The Jewellers Association of Australia is proposing a number of changes to its Constitution – including a dramatic reduction in the number of directors on…
The Jewellers Association of Australia is proposing a number of changes to its Constitution – including a dramatic reduction in the number of directors on its Board.
Under the JAA’s current constitution, the Board can be made up of 5-14 directors compared with just 5-6 under the proposed constitution.
Announcing the proposed changes in a statement, JAA’s newly appointed executive director Amanda Hunt said the reduction in board members “reflects good governance and general practice in the not-for-profit sector”.
“The proposed changes will improve the governance of the JAA and create a board structure which is more reflective of the membership.
“The changes also update the Constitution to reflect recent changes to the law relating to changes arising from the introduction of the Australian Charities and Not-for-profits Commission.”
The proposed Board structure will include: (a) two members elected as directors; (b) three national councillors, elected as directors (including at least one general retail member;, at least one general supplier member, and one co-opted director).
With the exception of co-opted directors, directors must all be general members or representatives of general members, and no more than one elected director shall be a representative of a buying group entity.
JAA president Selwyn Brandt added “we have worked rigorously on the changes and believe the smaller Board, combined with the introduction of the National Council will result in an improved structure for the JAA, ensuring that it can meet the challenges ahead, on behalf of the industry.”
JAA members will be asked to support the proposed changes to the Constitution at the JAA’s annual general meeting on September 1.
Chow Tai Fook, the world’s largest pure-play jeweller currently worth around US$15 billion, is buying Hearts on Fire for US$150 million.
Announcing the acquisition, Chow Tai Fook chairman Dr Henry Cheng said the proposed purchase “is a strategic move to complement our product portfolio with an exclusive premium diamond jewellery line and to raise our profile as a world-class diamond expert in the jewellery industry”.
He said that when the acquisition is completed Hearts on Fire will run as a stand-alone business within the Group under the continued leadership of CEO and chairman, Glenn Rothman, but the brand’s products will also be introduced into Chow Tai Fook’s retail outlets in Hong Kong, Macau and Mainland China
Chow Tai Fook managing director Kent Wong added that the acquisition is in line with the Group’s strategy “to optimise product mix and promote higher value products to match the spending profiles of consumers”.
“Hearts On Fire is a best-selling luxury diamond brand with strong consumer awareness, and its product offerings are ideal additions to our existing portfolio,” he said.
“Given its proven track record not only in the western markets but also in Taiwan, the Group is confident that the Hearts On Fire products will be well received in our major markets … where diamond jewellery is increasingly popular.”
Meanwhile Rothman said that the acquisition will bring powerful financial resources, high-tech manufacturing capacity, and Chow Tai Fook’s innovative culture of creative talent to Hearts on Fire.
“These “best-in-industry” resources will provide Hearts On Fire the support and opportunity to expand exponentially, as we enter new markets, leveraging Chow Tai Fook’s leadership in the jewellery industry and its extensive retail network in Greater China,” he said. “This is an unprecedented opportunity to grow the Hearts On Fire brand and reach millions of new customers.”
Currently celebrating its 85th anniversary, Chow Tai Fook Jewellery was listed on the Main Board of The Stock Exchange of Hong Kong in December 2011 and has since become the world’s “largest pure-play jeweller by market capitalisation”. The manufacturer of “mass luxury and high-end luxury jewellery” has over 2000 points of sale in Greater China, Singapore and Malaysia and “a growing presence in e-commerce”.
Founded in 1996 by Glenn and Susan Rothman in the US, Hearts on Fire is “a multi-channel manufacturer, marketer and designer of luxury branded diamonds and diamond jewellery”. The brand is sold in over 500 retail outlets in 31 countries, with the US being its largest market.
Millennials, consumers aged 24-34, don’t value jewellery as much as previous generations, according to a new survey by US-based Unity Marketing. The company’s study of…
Millennials, consumers aged 24-34, don’t value jewellery as much as previous generations, according to a new survey by US-based Unity Marketing.
The company’s study of 1335 affluent consumers with incomes of US$100,000 or more found that jewellery purchases gave Millennials less “personal enjoyment” than seven other popular luxury purchases.
The Millennials gave jewellery purchases an average rating of just 63 (in an index where 100 equates to an average level of personal enjoyment) – cultural events received an average rating of 90; fashion and clothing (90); entertainment events (102); technology tools and gadgets (115); gourmet food (123); fine dining (140) and travel and hotels (156).
Pam Danziger, author of the Marketing to Millennials: How to Sell Luxury Jewelry to the Next Generation of Affluents report said young adults “aren’t buying the traditional jewellery marketing paradigm” that worked for previous generations.
“More than half a century ago, DeBeers hit a home run by convincing the returning WWII veterans eager to settle down and get married to mark the milestone of their engagement with a diamond,” she said.
“The ‘Diamonds Are Forever’ tagline worked well for that generation, which in turn gave birth to the gigantic Baby Boomer generation. And it worked equally well for the Boomers in the 70s and 80s, but the signs are that it isn’t working so well for the babies of the Baby Boomers − the Millennials. “Millennials just aren’t buying the traditional jewellery marketing paradigm…
“They need messages that are relevant to their lifestyles and a generation that is delaying, even foregoing marriage, in growing numbers doesn’t necessarily care about researching the 4Cs or spending three month’s salary on a chunk of pressurized charcoal.
“These Millennials would much rather drop $700 on the latest phone or tablet computer, than on a new pair of earrings or cuff links,” she said. “Marketers and retailers need to discover how to change the conversation, so that buying jewellery is as fresh and exciting as the latest iPhone.” “The problem facing jewellers is how to communicate with Millennials to reassure them they already have the skills needed to buy fine jewellery and that doing so is just as cool as buying the latest techno-gadget.”
Unity’s report examines the jewellery buying behaviours of the Millennial generation and offers “actionable advice on how to position a jewellery brand to reach these important consumers”.
It includes profiles of “successful jewellery brands like Hearts on Fire, which is innovating to change the entire jewellery shopping experience through simple yet ground-breaking strategies, like putting the sales person and the customer on the same side of the display case.
“Millennials want their purchase experience to feel more like collaboration and less like a confrontation,” Danziger says.
“Fine jewellery need no longer be confined to hushed studios, hidden price tags, and complicated information. For the Millennials it can be − it has to be − fun and engaging, or they will walk right past the jewellery store and on to the next tech device.
“The problem for jewellery marketers isn’t that Millennials are rejecting diamond engagement rings, but marketers need to talk with the next generation in a way that is meaningful and relevant to their lifestyles. That ‘Diamonds Are Forever’ tagline has lost meaning for a generation that has heard the widely-quoted ’50 percent of all marriages end in divorce’ statistics and often times has experienced it in their families growing up.”
Five years after its launch as a pearl wholesaler, WA-based Allure South Sea Pearls has just opened its first retail outlet in Broome – and is planning to launch an online boutique too.
According to the company, which has 27 retail stockists in Australia and one in Vanuatu, “there’s no better place” to showcase its jewellery than in “the historical South Sea pearling capital of the world”.
Allure sales and marketing manager Natasha McCulloch said the new store, which is located in the heart of Broome’s Chinatown, has “one of the largest collections of classic style and handcrafted bespoke pearl jewellery in Australia”.
“It was a logical decision to launch our own flagship store to demonstrate our confidence in the brand to our customers and independent Allure stockists,” she said.
McCulloch added that the company had no plans to open any other stores in the immediate future.
“We’re taking things one year at a time but at the moment we are committed to growth with our current retail stockists and developing the brand further.”
As part of its brand building strategy the company has launched its 2014 advertising campaign featuring WA beauty Caris Tiivel adorned with “hand crafted couture creations designed and made by Allure South Sea Pearls in Broome”.
“We are a West Australian company and it was important for us to choose a local model to front our new campaign,” said McCulloch.
