SA Jewellery News (SAJN) • February 2020

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Jewellery News

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FEBRUARY 2020

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• Beating load-shedding • Valentine’s Day: celebrating love • Creating the People Department to pursue the future

W h e n w e ’r e o n t o p o f t h e w o r l d o r l i f e t u r n s u p s i d e d o w n

I t ake you, until forever Forevermark Engagement & Commitment Collection Beautiful, Rare, Responsibly sourced

Editor: Adri Viviers Tel: +27 (0)11 883-4627 Cell: 084-261-1805 E-mail: adri@isikhova.co.za Publisher: Imraan Mahomed E-mail: imraanm@isikhova.co.za Watch Editor: Alice Weil Tel: +27 (0)11 880-1680 Cell: 083-266-9182 E-mail: aweil@mweb.co.za

c ntents

Advertising Sales: Ian Starnes Cell: 082-052-8428 E-mail: ian@isikhova.co.za

6. NEWS

25. THE PERFORMANCE CATALYST

Advertising Sales Representative (India): Bhupal Potdar Cell: 91-982-115-1035 Email: bhupalpotdar@gmail.com

• 2020 Factory of the Year competition

Simplicity – the ultimate sophistication

• eBay lists most expensive jewellery sold in 2019 • Shimansky unveils iconic Table Mountain ring

Advertising Sales Representative (Hong Kong): Maud Errera E-mail: maud@lni.com.hk

• Christie’s Magnificent Jewels totals US$67,5 million

Copy Editor: Anne Phillips

Distribution: Ruth Dlamini and Direct Marketing Solution

8. BUSINESS MANAGEMENT Beating load-shedding

SA Jewellery News is published by: Isikhova Media (Pty) Ltd, Physical: 10th Floor, Metalbox building, 25 Owl Street, Milpark, South Africa.

Postal: PO Box 651793, Benmore, 2010, Johannesburg, South Africa.

30. BUSINESS MANAGEMENT

Website: www.isikhova.co.za

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Celebrating love

• Sotheby’s reflects on 10 years of records

Designer: Joanne Brook E-mail: joanne@isihkova.co.za

Subscriptions & Accounts: Thuli Majola Tel: +27 (0)11 883-4627 Fax: +27 (0)11 783-2677 E-mail: thuli@isikhova.co.za

29. VALENTINE’S DAY

23. DIAMONDS

Creating the People Department to pursue the future

De Beers lowers 2020 production forecast

25. BRAND MANAGEMENT • Bulgari’s reveals thinnest-ever automatic carbon watch • Chopard’s LUC Quattro

Official Journal of the Jewellery Council of South Africa and the Diamond Dealers’ Club of South Africa.

Websites: www.jewellery.org.za www.ddcsa.co.za

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Jewellery News

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FEBRUARY 2020

On the cover At Silk Route Gold (Pty) Ltd, we specialize in the processing of responsibly sourced precious metals such as Gold, Silver, Platinum and Palladium. To complement refining, SRG has a minting division and produces coins, medals and other customized products. Customized jewellery is handcrafted on site by our talented and experienced goldsmiths and jewellers.

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India's love of adornment

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The views expressed in this publication are not necessarily those of the owners, the Jewellery Council of South Africa, the Diamond Dealers’ Club of South Africa, its members, the publisher or its agents. While every effort has been made to ensure the accuracy of its contents, neither the owners, the Jewellery Council of South Africa, the Diamond Dealers’ Club of South Africa, the editor nor the publisher can be held responsible for any omissions or errors; or for any misfortune, injury or damages which may arise therefrom. The same applies to all advertising. SA Jewellery News© 2020. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without prior written permission from the publishers. ISSN 1817-5333.

32. LITTLE GEMS

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• Beating load-shedding

For more information contact us on 011 450 3192 or visit www.silkroutegold.com / www.

• Valentine’s Day: celebrating love • Creating the People Department to pursue the future

goldcoinco.com. Email us at info@silkroutegold.com

SA JEWELLERY NEWS – FEBRUARY 2020

ED'S NOTE|SAJN

Editor's

year-old children speak Tshivenda better than I do (we live in Louis Trichardt in Limpopo, where Tshivenda is the language of the locals). Many of our friends are quite fluent in it and I’ve seen how much it’s appreciated when they’re able to answer people in their own language. My husband said he would do this with me, for which I’m very grateful.

As for my body, I’ve just had a baby boy and we’re blessed to have three healthy, happy children. I’m also eating healthily and giving my body four more weeks to recover before I start exercising too. I don’t want this to be another quick diet and temporary “fix”: I want it to be a lifestyle change so that I feel good and healthy, for myself and my family, this year.

Finally, my soul challenge for 2020 is to go beyond donating money and become actively involved in a charity. Louis Trichardt may be a small community, but it’s a deeply compassionate one where there are many

WHEN I WAS YOUNGER, I OFTEN SET CHALlenges for myself: to swim the Ebenezer Mile, do my Honours degree, read the entire Bible from page 1 and run a half-marathon. But now I can’t even remember when last I set a challenge for myself.

It’s very important to do so. By challenging ourselves regularly and decisively, we step outside our comfort zone. Challenges help us grow. We get a new sense of confidence when we achieve our goals.

I’ve decided to set three challenges for myself this year in order to challenge my mind, body and soul.

For some time now, I’ve been thinking of learning a new language. Our five- and four-

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people to pick up those who stumble or need help. The Louis Trichardt Primary School has a “toebroodjiefonds” (“sandwich fund”) initiative where 64 needy children are given lunchboxes each day to eat at recess. As two of our children are enrolled in that school, it feels like the perfect charity to start with.

I encourage you to set new challenges for yourself as well this year. Fred DeVito famously said: “If it doesn’t challenge you, it doesn’t change you.” Set new, bold career goals for yourself. Travel, exercise and meet new people.

You’ll know which challenge stimulates and educates you most.

Whichever one that is, may it spark innovation, test your mettle, change your world and change you.

Adri Viviers

SUBSCRIBE TO SA JEWELLERY NEWS

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SA Jewellery News is the official journal of the diamond and jewellery industry in South Africa. Published monthly, this publication brings you scintillating news on current international and local affairs.

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SAJN |NEWS

2020 FACTORY OF THE YEAR COMPETITION The Department of Trade & Industry (DTI) is once again a partner and sponsor of the 2020 Factory of the Year competition.

Since 1992, Factory of the Year has become the leading global benchmarking competition for manufacturing firms. Together with the DTI, the Council for Scientific & Industrial Research (CSIR), the Manufacturing Circle and the Manufacturing Indaba, the competition was launched in SA for the first time in June 2018.

With rapidly changing competitive landscapes and developments in manufacturing through advanced technologies such as additive manufacturing, the Internet of Things, big data and advanced analytics, the bar for manufacturing excellence is constantly evolving. As such, the purpose of the competition is to iden-

tify and reward excellence in manufacturing operations across all manufacturing segments.

Factory of the Year is globally regarded as the most rigorous operations assessment, with performance assessed across the following areas: value creation, economics, innovation, quality, agility and customer satisfaction.

Since 1992, hundreds of companies have participated and benefited from the independent, cross-industry feedback that comes with the benchmark. It has enabled them to analyse their strengths and weaknesses and initiate spot-on improvements.

Participation is open to and encouraged across all manufacturing segments.

“Factory of the Year is much more than a competition – it’s about bringing consciousness

of future manufacturing in SA, trends and examples of Industry 4.0 solutions that work,” says Ilse Karg, Chief Director of Future Industrial Production Technologies at the DTI. “All South African manufacturers stand to gain huge learnings from this competition, as it’s not only a benchmark of capability against the world or in SA, but also against oneself,” says Martin Sanne, Executive Director of the CSIR. There is no cost to enter the competition, but participating companies must complete and submit a questionnaire.

Manufacturing businesses wanting to participate in the competition are invited to visit: www.safactoryoftheyear.co.za for further details.

EBAY LISTS MOST EXPENSIVE JEWELLERY SOLD IN 2019

of the five priciest jewellery purchases at the e-commerce giant last year, the company said.

A princess-cut, 7,31ct light yellow diamond and platinum ring ranked second in the jewellery category, pulling in US$55 000, while a 2,52ct Lucinda diamond engagement ring by Tiffany & Co sold for US$41 500. The fourthand fifth-priciest jewellery items bought from the site were an 8,84ct natural sapphire and diamond ring, which brought in US$40 000, and a 2ct diamond solitaire engagement ring.

That piece, by designer Roberto Coin, achieved US$36 000.

Three timepieces cracked the top 20 overall most expensive purchases of the year. Those included two Patek Philippe Grand Complications watches, which sold for US$139 500 and US$125 000, and a diamond and rose gold Rolex, which went for US$100 001.

The list of top purchases, compiled from global eBay sales between 1 January and 6 December 2019, also included luxury cars, sports memorabilia, handbags and items from the entertainment industry. The highest-priced item, a power lunch with Warren Buffett, yielded US$4,6 million. – Rapaport

A 5,01ct yellow diamond ring was the most expensive piece of jewellery purchased on eBay in 2019, selling for US$65 950.

The piece, which is set on a gold band and flanked by 1ct side stones, was one of two yellow diamonds that appeared in a list

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SA JEWELLERY NEWS – FEBRUARY 2020

NEWS|SAJN

SOTHEBY’S REFLECTS ON 10 YEARS OF RECORDS The past decade might be known for superheroes, Netflix and memes, but for Sotheby’s, it was all about record-breaking jewels, as worldwide sales for the division totalled more than US$4,7 billion.

The auction house sold 40 353 items during the decade, including 683 for more than US$1 million and 41 topping US$10 million. The 10 most valuable jewels ever sold at the auction house were purchased over the past decade.

“The past 10 years have seen a complete transformation of the jewellery auction market and, without a doubt, this has been a defining decade in my 40-year career at Sotheby’s,” says David Bennett, Chairman of Sotheby’s International Jewellery Division.

“The revolution of online bidding and social media have led to unprecedented results for unforgettable diamonds and gemstones.”

The CTF Pink Star, a 59,60ct fancy vivid pink internally flawless diamond, set the record for the most expensive diamond or gemstone sold at auction. It was purchased by Hong Kong jeweller Chow Tai Fook in 2017 for

$71,2 million at Sotheby’s Hong Kong.

Two other diamonds had previously set that record during the past 10 years, including the 24,78ct Graff Pink, which fetched $46,2 million in Geneva in 2010. The 12,03ct Blue Moon of Josephine, which went for $48,5 million in 2015, also sold for the highest price per carat for a diamond or gemstone, at more than $4 million per carat – a record that still stands.

In 2013, a D-flawless diamond weighing 118,28ct garnered US$30,1 million at Sotheby’s in Hong Kong, setting an auction record at the time for a white diamond.

Sotheby’s also holds the world record for a ruby, with the 25,59ct Sunrise Ruby fetching US$30,3 million, more than triple the previous top price.

The sale of the most valuable jewel ever purchased online also took place between 2010 and 2020. That honour went to a pair of diamond earrings, which sold for US$6 million in Geneva in 2016.

When it comes to royal jewels, the collection from the Bourbon-Parma family

scored the record, making history in Geneva and breaking a 31-year record set by jewels belonging to Wallis Simpson, the Duchess of Windsor. The collection sold in its entirety in 2018 for a total of US$53,1 million. Included in it was a pearl pendant that had belonged to Marie Antoinette, which went for US$36,2 million, more than 18 times its high estimate.

Female purchasing has been on the rise, with the proportion of women taking part in auctions at Sotheby’s increasing 20% since 2010. A growing number of those collectors were under 40, the auction house notes. – Rapaport

SAJN | BUSINESS MANAGEMENT

Beating load-shedding Load-shedding tends to rear its ugly head when we least expect it. Early December saw Eskom implementing Stage 8 for the first time. Business-owners need to prepare and find ways to work around it when it does occur. Jason Laing, an international jeweller, shares a few ideas.

SEARCHING FOR THE LIGHT AT THE END OF the tunnel is something we all seem to be doing – both literally and figuratively – given the impact load-shedding is having on our production and delivery to clients.

How can you beat this problem without huge expenditure on production system changes and finding the space for additional machinery, especially if you are already facing reduced sales because of the possibility of not being able to deliver product on time because of unreliable power?

After investigating, physically testing and putting something together for myself to avoid being completely dependent on the electric grid, I have found a solution that works very well for me and costs very little. What is more, it does not take up much space and has actually helped speed up my production process to a degree.

I thought I would share with you what I have done and the step-by-step process to go through in order to achieve the same results that I am getting.

Many jewellers who do CAD design have already linked their computers to UPS back-up supplies, which help protect the computers and 3D printing machines from power surges, so they can at least get their 3D printed models out while the power is off. But it is in the next steps that the delays of production start to come into play.

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Here are my suggestions: take your 3D printed model or metal model that you may already have on hand and sprue it in a cold mould silicone frame so that you are ready to pour your liquid silicone into the frame. Many

will say that this is no help, as you will need electricity to vacuum the air out of the silicone.

Normally, this would be true, but I have found the following solution to the problem: Step 1 You will need a pressure chamber to remove all the bubbles from the translucent silicone, so here is a step-by-step guide for building yourself a cheap, but effective pressure chamber to help you achieve great results.

Visit the plumbing section of a hardware store and look for the large PVC downpiping that you find on the outside of houses. Ensure you buy pipes with fairly thick walls that can

SA JEWELLERY NEWS – FEBRUARY 2020

BUSINESS MANAGEMENT|SAJN Step 2 Cut the chamber length to the size you desire and, using the PVC welding glue, join all the parts together to form an airtight chamber.

Don’t hesitate to use more glue than you would

in the chamber remains stable. Once you are satisfied that there is no pressure loss from the chamber you have just created, you are ready to start the next phase of production.

Step 4 Take the mould frame which you set up earlier, as well as the model of which you want to make mould and the two-part silicone liquid you use for jewellery mould manufacture.

Pour the liquid into the mould frame. It will be full of bubbles, but do not worry about this. Put the mould frame inside the pressure chamber and stand the chamber vertically, with the pressure gauge at the top.

normally require when joining PVC pipes. Make sure that the hole you drill into the screw end cap is a tight fit. Seal the join between the pressure gauge, the screw cap, the release valve and the car tyre valve with the two-part epoxy glue, as this area will take most of the strain from the pressure inside the chamber.

hold the pressure. Once you have all the screwon pipe ends and the pipe itself, get some PVC welding glue and two-part epoxy glue.

You will also need a pressure gauge, a release valve so that you can release the air from the chamber and a car tyre valve so that you can set up the chamber with pressure.

Step 3 Once all the glue has set, take a standing bicycle pump and pump the chamber up to roughly one or two bars of pressure. Check to ensure that there are no leaks and that the pressure

Many jewellers like myself who do CAD design have already linked our computers to UPS back-up supplies, which help to protect our computers and 3D printing machines from power surges, so having this helps us at least get our 3D printed models out during the time when the power is off. However, it is the next steps where the delays of production start to come into play.

SA JEWELLERY NEWS – FEBRUARY 2020

Step 5 Using the bicycle pump, pump the pressure chamber up to roughly two bars of pressure and let it remain like that for about an hour, until all the bubbles have imploded in the liquid silicone. This will leave you with a clear, translucent silicone mould inside which you can see the model clearly.

Step 6 After the mould has been in the chamber for an hour, remove it using the pressure release valve and let the mould cure completely. Then follow the normal jewellery mould-cutting process route to remove the model from the mould.

You may be thinking that this is no use, as you would normally need a wax pot to inject wax into the mould – and that would require electricity in order to heat the wax. However, you will not be using wax to inject into the mould. Instead, you will use the 3D printing casting UV curing resin that you use in your 3D printer, which is called Bluecast or Resin and is obtained from ProMake International. Put this resin into a normal syringe with the needle on the end and gently inject it into the mould.

The translucent silicone will allow you to see that there are many bubbles and areas where it has not filled correctly.

Now place the mould into the pressure

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SAJN |BUSINESS MANAGEMENT chamber and pump up the chamber to roughly one bar of pressure. This will eliminate the bubbles and give you a perfect fill inside the mould. Let it remain inside the chamber for about 15 minutes, then release the pressure and remove the mould from the chamber. If you have an old mould you would prefer to use instead of a new, translucent one, you can do so and you should achieve the same results.

Step 7 Many of us use UPS power back-up units for our computers and 3D printers. They will now come in handy, as you will need to post-cure the resin inside the silicone with a UV light, so this is also why we are using a translucent silicone, as we need the UV light to penetrate the silicone to cure the resin. If you do not have access to sunlight, which works perfectly for this process, you can get yourself a cheap UV curing light that is use for UV curing acrylic nails by simply putting the UV light box over the silicone mould and letting it sit there for about 40 minutes until cured fully. You may need to check and see if it is cured. If it is not, you may need to keep curing it for longer.

Step 8 Once the model has cured completely, you will be able to remove the model from the mould and get it ready for building your casting flask.

The difference is that you will now not use the normal investment powder, as this process will take too long and you will not be able to do a sufficiently fast burn-out cycle with your furnace when your electricity comes back on again. So you need to get yourself some dental investment powder, which comes with a catalyst in order to cure solidly.

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Step 10 The beauty of dental investment material is that because it cures with a catalyst, it becomes super-hot, which allows you to put it directly into your furnace at around 450ºC. You can then ramp the furnace directly up to 900 ºC. Let it remain like that for about an hour before reducing it to casting temperature, so that the total burn-out cycle is less than three hours.

This not only helps you make up for lost time due to load-shedding, but saves you expense on electricity, labour and consumables.

Step 9 When your electricity comes back on, mix the dental investment powder and pour it into your flask over your wax resin model. Then quickly place it in your pressure chamber and pump it up to roughly two bars of pressure to eliminate any bubbles and give you a solid ceramic flask.

Step 11 Once you have done your burn-out and are ready for casting, use the spring-loaded centrifugal swing arm to cast the flask, as you will not require electricity. When the flask has cooled down, gently hammer it to break out the cast model inside and prepare it for cleaning up on the bench.

This process has worked exceptionally well for me and has really helped me stay on track by making me less dependent on the electricity grid network. I hope it also gives you the platform to get back on track during the darkest times!

SA JEWELLERY NEWS – FEBRUARY 2020

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Monthly educational insert An SA Jewellery News and Jewellery Council of South Africa initiative

Written by Dr PetrĂŠ Prins, Gems and Jewellery: The South African Handbook is an introduction to gemstones, jewellery and store management.

The following is an extract from Gems and Jewellery: The South African Handbook

After two years' post-graduate research at Cambridge University, UK, and 10 years as senior lecturer in geochemistry and mineralogy at the University of Stellenbosch, South Africa, Dr Prins, in 1982, started Prins & Prins Diamonds, a leading supplier of diamonds, gemstones and fine jewellery in Cape Town.

ISSUE 5

ISSUE 5 SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES & FINANCIAL HEALTH • Managing a jewellery chain store

ity

• Basic accounting principles • Measuring the health of your company • Gross margin key to profitability • Managing information

MANAGING JEWELLERY CHAIN STORES

SOME THOUGHTS ON PLANNING AND STRATEGY Managing a retail chain selling diamond jewellery requires not only sound business principles - to be found in most textbooks - but also the realisation that you are selling a unique product.

This is a product that is not bought every year, a product that is bought under highly emotional conditions, one which is poorly understood by the client and whose value is dollarbased and dependent, often on a daily basis, on currency fluctuations. Your variables are legion and difficult to manage.

Unfor tunately, head office management is often done by whiz-kids who were successful retailers of clothing, food or other mass-market products, but who have never seen the sparkle in the eye of a bride-to-be. A retail jewellery chain should thus “adjust” generally accepted business principles in order to accommodate the special nature of their product and to successfully serve the unique needs of their clients.

Core to managing a retail jewellery chain (applicable also to a stand-alone store) are four essential processes, ie: • customer research, • merchandise planning, • performance management, and • strategic planning.

CUSTOMER RESEARCH All businesses should obtain a profile of their existing and potential clients. In-house research or outside consultants should provide answers to the following questions:

• Who is shopping at your stores? Answers will define

your client profile, which determines your marketing and

promotions plan.

•

Did they find what they need, and if not, what were they looking for? Answers from in-house research will point to new product lines that may be required and/or deficiencies in your service.

• What products and at what prices do they buy from

your stores? Answers will determine merchandise planning.

•

Why are customers supporting your stores? Answers highlight your strengths (which should form the basis of expansion and the core of your advertising message) and what “benefits” your customers believe your brand is offering (which should assist in deciding which of your costs are producing the least benefit to clients).

SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES

•

Who are your most profitable customers?

Answers point to whom the bulk of your advertising budget should be directed.

•

How loyal are your customers?

Answers indicate your market share.

MERCHANDISE PLANNING Most retailers re-stock product lines that are selling and destock those that are not. Fair enough. But in merchandising fine jewellery, a number of “special issues” come into play.

service levels. It thus becomes essential to establish, via research, the “customer benefit” which each cost aspect produces. Costs which produce the lowest “customer benefit” should be the first to be scaled down. You may be surprised to find that customers value a salesperson’s honesty, knowledge and advice as among the greatest “benefits” a store can offer. It is thus unfair to expect a young, inexperienced salesperson to conclude a multithousand-dollar sale to a visiting tourist or wealthy local customers. Invest in your staff!

STRATEGIC PLANNING

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The abnormally high carrying cost of diamond jewellery requires knowledge about the profitability (turnover and profit per square metre) of each product category.

De-stock those with low profitability.

In southern Africa, with its unusually large variation in cultures, languages, incomes, population density, etc, the opening of new stores, or closing down of unprofitable ones, is one of the most daunting tasks of retail management.

•

Even high-ticket items are fashion-sensitive. Re-set expensive stones in fashionable jewellery. Scrap redundant styles or re-cycle them to stores with a less fashion-conscious clientele.

For jewellery chains the task will be simplified by:

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The natural and/or synthetic gemstone jewellery you stock will be indicated by market research. Do not mix these categories and be very clear on the nature of the product in your marketing message.

•

Price points are as important for a jewellery chain as for any other mass retailer.Your client profile will dictate this.

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Fluctuation in the dollar price of precious metals and diamonds, combined with the R/$ exchange rate, complicate pricing. This requires a re-tag policy, or an adjusted discount policy, especially for high-priced items, that needs to be communicated to all stores.

PERFORMANCE MANAGEMENT This process normally requires monitoring per store, per individual salesperson, per square metre, per ad spend on the total sales, the turnover speed and gross margin of each product category. Large chains should invest in sophisticated computer systems to generate such information.

It also means keeping track of costs. Retailers traditionally do this through an annual budgeting process. When retail chains expand, the increased operational complexity may cause runaway costs. More so for a retail jewellery chain. On top of the normal costs of doing business, a jewellery store requires an “unusual” investment in quality staff, security, ambience, product range and

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Proper segmentation of your client base in order to establish local needs in product and service. With this information you can tailor individual stores’ product mix, layout and ambience to reflect local expectations.

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Clustering of stores according to their most common denominators. Stores that serve a similar community or income group, or have the same competition, or are located in malls or in country towns, should be grouped together. A business plan should be written for each cluster. Managing stores as a cluster will prove costeffective and result in increased customer satisfaction.

•

Selection, training and placement of staff. It is of little use that your operational systems work properly if your sales staff cannot conclude a sale due to a lack of product knowledge, language or cultural barriers.

Sales staff should be trained for and deployed in a specific cluster of shops. This will ensure that they are able to satisfy the service needs of a specific cluster.

Please note: The basic management principles described in earlier sections also apply to individual stores that form part of a retail chain.

ISSUE 5

BASIC ACCOUNTING PRINCIPLES This section provides the basic information you need in order to understand your financial statements. It also offers a few tools that are useful in determining the financial health of your company.

Any business - whether a one-man show or a large corporation; whether it is manufacturing, trading or providing a service - is, in essence, an operation where funds are employed to allow its staff to “do the business�, with the goal of recovering the employed funds plus a margin of profit. If a margin of profit cannot be achieved, the viability of the business is in question.

In order to describe how a business uses its funds and resources to buy stock, pay salaries, expenses, etc; how funds are returned via sales; and whether there is a profit at the end of the year, accountants have devised a series of financial statements which, in some form or other, are used by all companies.

Let us examine a very simple business, where the owner started it and invested his own R1 000 as owner’s equity.

He also borrowed R2 000 from the bank. During the year, he bought stock (inventory) for R3 000; spent R300 on salaries, rental, printing, interest, etc (ie, operating expenses); bought equipment for R100; and sold half of the stock for R2 200.

This gave him a gross profit of R700. At the end of the year he should have R1 500 in stock; still owes the bank R2 000; has made R300 profit before tax and has R1 600 cash in the bank.

The financial statements on the following page explain how he utilised his funds during the year.

Now for the next year, ie, the second period. The owner puts another R500 of his own money into the business; buys new stock for R2 000 and new equipment for R200.

He sells half the stock for R3 100 (noted as income) and makes a gross profit of R1 350. Total operating expenses, including interest, increase to R1 000 and he reduces his bank loan by R200.

Look at the balance sheet for the second period and you will see that he should have R1 550 in the bank and that his accumulated profit (retained earnings) has grown to R300.

He is trading well. His stock is low and he should use the cash on hand for stock and/or advertising.

It should be obvious that a basic understanding and analysis of your financial statements will help you make informed decisions regarding future stock purchase and operating expenses.

The normal jeweller will probably find it difficult to comprehend much more than the statements as given below and would be wise to employ a proper accountant and bookkeeper if his business is growing, especially if he starts giving credit to clients and not paying his suppliers immediately.

However, for those with more interest in analysing the financial health of their companies, the following summary of a few financial tools will be useful.

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FUNDS FLOW ANALYSIS

INCOME STATEMENT End of first period

End of second period

Revenue (income)

R2 200

R3 100

Cost of sales

R1 500

R1 750

Gross profit

R700

R1 350

Less operating expenses

R300

R1 000

Less equipment

R100

R200

Net profit before tax

R300

R150

Tax payable

R100

R50

Net profit after tax

R200

R100

First period Second period Sources of funds Long-term loan

R2 000

Owner’s equity

R1 000

R500

Decrease in cash

R50

Increase retained earnings

R200

R100

Total sources of funds

R3 200

R650

Uses of funds Increase in cash

R1 600

Increase in equipment

R100

R200

Increase in inventory

R1 500

R250

Decrease in long-term debt Total uses of funds

R200 R3 200

R650

BALANCE SHEET Beginning of period

End of first period

Difference

End of second period

Difference

ASSETS Current assets Cash

R3 000

R1 600

-R1 400

R1 550

-R50

Inventory (stock)

-

R1 500

+R1 500

R1 750

+R250

Equipment

-

R100

+R100

R300

+R200

Total assets

R3 000

R3 200

+R200

R3 600

+R400

Owner’s equity

R1 000

R1 000

-

R1500

+R500

Long-term liability

R2 000

R2 000

-

R1 800

-R200

Retained earnings

-

R200

+R200

R300

+R100

Total liabilities

R3 000

R3 200

+R200

R3 600

+R400

Non-current asset

LIABILITIES

MEASURING THE HEALTH OF YOUR COMPANY As an owner or manager, you cannot escape the ultimate financial responsibility for your business. You have to make difficult decisions that may vary from appointing staff to purchasing stock, preparing a budget, etc, most of which will have a financial impact on your bottom line. You need to know the financial position of your business and its future capital requirements.

Your first objective should be to understand how your financial statements are compiled and the meaning of each item listed.

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ISSUE 5

Secondly, use the data from your statements to calculate a few financial ratios that will indicate the health of your business and, lastly, use these ratios to identify and analyse problem areas and to take corrective action.

BALANCE SHEET RATIOS How to calculate

What it means

Current ratio Current assets divided by current liabilities

Measures the solvency of the business, ie, its ability to pay its bills.

Quick ratio Cash + accounts Indicates the company’s receivable divided by liquidity, ie, its ability to current liabilities pay its bills without relying

on sales of inventory.

A quick ratio of 1 is normal

for an average-sized

jewellery company.

Safety ratio Total liabilities divided Measures the risk of the by net worth business. For example, a

safety ratio of 1,05 means

that for every rand of net

worth the owner has

invested, the company

owes R1,05 of debt to

its creditors.

RAISING FUNDS If you need to raise capital to fund the growth of your company, even more detailed financial knowledge is required and the assistance of an accountant will be necessary.

If you need to raise your overdraft, your banker will look at your debt-to-service ratio, which is calculated as: Net income + interest expenses + depreciation expenses/current portion of long-term debt.

A debt-to-service ratio of 2,3 x is an average figure for a medium-sized jewellery company. This ratio will give your banker an indication whether you will be able to repay your debt.

Warning: South African banks normally have a policy not to finance start-up jewellery businesses due to the considered risks associated with such ventures.

The ratios below are those normally used by management to measure the performance of their company. There are many other financial ratios with which your accountant will assist, if you need to identify specific problem areas in your management system.

ASSET MANAGEMENT RATIOS How to calculate

What it means

Return on asset (ROA) Net profit before tax divided by total assets

Measures how effectively your net assets are used.

A ROA ratio of of 5% means that for every R1 invested in assets, the company is generating 5 cents profit before tax.

Return on investment (ROI) Net profit before tax divided by net worth

Indicates the return the owners get on the funds they have invested. An ROI ratio of 10% means that for every R1 invested in net worth, the company is producing 10 cents in net profit before tax.

Stock turnover Cost of goods sold divided by value of stock

Indicates the rate at which your stock has been selling during the year. It is an indication of how well you have bought, designed or manufactured products that met clients’ expectations.

A stock turnover of 1,9 means that your stock is “used up” almost twice during the year. A ratio of 1,0 means that each item sells once a year (or that you sold the total cost of your stock during the year).

Chain stores usually accept a 1,4 x turnover, while a ratio of 2 or more may indicate that you do not have enough stock to sell. Custom design jewellers could achieve a turnover of more than 5.

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GROSS MARGIN - A KEY TO PROFITABILITY Most owners or managers will realise that their annual gross profit figure is of cardinal importance. You should not only be able to measure it and manage it, but - most importantly - know how to improve it.

are underperforming, your cost of sales will be too high and your gross margin low. Rectifying this is a major challenge.

Gross profit is easy to measure: your annual financial statements will provide the figures you need.

Although stock control is a study on its own, two stock issues have a major impact on your profit margin:

Gross profit is defined as: Total annual sales minus cost of production and/or cost of goods sold

i)

Too much stock. Overstocking is the cause of many hidden costs such as unnecessary interest paid on borrowings, poor cash flow, loss of discounts, stock obsolescence, extra breakages and handling costs, taxes and loss of space. It can add up to 2% per month and a whopping gross margin loss of 24%.

ii)

The wrong product mix. Dead stock causes the same cost increases as those in (i) above. A proper analysis of what you sold over the past 12 months vs the stock you carry at year end will reveal in which categories you are overstocked and which did not move.

Gross margin is defined as: Gross profit expressed as a percentage of total sales For instance: if your total sales for the year are: R500 000 and your total operational (or production) expenses plus the cost of all items sold are R400 000.

Then you have made: R100 000 gross profit or achieved a R100 000/R500 000 x 100 = 20% gross margin.

3. Poor stock control

Many jewellers are confused when they discover that their actual gross margin at year end is much less than expected. “I buy an item for R100 and sell it for R200, which surely should give me a 50% gross margin. Why, then, when I calculate my gross margin, do I come out at 40%?” The answer lies in the many small and difficult-toidentify hidden costs. Most jewellers will understand that a low gross margin will lead to a low (or even a negative) net profit.

Proper stock-taking at year end will save many hours looking for “lost items”.

SEVEN IMPORTANT REASONS WHY YOUR GROSS MARGIN MAY BE LOWER THAN EXPECTED You have to analyse the following issues and take remedial action on each if you want to increase your profitability.

1. Cash discounts on your purchases Normally, suppliers offer a percentage discount on quick payments. If you do not take advantage of this, you are paying too much for your stock and your gross margin will suffer.

For example, a 2% discount which is lost on R100 000 stock purchases every month will amount to a lost net profit of R24 000 for the year. The answer: take the discounts and ask for more!

2. Low productivity If you run a manufacturing workshop and your goldsmiths

3. Shrinkage In a jewellery store and/or in a goldsmith workshop, there are two areas where stock disappears: i)

Theft by customers and/or staff.

ii)

Wastage in the production process. There is an inevitable loss in precious metal in any workshop.

Compare yours with what is acceptable in other workshops and if it is out of line, take drastic action.

You can determine your shrinkage (stock loss) by subtracting the cost of the actual inventory on hand (as determined by a physical stock-take at year end) from the cost of year end

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ISSUE 5

inventory as given by your financial statements (ie the cost of stock which should be on hand at year end).

4. Improper buying Buying jewellery stock needs to be planned and done according to a budgeted and detailed programme. Larger chain stores are guided by price points, trade fairs and fashion demands, whereas the smaller jeweller often buys ad hoc or as his cash flow allows. Some join a buying cooperative to obtain volume discounts.

Whichever system of stock purchase you require, if you select “dogs” they will sit, die and erode your profit margin.

5. Poor pricing

you expected a gross profit of R334, thus a gross margin of 33,4%. However, offering a 10% discount on the tag price, your gross profit is now R234 and your gross margin 234/900 = 26%, ie 7,5% lower than expected. This could be the difference between a net profit and a net loss at year end.

6. Bookkeeping errors Accounting software packages are readily available and you would be wise to obtain one that is custom-made for the jewellery industry. The initial effort in getting to grips with the system will be worth every penny. Computers do not make mistakes but, unfortunately, humans do. Proper training or outside help will solve many headaches. Having timely information available, stock categories analysed and records kept up-to-date will eliminate many of the hidden costs that are eating away at your gross margin.

To determine the “real” cost of manufacturing an item is often difficult A small improvement in gross margin and requires some bookkeeping skills. will have a big impact on profitability.

Costing items that have been purchased is much easier. Insist that your supplier provides an invoice with proper descriptions and all items individually priced, 7. Low sales volumes or you will spend many hours trying to cost your stock.

This factor is one of the major contributors to low net What mark-up to be used and what discounts to offer profit figures. You may have a large profit margin - ie, profit your clients depend on the type of shop or workshop you as a percentage of sales - but you can still be in trouble. If manage. Remember, a relatively small percentage discount your sales are insufficient, your gross profit in monetary from the top makes a large difference in your gross margin. terms will be low and may not be enough to cover your For instance: Say your tag price is R1 000 and you used monetary expenses. Remedial action to improve sales an initial mark-up of 50%, ie, the item cost you R666 and volumes is required.

GET YOURSELF COMPUTERISED A number of computer systems are available that are specially designed for jewellers. A good system may be quite an expensive technology, but will collect data, organise it and print reports that you can understand and use. It will truly save you money in the long run and keep you competitive. Be prepared for many months of frustration while you and your staff get used to the new system. Do not buy a system that does not offer training and telephonic assistance.

THE JEWELLERY SHOPKEEPER A computerised system for jewellers developed in South Africa is obtainable from: www.shopkeeper.co.za or info@shoso.co.za.

Put your files and folders on disk.

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DID YOU KNOW?|SAJN

Interesting facts 1

2

Taken from Ancient Greek origin, the poison ring was believed to facilitate the death of an enemy. This was easily managed by a flip of the ring lid into food or drinks. Another use was to save the wearer from torture in the event of capture by an enemy.

During the rise of the suffragette movement, women were inspired to wear suffragette colours: green (hope), purple (dignity) and white (purity). This change was incorporated into the jewellery worn in this era and was designed in these colours which represented what they stood for.

5

4

The Pope's signet ring shows St Peter as a fisherman and has the reigning Pope's name inscribed around the border. The ring, which each newly elected Pope receives, is publicly broken after his death.

7

Cloisonné is a type of enamelling process where flat metal strips (or silver/gold wires) are soldered onto the surface of the metal object, creating mini-walled compartments which are then filled with enamel and fired.

8

Heliodor is a member of the beryl family.

This stone is known for its range of yellow colours – from pale yellow, greenish yellow and orange-yellow to a deep golden orange.

Heliodor can be faceted for jewellery use.

A body was discovered in the English Channel by a fisherman. The only identifiable object on the body was a Rolex watch. Using the serial number on the watch, the police were able to identify the victim of the murder.

3

Lady Gaga arrived at the 2019 Oscars wearing a fancy yellow diamond once worn by Audrey Hepburn. This is the third time the diamond was worn since its creation.

6

Small swords were items of male jewellery.

By the 1750s, their elaborate gold and silver hilts, mounted with precious stones and fine enamelling, were the products of the goldsmith and jewellery, rather than the swordsmith.

9

For her coronation, Queen Elizabeth II wore a Jaeger-LeCoultre Calibre 101, renowned for having the smallest mechanical movement in the world.

• For your weekly dose of interesting industry-related facts, visit: www.facebook.com/pages/SAJN/508328912586722 and “like” the SAJN Facebook page.

SA JEWELLERY NEWS – FEBRUARY 2020

21

BOOKINGS JULY-DEC 2020 BI-ANNUAL DIRECTORY

OPEN TO A DV E R T ISE CO N TAC T I A N O R L A ME E S

011 883 4627 • ian@isikhova.co.za • lamees@isikhova.co.za

DIAMONDS|SAJN

De Beers lowers 2020 production forecast

De Beers has reduced its production outlook for this year and beyond amid uncertainty about the health of the diamond market.

DE BEERS EXPECTS TO RECOVER 32 MILLION34 million carats in 2020, compared with its earlier outlook of 33 million-35 million carats, parent company Anglo American said recently.

Its output is forecast to rise to 34 million-36 million carats in 2021, versus a previous projection of 35 million-37 million carats.

“It’s a slight trimming of production and a prudent approach to supply outlook for next year, given the rebalancing the industry is going through,” says David Johnson, Head of Strategic Communications for De Beers.

“We’ve got some flexibility in that, so if we do see things change significantly, we can edge things back up again.”

An over-supply of polished diamonds in the manufacturing sector and sluggish consumer demand have forced De Beers to revise its production plan twice in five months. In July, it trimmed its 2019 estimate to around 31 million carats from its earlier prediction of 31 million-33 million carats, citing weakness in the rough market. While 2020 production is anticipated to be higher, it will still lag behind the 35,3 million carats unearthed in 2018.

De Beers’ revenue has declined 26% for the year to date amid “challenging diamond market conditions”, it noted in an investor presentation. Anglo American also expects inventory for the entire group to grow by around US$500 million in 2019, with De Beers accounting for most of that increase. This follows the company’s decision to offer unprecedented concessions to sightholders in the second half of the year to enable them to buy less rough and reduce their stockpiles.

The excess inventory at diamond cutters weighed on the entire market last year, with

Bain & Co predicting a slight improvement in 2020. However, the management consultancy does not expect a real opportunity for rebalancing until 2021.

“Ongoing supply-demand inequality will prevent full recovery of the industry in 2020 and may be exacerbated by a continuing decrease in available financing for midstream players,” said Bain in its annual sector-wide report. “Few producers have announced sufficient mining plan cuts, so we do not foresee a major decline in supply.”

A shift at De Beers’ Venetia deposit from open-pit to underground mining has also impacted production, as output there has fallen during the transition period. Production at the mine in SA was anticipated to increase in 2021, as it focuses on a high-grade section, the company said a year ago. However, the final transition to underground operations will result in a drop in company-wide production to 33 million-35 million carats by 2022.

The miner’s final sight of the year took place in Gaborone, Botswana. – Rapaport

A shift at De Beers’ Venetia deposit from open-pit to underground mining has also impacted production, as output there has fallen during the transition period. Production at the mine in SA was anticipated to increase in 2021, as it focuses on a high-grade section, the company said a year ago. However, the final transition to underground operations will result in a drop in company-wide production to 33 million-35 million carats by 2022.

SA JEWELLERY NEWS – FEBRUARY 2020

23

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Bulgari reveals thinnest-ever automatic carbon watch The Octo Finissimo collection has been the venue for Bulgari’s expression of modern high watchmaking, with innovative designs, complications and world records. The latest interpretation is the Tourbillon Carbon, which combines the world’s thinnest flying tourbillon with an innovative case material.

The case and bracelet are made of carbon coal tar pitch. The movement is a technical marvel at only 1,95 mm thick, thanks partly to an innovative peripheral rotor. It is showcased in an openworked dial with black finishing and can also be seen through a transparent case-back.

The collection is a limited edition of 50 pieces.

GIA certified Polished & Rough diamond merchants Calibrated smalls in various shapes & sizes Certified loose diamonds & tanzanite Investment stones

Chopard’s LUC Quattro Chopard embraces the basics of traditional fine watchmaking in the classic LUC Quattro. The satin-brushed dial is an extraordinary greyishgreen shade, evoking private gentlemen’s clubs and a formal air of elegance, yet with eccentric details, including the dial’s satinbrushed finish, Arabic numerals at 3 and 9 o’clock and the Super-LumiNova covered Dauphine fusée-type hands.

The movement, calibre LUC 98.01-L, has two pairs of stacked barrels for an incredible 216-hour (nine-day) power reserve. Despite this Quattro mainspring power, the movement is ultra-thin, with the case being only 8,84 mm thick.

This is a 50-piece limited edition in 18ct white gold, with a 43 mm case. It features a brown alligator strap with a polished 18ct gold pin buckle.

It is finished to Poinçon de Genève standards.

Louis-Ulysse Chopard founded his own workshop in 1860 in Sonvilier, in the Swiss Jura. Since 1963, Chopard has been owned by the Scheufele family, with its headquarters in Geneva. Internationally renowned for its watch and jewellery creations, the group currently employs over 2 000 people worldwide. It is independent and vertically integrated, controlling the entire process from design to distribution through 1 600 points of sale and more than 147 dedicated boutiques.

Over 30 different crafts are practised in six

SA JEWELLERY NEWS – FEBRUARY 2020

manufacturing sites, with a strong emphasis on in-house training. Chopard has built its reputation on iconic collections such as “Happy Diamonds”, “Happy Sport” and “Mille Miglia”. The firm is also widely recognised for its high jewellery creations, fine watchmaking and manufacture expertise, expressed in the LUC collection. According to two of its fundamental values, respect and social responsibility, Chopard is strongly committed to various philanthropic organisations. Longterm partnerships tie the company to the José Carreras International Leukaemia Foundation and the Elton John Aids Foundation.

Last, but not least, Chopard is a faithful partner of the Cannes International Film Festival and legendary classic car events, such as the Mille Miglia in Italy and the Grand Prix de Monaco Historique. The project “The Journey” is a multi-year programme which was launched

by Chopard in 2013, deepening its commitment to sustainable luxury.

Jewellery manufacturers Designer Jewellery

Professional Guarenteed Quality CONTACT KEAGAN GREEN Tel: +27 11 268 6544 Mobile: +27 82 926 5415 Email: keagan@afisia.co.za Website: www.afisia.com www.afisia.co.za

SAJN |THE PERFORMANCE CATALYST

Simplicity – the ultimate sophistication Nigel Smith, a results catalyst, aims to help people and businesses achieve goals by equipping them to innovate, relate, sell, coach and lead.

BLINK AND THE FIRST month is done and dusted: the January hustle and haze have gone. Yet there seems to be a common theme or message of wisdom which grabs my attention at the beginning of every year. Has there been one for you at the start of 2020? What have you been hearing or sensing?

These emerging themes are not usually linked to the top five advertised trends of the new business year or the latest researched results of big-data analytics. Instead, they seem to appear in the form of tried and tested business principles that span many decades.

For me, the re-occurring message for 2020 is

about simplicity: keeping focus on the essentials, uncomplicating things, getting back to basics, not over-committing, honing and using natural talents and strengths, and running the chosen race in the most efficient and effective way possible in order to win the prize.

Rethink your fundamentals and what is most important to your core business success; then align everything around that central objective.

Any professional athlete, at any given moment, always has a very specific goal and everything related to achieving it is carefully planned, practised, measured and developed.

Nothing is haphazard or spur-of-the-moment.

There is no room for nice-to-haves or extra activities which add no direct value. Anything which does not support the achievement of that goal is eliminated.

In tough economic times, we need to use what we have. Look in before looking out.

Go back to the basics of what has consistently allowed you to achieve success. Build on your strengths and eliminate distractions and any non-essentials. And when you need to add, grow and change – do so in small incremental steps so that the new can become entrenched in habit and culture, before

embarking on the next phase.

Simplicity is the ultimate sophistication, but it takes a genius to create that simplicity in the first place. Many well-respected business authors and researchers have observed that success is the culmination of keeping a steady focus on well thought-out goals, cemented with relentless discipline and collaborative commitment from everyone to achieving them.

The data suggests that the more complexity and confusion there are in goal identification and business process alignment, the less the opportunity for success.

So what adjustments do you need to make to fine-tune your 2020 goals and make them clear and simple, yet well thought-out and robust? What behaviours do you need to streamline in order to support the attainment of your objectives? Where do you need to cut and change, or fix and improve your fundamental practices?

How do you ensure one orchestrated, simple harmony, with every instrument in tune, making beautiful sounds of victory for a very specific audience?

Be the conductor for your people and receive encore after encore from your clients!

In tough economic times we need to use what we have. Look in before looking out. Go back to the basics of what has consistently allowed you to achieve success. Build on your strengths and eliminate distractions and any non-essentials.

26

SA JEWELLERY NEWS – FEBRUARY 2020

MARKETS|SAJN

Business barometer A monthly survey conducted by SAJN among industry players (small and large) on a national basis.

NOVEMBER 2019 VS NOVEMBER 2018

WHOLESALERS

DIAMOND DEALERS

General sales compared with last year this time

RETAILERS 50% BETTER

Best-selling diamond size

0% SAME

0,5ct

0% BETTER

50% WORSE

General sales compared with last year this time

0%

0%

BETTER

BETTER

0%

50%

SAME

SAME

SAME

100%

100%

0%

WORSE

Foot traffic

0% BETTER

50%

WORSE

WORSE

General sales compared with last year this time

Watch sales

0% SAME

Breakdown of retail sales

100% WORSE

MANUFACTURERS

66,6%

0%

BETTER

BETTER

0%

100%

SAME

33,3%

33,3%

Consumption of platinum compared with last year this time

8%

33.3%

0%

Consumption of gold compared with last year this time

watches

80%

BETTER

SAME

WORSE

fine jewellery

10%

33,3%

SAME

WORSE

bridal

WORSE

Consumption of silver compared with last year this time (Above): Retail trade sales at constant 2015 prices. All information supplied by Stats SA.

SA JEWELLERY NEWS – FEBRUARY 2020

27

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Point of sale

VALENTINE’S DAY|SAJN IT IS ESTIMATED THAT ONE BILLION Valentine’s Day cards are distributed every year; it is the largest seasonal cardsending occasion besides Christmas. Historical archives mention at least three individuals – though there might be more – thought to have been linked to this event, with some recognised by the Catholic Church. However, the best-known one is Valentine, a priest during the reign of Emperor Claudius II in the third century.

Believed to have engaged Rome in several unnecessary wars which cost the lives of thousands of soldiers, Claudius realised that many young men were reluctant to join the army because of their attachment to their wives and families. In order to sever such bonds, he cancelled all marriages and engagements within the city.

Despite this decree, Valentine secretly arranged marriages of young Roman couples.

When his defiance was discovered, Claudius had him imprisoned, tortured and then executed on 14 February. After his death, he was raised to martyrdom and ultimately became the patron saint of love.

There is a belief that during Valentine’s incarceration, he became friendly with his jailer’s blind daughter, who periodically brought him notes and flowers from children in the vicinity, to which he responded when possible.

Days before his beheading, he prayed for her and she is said to have regained her sight. He also wrote a loving farewell note to her, signed: “From your Valentine” – popularly regarded as the first Valentine’s card ever sent.

An interesting theory is that Valentine may have worn a purple ring containing an amethyst, now usually worn on the finger of a Christian bishop. This would have been recognised by soldiers, who would ask Valentine to perform their marriage ceremonies. This association may be the reason an amethyst was named the birthstone of those born in February.

According to another tradition, Valentine tried to convert Claudius to Christianity and

Celebrating love Red roses, hearts and anything romantic are symbols traditionally associated with St Valentine’s Day on 14 February, while sentimental practices associated with that date have been embellished over the centuries. The occasion is said to have originated in honour of a Roman priest – named Valentine, of course – who was martyred in around AD 496. relinquish his pagan beliefs. Therefore, in the modern era, the Anglican Church holds a special service on St Valentine’s Day, which includes the optional ritual of renewing marriage vows.

Valentine’s Day later spread throughout the Anglosphere and to countless other countries worldwide, with Eastern and Western ones having their own interpretations and specific customs for the occasion. During the 19th century, handwritten notes gave way to mass-produced greeting cards, creating an enormous business opportunity for Hallmark, for example. In the UK, it is estimated that about £1,3 billion is spent annually on cards, flowers, chocolates packed in heart-shaped boxes and other gifts. An estimated 25 million cards are sent in England alone.

Other symbols associated with Valentine’s Day include heart-shaped outlines, doves and figures of winged Cupids. Some believe the day has become overly commercialised, with consumers being encouraged to buy gifts for loved ones. People in serious relationships would obviously include jewellery among these tokens.

Pandora has channelled the symbols of romance into a new hand-finished and contemporary heart-shaped jewellery collection. In sterling silver, it has bold enamel, delicate glass and heart-shaped, shimmering stone inserts as a tribute to love.

Swiss watchmaker Giselle Rufer, President and CEO of Delance Watches for Women, says her Valentine’s Day timepiece is one of the preferred watches bought by men for the women in their lives. The designer’s main aim was to personalise the watch, which often includes diamonds and blue sapphires. Very often, such precious stones symbolise the births of a couple’s children. The Delance brand will be 20 years old this year.

French watch brand Michel Herbelin has also produced a version for Valentine’s Day and other Parisian jewellers have not missed the opportunity to exploit the possibilities.

There are many less elaborate, but equally romantic ways to celebrate Valentine’s Day with a spouse or partner, such as creating a homemade card, having a candlelit diner à deux in a restaurant, going away for a weekend, revisiting the place of a first date, doing the things that first sparked one’s romance, as well as filling the bedroom with traditional red roses.

Alternatives are visiting a spa or having a bubble bath together at home. The occasion is also ideal for proposing marriage – either dressed in one’s most seductive outfit (or in one’s birthday suit, if going the bubble bath route!).

In the UK, it is estimated that about £1,3 billion is spent annually on Valentine’s cards, flowers, chocolates packed in heart-shaped boxes and other gifts.

SA JEWELLERY NEWS – FEBRUARY 2020

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SAJN |BUSINESS MANAGEMENT

Joanne Perry, HR Manager at RS Components SA, shares how today’s employees must adapt to and manage change.

AS AN HR PROFESSIONAL, I am often asked what the jobs of the future will be.

This is not easy to answer.

The truth is that we do not know – at least, not in broad strokes. But if we look more closely at a company’s strategy, we can start seeing where certain roles will fit in. However, it is not as simple as assigning jobs with narrow and specific definitions. The days of studying for a lifetime career are gone. Today’s employee must be able to adapt to and manage change.

A major reason for this is that employment environments are more fluid and dynamic than ever before, thanks to the advent of digital technology.

While preparing for this article, I questioned the extent to which technology features in the HR department I run. But a quick audit surprised me. It was evident in different areas such as recruitment, administrative processes like online payslips and leave applications.

We also rely on integrated digital HR platforms to centralise our employee data in a single system. Digital streamlines administrative HR processes such as personal detail changes, job and employment information changes, as well as managing certain HR processes such as performance evaluations and delivering company-wide training. Self-service portals and digital evaluation tools empower the rest of RS Components SA’s staff, while my team leverages analytics from our employee data to remedy familiar challenges such as reducing staff turnover, improving diversity within the business and managing absenteeism.

These examples reveal the extent to

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Creating the People Department to pursue the future

which digital technologies subconsciously alter the way we work. They reflect the continuous change, often gradual, that occurs as new technologies continue improving our operations.

Finding and retaining people who can operate and adapt to such a fluid environment is a new, but welcome challenge.

One cannot simply have a strategy to recruit only the brightest minds – if that were the case, HR would not feel the pressure to evolve. To help our companies

perform in this era, where technology is continually changing the nature of work, managing people has become a much more demanding and strategic discipline.

Helping people change Some people are not very accepting of change and feel uncomfortable with the rate at which it occurs. I have conducted exit interviews where this was highlighted as a contributing factor for leaving the business.

Change can often leave people feeling paralysed, if not managed correctly, but many can adapt to it, providing they are supported in the right way. We accomplish this in several ways, two of which are worth highlighting.

The first is to put the power of managing people in the hands of their line managers.

Despite having that ambition, HR has never really been seen as a strategic resource. Rather, it is seen as the bureaucratic hub where everyone’s employee-related issues are managed.

Digital HR platforms give managers,

SA JEWELLERY NEWS – FEBRUARY 2020

BUSINESS MANAGEMENT|SAJN among others, access to employee information through self-service portals. Routine tasks such as booking leave or performance management can now be handled by those who benefit directly. The platforms have also reduced HR’s administrative workload, allowing my team to focus more on strategic objectives such as talent management, employee life-cycles, diversity management and skills development.

The second relates to skills. Every business has employees who are loyal, experienced and comfortable with the company culture. It would be damaging to lose them simply because they cannot keep up with the pace of change. To this end, we have created numerous learning opportunities for our employees, such as access to formal education and training courses, allowing everyone to upskill and “futureproof” themselves.

In addition, all our employees are encouraged to broaden their knowledge and add to their skills through free access to LinkedIn Learning, for which the business pays. Learning and development is a key focus area for us at RS Components SA, as we continue to evaluate the business to ensure that our people’s skills and attitudes complement our strategy.

A lot of this is accomplished through technology, with one very important addition: HR must have a presence at the table when company strategy is discussed, or that discussion can only add limited value.

Our company made this change recently and it has been very effective. I often sit at the table when conversations are focused on the sales and operations of the business.

However, collaboration with these functions of the business offers HR opportunities to become a part of the organisational strategy and align their HR goals to those of the larger organisation.

Businesses might operate on profit and loss, but their success depends on their people. This is more important today than ever before, so HR needs to go beyond administering people.

We must be the Department of People and promote those capabilities across the rest of our companies as well.

One cannot simply have a strategy to recruit only the brightest minds – if that were the case, HR would not feel the pressure to evolve. To help our companies perform in this era, where technology is continually changing the nature of work, managing people has become a much more demanding and strategic discipline.

SA JEWELLERY NEWS – FEBRUARY 2020

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SAJN |LITTLE GEMS

India’s love of adornment

INDIAN MOGULS’ ASSOCIATION WITH JEWELS is deeply entrenched in their culture and collective imagination, as is borne out by many legends. Prominent in Indian mythology are esoteric interpretations of gold and gems. In addition, jewellery has always denoted the rank and caste of its wearer. A single woman, for example, would not wear the gems with which a married woman adorns herself.

The evolution of general jewellery-making – its secrets passed down from father to son – is visible in the fabulous Indian jewels created during the Muslim Mogul dynasty (between the 16th and 18th centuries), as well as in later Indian princedoms. Jewels for turbans and pendant ornaments for the head, bands to be attached to the hairline, earrings, nose rings for which nostrils and cartilage were pierced, necklaces, bracelets, brooches, belts, finger rings and amulets were among the prized pieces. To these were added jewelled weapons and richly decorated objects for daily use.

In the creation of these jewels, the many processes used included design, cutting, chasing and enamelling. One type of workmanship involved setting and mounting stones in a bed of lacquer enamelled with a sheet of gold. The stones were secured by threads of gold. The great variety of styles was influenced by many factors, including goldsmithing traditions. In provinces like Rajasthan, for example, jewellery was lighter and more refined than in the southern areas of the country, where heavier, sturdier, more elaborate items were clearly influenced by Persian and European designs.

A 17th-century jewel from northern India worn on the forearm was enriched with rubies and enamel; pendants were commonly embellished with precious stones set in gold.

Mogul turban ornaments were frequently showpieces of elegance, affluence and power.

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Image courtesy the National Portrait Gallery, London

Indians have always loved gold, silver and precious stones – as reflected in their traditional attire and intricate, dazzling religious artifacts. They believed gold to be “condensed sunlight”: the noblest and purest of metals. Alice Weil takes us back in time to the days of the Indian potentates.

The display of a few items (including the legendary 106ct Koh-i-Noor diamond) at the Great Exhibition of 1851 in London sparked general interest in the West in Indian jewels.

One magnificent necklace dating from the 19th century is composed of a series of lobed plaques, each decorated with a facing pair of birds realised in diamond brilliants and rubies on a ground of green enamel.

A stiletto designed with a curving point is a typical symbol of the Mogul community. Made of gold and studded with diamonds, rubies, emeralds and pearls, the handle is set with a large rectangular emerald.

The sheen of three intertwined strings of

DID YOU KNOW

pearls alternating with white diamonds characterise a large pendant in the form of a white and yellow flower: a comparatively simple, but no less stunning design. Pearls and rubies, according to Indian tradition, were worn by sovereigns and their closest courtiers.

The Maharajas of India had plentiful money, stones, taste and Western aspirations. Their princes were enchanted by Paris – and by Cartier. Nothing was too beautiful or costly for these dignitaries, no item too spectacular, and they were frequent and flamboyant spenders. The prince of one large state ordered a ceremonial necklace and other accessories, such as buttons, from the renowned French jeweller. These were displayed in the windows of the Rue de la Paix in 1928.

Bhupinder Singh, the Maharaja of Patiala, was a man of both extravagance and ego, who enjoyed flaunting his magnificent jewellery.

A photograph of him shows him in a heavily bejewelled turban and a lavish necklace made especially for him by Cartier in 1928; it contains Burmese rubies and 2 930 diamonds, including the world’s seventh-largest brilliant, the 234ct “De Beers”. The necklace weighed 962,25ct in total and the stones were set in platinum.

Sadly, Singh died at the age of 46 in 1938 and the necklace then vanished. Only part of it was ever recovered in a London secondhand jewellery shop 50 years later. Cartier acquired these remnants, but many of the large diamonds, including the De Beers, were missing. Nevertheless, Cartier reconstructed the necklace using synthetic stones.

Another spectacular creation by Cartier in 1927, a gravity pendulum clock in lapis lazuli and malachite dotted with coral stars, is a glorious creation of bold colours, vivid imagination and eclectic taste. It is clearly influenced by the Indian aesthetic.

It would take a lifetime to itemise the many other magnificent examples of jewellery which have adorned the wrists, fingers, heads and necks of Indian nobles: indeed, their country – “the Jewel in the Crown” of the former British Empire – has always been synonymous with rare and exotic embellishments. Anyone visiting it can gain unique insights into that history by viewing its gems.

Alice Weil was born in Cape Town and attended the Michaelis School of Art at the University of Cape Town, qualifying in Commercial Art.

SA JEWELLERY NEWS – FEBRUARY 2020

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