I’ve recently came across claims that the Australian jewelry market is significantly more successful than the American’s industry.
For starters, I do not find references to these “facts”, therefore I would like to provide you proven facts that I am aware of regarding competition between Australian and USA jewelers.
There are two significant differences between the two countries that you may not be aware of unless you know them both well.
1. The mark-up in USA is on average lower than in Australia. There are many reasons that contribute to this, not the least of which is product mix of sales. For example, branded product and higher average sale due to diamonds being a larger percent of total sales.
2. The USA has been living on credit a lot longer and with more zealousness than Australia, therefore, the US jewelers incure Supplier Debt levels that are often proportionately higher.
So what does all this mean?
In short, the two countries are quite different in many ways, especially in terms of how they have been affected by the Global Financial Crisis.
And what does it mean for you?
Right now, it’s important to note that it’s not where jewelers are at but rather, what direction they are going and at what speed. For example, I’m aware of USA jewelers that for this year to date (being 6 months) are NOT ONLY on a six year high GROSS PROFIT for this time of year, but also 10% ahead of their second best year results ever. That is significant and doesn’t look to me like those jewelers are not in fact thriving.
I am also aware of Australian and New Zealand jewelers who have not only achieved highs in profitability for an entire twelve months for five and six consecutive years.
In conclusion, no matter which country you trade in, it’s VERY important for everyone in the jewelry industry to stay focused and implement proven and effective strategies, from marketing to inventory control to sales training that can keep your business on the road to profitability.
