One of the defining characteristics of the Australian jewellery industry is the number of family-owned businesses that continue to thrive.
The concept of being ‘family-owned and operated’ has largely expired in many other retail markets – but jewellery is unique. On both the retail and supply sides of the fence, many multi-generational family-owned businesses continue to shape the landscape of the Australian jewellery industry.
Running a family-owned business has always been a source of tremendous pride, and as is so often the case with anything associated with pride, great responsibility inevitably follows.
We're a third-generation business, and I often have that old cliché in the back of my mind – the first generation builds the business, the second generation grows it, and the third generation loses it.
Fortunately, so far, that hasn’t been the case. If anything, that saying has served as a reminder that longevity can never be taken for granted.
Our business was started in 1935 by my grandfather, Keith Paterson, with a speciality in opal jewellery. My grandfather was a World War II veteran and, based in Melbourne, a newcomer to jewellery.
He began as something of a tinkerer, working with pieces in his home workshop and selling them at the market in St Kilda. My grandfather retired in 1973 and my father, Ross Paterson, took over the business, and it was renamed Paterson Fine Jewellery. Dad slowly expanded the business to a bigger factory in Moorabbin. I was around three years old when Keith passed away.
I have strong childhood memories from around this time, being a kid and wandering around the factory in Moorabbin. I can remember picking up bits and pieces of jewellery and playing around with the tools, and the factory's managers and staff were always happy to show me around and explain how everything worked.
At one stage, Ross had as many as 50 employees at our factory in Moorabbin. That particular factory was a source of fascination because it seemed to have a huge number of places to hide and things to play around with.
Everything is bigger when you’re a kid. I still remember the Christmas parties and all the people who were part of the business.
Those are the kinds of memories that stay with you when you grow up in a family company. You don't just inherit a business, you inherit its people, culture, and history.
I moved to Thailand to establish our factory there in the mid-2000s, and formally took control of the business in 2020 – well-timed, with the COVID-19 pandemic kicking off.
Like many businesses, we've had to navigate changing markets, changing consumer expectations, and challenges that previous generations could never have anticipated. That's probably one of the biggest lessons I've learned. Every generation faces different circumstances, so simply doing things the way they've always been done isn't enough.
Our 90th anniversary came and went with little fanfare last year. This was mostly because we were too consumed by the day-to-day running of the business to reflect, but also because it's an odd anniversary to celebrate.
You're so close to what is probably the biggest milestone any business could reach, 100 years of trading, that it almost feels like the work isn't finished yet.
Looking back, I'm actually glad we didn't make too much of it, because we're in the middle of writing the next chapter.
We're undertaking a mini rebrand, including the introduction of a PATERSON brand of jewellery. There will be a new website, a new logo, and a fresh look, but more importantly, there's a different mindset. The same people are here, but we're changing how we operate to meet the needs of today's retailers.
We're refreshing all of our brands and introducing new lines targeting more upscale markets. Our classics – the bread and butter of the business – will remain, but after spending time listening to our retail partners, we're also confident the time has come to explore new opportunities.
The message we want to send is simple: we're not stuck in the past.
We're planning for the future. We aren't trying to sell retailers more stock; we're focused on delivering a complete service that helps them succeed. Relationships have always been at the heart of this industry – both within and outside the business.
It would be wrong of me to mention this rebrand without acknowledging Larah Brown's hard work on the project.
Since joining us as general manager, she's brought positivity, fresh ideas, and a willingness to challenge established thinking. Every business, no matter how long it's been around, benefits from people who can look at things through a different lens. Enthusiasm is infectious.
So, with all that said, what are the keys to becoming a multi-generational company?
Succession planning is critical. There should always be a clear path forward, and everyone needs to understand both their role today and where the business is heading tomorrow.
On an individual level, I also believe upskilling is essential. If you want to lead a business, you should understand every facet of it, from raw materials and purchasing through to manufacturing, logistics, and distribution.
Effective leadership comes from understanding the challenges your staff face every day because you've spent time learning those parts of the business yourself.
It's equally important to keep an eye on what's happening beyond your own four walls. Ours is a constantly evolving industry, with new technologies, manufacturing techniques, and changing consumer expectations emerging all the time. Some of those changes might not seem relevant today; however, they can have a significant impact tomorrow.
You have to be willing to get out there, learn and keep an open mind. It’s not a burden, so don’t delay - the alternative is boredom.
For me, that's ultimately what preserving a family business really means. It's not about protecting the past or resisting change; it's about respecting the foundations that previous generations built while having the confidence to adapt for the next generation.
Every business has its own story, but if you want your company to still be standing in 50 or 100 years’ time, you can’t just inherit a legacy. You need to continue building it.
Name: David Paterson
Business: Paterson Fine Jewellery
Position: Owner
Location: Melbourne, VIC
Years in the industry: 31
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