,” Orozco explains. “Every time I sell a gemstone, I’m not just selling an emerald; I am selling my love for my country so it is quite a patriotic business for me.”

All Beryllos emeralds are sourced directly from mines in Colombia where Orozco says the quality of the product is universally unparalleled. Fellow Colombian emerald merchant Paris Lee agrees.

“I believe they are the best emeralds in the world for quality, colour saturation consistency and clarity,” Lee says. “These emeralds are known for ‘the garden’ within the stone, which refers to their unique inclusions.”

Drawing on her love of homeland Australian gemstones, Lee also sources gemstones from her own mine.

“I am also an opal miner in Lightning Ridge with my own opal mine and claim,” she adds with pride. “I am able to supply Australia’s national gemstone and the best opal in the world direct from the mine to market.”

Lee and Orozco aren’t alone in celebrating the riches of their country’s gemstones. Working in the gem fields of North Queensland was Doug Menadue’s first taste of coloured gemstones when he chose to leave his long-term career in computer programming for something new. It’s no surprise that Menadue’s favourite gemstone – Australian sapphire – comes from that region.

“The Australian sapphire is just beautiful and rare. A lot of people know we’ve got opal but that’s about it; they don’t know that we’ve got sapphire,” he explains. “Australian sapphires are different to the more common cornflower-ish blue; they tend to be a bit darker as where they are formed is quite an iron-rich environment under the ground.”

At his business Bespoke Gems, Menadue does precision cutting of all types of gemstones but he particularly loves cutting Australian sapphires. Their depth of colour appears best in a round brilliant, he says.

“They are a bit dark so fancy cuts can be lost on them,” Menadue explains. “Fancy cuts are good for lighter stones like aquamarines, garnets and tourmalines while, for Aussie sapphires, it’s a bit of a case of simpler is better.”

Ikecho Pearls is another company that appreciates Australia’s hidden treasures. In addition to pearls, the group has looked inland to source opals in the past year.

Director Erica Madsen did not have to search far to find a reputable source; her father, Erik Madsen has been mining for 40 years, most recently in Lightning Ridge, and he was more than happy to share his expertise.

“I source my boulder opal from Dad’s mines in Queensland and Lightning Ridge. He has the largest range of opals in Australia so I have a lot of variety to choose from,” Madsen says, also noting the value of the gemstone in terms of its consistency and lack of depreciation.

“A solid Australian opal can be a great long-term investment and will never go down in value or deteriorate. They are a very unique gemstone, almost all opal displays some form of pattern, and you will never find two opals that are the same.”

Generations of gemstones

Family businesses have proven to be the backbone of Australian gemstone suppliers across both mining and merchant sectors. Coolamon Mine has been yielding sapphires since 1989. Jenny and Jim Elliot were one of three families who were contracted with the Queensland government in 1984 to mine sapphires from a road reserve between Rubyvale and Sapphire.

“Jim was the engineer in charge of the road construction at that time but he became bitten by the sapphire bug. As they say, the rest is history,” Jenny says, explaining that initially the consortium reformed as Coolamon Mining to sell only rough blue sapphire to Thai dealers. It wasn’t until 2000 that the couple recognised the benefit of having the gemstones cut to sell onshore.

“We deplored the fact that when they went offshore and they lost their identity, and our best sapphires were sold as ‘product of Sri Lanka, Cambodia, Thailand’ or somewhere else to disguise their actual source,” Elliot recalls. “It has taken a long time to convince Australian jewellers that our sapphires are of highest quality and that many of the colours are unique to this particular area of the world.”

Brendan McCreesh is a second-generation owner of his family business, O’Neils Affiliated. His mother commenced operations of the gemstone trader in the 1970s and McCreesh says he is “privileged to be part of the industry.”

O’Neils trades in all gemstones but McCreesh says its almost impossible to pick a favourite species.

“Seeing a variety of breathtaking gemstones on my travels, you could say my favourite can change from day to day, but if pressed it would come down to a close race between a fine Burmese ruby, a red spinel and a neon blue-green tourmaline,” he says. “Once exposed to the diversity, individuality and endless beauty of the world of coloured stones, consumers are very often eager to learn more. It can be addictive.”

Another family-owned and operated gemstone business is K&K Export Import, which is run by Katherine Kovacs alongside her father, Charles, who established the business 50 years ago after moving to Australia.

“In the early days, my father dealt exclusively in opal before branching out into natural coloured gems in the early 70s, running the business here as well as having branches in Asia and Europe. We still do a fair amount of export to Asia, but these days the majority of our client base is at home here in Australia and tends to be manufacturers and designers,” Katherine says.

A passion for gemstones has passed through the generations and K & K continues to supply a wide variety of gems and coloured diamonds to the Australian market.

“The Australian market is very discerning in their gemstone tastes, which means we sometimes go through hundreds of carats to select stones with the right colour, cut and price. The other consideration is to find one-of-a-kind gems, a gem that might have an unusual colour or cut, something that I know I may never see again,” Kovacs says.

Diverse opportunities

In Melbourne, Wolski’s has a reputation as a trusted gemstone importer of sapphires, rubies, emeralds and aquamarines. Owner Witold Wolski has been in the business for 39 years and says that it is easy to appreciate gemstones for their sheer beauty; however, marketing trends must be taken into account.

“It is most important to have a feel for what will sell and buy accordingly. It is pointless to purchase a colour and quality in a gem that is popular in Vietnam, for instance, if my client base is in Australia,” he explains, “I import some semiprecious stones if I feel that there is a wholesale demand for them.”

Given the diversity of his gemstones on offer, Wolski enjoys the opportunity to travel internationally to source his gemstones.

“There is a lot of overlap in quality between mines and some countries so that it is impossible to say that I import exclusively from a particular country or mine. I travel around the world to major wholesale trading centres because that it where the prices are most competitive if you know the market,” he says.

Lee has used a similar business model to ensure the sustainability of Nature’s Gemstones. Aside from offering a variety of Colombian emerald, Lee also imports ruby, tanzanite, aquamarine, morganite and tourmaline. Depending on colour trends, Lee selected emeralds from different provinces, which display different colours, offering diversity to attract different consumers.

“Demand varies greatly with regards to colour interpretation and I select the blue and greens from Muzo and yellow/greens from the Chivor regions. They are supplied from the ethically-responsible miners and merchants with the best reputation for quality and cut,” she explains.

Madsen found that demand for doublets in Ikecho Pearls’ opal collection was dwindling and chose to move away from the product.

“Opal doublets are a thin section of either precious or crystal opal, glued to a glass, potch or tourmaline backing but, with no crystal cap to cover the opal, doublets only consist of the two layers,” she explains. “We started with high-quality, good-colour doublet opal from Lightning Ridge but have had feedback that customers prefer to sell a solid opal. We will now specialise in this area.”

Reaching full potential

Some treatments and techniques can add to the brilliance of a gemstone but the industry can be divided on what is ethical. Australian gemstone companies generally have their own policies on what is and isn’t acceptable where gem treatments are concerned. Coolamon Sapphires, for example, chooses to heat-treat its Central Queensland, blue and green sapphires to eradicate “sleepy or silky” appearances after faceting.

“This phenomenon is eliminated by replicating the natural formation and heating the stone to a temperature high enough to drive off or re-absorb the rutile, thus clearing the stone and making it brighter,” Elliot says. “It may brighten the colour but it does not change it, as is done by the rather controversial chemical modification by the addition of beryllium to the furnace. The Central Queensland blue and some greens are nearly always silky and will need treating but our beautiful yellow stones and most of our parti-colour stones almost never do.”

Nature’s Gemstones Colombian emeralds are no-oil gemstones, meaning they aren’t oiled with natural cedar oil to fill the surface.

“Ninety per cent of the world’s emeralds are oiled and it is a practice that is accepted within the trade,” Lee says. “Oil treatment optically improves the overall clarity and colour of the emerald. All treated gemstones must be disclosed as such. No-oil emeralds are quite rare and therefore are quality investment pieces.”

Menadue works hard to give gemstones optimal sparkle through his precision-cut process. He says in the early days he sourced many of his stones to sell to jewellers. Nowadays, much of his work is fixing poorly-cut gemstones from commercial gem cutters.

“The biggest problem is windows in the stones. The aim of the commercial cutter is to cut as heavy a stone as possible from the piece of rough. For them it’s not about cutting the most beautiful, brilliant or shiny stone; it’s purely about weight and it’s a commodity,” Menadue says of commercial cutters.

“When you show people a commercially-cut stone side by side with a precision-cut stone, they instantly see the difference. It’s like chalk and cheese. There’s beauty in a well-cut stone; it’s full of life when it’s cut to the right angle.”

To know is to sell

Orozco believes “Australians have an appetite for emeralds”; however, consumers sometimes avoid the gemstone given its lack of hardness.

“Consumers need to be made more aware of emeralds. People have a lot of concerns for them and tend to think it is fragile stone that will easily break. It’s not like a diamond where you wear it every day but it is sturdy enough if you care for it,” he explains. “The reason emeralds are often weaker is due to the inclusions – when they have inclusions they are weaker. That’s why I bring in quality material with quality inclusions so that customers can gain trust in emeralds.”

McCreesh believes the category is an excellent way to increase profit margins outside of the “competitive” diamond industry and education about the sector is paramount.

“It’s essential that retail sales staff have an understanding of the basics, the more knowledge, the more sales, of that there is absolutely no doubt,” he says. “We have produced a colour poster packed with information for this exact purpose; it informs and enlightens people to options and possibilities they would probably not arrive at on their own.”

Kovacs says there are some consumers who still have misconceptions about the industry and she is passionate about education as a means to counter this, drawing on her extensive experience with the Gemmological Association of Australia (GAA) where has she sat on various state and federal committees for more than 15 years. .

“Many, if not most, end consumers are researching on the internet before they purchase. If your client knows more than you do about your product, they will lose faith and respect for you. That goes for gem importers and retailers,” she says.

“Almost every day we have clients trying to source a gemstone or diamond that their client has seen on the internet. There are many times when the stone they’re trying to match is a one-of-a-kind, and we have to explain that we can’t always replicate Mother Nature, although we always try to find something that is at least similar, she says.

Parti-colour sapphires have recently become the drawcard among consumers who are happy to wear less-traditional gemstone colours, as Elliot has experienced at Coolamon.

“Gaining some traction for these stones on the jewellery market in Australia has been an interesting process, however, as our jewellers and their customers initially didn’t understand them well and tended to ask for the impossible. Now, the brilliant parti-colour sapphires are highly desired in their own right as they are unmistakably genuine, natural products,” Elliot says.

Menadue is one such cutter who has made remarkable pieces with Coolamon sapphires and says he is pleased to see jewellers commissioning more unusual cuts in a wider variety of gemstones.

“Everyone’s on their smartphone and on Instagram and they’re seeing a lot more creativity out there. Right across the board, colourful, wonderful things are happening out there, and I think people are starting to switch onto that and they’re getting more adventurous,” he acknowledges. “The jewellers who use my stones are doing their own thing. They’re open to new ideas in terms of coloured stones and design.”

Kovacs senior, Charles says in his 50 years in the gemstone industry he has seen great change in the sector, but clients’ passion for gemstones has remained steadfast.

“We are fortunate to have relationships with suppliers and clients that in some cases stretch back multiple decades; they’ve become like family to us! But we are also equally excited to work with and encourage younger designers,” he says.

It seems that the sector is as diverse and fascinating as the gemstones it sells.


Coloured gemstones: a spectrum of opportunities Coloured gemstones: a spectrum of opportunities Reviewed by Unknown on November 14, 2018 Rating: 5

Colour investigation: Beryl (Part 1)

November 13, 2018


What do emerald, aquamarine, heliodor and morganite have in common? They are all from the group of gemstones called beryl and are coloured by trace impurities. KATHRYN WYATT reports.

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.


Colour investigation: Beryl (Part 1) Colour investigation: Beryl (Part 1) Reviewed by Unknown on November 13, 2018 Rating: 5

Decorative jewellery makes a comeback

November 13, 2018


Men’s jewellery and its perceptions in society have changed drastically over the years but the quality among Australian suppliers has been consistently high. KEITH NOYAHR reports on the evolving trends for men.

It’s been two decades since male jewellery consumers showed genuine readiness to extend beyond functional watches and neck chains and into decorative items that enhance the wearer’s image by providing a sense of identity and style.

Twenty years ago, the market moved with trepidation to meet the demands of a new fashion-conscious consumer. Today, however, jewellers are capitalising on jewellery for men and are taking every opportunity to expand the market.

According to Maiya Adams, head of global research at UK-based market research firm Adorn Insight, “The focus on appearance is key today. Jewellery is a part of image creation and therefore increasingly used as a means of accessorising and personalising a look.”

The New York Times reported that sales of men’s accessories increased 9 per cent to $US13.6 billion ($AU18.9b) in the 12 months ending May 2014, making the point that the fashion industry is capitalising on men’s accessories.

“As men become increasingly comfortable with adorning themselves, savvy brands seeking to add revenue streams to their portfolios will tap this sector for its growth potential,” Adams says.

Local influence

Industry heavyweights from seven of the country’s top men’s-jewellery suppliers have weighed in on the category’s progression in recent years. Cudworth Enterprises director Darren Roberts says that men’s jewellery has evolved considerably since the millennium.

“The market, which was conservative and masculine, is now daring to try new styles of jewellery,” Roberts says. Cudworth Enterprises is known for its bracelets, chains, rings, tiepins, pendants and cufflinks in base metal, steel, silver and gold.

Duraflex Group Australia (DGA) supplies Thomas Sabo to Australia. Its men’s collection Rebel at Heart launched in 2009, and managing director Phil Edwards says the market for branded jewellery has grown considerably.

“In Australia the demand is steady, but in Asia we are seeing significant growth and expansion for these brands.”

Paterson Fine Jewellery has been supplying men’s jewellery since it acquired Marrickville-based gents-ring jeweller Weiser & Hanak in 1996. The line includes sterling silver and 9-carat traditional gentlemen’s rings and cufflinks, and will soon venture into bracelets.

Managing director David Paterson attributes “European influence”, including social ambassadors, as the driving force behind a “passion for quality men’s jewellery”. He believes the demand is stronger than ever before for affordable jewellery.

Peter W Beck managing director Peter Beck concurs: “We are currently seeing a strong market for men’s jewellery. We have observed that men are now more adventurous with their choice of wedding rings and now often choose titanium, zirconium, two and three-tone products and diamonds.

“In gold, the traditional yellow and white are still on trend for men. We have seen that younger male buyers favour our newer products in titanium, which shows a masculine, grey colour unlike any gold, and zirconium, a dramatic black colour,” Beck says.

The company has also added titanium and zirconium products to its men’s range which it believes have been popular in the current market.

“The younger generation of male jewellery buyers are more discerning in choice of both design and materials,” Beck continues, adding, “We expect the market to remain strong as we have noted its growth and don’t expect this to change.”

Worth & Douglas supplies men’s rings of all kinds, offering platinum, palladium, titanium and zirconium. Director Chris Worth agrees with Beck’s sentiments.

“Men’s jewellery is a big part of fashion and style now,” he says, mentioning that it was only a few years ago that jewellery was reserved for weddings and special occasions. “White metals are still very popular for men and black is being widely sought after.”

As the industry expands, Worth predicts “new concepts, metals and materials will be added to a company’s collection along with additional plating options”.

Jewellery has succeeded in capturing the evolution, according to David Rodrigues from Australian Wholesale Jewellery (AWJ), who says the transition has happened over time with some trends emerging and fading away.

“Traditionally, a man would normally only buy a gold wedding band. These bands changed over time to include more colourful use of two-tone and even three-tone white, yellow and pink gold in different patterns,” Rodrigues says.

RJ Scanlan specialises in men’s rings having pioneered three-tone wedding rings.

“My father Robert introduced fancy, three-tone wedding rings at a time when most jewellery stores had only sold plain yellow gold bands [to men],” says Chris Scanlan, whose company distributes Dora wedding rings.

Since then the men’s wedding ring market has changed regularly; white gold has become popular and alternative metals like titanium and carbon fibre – blended with gold – are very much on trend with guys today, according to Scanlan. He attributes economic factors for the constant presence of non-traditional metals such as titanium and tungsten on social media platforms, creating a demand for lower-priced options in some demographics.

Stainless styles

Cudworth first introduced stainless steel jewellery in Australia in 2002; however, the company has seen many changes in the sector since its establishment back in 1921.

“Stainless steel is hardy, durable material that works well for men. Of late we have been combining steel with Italian leather and with semi-precious stones,” Roberts says.

AWJ has been around for almost quarter of a century and Rodrigues agrees that non-precious metals are in demand for men’s jewellery.

“Stainless steel has led the way in styles with pendants, bracelets and rings using leather or similar materials with the metal,” he says.

The company offers stainless steel, as well as a range of tungsten, titanium and silver wedding jewellery, some with carbon fibre or wood inlays.

“Alternative materials like tungsten and ceramics will make their way into the mainstream jewellers as accepted norms,” Rodrigues predicts, “Especially products that will not discolour or fade, like zirconium and ceramics.”

Stainless steel has long been the perfect price point for men looking to enter the market, but Paterson argues that even this trend is now giving way to fine metals and mixed materials.

“Stainless steel jewellery was a huge growth area in men’s jewellery about 10 years ago but the trend is now coming back to fine metals mixed with natural stones, woods and leathers,” Paterson says, adding that it was about to launch a collection “featuring leather bracelets and natural stones”.

Scanlan is optimistic that there will be a return to precious metals.

“We are in the business of selling precious metals and it’s in everyone’s interests to be selling higher-quality products,” he says. “My hope is that we are all selling more gold three years from now.”

Branded boys

DGA also deals with stainless steel in the Save Brave collection and sterling silver in the Thomas Sabo brand. It’s been almost a decade since the company launched the line in Australia offering a range of bracelets, necklaces, rings and more. Edwards contends that the market for branded jewellery in Australia has experienced significant growth over the years.

“Men’s jewellery such as Thomas Sabo’s Rebel at Heart collection has evolved into a unisex line that caters to both men’s and women’s sizing,” Edwards says.

Roberts is positive and confident about the expansion of the branded jewellery market. As an example of this confidence Cudworth added luxury, London-based men’s jewellery range Tateossian to its portfolio last year, joining well-established Hugo Boss.

“It is a growing market as the demand is there. We just need to keep an eye on trends that suit our market and not be complacent,” Roberts says.

Changing norms

Another reason for the resurgence of men’s jewellery, according to Adams’ study, is “a more open-minded approach to gender identity” with the definition of what is typically masculine or feminine becoming more open to interpretation.

Adams predicts this new disposition by men will be tapped for exponential growth: “If you look at the menswear catwalks for Spring/Summer 2019, there was a plethora of jewellery looks and silhouettes that build on trends that have, until now, been big in women’s jewellery: stacking and layering, multiple ear piercings, statement rings, talismans and trinkets.”

Adams contends that social media stars, celebrities and leading bloggers are also influencing men’s taste in jewellery.

“We’ve noticed the welcome rise of elaborate brooches on male stars on the red carpets at events such as the recent Emmys too,” she says.

Roberts agrees that the role of celebrities and the use of active social media sites by brands with accounts on Facebook, Instagram, Twitter and YouTube is changing men’s attitudes towards jewellery.

“With the biggest brands and celebrities talking to you 24/7 through your mobile phones, we now see it’s more than just watches and cufflinks,” he says. “They [consumers] see what their idols are wearing and multiple necklaces, bracelets, rings are now accepted as the norm.”

Dr Andrea Waling, research Fellow at La Trobe University’s Australian Research Centre in Sex, Health and Society agrees.

“With the shift in gender roles, we are getting away from these ideas of what men and women can and cannot do,” Waling says. “It is becoming more acceptable for men to wear jewellery. Perhaps, for some it is being more daring while, for others, it’s always been an expression of themselves.”

Decorative versus functional

Men have been wearing jewellery for centuries, but Paterson and Waling agree that its purpose has changed over time.

“I think men have always been wearing jewellery. I think jewellery as decorative rather than functional is becoming more mainstream again for men,” Waling says.

Paterson agrees: “I don’t think there was a flashpoint in the demand for men’s jewellery, as that has always been there, but the market has changed from a piece that is worn every day to interchangeable items that match mood or complement an outfit.”

Waling traces the types of jewellery worn by men: “Unlike in the past, where jewellery would be much more opulent and perhaps flowery, men’s jewellery today is very streamlined – hard edges and shapes rather than curved, darker colours, and not a lot of intricate detail nor a lot of gemstones,” she says “This goes in line with how we might visualise an aesthetic for masculinity that is similar.”

Annette Atakliyah from Isaac Jewellery has a different take on men’s jewellery. She says her clientele are mainly from Indian and Arabic backgrounds where decorative jewellery stands out.

“Customers are happy with our designs and we custom-make according to their tastes with input from them,” Atakliyah says.

Isaac Jewellery, which started in the 1980s, specialises in producing “finest-quality gold chains and bracelets made by hand”.

Atakliyah says bracelets were historically the business’ main product but now “there is a bigger demand for chains that could range from 50g to 1kg”.

“Now the demand for bracelets and chains are equal,” she asserts, adding that designs are also available in platinum, sterling silver and palladium.

Paterson feels the market is still growing and says colours are entering the otherwise-monochromatic colourscape.

“Dark red is a popular colour in gents rings at the moment, as is mother of pearl in men’s rings,” he says.

“If we believe in trend cycles then we might expect a return to the heritage-style men’s signet rings, insignia, flat tops, black onyx and traditional styles.”

It’s no longer a secret that men are now more fashion conscious and keen to purchase accessories to boost their image. Retailers looking to bolster sales should investigate this consistently expanding market.

Men’s jewellery: a historical take

The category has a glorious, long and lustrous past. Dr Andrea Waling looks back.

“We can trace the wearing of jewellery by men back numerous centuries and through varying cultures and places. In fact, men were more likely to wear jewellery in the past than they are now,” Waling says.

“Ancient Romans and Greeks, the Celt Reign, Renaissance, Middle-Ages, the Enlightenment, Victorian Era – they all had men wearing different kinds of jewellery.”

The reasons why men wore jewellery depended upon the culture and the era.

“In the Middle Ages, men wore jewellery to demonstrate wealth, power and prestige, as well as allegiances to certain families, which was done by having a crest or signal of the family on the ring,” Waling continues.

“The upper classes were much more likely to wear jewellery to denote their class status. For men, jewellery was used to make a statement about their identity and famous men, such as Sir Walter Raleigh – rumoured to be the lover of Queen Elizabeth I – often wore a pearl earring. For other men like pirates, hoop earrings were worn to provide insurance in case they needed a proper burial. Jewellery has also held religious meanings; ancient Greeks would wear floral laurels on their heads to indicate their status and relationship with their chosen god or gods,” she adds.

Men doing away with decorative jewellery could be traced to the advent of industrialism and the world wars in Western culture, where resources became scarce.

“Jewellery was a luxury many could not afford. After the Second World War, we began to get a very defined notion of gender roles and what is appropriate in terms of masculinity and femininity. Jewellery became something that was seen as excessive and frivolous rather than functional and useful. It was thus designated to be a woman’s item in line with beliefs at the time about the role of women in society,” Waling says.

“Men wearing jewellery in the 1950s was seen to be too theatrical. Things like watches, tiepins and cufflinks are functional; they serve a purpose, rather than being purely decorative. Rings too serve a purpose, demonstrating an allegiance to a group like the Freemasons or designating relationship status,” she adds.

 


Decorative jewellery makes a comeback Decorative jewellery makes a comeback Reviewed by Unknown on November 13, 2018 Rating: 5
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