Jeweller - July, Edition I 2020

BACKGROUND
STATE OF THE INDUSTRY
REPORT EXPLAINED
The first detailed analysis of the Australian jewellery industry was
published in 2003. It examined, and measured, the number of
jewellery stores in the major shopping centres in each state and,
interestingly, found that jewellers accounted for a ‘standard’ five per
cent of all specialty stores in major shopping centres.
The research also surveyed the number of jewellery chains and
compared their store count by state with state population data.
In the following years, Jeweller conducted ad hoc research and in
2007 we published a more comprehensive analysis of chain stores.
At the time, there were around 1,000 stores listed, however a need
emerged to refine the research by better defining store types and
product categories.
This process culminated in the 2010 State of the Industry Report,
published in December that year.
The 68-page 2010 report offered a definition of – and differentiation
between – independent jewellery businesses, fashion and fine
jewellery stores, chain stores, brand-only and flagship stores, and
finally jewellery kiosks.
Unsurprisingly, the jewellery industry has continued to evolve to the
extent that, in some ways, it’s a little like going ‘back to the future’;
the industry appears to be evolving full circle, back to its roots.
That is, independent jewellers are increasingly focusing on high-value
items – often custom-made jewellery for specific clients – along with
repairs and remodels.
In part, it’s a crucial move to differentiate from easily purchased,
low-value/low-priced items sold on the internet.
At the same time, a notable change from previous reports is
manufacturers altering their distribution models, becoming de facto
retail operations that compete with independent jewellers.
What began as high-profile watch and jewellery brands establishing
‘Flagship’ stores – purported to assist independent stockists – has,
in some cases, morphed into full-on competition.
As the industry changes in the coming years, there may be a
need to re-evaluate the definitions used in future State of the
Industry Reports.
Jeweller endeavours to maintain definitions where they are
appropriate and relevant to the current trading environment, and
to enable simple comparison with data in previous reports.
32 | July 2020