If you go back 30 years, Australian jewellery manufacturing was booming – we were all hiring people; new manufacturing plants were being opened; workshops were thriving; and, retail was making money.
At my peak, I had 24 people on the manufacturing site and another 50 contractors also getting work. I would even offer jobs to other colleagues in a sub-contractor arrangement. The industry was supporting each other and we were all making money.
Now, everyone is struggling. I am down to three people in manufacturing and my colleagues are either in similar positions or have closed completely and are now working in other industries. Retailers aren’t doing much better either. Profits are down and the local industry has been in decline for almost two decades!
The frustrating part is that Australia has always made good quality jewellery. In fact, it still is, so the product is not the problem. Early on in my time, I started exporting my work because Australian jewellery was considered some of the best, in respect to quality and design.
Asia, Europe and America were all impressed with our products and orders were coming in from all over the world. Equally, the local industry proudly displayed and sold Australian goods.
While I still have some export sales, the Australian market has sadly become flooded with cheap imported items. How could we let this happen?
I acknowledge that we have had a rise in labour rates in Australia through this time that has made the price point items from China and India look more attractive to the retailer, but this comes at the expense of quality and service.
This was amplified when the government dropped import duties. At one point, import duty was as high as 32 per cent, which helped Australian manufacturers compete against the low labour rates of other countries, but once they were down to about five per cent, it became hard to compete on price alone.
With free trade agreements and localised charges, we are certainly not competing on a level playing field. When you then consider the rise in the price of gold, you can clearly see a number of pressures affecting the industry.
A lot of these factors may be outside the control of our industry, but there is one sector that could do a lot more to help – the retailers. Retailers have dropped the quality of what they stock and it is hurting the entire industry.
A large amount of what you now see in retail shops is cheap silver and gold-plated imports. These items have always been stocked, but they used to be held out the back while shop windows were reserved for locally-manufactured goods of quality. Now, the cheap imports are at the front! It’s time for retailers to look up-market and recognise the opportunities. It doesn’t take that much more effort or time to service a client buying a $500 item than it does a $50 item, but it does put more money in the till.
Furthermore, the better quality and after-sales service of Australian-made jewellery can reflect well on the retailer. By selling a beautiful item that is manufactured locally, retailers heighten their image and differentiate from competitors. They will have fewer faulty claims and, should anything go wrong, can get efficient repairs from the very people who make the product.
This will also help build relationships that are mutually beneficial. At the moment, retailers rely on us to repair their cheap imports but don’t support us with the initial product – fixing a clasp on a $30 bracelet doesn’t make money for anyone.
This is a self-perpetuating problem. If retailers don’t support locally-made jewellery then more manufacturers will close doors, pushing prices up even higher.
This is an industry that was built on supporting each other, and I believe it can be that way again. Local manufacturers are looking for retailers to stock their products and generate movement in the industry again, and retailers will benefit from offering better-quality items at higher margins with personalised service and after-sales support. Everyone can win if we’re all on board.
Name: Aram Atakliyan
Company: Australian Designer Jewellery (ADJ)
Position: managing director
Location: Artarmon, NSW
Years in industry: 34