You'll never understand the universe if you only study one planet

If you don’t know where you came from, then you don’t know where you are. If you don’t know where you are, then you don’t know where you’re going. And if you don’t know where you’re going – you’re probably lost!

You’re holding the 2024 State of the Industry Report (SOIR), the most extensive study of the Australian jewellery industry to date. For a start, it records 3,501 jewellery stores, a significant decrease since the first report in 2010.

It also delves into the many reasons for the reduction – some insights will put you at ease, while others may ring alarm bells.

To the average consumer, our industry may appear straightforward and as simple as any other retail industry; however, insiders understand that it’s complex and challenging.

With that in mind, this issue of Jeweller is a meticulous examination of the many crucial categories within the industry, addressing everything from independent stores, fine and fashion chains, brand-only stores, buying groups, and industry associations.

Because of the many complexities and ‘grey’ areas, chances are the data is not flawless; a store could open or close the day after we end the data collection.

However, after a painstaking six-month process, I’m confident it’s as accurate as anyone could hope to be when assessing a constantly changing and evolving industry.

The purpose of this report is two-fold – it’s a historical document offering an in-depth look at the state of the industry, and a glimpse of the future.

With that said, what did we learn?

Check the pulse, stat!

Firstly, the objective of the SOIR is to establish how many jewellery stores operate in Australia and compare and contrast this information with data from the previous report in 2010, as a way to develop an understanding about what the future might hold.

It’s a measurement of jewellery store counts; however, ultimately, this is a quantitative assessment. While store counts tell us a small part about the ‘health’ of the industry; it’s only one component of a much larger picture.

After all, if jewellery stores are in decline, surely it would suggest the industry is suffering?

Quite the contrary!

It's arguable that in measuring a retail category's health, revenue matters most, not store count. Deeper consideration reveals that it’s even more complex than that.

In 2010, Jeweller recorded 4,225 jewellery stores in Australia, while as of November 2023, we recorded 3,501.

That’s a decline of around 700 stores in 13 years; however, should this decrease be worrisome for the industry at large?

Well, the fact is there were more than 700 closures, and possibly as many as 1,000; however, many new stores opened during the same period. The 700 is ‘net’.

It should also be noted we have re-defined a ‘jewellery store’, as explained on Page 27, which caused a higher reduction. Some of these businesses still operate today but are no longer defined as jewellery stores. 

With that said, even if the ‘real’ reduction is the decrease of around 500 stores - whether because of retirements, lack of profitability, end of leases or even the pandemic - does this indicate an ‘unhealthy’ industry?

What if the remaining 3,500 stores are enjoying improved sales because of decreased competition?

For example, logic dictates that if consumer spending is not in decline, it means there is more money for fewer stores, right?

If a greater percentage of the industry achieves improved sales, is it not an argument for a healthy industry?

However, any business person will tell you that an increase in revenue does not mean increased profit. The responsibility for a business’s profitability rests with the owner. 

Searching for answers?

It’s a timely reminder that everything is a matter of perspective, including store closures. For the jeweller who closed their business because of the pandemic, it was a time of anguish, frustration and maybe failure.

Conversely, for the bench jeweller who lost their job, it could inspire them to start a small business and launch their first jewellery collection; the pandemic forced their long-held aspiration!

It has been said that your perspective is your prison or your passport. The choice is yours!

And the only way to make sense of change is to embrace it, move with it, and join the dance.

This study attempts to explain the changes - or evolution - over the past 13 years. Why and how did the differences and/or trends come about? What is the result?

It is warts and all; it pulls no punches; however, every table, every statistic and every word is designed to allow the reader to draw their conclusions and, perhaps, apply some of the knowledge to their business.

It doesn't aim to offer solutions, only pathways towards them. Each reader can interpret the same data differently; therefore, it is up to you to assess whether the decline in store counts is a 'positive'or 'negative' for your business, as opposed to the broader industry.

Show me the money!

With that said, and for those hoping to learn more about the ‘health’ of the Australian jewellery industry in terms of revenue – there’s more to come.

For the first time, Jeweller is undertaking a new project - an equally comprehensive and exhaustive study - to answer the all-important ‘money’ question.

The project aims to provide a detailed analysis using a formulaic calculation of the annual retail turnover for the entire industry.

This data will be further divided into the average turnover for the categories detailed in this report – from the independent jewellery stores to the fine and fashion jewellery chain stores, large and small.

The research will also examine and estimate average category breakdowns – from gold, silver and diamond jewellery to watches and repairs.

Only then will we be able to begin to assess and record the health of the Australian jewellery industry.

The 'money report' should make for a fascinating read, and when paired with this State of the Industry Report, could finally answer the vital question: Is the Australian jewellery industry healthy?

Stay tuned!

STATE OF THE INDUSTRY REPORT
Published dec 2023 - jan 2024

A Snapshot of the Australian jewellery industry To better understand the findings of the State of the Industry Report, it's important to be aware of the changes to the industry and how they affect the methodology.	Independent Jewellery Stores: How many are there in Australia? The results are in and you will be surprised. How has the retail jewellery market fared over the past decade? How does it compare to other areas of the jewellery industry?	Jewellery Buying Groups: The ups and downs of this vital sector The nature of buying groups has changed significantly in the past decade and there's an important question to be answered. Can Australia support four buying groups?
Jewellery Chains: Stronger and stronger... for some! The fine jewellery chains have performed well over the past decade; however, consolidation could be on the horizon as the 'big fish' look for new customers via retail brand differentiation.	Fashion Jewellery Chains: Examining explosive collapses The past 10 years have been a rollercoaster ride for fashion jewellery chains, defined by rapid expansions and dramatic collapses. That said, the carnage continues in 2024. Is anyone safe?	Brand-Only Watch & Jewellery Stores: Is the sky the limit? The most significant change over the past decade has been the expansion of the big international watch and jewellery brands as they take control of their public perception via a vertical market model.
Births, Deaths & Marriages: See you on the other side! No market is immune to change and no one escapes death. It’s time to reflect on the 'comings and goings' of the Australian jewellery industry over the past 13 years.	Shopping Centre Conflict: Haven't you heard? We're at war! Australia’s shopping centres are a towering figure in the retail sector and fine and fashion jewellery stores have played an integral part in their speciality store 'mix'.	Jewellers Association of Australia: Where does the JAA go from here? It's been a brutal decade for the Jewellers Association of Australia and much of the damage has been self-inflicted. Worse, the JAA's missteps don't seem to end.
Jewellers Association of Australia: Does it represent the industry? As membership continues to fall, the JAA is increasingly seen as a club of like-minded people rather than a peak body.	Jewellers Have Their Say: Prepared to be surprised and intrigued! What do jewellers say about the past, present, and the future? A survey of retailers and suppliers revealed fascinating results.	Crystal Ball 2030: Bold predictions for the future of retail Change is inevitable; however, progress is optional. How can your business benefit from upcoming changes in the jewellery industry?
Provenance or Proof of Origin: Does anyone seriously care? Provenance or proof of origin is a hot topic. Conventional wisdom says it's an important issue, but in this digital era it's also important to challenge tradition.	You’ll never understand the universe if you only study one planet More often than not, the questions are complicated, but the answers are simple. Publisher ANGELA HAN reflects on the creation of the State of the Industry Report.	Listen to what is not said, for there, the true story lies Editor SAMUEL ORD explains some of the behind-the-scenes work that went into this State of the Industry Report and discusses expectations and reality.

STATE OF THE INDUSTRY REPORT - ADDENDUMS
SINCE JANUARY 2024

Questions of legacy and accomplishment for the JAA The structure of the JAA is unique, which causes complexity in measuring its success. To look to the future, one must recognise the success and failures of the past.	Why is Queensland so different? Well, the answer is: Because it is! Over the past decade, Queensland's number of jewellery stores decreased dramatically more than any other state. Why? The answers are intriguing.	Grey areas: Jewellers operating without a retail storefront As trends emerged and consumer shopping habits changed, so too has retailing. The COVID pandemic probably hastened the move towards specialist jewellers, those that do not require a storefront.
	WHAT! You are telling me that your business doesn't have a website? If you had to guess, how many of Australia's independent jewellery retailers don't have a website? Would you say 100, 200, or even 300? How about 400, 500, or 600?

READ FULL 2024 STATE OF THE INDUSTRY REPORT

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