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inside 19
OCTOBER 2008
28
49
19 diamonds forever
33 abc of xmas buying
REGULARS
Cutters have long experimented with the form of the diamond, so it is not unusual that the most treasured of gems is again experiencing reinvention. CARLA CARUSO reports.
Deck your selves with Christmas winners. Jeweller’s festive season buying guide is like a wish list – helping you to ensure your store is a one-stop shop for every Santa’s gifting.
28 sydney shines on
49 metal and manly
The 2008 JAA Australian Jewellery Fair Sydney saw the introduction of several crowd-pleasing initiatives that ensured the fair offered a serious value-add for buyers and exhibitors.
After years in the wilderness, male jewellery is attracting more attention, and this time it’s not only from the fashion forward. TALI BOROWSKI reports.
06 Editorial 08 CEO report 10 News 14 bulletin 17 cuts 53 work safety guide 57 tips on selling 58 real life 59 Management 61 calendar 62 Soapbox
Our front cover advertiser is Protea Diamonds. New to the Temptation by Protea collection is this diamond and tanzanite jewellery. For more information, phone Protea on 02 9267 5409 or visit www. temptationjewellery. com.au
Jeweller / October 2008 5
EDITORIAL
www.gunnamattamedia.com.au
Lead, follow or … The moment I walked into the JAA Australian Jewellery Fair in Sydney last month, something hit me: there had been a changing of the guard. It was a strange feeling because it was the day before it opened, so it was still being set-up, but the feeling was strong. The new layout of the fair meant that there was a huge foyer area inside the hall so when visitors arrived they could see directly onto the floor. And what struck me was that many Australian suppliers had broken away from the pack. I couldn’t help thinking that it was like a 10,000-metre race at the Olympics. Everyone started at the same time, and all the participants ran together for quite a while but, as the race progressed, a pack drew ahead of the rest. The main group stayed together and, at times, one or two ran hard enough to catch the leaders, but they fell back again. Along the way, various runners then began to fall away from the main group essentially splitting the race into three types of participants; the leaders, the main group and the wannabes or weaklings. The perception was clear this year: there is now a vast difference between the leaders of the Australian jewellery industry and the rest. I have been attending the Australian fairs for some years now, and I have watched them grow. I have also had the privilege of attending most of the great international fairs – Basel, Vicenza, Hong Kong and Bangkok – and, understandably, when it comes the quality of the stand presentation, Australia always fell a little short. But this year that had changed. We have now seen the industry change from a manufacturing-based supply model to a marketing-model. It’s almost like all the old stalwarts of the industry had gone – those who had their history in manufacturing. They have been relegated to the back of the fair and replaced by the companies that excel in marketing – to both the retailer and the consumer. The former have become the weaklings of the 10,000-metre race, while the latter are in the lead pack. Interestingly, many of the exhibitors who said they did not have a good fair were, arguably, those that paid scant or no attention to the way visitors would perceive them. They relied solely on the quality of their product. One supplier told me he had a sensational fair last year but was disappointed this year. I looked around and the answer was obvious. The product was just as good as it always had been, their customer service was still excellent – it was the same company but the marketers with their superb stands had consumed him. He had fallen back into the main pack and was trying to compete with the leaders. There were many others like that, and if you attended the Sydney fair, you probably understand my analogy. (If you didn’t attend, you did yourself a disservice.) The fact that companies fall by the wayside is not such a bad thing – it happens in retail also. Without mentioning specific names, the leaders at the fair set their own pace and drove the herd, and that’s one of the reasons why this year’s fair looked world class. One leader tries to out run the other and the overall standard is improved. I used to be concerned when I would hear suppliers say they had a bad fair, but I am no longer worried. It can best be explained with another analogy – the Buffalo Theory. Yes, that’s another story entirely, but I do recommend you “google” it. Cheers to all those who had a great fair t
6 Jeweller / October 2008
EDITORIAL Editor Coleby Nicholson Assistant Editor Bianca Mangion Sub Editor Nick Lord advertising National Account Manager Gary Collins Sales Representative Leonie Osmond ADMINISTRATION Production Manager Maree Debrincat Graphic Design Maree Debrincat Accountant Paul Blewitt Photographer Charlie Suriano Subscriptions Manager Leonie Osmond Telephone 03 9696 7200 • Fax 03 9696 8313 Int+ 61 3 9696 7200 • Fax 61 3 9696 8313 Email ajed@gunnamattamedia.com.au
Jeweller is published by: Gunnamatta Media Pty Ltd Locked Bag 26, South Melbourne, Victoria, 3205, AUSTRALIA. ABN 64 930 790 434 ACN 118 566 715 On the Internet Visit our site at: http://www.gunnamattamedia.com.au to read a profile of the magazine and view a full list of Gunnamatta Media’s publications. Email editorial staff at: ajed@gunnamattamedia.com.au Email advertising staff at: ajsales@gunnamattamedia.com.au HOW TO REACH US The editor of Jeweller wants to hear from you. Send letters, questions and comments to: The Editor Jeweller Locked Bag 26, South Melbourne, Victoria, 3205, AUSTRALIA. or Email: ajed@gunnamattamedia.com.au Subscription inquiries For information on subscriptions or to notify us of a change in address contact us on Tel: 61 3 9696 7200. For back issues (subject to availability), fees may be charged. All material appearing in Jeweller is copyright. Reproduction in whole or in part is strictly forbidden without prior written consent. Contributions: Freelance contributions and submissions are welcomed by this magazine. No responsibility is accepted for unsolicited manuscripts, photographs and transparencies. The opinions expressed by contributors are not necessarily those of the publishers or the JAA. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.
CHAIR REPORT
Price matters but trust matters more It’s a question we’ve all asked ourselves at least once in our careers: “Does price matter?” Well, yes. Yes, it does. But it’s not all about price. Price alone is not the recipe for success. Thank goodness, you might say. In today’s competitive environment, one must offer far more than just the best price. If you rely on always having the best price you constantly walk the tight-rope of disaster. There will always be someone that will undercut you; trying to be the cheapest is a guarantee of failure. With internet sales soaring and major chains dominating, there is more than just hope for the independent jewellery retailers. In fact, they are the backbone of our industry and we need them to succeed more than ever. And they are in a strong position to make a huge difference. Let me explain: If you build your business on just having the best price, there will always be someone that will undercut you – you can count on that. You are probably thinking that great service will be the answer! Well, yes it is, but I think the “service” word is overused. Good service is far more than just greeting the customer with a smile and a little conversation. Retail is about providing an experience. For most people, it could well be the highlight of their day. With so much choice, why should they come to you? The main point to remember is that retailing should be like theatre. We have to create an experience that will be so good that the customer can’t wait to come back. In the next decade, we will see many new retailers come to Australia with exciting ideas, so the level of expectation from the consumer is continually on the rise. We have to offer the complete package. We have to actually want them to come in. Sounds funny but with paper work, pricing stock, doing budgets, BAS returns, staff training and other concerns, sometimes we get caught up with all the admin work that must be done and forget our chief objective. Our stores have to be spotless and so do we. Everything has to be priced and we should be proud of every item. The customer should feel important – certainly, at that time, they are the most important person in this mini world we have created around them. They can’t get that experience shopping on the internet. With jewellery as you know, the word “trust” is far more important than price, and this is where traditional retailers have another advantage over internet sellers. Once you develop a mutual respect for one another and a genuine interest, a win-win situation starts to occur. Customers then leave happy and tell friends and family about your business. The jewellery industry is one of only a few that can establish trust that lasts a lifetime, stretching across entire generations. As their family jeweller, you will have a chance to extend this relationship to their children and beyond. Jewellery is a gift of love and to be involved in that is a real privilege. Peter Beever Chairman Jewellers Association of Australia
8 Jeweller / October 2008
CONTACT LIST JAA BOARD Peter Beever Director (Chair and VIC/TAS) Francesca Antonaglia Director (Vice Chair and QLD) Selwyn Brandt Director (Finance and NSW/ACT) Albert Bensimon Director (SA/NT) Michael Dieckmann Director (WA) Peter Sherman Director (Opal and Gemstone Sector Council) Peter Beck Director (Manufacturers Sector Council) Colin Pocklington Director (Retail Council)
NATIONAL OFFICE Ian Hadassin Chief Executive Officer Heather Williams Membership and Administration Executive Megan Young Marketing Executive
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JEWELLER NEWS
Zamel’s convicted of false pricing Ascot Four, the previous owner of the jewellery retailer Zamel’s, has been convicted in the Federal Court, Adelaide, of making false and misleading representations about the price of goods. Following an investigation into Zamel’s Christmas 2005 catalogue by the Australian Competition and Consumer Commission (ACCC), the Commonwealth Director of Public Prosecutions laid charges against the jewellery retailer on 20 December 2006. According to an ACCC release, Zamel’s distributed 2.6 million Christmas catalogues in South Australia, ACT, Victoria, Western Australia and Tasmania. The charges were in respect of 11 jewellery items in the catalogue. Each of the 11 items featured a sale price next to a strike through price. The court found that Ascot Four engaged in conduct in breach of section 75AZC(1)(g) of the Trade Practices Act 1974, which prohibits false or misleading representations being made in relation to the price of goods, by falsely representing that it had sold each of the 11 items at the strike through price within a reasonable time prior to the sale period. Ascot Four was found to have falsely represented that the purchase of each of the 11 items during the sale period would result in a saving of the difference between the sale price and the strike through price. Justice Mansfield of the Federal Court specifically noted that: “having regard to the previous sales of each of the 11 jewellery items, the purchase of any of those 11 items during the sale period would not result in a saving to the purchaser of the difference between the sale price and the strike through price. In no case had the defendant sold any of those items… at anywhere near the strike through price”. ACCC Chairman Graeme Samuel said comparison price advertising is a common practice in a number of industries. “This conviction shows that advertised discounts must be real and not illusory. If you make a was/now price comparison or use a strike through price, you must have genuinely offered the product at the ‘was’ or strike through price for a reasonable period immediately before the sale promotion.” A further hearing will occur on a date to be fixed for the purpose of considering what, if any, further orders should be made and to determine the question of penalty – Ascot Four faces a maximum fine of $12 million. The current owners of Zamel’s, the Jewellery Group, aren’t connected.
10 Jeweller / October 2008
Calleija gets robbed Queensland-based Calleija jewellers has fallen victim to an armed robbery involving losses in excess of $1 million. According to police, two men approached the store in the Marina Mirage shopping centre, Main Beach, at around 5.45pm on August 12. Using tomahawks, they smashed through the locked door and forced store employees to the back of the shop before stealing necklaces, rings and bracelets. Detective Acting Senior Sergeant Peter Gray said the thieves knew what they were doing and probably already had a buyer: “They were only in there a matter of minutes. They knew exactly what they were looking for”. Anyone with any information on this incident is asked to contact Crime Stoppers on 1800 333 000.
Diamond cut expert Garry Holloway gets set to share his knowledge.
Diamond education course on offer The National Council of Jewellery Valuers is joining cut expert and Melbourne retailer Garry Holloway to deliver a seminar on diamond valuing and selling. The Dynamic Diamond Market: Valuing and Selling is scheduled for Sunday October 12, from 9am to 5pm at the Hilton Hotel, Brisbane. Aimed at valuers and those who work with diamonds, the lecture will include deciphering grading reports and diamond cut grades; diamond pricing; fluorescence in diamonds; internet diamond sales; and the future of bricksand-mortar retailing. Morning and afternoon tea is included as is a buffet luncheon and interested parties are urged to contact the NCJV on 07 3857 4377 to make bookings.
JAA Christmas in July a success Tiffany solid in Asia-Pacific Tiffany & Co. has attributed strong sales in the Asia-Pacific region to solid profit growth in its first half year. According to a report in Inside Retailing, the high-end jeweller announced a group-wide sales increase of 11 per cent in the second quarter and a 21 per cent increase in net earnings. “Sales in the Asia-Pacific region increased 17 per cent to $US214.2 million in the second quarter and 19 per cent to $436.3 million in the first half,” Tiffany said in a statement. Tiffany’s global retail operations “once again demonstrated the ability to generate strong operating earnings growth despite weakness in certain individual country markets,” said Michael J. Kowalski, chairman and CEO.
The JAA has proclaimed its Christmas in July function a success after the number of attendees doubled on last year’s figures. Over 150 people from various sectors of the trade attended the event, which was held at the Beaumaris Motor Yacht Squadron, Melbourne. Reflecting on 2007, organisers finetuned ideas to deliver a better night this year, and believe increased numbers indicate this was a success. Several auctions were held on the night, with proceeds going to the Juvenile Diabetes Research Foundation. Perry Hannah of All Gem Jewellers played auctioneer – encouraging everyone to open the purse strings. Over $6000 was contributed to the foundation, while Auscert Diamonds contributed the cost of the band. There were also four lucky draw prizes and 36 people won a bottle of wine courtesy of Peter Beck. Organisers hope to do even better in 2009, budgeting for around 250 attendees next year.
AGR Matthey closes down
Miller gets passionate about jewellery Sydney-based supplier Miller Diamonds has launched two new ranges of diamond-mounted jewellery at the recent Australian Jewellery Fair in Sydney. A market-ready range of Passion8 jewellery extends the group’s work with Passion8 branded diamonds, while branded line Gebrüder Schaffrath uses unique diamond settings. The Passion8 collection represents the diamond supplier’s first step into finished pieces and includes white and yellow gold and platinum rings, pendants and earrings set with Passion8 diamonds. In the Gebrüder Schaffrath collection, diamonds are held in place by a fine bar or two “special” claws that secure the top of the stones. The setting allows diamond movement, and is aimed at providing more sparkle than that of fixed diamonds, according to Miller Diamonds director Lonn Miller. He cited a positive response at the fair, saying, “We had a constant flow of customers and a constant flow of orders, meeting and exceeding all our expectations and targets. It seems the research that suggested we create a range of mounted and market-ready Passion8 Jewellery was correct. “The contemporary styles, fresh approach and the novelty of the ‘spinning diamond’ in our Gebrüder Schaffrath Jewellery line impressed all who saw it,” Miller continued, “and this was certainly also evident in the orders.” For the Passion8 collection, a new point of sale display has been developed to incorporate the jewellery, complete with Passion8 promotional videos.
JAA fair to re-brand The organiser of the JAA Australian Jewellery Fair has announced a new strategy and vision for future fairs. On the final morning of this year’s Sydney show, Expertise Events managing director Gary Fitz-Roy delivered a presentation to exhibitors outlining initiatives that will change the name, look and direction of the Sydney and Brisbane events in 2009 and all future fairs. “After monitoring world jewellery trends and other exhibitions around the globe, Expertise Events recognised an opportunity in the marketplace for two separate jewellery events: an elite international event; and an educational and forecasting national event,” Fitz-Roy said. The fairs have accordingly been re-branded in an attempt to “meet, evolve and anticipate market needs,” Fitz-Roy continued, “and to clearly define what they are about, who will be there and its distinctly individual significance and contribution to the continuing success of the industry”. The Sydney Fair will be repositioned as Australia’s only international jewellery event, aptly named the International Jewellery Fair Sydney (IJF). IJF will be held from August 30-September 1, 2009 at Sydney Exhibition Centre, Darling Harbour and has been described by Expertise as a fair bringing together “the best designers, manufacturers, suppliers and buyers of fine jewellery. It will be the only place in the nation to see the broadest selection of quality jewellery from international destinations, for conducting business with the most qualified buyers and sellers, and to gain exposure to industry training, market insights and world renowned jewellery feature displays and awards.” The new logo for IJF will incorporate the Southern Cross and the iconic landmark of the Opera House. The Brisbane Fair will be re-branded as the Australian Jewellery Fair Brisbane, and will be focused on the future outlook of the industry. Held from March 15-16, 2009 at the Brisbane Exhibition Centre, it will launch new ranges, introduce services and forecast trends in fashion and fine jewellery. This fair is designed for exhibitors and buyers to use the fair as their reference point for decision making in the jewellery calendar year. “With a wide section of content and more than 100 exhibitors set in the relaxed environment of Brisbane surrounds, it will be a fabulous networking opportunity,” Fitz-Roy said, adding, “The Brisbane logo will be savvy and understated, denoting the relaxed and social vibe of the event.” Two new websites are to be launched to reflect the individuality and re-branding of the jewellery fairs: www.internationaljewelleryfair.com.au and www.australianjewelleryfair.com.au. For a detailed look at this year’s JAA Australian Jewellery Fair Sydney, please turn to page 28.
AGR Matthey has announced it will exit the jewellery business. The precious metal refiner and jewellery supplier will no longer manufacture jewellery products in Australia or New Zealand. According to a press release from the company, facilities were maintained to complete orders received up to the closure of the business on August 22. Sales of local and imported finished jewellery continued in Australia until September 30. “In recent times, AGR Matthey has adopted a strategy and employed resources to rebuild its jewellery business on the back of imported jewellery sales, but the results did not meet the company’s expectations,” said AGR Matthey CEO JR Shepard in the release. “In addition, every effort was made to reduce costs and create a viable business going forward. Several external factors have also contributed to this decision, including contraction of large manufacturing jewellers relocating offshore, retail chains purchasing more product direct from overseas, rising gold price and slowing wholesale sales.” Sydney and Melbourne showrooms and the Melbourne Australian Bullion Company closed immediately after the announcement was made; however, the distribution centre will remain in operation until all finished jewellery orders are dispatched. AGR Matthey exhibited at the JAA Australian Jewellery Fair Sydney, offering imported jewellery at discounted prices. The company’s industrial business (medical and brazing alloys) will continue as normal.
Jeweller / October 2008 11
JEWELLER NEWS
Argyle opens tender for pink diamonds Thomas Sabo
Gen-Y still spending
Michael Hill enters US market Michael Hill International will make its debut into the US market after agreeing to purchase 17 Whitehall Jewelers stores. All conditions for its purchase in Illinois and Missouri in the US have been satisfied, and the company has taken possession of the stores in accordance with the terms of the agreement. According to a statement from the company, the purchase price is in the vicinity of $US5.5m and has been funded from existing bank facilities and cash on hand. The bulk of the purchase price has been paid. Michael Hill will buy the stores from embattled retailer Whitehall Jewelers Holdings Inc., which filed for bankruptcy protection earlier this winter. The purchase price is attributed primarily to the inventory, and amounts to Michael Hill paying 80 cents on the dollar for Whitehall’s inventory. According to a list provided to National Jeweler, 15 of the stores are located in Illinois, mostly clustered in and around Chicago, and two stores are in Missouri, in St. Louis and St. Peters. “This grouping of stores fits with our historical pattern of building a concentration of stores in new markets to leverage efficiencies in logistics, marketing and management supervision,” said MHI chairman Michael Hill. “The company does not expect these stores to achieve profitability for several years but believes the opportunity presented by the Whitehall Jewelers acquisition was one which would enable Michael Hill International to enter this market on favourable terms.” Brisbane-based Michael Hill operates 210 stores in New Zealand, Australia and Canada and reported a 20 per cent rise in net profit for the year. Michael Hill does not expect to return a profit from the 17 US stores for several years, but will be working to adapt its retail formula to the US market to position the stores for future growth, according to the release. Chris Ellis, of Boston-based investment banking firm Consensus Advisors, the firm that worked with Michael Hill on the purchase of these stores, said they are delighted to have introduced a new and highly successful retailer to the US market: “We look forward to Michael Hill’s continuing growth as it enters its newest market,” he said.
12 Jeweller / October 2008
Gen-Y consumers seem less affected by tougher economic times, with many increasing their spending habits, according to new research The Leading Edge. According to The Leading Edge Trends Index, a survey of 1,230 Australians aged 18 to 64, young people are less likely to be affected than other age groups by the current downturn. “By making an investment to better understand your consumer, you could turn the current economic downturn into an opportunity rather than a threat,” said Karen Phillips, Sydney CEO, The Leading Edge. “You could actually grow your market share.”
Bulgari to open Melbourne flagship Luxury brand Bulgari has announced plans to open its largest store in Australia. Following the opening of a Sydney flagship store on Castlereagh Street last year, Bulgari will relocate its current Melbourne store to 123 Collins Street this spring. The new Melbourne twin-store will be 400 square metres, over six times the size of its current Melbourne store, and will boast 10 giant external showcases. “The Melbourne twin-store reaffirms Bulgari’s position as one of the biggest luxury players in Australia,” said Francesco Trapani, Bulgari Group CEO, in a release.
The 24th annual Rio Tinto Argyle Pink Diamond Tender is currently circulating the globe. According to a report in JCK, the sale is due to be held in a secret location. The tender features 65 of the world’s rarest pink diamonds from the Argyle mine. With Argyle supply predicted to run-out by 2018, the rarity and exclusivity of these treasures has enhanced their image as both a key investment option and a jewellery must-have. This year’s tender features, for the first time in seven years, a heart-shaped pink diamond. There are also purplish reds, vivid pinks and rare violets. In total this collection showcases 62.46 carats of diamonds with 30 diamonds more than one carat in size. “The rarity of these gems and their intense colour and energy, continues to excite passions among all who see them,” said Raj Kandiah, general manager Argyle Pink Diamonds. Attendance to the Pink Diamond Tender is restricted to around 100 key clientele from around the world who will personally view the diamonds in a secret location in Sydney, Tokyo, London, Hong Kong, New York, or Perth. Due to the high security required, the exact location is not revealed to bidders until the very last minute. Bids are confidential and the names of successful bidders and the values achieved are not disclosed. Those that are successful will be notified personally in October. The pink diamond jewellery market has grown and is now worth hundreds of millions of dollars as the desire to own the rarest has sent prices skyrocketing. Pink diamonds are worth approximately 20 times of white diamonds.
Image courtesy of Rio Tinto.
New precious metals standards
4111
The winning entry of the 2008 ICA International Poster Competition.
ICA Poster comp enters fifth year The International Colored Gemstone Association (ICA) has launched the fifth ICA International Poster Competition, to be held in conjunction with the ICA Congress scheduled for May 5-10, 2009 in Panyu, Guangzhou – and China’s largest jewellery manufacturing area. According to the gemstone association, participation in the competition has grown to over 150 entries from nearly 30 countries. In organising the poster competition, ICA said it encouraged its members, as well as the coloured gemstone community at large, art students and graphic designers to find new, creative ideas, to promote the appreciation and trade of coloured gemstones through artistic poster designs. All the works from participants in the competition will be exhibited at the ICA Congress in Panyu, China and will be used by the association to promote the trade of coloured gemstones worldwide. Posters will be judged by ICA officials and members of the public. The three best designs will be awarded during the ICA Congress in Panyu in May of 2009. The deadline for submitting posters is December 31, 2008. Posters from previous competitions can be viewed on the ICA website at www.gemstone.org/congress/ dubai2007/gallery/index.htmlFor more information, email Yehuda Kassif on kassifus@zahav.net.il.
Standards Australia has launched new Australian standards for gold, silver, rolled gold and plated jewellery at the recent JAA Australian Jewellery Fair in Sydney in September. Delivering the announcement to interested exhibitors and buyers at the show, Adrian O’Connell, Standards Australia General Manager of Operations; Kevin Hitchins, Chair of the Standards Australia Precious Metals Committee and Diana Mead, Standards Australia Project Manager spoke about the need and development of the standards and what they meant for precious metal suppliers, retailers and consumers. Developed to stamp-out consumer confusion around jewellery markings, two new standards will provide the industry and consumers with a uniform guide to composition and marking requirements for jewellery made from precious metals, rolled gold, gold-plating and silver-plating. John Tucker, CEO of Standards Australia said the introduction of the new Australian Standards for the jewellery industry will provide a level playing field for traders and consumers: “By establishing an agreed set of symbols and markings to be used to describe the composition of jewellery articles, consumers will have a better understanding of the true value and quality of the jewellery they purchase.” Tucker said Standards Australia would be encouraging consumers to look for the symbols and markings when making purchase decisions, which are as follows: AS 2140 – fineness of precious metal alloys, specifies the composition and marking requirements of jewellery articles made from precious metals including gold, silver, platinum and palladium as well as jewellery items made from mixed metals. It establishes a consistent system of symbols to enable traders and consumers to recognise and understand the precious metal composition of articles. The standard also adopts the industry-accepted millesimal system to express fineness designation, rather than the carat system used formerly. Under the Standard, articles must be clearly stamped or engraved with the appropriate precious metal symbol and the minimum precious metal fineness using the millesimal system. AS 2335 – requirements for rolled gold and plated jewellery, defines composition and marking requirements for rolled gold, gold-plated and silver-plated jewellery articles including watch cases and watch bands. To avoid inaccurate marking of plated articles, AS 2335 makes use of a system of words and simple abbreviations – such as “gold-plated” or “GP” – to describe the composition of articles. Both standards were developed in consultation with key industry stakeholders, including the Australian Jewellery and Gemstone Industry z. The AJGIC represents a cross-section of the jewellery and gemstone industry including the JAA, the Gemmological Association of Australia, the Gold and Silversmiths Guild of Australia, the National Council of Jewellery Valuers and the Diamond Guild. When developing the standards, the committee considered areas of public concern including product integrity, gold quality, marking, local industry and consumer protection. “From the committee’s point of view, one of our goals was to give consumers a point of reference for the markings they see but may not understand on jewellery pieces,” said Kevin Hitchins, chair, Standards Australia Precious Metals Committee.
Pandora plugs Pink Ribbon Pandora is again supporting The National Breast Cancer Foundation this year, donating 15 per cent of sales of its specially-designed Pink Ribbon Beads to the organisation. Designer Lone Frandsen specially designed two beads for the cause, the first fashioned from 14-carat gold and pink sapphires, while the second is handcrafted in sterling silver with pink cubic zirconia. Frandsen said she wanted to create something “simple, feminine and that every woman recognised”. During 2007, Pandora raised $70,762, which was donated to the NBCF at the International Woman’s Luncheon in Sydney during March. When talking about handing over the cheque, Pandora’s Australian director, Karin Adcock said: “This is such a worthy cause and Pandora is fully-committed in its support in the on-going fight against breast cancer”. Pandora hopes to raising more funds in 2008/2009. The two beads are sold nationally all year round. Each year over 12,000 women in Australia are diagnosed with breast cancer. The National Breast Cancer Foundation is the only community organisation that awards funds specifically for research across the continuum of breast cancer.
New rep at Ronnie Shabtay Ronnie Shabtay Fine Jewellery has announced the appointment of a new sales representative. Josh Bohatko brings with him six years of full time sales representative experience within the jewellery industry, throughout Australia. “We at Ronnie Shabtay Fine Jewellery would like to wish Josh all the best,” read a release from the company. “We look forward to working with him and we know that our customers will too.”
Jeweller / October 2008 13
BULLETIN
Giant bangle An Indian jewellery manufacturer is claiming to have created the world’s largest gold bangle. Designed by Tata Gold Plus in Tamil Nadu, and measuring 1.8 metres in diameter, the giant bangle is fashioned from 24 kilograms of gold and forms a width of 15 centimetres. According to reports, it took 30 workmen approximately three weeks to design and create the massive piece of jewellery. The project was motivated by “national pride”, according to a statement from the manufacturer, and it has certainly attracted
Olympians go for jade Athletes at the recent Beijing Olympics won medals made not only from gold, silver and bronze but also from jade. For the first time in Olympic history, each of the 3,000 medals awarded to athletes bore bands of jade – a symbol of honour and virtue in Chinese culture. The gold medals incorporated white jade, the silvers were set with light green jade and the bronze boasted dark green jade. Hip-hop bling goes to auction A New York-based auction house has conducted an auction devoted to hip-hop jewellery Phillips de Pury and Co. held the Hip Hop’s Crown Jewels auction on October 1, describing the event as “unprecedented for a major auction house”. The sale involved 50 pieces of blinged-out jewellery that Philips called “complex cultural artifacts embedded with style, and indelibly marked with narratives of class, religion, materialism, and the American Dream”. The items once belonged to celebrities including LL Cool J, Tupac Shakur and Jay-Z, and were categorised into the Golden Era of hip-hop (1980 to early 1990s), the mid-1990s battle between East and
14 Jeweller / October 2008
ttention – making it into the Limca a (Indian) Book of Records. “I’m very proud to say that it’s going to have an entry in the 2009 edition which is our special edition, for being the world’s largest gold bangle,” said Arti Muthanna Singh, senior editor. “We’ve never had a record like this before.” The giant adornment has reportedly attracted crowds of onlookers to the jeweller’s showroom – all keen to get a glimpse of the mammoth bangle t
West Coast sounds, and hip-hop’s current mainstream age. Ancient gold ring discovered A treasure-hunter in the UK has used a metal detector to uncover a medieval gold ring, set with what is thought to be a black diamond. According to a report on Telegraph.co.uk, Hinckley resident John Stevens, 42, has not yet had his find valued, but expects it to be worth tens of thousands of pounds. The ring is engraved with lettering that reportedly indicates it is from the early medieval period, possibly the 11th century. Oyster yields 26 pearls A Lebanese woman has discovered 26 pearls in one oyster shell. While preparing the oyster to be served in her son’s restaurant in the southern port of Tyre, Amal Salha, 50, shucked the oyster to reveal a cluster of pearls. According to a report in The Age, Salha planned to submit the find to the Guinness Book of Records. The oyster had been harvested off the Lebanese coast. Diamond butterfly on display The American Museum of Natural History recently unveiled the Aurora Butterfly of Peace, consisting of
240 colored diamonds in the shape of a butterfly and weighing a total of 167 carats. According to a report in the New York Times, the collection was assembled over 12 years by Alan Bronstein and Harry Rodman and is one of three publicly-viewable coloured-diamond collections in the world – the other two include another from Aurora Gems and one owned by De Beers. So popular is the collection that the curator has labelled it “the highest slobber factor of anything in the gem house” with “nose prints and handprints” commonly found on the glass. “In the special exhibitions, we have had to move the colored diamonds because it would cause traffic problems,” said curator George Harlow. Beyonce’s behemoth bling Singer Beyonce Knowles has stepped out wearing a $US5 million diamond engagement ring. Pictured recently at the Fashion Rocks concert in New York City, the star showed off her 18-carat flawless diamond engagement ring, bestowed to her by fellow RnB singer and producer Jay Z. Paspaley contests tax Australian pearl king Nick Paspaley is embroiled in a battle with the NSW Office of State Revenue over
a decade-old tax bill. One of Australia’s richest men, Paspaley is refusing to pay an estimated $1.5 million in outstanding land tax on his Sydney harbourfront mansion, claiming the luxury property is his principal place of residence and therefore exempt from land tax. The case will return to the Supreme Court in November for the third time following a ruling last month in the NSW Court of Appeal. With headquarters in Darwin, the Paspaley pearl company is worth an estimated $620 million. Tennis racquet sparkle The US Open served up its share of bling but none shone brighter than Asia Muhammad, 17, who made her professional debut with a pink tennis racquet set with diamonds. Created by Michael E. Minden of Michael E. Minden Diamond Jewelers, Las Vegas, the sparkly racquet was pavé-set with 1 carat of VS diamonds forming the letter “A” as a gift to the emerging tennis star. “This is the first time I’ve put diamonds on a piece of athletic equipment,” said the creator. “We came up with a special process to affix it to the racquet and transfer the letters to a new racquet when Asia wears out the first one.” The diamond letters retail for $US1,750 (including installation).
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CUTS
Oval half moon
Oval
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The cut that ruled the WORLD: the oval cut There is no more famous oval-cut diamond than the 108-carat Koh-i-noor. GARRY HOLLOWAY, KATHRYN WYATT and KATHERINE KOVACS, GAA report. The oval cut is a variation on the round brilliant popularised during the 1960s by Lazare Kaplan, a nephew of Marcel Tolkowsky. This shape of this cut appeals to buyers looking for a stone that is traditional in appearance but not readily common; like other fancy cuts, it accounts for a small percentage of larger diamond sales. The classic oval cut will have the same number of facets as a round brilliant: a table, 32 crown facets and 24 pavilion facets with or without a culet. The usual placement of crown facets directly above the pavilion produces a “bow-tie” effect. This may be reduced or removed by the cutter twisting the pavilion facets one phase out of alignment. Other cutting variations are possible – one is having half-moon facets along the sides of the stone, resulting in less pavilion angle variation between the sides and the ends of the stone and improving both the
yield from the rough diamond and brilliance. An oval-cut diamond should be in proportion – not too short and squat, nor long and skinny. The general rule is that the length should be one and a half times the width. Taking this into account and calculating the optimum depth percentage – depth divided by width then multiplied by a hundred – one should expect a well-proportioned oval cut to be deeper than a round brilliant; however, table and depth percentages don’t seem to aid when selecting oval diamonds for cutting quality. There are many benefits for the consumer in purchasing an oval-cut diamond. Like the marquise, a ring set with an oval-cut diamond is said to lengthen the finger and make it appear slender, but the more traditional shape of the oval could give it broader appeal than that of the marquise as it has a very
good spread or size for weight. On the downside, an oval cut presents some design restrictions, as it is difficult to match with other cuts. In particular, care should be taken about placing similar-sized round brilliants beside an oval as the oval‘s lesser brilliance can make it pale by comparison. As such, when it comes to rings, oval cuts are generally employed as a solitaire, or teamed with other ovals, half moons or contrasting cuts like tapered baguettes in three-stone rings. Considered to be close to an egg shape, the oval cut is said to represent fertility. Perhaps Tom Cruise was aware of this when, after years of allegations regarding his fertility, he presented partner Katie Holmes with a 4.5-carat, oval-cut diamond ring. In return, Holmes gave Cruise a daughter. The most famous oval-cut diamonds is, of course, the Koh-i-
noor, a diamond so highly sought it was responsible for entire wars. Crossing from India to England during the mid-19th century, the 189-carat Koh-i-noor was re-cut by the Queen’s royal jewellers to the 108.93-carat it is today. It is set into Queen Elizabeth II’s coronation crown and rests for all to see in the Tower of London t
Oval twist
Jeweller / October 2008 17
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Cutters have long experimented with the form of the diamond, and so it is not unusual that the most treasured of gems is again experiencing reinvention. CARLA CARUSO reports.
T
he diamond did not require the assistance of De Beers and its marketing arm, the Diamond Trading Company, to elevate its status to the top of the gemmological tree. Nor did the public need to be told that a diamond was “forever” to be able to notice and appreciate the splendidness of its overwhelmingly superior attributes. Such “features and benefits” have always been apparent, and even entirely obvious. But, like most things in life, even dia-
monds need to continue to be reinvented and marketed to hold the gaze of the consumer. And, a ring of diamond jewellery suppliers and retailers nationwide are working hard to do that. Various styles, designs, fashion modes and combinations are being used to keep the stone relevant for today’s consumer. And, it appears to be working. Forever in style doesn’t have to mean forever the same. One such trend is that of micropavé, which
has grown more popular due to advances in technology and can be best described as the highly precise setting of very small diamonds using a microscope to create a honeycomb-like pattern. Tiny diamonds are set into the metal and many tiny prongs formed in the prototype or wax to create the look. This is unlike pavé, where holes are drilled into the metal and prongs formed by hand. Robin Sobel, the director of Sydney jewellery
Jeweller / October 2008 19
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supplier Protea Diamonds, says micropavé on a ring, for example, could be made up of 50 tiny stones, but not weigh more than three-quarters of a carat in total – an extravagant look without the price-tag. “We are already selling 60 per cent of our products this way,” Sobel says. “It’s a totally different look – you get a much nicer spread and it’s more durable. We have been getting a great response.” Protea is using micropavé on rings, bangles, bracelets and earrings. Also new for the brand known for Temptation by Protea – a mid to upmarket line – is to team diamonds with tanzanite. “It’s going to be the next sapphire,” Sobel says of the blue stone. Another Sydney jewellery supplier thinking outside the square is Miller Diamonds, which launched its new jewellery line at the Sydney fair. The Gebrüder Schaffrath range secures solitaires beneath a bridge of metal that runs
20 Jeweller / October 2008
across the top of the ring, holding the stone in place while, equally, “setting it free”, according to Miller Diamonds director Lonn Miller. “The diamond is not attached to the ring; it moves around. It is a revolutionary design created to make the diamond sparkle even more than usual.” As well, while diamonds have been traditionally linked with the wedding trade in Australia, Miller says today’s consumers are also looking for dress items: “Fashion jewellery, such as a pair of diamond earrings or a special diamond pendant, has gained ground over the years and it continues to show increasing strength from season to season,” Miller adds. Shahil Joshi, director of Sydney diamond and jewellery supplier Diasqua, agrees: “We do a lot of commercial jewellery for day-to-day wear. Seventy per cent of what we do is with white gold; 20 per cent with yellow gold.” Damien Bulian, the operations manager for Sydney supplier Jewelex, also says there is a demand for day-to-day and after-five pieces: “Initial pendants have been selling really well and we’ve also added a collection of ‘inside/ outside’ diamond hoops from one to six carats.” Other popular items for the brand include channel-set eternity bands and earrings – particularly huggies from .15-carat to .5-carat – and earrings and pendants with floating diamond settings. As for cuts, Melbourne wholesaler Metro Diamonds says round-brilliant remains the favourite, but princess and cushion cuts are selling strongly – the latter a close substitute for Tiffany and Co.’s trademarked Lucida cut
that’s a little easier on the purse. Bulian says emerald cuts are also in demand, while Metro Diamonds believes the market wants high quality fancy-colours: “There are better qualities being asked for, but there’s a shortage of supply,” said a Metro spokesperson. This is particularly the case for champagne diamonds – stocks of the once-common stones are running low and consumers in Asia and the Middle East are generally the only ones willing to pay the high prices for them. Sobel says pink diamonds continue to have a rosy outlook, but says: “Everybody loves pink diamonds, until they get the price – they’re generally about 20 times more expensive than the white diamonds.” Miller agrees colour is turning heads, particularly overseas. “Outrageous combinations of bright colours, like orange, are all the rage in Europe at the moment, but we don’t think this will filter through to Australia for some time yet.” One retailer who is giving colour a go is Sydney jeweller Venerari, according to owner Kingsley Wallman. “We specialise in coloured Australian gems, so we’ve been using natural coloured diamonds – either alone or mixed with other gems – in many of our designs. Like most jewellers, we always find the pinks are popular, but other less valuable or more unusual colours also work well, such as green, yellow, blue, black or cognac.” As is the case for any product, reinvention is the key to remaining fresh in the marketplace – as it is for diamonds. And, enticing Australian consumers to be more adventurous will only help to nudge the gemstone from the traditional wedding market into more regular everyday use t
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Diamonds:
marketing techniques O
ne of De Beers’ most effective m arketing strategies for the diamond has been promoting it as a symbol of love. Indeed, the company’s efforts are almost entirely why diamond remains the number one selling gemstone worldwide in both value and carat terms. The diamond giant has led other successful marketing campaigns too, including that of the eternity ring as a symbol of continuing affection in a relationship; the trilogy ring, marking the past, present and future of a couple; and the right-hand ring, being an independent salute for modern-day women, of Sex and the City era. RR Diamonds - A5.pdf
7/1/08
11:00:52 AM
Closer to home, jewellery suppliers and retailers have also been doing their bit to maintain the gemstone’s sparkle for consumers. Miller Diamonds director Lonn Miller says a multi-pronged approach to a new brand is best. Commenting on Miller’s new line of diamondmounted jewellery, he says: “We are providing the complete package – new point-of-sale, new advertising, new direct marketing print media and radio presence – all geared up for Christmas.” Branding has been integral for Sydney jewellery supplier Protea in promoting Temptation by Protea,
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according to Robin Sobel. “We have about 55 Temptation stockists already and they get the marketing – the point-of-sale material, the packaging, the window display, the certificate of guarantee and quality assurance with each piece, and the website listing.” More emphasis is also being put on internet marketing, Sobel continues: “Much of our funding is going into website marketing this year.” Sydney jewellery supplier Jewelex is also set to produce an online catalogue for the first time to showcase its products. Still, for some, the internet revolution has only hindered trade. Shahil Joshi, director of Sydney jewellery supplier Diasqua, says: “Instead of people going to retail shops, they’re going on the net – and they’re just looking at the prices. It has been going crazy in the past two years.” In this environment, Sobel says consumer education is even more vital in pointing out the other “C”s, aside from “cost”, and educating shoppers on the difference between real, treated and synthetic diamonds. “People don’t really understand what a synthetic, created or even a treated diamond is,” Sobel points out. “But, at the end of the day, they have to know these type of stones are only bigger, better and brighter for a short time.” Shane Decker, president of US sales academy Ex-Sell-Ence, reports in jewellery industry magazine Instore that there are many reasons why diamonds cost what they do. Consider the stone’s rarity and durability, exorbitant mining costs, skilled cutting, and antiquity and investment value: “As much as 250 tonnes of the earth’s crust must be removed to find a one-carat diamond – that’s a lot of dirt to find something the size of a large pea that weighs one-fifth of a gram,” Decker argues. Diamond cutting should also be considered a highly prized artform, requiring years of training and often being passed on from generation to generation. Of apprentice cutters, Decker says, “They’ll cut thousands of diamonds before ever touching a single one-carat stone.” Plus, he adds, diamonds are an emotional purchase – an investment – and this needs to be remembered. “A diamond is an investment in life, in someone you love.” And, who can argue with that? t
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Diamonds: an ECONOMIC VIEWPOINT L
ike gold, diamond prices have been on the up this year – the IDEX Online Polished Diamond Price Index reports prices have risen 12.3 per cent on a year-over-year basis. The biggest price hikes have been for large, high-quality diamonds, with between a 47 and 77 per cent rise for three to five-carat diamonds. Robin Sobel, director of Sydney supplier Protea Diamonds, says quality is indeed being sought: “While the chains are going lower in quality, the average person, who has $5,000 to $15,000 to spend, is buying a nicer quality. I’ve never sold so many high-colour/purity stones.” IDEX Online says the price rises are due to increased demand in several markets. American consumers may still buy roughly half of the world’s diamond jewellery, but new markets such as China, Dubai and Russia are growing. Business has still been affected by weak economic conditions globally though. Sobel laments: “Jewellery’s at the top of the pecking order in luxury. You might need a car; you don’t need a $10,000 piece of jewellery. Everyone is affected by the rising prices in fuel and food.” Still, Sydney jewellery retailer Percy Marks has got around the tightened purse strings with a new initiative – a diamond-upgrade program that allows customers to trade-up to larger diamonds over time. So, customers can buy a .25-carat piece today, and then trade that in and upgrade to a larger piece for a little more money when it suits them. zAs well, the opening of stores by giants De Beers and Hearts On Fire has shaken things up, including adding more competition to the overseas retail market and a heightened push towards branding. Ken Gassman reports in article for IDEX Online that branding brings integrity to a product: “Brands can drive consumers to specific stores,” he writes. “The growth of brands such as Hearts On Fire, David Yurman, Tiffany and others illustrates the power of House brands to create demand.” of Bond Some may have criticised
De Beers for repositioning diamonds as a fashion item, but Gassman says it has worked: “Far too many jewellers don’t understand those concepts and they continue to try to sell commodity diamond pendants and rings as ‘luxury’ items. Jewellery is neither a luxury product nor an investment; it is a fashion product and the industry must understand that the way it sells jewellery should reflect fashion.” De Beers no longer has such a stronghold over the industry. It once sold between 60 and 80 per cent of the world’s diamonds – today it sells around 40 per cent. More producers from varied locations have chosen to distribute the stone outside of the company, including those in Australia, Russia and Canada. Australia’s main gemstone mining industry product is the diamond, making up 92 per cent of the market. The Argyle deposit in Western Australia contains a large proportion of the world’s diamonds, including the famed pink varieties. Diamonds forever? They will at least be serving many generations to come in Australia – guaranteed t
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26 Jeweller / October 2008
Gemgold
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shines on The 2008 JAA Australian Jewellery Fair Sydney saw the introduction of several crowd-pleasing initiatives that ensured the fair offered a serious value-add for buyers and exhibitors alike. A World Famous Diamonds exhibit, a visit from legendary diamond cutter Gabi Tolkowski, seminars from international sales and management expert Brad Worthley, free buyer showbags, a prominent Design Awards exhibit, a visit from Pandora designers, the educative Visual Display Windows feature, and much, much more. And that’s not to mention the improved calibre of exhibits and the high vibe of exhibitors and bustling crowds.
Expertise Events CEO Gary Fitz-Roy welcomes buyers to the 2008 JAA Australian Jewellery Fair Sydney.
Phew! It really was hats off to fair organiser Expertise Events, who consistently seem to deliver a better show, year after year. BIANCA MANGION shares this year’s fair favourites.
Lara Hall
Improved exhibit presentation Many exhibitors at this year’s show made the extra effort to improve the look and feel of their stands. Some, like Jewelex for example, made the upgrade from modular to custom stand and the results paid off. Shail Joshi from Jewelex said the company had experienced great success this year and he attributed much of that to the presentation of the exhibit – a new, customised stand that formed an open horseshoe – inviting buyers to lose their inhibitions to come right in and have a look. Perfecting its customised stand was Pandora, who arguably took the crown for best looking stand at the show. Shiny white walls framed
28 Jeweller / October 2008
huge posters displaying Pandora models and jewels from the outside. Inside, polished floorboards paralleled a ceiling dripping with crystal lamps and a large chandelier that resembled the peaks of a lemon meringue pie. Islands of shiny white-polished cabinets housed the new Pandora range. Other exhibitors ensured they looked just as good as their stand. The Antonaglia sisters from Giovanni Imports wore a new matching outfit each day of the fair. Francesca Antonaglia said she believed it was important for exhibitors to be just as well-presented as their stand. And she certainly did a good job of this.
{ Fair report }
Lone Frandsen and Lisbeth Larsen join Pandora Australia managing director Karin Adcock at the Pandora exhibit.
A visit from the Pandora designers Denmark-based Pandora designers Lone Frandsen and Lisbeth∅ Larsen were present at the Pandora exhibit to chat to Pandora clients and witness the popularity and success of their designs in Australia. The talented pair behind the best-selling personalised charm bracelets, earrings, pendants and rings chatted to Jeweller about their experiences designing the jewellery in the Pandora range. They say the essence of a consistentlysuccessful design is adhering to a design ethos and ensuring it’s present in every piece. Pandora’s design philosophy? Always feminine, always soft and pretty. “It feels natural for us to design that way we don’t have to think too much about it,” Frandsen says. “We try to forget the parameters sometimes.” The designer believes Pandora jewellery is feminine and personal and this accounts for its popularity: “Because you can collect the beads, people like to collect and a lot of our jewellery
you can put together, you can match it in a set, you can switch it to different ways. You can change the look – you don’t have to use it the same way always. There are many possibilities,” Frandsen says. When Larsen questions Pandora’s popularity, she believes much of it came down to serendipity: “It came at the time it came,” she says. “But of course, if people didn’t like it, we couldn’t sell it. People like to be individual – to put it together in their on way.” The designers say they generally get free-reign when it comes to their designs: “We know that twice a year we have to come up with 20 beads and three to five sets of jewels and some rings and perhaps 10 different earrings but how they will look is our decision,” Larsen says. When asked about the pressures of continually designing a range as popular as the last, the designers say they try not to let those expectations impinge on their creativity: “We try not to think about it and just design,” Frandsen says.
The World Famous Diamonds exhibition The World Famous Diamonds: a collection of masterpiece replicas exhibit was a special attraction at this year’s show. Large light board posters on the outside walls of the enclosed exhibit proudly displayed images and information on some of the most impressive stones that awaited within. Stepping inside the dimly-lit room, you were instantly transported to a kind of nocturnal hiding place that offered repose from the fast-pace of the fair. Twinkling blue fairy lights adorned the ceiling, and walls of illuminated cabinets invited you toward them. Each contained a series of the special gems – sparkling irresistibly in the shining light. As viewers sauntered along the display, they were met with delight after delight of rainbow colours and crystalclear sparklers – each labeled with name and carat-weight. The Cullinan, the Koh-i-nor, the Tiffany, the Hope, the Star of South Africa, the Great Table, the Great Mogul, the Bazu and the Black Orlov are just some of the 28 famous diamond replicas that invited awe and admiration.
Jeweller / October 2008 29
{ Fair report}
A model shows-off the winning JAA Jewellery Design Awards ring.
Stacey Illman accepts her award.
Design Awards winner The Roy Warfold Trophy Jeweller of the Year winners of this year’s JAA Jewellery Design Awards were Stacey Illman and Thomas Meihoffer of Thomas Meihoffer Jewellery Design. Their coloured-stone ring features a large, ellipticalshape hawk’s eye quartz, perched atop swirls of 18-carat gold, scattered with brilliant cut diamonds. The beautiful chatoyancy of the hawk’s eye is offset with a crown of grain-set diamonds. A beaming Illman accepted the award, presented to her by legendary diamond cutter
Gabi Tolkowsky at the Design Awards presentation cocktail party on Tuesday September 9. Held at the National Gallery of New South Wales, The event attracted a full-house of designers, industry members, consumer press and glamorous models, swanning the winning pieces around the room for all to see. Vogue magazine editorin-chief and member of the judging panel Kirstie Clements presented the evening, as guests enjoyed sumptuous tapas and a never-ending stream of champagne and wine.
A visit from Gabi Tolkowsky
Jewellery Design Awards display
Legendary diamond cutter Gabi Tolkowsky paid a visit to the Sydney fair – delivering a talk to Nationwide members on how to sell diamonds and launching his latest fancy-cut diamond collection – the Seashell Collection. Tolkowsky is best-known for cutting stunning famous diamonds including the Pink Sunrise, the Golden Jubilee and the Centenary: a 237-carat D-flawless stone. His uncle, Marcel Tolkowsky, is credited for inventing the round brilliant cut. Jeweller spoke to Tolkowsky about his illustrious career and his passion for diamond cutting. The world-renowned craftsman describes polishing a rough diamond like a relationship – with the cutter needing to understand and familiarise themselves with the stone before they begin work on it: “I let the diamond look at me and I look at him,” he says. “I look at the shape, I touch it, I have it in my hand. It marries my hand very well because diamond is the best heat conductor so it doesn’t disturb. It is the same temperature. You can caress it. You feel it and you learn it. Then you have a challenge – what am I going to do with you? It’s happening with every diamond. Effectively, you get acquainted to a level that’s as if you live with your wife. It’s nearly the same thing. It is a relationship – it happens with all the diamonds you polish.”
This year’s show featured the JAA Jewellery Design Awards display, which sat prominently at the hall entrance, instantly attracting all who entered. A shift from the 2006 awards, where only the winners were showcased at the JAA stand, this year’s display featured all entrants – not just the finalists or winners. The double-sided cabinets boasted many beautiful pieces of exceptional creativity and ingenuity. It truly proved an inspiration for all members of the trade to witness the future direction in which design is headed. Particularly worth a closer look was Ramon Berlouis’ rEvolution2 neckpiece. The MDT Design employee’s piece utilised a geared motor system to turn the centre wheel of the pendant. Several loose diamonds were encased within, swishing around in circles with the motion of the wheel – a perfect marriage of design and function. OK Jin Jang’s Love Sydney was also quite breath-taking. The 18-carat white gold tiara was set with diamonds and South Sea and Akoya pearls and captured Sydney’s three iconic landmarks – the bridge, the tower and the opera house. The piece could be dismantled to form a brooch, pendant and chain and hair band.
30 Jeweller / October 2008
Visual Display Windows Visual Display Windows was a brand-new initiative of the fair organiser that saw participation from eight different suppliers, each with a creative flair for visual merchandising. Pandora, SJ Jewels, Miller Diamonds, K&A Jewellery, Grant Austin Display Packaging, Ice Grip Displays, Gem Network International Jewellery and Missie Von Lubbe all partook in the educative display that aimed to show retailers how to evoke their creativity to design a better front window. But it wasn’t just a display – there were also presentations from each of the visual merchandisers explaining how they designed their window, what materials they used and what their inspiration
and design philosophy was. All fair attendees had the opportunity to vote for their favourite window – with the winner being announced on final afternoon of the fair. SJ Jewels won the vote for its historical-themed display. Upon draped, coffee-coloured silk sat a selection of antique jewels in antique display boxes of silk and velvet. Sarah Jane Adams from SJ Jewels accepted the award – a glass trophy presented by Expertise Events. Adams explained her motivation behind the design, discussing the retailer’s need to personalise their windows to reflect the personality of the jewellery and present a story.
Showbags Jeweller distributed 2,000 free showbags at the fair. A specially-dedicated booth was set-up in the welcome foyer of the exhibition hall and buyers flocked to swoop-up their goodies. Each contained a Protea calculator set, an Opals Australia mouse mat, a Sekonda notepad, a Thomas Sabo cosmetic bag, a Pastiche bookmark, a Miller bottled water, Peter W Beck post-it notes, a Paterson Jewellery pen, an AM Imports earring holder, a HOJ loupe, Peekays tweezers and a Tik Tok lanyard.
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Christmas buying ABC of
Deck your selves with Christmas winners…fa la la la la, la la la la. Jeweller’s festive season buying guide is like a wish list – helping you to ensure your store is a one-stop shop for every Santa’s gifting needs.
b B is for brands Lovelinks by Pastiche
Pastiche continues to expand its Lovelinks collection. This bracelet features some of the newest designs for the festive season. Sterling silver and gold-plated links are coupled with the jingle bells of Murano glass beads. 02 9452 4981 Jeweller / October 2008 33
{ Christmas buying } C is for children Oro Bello Jewellery
The toddler range from Oro Bello includes the latest styles from Italy in 9 and 18-carat yellow and white gold. This new range has been designed and made in Italy with the Australian market in mind. 0413 859 206
c Peter W Beck
This collection of solid gold and silver bangles from Peter W Beck shows just a few of the children’s designs available. Each can be laser engraved with names or phrases to personalise the piece. All bangles are available in 9 or 18-carat yellow, white, and rose gold and sterling silver. 08 8447 1133
d
D is for diamonds A Wiener and Co.
Part of the Lauren Elyse Collection is this diamond jewellery suite, designed with a sensible price range in mind. 03 9654 1766
e 34 Jeweller / October 2008
E is for earrings Mark Milton
Mark Milton’s premium diamond range features these hoop earrings – displaying accuracy in setting, with high-quality diamonds set in 18-carat gold. There are four sizes available. 02 4367 3922
nd fine
{ Christmas buying }
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36 Jeweller / October 2008
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{ Christmas buying }
J is for jewellery boxes Cara Mia
The Alexandra Collection comprises Swissinspired jewellery boxes, lined with soft fabric. The pictured model features removable trays, divided compartments for necklaces, bracelets, earrings and rings, and boasts ample space. It also includes a CaraMia signature traveller and comes in brown, ivory and red. 02 9698 8500
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m M is for men Lindsay’s
Lindsay’s – the Australian distributor for Italian company Morellato – has just released a summer range of men’s bracelets. Available in three colours and many different styles, the bracelets feature stainless steel, genuine leather and diamonds. 02 9749 9477
o
O is for opals Opals Australia
Solid inlay Australian opal set in sterling silver, Phoenix encompasses rings, earrings, pendants, cufflinks, tie bars, bangles and bracelets. Complimentary in-store display material is available to approved clients. 02 9233 1288
for stockists phone +61 (0)8 8232 0220 www.orocollections.com.au
p
P is for pendants Jarass
Edge of Sweden from Jarass presents this sweetheart p 足 endant, featuring 14 hand-cut, premium, 足white-topaz stones channel-set in rhodium-plated sterling silver. Comes complete with a 42cm rhodium-plated, sterling silver, oval link-chain. 02 9436 2929
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Wellington Jeweller New to the Pica LeLa Collection is this champagne-coloured crystal, cut with diamond-shaped facets and suspended on a sterling silver pendant with a 45cm, 18-carat white gold-plated chain. 02 9264 5190
Worth and Douglas This 9-carat white gold pendant boasts fresh water, natural colour pearl and diamond at a TDW of 0.06-carats. 03 9317 0744
Osjag This new suite from the Breuning Silver Branded Collection features rhodium and rose plating. 02 9630 6619
Suite 708 level 7 250 Pitt Street Sydney • T: 02 9283 3349 F: 02 9283 3349 • info@orobellojewellery.com.au M: 0413 859 206 • www.orobellojewellery.com.au
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R is for rings Blue Turtles
Blue Turtles presents an array of sterling silver rings in different styles, textures and combinations of materials, including natural gemstones. 03 9557 9972
Peter W Beck Peter W Beck offers alternate finishes and expansive new looks in its Splits and Stacks range of ladies dress rings. The designs are fashioned from white, yellow or rose gold and can be worn individually or in a group. Some are also set with diamonds. 08 8447 1133 C
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S is for sterling silver Aztec
Aztec presents this organic bracelet and earring set – made in sterling silver and finished to a high quality. Aztec has a large range of classic bangles, necklaces with matching bracelets and earrings, pendants and cufflinks.
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02 9949 3002
For stockist enquires please contact Mahler Trading Phone 02 9326 1525 Email: info@mahlertrading.com.au
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V is for vintage SJ Jewels
The SJ Jewels Siren range draws inspiration from the strong designs of the Jazz Age of the 1920s. All the pieces feature onyx, coral or turquoise, and all are set in 18-carat white gold with diamonds. Each section of the earrings may be separated and worn individually – creating three pairs in one. 02 9519 5060
w
W is for watches Jarass
Skagen watches incorporate all the elements of Danish design. The new ladies rectangular timepiece features the subtle use of Swarovski crystals and mother-of-pearl dial, and is designed to reflect the Scandinavian Christmas spirit. All Skagen watches come with a threeyear international warranty. 02 9436 2929
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Y is for yellow gold Worth and Douglas
This solid bangle weighs approximately 13.5 grams, is hand engraved with an intricate pattern and finished with milled edges. 03 9317 0744
Candino Exclusive to Candino, this new series features Rhonda Swiss movement, which uniquely presents a large date along with day. This model is finished in copper-colour case but also available in other colour dials and in stainless steel case. Pressure tested to 100m and fitted with sapphire crystal. Also available in metal bracelets. 03 9589 6888
When quality matters Jewellery Packaging Custom Packaging Displays Diamond Displays Pouches Watch Winders Collector Cases
RC Collection RC Collection is a watch and fashion accessory wholesale company with sole distribution rights to Royal Crown Watch and Accessory. Its products are made using cubic zirconia, Swarovski crystal, freshwater pearl and amber. Most cubic zirconia watches and jewellery are prong-set for long durability and guaranteed against being fall-out. 02 9412 4360
13/70-72 Captain Cook Drive, Caringbah NSW 2229 Ph: (02) 9525 7815 Fax: (02) 9525 7816 sales@platinumpackaging.com.au www.platinumpackaging.com.au www.watchwinders.com.au
s a m t s i r Ch Security eans oney m m e r o With M money. re risk. o ut m ts, o s b n a mea s is l threa a a o s m in l t im a is r r it c s Ch , but umerou card uccess come n y d credit ports. more s it n a id g iqu in l t e d r e plif K LORD increas ies, sho IC r N e ? b e b r o a r aff aw such as your st e r A . d frau
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hen most people think of Christmas, they think of presents (gift-wrapped and in all sizes), of family, of friends and of food. For retailers, however, the merest mention of the event is enough to awaken them in the dead of night: Extended trading hours, hordes of customers, no space to move, no time to think. Forget about taking a lunch break! The festive trading period presents a lesson in coordination that’s sure to stretch even the most organised retailer to the limit, though with a little foresight and some basic planning, it’s possible to avert any of a number of regular problems and to significantly reduce your festive-season stress levels in the process. Constable Peter Stefaniw, a crime prevention officer with Victoria Police, believes that there are three basic steps that staff can take to ensure a safe and healthy workplace: • Identify the risk – staff should try to recognise potential risks ahead of time by being as observant as possible. • Assess the risk – once a risk is spotted, staff should assess whether there is a chance of injury if they are exposed to the risk. • Control the risk – when staff are sure that no harm will come from the risk, they can introduce measures that will eliminate or reduce the risk from occurring in the future. So what are some of these potential risks and how can jewellers go about controlling future occurrences?
Cash handling Christmas is a time for giving, which means it’s also a time for buying. As customers rush to prepare for this transaction-based celebration, businesses should be aware that the amount of cash held on the premises at any one time will rise as a direct result of an increase in purchase. Even prior to the commencement of trading each day, retailers will be required to allocate greater register floats as they prepare the stores for increased traffic. When one considers that many of these Christmas businesses will be offering various incentives to attract the cash purchase, one can start
{ Christmas }
to get an understanding of how much money will be changing hands. Stefaniw believes retailers increase the risk of theft through the ways they handle cash: “It’s obviously a period of time where a lot of money is turning over,” he says. “Retailers have to be aware that a very high percentage of transactions are made at a time like Christmas, so there will be more stock turnover – more cash moving – than at any other time. If poor cash handling is displayed, then it leaves a store exposed to armed robbery, theft and shoplifting.” The installation of clean cash management is crucial and retailers should work on a ‘minimum cash’ policy at all times. Regularly throughout the day, empty the cash register of surplus funds, retaining a float that is commensurate with the size of the business. Never should a register be permitted to fill with cash. Ensure that money is never counted or handled in public view. When the register is emptied, the manager should replace the entire till with a fresh till that has been loaded earlier with an appropriate float.
Overcrowding One of the most frequent causes of crime in stores over the Christmas period arises as a result of overcrowding. With a shop full of people, it can become extremely difficult for retailers and their staff to monitor traffic in and out of the store – but there are some other techniques that can be used to avert potential dangers. • Signage – Clear signage that declares the store policy on shoplifting and sales returns, or that the store is monitored, is perception driven. It won’t stop committed criminals but petty thieves are often deterred when they are constantly reminded of the consequences. • Body language – Simply pay attention to each customer. It’s possible in certain cases to identify a person who doesn’t seem to fit the environment or who doesn’t appear to have a purchase intention. • Cabinet control – Most, if not all, jewellers would lock merchandise in glass cabinets of some form but again, this system is only as reliable as those operating it. In an overcrowded and understaffed store, it is very easy for a staff member to forget to monitor an unlocked cabinet or to fail to lock it again before moving on to the next customer.
Additional staff Many businesses will need to employ additional staff to cater for the busier Christmas period, though time doesn’t often permit management to train new members as comprehensively as they would like. Tanya Bensimon, CEO of the JAA-approved training group, Corporate Training Australia, urges retailers to prioritise training to include issues that are fundamental to the business: “Certainly an employer should firstly initiate the new employee into correct customer service standards,” she says, “but also incorporate some basic point-of-sale skills also. You’d be surprised how many people don’t know how to count cash properly. Christmas is a very stressful period. Generally customers don’t have a lot of time. If new staff members are unfamiliar or slow around the point-of-sale area, then it reflects badly on the business. Start additional staff about two weeks earlier, prior to the rush, so they can familiarise themselves with the operations.” Christmas is a hectic time for retailers but there’s no reason why it shouldn’t be a successful one also. The issues raised here are but a few of the potential risks that confront retail jewellers in times of busy trade t tel: 02 9238 0288 fax: 02 9221 5556
web: www.barok.com.au email: info@barok.com.au
{ Men’s jewellery}
After years in the wilderness, male jewellery is attracting more attention, and this time it’s not only from the fashion forward. TALI BOROWSKI reports.
T
hroughout history, men have always been interested in jewellery: in ancient times, precious adornments were used to signify rank; in the Middle Ages, bejewelled weaponry and signet rings were the latest rage. But over the last hundred or so years, much of the jewellery available for men has inherited an effeminate connotation that the trade has worked valiantly to overturn. And such effort appears to be paying off. While men’s jewellery sales previously comprised a tiny fraction of the overall market, more than half of the retail and wholesale businesses interviewed for this story are reporting
Pilgrim
Teno from RJ Scanlan
Metal AND manlY double-digit sales. Furthermore, US jewellery consultancy firm Unity Marketing has reported that sales of men’s fine jewellery in the US virtually doubled in 2006 to $US6 billion. “There has been definite growth in recent years,” says Ciara Ryan, designer, Pastiche, where approximately 20 per cent of sales to retailers involve men’s jewellery. “We have seen strong development in product availability and the use of new materials.” And while sales used to be limited to on-trend urbanites, the tide seems to be turning in bringing male jewellery to the mainstream. Today, men are not only more aware of fashion trends, but
Jeweller / October 2008 49
{Men’s jewellery } Thomas Sabo
Morellato from Lindsay’s
Amber Centre
Diesel Jewellery
more conscious of making sure they adhere to them. As personal grooming has become a staple for the modern man, so too has personal adornment. “Today’s men are much more open to expressing themselves and wearing what they want,” says Phil Edwards, owner, Duraflex Group Australia, distributors of the Bonnard jewellery range. Jenny Dodd, NSW sales representative at men’s jewellery specialist Cudworth Enterprises, agrees: “Australian men are becoming more accepting of fashion trends, more fashionconscious and are coordinating their jewellery and dressing a little bit more.” The Australian jewellery industry has responded in kind, with designers and retailers more responsive to the virtually untapped customer-base at their fingertips. “Women have always had more available fashion and jewellery products,” Ryan says, “but we have now started to see a strong increase in the products presented to men in order to distinguish themselves and express their individuality.” Rings and cufflinks stand-out as the biggest sellers, with bracelets and pendants not far behind. And stainless steel remains the most popular material for men’s jewellery, not only because of its toughness and suitability for 24-hour wear, but also because of its colour. “Stainless steel is a good product for men because it’s a very durable product that doesn’t tarnish like silver,” Dodd says. “Guys will go for silver, there’s no doubt about that,” adds Christopher William from NSW
50 Jeweller / October 2008
store Christopher William, “but very few Emporio go for the yellow colour.” Armani Comfort is also important. Jewellery Melbourne design house MDT Design ensures men’s rings are a minimum of 1.8 millimetres thick – a factor that makes a big difference to the male consumer, whether they realise it or not, according to sales manager Randall Riley: “Anything we do for men is thicker,” he says. “That’s what helps make a lot of men comfortable wearing a piece of jewellery.” Designers and manufacturers are also employing different textures and metals to entice the new male consumer, with titanium, resin, carbon fibre and rubber all featuring heavily. Bruce Tully, creative director and partner from Queensland’s Depazzi Jewellers even goes so far as to use crocodile, stingray and snakeskin to adorn his designs, which he says are a big hit with his male customers. “We get a lot of demand from people that want something different,” Tully says. “We put the emphasis on the raw material and the solid structure and that’s definitely appealing to men.” Ryan believes that “there is a definite break between more traditional, male-specific jewellery like cufflinks, tie pins and watches and more modern items like men’s bracelets, pendants and necklaces”. She says it’s the older clientele that prefer the function-focussed traditional items, but it’s the on-trend items that are really seeing a sales surge. “Pieces no longer have to fulfil function in order to be desired,” she says. And it seems that the younger market has taken up this trend, having traditionally used jewellery to define their social circle, or as an expression of their personalities or moods. “Jewellery is used to identify with a specific group of people, which is particularly important and relevant when considering younger target
markets,” Ryan adds. For Edwards, the interest already being shown to German jeweller Thomas Sabo’s unisex range – available from Duraflex Group Australia and featuring skull rings and daggers – indicates that the market is aimed squarely at the 18 to 30 year olds; however, he admits it may change once the current generation of jewellery consumers gets older. “If they’ve been brought up to be comfortable wearing those sorts of things, then they may forever feel comfortable wearing those sorts of things. It may grow with that generation as they grow older,” Edwards says. Riley also notes that embellishment tends to be more popular with younger men, whether as diamond-set rings or colour embedded in cufflinks. And it’s not only design, but the jewellery’s position on the body that distinguishes young from old. “In my era, the gentleman wore a wedding band and on their little finger on their right hand, wore a signet ring,” Riley explains. “It’s the same now, only changed. Young men are wearing rings on different fingers and individualising the piece to them.” Marketing and advertising are also playing a part in encouraging male consumers to purchase jewellery for themselves. Once considered solely a female domain, men are now being targeted in fashion magazines, with the jewellery industry recognising the market’s sales potential.
www.cudworthenterprises.com
{ Men’s jewellery }
Police from Hagemeyer Lifestyle Brands
Thomas Sabo
“Worldwide, it has become more fashionable for men to wear jewellery. Where before it has been a little bit neglected, now there’s money to be made,” says Thomas Meihofer, director of West Australia’s Thomas Meihofer Jewellery Design. “The world’s becoming smaller, men are travelling more and they’re seeing that the European men are very stylish and very conscious of how they look,” Riley adds. Celebrity endorsement has also helped move men’s jewellery into the mainstream, with identities such as soccer star David Beckham making male adornment less frightening. “Men are no more immune to media saturation and the suggestive power of advertising than the average woman, so the increase in male-driven campaigns is certainly having an effect on fashion and jewellery sales,” Ryan says. So if the men’s jewellery boom has hit, does that mean the stigma of male self-embellishment has been eradicated for good? Not really, according to William. He believes that Australian men are still a fair way off their European counterparts when it comes to what they’re willing to wear in the public arena – a fact that will always restrict the sale of men’s jewellery in Australia. “Men in Australia tend to think wearing jewellery is a feminine thing,” he says. “They’re a little bit narrow on that level.” Edwards also notes that there seems to be a price-consciousness in the men’s jewellery market, with men disinclined to spend large amounts of money on themselves. “While men are willing to explore the concept of wearing jewellery, they’re aware of the price and they’re not about to tear up a lot of money on it. They’re buying it for today, not to have forever,” he says. Yet even if men don’t have, or won’t spend, the money on fine jewellery for themselves, or still aren’t comfortable with wearing it,
52 Jeweller / October 2008
Edge Of Sweden
Cudworth Enterprises
Meihofer believes adornment will continue to grow among the masses: “Guys are allowed to wear more stylish clothes, they can look after their skin, spend money on manicures, so why not jewellery?” As more and more men continue to explore their jewellery options and as more males accessorise their outfits with a ring or bracelet, chances are others will follow the emerging trend. “I think we’re in a society now where men can speak their minds or wear those sorts of things” says Edwards. “They’re more open to ideas.” The men’s jewellery market will most likely never reach the dizzying heights seen in women’s jewellery, but that doesn’t mean it can’t be a nice little earner for retailers looking to add something different to shelves this year. In doing so, look for liberal use of colour, titanium and varying textures and finishes to match this year’s trends. Additionally, natural materials such as wood and bone, as well as confident design, are sure to entice t
Italgold
{ Work safety }
Hitting the a new report on common injuries for the retail industry can help businesses prevent the pain. Nick Lord reports.
A
new study from the Victorian arm of national workplace safety scheme Worksafe has shed new light upon the type and manner of workplace injuries, offering preventative solutions that could save businesses plenty in lost productivity, wages and labour hours. Described by the authority as a study that “gives an industry-wide snapshot of how people get injured and what can be done to prevent these injuries”, Injury Hotspots targets the areas of the body most at risk across a wide range of professions, including agriculture, construction, food and beverage handling, and aged care services. Oh yes, and retail. While retail may not seem as risk-laden as other industries, various dangers and common injuries befall retail staff each year, mostly as a result of performing repetitive work tasks in awkward positions day-in and day-out. And while many injuries can be prevented with a little common sense, Injury Hotspots educates employers and employees alike on the most common hazards, eliminating some of the guess work in injury prevention. The retail industry is a large employer of people who are at a higher risk of injury. A heavy reliance upon young, inexperienced and casual staff – especially on weekends – means that the industry is more exposed to potential injury than it would be if it had a lower rate of staff turnover. “Employers need to consider age and experience as specific factors when identifying hazards and controlling risks in the
workplace,” reads advice from the Worksafe website, which lists the most serious injuries in the retail industry as sprains and strains caused by manual handling, back and shoulder-arm injuries. Other common causes include slips, trips and falls, as well as being hit by objects such as stock falling from shelves. It’s important to note that the report is an industry-wide guide and, predictably, each workplace varies dramatically in the type and rate of injuries its workers encounter. There will be businesses with experiences that differ greatly from the Worksafe findings, and plenty of stores that have had no injuries at all in the past year. This is great but it doesn’t act as a safeguard for the year ahead. By educating their staff on both the injury hotspots and Worksafe’s guidelines for injury prevention, businesses that have experienced injury can lower the chances of a repeat occurrence in their stores and ensure a safe trading environment for all involved. And those businesses fortunate enough to have avoided injury can use the information as a refresher course to ensure they remain injury free.
Jeweller / October 2008 53
{Work safety} How does it work? The injury hotspots on this page are based upon data collected from five years of WorkCover claims. These claims highlight the type of injury and the reason for its occurrence. “Hotspots are a measure of frequency not severity,” according to Worksafe. “Each hotspot shows the proportion of claims for injuries to that area of the body, and does not take into account the severity of the injury or the time taken for recovery.” Retailers may notice that the total sum of all featured hotspots does not equate to 100 per cent. This is because the Injury Hotspots chart shows the common sources and causes of harm. These are designed to draw attention to hazards and injuries that are “most likely to occur” and, therefore, do not reflect all known injuries in a given industry.
Psychological Emotional or psychological damage arising from occupational violence, stress or bullying and work pressure.
Shoulder
5% 13%
Tendonitis and muscle strain from lifting and handling boxes, equipment and products, and also from exposure to repetitive activities, such as work above the shoulder or at the extent of one’s reach.
Arm
6%
Muscle strain and tennis elbow from the heavy lifting and manual handling of objects and equipment (examples include scanning goods, stacking shelves and unpacking pallets).
8% 6%
Forearm/wrist Muscle strain from repetitive a ctivities or movements, (examples include scanning, pricing, keyboard or mouse work, and using tools). Fractures from falling from ladders or slipping on wet floors.
Back
28%
Back pain and muscle strain from lifting and handling objects and equipment, slipping on floors, and tripping over objects, stairs and steps.
Hand and fingers Cuts and open wounds from u sing slicing and cutting tools, knives, sharp objects and being caught by mechanical equipment. Muscle strain from repetitive hand actions, (for example, using scissors, product scanners or trigger tools).
8%
54 Jeweller / October 2008
Leg
6%
Fractures and muscle strain from tripping on uneven surfaces, falling from ladders or stairs, or slipping on foreign objects. Traumatic joint or muscle injuries from moving large objects and equipment.
Knee Joint or muscle injuries from lifting and repetitive activities, such as twisting, turning, kneeling or squatting. Traumatic joint/muscle injuries from a fall, slip or trip, (for example, slipping or tripping over objects, and falling from ladders).
Feet and toes
4%
Fractures and soft tissue injuries from being hit by moving objects, such as falling objects. Strain from standing on hard floor surfaces for long periods.
{ feature }
Solutions Psychological bullying
Develop and enforce policies and procedures to protect staff from robberies and other violence. Develop and enforce policies and procedures that address bullying, harassment and work pressure, including incident reporting and follow-up. Slips, trips and falls (incl. falls from height)
Ensure people do not work above areas that expose them to falls from a great height. Ensure that ladders are in good repair and are appropriate for the task. Platform ladders and mobile step platforms with mechanical hoists are best suited to the retail industry. Ensure ladders are used safely and maintain three points of contact at all times. Lacerations, amputations and fractures
Use safely-guarded mechanical cutting and chopping equipment. Ensure all machinery complies with the Australian Standard for machine guarding and ensure electrical and cutting equipment is de-energised before cleaning or maintenance.
Ensure that appropriate personal protective equipment such as steel mesh gloves are worn when using knives or when cleaning sharp equipment. Supervise new and young workers when working directly with, or near, machinery or blades. Use safety scissors or covered blades for cutting away packaging or wrapping items. Safety footwear may be appropriate for workers who work in storage areas. Lifting/handling of items, equipment or trolleys
Ensure building layout limits the need to push, pull or carry equipment or loads for long distances – clear paths allow deliveries to be moved directly to storage areas without trouble. Design and position shelves for easy access, and ensure counters are at waist height. Order stock in smaller containers that are easier to store and lift and use height adjustable trolleys to move stock. Ensure that trolleys and pallet jacks are easy to push – wheels and castors should be in good
working condition. Divide repetitive pushing and pulling work into smaller tasks and alternate among staff. Use lighter equipment, such as backpack vacuums to clean large areas. Repetitive work/awkward Postures
Carry out all tasks involving repetitive hand and arm movements between shoulder and waist height – height-adjustable workstations can help reduce back strain. Arrange customer service areas to limit twisting and bending by positioning frequently used equipment between shoulder and knee height. Design glass display cases to prevent over-reaching – sliding trays can improve access. Rotate workers and use regular breaks to avoid exposing them to tasks that are repetitive or work stances that are static. Avoid staff standing at service counters for long periods of time. Provide anti-fatigue flooring or matting for the workers to stand on t
A safer workplace identify the hazards In stepping towards a safer workplace, retailers must first identify the hazards in their workplaces – anything with the potential to cause harm. Some hazards will be obvious because they’ll be common to the industry, but others might not be. The best way to do this is to initiate conversation. Businesses are legally required to discuss safety in the workplace. Set up meetings with staff to hear and assess their concerns, take notes and remember to follow up to show them what has been done. Once a process of discussing safety has been established, working closely with employees on a daily basis to assess their regular tasks for potential hazards. Write everything down. As well as ensuring nothing is forgotten, documentation is a record of the business’ efforts to meet its safety requirements. For this reason, businesses should keep injury records. Periodically go through these records to see if there are any patterns emerging. They might show any problem areas. If written records of workplace injuries – and near misses – are not currently kept, start today. Remember that not all injuries are immediately obvious. Some are only discovered over time, such as illnesses caused by long-term exposure to chemicals and repetitive-use injuries. Look at the history of accidents in the retail industry. In depth information is available through
government websites such as that of Workcover. Also, much can be gleaned by talking to other traders in similar situations and sharing experiences. Finally, find out more about employer obligations for recording and reporting injuries. Take a look at what inspectors check when conducting a safety check and give a self-assessment before they arrive. assess the risks After making a list of possible hazards, assess the risks of each of those hazards, make a judgment about the seriousness of each, and decide which of them requires the most urgent attention. Take a close look at each item on the list. What is the possible outcome if things go wrong? Does the hazard present a risk of scratches and bruises, or is there potential for someone to be seriously injured or even killed? What is the frequency of this hazard? Is it encountered every day or is it something that only comes up now and then? This will give managers an idea of how much time they have to find a solution. If a solution is not readily available, is there a short-term fix until a permanent solution is found? Once a manager knows which hazards have the greatest potential to cause injury or disease, they should be ranked from highest to lowest priority and, again, documented.
Continue to review the hazard list, updating it regularly. Continue to hold meetings with employees to discuss safety aspects of the workplace and encourage them to continually monitor all existing hazards while making sure any potential new hazards are immediately identified. fix the problems Once hazards have been prioritised, move into the most important step of all – fixing the problems. The aim here is to remove all risks. For e xample, if there is a tripping hazard, modify or repair it. If a task is dangerous, look for ways to make it safer. There may be instances where it is not possible to remove a risk entirely. In these instances, the objective is to find a way to control the hazard. Perhaps this might involve altering the way a job is performed, changing work procedures, or perhaps providing additional training or protective equipment. Seek assistance Many solutions to workplace hazards are logical; however, sometimes there are no obvious answers. In these cases, the JAA should be the first point of contact for retailers as the association might have come across a similar problem before and have found a way to fix it. If no solution is available, contact Worksafe.
Jeweller / October 2008 55
The JAA AusTrAliAn Jewellery FAirs Are chAnging … in name, look and direction. every quality event needs to evolve to meet the needs of a changing market. The Jewellery Fairs have been rebranded to more clearly define what they’re about, who’ll be there and their distinctly individual significance and contribution to the continuing success of the Australian Jewellery industry.
IJF
INTERNATIONAL JEWELLERY FAIR S Y D N E Y
J AUSTRALIAN A JEWELLERY A FAIR Brisbane 09
August 30 – September 1, 2009 Sydney Exhibition Centre, Darling Harbour
March 15 – 16, 2009 Brisbane Exhibition Centre, South Bank
The JAA International Jewellery Fair Sydney (IJF) brings together the best designers, manufacturers, suppliers and buyers of fine jewellery, who expect nothing but the best for their business. It has an uncompromising attention to the quality of it’s exhibitors, and a focus on retailers and other professional buyers as it’s visitor audience.
The Australian Jewellery Fair Brisbane is where new ranges are launched, talented cutting-edge designers are showcased, services introduced, and most importantly trends revealed and interpreted for the Australian Jewellery market. It also provides fabulous networking opportunities in its more social, relaxed environment and Brisbane surrounds.
Registration for Sydney is FREE and easy. Go to www.internationaljewelleryfair.com.au
Registration for Brisbane is FREE and easy. Go to www.australianjewelleryfair.com.au
Be a part of the change. Mark the dates in your diary. Supported By:
Organised By:
+61 2 9452 7575
TIPS
Fire that customer Sometimes bad customers can be turned around; other times they need to be let go. Rick Segel discusses how to do both. There are really three types of customers: good ones, bad ones, and customers from hell. Everyone knows the type – they’re never ever happy and complain about absolutely everything. But isn’t it funny that, despite his s cathing opinion of your business, he continues to shop with you? Much has been written about the importance of customer retention. Business owners must attract, nurture and keep their customers; they must foster ongoing relationships with them that help instill store loyalty in their customers. And when they have done all this, they must protect their customers as though their very business depends upon it, as this is the key to retail success, right? Of course, retailers need customers and they need to retain as many of those as they can. But it would be pointless to attract the wrong types of customers into the store; they won’t buy and won’t ever recommend you to others. Furthermore, they could do damage to your store and your personal reputation by smearing it all over town. As well as ensuring their customers are well matched to their products, businesses must also ensure that troublesome customers are moved on. A retailer related a situation where a customer tried to use an expired coupon. When the store manager refused to honour the coupon, the customer had a “hissy” fit that disturbed other customers and disrupted the ambiance. Do you really want these people as customers of your business? No! But do you fire them? Do you stop marketing to them? A few years ago, a chain store in Boston actually cancelled some credit
cards because the customers returned so much merchandise. Alas, the tactic caused more problems for the business than it was worth as those customers went to the press and the negative publicity gave the store a black eye. There is a delicate procedure to firing a customer. This doesn’t mean it can’t be done. It can, and a business should not hesitate if that customer is endangering sales in some way. It just means that a business should proceed with some caution to avoid getting burnt. Now, you can ask a customer to leave the store, refuse to serve them, ask them to never return or cancel their credit card with your store. These are certainly ways of terminating the customer-store relationship but there’s nothing to suggest that there wont be some kind of fallout down the track. To take a subtler approach, a business can remove troublesome customer names from its database and stop marketing to them. It’s far less confrontational but it may not stop that customer from continuing to visit your store. Amazingly, if a c ustomer does continue visiting the store, it’s worth exploring the option of trying to turn that customer away from the “dark side”. Make a believer of them through superior customer service and the original problems may just go away. In fact, some of the best customers often start off as the worst for a range of different reasons: some need to warm up to people before they drop their protective barrier – once they realize you are OK, they fall in love with you; some are just really picky shoppers, very specific about what they want and what they expect
from you in return; and some have legitimately had a bad experience in your store and are waiting for you to recognise and rectify it. Maybe it was because of a personality clash between them and an employee; maybe it took some time to fill a special order or there was an argument over a return that they considered reasonable but you didn’t; maybe they just couldn’t find a parking space before they came inside. The bottom line is that they are miserable, unhappy, and they are going to take it out on you. The way you handle any conflict situation will determine the life of that customer with your business. If you can show them compassion and understanding, turn the negative around, and demonstrate to the customer that they can trust you and what you say, you will win that customer for life. Every business makes mistakes, but customers will forgive those mistakes if handled the right way. Conversely, customers are not always right, but they are allowed to make mistakes. Will there still be unreasonable customers? Of course, but businesses that spend more time focusing upon the good customers will be more productive and less fixated on the negatives. And that’s a good investment in any store t
The way you handle any conflict situation will determine the life of that customer with your business.
Rick Segel, CSP (Certified Speaking Professional), is a business author and speaker who has delivered presentations to over 1,800 audiences on four continents and 49 states. He is the author of Retail Business Kit for Dummies, Laugh & Get Rich, and his newest book – The Essential Online Solution: A Five Step Formula for Small Business Success. Visit www.ricksegel.com or email rick@ ricksegel.com.
Jeweller / October 2008 57
REAL LIFE
Good with the bad You have your good days, you have your bad days. This month’s question is: When have you been thankful for being in the jewellery business and when have you regretted it? RETAILER RESPONSES Some of the insane c ustomers make me regret being in the jewellery industry quite often! The reason I’m thankful for being in the industry is, you can have a really bad day and get one sale at the very end of the day, which can save your day. You can’t do that selling T-shirts. My attitude with opening hours is you’ve got to stick to them, because every time you open you can make a sale; if you have a quiet day and you go early you miss that chance of getting that sale at the end. I think it’s very important to put in the hours because then you’ll get the rewards. Anthony Walker, owner, Anthony Colin the Jeweller, WA I’m thankful for being in the jewellery business because it gives me the opportunity to meet an awful lot of nice people – that’s the big upside to it. Ninety-nine per cent of the people you meet in this industry are very helpful and they all go out of their way to do whatever they can for you. When I regret being in the industry? When I’ve been robbed! And when I get a call from the security company at 2 in the morning telling me that the alarm’s gone off. Dennis Coleman, owner, Balwyn Jewellers, Vic Most days I’m pretty grateful for being in it. There really aren’t many trades that allow you to be so creative. The way the customers receive something that you’ve made – with absolute happiness – just gives you a really nice warm feeling as
58 Jeweller / October 2008
well. There is a purpose to what you’re doing when you can make something and someone really appreciates it. I am largely very happy with the trade I’m in, although possibly when I break a diamond, I wish I wasn’t here! Tim Cunningham, jeweller, Baroque Design Jewellery Studio, WA When you’re handing over an engagement ring, and the customer is falling out of their tree with happiness, would be when you really feel glad you’re in the jewellery trade. Particularly when we’ve made it, when we’ve designed it with the customer, and then manufactured it and handed it over and they’re just totally overwhelmed. I don’t think there’s any down times, really. There’s an old Jewish expression that says: “Being in jewellery is like sex: even when it’s bad, it’s still good.” It speaks for itself when I’ve been in the industry 30 years and I’m still going. George Hogg, director, Bennettswood Design Jewellers, Vic I was thankful for being in the jewellery business when I bought an engagement ring for my wife! We sell opals to overseas tourists so I get to meet people of different nationalities. And with the jewellery we sell, we can make up a lot of different designs because we have many people from different countries, and people from different areas like different things. We can be much more innovative than if we were just dealing with one nationality. Peter Cherny, general manager, Altmann & Cherny, Vic Forty years ago, when I left school, I was thankful because I got an
apprenticeship as a watchmaker. I’ve enjoyed the interaction with the public most of all. I also enjoy the technical side of watchmaking and jewellery manufacturing, and the designing. I have two sons who are both jewellers and they’re doing manufacturing and repair. I had a two-year stint out of the industry after my six-year apprenticeship and then I went back to my first love, the jewellery trade. My ex-boss called and said, “Get back here and manage my store.” I’ve been here ever since. Ron Cummins, owner, Cummins Jewellers, NSW I most enjoy the art of jewellery making – making sure the customer likes what they buy, a piece you’ve made for the customer to wear – those are the rewards to be grateful for. The bad times are when nothing sells! Vartan Bakalian, jeweller / diamond merchant, Australian Diamond Merchants, NSW I never had any regrets. I was thankful right from the start, 20 years ago. I have enjoyed the opportunities, the people I get to meet and the lifestyle we have. The personal contacts with the clients and the way we communicate on a personal level rather than on a generic level. I appreciate the feeling of actually being a part of their lives, and being remembered every anniversary and every birthday. Joe Dipierdomenico, owner, Dia Oro, Vic
REAL LIFE is a new column designed to share the real life retail experiences of running a business and offer advice on the best approach for each scenario.
WHAT THE EXPERT SAYS Listen and learn When times get tough, your motivation levels can wane. But it’s so important that this doesn’t rub off on your staff. Consultant and behaviour change specialist BRAD WORTHLEY discusses how to keep staff happy at work. Praise and recognition are the number one staff motivators. There is nothing more important. Next, you have to talk and listen to them. Ask them how they are enjoying their job? What do they like about their job? What do they not like about your job? Just having that conversation will make the employee feel valued. Next ask – what can we do to improve around here? What do you think we’re not doing enough of? How can we serve the customer’s needs more? Discuss their feelings and ideas toward the business and their position there and just sit and take notes. Encourage them by saying things like: “Great idea”. Asking these questions will make staff feel like they’re in a partnership with you, rather than being dictated to by their boss. They will walk out flying high because they now feel like they are contributing to the company. They’re now contributors. Employees don’t care how much you know until you know how much you care. If an employee has a birthday, and they come in, take the time to put a banner up in the back room saying happy birthday, or bring in a cake with their name on it. What are you doing to create more value for your employees? Because we spend hours sitting around the boardroom table discussing how to create more value for our customers. But what about the ambassadors for our business – our employees? And the only person that knows what creates value for them, is the employee. So sit them down, individually.
Brad Worthley is the author of the book The Ultimate Guide to Exceeding Customer Expectations. For more information, go to www.bradworthley.com or email brad@ bradworthley.com.
MANAGEMENT
Price right, profit right Adopting a pricing strategy can be a confusing decision but when done correctly, profit takes care of itself. SUE HIRST from CAD Partners reports. There are various methods that businesses can apply when pricing their products: charge a bit less than or the same as competitors; charge a bit more than the product or service costs; charge as much as you need to cover costs – ie to reach the break-even point; charge what you think you can get away with; ‘cost’ the product or service and calculate a mark-up to provide an acceptable profit. Each of these approaches has merits and pitfalls that will be explored now. If a business chooses to set its prices according to those of its competitors, it raises certain challenges. The main problem with following competitors is that there is no information that shows how they calculated their price – the price you are copying. Can it be guaranteed that they actually know what they’re doing? Perhaps the price they are using is unsustainable, in terms of the costs to deliver the product or service. They may have cash reserves to cover the shortfall between cost and price and are using a low price to drive you out of business? They can ‘sit it out’ until you go broke trying to compete and collect all your customers later. By undercutting them, you may win sales from them in the short term but unless you develop a more accurate way of pricing, you could end up following them all the way to bankruptcy. Many pricing strategies revolve around charging ‘a bit more’ than the product costs. After all, one can’t go broke making a profit, right? But the question here is how much does the product or service cost? A mistake is to cost a product based solely upon its Cost of Goods Sold figure (COGS) as this
is purely the cost of getting the product or service out of the door. COGS does not include overheads such as administrative staff, advertising, office rent, stationery and many other hidden costs. So there is some danger in charging a bit more than the product or service cost; businesses run the risk of underestimating the actual cost and end up turning a loss! Any product price must cover the cost of overheads. The danger is that if a business doesn’t work out the ‘break-even’ situation – how much revenue is needed to cover COGS and overheads – it may be making a loss after paying overheads even if it is turning a gross profit on paper. It is an absolute must in business to know the ‘break-even s ituation’. There are plenty of retailers who like to push the price as high as they can; to charge what they think they can get away with. And there’s nothing wrong with this strategy. In a free-market economy, the customer will determine the suitability of any price and if they continue to pay for a product as its price rises, then one can argue that it is priced correctly. Perhaps the one risk facing businesses that adopt this pricing strategy is that they will push the price too high and damage the demand for their product. Once this happens, a business will need to drop its price to restimulate demand; however, this can even do further damage and give the impression that a product has lost value. And all because you went too high in the first place! Whichever price strategy one chooses, the central issue relating to price is the same: know the cost. In order to get the price right,
once needs to determine the cost of delivery of the product or service to customers, excluding overheads; know the overheads so that the ‘break-even’ figure can be calculated; decide how much profit is needed and calculate this into the price; know the margin and report on it regularly to ensure it is not being eroded by increased costs; monitor customer satisfaction levels following every price change – dissatisfied customers won’t pay any price; regularly review pricing and do small increases to cover increased costs. It is much easier to enact small price increases at regular intervals than large ones at irregular intervals. Pricing can be a very controversial subject. Many business owners fear increasing prices because they think customers will go elsewhere. But every business is in the same boat so where can a customer go to avoid a price rise? A price increase, combined with a small decrease in revenue, can have a positive impact for a business, especially on both profit and cash-flow. It is more difficult to increase revenue than to increase prices as many customers don’t notice a small increase and fully accept one to cover CPI rises. A business’ failure to incorporate this into price means it is absorbing increased costs and eroding margins t
business owners fear increasing prices because they think customers will go elsewhere. But every business is in the same boat.
Sue Hirst, Director, CAD Partners. CAD Partners are a mobile team of advisors who work with business owners to realise the maximum return from your business, both in cashflow/profit and personal lifestyle. Call them on 1300 36 24 36 or visit on the web at www.cadpartners.biz
Jeweller / October 2008 59
T h e 76t h N SW/ACT
JAA Charity Golf Day Tuesday, 28th October 2008
This year’s annual NSW/ACT JAA Charity Golf Day will be held at the scenic Long Reef Golf Club overlooking Sydney’s northern beaches. Don’t miss out on this opportunity to take part in a DHO5432
fabulous day, support a worthwhile cause - Juvenile Diabetes Research Foundation - and promote your business. To register email info@jaa.com.au or call 02 9262 2862.
CALENDAR
WHAT’S ON: NOVEMBER WED
THU
FRI
SAT
SUN
1
A prudent question is one half of wisdom.
MIDEAST WATCH AND JEWELLERY FAIR Sharjah, United Arab Emirates Expo Centre Sharjah T +97 1 6577 0000 info@expo-centre.ae www.expo-centre.co.ae 11-15 November 2008
19
26
2
Birthstone for November: Citrine
6
DUBAI WATCH & CLOCK FAIR Dubai, United Arab Emirates International Exposition T +971 4340 6888 info@intexdubai.com www.intexdubai.com 5-8 November 2008
12
TUE
3
4 Melbourne Cup 4 November 2008
- Francis Bacon
5
MON
7
Recreation Day Nth TAS 3 November 2008
8
9
10
THE 17TH VIETNAM JEWELRY FAIR Ho Chi Minh City, Vietnam Phutho Stadium T +84 88222 484 sjc@hcm.vnn.vn www.sjcvn.com 11-15 November 2008
20
27
CHINA INTERNATIONAL GOLD, JEWELLERY AND GEM FAIR Shanghai, China CMP China Limited T+852 25161677 salescjw@cmpasia.com exhibitions.jewellerynetasia.com 27-30 November 2008
14 WATCHES AND JEWELS Bratislava, Slovakia Incheba Jsc T +421 2 6727 1111 info@incheba.sk www.incheba.sk 14-16 November 2008
21
MALAYSIA INTERNATIONAL JEWELEX Kuala Lumpur, Malaysia Hongkong-Asia Exhibition (Holdings) Ltd. T+852 259 19823 F+852 25733311 hkexhi@hka.com.hk www.jewelryshow-hka.com 21-24 November 2008
28
11 DUBAI INTERNATIONAL JEWELLERY WEEK Dubai, United Arab Emirates T +971 43086952 info@jewelleryshow.com www.jewelleryshow.com 11-15 November 2008
JAA Queensland Apprenticeship Night 7 November 2008 Call JAA for more details
13
Family & Community Day ACT 4 November 2008
15
2008 CHINA INTERANTIONAL JEWELLERY FAIR Mainland China, Beijing Beijing China International Exhibition Centre T +86 10 8428 7328 fair@jewellery.org.cn www.jewellery.org.cn 11-15 November 2008
22
16
Victoria’s Annual Olive Festival 16 November 2008
GEM EXHIBITION Tampere, Finland Tampereen Messut Oy T +35 02 07 701 200 info@tampereenmessut.fi www.tampereenmessut.fi 14-16 November 2008
23
18
TOUR DEL GIOIELLO SICILIA ORO EXHIBITION Taormina, Italy Tour del Gioiello T +36 2 235 834 info@tourgioiello.it www.tourgioiello.it 14-17 November 2008
24
25 JEWELLERY ARABIA Manama, Bahrain Arabian Exhibition Management T +973 550 033 www.aeminfo.com.bh/ 25-29 November 2008
Sagittarius begins: Zodiac Stone: Amethyst
29
17
30
Sales tip of the month Going the extra mile Some simple tips to help raise the level of service in your store:
Devonport Show TAS 28 November 2008
• Greet every customer within 30 seconds of them entering the store. • Record important dates and events in your clients’ lives, and contact them – via phone, mail or email – to congratulate them on those days. • Develop “wish lists” for customers, making it easier for loved ones to buy gifts. • Make house calls to show key customers merchandise you think they would like, or even just your latest product offerings.
Jeweller / October 2008 61
SOAPBOX
A necessary evil Through careful customer management, retailers can get the clientele they always wanted, according to Chris Holdsworth, director, Holdsworth Bros. Jewellers.
E
CHRIS HOLDSWORTH Company: Holdsworth Bros. Jewellers Position: owner Qualifications: FGAA, Dip DT, FGA, NCJV Years in the Industry: 20
62 Jeweller / October 2008
very company, no matter how big, gives a preferential service to customers. Some of the better-run companies give preferential service to their good customers. Almost all give a preferential service to their most difficult customers. Who hasn’t stood behind the counter while a customer fires a barrage of criticism about why your jewellery shouldn’t be the price it is, how they can get it cheaper elsewhere, and why you should be giving them a discount – even after you have wrapped it and are just about to swipe their credit card – certain in their thinking that they are still paying too much? You’ve probably even succumbed and given them that discount too. And then your next customer is sweet as pie, makes up their mind quickly, pays full price for the item and even thanks you for helping them. Who wants the first customer when there are plenty of the second customers out there? And what are you doing encouraging the difficult ones by discounting, especially when they are never going to be happy about it anyway? Things differ slightly with repairs and remakes. The customer will create an impression upon asking you to perform the work: they may complain about the price, or how long it will take; they may ask if they can watch the work be completed so you don’t swap their stones, or even ask you to weigh the item before and after so you don’t take shavings. These are the difficult customers, the ones pressuring you for preferential treatment. Yes, they provide business but do you actually want it? What happens if
something goes wrong with the work you do? Okay, I admit it – not every customer is satisfied with the service we provide. We do a pretty good job most of the time, but there are exceptions. Dissatisfied customers can be broken down into three broad groups: customers who have been mistreated; customers whose expectations were higher than what was agreed upon; and customers who are simply never happy, no matter what you do. If you replace a diamond in a multi-stone ring, for example, a content customer walks away with no more trouble; however, the customer who feels mistreated will complain about the time it took, the customer whose expectations exceed the service will complain that you didn’t give her a free jewellery cleaning kit as a bonus, and the customer who is never happy will decide she doesn’t like the repair work and request a brand new ring! Those customers will do one of two things: complain and possibly never come back, or just never come back – and in both cases they’ll probably smear your business to their friends. There is not a lot you can do about the customer who doesn’t complain buyt “votes with her feet” and never comes back.You could consider follow-up calls on work you have completed to identify these people but, for the most part, they’re gone. There is, however, still a lot of room to move with those who do complain: you may take responsibility for the entire piece and fix any problems free of charge; you may take
r esponsibility of only the work you performed and fix that free of charge, charging for anything else; you may choose to blame the customer and try to charge them again for the work. If your policy is the latter, the jewellery trade – or any personal service trade – is not for you. But if your policy is to fix the work you performed free of charge, then go one step further and consider the customer. If they are a customer you want to keep, consider going above and beyond. So where does that leave you? You have probably lost a little revenue on the repairs from the difficult customers but you will have happier staff – they’re not fighting with customers – and you’ll be happier yourself – you’re not fighting with staff because they’re fighting with customers. Also, you’ve probably regained plenty of time as you are handling customers more efficiently and without time-consuming altercations. Try reinvesting this time and goodwill into your good c ustomers: write them a (handwritten) note suggesting a matching piece for their next special occasion; organise a VIP night; pre-buy them some good wine or chocolates; or, consult with your staff on how you can improve the whole jewellery experience for them. The good customers will look after you in return, and you will wonder why you didn’t spend more time on them in the first place. As for the difficult customers? Let ‘em walk t If you would like to appear in Soapbox and have your say, please contact the editor on 03 9696 7200 or email: ajed@gunnamattamedia.com.au
64 FULL PAGE ADVERT
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