SA Jewellery News (SAJN) • January 2019

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Jewellery News JANUARY 2019

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Jewellex Committee appoints new Chairperson Dubai’s premium jewellery event Make a date for 2019

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Editor: Adri Viviers Tel: +27 (0)11 883-4627 Cell: 084-261-1805 E-mail: adri@isikhova.co.za Watch Editor: Alice Weil Tel: +27 (0)11 880-1680 Cell: 083-266-9182 E-mail: aweil@mweb.co.za Advertising Sales: Ian Starnes Cell: 082-052-8428 E-mail: ian@isikhova.co.za

7. NEWS

Advertising Sales: Trivern Goodoon Tel: 072-837-4962 E-mail: trivern@isikhova.co.za

• Jewellex Committee appoints new Chairperson • De Beers Group Designers Initiative launches Shining Light Awards 2018/19

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

• Israel’s International Diamond Week to be held this month

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

• De Beers’ Lightbox pops up in New York

Designer: Joanne Brook

• LMHC makes progress on harmonisation of colour description and new treatment issues

Copy Editor: Anne Phillips Subscriptions & Accounts: Thuli Majola Tel: +27 (0)11 883-4627 Fax: +27 (0)11 783-2677 E-mail: thuli@isikhova.co.za Distribution: Ruth Dlamini and Direct Marketing Solution

10. INTERNATIONAL FAIR

SA Jewellery News is published by: Isikhova Publishing & Communications CC, PO Box 651793, Benmore, 2010, Johannesburg, South Africa.

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Dubai’s premium jewellery event

11. INTERNATIONAL FAIR CALENDAR

16. JEWELLERY DESIGN AND MANUFACTURING

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Make a date for 2019

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12. DIAMONDS

Chief Financial Officer: Imraan Mahomed E-mail: imraanm@isikhova.co.za

Diamonds: looking back and ahead

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13. JEWELLERY Jewellery: 2018, 2019 and beyond

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14. RETAILING Four ideas to help you generate more revenue

19. BRAND HISTORY The discovery of a treasure

20. LITTLE GEMS

Official Journal of the Diamond and Jewellery Federation of South Africa.

Website: www.jewellery.org.za The views expressed in this publication are not necessarily those of the owners and the Diamond and Jewellery Federation 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 and the Diamond and Jewellery Federation 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© 2018. 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.

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Jewellery News JANUARY 2019

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On the cover The Richline brand’s mission is to create, market and distribute proprietary, visual, emotional, fashionable and cultural products in collaboration with key retail partners to stimulate mutual

Jewellex Committee appoints new Chairperson

growth. Contact Richline South Africa on tel: (011) 418-1600.

Dubai’s premium jewellery event Make a date for 2019

SA JEWELLERY NEWS – JANUARY 2019

NEWS

JWANENG CHIEF APPOINTED MD OF DEBSWANA Debswana, De Beers’ Botswana joint venture, has appointed Jwaneng mine chief Albert Milton as Managing Director.

Milton took the position on 1 December, succeeding Balisi Bonyongo, who retired, De Beers said. Bonyongo remains at Debswana as a consultant for three months, the miner added.

Milton has worked at Debswana for more than 25 years, and has been General Manager

of the Jwaneng asset in Botswana since 2013.

He has held management positions at a number of other De Beers projects, including the Orapa, Venetia, Letlhakane and Damtshaa mines.

De Beers and the Botswana government each own half of Debswana, which contributed 68% of De Beers’ production in the first nine months of 2018.

“Albert will be taking all his many years

of outstanding experience in the organisation to lead Debswana in its next chapter,” said Bruce Cleaver, CEO of De Beers and Chairperson of Debswana. “There are very exciting times ahead for Debswana, with a huge [number] of opportunities on the horizon, and I believe Albert is the ideal candidate to take the business forward and maximise its potential.” – Rapaport

RENAISSANCE BUYS DISNEY-THEMED JEWELLER India’s Renaissance Jewellery (RJL) has acquired Jay Gems, a USA-based supplier of Disney-themed jewellery, for US$26 million.

The move expands the Mumbai-based company’s presence in the USA, Jay Gems said.

RJL will gain access to Jay’s three subsidiaries: Jewelmark, a manufacturer that focuses on bridal and fine jewellery for specialty stores, Simply Diamonds, which caters to independent jewellers and Enchanted Disney Fine Jewelry, a supplier of Disney-princess-inspired engagement rings, earrings, rings and pendants.

Jay Gems recorded revenue of US$79 million in its latest financial year, with its Disney-themed subsidiary accounting for more than half its overall sales, it said. The company supplies to more than 6 000 retailers, including Signet Jewelers, Fred Meyer and Helzberg Diamonds. Jay Gems’ management will continue to run its operations.

“With the financial strength and global distribution of RJL, we expect to be able to grow Enchanted Disney Fine Jewelry into a global brand within five years,” Renaissance Vice-Chairperson Sumit Shah said. – Rapaport

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Significant achievements in the harmonisation of wording on laboratory reports and the reporting of new treatments were chalked up during the 29th meeting of the Laboratory Manual Harmonisation Committee (LMHC), which was hosted by the Gübelin Gem Lab in Lucerne, Switzerland, on 14 and 15 November 2018.

The LMHC is currently comprised of representatives from the Central Gem Laboratory, CISGEM Laboratory, DSEF German Gem Lab, Gübelin Gem Lab, GIA Gem Laboratory, the Gem & Jewelry Institute of Thailand and the Swiss Gemmological Institute SSEF. The organisation is not formally connected to any trade organisation.

During the meeting, the LMHC members agreed to modify infosheet No 4 concerning the use of the term “padparadscha”. The infosheet now specifies that the term is not applicable if the colour of the stone is unstable and shifts to pink when exposed to a colour stability test. Additionally, a new infosheet about organic fissure-filling in any gemstones and another on hydrophane opal were unanimously approved by the laboratory representatives.

All LMHC infosheets, including the two new releases, are accessible on the new LMHC website: www.lmhc-gemmology.org.

The LMHC also discussed issues raised by new treatments. These include the low-temperature heating of corundum and a new sapphire heat treatment, which has been incorrectly named high pressure-high temperature (HPHT) heating in the trade. Current scientific knowledge and available data from the LMHC laboratories indicates that the latter treatment is essentially a form of heating and, as such, is similar to most known heating techniques. It consequently does not currently require specific reference on the laboratory reports of the LMHC members.

Nonetheless, LMHC would again like to stress that all heat treatments may create fissures or expand pre-existing fissures in a gemstone, especially when high temperatures are applied. These could have a negative impact on the stability of the heated stone.

Additionally, during their meeting in Lucerne, the LMHC members initiated a project which is aimed at harmonising the use of colour descriptions and colour trade terms at the various LMHC laboratories.

“We are very pleased to see that all laboratories represented at LMHC are constructively working together for a harmonisation on issues that are important for the trade and consumers,” said Dr Lore Kiefert, host of LMHC, summarising the achievements made at the meeting.

The LMHC draws on the individual experiences of its members with the purpose of creating a general philosophy for proper gemstone nomenclature and disclosure for laboratories, as well as initiating and suggesting “preferable” language to be used on their gemmological reports. Its goal is to achieve the harmonisation of language on gemmological reports.

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SA JEWELLERY NEWS – JANUARY 2019

NEWS

ISRAEL’S INTERNATIONAL DIAMOND WEEK TO BE HELD THIS MONTH Registration is open for the eighth International Diamond Week in Israel (IDWI), to be held from 28-30 January 2019 at the Israel Diamond Exchange. The event has become a staple on the global diamond calendar and attracts hundreds of international buyers from over 20 countries every year. The IDWI is held on the immense trading floor of the Israel Diamond Exchange. It will feature 200 Israeli exhibitors of polished diamonds, with huge amounts and varieties of goods on offer.

In contrast to larger trade shows, the IDWI is a boutique show, exclusively for diamond buyers, with minimal participation costs. Moreover, eligible buyers will receive three complimentary nights at a local hotel.

IDE President Yoram Dvash says: “The IDWI has become a tradition in the diamond world and each year it’s become bigger and more exciting. We invite you to join us, soak up the dynamism and energy, and do business.”

DE BEERS GROUP DESIGNERS INITIATIVE LAUNCHES SHINING LIGHT AWARDS 2018/19 The De Beers Group Designers Initiative has invited jewellery designers to participate in the 2018/19 Shining Light Awards.

The competition has existed for over 22 years in SA, almost 10 years in Botswana and Namibia and was launched last year in Canada. It is open to jewellery designers in the four countries in which the De Beers Group mines diamonds.

The theme for 2018/19, “Heroines and Heritage”, includes feminine elements that speak to women, evoke national pride and symbolise strength, heritage, wisdom and beauty.

“The Shining Light Awards have proven to be a valuable design platform to showcase talent and open opportunities for young people within the diamond sector and international markets. This is in line with the De Beers Group’s objectives on beneficiation through skills development of the youth,” says Stephen Lussier, Executive Vice-President of the De Beers Group and CEO of Forevermark.

Pat Dambe, Vice-President of Corporate Affairs & Government Relations: De Beers Global Sightholder Sales, adds: “We’ve just concluded roadshows to all four of the De

Beers Group producer countries, where we visited various universities to present to design students on the project and how they can become part of it. The reception was great. Over the years, we’ve seen high-quality submissions and we anticipate that this year, the response will be even greater. The De Beers Designers Initiative has created the opportunity for the Shining Light Awards winners to attend the Faculty of Design at Milan Polytechnic as part of the company’s youth beneficiation strategy. We’re very happy to have taken this forward into a scholarship programme to include Botswanan, Namibian, South African and Canadian participants aspiring to participate in the downstream of the diamond industry.”

Winners of the Shining Light Awards will participate in a 12-month apprenticeship programme in Milan and runners-up will win a three-month internship programme at Forevermark or a design programme at a local design school.

Entries are now open and will close on Thursday, 31 January 2019.

JEWELLEX COMMITTEE APPOINTS NEW CHAIRPERSON The Jewellex Committee appointed Lorna Lloyd as its new Chairperson. Rowan Jacobson, who has been on the Jewellex Committee for the past 10 years and has served as its Chairperson for the past eight, emigrated to Australia with his wife Cheryl at the end of last year.

“Rowan’s calm and balanced manner and his positive attitude inspired me. I always enjoyed listening to him talk about taking opportunities and seeking positive prospects during tough economic times. He was greatly respected by the jewellery industry and will be sorely missed,” says Lloyd, who also serves as the CEO of the Jewellery Council of SA. She has played a significant role in Jewellex’s progress and has been an active member of the team organising the event for the past 28 years.

THE PROTAGONISTS OF VICENZAORO JANUARY 2019 Among the global brands which will be present at this month’s VicenzaOro are Roberto Coin, Damiani, Fope, Crivelli, Leo Pizzo, Tamara Comolli and Djula.

Other famous names, who will exhibit for the first time at VicenzaOro January, are Alessio Boschi, Lydia Courteille, Mattia Cielo and Monica Rich Kosann. These designers were selected for The Design Room, the experimentation and creativity laboratory. Other renowned brands who confirmed their presence are Giovanni Raspini, Rue de Milles, Bronzallure and Crieri, who will be exhibiting in Look, the area specifically for brands that work on research, innovative design and cross-fertilisation with fashion to add value and charm to jewellery.

DE BEERS’ LIGHTBOX POPS UP IN NEW YORK Lightbox, De Beers’ lab-grown diamond brand, opened a pop-up store for four days at the end of November in New York for “Cyber Week”, an extension of Cyber Monday.

The 1,8 m2 shop at the Oculus, the World Trade Centre’s transportation hub, plaza and shopping mall, gave consumers an opportunity to experience the jewellery personally, the company said. It had previously only been available online.

Along with Lightbox’s fashion jewellery made from

SA JEWELLERY NEWS – JANUARY 2019

blue, pink and white synthetic stones, the store also featured a customised styling display, where customers could try on products from the collection, and an interactive video wall for taking selfies.

De Beers launched its Lightbox division in May to sell consumers synthetic diamond jewellery at a lower cost than most lab-grown diamond companies currently offer. Sales began on its e-commerce site in September. – Rapaport

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INTERNATIONAL FAIR

FOLLOWING THE SUCCESS OF THE VOD Dubai International Jewellery Show (VOD DIJS), which took place from 14-17 November 2018 at the DWTC, organisers are already looking forward to the next show, which will take place from 13-16 November 2019.

The hosted buyers’ programme saw international retailers and wholesalers being paired with exhibitors to ensure access to unique collections, competitive advantage and the chance to build new relationships in the industry. The 2018 visitor figures have affirmed the international influence of the show, given the presence of over 80 countries, with the UAE, India, Saudi Arabia, Pakistan, Russia, Kuwait and China at the top of the charts.

Some new entries from central Africa have been recorded as a result of a highly effective promotional roadshow focused on sourcing new buyers for the exhibitors.

Commenting on the conclusion of the four-day event, Show Director Luca Veronesi said: “The consolidation of the new format, which started last year and continued for this instalment, confirms it to be the most strategic, optimum and suitable one, considering the market dynamics. The impact of such a beneficial B2B and B2C showcase will provide a boost for Dubai’s jewellery industry, and that of the entire MENA region, going forward into 2019.”

Industry experts were present to tackle the highest-trending topics across the globe. Paola de Luca, the co-founder of Trendvision Jewellery + Forecasting, gave an overview of TrendBook 2020, unveiling an extract

The Italian Exhibition Group (IEG), with structures in Rimini and Vicenza, is the leader in Italy for organising trade fairs and one of the main European operators in the exhibition and congress sector. The group specialises in organising events in five categories: food and beverages, jewellery and fashion, tourism, hospitality and lifestyle, wellness and leisure, and the environment and technology. In recent

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Dubai’s premium jewellery event The VOD Dubai International Jewellery Show, an event organised by DV Global Link, a joint-venture company between the Dubai World Trade Centre (DWTC) and the Italian Exhibition Group (IEG), came to an end on 17 November after hosting local, regional and international exhibitors from 21 countries, showcasing over 25 000 jewellery pieces and holding valuable trade and exciting consumer lifestyle events. of its latest forecast for the upcoming seasons, consumers’ insights and product directions in diamonds, gemstones and gold jewellery. The International Gemological Insititute led a seminar on “Emeralds: A Royal Gem”, with the aim of deciphering the mystery and history behind this precious jewel and why women through the ages – from Cleopatra to the Duchess of Cambridge – have been fascinated by it.

In addition, The New Jeweller hosted the Middle East Jewellery Designers’ Forum 2018, which explored the “Era of Design”, with respected re-

years, the IEG has embarked on an important path of expansion abroad through joint ventures with local operators (for example, in the USA, the UAE and China). The group ended the 2017 financial year with total consolidated revenues of €130,7 million, an EBITDA of €23,2 million and a consolidated net profit of €9,2 million. In 2017, the group organised or hosted 50 events in Rimini and Vicenza, as well as 206 congress events.

source speakers discussing developments in design trends, the current value of design in the market now and how it will continue to shape, in particular, the future of the Middle Eastern gem and jewellery sector. Finally, the GIA gave an important talk on identifying synthetic diamonds.

The promotion of local designers also played an integral role in the show as the VOD DIJS, in collaboration with Dubai-based diamond studio 55FIFTY7, hosted an Independent Designers’ Space and Children’s Competition – two initiatives primarily focused on nurturing, enlightening and inspiring local jewellery talent. Organisers also proudly welcomed participants from Qelada, a government programme that provides an empowering platform for people to employ their creative talents in designing beautiful jewellery pieces. These proved popular and sought-after throughout the four days of the event. Overall, the visitors were treated to the most unique and latest selection of jewellery pieces, special offers and 19 glamorous fashion shows.

With many positives to take away from VOD DIJS 2018, anticipation is already building for the 2019 edition, which will be hosted at the Dubai World Trade Centre.

SA JEWELLERY NEWS – JANUARY 2019

INTERNATIONAL JEWELLERY FAIR CALENDAR

Make a date for 2019 Photo: Messe München

JANUARY 11-14

Malaysia International Jewellery Fair, Malaysia

www.mijf.com

18-23

VicenzaOro January, Italy

www.vicenzafiera.it

18-29

T-Gold International Jewellery Technology Show, Italy

www.vicenzafiera.it

FEBRUARY 3-7

Spring Fair International, Birmingham, England

www.springfair.com

8-11

India International Jewellery Show (IIJS) Signature, India

www.iijs.org

22-25

Inhorgenta Europe, Germany

www.inhorgenta.com

20-24

Bangkok Gem & Jewellery Fair, Thailand

www.bkkgems.com

26-2 Mar

HKTDC Hong Kong International Diamond, Gem & Pearl Show, China

www.hktdc.com

28-4 Mar

HKTDC Hong Kong International Jewellery Show, China

www.hktdc.com

Courtesy of Baselworld

MARCH 21-24

Istanbul Jewellery Show, Turkey

https://march.istanbuljewelryshow.com

21-26

Baselworld, Switzerland

www.baselworld.com

APRIL 19-22

China International Gold, Jewellery & Gem Fair, Shenzhen

www.shenzhenjewelleryfair.com

19-21

Gem & Jewellery India International Fair, Chennai

www.gjiif.in

MAY 4-7 Photo: Messe München

29-3 June

OroArezzo, Italy

www.oroarezzo.it

JCK Las Vegas, USA

www.jcklasvegasshow.com

JULY 9-10

Jovella Israel, Israel

www.stier.co.il

AUGUST 3-6

Malaysia International Jewellery Fair, Malaysia

www.elite.com.my

TBC

India International Jewellery Show (IIJS), India

www.iijs.org

SEPTEMBER 3-7

HKTDC Hong Kong Watch & Clock Fair, Hong Kong

www.hktdc.com

7-11

VicenzaOro Fall, Italy

www.vicenzafiera.it

International Jewellery, Gold & Watch, Portugal

www.eventseye.com

26-29

OCTOBER Courtesy of Baselworld

5-7

Jewellex Africa, Johannesburg

www.jewellex.co.za

DECEMBER 13-16

SA JEWELLERY NEWS – JANUARY 2019

VOD Dubai International Jewellery Show, Dubai

www.jewelleryshow.com

11

DIAMONDS

Diamonds: looking back and ahead

JUST AS 2018 WAS MARKED BY political uncertainty and unexpected geopolitical developments, 2019 is likely to throw up many of the same types of challenges which will impact the luxury sector. These include the issues of securing bank financing and synthetics. Last year also saw changes to the Guide to Jewelry of the Federal Trade Commission in the USA and the decision by De Beers to create a line of jewellery set with laboratorygrown diamonds.

It also became clear last year that diamond companies need to adopt Know Your Client (KYC) policies. KYC is required by banks to illustrate transparent business practices and is really the best way for firms to secure financing for their longterm futures.

Another issue which is by no means new, but received a lot of airtime in 2018, is that of responsible sourcing. This has become an industry standard which diamond companies across the diamond pipeline would do well to adopt as soon as possible – both for their own good and for that of the wider sector.

I was encouraged by the announcements on sales of diamond jewellery by De Beers and Alrosa, Russia's leading diamond

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Ernie Blom, President of the World Federation of Diamond Bourses (WFDB), looks back at significant developments in 2018 and shares what he thinks can be expected in this new year mining company. De Beers reported a record US$82 billion of sales last year, while Alrosa has reported rising quarterly sales in just about every region of the world.

Regarding the South African diamond industry, the situation remains tough, with a rapidly diminishing polishing sector and very difficult trading conditions. The domestic diamond sector has become primarily a rough trading centre, as is the case in several other formerly major diamond manufacturing centres, such as Israel and Belgium. We hope that we can partner with government to reverse the trend of the industry and help it grow again.

Looking forward to 2019, I believe that the strength of the American economy and the robust jewellery sales we saw

there last year will continue apace. China and India are also powerful and critical diamond-consuming countries and I expect that to remain the case as well.

Regarding the WFDB, we held the World Diamond Congress in Mumbai in October last year and came out of it refreshed and ready to face challenges. We have established a think-tank to produce ideas for taking the WFDB to the next level and what it can do to bolster the global trade.

We are by far the world's leading diamond industry body and we want to show this with innovative ideas and proposals.

SA JEWELLERY NEWS – JANUARY 2019

JEWELLERY

Jewellery: 2018, 2019 and beyond Lorna Lloyd, CEO of the Jewellery Council of SA (JCSA) and newly-elected Chairperson of the Jewellex Africa Committee, shares some of 2018’s successes, challenges and what is planned for the New Year.

THE STATE OF THE INDUSTRY in 2018 started with enthusiasm based on the country’s political changes. Very little tangible evidence of an upswing was apparent in the first six months.

However, in spite of a weak rand, a measure of optimism developed entering the festive season. The retail and wholesale environment is ever-changing and online trading continues to grow.

Despite Jewellex Africa 2018 being a smaller show, its exhibitors conducted good sales, with retailers preparing for the year-end expected increase in consumer demand. The Sandton Convention Centre (SCC) remains the preferred choice for exhibitors and buyers, being in close proximity to hotels, restaurants and the Sandton CBD. Jewellex 2019 will take place from 5-7 October at the SCC. Our aim in 2019 will again be to increase both exhibitor and buyer participation.

An opportunity will be given to retailers and manufacturing retailers to participate at

SA JEWELLERY NEWS – JANUARY 2019

a consumer show in 2019. Discussions are currently being held with Decorex and 100% Design to include a jewellery component.

Watch this space!

Chairperson Chris van Rensburg and his Vice-Chairperson, Nthabiseng Xaba, will resume leadership of members with the assistance of the board and CEO on all strategic platforms.

As the retailers are the largest division of the council, we will continue to give more consideration to their needs. In this regard, we have commenced discussions with insurance companies relating to the standardising of valuation practices. The institutions from which members receive preferential rates for processing credit cards are Nedbank and Diners Club.

Disclaimers have been recommended by the JCSA for members to include on their receipts and invoices in order to protect themselves from legal claims.

The JCSA once again participated in Wanted Watches, Jewellery and Luxury in October by means of a competition page, with the aim of promoting the council’s brand and our members to consumers. Although training opportunities were offered to our retailers, there was not much take-up and we attribute this to the tough economic conditions. A new project which the council is looking at in 2019 is a Professional Retail Skills Certificate, in which employers recognise staff for their skills in the retail environment.

Over the past year, the council embarked on a social media campaign with favourable statistics on consumer awareness on jewellery and the JCSA brand. Given the uncertain economic situation, the council has taken a decision to pause all spend.

Our involvement in the Security Initiative continues to be crucial. Crime is rife and the attacks on jewellery stores have intensified over the past few years. The more informed our jewel-

lers are, the better the measures they can take to preserve life and prevent robberies.

The Jewellery Manufacturers' Association of SA (JMASA) continues to offer the Jewellery Manufacturing Trade Certificate (JMTC), which is an industry-endorsed/certified test set up for the industry. The Professional Technical Skills Certificate has been offered for a year and is well supported. It recognises specific skills in the manufacturing industry. We acknowledge that a great deal of informal training takes place in the workplace and this certificate gives formal recognition and benefits both the employee and the employer.

The council made a submission to SABS relating to the ZA mark in September. Manufacturing jewellers are unable to add the oval around the “ZA” without distorting it, specifically on very fine jewellery. Feedback is awaited from SABS. Our manufacturing members participated at Department of Trade & Industry (DTI)-sponsored international exhibitions at JCK Las Vegas, Bijorhca Paris, JIS Miami and Jewellex Africa in 2018. We will again apply for funding from the DTI to provide these opportunities to our manufacturers in 2019.

The publisher of SA Jewellery News magazine has conducted monthly surveys for a year on behalf of the council among retailers, wholesalers and diamond traders with the aim of tracking what is happening in terms of jewellery and diamond sales, metal consumption and crime statistics in South Africa.

The new Mining Charter was gazetted in September and, despite working with attorneys and presenting a sound comment to the draft charter in August, the new published charter has proved to be unsound, with no apparent consideration of any of our submissions. This may have detrimental ramifications for the jewellery industry. The council will obtain a legal opinion in 2019 to determine the effects on the jewellery industry.

Any association is only ever as strong as the total sum of its members and we therefore invite you to participate and make use of the opportunities offered by the JCSA.

13

RETAILING

Four ideas to help you generate more revenue AS A RETAILER, YOU GO into everything you do for your business with a plan.

There are hundreds of things you have to consider. How is your time best spent? Are there certain things that influence customers to buy more? Will certain sales strategies be more effective than others?

You will quickly realise that finding the answers to these questions is anything but simple and implementing those successful strategies can be difficult. That is because everyone wants more high-value customers and profit for their retail business. There is a lot of competition out there. But in order to build a successful retail store, you have to have a successful sales strategy – or, rather, several sales strategies.

Software firm Vend is extending its growth into SA because of the demand it is seeing from local retailers. Its cloud-based point-of-sale and retail management software lets retailers run their business in-store, online and on the go, which includes inventory management, e-commerce, customer loyalty and reporting analytics. Higor Torchia, Vend’s Country Manager for Europe, Middle East & Africa, offers some ideas to help businesses generate more revenue.

What is a retail sales strategy?

Simply put, a retail sales strategy is how you plan to make more sales in your store. By now, you know how to order inventory and implement customer service best practices, but it is the strategic way you present your products that will set you apart from your competition.

To really succeed in selling pretty much anything, you need to sell the value of a product over the price. It is not about just putting up a “sale” sign and hoping for the best. It takes careful planning – and here are some strategies to get you started: 1. Upselling and cross-merchandising One of the most famous American phrases is: “Would you like to supersize your order?”

This is an example of upselling, in which you try to get the customer to buy a slightly more

14

expensive product than the one they were originally going to buy.

This can be effective because sometimes your customers do not know that a more premium product is available until you mention it, or they simply need to be told about what makes a certain product more valuable.

Just make sure that your upsells are related to the original product, so that the suggestion

SA JEWELLERY NEWS – JANUARY 2019

RETAILING

Deadlines: Setting deadlines for registering for an event or redeeming a promotion creates a sense of urgency. Your customers will be pushed to act before it is too late.

Limited quantities: Limiting your promotions to a set number of people also creates a sense of urgency and encourages your customers to purchase now, so that they do not miss out.

Qualifications: Making people meet a certain set of criteria – like a sale for teachers, for example, or store VIPs – promotes the feeling that since not everyone can have it, it must be more valuable.

makes sense, and be sensitive to the fact that your customers may be restricted to a certain price range.

You also need to ensure that your employees are trained to use these sales techniques properly. Teach them to look out for the customer’s best interests and have them upsell only if the product is a good fit.

In addition, you should create in-store displays that can do the cross-selling for you – for example, dressing mannequins in accessories that enhance their clothing.

Another idea is to put complementary products together.The top shelf showcases different brands of sunblock for kids, while the shelf directly below it has swimming diapers on display. Target knows that customers shopping for swimming diapers will probably need sunblock, so it puts the products together.

2. Flash sales Offering customers the chance to save money – but only if they act fast – is one of the oldest, but most effective tricks in the book. If a killer deal is only offered “for a limited time”, the customer fears that they will miss out on a bargain unless they buy immediately.

A flash sale can benefit a retail business in different ways. First and foremost, it gets people talking and attracts new leads, thanks to the hype. It also shortens the sales cycle, which urges people to buy, rather than procrastinating. As a result, a flash sale can turn a slow time of year into a profitable stretch. However, there is also the chance that you will attract only once-off bargain-hunters who have no intention of becoming long-term, fullprice-paying customers.

Here is a quick to-do list for when you are planning a flash sale: • Make sure you have a clear reason for the sale (eg, move excess inventory or attract new customers).

• Decide what products you will sell and how deep dis counts will impact profitability.

• Ensure you have enough in ventory to satisfy demand.

• Ensure your website can handle the traffic.

3. Exclusivity Whenever Apple announces a new product, people camp outside the stores for days because they know there will be limited quantities of an exclusive product. Since iPhones came out in 2007, they have been offered in limited quantities of stock – and people will do almost

SA JEWELLERY NEWS – JANUARY 2019

Sometimes it is not as much about marketing a product as about marketing a lifestyle. anything to be one of the first to obtain the latest model. This is a brilliant tactic, since just one product accounts for 65% of Apple’s sales.

You need to follow its lead by creating an exclusive product. For example, you could strike a deal with a designer to be the exclusive retail provider of one or more of their ranges.

This means you will not have to worry about being undersold by nearby competitors carrying the same products.

Studies have shown that limited supply in a virtual shopping environment leads shoppers to believe scarce items are more popular. As a result, they choose these scarce items, rather than widely available ones.

When it comes to your marketing efforts, there are simple tools you can use to foster an air of exclusivity: Waiting lists: Having individuals sign up for an upcoming offer or event ahead of time builds up the hype surrounding your product.

The added bonus is that this helps you build a mailing list you can use for emails to continue the relationship in the future.

4. Lifestyle promotion Sometimes it is not so much about marketing a product as about marketing a lifestyle.

One example is Lululemon Athletica, a yoga and exercise apparel company whose strategy is based on promoting its “Lululemon Athletica”- and “Ivivva Athletica”-branded products as necessary for a healthy, fun lifestyle.

The company reported sales of more than $2,7 billion in 2017 and in its annual report, the Chairperson of its board listed the following strategic pillars: • Driving innovation – our product pipeline is strong and we continue to scale our techni cal innovations.

• Expanding our global footprint – our store formats are nimble and we are in the early days of introducing Lululemon to our inter national guests.

• Growing our digital presence – the power of our digital ecosystem is just beginning to be fully harnessed.

• Investing in our people – we know that when our people thrive, our business thrives, and enabling this remains at the forefront of everything we do.

While you might not be able to expand your global footprint, you can expand your local one by driving innovation with your products, growing your digital presence and investing in your people to ensure that they all embody the brand and lifestyle you want to project.

Moving forward Whatever strategy you decide to implement, make sure you measure and track the results.

Your marketing campaigns are only effective if your business improves its bottom line.

Set measurable and specific objectives and employ the right tools to track your progress.

What do you want the end result to be? How can you use that insight to design your next campaign?

If something does not work, you can always learn from the experience and modify your next campaign.

15

JEWELLERY DESIGN AND MANUFACTURING

SA Jewellery News talks to Tessa Ngobeni, Centre Manager for the SEDA Limpopo Jewellery Incubator (SLJI) and Production Manager Siphelele Mangele about the skills and support the centre offers to SMMEs and students and attending the 2018 China International SME Fair.

THE SLJI IS A NON-PROFIT ORGANISATION based in Polokwane. It is a jewellery-designing and manufacturing centre established to contribute towards creating economic opportunities through developing and supporting emerging jewellery businesses from historically disadvantaged communities in the locality.

The SLJI seeks to reposition itself as a centre of excellence that is a recognisable and strong brand in Limpopo, throughout SA, the Southern African Development Community and, eventually, internationally.

The centre focuses on empowering blackowned businesses, transferring of jewellery skills and practical mentoring and coaching of

SMMEs to ensure the availability of properly skilled people for the jewellery industry.

Siphelele Manqele (36), who has assumed the role of Production Manager at the SLJI, has been with the jewellery incubation centre for five years. As a child growing up in the Lamontville township in Durban, Manqele loved jewellery and would wear any trinkets he could find, including the plastic rings from lucky packets. At high school, even though he began making his own jewellery from bolts, it did not seem possible to become a jeweller. Instead, after he matriculated, he worked in a clothing warehouse for two years.

He eventually enrolled to study jewellery design at the Durban University of Technology.

Tessa Ngobeni was born in Tzaneen (Motupa village). She developed a love for jewellery when she was a teenager and used to order dress-rings and earrings from Nizam's in Durban, selling them to friends and classmates at school. She also had a case of jewellery pieces that she used to wear for showcasing.

Ngobeni worked for Nedbank for 16 years before joining the SLJI as an Office Administrator in 2009. Driven by her passion for the industry, she underwent a management development programme offered by the University of Limpopo and in 2015, she was appointed the Centre Manager of the SLJI. She continued studying with the University of Pretoria, where she obtained her qualification in the Incubation Governance and Management Development Programme. This

A centre of

16

course played a vital role in increasing her effectiveness at the incubator.

When was the SLJI established and for what purpose?

Tessa Ngobeni (TN): It was established in 2009 to help create economic opportunities for developing entrepreneurs from historically disadvantaged communities in the jewellery industry.

As a jewellery incubator, what kind of skills and support do you offer to SMMEs and learners?

TN: We offer business support, business registration, compliance, access to market, technical training and mentorship to SMMEs. We also have a learnership programme and offer training in jewellery design and manufacturing to students.

Take us through your training programmes for SMME development.

TN: SMMEs are offered business, marketing, financial management, soft skills and technical training.

SA JEWELLERY NEWS – JANUARY 2019

JEWELLERY DESIGN AND MANUFACTURING

f excellence in Limpopo What have been the SLJI’s notable achievements since its inception?

TN: In 2012, we won an international award in Botswana. In 2013, the centre received full accreditation by the Mining Qualification Authority. In 2014-2016, our students participated in Thuthuka competitions, where they won a number of prizes. To date, 18 SMMEs have graduated from the programme. Since 2015, we’ve managed to maintain the QMS certification.

How can you assist informal traders in Polokwane?

TN: The SLJI’s door is open for them. We can help them get their businesses registered and become compliant in order for them to gain access to funders.

Who are the stakeholders involved in helping you making a success of this skills development centre?

TN: SEDA for our SMME development programme, the MQA for our learnership programme, the Limpopo Department of Social Development for tools and technological equipment, the Limpopo Department of Public Works, Roads & Infrastructure for our learnership programme, the Polokwane Municipality for access to market, the University of Johan-

SA JEWELLERY NEWS – JANUARY 2019

nesburg for metal casting technology training and the National Lottery Commission for tools and equipment.

You recently exhibited at the China International SME Fair. Did this opportunity open doors for the SLJI to the international market?

Siphelele Manqele (SM): Yes, I believe it did open doors and helped showcase our unique products to the world, which we hope will lead to trading internationally.

Take us through your day-to-day duties.

SM: I oversee the training of SMMEs and students. I prepare artisans for trade tests, mentor SMMEs in jewellery skills and production processes and quality-assure products manufactured in the centre. I also ensure that the manufacturing equipment is in order and attend to customer orders.

As a Production Manager, what did you look forward to most before visiting the China International SME Fair 2018?

SM: Seeing how visitors to the exhibition would respond to our jewellery products and techniques. Their reactions really inspired our creativity.

I believe the 2018 China International SME Fair did open doors and helped showcase our unique products to the world, which we hope will lead to trading internationally.

17

BRAND HISTORY

The discovery of a treasure Longines’ winged logo has been registered since 1889 and is still unchanged and used actively for the Swiss brand, which has a long and rich history and recently celebrated its 120th anniversary. This was marked by a search for its oldest watch.

THE APPROACH TO THE MANUFACTURING watch facility’s headquarters takes one across a long field which, in spring, is dotted with dancing daffodils. Longines is considered to be one of the oldest watch brands in the world.

Auguste Agassiz and his two partners were the founders of the company, opening a small watch shop in Saint-Imier in the Swiss Jura which specialised in a limited range of services. Their objective was to make and sell pocket watches with crown wheel escapements similar to those produced by the Swiss watch industry in general. These proved to be hugely successful – partly due to Agassiz’s contacts in the USA. At that time, watchmaking was still based on the établissage system, involving a service provided by farmers in the area who were unable to tend their crops in the long, harsh, snow-bound winters and were glad of an alternative occupation and source of income from making the watch parts to be assembled at the company’s factory. They proved to be highly specialised artisans.

The partners soon realised the advantages of housing all their artisans under one roof and erected suitable premises on the site – where the brand’s present-day headquarters are still located.

In 1854 Agassiz’s nephew, Ernest Francillon, took over the management of the company and instituted several changes four years later, including the streamlining operations in the manufacturing process. One of these was purchasing a property outside of Saint-Imier which was called “Les Longines” (“The Long Meadows”). Here he erected a factory in which he produced pocket watches named Longines.

The demand for these quality watches grew rapidly and Francillon realised that as it was intellectual property, it was important to protect his product against counterfeiting. He duly registered it worldwide in 1889, adopting

SA JEWELLERY NEWS – JANUARY 2019

the winged hourglass as its logo – which it remains to the present day.

In 1908, Longines produced the first ladies’ pendant watch and in 1911, this was followed by the first men’s collection, which gradually displaced the pocket watch.

By this stage, the brand had earned an international reputation.

The brand also developed sports watches – now considered to be Longines’ classic calibres in the watchmaking field. Chronographs appeared at the end of the 19th century due to the advancement in mobility through the introduction of trains, automobiles and aviation.

Decades later, aviation would provide a significant milestone for Longines: in 1919, the brand had become the official supplier for the International Aeronautical Federation and had been able to provide high-precision navigational instruments which enabled pilots to cross large bodies of water such as the Atlantic Ocean alone. The first to accomplish this was Charles Lindbergh on his epic flight in 1927 from New York to Paris.

In collaboration with Longines, Lindbergh produced an aviation watch which would allow any pilot to determine his longitude easily while continuing to operate his aircraft. He had been experiencing difficulty during his flights and was the ideal person to assist the brand in producing a watch that would solve this prob-

lem. The partnership resulted in a timepiece available to pilots. It was named the Hour Angle Watch, which referred to the time difference expressed in degrees that could be read off the outer bezel. To understand how this is used, one simply has to work out the Greenwich hour angle after a series of calculations involving the earth’s rotations.

At the end of 2018, a historical discovery was made by a watch collector in India who had entered a competition organised by Longines to locate the oldest extant Longines watch. A treasure from the past was found whose serial number in the watch records showed that it was made in 1867. The company is certain that this is the oldest known pocket watch and is proudly showcasing it as part of its heritage.

A timepiece made in 1867 was found to be the oldest extant Longines watch and is today proudly showcased by the brand as part of its heritage.

19

LITTLE GEMS

Fit for a queen Unlike the Crown Jewels, which may never leave the United Kingdom, according to English law, the personal jewels of the Queen are her own property. Alice Weil looks at the gems in her private collection.

ENGLAND’S CROWN JEWELS have historical importance which match their immense monetary value. Many have been bequeathed to Queen Elizabeth II by her relatives and she wears them on certain state occasions, such as the Opening of Parliament or coronations.

On other formal occasions, however, she wears her own jewels, which – according to a valuation some three years ago – include 98 brooches (an item which she is seldom ever seen without), 46 necklaces, 37 bracelets, 34 pairs of earrings, 15 rings, 14 watches and five pendants.

Some of these are heirlooms left by Queen Victoria or were presented to Queen Mary

20

(Queen Elizabeth’s grandmother) as a wedding present in 1893. A tiara made for Queen Mary, which can also be worn as a necklace, was given to Queen Elizabeth at her own wedding to Prince Philip on 1947. Another of her tiaras – one of the most recognisable items in her collection – was presented to Queen Mary as a gift from the Girls of Great Britain and Ireland and was then bequeathed to the present queen in 1953.

Tiaras are important royal jewellery items.

One made for Queen Mary by English jeweller Garard & Co in 1913 has 19 oriental pearls, each tied with a lover’s knot, and was worn by the late Princess Diana at her wedding to Prince Charles. After her tragic death, it was returned to the present Queen and was later worn by Kate, the present Duchess of Cambridge, at her marriage to Prince William.

Another tiara, produced

by Cartier in 1936, was a present from the Duke of York (later King George VI) to his wife three weeks before their coronation. It has a rolling cascade of 16 scrolls which converge on two central scrolls topped by a diamond. The tiara features a total of 739 brilliants and 149 baton diamonds. The present Queen received it as gift on her 18th birthday and later lent it to her own daughter, Princess Anne. It was also worn at the present Queen’s coronation by her sister, the late Princess Margaret.

A pair of earrings made for Queen Victoria in 1858 were a typical design of that era and each have a large diamond brilliant, as well as a smaller one in a large, pear-shaped drop. The drops were originally part of the Koh-i-Noor armlet, which had been made for Queen Victoria. She wore them with a matching necklace while sitting for a portrait by the then European court painter.

A 7,5 cm-long pair of chandelier earrings made by Cartier in 1929, purchased by Margaret Greville and named after her, were left to her great friend, the Queen Mother, in 1942. They were then presented to the present Queen as a gift when she became engaged to Prince Philip.

However, she was unable to wear them until she had her ears pierced – something which immediately caused a flood of British women asking their own doctors to pierce their ears.

Margaret Greville also left the Queen Mother 60 other pieces of jewellery she had bought from Cartier, including pear-shaped

20ct drop diamond earrings. These were borrowed by Princess Diana for her first official visit to Australia in 1983 and worn at a state banquet, together with a tiara from her own family’s collection. The earrings were passed to the present Queen after the death of the Queen Mother.

Centuries ago, Queen Anne – the last British monarch of the Stuart dynasty – did not have many jewels, other than a pearl necklace of gradated pearls with a pearl clasp which were said to have been presented to her by Prince George. Queen Charlotte, however, had a great collection of jewellery, including four pearl necklaces, all of which she wore for her coronation in 1727. Afterwards the finest of these pearls were selected to make one large necklace. In 1947, King George VI gave Princess Elizabeth this item and another necklace as wedding gifts.

A necklace given to the present Queen by King Khalid of Saudi Arabia contains both round and pearl-shaped diamonds. It was made by Harry Winston and was often borrowed by Princess Diana.

The Queen Mother, for her part, often wore a necklace owned by Queen Victoria which contains at least large 45 diamond collets.

An item in the Crown Jewels used since 1901 by every consort, in conjunction with the coronation earrings, is the coronation necklace made for Queen Victoria in 1858. It is 38 cm long and consists of cushion-shaped diamonds and the 22ct Lahore diamond as a pendant.

A flower brooch particularly favoured by the present Queen, in her personal collection, is one made by Cartier and containing pink diamonds – as well as 170 brilliant cut stones, 12 baguette-cut and 21 marquise diamonds – discovered by Canadian prospector John T Williamson in 1936 near Lake Victoria in Tanzania in a mine which he owned.

Another spectacular item is the sapphire brooch which Prince Albert presented to Queen Victoria the day before their wedding.

Two of several stones cut from the Cullinan Diamond, which the present Queen refers to as “Granny’s chips”, were presented to King Edward VII by Queen Mary. She then had them made into a brooch, with the Cullinan II hanging from IV. The diamond had originally been cut by Joseph Ascher. On a visit to the Netherlands, the present Queen wore the brooch in public, delighting the Ascher family.

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