《Jeweller：2024年澳大利亞珠寶行業狀況報告：行業全景（英文版）（90頁）.pdf》由會員分享，可在線閱讀，更多相關《Jeweller：2024年澳大利亞珠寶行業狀況報告：行業全景（英文版）（90頁）.pdf（90頁珍藏版）》請在三個皮匠報告上搜索。

1、State of the Industry ReportThings you wish you had known about the Australian jewellery industry,things you thought you knew but are wrong,things that you did know about the industry but have changed,and things you could never have known about the industry.A PANORAMIC VIEW OF THE AUSTRALIAN JEWELLE

2、RY INDUSTRYFacts,Figures,Fallacies&the Future2 Everything a NeedsRENOWNED FOR AUSTRALIAS LARGEST RANGE OF PREMIUM NATURAL WHITE&COLOUR DIAMONDS ROUND BRILLIANTS&FANCY CUT P+61 3 9650 2243 E SALESADTC.COM.AUL13/227 COLLINS STREET MELBOURNE VIC 3000ADTC.COM.AUAUSTRALIAS PREMIER DIAMOND SUPPLIERSINCE 1

3、986OVERNIGHT DELIVERYStones and jewellery in stock to arrive at your doorstep overnightINTRODUCING LAB-GROWN DIAMONDS&JEWELLERY Premium cut lab-grown diamonds with no tinge Fancy-cut lab-grown diamonds(single or calibrated)Parcels and melee available with hearts and arrowsLAB-GROWN DIAMONDS READY FO

4、R IMMEDIATE DELIVERY LARGE SELECTION OF NATURAL DIAMOND JEWELLERY 3 Become a stockist today 02 9290 2199SapphireD.au Sapphire Dreams is home to an extensive range of Australian Sapphire Jewellery and Loose Australian Sapphires.When you become a Sapphire Dreams stockist,you will gain access to more t

5、han just our exquisite product range.Every stockist receives ongoing support from our dedicated sales,graphic design,marketing and gemmologist teams to assist in all your needs.5 Become a stockist today 02 9290 2199 PinkK.auFP ADVERTISEMENTCopyright All material appearing in Jeweller is subject to c

6、opyright.Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher.Disclaimer Please note that this study is produced from a consumers perspective.That is,what a member of the public would reasonably consider a jewellery store,which we have defined on page

7、 16.On this basis,the information was accurate at the time of publication,noting that a new store can open tomorrow or one can close.Despite the best efforts of our researchers,store counts and other information provided in this report may occasionally differ from our definitions and/or contain omis

8、sions.We cannot guarantee the accuracy or completeness of this information,given the nature and scale of this project,and we reserve the right to correct errors,inaccuracies,and/or omissions.Additionally,please note that the industry is constantly evolving and/or changing and therefore,the way the i

9、ndustry reports the changes or trends must also evolve.For that reason,the definitions used in this report aim to make better sense of the data presented and nothing more.INDEPENDENT JEWELLERSStill prospering despite a decline27BUYING GROUPSMusical chairs39CHAIN STORESFull steam ahead despite an adv

10、erse economy47FASHION CHAIN STORESRapid rise and dramatic demise52BRAND ONLY STORESFrom an experiment to a powerhouse57BIRTHS,DEATHS,&MARRIAGESGood night and good luck63SHOPPING CENTRESFrontline in the retail war67JAAHow is the industry leader stacking up?73SURVEY EXPLAINERHear what the industry has

11、 to say77CRYSTAL BALL2030:What does the future hold?80PROVENANCEWho really cares about proof of origin?8413 FROM THE PUBLISHERYoull never understand the universe if you only study one planet 15EDITORIALBe interested,be curious,and hear whats not being said 16 AT A GLANCEMapping it out:Understand the

12、 big picture25 SYNOPSISYour questions answered:what will you learn from this studyCONTENTS2024 STATE OF THE INDUSTRY REPORT VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY Published by Befindan Media Pty Ltd|ABN 66 638 077 648 Locked Bag 26,South Melbourne,VIC 3205 AUSTRALIA Subscriptions&Enquiries:Phone

13、:+61 3 9696 7200Publisher Angela Han Editor Samuel Ord Research Assistant Riza Ortiz Production Coordinator Learoy Bangis Advertising Toli Podolak Accounts Paul Blewitt T H E S O U R C E F O R N AT U R A L I M P O R TA N T D I A M O N D S I N W H I T E A N D FA N C Y C O LO U R S.G I A C E R T I F I

14、 E D W H I T E,Y E L LO W&A R G Y L E T E N D E R S TO N E S.+61 2 92 3 5 1 799|S A L E S R R A U S T R A L I A.C O M.A UIMPORTANT,RARE,NATURALFP ADVERTISEMENTC O N TA C T U S(02)9417 0177|.au2024 STATE OF THE INDUSTRY REPORT|13 Youll never understand the universeif you only study one planetMore oft

15、en than not,the questions are complicated,but the answers are simple.Publisher ANGELA HAN reflects on the creation of the State of the Industry Report.FROM THE PUBLISHERS DESKTo lead people,walk behind them.WORDS TO LIVE BYIf you dont know where you came from,then you dont know where you are.If you

16、dont know where you are,then you dont know where youre going.And if you dont know where youre going youre probably lost!Youre holding the 2024 State of the Industry Report(SOIR),the most extensive study of the Australian jewellery industry to date.For a start,it records 3,501 jewellery stores,a sign

17、ificant decrease since the first report in 2010.It also delves into the many reasons for the reduction some insights will put you at ease,while others may ring alarm bells.To the average consumer,our industry may appear straightforward and as simple as any other retail industry;however,insiders unde

18、rstand that its complex and challenging.With that in mind,this issue of Jeweller is a meticulous examination of the many crucial categories within the industry,addressing everything from independent stores,fine and fashion chains,brand-only stores,buying groups,and industry associations.Because of t

19、he many complexities and grey areas,chances are the data is not flawless;a store could open or close the day after we end the data collection.However,after a painstaking six-month process,Im confident its as accurate as anyone could hope to be when assessing a constantly changing and evolving indust

20、ry.The purpose of this report is two-fold its a historical document offering an in-depth look at the state of the industry,and a glimpse of the future.With that said,what did we learn?Check the pulse,stat!Firstly,the objective of the SOIR is to establish how many jewellery stores operate in Australi

21、a and compare and contrast this information with data from the previous report in 2010,as a way to develop an understanding about what the future might hold.Its a measurement of jewellery store counts;however,ultimately,this is a quantitative assessment.While store counts tell us a small part about

22、the health of the industry;its only one component of a much larger picture.After all,if jewellery stores are in decline,surely it would suggest the industry is suffering?Quite the contrary!Its arguable that in measuring a retail categorys health,revenue matters most,not store count.Deeper considerat

23、ion reveals that its even more complex than that.In 2010,Jeweller recorded 4,225 jewellery stores in Australia,while as of November 2023,we recorded 3,501.Thats a decline of around 700 stores in 13 years;however,should this decrease be worrisome for the industry at large?Well,the fact is there were

24、more than 700 closures,and possibly as many as 1,000;however,many new stores opened during the same period.The 700 is net.It should also be noted we have re-defined a jewellery store,as explained on Page 27,which caused a higher reduction.Some of these businesses still operate today but are no longe

25、r defined as jewellery stores.With that said,even if the real reduction is the decrease of around 500 stores-whether because of retirements,lack of profitability,end of leases or even the pandemic-does this indicate an unhealthy industry?What if the remaining 3,500 stores are enjoying improved sales

26、 because of decreased competition?For example,logic dictates that if consumer spending is not in decline,it means there is more money for fewer stores,right?If a greater percentage of the industry achieves improved sales,is it not an argument for a healthy industry?However,any business person will t

27、ell you that an increase in revenue does not mean increased profit.The responsibility for a businesss profitability rests with the owner.Searching for answers?Its a timely reminder that everything is a matter of perspective,including store closures.For the jeweller who closed their business because

28、of the pandemic,it was a time of anguish,frustration and maybe failure.Conversely,for the bench jeweller who lost their job,it could inspire them to start a small business and launch their first jewellery collection;the pandemic forced their long-held aspiration!It has been said that your perspectiv

29、e is your prison or your passport.The choice is yours!And the only way to make sense of change is to embrace it,move with it,and join the dance.This study attempts to explain the changes-or evolution-over the past 13 years.Why and how did the differences and/or trends come about?What is the result?I

30、t is warts and all;it pulls no punches;however,every table,every statistic and every word is designed to allow the reader to draw their conclusions and,perhaps,apply some of the knowledge to their business.It doesnt aim to offer solutions,only pathways towards them.Each reader can interpret the same

31、 data differently;therefore,it is up to you to assess whether the decline in store counts is a positiveor negative for your business,as opposed to the broader industry.Show me the money!With that said,and for those hoping to learn more about the health of the Australian jewellery industry in terms o

32、f revenue theres more to come.For the first time,Jeweller is undertaking a new project-an equally comprehensive and exhaustive study-to answer the all-important money question.The project aims to provide a detailed analysis using a formulaic calculation of the annual retail turnover for the entire i

33、ndustry.This data will be further divided into the average turnover for the categories detailed in this report from the independent jewellery stores to the fine and fashion jewellery chain stores,large and small.The research will also examine and estimate average category breakdowns from gold,silver

34、 and diamond jewellery to watches and repairs.Only then will we be able to begin to assess and record the health of the Australian jewellery industry.The money report should make for a fascinating read,and when paired with this State of the Industry Report,could finally answer the vital question:Is

35、the Australian jewellery industry healthy?Stay tuned!ANGELA HANPUBLISHEREXCLUSIVELY DISTRIBUTED IN AUSTRALIA AND NEW ZEALAND BYAU+61 2 8543 4600 NZ+64 9 480 2211|.au No valid plans for the future can be made by those who have no capacity for living now.Listen to what is not said,for there,the true s

36、tory lies Editor SAMUEL ORD explains some of the behind-the-scenes work that went into this study and discusses expectations and reality.2024 STATE OF THE INDUSTRY REPORT|15 FROM THE EDITORS DESKOn the first day I joined Jeweller,my publisher told me to leave my expectations about the industry at th

37、e door.She said that it was an industry you could spend a lifetime studying and still retire feeling clueless.She was right!In two short years,Ive learned a great deal.At the time,I assumed she was referring to the intricacies of gemmology,the complexities of retail trade,or perhaps the precarious r

38、elationship between media and business.What I realise now having completed the State of the Industry Report is that the advice was also about human nature.Philosopher Alan Watts once described the hypnotic illusion of time.He believes the way we view things-the present moment-is dominated by our obs

39、ession with a causative past.Indeed,even at the best of times,how often do we find ourselves preoccupied with the painful memories of yesterday and apprehensive expectations for tomorrow?Watts says that living life in this manner which most people do leaves you fundamentally out of touch with realit

40、y.The past cannot be changed;however,it can help determine the future.The focus of this State of the Industry Report(SOIR)is on reality,to analyse the present moment;a study of the jewellery industry as it is today.Pleasant surprisesWhat I didnt understand about the friendly advice was that it also

41、related to the expectations of people and organisations.Before joining Jeweller,I worked as a newspaper journalist,covering two specific rounds sport and court.Contrary to popular opinion,athletes are reluctant interviewees at the best of times,while the legal system is even worse the police,magistr

42、ates,lawyers few are eager to stand in front of a microphone.What I never expected was the number of people who pride themselves on their ever-expanding expertise on any given topic whether it be diamonds,gemstones,precious metals,or the intricacies of supply and retail.Their knowledge astounds me,a

43、s does their willingness to assist in my education of the wider industry.Every 15-minute conversation with someone about one story inevitably leads to ideas for half a dozen more whether it be a new approach to a long-debated topic or profound insight into an unexplored area.I mention this because m

44、any of these people have played a vital role in the construction of this comprehensive report,and for their time,Im grateful.With that said most people do not realise that,for a journalist,a story often begins with whats not being said.Bitter disappointment As a reporter,the search for the deeper tr

45、uth begins when you disregard what youre being told and start paying attention to what is being avoided or not being said-as this study uncovers.Returning to the nature of expectations,while I didnt anticipate that so many people would freely offer their time to help me better understand the industr

46、y,Ive also been shocked by those who have rejected the opportunity to contribute to the report.As an example,consider the Jewellers Association of Australia(JAA)an organisation that claims its on a mission to advance and represent the industry from manufacturing,wholesaling and distribution to retai

47、l.The JAA claims to be the peak industry body-the industry leader-and it could be argued that the onus of producing a study such as this should be the responsibility of JAA.At the very least,you would think the association would assist in every way possible.Well,that was my(reasonable)assumption.Aft

48、er all,the project benefits the industry.If only I had listened to my publishers advice about expectations!I contacted the JAA on 1 September about two simple figures:the number of retailer and supplier members.After a week without a reply,the request was resubmitted,which resulted in a response fro

49、m the JAAs operation manager,who said she had been unable to reply due to numerous conflicting priorities in the previous months”.She said she would endeavour to“look at them-the two figures-sometime next week.As I write this in November,three months after the first request,the JAA has been unable t

50、o provide a membership number.Compare this experience with my exchanges with other organisations.For example,James Pascoe Group with 460 stores across three different retail chains provided a comprehensive state-by-state count within 24 hours.Its worth noting that the James Pascoe Group has more sto

51、res than the JAA has members.The same could be said for Nationwide Jewellers Australias largest jewellery buying group which also quickly provided detailed information.In fact,theres no need to single out Nationwide.Showcase Jewellers and Independent Jewellers Collective also returned information po

52、st-haste,as did Pandora,the worlds largest mass-market jewellery brand.Now consider this-the entire purpose of the JAA is to attract members.Its website states:“We endeavour to demonstrate leadership through our respectful and thoughtful communications and actions”.Note that the bold leadership is t

53、he JAAs emphasis,not mine.As you will discover,there are many other examples of the JAAs failures over the past decade,and our industry survey appears to reflect this sentiment,even from its own members!If the so-called peak industry body cannot lead through actions,then one must ask:does it have an

54、y right to claim it represents all sectors of the industry,let alone any part of it?I didnt expect to encounter this degree of unprofessional management and shocking communication while preparing such a valuable report;however,based on the retailer responses to the industry survey,it appears many wo

55、uld.Perhaps theres truth in that adage its better to set your expectations low so that youll be pleasantly surprised rather than constantly disappointed.With that said,why dwell on the negative?Lets instead focus on the present moment the State of the Industry Report youre holding is packed with det

56、ailed and valuable information,and to all those who helped make it possible you have my utmost gratitude.SAMUEL ORDEDITORWORDS TO LIVE BY16 1 JEWELLERY RETAILERAny business where the selling of fine or fashion jewellery and/or watches to consumers is the predominant revenue of the business.INDEPENDE

57、NT JEWELLERA jewellery business that is not part of a chain.More often than not,these businesses operate from a single store.These stores are often family-owned businesses.JEWELLERY STOREA retail premises is a physical place,not including any area intended for use as a residence,and is usually locat

58、ed on the high street or in a shopping centre that,under the terms of the lease,is used wholly or predominantly for the sale of jewellery and watches to consumers.The business must be readily available to visit by the public during business hours(no appointment is necessary)and must carry stock read

59、ily available for purchase when a customer visits;that is,the item does not subsequently need to be made/manufactured.SUPPLIER A business that sells predominantly fine or fashion jewellery and/or watches to jewellery retailers who then sell the product to consumers.RETAILER-NO STOREFRONTA business t

60、hat sells jewellery and/or watches to consumers and does not operate from a jewellery store(see above).These include jewellery designers and manufacturing(bench)jewellers operating from professional workshops or studios(can be home-based)-often in CBD-located buildings-and which can be visited by th

61、e public,including by appointment.Typically,these businesses do not carry stock and often deal in niche markets and custom-made products.For this report,these are not considered“jewellery stores”.SHOWROOMA business that promotes itself as a showroom in CBD locations similar to Retailer-no storefront

62、;however,it does not have an onsite workshop or studio.Usually,a showroom business will not employ manufacturing(bench)jewellers and will have only sales staff.A showroom can also operate virtually-under a serviced office arrangement-without staff or stock.They can often be faces to print the busine

63、ss as being larger than it is,with showrooms in other capital cities.For this report,showrooms are not considered“jewellery stores”.CHAIN STORESA group of five or more fine or fashion jewellery stores trading under a single(brand)name,with one ownership entity either person or company-coordinating b

64、uying and marketing activities across the group.This could include a franchise operation.A chain store usually has central management and standardised business methods and practices.It will purchase products from local suppliers and/or import its products.BRAND-ONLY STOREOne or more fine or fashion

65、jewellery stores that market and sell its own brand of jewellery and/or watches.Usually a vertical-market operation,these stores do not utilise local suppliers and do not distribute to third-party stockists on a large scale.Brand-only stores are often owned and operated by the proprietor of the bran

66、d,or they could be operated under licence.BUYING GROUPA member-based organisation created to leverage the collective purchasing power of independent jewellery retailers to obtain discounts from suppliers and provide support services in areas such as marketing,management,and accounting.Northern Terri

67、torySTATE POPULATION251,700NATIONAL POPULATION%1%INDEPENDENT STORES14FINE CHAIN STORES12FASHION CHAIN STORES2BRAND ONLY STORES1STATE TOTAL29SINCE 2010-10Western AustraliaSTATE POPULATION2,855,600NATIONAL POPULATION%11%INDEPENDENT STORES187FINE CHAIN STORES137FASHION CHAIN STORES25BRAND ONLY STORES22

68、STATE TOTAL371SINCE 2010-61South AustraliaSTATE POPULATION1,844,600NATIONAL POPULATION%7%INDEPENDENT STORES136FINE CHAIN STORES62FASHION CHAIN STORES15BRAND ONLY STORES8STATE TOTAL221SINCE 2010-56Definitions3,501TOTAL NUMBER OF JEWELLERY STORES ACROSS ALL CATEGORIES IN 202316|2024 STATE OF THE INDUS

69、TRY REPORT 17 JEWELLERY RETAILERAny business where the selling of fine or fashion jewellery and/or watches to consumers is the predominant revenue of the business.INDEPENDENT JEWELLERA jewellery business that is not part of a chain.More often than not,these businesses operate from a single store.The

70、se stores are often family-owned businesses.JEWELLERY STOREA retail premises is a physical place,not including any area intended for use as a residence,and is usually located on the high street or in a shopping centre that,under the terms of the lease,is used wholly or predominantly for the sale of

71、jewellery and watches to consumers.The business must be readily available to visit by the public during business hours(no appointment is necessary)and must carry stock readily available for purchase when a customer visits;that is,the item does not subsequently need to be made/manufactured.SUPPLIER A

72、 business that sells predominantly fine or fashion jewellery and/or watches to jewellery retailers who then sell the product to consumers.RETAILER-NO STOREFRONTA business that sells jewellery and/or watches to consumers and does not operate from a jewellery store(see above).These include jewellery d

73、esigners and manufacturing(bench)jewellers operating from professional workshops or studios(can be home-based)-often in CBD-located buildings-and which can be visited by the public,including by appointment.Typically,these businesses do not carry stock and often deal in niche markets and custom-made

74、products.For this report,these are not considered“jewellery stores”.SHOWROOMA business that promotes itself as a showroom in CBD locations similar to Retailer-no storefront;however,it does not have an onsite workshop or studio.Usually,a showroom business will not employ manufacturing(bench)jewellers

75、 and will have only sales staff.A showroom can also operate virtually-under a serviced office arrangement-without staff or stock.They can often be faces to print the business as being larger than it is,with showrooms in other capital cities.For this report,showrooms are not considered“jewellery stor

76、es”.CHAIN STORESA group of five or more fine or fashion jewellery stores trading under a single(brand)name,with one ownership entity either person or company-coordinating buying and marketing activities across the group.This could include a franchise operation.A chain store usually has central manag

77、ement and standardised business methods and practices.It will purchase products from local suppliers and/or import its products.BRAND-ONLY STOREOne or more fine or fashion jewellery stores that market and sell its own brand of jewellery and/or watches.Usually a vertical-market operation,these stores

78、 do not utilise local suppliers and do not distribute to third-party stockists on a large scale.Brand-only stores are often owned and operated by the proprietor of the brand,or they could be operated under licence.BUYING GROUPA member-based organisation created to leverage the collective purchasing

79、power of independent jewellery retailers to obtain discounts from suppliers and provide support services in areas such as marketing,management,and accounting.Northern TerritorySTATE POPULATION251,700NATIONAL POPULATION%1%INDEPENDENT STORES14FINE CHAIN STORES12FASHION CHAIN STORES2BRAND ONLY STORES1S

80、TATE TOTAL29SINCE 2010-10Western AustraliaSTATE POPULATION2,855,600NATIONAL POPULATION%11%INDEPENDENT STORES187FINE CHAIN STORES137FASHION CHAIN STORES25BRAND ONLY STORES22STATE TOTAL371SINCE 2010-61South AustraliaSTATE POPULATION1,844,600NATIONAL POPULATION%7%INDEPENDENT STORES136FINE CHAIN STORES6

81、2FASHION CHAIN STORES15BRAND ONLY STORES8STATE TOTAL221SINCE 2010-56Definitions3,501TOTAL NUMBER OF JEWELLERY STORES ACROSS ALL CATEGORIES IN 202316|2024 STATE OF THE INDUSTRY REPORT2 Australian Capital TerritorySTATE POPULATION464,600NATIONAL POPULATION%2%INDEPENDENT STORES30FINE CHAIN STORES24FASH

82、ION CHAIN STORES6BRAND ONLY STORES3STATE TOTAL63SINCE 2010-9New South WalesSTATE POPULATION8,294,000NATIONAL POPULATION%31%INDEPENDENT STORES754FINE CHAIN STORES297FASHION CHAIN STORES73BRAND ONLY STORES89STATE TOTAL1,213SINCE 2010-204QueenslandSTATE POPULATION5,418,500NATIONAL POPULATION%20%INDEPEN

83、DENT STORES329FINE CHAIN STORES238FASHION CHAIN STORES71BRAND ONLY STORES42STATE TOTAL680SINCE 2010-239TasmaniaSTATE POPULATION572,700NATIONAL POPULATION%2%INDEPENDENT STORES61FINE CHAIN STORES16FASHION CHAIN STORES2BRAND ONLY STORES0STATE TOTAL79SINCE 2010 -6VictoriaSTATE POPULATION6,766,600NATIONA

84、L POPULATION%26%INDEPENDENT STORES499FINE CHAIN STORES201FASHION CHAIN STORES71BRAND ONLY STORES74STATE TOTAL845SINCE 2010-139Australia-WideNATIONAL POPULATION26,468,300INDEPENDENT STORES2,010FINE CHAIN STORES987FASHION CHAIN STORES265BRAND ONLY STORES239NATIONAL TOTAL ALL STORES3,501SINCE 2010-724A

85、T A GLANCE Australian Jewellery Industry LandscapeFLAGSHIP STOREOne or more fine or fashion jewellery stores owned and operated by the brand itself rather than a third party.The flagship store is not part of a vertically integrated business but embodies the typical business model of wide-scale distr

86、ibution to third-party stockists.These stores usually stock the most extensive rangeof its merchandise and are regarded as a landmark store or the face of a brand.For this report,these are now considered“Brand-only stores”.KIOSKA retail outlet usually free-standing-often unwalled-and semi-permanent

87、in structure or might be a cart-style business.These businesses operate exclusively within large retail establishments or shopping malls.ONLINE JEWELLERY RETAILERA business promoting and selling jewellery or watches to consumers via its website and/or third-party platforms such as Facebook,Instagram

88、,Etsy,and other social media channels.For this report,these are not considered“jewellery stores”.2024 STATE OF THE INDUSTRY REPORT|17 18 OUR WEBSITE HAS HAD AN UPDATE100s of amazing designs are now available at the click of a button for overnight delivery!NEW&IMPROVEDLIVE STOCK FEATURENEW&IMPROVEDLI

89、VE STOCK FEATURELab Grown DiamondsA GLIMMERING FUTURE OR HIDDEN ETHICAL DILEMMA?Theres a sweeping wave of change in the global diamond market,and its sparking both interest and scrutiny.Consumers are flocking to lab-grown diamonds,lauded for their non-mined origins and identical physical properties

90、to their mined counterparts.However,a lingering question refuses to fade:What about the energy used to produce them?Introducing Clear NeutralIn an age where every consumer choice carries weight,the jewellery industry faces the essential task of aligning with ethical standards and environmental consc

91、iousness.Enter Clear Neutral.Ultimately,the journey towards ethical perfection is far from over.Clear Neutral and other initiatives like it offer an incredible opportunity for the jewellery industry to embrace responsible practices.While lab-grown diamonds are heralded as a modern alternative,they a

92、lso cast a shadow on environmental sustainability.Cultivating these diamonds in a laboratory is an energy-intensive process.A single carat might consume over 200 kWh of energy,equivalent to a familys entire weekly consumption.Indeed,lab-grown diamonds have merits such as higher accessibility,quality

93、,and yield.But we cant ignore the environmental costs.This complexity reveals a nuanced landscape with its own challenges,with some viewing lab-grown diamonds as an ethical solution and others questioning that very ethics.This has led to more interest in carbon offsetting,which helps reduce the harm

94、 diamond production can do to the environment.This approach helps build trust with buyers,showing them that their jewellery purchases are responsible and not just about looking good.As sustainability gains momentum,companies like Clear Neutral are leading the way.By specialising in making lab-grown

95、diamonds carbon neutral,Clear Neutral offers a precise solution that integrates seamlessly with existing suppliers.Clear Neutral uses extensive research and a proprietary system to accurately assess a diamonds carbon footprint through its growing,cutting,and polishing stages.Considering factors like

96、 stone size,country of origin,and growth type,they offset emissions conservatively,ensuring no negative impact is overlooked.Investments in projects such as renewable energy and waste management underline their commitment to ethical responsibility.“The way we see it,the journey towards a truly ethic

97、al diamond doesnt end in the lab;it continues in the choices we make to mitigate our impact on the planet,”says Denham Hopman from Clear Neutral.“With Clear Neutral,were striving to make this complex process as transparent and accessible as possible The journey towards a truly ethical diamond doesnt

98、 end in the lab.DENHAM HOPMANCLEAR NEUTRALUltimately,the journey towards ethical perfection is far from over.Clear Neutral and other initiatives like it offer an incredible opportunity for the jewellery industry to embrace responsible practices.While lab-grown diamonds are heralded as a modern alter

99、native,they also cast a shadow on environmental sustainability.Cultivating these diamonds in a laboratory is an energy-intensive process.A single carat might consume over 200 kWh of energy,equivalent to a familys entire weekly consumption.Indeed,lab-grown diamonds have merits such as higher accessib

100、ility,quality,and yield.But we cant ignore the environmental costs.This complexity reveals a nuanced landscape with its own challenges,with some viewing lab-grown diamonds as an ethical solution and others questioning that very ethics.This has led to more interest in carbon offsetting,which helps re

101、duce the harm diamond production can do to the environment.This approach helps build trust with buyers,showing them that their jewellery purchases are responsible and not just about looking good.As sustainability gains momentum,companies like Clear Neutral are leading the way.By specialising in maki

102、ng lab-grown diamonds carbon neutral,Clear Neutral offers a precise solution that integrates seamlessly with existing suppliers.Clear Neutral uses extensive research and a proprietary system to accurately assess a diamonds carbon footprint through its growing,cutting,and polishing stages.Considering

103、 factors like stone size,country of origin,and growth type,they offset emissions conservatively,ensuring no negative impact is overlooked.Investments in projects such as renewable energy and waste management underline their commitment to ethical responsibility.“The way we see it,the journey towards

104、a truly ethical diamond doesnt end in the lab;it continues in the choices we make to mitigate our impact on the planet,”says Denham Hopman from Clear Neutral.“With Clear Neutral,were striving to make this complex process as transparent and accessible as possible for both retailers and consumers.”The

105、 consumer market is growing increasingly discerning.Recent studies indicate that a staggering 90%*of global consumers express a preference for responsibly sourced products.Moreover,83%*are willing to dig a little deeper into their pockets for ethically produced merchandise.When it comes to the jewel

106、lery sector,the statistics are equally revealing.An impressive 68%of Millennial and Generation Z consumers say that sustainability concerns could be a deal-breaker in purchasing diamond jewellery,according to a recent Bain&Company survey on the global diamond industry.Embracing sustainable practices

107、 isnt just about saving the planet;its good for business.A 2023 Deloitte report revealed that 72%of employees in retail organisations with leading sustainability programs are committed to their current jobs.Buyers like Jake Goodwin also appreciate an ethically sound supply chain.“Its more than just

108、a gem;its a statement of who I am,”he says.The sentiment echoes among consumers like Ainsley Caulfield,who notes,“I love the idea of wearing a diamond thats not only beautiful but also kinder to our planet.”Jewellers themselves are taking notice of the growing ethical concerns.“More and more people

109、are asking about lab-grown diamonds.They love that theyre more sustainable,but theyre also concerned about the energy used to produce them,”says Jordan Cullen,Managing Director of Cullen Jewellery.“We need to ensure were addressing those concerns head-on.”Ultimately,the journey towards ethical perfe

110、ction is far from over.Clear Neutral and other initiatives like it offer an incredible opportunity for the jewellery industry to embrace responsible practices.The opaquely symbiotic relationship between jewellers,consumers,and the environment will continue to evolve.What seems clear,though,is that t

111、he path towards ethical consumption and responsible retailing is not just a trend.Its a necessary evolution that resonates deeply with the buyers,employees,and society at large.Ultimately,the journey towards ethical perfection is far from over.Clear Neutral and other initiatives like it offer an inc

112、redible opportunity for the jewellery industry to embrace responsible practices.Your customers want this.Your business needs this.With Clear Neutral,the path is clear,and the future is bright.Carbon Offsetting,Simplified for You Using existing identifiers,we measure the carbon footprint of each lab-

113、grown diamond through all phases:growing,cutting,and polishing.We then offset it by investing in environmental projects like renewable energy.This intricate task requires expertise;let us handle the complexities for you.Carbon Credits Verification Clear Neutral only purchases internationally-recogni

114、sed carbon credits.They all meet the following requirements:real,measurable,additional,permanent,and independently verified.Authenticity Reports Our physical reports provide tangible proof of your ethical sourcing.Authenticity is key to building customer trust.Online and In-StoreMarketing Materials

115、Provided We provide professional marketing materials,customised for your store and website,that highlight your commitment to sustainability.CONTACT US TODAY1300 208 897www.clearneutral.orgclearneutralofficialinfoclearneutral.orgTransform Your Jewellery Business with Clear Neutral Today.Its your Path

116、 to Sustainable LuxuryCarbon Neutrality for Modern JewellersPricing to Fit Your Business Starting from just 2%of the diamonds value,carbon neutrality is accessible.Your customers will likely not notice the price difference,but the planet will certainly recognise the difference it makes.Boost Employe

117、e Retention A commitment to ethical sourcing aligns with staff values,enhancing satisfaction and retention.Future-Proof Your BrandAligning with sustainability and ethics ensure that your brand stays relevant,respected,and ahead of the regulatory curve.Join the Movement Millennials and conscious buye

118、rs are demanding more.Dont miss the opportunity to align your business with their values and stand out.Only Offset as You Sell.No Upfront Costs.Your investment in sustainability doesnt have to be burdensome.Clear Neutrals unique model allows you to offset as you sell.No hidden fees,no initial invest

119、ments only pay for what you need,when you need it.Use Your Current SupplierStick with your trusted suppliers.Clear Neutral works alongside your existing supply chain,providing carbon neutrality solutions without the need to switch suppliers.Ultimately,the journey towards ethical perfection is far fr

120、om over.Clear Neutral and other initiatives like it offer an incredible opportunity for the jewellery industry to embrace responsible practices.Your customers want this.Your business needs this.With Clear Neutral,the path is clear,and the future is bright.Carbon Offsetting,Simplified for You Using e

121、xisting identifiers,we measure the carbon footprint of each lab-grown diamond through all phases:growing,cutting,and polishing.We then offset it by investing in environmental projects like renewable energy.This intricate task requires expertise;let us handle the complexities for you.Carbon Credits V

122、erification Clear Neutral only purchases internationally-recognised carbon credits.They all meet the following requirements:real,measurable,additional,permanent,and independently verified.Authenticity Reports Our physical reports provide tangible proof of your ethical sourcing.Authenticity is key to

123、 building customer trust.Online and In-StoreMarketing Materials Provided We provide professional marketing materials,customised for your store and website,that highlight your commitment to sustainability.CONTACT US TODAY1300 208 897www.clearneutral.orgclearneutralofficialinfoclearneutral.orgTransfor

124、m Your Jewellery Business with Clear Neutral Today.Its your Path to Sustainable LuxuryClear Neutral?The objective of the State of the Industry Report(SOIR)is to establish how many jewellery stores operate in Australia and compare this with data from previous reports to develop an understanding of th

125、e evolution and future of the industry.Since the release of the landmark report in 2010,Jeweller has continued to monitor and measure changes in the industry over the past 13 years.This included noting expansion and contraction within specific categories and the rise and decline of industry trends.T

126、he complexities associated with compiling such a report are wide-ranging and varied.To measure something,it must first be defined,and in an industry as diverse as jewellery retail,creating objective criteria is an arduous task.Every business documented by this report sells jewellery and/or watches,i

127、ncluding fine jewellery and fashion jewellery stores;however,unsurprisingly,many differ in minor but significant ways.To develop and collate the data in a consistent manner,creating definitions for different categories must be clear to guarantee that meaningful comparisons and insights can be measur

128、ed.Since the 2010 report,the consumer market and,therefore,the industry have evolved dramatically,including how people view and define jewellery products.There are a few crucial ways this report differs from those in the past,which are important to understand.Flagship stores are no longer an importa

129、nt consideration in the State of the Industry Report.During the research phase,it became clear that the criteria associated with a particular stores flagship status are too unclear to be measured.Any store can be labelled the flagship of the business;however,the nature of these stores differs greatl

130、y from business to business and brand to brand.Indeed,many have remained true to the original definition the largest store with the strongest marketing presence and the widest range of products.Others appear to be described as flagship stores based on location alone and do not differ significantly f

131、rom other stores.While the 2010 report attempted to identify retail kiosks separately-mainly because of the large number of franchised watch battery and repair businesses in shopping centres.Most of those no longer exist,and we now include kiosks as retail stores,or at least in the store counts.An i

132、mportant note impacting any comparison between 2010 and 2023 data is the reclassification of Pandora from a brand-only store in 2010 to a jewellery chain.The distinction is vital because Pandora was,and remains,both a supplier to the wider jewellery market and a prominent retailer of its own brand.B

133、rand-only stores are largely vertical market operations.See definitions on Page 16-17.SynopsisWhat will you learn from this report?To better understand the findings of the State of the Industry Report,its important to be aware of the changes to the industry and how they affect the methodology.KEY FI

134、NDINGS:AT A GLANCE3,501Number of jewellery stores in Australia as of 2023.This figure includes independent,chain,and brand-only stores.While theres been a significant decline in independent jewellery stores overall,this can be explained and is not a cause for alarm.Brand-only stores have expanded si

135、gnificantly over the past decade,evolving from a retail experiment to an influential figure with jewellery industry.28%of Australias total jewellery store count are fine jewellery chain stores.MethodologyThe current study was undertaken by dedicated researchers updating the 2010 data by gathering th

136、e records of all jewellery retail businesses in Australia(defined below)using various methods,including online search platforms.These records were then compared against existing databases to identify closed and new businesses,those not previously held in the databases.Each business was identified un

137、der the categories listed over page.Then,the number of jewellery stores of each business was counted-noting that one jewellery retailer can have many jewellery stores.The data collection ended on 31 October 2023.In addition,and to complement the research undertaken for this report,Jeweller also cond

138、ucted a survey of retailers and suppliers.Two sets of 10 questions were provided using Survey Monkey,a digital research platform and emailed using Jewellers comprehensive database.The retailer survey began on 31 October 2023 and ended on 17 November,with more than 200 independent retailers respondin

139、g.This is estimated to be around 10 per cent of the market.The supplier survey was opened on 9 November and closed on 17 November,and 51 responses were received,estimated to be between 8-10 per cent of the supplier market.All the results are published on Page 77.TABLE 4:ALL CATEGORIES:2023 TOTAL STO

140、RE COUNTSnapshot 2023NSWVICQLDWASATASACTNTTOTAL%2010VarianceAll Independents stores7544993291871366130142,01057.4%2,699-689Chain stores-Fine jewellery2972012381376216241298728.2%1,019-32Chain stores-Fashion jewellery73717125152622657.6%378-113Brand Only stores897442228-312396.8%129110Total stores 20

141、23*1,2138456803712217963293,501100%4,225-724Total stores 20101,4179849194322778572394,225-Variance-204-139-239-61-56-6-9-10-724*2023 combined Brand only and Flagship2024 STATE OF THE INDUSTRY REPORT|25 26 CENTRESTONE BENEFITSWORLDWIDE COVER ANYWHERE,ANYTIMEYOUR CLIENTS CLAIMSCOME BACK TO YOUAGREED V

142、ALUE AND LIKE-FOR-LIKE REPLACEMENTNO EXCESS ON ALL CLAIMSUP TO 150%COVER OF THE INSURED AMOUNTINSTANT COVER,NO WAITING PERIODSCOVER FOR ACCIDENTAL DAMAGE,LOSS&THEFTANNUAL REVALUATIONS TOMATCH REPLACEMENT COSTYour Success.Our Mission.Offer the best product&service,and implement seamless solutions for

143、 jewellery insurance.Our Solutions.Implementing frictionless deploymentof jewellery insurance with technology led innovation and solutions.Fast,efficient and easy to use.Build your customer loyalty and additional revenue.THE JEWELLERY INSURA NCE SP EC I A LISTPartner with us today4 DAYS FREE COVERCA

144、LL NOW1300 356 680JOIN AS A PARTNER JEWELLERCOMMISSIONPAID FOR EVERY POLICY.ALL CLAIMS COME BACK TO YOUCentrestone Jewellery InsuranceLvl 28,88 Phillip Street,Sydney 2000 NSWI.au 27 When Jeweller first conducted the State of Industry Report(SOIR)in 2010,Australia had 2,699 independent jewellery stor

145、es,consisting of retailers that sold fine and/or fashion jewellery.There were a further 1,355 jewellery chain stores and a small number(153)of brand-only stores,meaning that around 4,225 stores were catering to a population of 19.72 million.At the time,if you were to ask someone whether the number o

146、f independent jewellers would increase or decrease in the decade ahead,its fair to say that most people would have considered a decline more likely than not.There were,and are,many reasons why such a prediction would have been reasonable,despite the fact the jewellery industry has-and continues to-s

147、ail against the winds of change that impact most other retail categories.You only need to consider sports,chemist,and hardware stores-to name a few-where national chains and big box retailers have overrun independent and(mostly)family-run retail businesses.It could be worse;consider operating in a c

148、ategory that no longer exists(video stores)or has almost disappeared(newsagents and music stores).Given this background,it is fair to assume that a decline in the number of jewellery stores was likely-if not guaranteed-but the question is:to what extent would that store count decline?There are many

149、perfectly logical-and predictable-reasons for a slight decline,given that most jewellery stores were owned by an ageing population(primarily men)approaching retirement.And gone are the days where it was a given that the children would take over the business;therefore,a percentage of store closures w

150、as predicted as natural attrition.This is the known knowns,to use the term by the US Secretary of Defense,Donald Rumsfeld.Further,as Jewellers recent survey of more than 200 jewellers demonstrates,retirement is still a significant issue.The accompanying chart indicates that 45 per cent of respondent

151、s intend to retire or sell their business in the next five years.But as you will see,some issues would also create decline,which perhaps were not as apparent 13 years ago-but now are!They were the known unknowns.And,of course,the elephant in the room must not be ignored the unknown unknown!Not for a

152、 second would anyone in 2010 have thought the world would experience a global pandemic that would create international turmoil and almost overnight destroy business activity worldwide.So,given these factors,what would have been considered a reasonable-and natural-decline in the number of jewellery r

153、etailers since 2010,and how would that figure be reassessed given the unexpected impact of the COVID-19 pandemic?This report cannot answer the second question;however,its reasonable to assume that a natural reduction in jewellery stores would have been about,or a little above,10 per cent.Back to the

154、 futureBefore examining the results of Jewellers new study of the Australian jewellery industry,lets look at some of the observations made in 2010 to assess their accuracy.For a start,it was observed that the Australian jewellery industry had demonstrated a surprising resilience in the face of the 2

155、008-2009 global financial crisis(GFC).While many other countries suffered an economic recession,Australias economy avoided a recession.However,the economy was impacted by high inflation-which led to repeated hikes in interest rates-consumer confidence was adversely affected,and discretionary spendin

156、g took a knock.Does that sound a little familiar today?The 2010 report stated that,surprisingly,the countrys total number of jewellery stores had remained at the 2007 pre-GFC level.It was noted that compared with other retail sectors,such as entertainment and clothing(which compete with jewellery fo

157、r the consumers discretionary dollar),the Australian jewellery industry has been successful at insulating itself from the increasing presence of chain stores.Independent Jewellers:Still prospering despite a declineIts been said that one mans misery is another mans fortune.This philosophy may serve t

158、he jewellery industry well in the wake of a significant decline in independent retailers.KEY FINDINGS:AT A GLANCE2,010Number of independent jewellery stores in Australia,a decline of 26 per cent since 2010.While the overall decline in independent jewellery stores since 2010 might be startling,its no

159、t a cause for panic.Retirements have led to a significant decline in jewellery stores in the past decade,and this trend is expected to continue.754Number of independent jewellery stores in New South Wales-the most of any Australian state.TABLE 1:INDEPENDENT JEWELLERY STORES IN AUSTRALIA 2023Independ

160、ent StoresNSWVICQLDWASATASACTNTTOTAL2010VarianceAll fine and fashion 7544993291871366130142,0102,699-689Percentage37.51%24.83%16.37%9.30%6.77%3.03%1.49%0.70%100.00%-25.53%Chart shows a state-by-state store counts for independent jewellery stores in Australia,with the total figure contrasted with 201

161、0.27 28 This can be compared to US data showing that the GFC devastated the US jewellery industry.A census by the Jewelers Board of Trade(JBT)-a not-for-profit,member-owned association-found that“the number of jewellery doors which closed in 2008 is estimated to be around 1,500,though some believe i

162、t was closer to 2,000.”The 2010 SOIR stressed retirement was another common reason for independent jewellery store closures.Small,family businesses have always dominated jewellery retailing,and the post-war baby boomers had caused a spiral in store closures.Jeweller reported 13 years ago that if no

163、family member is willing to take over,the only other option is to close the business.Succession planning is notoriously difficult for retailers.In addition,its challenging to sell a jewellery business as it is capital intensive meaning a significant investment in stock and fit-out-and requires a hig

164、her degree of expertise than many other retail categories.Jewellery knowledge is the most basic requirement-and gemmology,jewellery designing,and manufacturing skills are desirable.Selling the business is always an option,but it is not easily sold if profitability is marginal.And again,this is a tre

165、nd in the Western world,supported by US data.The JBT data dates to 1987,and in 2009,it was reported that every year except three years in the early 1990s the number of US retail jewellery businesses had declined.Our 2010 study also noted,anecdotally at least,that recessions and difficult trading con

166、ditions tend to separate the wheat from the chaff.Unsuccessful small businesses will often use the excuse of a recession to save face when they announce closure rather than taking responsibility for their business failings.That is,its easy to make money in good times,and if you own a business that i

167、s only marginally profitable when difficult trading conditions arrive-as they indeed will-a borderline business will not survive.Hold your horsesHaving established several reasons why independent jewellery stores would naturally decline in number,the 2024 study finds that there are around 2,000 stor

168、es today.This is a loss of around 700,or 25 per cent,since 2010.Now,before anyone cries wolf,hold your horses!This reduction needs further clarification because some of it can be attributed to Jewellers change in the definition or classification of a jewellery store caused by enormous structural shi

169、fts in the industry over the past decade.The 2010 study was an attempt to measure the number of stores that sell jewellery to consumers,and in doing so,there was a need to define different business archetypes.These included fine and fashion jewellery,chain stores,and stores classified as brand-only

170、and/or flagship locations.To measure anything,it must first be defined.In 2010,the definition of a jewellery retailer included businesses that were not traditional stores.For example,our data included jewellers and designers who operated from what we defined as upstairs premises or studios and works

171、hops.Many,if not most,of these businesses legitimately deal with the public as customers and specialise in niche categories such as engagement,bridal jewellery,and bespoke design.Most operated from CBD locations in capital cities and were(and still are)located in the jewellery buildings such as the

172、Century and Manchester buildings in Melbourne and the Dymocks and Trust buildings in Sydney,to name just a few.Other capital cities have similar buildings,harking back to a period when jewellers and suppliers congregated in one location for convenience and security.A jeweller could source and purcha

173、se materials,such as diamonds and gemstones,by visiting a supplier on another floor without the need to leave the building.These businesses were identified as Retailer-No storefront and included in the store counts.Changing timesWhile it was deemed appropriate to include these businesses in the 2010

174、 store counts,Jeweller has decided to exclude them in the latest study due to changes in the industry,some of which are COVID-related.For example,consider the distinction between a storefront retailer on the high street and one that operated without a storefront was a little blurred in 2010.In that

175、case,you must consider what the internet has done to that blurred line 13 years later.There are other reasons for redefining a jewellery store-explained below-and to maintain a more accurate reading on the industry,it is more appropriate to measure traditional retail stores,which Jeweller now CHART

176、2:2023 INDEPENDENTS BY STATEState#%NSW75437.51%VIC49924.83%QLD32916.37%WA1879.30%SA1366.77%TAS613.03%ACT301.49%NT140.70%TOTAL2,010100%Chart compares independent jewellery stores state-by-state and the percentage these stores represent within Australias total count.-29.89%REDUCTION IN FASHION JEWELLE

177、RY CHAIN STORES SINCE 2010Only 33 per cent of independent jewellery retailers report that their business is profitable today than it was before the pandemic.Custom made and bespoke jewellery has become an increasingly important category for Australias independent jewellery retailers in the past deca

178、de.29 30 FP ADVERTISEMENTCount on ChemgoldExperience unmatched service and reliability.METALS|CASTING|CAD/CAM|REFINING|FINDINGS1300 984 |Follow us 31 define in accordance with government descriptions and legislation,such as Retail Lease Acts.A retail premises is,therefore,a place,not including any a

179、rea intended for use as a residence,that under the terms of the lease is used,or is to be used,wholly or predominantly for the sale or hire of goods by retail or the retail provision of services.Given that the nature of retail business has dramatically changed over the past decade-and some of the ch

180、ange was brought on by COVID-for the sake of an industry study,a jewellery retailer is now defined as a retail premise used wholly or predominantly for the sale of jewellery(fine and/or fashion)and watches to consumers.The business must be readily available to visit by the public during business hou

181、rs(no appointment is necessary)and must carry stock readily available for purchase when a customer visits;that is,the item does not subsequently need to be made/manufactured.In other words,a jewellery store is located on a high street or in a shopping centre/mall(small and large)where consumers shop

182、 for something off-the-shelf.This could include shopping for bespoke and custom-made jewellery items.With that said,online retailers,jewellery studios and workshops,by appointment designers and jewellers are no longer considered jewellery stores.Further,a new post-COVID retail trend-unstaffed or vir

183、tual showrooms-are also excluded.While there will always be shades of grey in any group of definitions,it is important to redefine the trades participants in line with the industrys evolution.For this reason,some of the decline can be attributed to this reclassification and is not a reflection of st

184、ore closure.Jeweller estimates that within the 689-store reduction since 2010,this reclassification accounts for between 100 and 150 businesses.This study has discovered that the way many jewellers survived the COVID pandemic was to change their business model,which included scaling back their busin

185、ess.In some cases,the business arguably could not be considered a store.Show me the money!One of the more surprising results of the retailer survey was the number of businesses that are now more profitable following the global pandemic.When asked if their business is more profitable after COVID,33 p

186、er cent of jewellers strongly agreed or agreed.Interestingly,the number of jewellers who strongly disagreed or disagreed only amounted to 38 per cent.This somewhat counterintuitive result can be attributed to storeowners taking actions to change the management and procedures of the business to incre

187、ase profitability or,in many cases,survive,Some of this can also be attributed to consumer demand for custom-designed and manufactured jewellery,which has resulted in many changes to the industry.For example,its generally considered that few jewellery stores carry as many diamonds or diamond jewelle

188、ry in stock as they once did and needed to,compared to a decade ago.Also,many customers will look at a ring in stock and request a change.This means a significant focus must be stock management ensuring that sales are not lost,and excess/old stock is minimised.It is also arguable that increased prof

189、itability could be explained by decreased competition.For example,if a jeweller had a nearby-and less successful-competitor before COVID,such a rival would most likely compete on price.Negative economic tides,such as recession and unanticipated pandemics,will quickly knock out any marginal businesse

190、s,which means the remaining stores service a larger consumer base and market share.Indeed,recessions can be an every cloud has a silver lining phenomenon for some,where there is more business for fewer stores when the economy recovers.And given that the reduction in store counts can be attributed to

191、 at least two reasons-natural declines such as lease expiration and retirement and forced decline from COVID and other adverse economic conditions-if consumer spending remains constant,more revenue will be divided among fewer stores.The unknown unknownUndoubtedly,many jewellery store closures since

192、2020 were because of COVID.No different to all small For this reason,some of the decline can be attributed to this reclassification and is not a reflection of store closure.Table 4 takes the 2023 store counts and shows it as a percentage of the overall total,for example,NSW has 37.51 per cent of the

193、 national store count.The population of NSW is 31.34 per cent of Australias total population which means its store count has a six per cent variance to the population.Table 3 compares independent jewellery store counts from 2010 to 2023.Overall,stores have declined by 26.16 per cent;however,this is

194、easily explained.See Page 31.Table 5 presents the same data as Table 4 except that its 2010 data,which means the 2023 store count and population percentages can be compared to the the data from 13 years ago.TABLE 3:2023-2010 COMPARISONComparisonNSWVICQLDWASATASACTNTTOTAL2010 Independents933634577242

195、1816541262,6992023 Independents7544993291871366130142,010Variance-179-135-248-55-45-4-11-12-689%Decline-19.19%-21.29%-42.98%-22.73%-24.86%-6.15%-26.83%-46.15%-25.53%TABLE 4:2023 POPULATION COMPARISONComparisonNSWVICQLDWASATASACTNTTOTALAll stores-fine and fashion7544993291871366130142,010Percentage o

196、f national37.51%24.83%16.37%9.30%6.77%3.03%1.49%0.70%100.00%Population(March 2023)8,294,0006,766,6005,418,5002,855,6001,844,600572,700464,600251,70026,468,300Percentage of national31.34%25.56%20.47%10.79%6.97%2.16%1.76%0.95%100.00%Variance6.18%-0.74%-4.10%-1.49%-0.20%0.87%-0.26%-0.25%-TABLE 5:2010 P

197、OPULATION COMPARISONComparisonNSWVICQLDWASATASACTNTTOTALAll stores-fine and fashion9336345772421816541262,699Percentage of national34.57%23.49%21.38%8.97%6.71%2.41%1.52%0.96%100.00%Population(March 2010)7,221,0005,529,4004,498,9002,286,1001,640,700507,100357,700228,50022,269,400Percentage of nationa

198、l32.43%24.83%20.20%10.27%7.37%2.28%1.61%1.03%100.00%Variance2.14%-1.34%1.18%-1.30%-0.66%0.13%-0.09%-0.06%-*Census March 2023.32 0 3 9663 2321INFOATHAN.COM.AUWWW.ATHAN.COM.AU 602/220 COLLINS ST,MELBOURNE VIC 3000 SPECIALISING IN ITALIAN-MADETENNIS MOUNTS,GOLD CHAINS ANDFINE JEWELLERY SINCE 1998.33 bu

199、sinesses-especially retailers-jewellers could not survive the turmoil created by the pandemic.They shuttered their stores,never to return.Arguably,this was done in many categories by retailers whose business profitability was marginal.There is also anecdotal evidence to suggest that many high street

200、 stores-including jewellers-took advantage of COVID to exit a lease that they would otherwise not have been able to do.With government legislation enacted to protect retailers from landlords during the pandemic for example,The National Cabinet Mandatory Code of Conduct SME Commercial Leasing Princip

201、les-it was unlikely that any landlord would take legal action for breaking a lease during COVID.Put another way,a marginally profitable retailer with two to three years on a lease saw COVID as a legitimate excuse-to close the business without possible legal ramifications.Most retail leases are three

202、 to five years,so any signed in 2018 or later would have been due for renewal in 2023-2024.Many businesses struggled to survive throughout COVID;some were stressed before the pandemic and therefore closed before the lease expired.This was different for retailers in shopping centres,where the landlor

203、ds were seen to be more ruthless.A figure that stands out is the number of lost jewellery stores in Queensland-248.It is reasonable to assume that a large number of these were stores catering for the tourist market,especially along the coastline.This market completely collapsed during COVID;they wer

204、e business that almost exclusively relied on incoming tourists.Therefore,while we cannot provide an exact figure on the number of jewellery businesses closed during COVID,there is sufficient evidence to show that many jewellers moved online to become no storefront businesses.Jeweller can track a bus

205、iness that previously operated as a store and now operates online or as a no-storefront business.This became a trend because of,and enhanced by,COVID.While they can be seen as legitimate businesses selling jewellery to consumers,the business model differs significantly from before the pandemic.Other

206、 changes There have been many other changes since 2010 that are worth acknowledging.Fitting into the known knowns category is the changing nature of retailing as influenced by Australias evolving demographics.The previous report recognised that“coupled with an increasing need to cater to the consume

207、r tastes of growing immigrant communities,new,ethnic-targeted stores have replaced old stores that have closed.”This trend continues today,and one only needs to consider suburbs in major capital cities to see the increase in jewellery stores catering to Asian,mainly Chinese,communities as well as In

208、dian and Middle Eastern communities.Today,we can add African jewellery stores to that list.Another self-evident change has been the massive increase in online jewellery businesses.Jewellers research can identify various online operations that have different foundations.People launching online jewell

209、ery businesses would have been a known known;however,traditional jewellers closing their physical store to move online during and post-COVID would have been unknown unknown.The research also identified many online businesses launched during COVID for various reasons,including some who admit that it

210、was done because of the loss of employment and/or boredom.These fit within the hobbyist category,attempting to turn a personal interest into a business-perhaps a known unknown.Consider factors such as the global pandemic and improved and less cost-intensive technology including website development,e

211、-commerce platforms,and teleconferences.This environment has enabled many sole trader-type operations where a manufacturing jeweller works from a studio/workshop or a home-based office to produce custom-made jewellery.This trend relates to,and is also influenced by,other trends identified in this re

212、search.For example,the retailer survey confirmed the resurgence of bespoke and custom-made jewellery,as consumers-mainly women-search for a more personalised approach to their adornment.A whopping 77 per cent of responses to the retail survey said they strongly agreed(37.56 per cent)or agreed(39.5 p

213、er cent)that custom-made jewellery has become an important part of their business in the past decade.The bespoke trend and income from watch and jewellery repairs have had a larger flow-on effect.Shopping centre locations have become of decreasing importance for those who can offer traditional manuf

214、acturing or bench jewellery services.As independent jewellery stores have exited shopping centres-primarily driven out by increasing tenancy costs-and as consumers seek something different and more personal,there is less need for stores to be located in the larger shopping centres because the custom

215、er is happy to work with destination jewellers when seeking jewellery of a more personal,and everlasting,design.The jewellery chains primarily cater to the mass market.This delineation caused by consumers renewed desire CHART 6:2023 NATIONAL STORE COUNT-ALL CATEGORIESCategory#%All Independents store

216、s2,01057.41%Chain stores-Fine jewellery98728.19%Chain stores-Fashion jewellery2657.57%Brand Only stores2396.83%TOTAL3,501100%Chart shows Australias total fine and fashion jewellery store count divided into four key categories.In 2010,independent jewellers represented 64 per cent of the market compar

217、ed to 57 per cent today.This was different for retailers in shopping centres,where the landlords were seen to be more ruthless.Survey data suggests that the changing of the guard within the jewellery industry will continue for the remainder of the decade due to retirements.34 1/2 PG VADVERTISEMENTA

218、new term has gained prominence in the industry:showroom.It is increasingly used by what Jeweller previously defined as retailer-no storefront.These showroom operations are where customers must make an appointment to visit the business.A showroom has traditionally been used to describe a transaction

219、where a customer views products and orders the items to be delivered or collected at another time.It is also typically used in business-to-business transactions rather than consumer retailing.That is,a showroom does not normally entail a business carrying stock that a consumer purchases off the shel

220、f.Since 2010,Jeweller has witnessed a shift towards this model used by various jewellery businesses,which probably gained momentum because of COVID.However,this causes a problem for an industry study.These showrooms aim to grab a slice of the rapidly increasing demand for custom-made designs without

221、 enduring the costs associated with a retail lease,the expense of displaying jewellery,or the need to hire staff.This showroom concept also added to the reasons for reclassifying the definition of a jewellery store.It should be noted that showrooms generally do not carry stock readily available to b

222、e purchased by the public and are not the sole reason for the reclassification.There is another,more important reason behind the decision.The research uncovered a new trend by some of these showroom stores to advertise and promote the business in a misleading or deceptive manner.In the past few year

223、s,Jeweller has observed many examples of a new business being established-or moving to-a no-storefront operation and promoting itself as having showrooms in all,or many other,Australian capital cities.The problem is that in many cases,these showrooms dont exist;they are either virtual offices with n

224、o staff,operating from a serviced office arrangement,or,in some cases,images of a physical showroom that appear on the companys website and,again,have no staff.For example,a jeweller specialising in engagement rings will promote itself as being based in Sydney or Melbourne and claim to have showroom

225、s in other capital cities,such as Adelaide.The business often lists the phone number of its head office or may have a local phone number,which is redirected,unbeknownst to the customer,who thinks they are dealing with Adelaide staff.These businesses will offer a virtual appointment with their highly

226、 specialised jewellers in the head office.In other words,the interstate showroom is nothing but a facade.The trend is more evident post-COVID because technology has dramatically improved in the past few years,and consumers have become accustomed to not visiting stores.Indeed,many are more willing to

227、 go shopping via Zoom meetings.These two trends were not evident in 2010,so the notion that small jewellers could have a store in every capital city was unheard of.And it would have been unprofitable!Indeed,the advent of unstaffed satellite jewellery showrooms was hastened by COVID.With CBD rents cr

228、ashing during COVID and some have suggested they will not recover to pre-COVID levels-the cost of establishing the appearance of a jewellery showroom in other capital cities has become less expensive.This facade is ideal for jewellery as it is a high-margin product,at least when compared to other re

229、tail categories.That is,the additional monthly cost for renting a small interstate office,either as a physical location or a serviced office-and in some cases deceptively presented on a website-could be far outweighed by selling one diamond ring.This causes a dilemma for such a study as this State o

230、f the Industry Report,which attempts to measure the number of jewellery stores in Australia.Yes,a consumer might contact a jewellery business operating from a showroom in Adelaide;however,the sale occurs at a no storefront office in Sydney.Should the Adelaide showroom be considered a jewellery store

231、?We think not.Worse,as mentioned,in some cases,the showroom doesnt even exist;it can be a phone call being redirected from a serviced office to another city location.Satellite showroom showoff s 35 36 Est.1990Organised by Register RegisterN Now ow!MARCH 2425,2024Gold Coast Convention&Exhibition C.au

232、PROFIT OR PLAY.?DO BOTH!SUPPORTED BY 37 HOLD YOUR HORSES25.53%FEWER INDEPENDENT JEWELLERY SINCE 2010.See breakout box below.for custom-made pieces seems to have also generated another significant change to the traditional ways jewellery is sold.Worthy of additional research is the trend for younger

233、designers and bench jewellers to go it alone by establishing a small-scale business primarily based online.They cannot or should not be considered online retailers,given that that term would suggest stock levels and consumers ordering jewellery off-the-shelf,albeit from a warehouse-style shelf rathe

234、r than an in-store showcase.It should come as no surprise-and would be a known known-that younger and more tech-savvy people are starting their own business which is promoted in the digital world via various social media platforms.Again,jewellery can be unique because the sparkle and luxury of the i

235、tems are ideal for website,Instagram,Twitter/X and Facebook marketing.Indeed,short videos of pieces being handmade are ideal for TikTok and YouTube.This is not a new trend;its a return to the original business model where artisans handcrafted jewellery in small workshops.The speed at which this has

236、happened has most likely been enhanced due to the global pandemic,which caused job losses internationally.Finally,and as has been previously detailed,since the pandemic,two trends have developed at speed.The first is an increase in businesses operating from so-called showrooms;however,in some cases,

237、these showrooms are effectively non-existent.See the Satellite showroom show-offs story on Page 27.The second trend is also worthy of close consideration.Jewellers research has uncovered many overseas-owned online retailers doing their utmost to disguise themselves as Australian-based or owned.Putti

238、ng aside well-known international online jewellery retailers,its fair to say that consumers would prefer to buy from a business in their home country that would be obligated to local laws.The research has discovered that many websites that appear local-using a.au address-have no connection to Austra

239、lia.Like the showroom issue,these disguised online retailers warrant further investigation.Known knowings and the futureThe first and only in-depth study of the Australian jewellery industry in 2010 accurately predicted many trade changes in the past decade.Other changes caused by the unexpected tur

240、moil created by the global pandemic could not be forecast by their very nature.The most obvious is an increased reduction in independent jewellery stores over and above any natural decline.Like all change,the result can be seen as beneficial or detrimental.For example,one persons perception-or miser

241、y-is based on their outcome,say,upon losing their job due to the pandemic.Having found themselves unemployed,a young jeweller who took a gamble by establishing their own business-and who goes on to be very successful-will have one view while the store owner approaching retirement who had to close th

242、eir business as a result of the pandemic-rather than selling it-will have a different perspective.As always,and just like jewellery,beauty is in the eye of the beholder.2,010TOTAL NUMBER OF INDEPENDENT JEWELLERY STORES IN AUSTRALIA57.56%OF RETAIL JEWELLERS IN AUSTRALIA ARE INDEPENDENT JEWELLERS24.83

243、%OF INDEPENDENT JEWELLERY STORES ARE IN VICTORIA48%OF JEWELLERY BUSINESSES ARE INDEPENDENT JEWELLERS IN ACT-4INDEPENDENT JEWELLERS IN TASMANIA SINCE 201022.73%FEWER INDEPENDENT JEWELLERY STORES IN WESTERN AUSTRALIA26INDEPENDENT JEWELLERY STORES IN NORTHERN TERRITORY329INDEPENDENT JEWELLERY STORES AR

244、E IN QUEENSLAND6.77%OF ALL INDEPENDENT JEWELLERY STORES ARE IN SOUTH AUSTRALIA62%OF JEWELLERY STORES IN NSW ARE INDEPENDENT JEWELLERSIMPORTANT CLARIFICATIONHold your horses!While a decline of around 700 independent jewellery stores in the past 13 years might sound alarming,its a figure that is easil

245、y explained.Firstly,as this article has noted,the definition of a jewellery store has been changed since 2010,therefore many businesses have been reclassified and that has led to a reduction of approximately 150-200 stores.The more realistic decrease is a net reduction of around 500 stores.With fact

246、ors such as retirements and the impact of the pandemic on marginally profitable businesses,this was to be expected.Furthermore,it is important to note Jeweller has tracked around 1,000 store closures in the past 13 years.This means that while many stores have closed since the 2010 report,new stores

247、have opened-suggesting that the jewellery industry is still an environment where new businesses are able to launch.This differs from other comparable industries(video,sports,music,and hardware stores)where declining store count is not countered by new openings.It is interesting to note that many new

248、 jewellery stores are based on ethnic grounds,that is catering to immigrant markets such as Chinese,Indian and African.INDEPENDENT STORES SURVIVE AND THRIVEThere was once a time when independent jewellers believed that cheap Asian imports were destroying the market.Then there was a time that jewelle

249、rs believed chains stores were taking over the industry.This prompted Jeweller to investigate the claim-and which initiated the beginnings of the State of the Industry Report.The two claims were proven wrong and,today,while the percentage of independent stores has fallen from 64 per cent in 2010 to

250、57.4 per cent in 2023,part of this decline can be explained by the redefinition of a jewellery store.38 For more than three decades,Australias independent jewellery retailers could choose membership in one of three buying groups:Nationwide,Showcase,and Leading Edge Jewellers.Traditionally,a retail b

251、uying group is a member-based organisation created to leverage the collective purchasing power of independent stores to obtain discounts from suppliers.These groups also provide business advice and support services in areas such as marketing,management,and accounting.In 2010,the three jewellery buyi

252、ng groups combined to represent 860 stores,accounting for 32 per cent of the independent market(2,699 stores).However,everything changed in early 2020 when the Independent Jewellers Collective(IJC)was established by Joshua Zarb a former managing director of Leading Edge Group Jewellers(LEGJ).Indepen

253、dent retailers now had a fourth avenue to pursue supplier discounts and business consultancy,and the market seemingly responded positively as IJC expanded quickly.At the time,there was concern and industry speculation about the viability and need for a fourth group.This was driven by the widespread

254、belief that the market was adequately covered by three groups serving a base of jewellery stores that found membership suitable.Indeed,not all retailers are suited to the philosophy of buying groups.That said,by March 2020,IJC reported that it had reached its two-year goal of 60 stores,following an

255、influx of new memberships,and in only three years,it has expanded to 85 stores(69 members).While IJC appears to have overtaken LEGJ in size,Nationwide Jewellers remains at the top of the food chain,with 299 local members representing 337 stores.However,since our 2010 study,its base has declined in m

256、embers and stores by approximately 22 per cent.Despite these changes,Nationwide remains Australias largest buying group.Meanwhile,membership decline has also been a theme for Showcase Jewellers,which now represents 134 members and 164 stores.This marks a 29 per cent decrease in members and a 40 per

257、cent decline in stores over the past 13 years.However,when compared with a contraction of the overall number of jewellery stores in Australia,this becomes a less concerning tale.That is,the current study indicates that there are currently 2,010 independent stores in Australia,a decline of approximat

258、ely 26 per cent.This means Nationwide,Showcase,and IJC account for around 29 per cent of Australias independent jewellers a figure not dissimilar to that of 2010(32 per cent).Buying Groups:Musical ChairsThe nature of jewellery buying groups has changed significantly in the past decade.The major issu

259、e to be confronted is:Can Australia support four?KEY FINDINGS:AT A GLANCETABLE 1:AUSTRALIA ONLY MEMBERSHIPAll Groups 20232010Variation%Nationwide299391-92-23.53%Showcase134190-56-29.47%IJC69-69-LEGJ2188-67-76.14%Total 523669-146-21.82%TABLE 2:AUSTRALIA ONLY STORE COUNTAll Groups 20232010Variation%Na

260、tionwide337435-98-22.53%Showcase164274-110-40.15%IJC85-85-LEGJ21151-130-86.09%Total 607860-253-29.42%The above tables compare 2023 membership statistics to 2010.“I still think the biggest opportunity for all stores is understanding how to leverage their databases properly.I think that the jewellery

261、industry could improve on that as a whole.”JOSHUA ZARBINDEPENDENT JEWELLERS COLLECTIVEJoin the Premier BUYING GROUP Benefit from our wealth of knowledge and expertise encased in a comprehensiverange of services and resources essential for the modern independent jewelleryretailer covering merchandise

262、,marketing,finance,administration,retail,trainingand education.But most importantly join a collective of like minded peers toconnect and grow alongside.WWW.SHOWCASEJEWELLERSBUYINGGROUP.COMJoin the Premier BUYING GROUP Benefit from our wealth of knowledge and expertise encased in a comprehensiverange

263、 of services and resources essential for the modern independent jewelleryretailer covering merchandise,marketing,finance,administration,retail,trainingand education.But most importantly join a collective of like minded peers toconnect and grow alongside.WWW.SHOWCASEJEWELLERSBUYINGGROUP.COM 39 “What

264、we are now as a business is different from what we once were,and I think we will get better as time passes.”COLIN POCKLINGTONNATIONWIDE JEWELLERS“Its always been about strength in numbers,and for independent jewellers,thats more important now than ever.”ANTHONY ENRIQUEZSHOWCASE JEWELLERSFor more tha

265、n three decades,Australias independent jewellery retailers could choose membership in one of three buying groups:Nationwide,Showcase,and Leading Edge Jewellers.Traditionally,a retail buying group is a member-based organisation created to leverage the collective purchasing power of independent stores

266、 to obtain discounts from suppliers.These groups also provide business advice and support services in areas such as marketing,management,and accounting.In 2010,the three jewellery buying groups combined to represent 860 stores,accounting for 32 per cent of the independent market(2,699 stores).Howeve

267、r,everything changed in early 2020 when the Independent Jewellers Collective(IJC)was established by Joshua Zarb a former managing director of Leading Edge Group Jewellers(LEGJ).Independent retailers now had a fourth avenue to pursue supplier discounts and business consultancy,and the market seemingl

268、y responded positively as IJC expanded quickly.At the time,there was concern and industry speculation about the viability and need for a fourth group.This was driven by the widespread belief that the market was adequately covered by three groups serving a base of jewellery stores that found membersh

269、ip suitable.Indeed,not all retailers are suited to the philosophy of buying groups.That said,by March 2020,IJC reported that it had reached its two-year goal of 60 stores,following an influx of new memberships,and in only three years,it has expanded to 85 stores(69 members).While IJC appears to have

270、 overtaken LEGJ in size,Nationwide Jewellers remains at the top of the food chain,with 299 local members representing 337 stores.However,since our 2010 study,its base has declined in members and stores by approximately 22 per cent.Despite these changes,Nationwide remains Australias largest buying gr

271、oup.Meanwhile,membership decline has also been a theme for Showcase Jewellers,which now represents 134 members and 164 stores.This marks a 29 per cent decrease in members and a 40 per cent decline in stores over the past 13 years.However,when compared with a contraction of the overall number of jewe

272、llery stores in Australia,this becomes a less concerning tale.That is,the current study indicates that there are currently 2,010 independent stores in Australia,a decline of approximately 26 per cent.This means Nationwide,Showcase,and IJC account for around 29 per cent of Australias independent jewe

273、llers a figure not dissimilar to that of 2010(32 per cent).Buying Groups:Musical ChairsThe nature of jewellery buying groups has changed significantly in the past decade.The major issue to be confronted is:Can Australia support four?KEY FINDINGS:AT A GLANCETABLE 1:AUSTRALIA ONLY MEMBERSHIPAll Groups

274、 20232010Variation%Nationwide299391-92-23.53%Showcase134190-56-29.47%IJC69-69-LEGJ2188-67-76.14%Total 523669-146-21.82%TABLE 2:AUSTRALIA ONLY STORE COUNTAll Groups 20232010Variation%Nationwide337435-98-22.53%Showcase164274-110-40.15%IJC85-85-LEGJ21151-130-86.09%Total 607860-253-29.42%The above table

275、s compare 2023 membership statistics to 2010.“I still think the biggest opportunity for all stores is understanding how to leverage their databases properly.I think that the jewellery industry could improve on that as a whole.”JOSHUA ZARBINDEPENDENT JEWELLERS COLLECTIVE523Australian independent jewe

276、llery retailers are members of a buying group.Digital marketing and the refining of a jewellers online presence will be a key priority for the remainder of the decade.Nationwide Jewellers accounts for more than 57 per cent of Australias buying group members.43%Of independent jewellery retailers surv

277、eyed believe that buying groups offer more benefits than the Jewellers Association of Australia(JAA).40 Unmatched.Unrivalled.Still Number One.+612 9418 0000 Join us on the Gold Coast for our 2024 Time Out Conference.Find out why we are the leading buying group for independent jewellers.41 2024 STATE

278、 OF THE INDUSTRY REPORTBUYING GROUPSTABLE 3:BUYING GROUP MEMBERSHIP AND STORE COUNT IN 2023Nationwide NSWVICQLDWASATASACTNTTOTALNZOtherGRAND TOTAL2023-Members104626423279732996913692023-Stores117787123271083337775419ShowcaseNSWVICQLDWASATASACTNTTOTALNZOtherGRAND TOTAL2023-Members5927314661-134181153

279、2023-Stores6434476661-164181183IJCNSWVICQLDWASATASACTNTTOTALNZOtherGRAND TOTAL2023-Members299117111-1691-702023-Stores3610128131-5851-86Leading EdgeNSWVICQLDWASATASACTNTTOTALNZOtherGRAND TOTAL2023-Members883-11-21-212023-Stores892-11-21-21All GroupsNSWVICQLDWASATASACTNTTOTALNZOtherGRAND TOTAL2023-Me

280、mbers200106109344517845231815422023-Stores22513113237471898607966709The above tables record the number of members and stores of each buying group,including overseas members.The data was accurate as at November 30,2023.That said,the most alarming decline has been with LEGJ.When IJC was launched in 20

281、20,there was no doubt that the most vulnerable buying group-running the risk of losing members-was LEGJ,which our study appears to confirm three years later.Indeed,LEGJ has had a staggering fall in members since the introduction of a fourth group.Worse,it appears that the buying groups management is

282、 doing its best to avoid scrutiny on the matter-see break out box Page 45.Public perceptionAs part of this current study,Jeweller conducted a quantitative survey of more than 200 Australian-based jewellery retailers in November 2023.The ten questions sought responses on various issues and topics,inc

283、luding respondents views of the buying groups.When asked which offers more benefits membership to a buying group or membership to the Jewellers Association of Australia 43.69 per cent of respondents either strongly agreed or agreed that the buying group was the better prospect.Only 12.63 per cent be

284、lieved the JAA offers more benefits(strongly disagreed or disagreed).This could also explain why buying group member stores outstrips the JAAs retail members by far-520+compared to around 300.Interestingly,in a similar survey of jewellery industry suppliers,respondents were asked their views as to w

285、hether buying groups provide beneficial support and business advice for independent jewellers.While a smaller sample size,the result was 34.61 per cent either strongly agreed or agreed compared to 25 per cent who strongly disagreed or disagreed.Industry feedback Its hard to argue that times arent to

286、ugh for independent retailers,and recent research from the Australian Retailers Association suggests that 55 per cent of small to medium-sized retailers are concerned or uncertain about their financial prospects.When presented with information about the reduction in independent jewellery retailers o

287、ver the past decade,Showcase Jewellers managing director Anthony Enriquez wasnt surprised.While troubling,he suggested that this data confirmed the importance of buying groups.“Sadly,Im not surprised to hear these figures at all.This might seem easy to say given my position;however,I think this data

288、 underlines the importance of buying groups and what we can offer,”he tells Jeweller.“Its true,times are tough for independents.Your shopping centre data highlights what we hear all the time independents are facing rent increases from shopping centres that are unworkable.While major chains can negot

289、iate from a position of strength,independents arent always able to.”He added:“Its always been about strength in numbers,and for independent jewellers,thats more important now than ever.”Strongly disagree0%20%40%10%30%50%DisagreeNeither agree nor disagreeAgreeStrongly agree6.80%5.83%25.24%18.45%Stron

290、gly disagree0%20%40%10%30%50%DisagreeNeither agree nor disagreeAgreeStrongly agree15.38%9.62%19.23%15.38%More than 43 per cent of respondents believe that membership to a buying group offers greater benefit than membership to the JAA.Interestingly,even though JAA members were over-represented in the

291、 survey,less than 10 per cent preferred the JAA.Industry suppliers believe that buying groups provide beneficial support and business advice for independent jewellers(36 per cent)while 25 per cent do not.41 42 2024 STATE OF THE INDUSTRY REPORTBUYING GROUPS2010 VS 2023:COMPARISONS-AUSTRALIA ONLYNatio

292、nwide NSWVICQLDWASATASACTNTTOTAL2023-Members104626423279732992010-Members133838531361562391Variance-29-21-21-8-9-611-922023-Stores1177871232710833372010-Stores146959833381582435Variance-29-17-27-10-11-5-1-98Showcase NSWVICQLDWASATASACTNTTOTAL2023-Members5927314661-1342010-Members724148127811190Varia

293、nce-13-14-17-8-1-2-1562023-Stores6434476661-1642010-Stores9457811981131274Variance-30-23-34-13-2-5-2-1-110IJCNSWVICQLDWASATASACTNTTOTAL2023-Members299117111-1692010-Members-N/AVariance-2023-Stores3610128131-5852010-Stores-N/AVariance-Leading EdgeNSWVICQLDWASATASACTNTTOTAL2023-Members884-11-212010-Me

294、mbers3915153931388Variance-31-7-11-3-8-2-1-3-672023-Stores894-11-212010-Stores5145216133111151Variance-43-36-17-6-12-2-1-11-130All GroupsNSWVICQLDWASATASACTNTTOTAL2023-Members200106109344517845232010-Members24413914846522686669Variance-44-33-39-12-7-9-2-1462023-Stores225131132374718986072010-Stores2

295、911972005859291214860Variance-66-66-68-21-12-11-3-6-253When undertaking a study of this nature,its essential to reflect on the past and outline a vision for the future.Nationwide Jewellers managing director Colin Pocklington makes an astute observation about the state of the industry,suggesting the

296、nature of buying groups and what they offer independent retailers has changed significantly since the pandemic.“I was talking with a supplier recently,and he told me that buying groups have a clear need to evolve.Once upon a time,what we offered was trade discounts ahead of everything else.The indus

297、try now needs support in other areas,”he explains.“Small business owners often dont have training in things like marketing and business management.The way things are going,I think its clear that jewellery stores need to be engaged with digital marketing now more than ever before.”Pocklington continu

298、es:“What we are now as a business is different from what we once were,and I think we will get better as time passes.”IJCs Zarb strongly agrees with Pocklington and says that digital marketing has been one of his key focuses over the three years IJC has operated.“Your social media activity should ref

299、lect the themes of your website,which in turn should reflect your store image,which is represented by your merchandising,”Zarb says.“Those are principles I work very closely on with all our stores to ensure they present professionally across all channels.”He adds,I still think the biggest opportunit

300、y for all stores is understanding how to leverage their databases properly.I think that the jewellery industry could improve on that as a whole.”During adversity,people crave forward-thinking leaders with a strong commitment to success.It doesnt matter if we are talking about sports,business,or fami

301、ly life these traits offer reassurance when smooth sailing becomes a distant memory.Despite the overall decline of the jewellery industry in Australia and the pessimism about future trading conditions,it should be reassuring for local retailers to know that the three major buying groups not only hav

302、e a plan for today but also a vision for tomorrow.Group Market Share Nationwide57.17%Showcase25.62%IJC13.19%Leading Edge4.02%At the time,there was concern and industry speculation about the viability and need for a fourth group.A state-by-state comparison of buying group membership and store count f

303、rom 2010 to 2023.Market Share by Members42 43 THE COMPLETE PACKAGESupporting Australias finest independent jewellery retailers and preferred supply partners with innovation,technology,strategic marketing,professional expertise,integrity and more.With clarity and confidence,we elevate independent ret

304、ail.What are you waiting for?Josh Zarb-CEO0448 416 070|#independentjewellerscollective44 2024 STATE OF THE INDUSTRY REPORTBUYING GROUPSLeading Edge:What goes up must come downTABLE 5:LEGJ MEMBERSHIP AND STORE COUNTYearMembersStoresYoY Membership Movement201088151-201210315717%2014111163 8%2016136186

305、23%2018135195-1%2020*89124-34%20232121-76%Can Australia support four buyings groups?Since 2018 LEGJ membership has fallen by 84 per cent and its store count has plummeted by 89 per cent.PB 45 Leading Edge Group Jewellers(LEGJ)has always been the smallest of the three buying groups,in part because it

306、 is not exclusively focused on the jewellery industry.Unlike the Nationwide and Showcase business models,which only deal with fine jewellery retailers,LEGJ is a product division of the parent entity Leading Edge Group,which has members from seven retail categories,including computers,appliances,elec

307、tronics and books.When Joshua Zarb launched IJC in 2020,there was no doubt that the most vulnerable buying group-running the risk of losing members-was LEGJ,which this study now appears to confirm.Indeed,LEGJ has managed to experience a staggering fall since the introduction of a fourth group,and it

308、 is something that its staff and management are reluctant to admit,to the extent that some in the industry query whether it can legitimately claim to be a buying group.Ironically,in the inaugural State of the Industry Report-and under Zarbs leadership-LEGJ generated the most significant increase in

309、membership among the competing groups.LEGJ represented 88 members,accounting for 151 stores in 2010,and by 2018,those figures had peaked at 135 members and 195 stores.However,since then,it has been nothing but bad news for the smallest of the three jewellery groups;its store count has declined by ne

310、arly 90 per cent.It seems that the concerns about the viability of four buying groups competing in a relatively small and specialist market may be ringing true.The matter is not helped by LEGJ management doing its utmost to obfuscate its falling numbers and mask an almost non-existent membership bas

311、e.It is believed that many members have left the group in the past few years,and the decline seems to coincide with the launch of IJC.For more than a decade,each buying group would freely volunteer its latest membership and store count for publication;however,earlier this year LEGJ began reporting f

312、igures which included something it called subscribers.LEGJ members pay a monthly buying group fee of$89,whereas subscribers were meant to be stores that had purchased products from LEGJs wholesaling division but were not paid group members.Jeweller disapproved of this subscriber terminology for many

313、 reasons.For example,it was akin to claiming a store that stocked Pandora jewellery or Seiko watches was a subscriber to Pandora or Seiko.These stores are simply customers or stockists,not members or subscribers.At the time,LEGJ management claimed they could not separate the two types of businesses

314、to accurately reflect the paid membership to the buying group.When Jeweller contacted chief operations officer Charlie Davey,as part of the research for this report,he again claimed that the company or staff could not easily distinguish between a paid buying group member and a retailer that had purc

315、hased a product.Instead,he provided data suggesting LEGJ had 70 members with 101 stores;however,when that information was questioned,he dismissed Jewellers method of defining members as“complex”.There was no doubt that LEGJs membership has plummeted since 2018 despite Daveys insistence that members

316、and stockists fall under one umbrella.Davey was asked to rethink LEGJs policy and accurately and openly report its genuine paid membership numbers.Following a refusal to do so,Jeweller sought the information from other sources.Based on a recent membership list,it appears that LEGJ can now only lay c

317、laim to 21 members and 21 stores.The list included other businesses that cannot be classified as jewellery retailers in accordance with this reports definitions.Jeweller presented the research to Davey for confirmation;however,he did not reply,instead directing the email to CEO Lee Scott.If the data

318、 is accurate,LEGJs motivation for obfuscation concerning its membership decline is obvious;it has plummeted by 84 per cent since 2018(135 to 21),and its 2018 store count has declined from 195 to 21(89 per cent).Interestingly,in an email dated 11 November,Davey was more than happy to claim that there

319、 is a healthy member group across the Leading Edge Business,of over 400 members and growing”.This comment came despite the refusal to provide an accurate number to the jewellery arm of the LEG because it is“too complex”.Other factors point to the decline of LEGJs jewellery division and buying group.

320、For example,the Facebook page for Leading Edge Group Jewellers has not been updated since December 2020.The last post on 23 December 2020 reads:And on the last day of Christmas,my true love said to me Which diamond does your heart desire?The Facebook post added:“Find your closest Leading Edge Jewell

321、ers store for last-minute Christmas shopping.”With that said,the groups website(.au)is non-functional.The site appears to have been taken down.Further,the store locator on the parent companys website(.au/jewellery)also appears non-functional.No stores can be located.In addition to these anomalies,ot

322、her issues may have eroded LEGJs dealings and reputation in the Australian jewellery market.Of note is Troy Australia,a new jewellery supply business formed in 2021 and which was headed by former Showcase Jewellers managing director Carson Webb.Webb had previously worked at LEGJ and left in 2015 to

323、join Showcase.Following his departure from that buying group,Webb rejoined LEGJ to launch Troy Australia.The new business mandate was to create a“retail initiative for independent jewellery retailers offering guidance,advice,and exclusive products to help businesses grow”,including exclusive jewelle

324、ry collections,CAD,business assistance,and training.At the time,it was announced that LEGJ members would have access to Troy Australias jewellery ranges,which had been named a preferred supplier in late 2021.According to Australian Securities and Investments Commission records,it is the business nam

325、e of another entity called Australian Jewellery Warehouse with the registered address of 72 Archer St,Chatswood,the same address as Leading Edge Group.Australian Jewellery Warehouse was registered in May 2020,and the director and secretary are recorded as Simon Richard Lane,former Leading Edge CEO.L

326、EGJ had appointed its own company as a preferred supplier!Then came the launch of Diamond Republic in February of this year a jewellery supplier spearheaded by former Lane.Interestingly-and confusingly-the Troy Australia website()is non-functioning too and,instead,diverts to the Diamond Republic web

327、site(.au)without explanation.Even though ASIC records indicate The Diamond Republic was first registered only 12 months ago(22 November 2022),its website claims:“We are an Australian wholesale jewellery supplier with a long and proud history of supporting jewellery retailers.We have partnered with s

328、ome of the largest international suppliers and manufacturers to provide quality products at competitive prices.”It is well known that,after many years of supporting LEGJ,many industry suppliers have not been happy with LEGJ creating competing businesses while simultaneously demanding and receiving d

329、iscounts.Most say that LEGJ should decide whether it is a jewellery buying group representing its members or a jewellery product supplier;regardless,it appears that the importance of the group as a buying collective-with only 21 members-has waned if not become redundant.2024 STATE OF THE INDUSTRY RE

330、PORTBUYING GROUPSLeading Edge:What goes up must come downTABLE 5:LEGJ MEMBERSHIP AND STORE COUNTYearMembersStoresYoY Membership Movement201088151-201210315717%2014111163 8%201613618623%2018135195-1%2020*89124-34%20232121-76%Can Australia support four buyings groups?Since 2018 LEGJ membership has fal

331、len by 84 per cent and its store count has plummeted by 89 per cent.45 46 LUXURY PEARL&OPAL JEWELLERY02 9266 0636 E NQUIRIESIKECH O.COM.AU WHOLESALE.IKECHO.COM.AUIP263-N14YGIP263-B14YGIP264-E14YG 47 The trials and tribulations facing the general retail sector are hardly a secret.Yet,somehow,fine jew

332、ellery chain stores appear to be resistant to many of these external pressures.The 2010 edition of the State of the Industry Report(SOIR)documented the surprising resilience chain stores appeared to have in the fallout of the 2008 Global Financial Crisis.Despite stiff competition for the consumer do

333、llar,fine jewellery chains performed exceedingly well as they consolidated considerably over three years.At the time,there were 1,355 fine and fashion chain stores in Australia,occupying 32 per cent of the overall jewellery market.Of that figure,977 were fine jewellery chain stores,with these figures not accounting for Pandora(41 stores).There were 378 fashion chain stores.Fast forward to 2023,and