Proactive, not reactive, consumer recruitment

"When the world is changing around us, to stay still is to be left behind. As an industry, we need to consider and act on…

Each generation moves and shifts – adapting to technology, growing our understanding of culture and the world, and changing based on developments in research and understanding of each other and ourselves. These shifts take many different forms, from the more widespread acceptance of personalisation and individuality to awareness and, therefore, action in response to the changes we are making to our world and its survival.

Generational changes are happening quicker than ever before, with the ability to see and react to not only the situations that directly affect us but also the ones that affect strangers from across the globe. In recent years and months, we have seen these situations play out before our very eyes, with some very real and very established global issues and some new ones, such as health pandemics we could never have predicted. Having these issues surround us daily, we slowly but surely change our fundamental needs and wants. Many of us are becoming more aware of how our actions and choices affect those around us and our planet.

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In particular, we are seeing younger generations taking action – and very seriously. They are changing their lives to ensure that they are the solution, not the problem, to the world’s issues.

These shifts in human behaviour and interest need to be understood and recognised as we develop and grow the jewellery industry. As consumers adapt to new a normal and their wants and needs change as a result, the way they buy and their receptiveness to brands and products will also change dramatically.

As an industry, we need to not only be aware of these changes but also adapt ourselves to ensure that we are ready to respond to new consumer demands in the face of these changes. This requirement to understand our consumer goes hand in hand with our work on recruiting the next generation of buyer into the jewellery industry.

Recruiting

As this consumer – currently not old enough to purchase high-end jewellery – grows to an age where they want to mark a milestone like a relationship with something special, they may feel quite differently about purchases that the jewellery industry has historically been quite reliant on.

For example, a 15-year-old girl growing up now in an age where issues such as climate change, gender equality, race issues and class systems are being challenged, and the traditional norms of a relationship are becoming the minority, may not feel comfortable buying or accepting a diamond ring if she is unsure of where its elements were mined, how it affected the environment and who was part of the process when making her piece.


So how do we speak to her? How do we modify our message, our supply chain and our processes to ensure that when she is ready to buy jewellery, she will want to?

Equality

We have seen in recent years major brands such as Tiffany and Co, shift their campaign message to include all types of love. Their ‘My kind of Love’ campaign released in 2015 depicted their first gay and lesbian couple, strongly aligning the brand to support the LGBTQ community which at the time was forming to advocate for same sex marriage. The brand shifted their traditional message to include and support their evolving consumer, and it paid off.

Further reactions to the Marriage Equality debate of 2016-2017 came from Michael Hill and a plethora of other brands. Including Australia’s Peter W Beck whose same sex marriage campaign was released in 2013 after recognising the shift in trend and demand for ‘His and His’ wedding bands.

But it’s not just the changes in relationship status that require the jewellery industry to sit up and take notice. Major jewellery brands have adjusted their models to factor in environmental causes and equality.

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The Environment

Over many decades, De Beers has led the way in changing the way the diamond industry sources stones and minimises its involvement in conflict diamonds. Partnering with the World Diamond Council and supporting the Kimberly process, De Beers continues to be a leader, pushing the industry to be more mindful and to take action around diamond production. The company is now also focusing on conservation of the environment and wildlife.


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In March 2018, Breitling launched a partnership with Ocean Conservancy, teaming up on a mission to clean, protect and conserve oceans and beaches. Watch brand TIVC – Time IV Change – is a vegan friendly brand, clearly targeting the significant
shift in clean and environmentally neutral eating. What will be the next humanitarian shift that will require the jewellery industry to react? And perhaps rather than react, why don’t we act? Brands and businesses that actively stand for humanitarian and environmental causes are shown to gain more trust from their consumer, especially younger generations who are actively seeking out brands who stand for something.

What do we do?

As participants in this industry, large or small, it is not only our responsibility to make good choices for our consumer, but to convey that message and intention when recruiting new customers. As consumers continue to be more aware of their impact on the environment and the world around them, they will seek to change their behaviour to ensure that whatever their actions, that they will have a neutral or positive effect on the world.

Proactive behaviour on our part, sourcing Australian product, reducing waste, and manufacturing locally, means that when that 15-year-old is ready to buy jewellery, she will not only want to, she will be proud to!

Read more from Laura Moore.

What does the luxury business mean to you?

I am in the diamond business.I am in the jewellery business.I sell expensive watches.Is this you? Rami Baron - President, Diamond Dealers Club of Australia…

I am in the diamond business.
I am in the jewellery business.
I sell expensive watches.
Is this you?

Rami Baron – President, Diamond Dealers Club of Australia

I’d like to use a quote that I wrote in another article many years ago. A marketing guru was having dinner with the chairman of Rolex. A friend of his stopped by the table to say hello. The friend turned to the chairman of Rolex whom he recognised and asked, “How is the watch business going?”. His response was “I do not know.” There was a pause and clear awkwardness at the table. How could the head of the most successful watch company in the world not know how the market was? The chairman smiled and said, “Rolex is not in the watch business. We are in the luxury business.” Now, before you start shaking your head thinking ‘well of course Rolex can say that,’ I know and you know that you’re not Rolex and you probably never will be.

So how relevant is this quote to you?

Humour me and you will see where I’m going with this. You don’t have to be Rolex to learn from Rolex. You don’t have to be Amazon to learn from Amazon, nor do you have to be the most sophisticated store in your city to learn from them.

If today you were to walk into your establishment and ask yourself how do you want your customer to feel when they walk into your store, workshop or showroom, what would the answer be? If you’re not sure what I mean, then I suggest you go for a walk into Tiffany’s or an LVMH boutique. As soon as you enter, stop and ask yourself how have they made you feel? Maybe nothing, but then I think you are missing the point. You’re focusing on the fixtures and fittings and not the overall ambiance, atmosphere and experience. I was sitting and talking with a guy from Amazon. He was explaining to me how everyone who works there focuses on what they call the ‘flywheel.’ This is a concept where every employee is expected to think about what benefits they can bring to their customers. But he also brought to my attention that Amazon never looks to get into niche markets. The reason is very simple: they cannot scale.

They need to get into a market where they can use their sheer size to grow. A niche market is specialist and they stay away from those because they understand that the resources it takes to capture market in this space is disproportional for a large business. Amazon is not going to come after the smaller operator and Amazon is not going after luxury. Amazon is focused on price, and that’s a game you can never win. Let’s refocus the lens.What does the luxury business even mean to you? In my view, when it comes to jewellery, the luxury business means the ability to evoke an emotion in our customers which creates the desire to want to both experience it and own at least a small piece of it.

Luxury is something we strive for. It is a feeling of being pampered, respected, looked up to. Yes, deep down we’re touching on someone’s ego that they are able to participate in this rarefied atmosphere. I will ask you to stop for a moment to appreciate that luxury in the world that we live in today does not necessarily mean velvet lounges and gold edged mirrors. Your environment could be minimalist. I might need to enter three security doors just to get in. Your showroom might be in a hidden away location with the customer being sent a passcode that they must use to enter the front door.

Ask yourself what would your customers consider being luxurious? Maybe the word is not luxurious. Maybe it’s Dope, Lit (amazing cool or exciting) or GOAT (greatest of all time). Your definition of what luxury is may be very different to your customers’ definition. Is your offering luxurious in the eyes of your customers? What could you do to make it luxurious? What if I said to you that fresh strawberries are a luxury in winter, to some people?

We all know what a luxurious hotel looks like, or do we? It is different depending on your age and your mindset.If you stayed in a four star hotel, but they put chocolates on your pillow, fresh flowers in the room, fresh milk in the fridge and few pieces of fruit with a little handwritten card welcoming you by name on the table, I would consider that luxurious. I feel that we are in a luxury business, and it’s all about how you make your customer feel. The product, the diamond ring, can only be re-invented so many times. Today, your customer does so much homework before they even come to see you. They often know what they want, give or take, before they walk in the door.

We talk about the experience, but to what extent do you take that? Are you consistent with this experience every time? So many jewellers start off with great ambitions, like the champagne bottle at pick up, but a month later they forgot to refill the stock and stop doing it. They didn’t have time to write the handwritten note or call a week later, with excuses like they were busy, or ‘do we really need to spend that additional $50?’

A true luxury hotel does not drop the ball, and if they do, they overcompensate to exceed your expectations. Imagine one customer gets the champagne, but not the next one who was told about it, but you ran out. You won’t hear about it, but you also won’t get their referral. Luxury is all the above and more. Consistency is a key element.

What do you do? Or should I really ask, what does the luxury business mean to you?

Read more from Rami Baron:

The cause and effect of the now rising price of gold

What is driving the new unprecedented historic high gold price? - Chris Botha

For six years gold languished below US$1,375 but lately, it broke through and since then it has staged a remarkable recovery that has not shown any signs of slowing down. A falling Australian dollar has added to the rise, resulting in the Australian gold price increasing over $A2,760 per ounce.

The current upward trend in the gold price has shown no sign in slowing, further compounded by the COVID-19 outbreak and gold and other precious metals beings observed as a safe haven. Professional investors seeking gold as a potential safe-haven have been the main force but ABC Bullion has seen a surge of interest by individual investors as well.

The price of gold is primarily set in the London and US gold markets where huge transactions between corporations, Institutions, governments, and individuals occur. The resulting gold price balances demand from buyers with supply from sellers. The price relationship between a piece of fine gold jewellery and gold market prices generally aren’t so clear cut. Gold jewellery, for the most part, is priced for the creativity, workmanship, and exclusivity of an item. Stock items such as engagement rings, earrings mountings, etc. reflect gold ounce prices most.

The jewellery industry operates on a “gold price on date of delivery” model. That means that manufacturers, wholesalers, and retailers, don’t know one day to the next what their gold purchases – or unfilled orders – are going to cost. When the order is filled from a supplier, the daily gold price is consulted, and the metal is priced accordingly.

The last time that gold was trading at over $1800 an ounce, jewellery manufacturers started to move predominantly into the silver and stainless-steel ranges in order to still be able to appeal to customers at the lower price point. Lately our office has experienced a trend in increased sales in platinum alloy, due to the increasing price of gold, also there has been an increase in phone calls asking for the price of gold for the day.

At Palloys, we have remained open throughout the crisis, ensuring we are there to service the industry. Palloys have been invested heavily into streamlining our systems with our sister company ABC Refinery, to ensure that any precious metal product, whether it be fabricated metal, findings, Casting or Finished jewellery, is offered at the best precious metal price.

Further reading:
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