It’s been a long-held belief in Australian retail circles that consumers are passionate about supporting local businesses and brands.
With so many significant changes to the retail landscape over the past five years, it’s worth asking whether these purchasing patterns have changed.
Indeed, in many ways, it would not be surprising to discover that the dedication local consumers claim they have for Australian jewellery products is nothing more than a ‘convenient truth’.
It could easily be a self-proclaimed characteristic based on image, desire, and emotion rather than the reality reflected by purchasing patterns.
The good news is that first-hand reports from jewellery retailers across Australia would appear to dismiss this fear!
Research conducted by Roy Morgan in 2023 found that consumers associate many appealing values with the ‘Australian Made’ logo.
Among them were supporting local jobs and employment, high-quality and reliable products, the use of ethical labour and environmental awareness, and expensive yet good value products.
The broader philosophy behind these purchasing patterns is simple and easy to understand. With Australian brands, you know what you’re getting – quality products made at high production standards.
At the same time, you’re helping maintain Australian jobs, strengthening domestic industries, and supporting local communities.
These are the advantages Australian jewellery presents consumers. For retailers, it’s a different and yet still compelling equation.
Partnerships between local retailers and suppliers offer improved quality assurance, faster turnaround times, and reduced shipping costs.
Closer geographic proximity can lead to more robust communication and relationships, and local suppliers may offer more customisation and flexibility, along with market insight.
Unique challenges
That said, the retail landscape has changed considerably over the past five years. With stores and shopping centres nationwide forcibly closed during the COVID-19 pandemic, Australian consumers were temporarily forced to turn to online sources for jewellery shopping.
These consumers discovered that now, more than ever, a wide range of jewellery is available online and for delivery at friendly prices.
This presents a challenge for Australian brands and retailers, as customers were forcibly introduced to new sources of jewellery that threatened to undermine long-standing relationships reinforced by civic pride.
Angus Smith is the CEO of Krool Jewels, which operates stores in Newcastle and Melbourne.
He says the pandemic was an unusual experience for his business.
“I think the pandemic certainly widened people’s buying habits,” he tells Jeweller.
“I definitely benefited from the buying habits during the pandemic because, at that point in time, my business was completely online with a strong social media presence.
“Now that I have two brick-and-mortar stores, I think my relationship with customers is very different than it was when I was only online.”
Smith says there is a distinction between consumers shopping in-person and online.
Those in person are quick to espouse the importance of supporting Australian brands, while those online are likelier to favour price, style, and aesthetics over origin.
“I think, especially in Melbourne, people have a strong urge to buy local, and I think the handmade aspect is still a solid selling point that many of my customers seem to appreciate,” he explains.
“But in my experience, I think there is still a big appreciation for supporting locals and love for handmade pieces; even so much appreciation, it seems people would pay more money to have something done locally by someone they can meet rather than online.”
Changing tastes
Defining consumers' different motives was also crucial to Natalie Barney, a French jewellery designer working in Sydney.
She says there has also been a specific category of consumers interested in chasing cheaper prices from overseas. These consumers are less interested in the creative process behind jewellery and, by extension, less concerned with the emotional experience associated with pieces.
Put simply, they favour the fast and efficient process of ordering online.
“We know that jewellery is not only an emotional purchase; the experience of buying or creating jewellery is also one that feeds off human connections,” she tells Jeweller.
“That means feeling that you are connecting with someone who is attentive to your needs and will come up with the right recommendation, especially when it comes to bespoke or made-to-order jewellery where trust is such an integral part of the process.”
She also referenced an emerging type of ‘anti-social’ consumers, who prefer to shop via technology rather than in person.
The perception of these consumers undoubtedly differs from one business to another. Older generations are more likely to view them as unusual or unconventional, while younger business owners may feel it’s ‘business as usual’.
It’s easy to imagine how the conditions of the pandemic would've reinforced these habits. With e-commerce more accessible than ever, there’s been little motivation to return to in-store shopping.
“What I have seen is an increase in local people who are more receptive to either ordering online sight unseen or connecting with me as a designer through emails, messages, or phones and then placing an order without again having a physical appointment with me,” she added.
Increasing savvy but still proud
Another Australian business owner pointed out that trust can be found easily in local businesses but is more challenging to discern when shopping online.
Victoria Buckley, a jewellery designer based in Sydney, says that her customers are more savvy and aware of international designers than ever.
Social media and online shopping have undoubtedly played a vital role in this increasing awareness as the market transitions from learning about jewellery at local stores to online.
With that said, she argues that the nature of jewellery is a highly valuable and emotional product, which means that connections with local businesses remain as strong as ever.
“Because of the high value of jewellery, and the challenge of visualising scale and quality online, customers still generally prefer to experience a piece in person,” Buckley says.
“I’ve had very high-value pieces purchased online, unseen, before – it does happen. Generally speaking, however, customers like to hold a piece in their hands before purchasing. Once they know they can trust your brand, that becomes less essential.”
Buckley argues that the profile of Australians as consumers has changed significantly over the past decade and that they are increasingly comfortable purchasing jewellery overseas. With that said, they’re still proud to be Australian – and to support local jewellery brands.
“Australians are increasingly well-travelled and aware of quality. Australian-designed and made jewellery is highly regarded and generally thought of as being excellent quality,” she says.
“I know our customers are very loyal and appreciative that my company makes everything locally. It’s a significant factor in our long history.”
Memory lane
Geneine Honey Bespoke Jewellery is based in Fitzroy North in Melbourne. The owner, Geneine Honey, was also quick to raise the importance of trust and quality. She says that younger consumers are tech-savvy and willing to chase value online, partly because they’re yet to feel the sting of ordering jewellery online and discovering its poor quality.
She says that experiences such as these and the frustration of having to return a piece overseas motivate older consumers who understand the value of shopping locally.
“Younger consumers also don't remember a time before little designer boutiques and businesses lined the Melbourne streets,” she recalls.
“Older customers remember the 1990s and how many empty shop fronts there were and what a monopoly of retail we had dominated by big business, they understand and remember what limited choices we had here in Australia.”
She continues: “I opened my first retail store in 2001 on Gertrude St in Fitzroy. What is now a thriving retail strip full of designer boutiques and broadsheet-worthy eateries was then a wasteland of empty shopfronts and boarding houses.
“Since those early years, the boutiques have populated the inner north, and it’s easy to take them for granted.”
Indeed, local consumers still have many advantages to enjoy when choosing between shopping in person and online.
You can take your purchases home immediately without the infuriating wait for shipping! You can physically touch, try on, or test products, which builds confidence in decision-making.
As Honey explains, face-to-face interactions with staff can provide valuable assistance, recommendations, and irreplaceable personalised service, which allows jewellery retailers to extoll the virtues of locally made jewellery.
“All of that being said, even the younger shoppers love a personalised experience, to meet the maker and have a little help navigating a purchase. Jewellery can be a big financial decision, and who doesn't need help with those!” she jokes.
“Many of our customers are local and do really want to support local business, we also have a loyal customer base that has grown with the business over the past 20 years and shops with that brand loyalty in mind.”
Diving even deeper
Black Finch Jewellery is based in the Melbourne suburb of Collingwood and manufactures its pieces in a workshop above the store.
“Local now can feel global if your values align. At the same time, there is a certain romance of walking past a store every day where you have purchased significant jewellery, and that will always be the case,” explains creative director Davina Adamson.
“I think identity is such a huge part of culture now, finding the brand that aligns more precisely with 'who you are' has become more valued.”
At the end of 2023, the business completed a survey of more than 700 customers. One of the questions asked consumers to rank the factors that influence their purchasing.
The three most popular responses were budget constraints, quality craftsmanship, and unique design. General manager Marie-Lauren Romano says these responses revealed a significant advantage Australian jewellery brands and businesses have over overseas competitors.
“I think now more than ever consumers are seeking a point of difference - not only in jewellery but from multiple lifestyle industries,” she explains.
“The rise of e-commerce, social media and our increasing digital connection across the globe has led to homogenised product offerings. It's uninspiring, to say the least. Coming from a design business, the importance of innovation and integrity is more evident; these values are the life of our business.”
Word spreads quickly
It’s clear that those with their ‘feet on the street’ have identified the key characteristics that attracted Australian consumers to local businesses and brands.
Local consumers prioritise brands and businesses that uphold ethical standards in their operations, including fair labour practices, transparency in sourcing, and responsible corporate behaviour.
They're also after high-quality products or services that consistently meet or exceed expectations. Consumers are willing to pay more for reliability and durability.
Strong customer service is naturally a significant factor. Consumers appreciate businesses prioritising their needs, providing personalised experiences, and responding promptly to issues.
Finally, supporting local communities is a factor that resonates strongly with Australian consumers. They prefer businesses that source locally, contribute to community initiatives, and create employment opportunities. Businesses that align with these values attract and retain loyal customers.
The good news for Australian jewellery brands brings all this to the table – and more. Retailers can capitalise on consumers' trust in Australian-made products, which can foster brand loyalty and repeat purchases.
In a similar light, reduced shipping times and proximity to the market mean quicker stock replenishment and faster response to changing consumer demands.
Retailers can align with consumer sentiment towards supporting local jobs and industries, which can resonate positively with their customer base.
Indeed, Australian jewellery brands and suppliers can provide retailers with a competitive edge through quality, trust, and alignment with consumer preferences.
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