I don’t take too many long lunches these days, so when a colleague recently invited me to one, I accepted – not so much because he wanted to pay but because, being a Kiwi, he rarely opens his wallet!
So I ordered up big time! Over quite a few drinks – he would only order New Zealand wines – we discussed how much business had changed over the past decade before moving onto the topic of the internet and social media.
We noted how a person’s views on the importance of social media seem to be determined by their age. For the young, it’s an important part of their lives – some might say “overly important” – but it seems the older you are, the less likely you’ll be concerned about it.
As our conversation continued, my friend raised a question: Are industry associations relevant anymore and do we even need them?
At first I thought he was speaking tongue-in-cheek but the more we discussed it, the more I began to see his perspective. He suggested that one of the traditional roles of an industry association is to encourage people to communicate about important issues, and that social media now facilitates this far more effectively and easier than ever before.
Yes, an industry association has many other roles also, but I'll admit that this point got me thinking long and hard about his original question.
Dramatic change
Consider for yourself how much the Australian jewellery industry has changed in the past 10, or even five, years. If you’re a retailer or a supplier, think about how much your own business has changed in that time also.
For example, Pandora didn’t exist in Australia a decade ago, and yet it changed the entire industry in just a few short years. Branded jewellery was also almost non-existent 10 years back, and how much gold jewellery do you sell now compared to a decade ago?
For many readers the industry has probably changed so much that it’s now almost unrecognisable. Hell, the industry has changed so much for local jewellery manufacturers that most, unfortunately, no longer exist!
The business world, and the Australian jewellery industry specifically, have undergone enormous change over the past five years, let alone 10, but how much has the Jeweller’s Association of Australia (JAA) changed over the same time?
Thinking back to my friend’s question, I believe industry associations are still needed but only if they remain relevant. While we can debate the meaning of “relevance”, one vital part of being relevant is changing with the times.
Has the JAA changed with the times? Do the declining JAA membership figures of the past few years indicate a lack of “relevance”?
The JAA will argue that declining membership is only a reflection of the current economic climate but I would argue that the JAA is inept at communicating to retailers and suppliers the benefits of membership to Australia’s only jewellery industry association.
Too large, too old and too male
There is much wrong with the management of our, so-called, “peak industry body”. Take the board of directors for example. To me, the board is too large, too old and too male (all bar one).
Okay, before you fall off your chair, allow me to explain.
Much has been written about the optimal size of a board and how it affects its operation and efficiency. Surely, with 12 directors, the JAA board is too large.
To put it in perspective, 12 directors (and it was 13) equates to approximately one director for every 70 JAA members. That’s absurd!
I think the JAA board is also too “old”. The industry begrudges the lack of young people coming through the ranks and yet its own representative body reflects the exact opposite of what it seeks to change.
If youth is needed, then it is needed at all levels, which includes the board.
Now here’s the “doozy”. It should not surprise you to know that I abhor political correctness, and that I don’t support positive discrimination as a matter of principle but surely an industry with a customer base comprising almost entirely of women should have more than one female director, right?
To have just one woman representing the entire jewellery industry, let alone indirectly representing millions of female “customers”, is crazy and begs the question, “Why?”
Does the industry lack capable women? I hardly think so given that there are plenty of female-operated jewellery businesses in this country.
Arguably, some are as successful, if not more successful, than those of some of the JAA’s male board members over the past 5-10 years. And many of the highly successful jewellery suppliers over the past five years have been female-operated.
Yet for more than six years there has been only one female board member!
Time for a re-think?
Consider all of the above and ask if these attributes are the hallmarks of a progressive industry association, one that changes with the times, or has the time arrived for a re-think?
I think it’s the latter. Indeed, over the past few years a number of people have suggested that there is a need for a break-away association, one that better reflects the current industry. Or, more importantly, one that is in tune with where the industry is headed rather than where it has been.
I think that any move to create a new jewellery industry association would be a tragedy and would simply create division, not unlike in New Zealand where three industry associations exist in that small market.
Regardless, I believe it’s time for a complete re-think of the JAA and that “re-think” should be conducted independently of its own board.
That is, jewellery and the jewellery industry will always be relevant to consumers, but that doesn't mean that the JAA will remain relevant (and important) to the jewellery industry.
Perhaps it’s ironic that the very first thing you read about the JAA on its website is, “Established in 1931, the JAA …”, so maybe you understand why my friend’s question wasn’t a throw-away line after all, and why our long lunch was most beneficial.
And although I didn’t say so … I must admit the New Zealand chardonnay was excellent, but don't tell my Kiwi friend!
Editor’s Note: Although Jeweller is the official publication of the Jeweller’s Association of Australia (JAA), the magazine is published independently of the JAA and all views and opinions do not necessarily reflect those of the JAA.