BECKS
advertisement
BECKS
advertisement
BECKS
advertisement
Goto your account
Search Stories by: 
and/or
 

Editor's Desk












Further, all too often claims are made that seem to be accepted as gospel when there is no evidence to support them.  | Shutterstock
Further, all too often claims are made that seem to be accepted as gospel when there is no evidence to support them. | Shutterstock

Many hands make light work

‘Stronger together’ is a phrase that’s been used aplenty. ANGELA HAN believes that it’s a term that exemplifies the work buying groups achieve.

It’s hard to believe that another two years have passed since Jeweller published its most recent Buying Group Report – it’s time for an update!

We first began closely examining Australia’s buying groups in 2007, however our first comprehensive State of the Industry Report followed in 2010.

Therefore, for 12 years Jeweller has acted as a journal of record by updating the data to provide the wider industry with useful and up-to-date information on which they can make judgements.

Over the years many people have suggested that it should be the role of the industry body – the Jeweller’s Association of Australia (JAA) – to maintain a complete database of industry participants and publish updated reports.

However, as Jeweller’s Report explains, the JAA membership has declined to fewer than the buying groups, and has fewer retail members than Nationwide Jewellers.

Further, all too often claims are made that seem to be accepted as gospel when there is no evidence to support them.

For example, one of our first reports was measuring the number of jewellery chain stores in Australia compared to the number of independent jewellery stores.

More than a decade ago there were claims that the chains were ‘taking over the industry’ and Jeweller remained agnostic on the matter. Indeed, we erred towards scepticism, as experienced media should be.

There are more than 1,200 jewellery chain stores in Australia and yet somehow, the classic independent family-run business still stands through the test of time. So, why is that?

The end result? Our research showed that jewellery chain stores were not taking over the industry and, in fact, they only represented 32 per cent of all stores.

It was another great example of why you should not believe everything people say. 

While many things have changed over the years – our sceptical approach has not. This year’s Report builds on the work of many before, and raises some important new questions about the future of the trade.

This update builds on the groundwork set by each previous Report, and upon reflection reveal some interesting
insights into the industry at large, especially within the fluctuations within the groups themselves.

Key findings

The data that was compiled since 2010 revealed that the membership and store count figures were subject to the rise
and fall of the market, much like the hundreds of businesses they represent.

In terms of the total membership, the industry peaked in 2010 with 669 members representing 860 stores over three buying groups at the time.

As at December 2022, the numbers had fallen to 547 members and 666 stores; if you looked at that 2010 V 2022 data alone, you might be excused for believing it paints an image of a trade in decline.

However, a deeper analysis of the statistics show an interesting fluctuation, because in 2012 there were 856 stores and in 2014 that number fell to 750. Only two years later in 2016, it rose to 830!

Likewise for membership to the three buying groups: 662 in 2012 became 577 in 2014, and yet by 2016 it was back up to 678 – larger than six years earlier.

The long-term data shows a clearer picture.

Further, a decade after the first State of the Industry Report, the industry is now served by a fourth buying group which surely provides another insight.

The Independent Jewellers Collective was launched in 2020 just before the pandemic hit, and has since gained 54 members comprising of 78 stores, proving that while overall numbers may be in a gentle decline, there are

Similar observations can be made by examining the change in the membership of Nationwide Jewellers. Total membership did decline during the pandemic; however, the ‘losses’ have been evenly spread across the states and territories and thus hints at an industry-wide closure of businesses rather than any kind of issue with relevance.still  opportunities out there.

Our research showed that jewellery chain stores were not taking over the industry and, in fact, they only represented 32 per cent of all stores.

It was a similar story for Showcase Jewellers, which lost 102 members since the ‘glory days’ of the 2000s, but remains well-poised as Australia’s second-largest group.

Leading Edge is the odd one out – having lost more than 40 per cent of its membership since the 2020 report.

What makes jewellers different?

All of this information leads us to question: Have you ever wondered why you still have a business?

While that might seem like an odd question, it’s a reasonable one.

For example, consider the many retail categories that have collapsed in recent years; from music and video stores to newsagents. And where are all the independent sports and hardware stores, and chemists?

Sure, the retail categories still exist, but the independent operator has left the stage, with national chains and franchising taking over by providing ‘more savings’ to the customer – be they perceived or actual!

There are more than 1,200 jewellery chain stores in Australia and yet somehow, the classic independent family-run jeweller still stands through the test of time.

So, why is that?

We asked ourselves this same question, as well as representatives from all four of Australia’s buying groups. The variety in answers will surprise you!

Oh, and before you dive into the contents of this month, how many independents do you estimate are still standing in Australia?

 

 

READ EMAG











ABOUT THE AUTHOR
Angela Han

Publisher  • Jeweller Magazine


Angela Han has more than a decade’s experience in the jewellery and luxury goods industry, having worked in all sectors from retail and manufacturing to design and supply. She has been with Jeweller for over ten years and has extensive experience in print and digital media publishing, business-to-business communications and strategy. 

SAMS Group Australia
advertisement





Read current issue

login to my account
Username: Password:
HRA Group
advertisement
Jeweller Magazine
advertisement
Jeweller Magazine
advertisement
© 2024 Befindan Media