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.
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The purpose of this report is two-fold – it’s a historical document offering an in-depth look at the state of the industry, and a glimpse of the future.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
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Independent Jewellery Stores: How many are there in Australia?
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Jewellery Buying Groups: The ups and downs of this vital sector
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Jewellery Chains: Stronger and stronger… for some!
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Fashion Jewellery Chains: Examining explosive collapses
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Brand-Only Watch & Jewellery Stores: Is the sky the limit?
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Births, Deaths & Marriages: See you on the other side!
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Shopping Centre Conflict: Haven’t you heard? We’re at war!
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Jewellers Association of Australia: Where does the JAA go from here?
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Jewellers Association of Australia: Does it represent the industry?
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Jewellers Have Their Say: Prepared to be surprised and intrigued!
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Crystal Ball 2030: Bold predictions for the future of retail
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Provenance or Proof of Origin: Does anyone seriously care?
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You’ll never understand the universe if you only study one planet
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Listen to what is not said, for there, the true story lies
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STATE OF THE INDUSTRY REPORT – ADDENDUMS
SINCE JANUARY 2024
Questions of legacy and accomplishment for the JAA
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Why is Queensland so different? Well, the answer is: Because it is!
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Grey areas: Jewellers operating without a retail storefront
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WHAT! You are telling me that your business doesn’t have a website?
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More reading:
Buying Groups through the Pandemic – 2020 State of the Industry Report: In-depth update of Australia’s jewellery buying groups over a decade
Brand & Deliver – 2020 State of the Jewellery Industry: 10 Year Report on Australia’s branded jewellery and watch stores
2020 State of the Industry Report: In-depth analysis of Australia’s jewellery chain stores over a decade
Buying group reaches another membership milestone; surpasses two-year goal
2020 in a Nutshell: Top Headlines and Births, Deaths & Marriages