JCSA Annual Report 2019 by Isikhova Media

ANNUAL REPORT 2019

01 JCSA ANNUAL REPORT | 2019

09 | Statement of Claim and Arbitrations Between Members 10 | Mediation, Arbitration and Cautionary Notices

12 | The New Mining Charter 12 | ZA Mark 12 | SOCIAL RESPONSIBILITY

10 | Art Jewellers

12 | Chairperson’s Fund

10 | CAD Technicians and Designers

12 | JEWELLERY MANUFACTURERS’ ASSOCIATION OF SA (JMASA) CONSTITUTION

2019 | JCSA ANNUAL REPORT 02

16 | JCSA Jewellery Manufacturing Trade Certificate

18 | Promoting Locally Manufactured Jewellery

16 | Professional Technical Skills Certificate (PTSC)

18 | INTERNATIONAL PROJECTS

17 | JCSA Internal Social Media Campaigns 2019

19 | COMMUNICATIONS

18 | JCSA Recommended Disclaimers

19 | Communication Tools

18 | Jewellery Council Risk Initiative

19 | SA Jewellery News

03 JCSA ANNUAL REPORT | 2019

T HE , FROM R S ON E P R I CH A VAN S I R H C BU R G R EN S

Letâ&#x20AC;&#x2122;s face it, this past year has been a challenging one, not only for the jewellery industry, but also for the

STATE E H T ON 9 TION C IN 201 E L Y F R T RE S U E IND OF TH

economy of our country and worldwide. However, despite the negative headlines, we believe there are grounds for increased optimism.

MESSAGE FROM THE CEO LORNA LLOYD

Chairperson Chris van Rensburg and his Vice-Chairperson, Nthabiseng Xaba, have been re-elected to resume leadership of the council for the ensuing three years, with the assistance of the board and CEO on all strategic platforms. In addition, Dave Newman from the Tshwane University of Technology will continue to lead the Jewellery

Moving into 2019 after a moderate festive season, retail remained under continued pressure, with sales figures dropping even further

Manufacturers Association of SA as Chairperson. Although Jewellex Africa 2019 was smaller and attendance was poor, exhibitors at Jewellex Africa 2019 experienced

With a continued drop in consumer spending through the winter months, an upswing was experienced after a successful Jewellex in October.

some good business dealings with retailers preparing for the expected year-end increase in consumer demand. The show looked beautiful and the many activities contributed to a successful weekend of business and networking.

Local manufacturing remains under pressure and needs more demand for local content. The uncertainty of the implementation of the 2018 Mining Charter remains a concern, as it does not encourage any investment or employment opportunities.

Some of the main activities included the Cocktail Function and Fashion Show sponsored by Anglo American Platinum, the Exhibitor Support Awards, the Business Breakfast sponsored by Rand Refinery, Gin Tastings and Champagne in the CPM Chill Lounge, interesting talks in the MetCon Speakersâ&#x20AC;&#x2122; Corner and the Jewellery Council

We remain optimistic for a buoyant festive season.

Collection Awards Design Competition.

2019 | JCSA ANNUAL REPORT 04

We have exciting new plans for Jewellex Africa 2020,

Our involvement in the Security Initiative continues to

present format will have a detrimental effect on the

which involves a retail component to run concurrently

be crucial. Crime is rife and the crime spree targeting

jewellery industry.

with the show. Watch this space!

jewellery stores appears to be intensifying. The more informed our jewellers are, the better they can

The new owners of SA Jewellery News continue to

The Jewellery Council has had a busy year. We continue

arm themselves with information to prevent further

publish the magazine on behalf of the council and, as

to consider the needs of our retail members. In this

robberies.

such, have continued to conduct monthly surveys among retailers, wholesalers and diamond traders with the

regard, we have invited retailers to get involved in setting up the criteria for retail staff to obtain a “Professional

The Jewellery Manufacturers’ Association of SA

aim of providing statistics on the growth and decline of

Retail Skills Certificate”, which will give formal

continues to offer the “Jewellery Manufacturing Trade

jewellery and diamond sales, metal consumption and

recognition to their staff.

Certificate” (JMTC), which is a trade test set up by the

crime statistics in South Africa.

industry for the industry to recognise skills within the The institutions from which members receive

manufacturing environment.

Any association is only ever as strong as the total sum of its members and we therefore invite you to participate

preferential rates for processing credit cards are Nedbank and Diners Club and in this regard, we are in

Our manufacturing members once again participated

and make use of the opportunities offered by the

the process of negotiating better rates. Watch this space

at DTI-sponsored international exhibitions, the aim of

Jewellery Council.

for more on that as well.

which is to create export markets for our manufacturers. For more information on the council, its activities

We continue to work with retailers on the “Standardising

Despite ongoing attempts, the council has not yet been

and how to become part of a responsible jewellery

of Valuation Practices Recommended by the

successful in our submission to SABS to amend the ZA

community, visit our website on www.jewellery.org.za;

Jewellery Council of SA”, as well as the “Disclaimers

mark. We will persist until we achieve a positive outcome.

JCSA Closed Facebook for members: JCSA Members Group; or contact us on tel: (011) 484-5528 or e-mail:

Recommended by the Jewellery Council of SA” in an effort to protect them against legal claims.

A crucial project this year has been the decision to pursue a legal route relating to the new Mining Charter,

The council participated in the Times Media Wanted

which was published in September 2018. This decision

Watches, Jewellery & Luxury to promote the council and

was not taken lightly and we believe that obtaining a

the importance of consumers purchasing from jewellers

legal opinion and presenting this to the Department

who abide by a code of ethics and conduct.

of Mineral Resources will prove that the charter in its

admin@jewellery.org.za

05 JCSA ANNUAL REPORT | 2019

JCSA STRUCTURES Executive Committee representation Chairperson (Studio C)

Chris van Rensburg

CEO (JCSA)

Lorna Lloyd

Frankli Wild

Kevin Friedman

Vice-Chairperson (Sibahle Jewellery)

Nthabiseng Xaba

Ben & Co Designs

Bheki Ngema

Tshwane University of Technology

Dave Newman

Regional Structures Committees

KZN

These committees deal with matters specific to their regions and meet once a year, but more often if required. Members are able to address concerns and ideas to these committees.

Chairperson

Piyuve – Aroon Bhoora NWJ – Duncan Crosson

Western Cape Chairperson

CPM – Malcolm Jenner Prins & Prins – Petré Prins

Ashok Jewellers – Ashok Shah

David Bolding

Cherry Design Jewellery – Gary Cherry

KZN

Graham Miller Winhall & De Stadler – Peter Winhall EC WC

Peter Gilder – Brendon Parr

Eastern Cape Chairperson

Touchstone – Glenn Williams Ritco – Mathias Schmidt

Uwe Koetter – Johan Louw

Havilah Gold Creations – Carol Jackson

Panda Diamonds – Brian Magid

Jenni Collections – Bruce Gault

CPM – Sharon Eades

CPM – Renée Sangerhaus

2019 | JCSA ANNUAL REPORT 06

Board member representation REPRESENTATION

COMPANY

NAME

Medium

Studio C Manufacturing Jewellers

Chris van Rensburg

Large

Natal Wholesale Jewellers

Duncan Crosson

Ben & Co Designs

Bheki Ngema

Frankli Wild

Kevin Friedman

Medium

Jack Friedman

Howard Fevrier

Large

The Foschini Group

Lauren George

JAWDA – Wholesale

Jenni Collections

Bruce Gault

Jewellex Sub-Committee

JCSA CEO

Lorna Lloyd

Mining

Anglo American Platinum

Mark Freed/Adithi Naidoo

De Beers

Abel Madonsela

Mineral research

Mintek

Anne Mufamadi

Indian jewellery

Piyuve Jewellers

Aroon Bhoora

HDI jewellers

Sibahle Jewellery

Nthabiseng Xaba

Refineries

Metal Concentrators

Neville Crosse

Cape Precious Metals (co-opted)

Tom Altavilla

Diamond industry – global

Ernest Blom Diamonds

Ernie Blom

Retail interest group (Chevron)

Elegance Jewellers

Nick Mavrodaris

Publishing

Isikhova Media

Imraan Mahomed

Training

Tshwane University of Technology

Dave Newman

JMASA – Manufacturing Division

JASA – Retail Division Small

07 JCSA ANNUAL REPORT | 2019

Arbitration & Disciplinary Committee In terms of our Memorandum of Incorporation, the Arbitration & Disciplinary Sub-Committee holds office for a period of three years. The committee members are:

The Jewellery Council of SA is made up of the following

WESTERN CAPE GAUTENG

MEMBERSHIP REPORT

David Bolding

Varga

Deon Denysschen

Diamonds of Africa

Peter Winhall

Studio C

Chris van Rensburg

Goldmaster

Graham Miller

Julian Prior

Precision Setters

Prins & Prins

Petré Prins

EJP

Colin Campbell

Jewellers Dispute Solutions

Mervyn Malamed

Kai Schmidt (co-opted)

Kai Schmidt

Murcia and Co

Jarrid Murcia

divisions: • Jewellery Manufacturers’ Association of SA (JMASA)

(representing manufacturing jewellers). They also

represent the interests of art/contemporary

jewellers, CAD designers/technicians and a new

category, (the refineries) that was introduced earlier

this year.

• Jewellery & Watch Distributors’ Association of SA KWA-ZULU NATAL

EASTERN CAPE

(representing wholesalers and importers, as well as diamond dealers and mining houses).

Vijay Shah

Dennis Collins Jewellers

Dennis Collins

Piyuve

Aroon Bhoora

Havilah

Charlie Jackson

• Jewellers’ Association of SA (JASA) (representing

Shah Jewellers

Shikant Shah

R D'Amato Jewellers

Michel Nunes

jewellery retailers and chain stores).

• Service members that are from supporting HUMAN RESOURCES AT JCSA The council’s staff complement is as follows:

industries, eg insurance companies, security

companies, computer software, marketing and

advertising companies, etc.

OFFICE ASSISTANT Priviledge Ncube EXECUTIVE PA Elsa da Silva CEO Lorna Lloyd

ADMIN ASSISTANT Bavina Vassan

Non-profit Company The Jewellery Council of SA is registered as a non-profit company and its NPO number is 067-544-NPO. In terms of Section 18A, taxpayers are able to make a deduction

ACCOUNTANT Andira Maharaj RECEPTIONIST Kirsten Lenton

from their taxable income when they donate to NPOs.

2019 | JCSA ANNUAL REPORT 08

MEMBERSHIP CATEGORY

OCTOBER 2018

OCTOBER 2019

% INCREASE/DECREASE

JCSA direct membership total Of which are: services members

149 18

142 21

- 4,69 16,66

JASA membership total JASA individual membership (this excludes chain stores) Including second-hand dealers JASA chains membership

970 228

838 211

-13,60 -7,45

742

627

-15,49

JMASA membership total Of which are: Corporate Emerging One-man businesses Student membership (no charge)

225 150 18 40 17

239 113 27 46 53

6,22 -24,66 50,00 15,00 211,76

Note that the chain stores consist of the following: - The Foschini Group â&#x20AC;&#x201C; TFG (American Swiss, Sterns and Foschini stores with jewellery) - Massmart (Game) - Arthur Kaplan Jewellers - DW Bullion - NWJ Fine Jewellery

09 JCSA ANNUAL REPORT | 2019

CONSUMER COMPLAINTS The JCSA is an Alternative Dispute Resolution Agent,

The members sign a Code of Ethics and Conduct and are

This means that we will not be able to assist with com-

which currently functions only in regard to complaints

subordinate to the mediation and arbitration processes of

plaints against non-members, as we have no jurisdiction

against members in good standing with the council.

the council by virtue of its Memorandum of Incorporation.

over them.

Consumer complaints MONTH

Statement of Claim and Arbitrations Between Members RESOLVED

UNRESOLVED

MONTH

RESOLVED

UNRESOLVED

JANUARY

2 – cautionary notices circulated

FEBRUARY

1 – referred to courts

MARCH

1 – member went to litigation

APRIL

2 – referred to courts

MAY

JUNE

JULY

AUGUST

2 SEPTEMBER

OCTOBER

2 – in process

NOVEMBER

TOTAL

SEPTEMBER

OCTOBER

NOVEMBER

TOTAL

1 – legal counsel involved and JCSA withdrew from matter

1 – unresolved and matter referred to legal process

1 – awaiting consumer response

1 – legal counsel involved and JCSA withdrew from matter

1 – in process 22

2019 | JCSA ANNUAL REPORT 10

Art Jewellers The art/contemporary jewellers sub-division of the JMASA, represented by Geraldine Fenn from Tinsel on the Executive Committee, have resumed the search for avenues to expose their products on retail platforms. In this regard, we approached many retail exhibitions over the past year. However, none were suitable. The council has recently taken a decision to look at the feasibility of hosting a retail jewellery show that would run alongside Jewellex. Many considerations need to be made when taking ownership of a retail show, particularly the high

Mediation, Arbitration and Cautionary Notices

financial risk factors and, of course, support from the

Members continue to make use

assist them in the course of their

facie evidence will we be entitled to

of the mediation and arbitration

duties and will make a suitable

circulate cautionary notices.

facilities offered by the council in

award on the matter, as well as

instances where disputes arise

the costs. Such award may also

The Executive Committee of the

from time to time. This facility

become legally binding through

council agreed that when the

refers specifically to issues

application to the High Court.

issue of dispute relates purely

such as outstanding debts and

to failure to pay for goods or

other disagreements and allows

Although the system of sending

services, the council will continue

members to reach amicable

out cautionary notices has been

to mediate to a certain point, after

solutions without spending huge

in operation for many years, the

which members will be advised

amounts on legal fees.

council received legal advice this

to pursue such matters through

year to desist from this practice.

traditional legal channels, such

Arbitration proceedings are

Our attorney advised that naming

as through litigation in the civil

subject to the Arbitration Act

and shaming is a dangerous area

courts. It is NOT the function of

and any amendments thereof.

that one should avoid, as it may

the board to act as a debt collector

The Arbitration Committee

lead to exposing the council to

and it does not have the capacity

makes use of professionals to

lawsuits. Only once we have prima

to engage in such endeavours.

exhibitors and consumer buyers. CAD Technicians and Designers Edna de Bruyn from Design @ 50 represents the interests of CAD technicians and designers on the Executive Committee of the JMASA. A group of experts has started work on the development of a Jewellery Technician (CAD) qualification with the Mining Qualification Authority. It is anticipated that this qualification will be completed by mid-2020. STRATEGIC PLAN The Vice-Chairperson, Nthabiseng Xaba, has commenced a project of determining the feasibility of developing various identified strategic objectives, as follows: • Online platform

• Consumer show

• Advertising campaign

• Permanent store/gallery

11 JCSA ANNUAL REPORT | 2019

These objectives will require funding and, as

Airport regarding a new requirement, which has been

such, Ms Xaba has been looking at various funding

implemented, for tourists to do commercial exports

mechanisms within government, such as the

for VAT refund claims over R100 000, even though goods

Department of Arts & Culture, the National Lottery,

purchased were for personal use.

DTI and SEDA. Once budgets are approved (which is not a guarantee), the strategic objectives will be

The council expressed its concern that this new

developed into project plans for implementation.

requirements and procedures implemented by SARS will have a negative effect on the sale of jewellery

LEGISLATION

to tourists. While we understand that the country’s

Legislation – Foreign Tourist Requirement to

resources need to be protected, the council has been

Provide Proof of Cash Withdrawals

adamant that we cannot support such a system. An

Discussions have continued with the National Treasury

agreement was reached with SARS Customs that

and SA National Revenue Service (SARS) relating to the

members will be able to communicate proof of large

legislation which requires foreign tourists to declare proof

sales to SARS Customs prior to tourists leaving

of cash drawings over R10 000. Most tourists are unaware

the country in order to prove legitimate sales, thus

of this requirement and, unfortunately, do not qualify to

eliminating the new, cumbersome requirements by

receive their VAT refunds when exiting the country.

Customs. The council has furthermore offered to facilitate training opportunities to customs staff on

The JCSA made submissions to SARS and the National

identification of watches, diamonds and jewellery.

Treasury to increase the threshold to US$10 000. South African Diamonds & Precious Metal Regulator Since no response has been received to date, the council

(SADPMR)

met with SARS Customs at OR Tambo International Airport,

The term of the current board of the SADPMR has

at which this discussion was tabled. This department is

ended and, as such, Bernard Stern, the council’s

willing to assist in presenting our submission to the relevant

representative, has stepped aside. It is anticipated that

authorities.

the new board will be appointed in the coming month.

New Requirement by SARS Customs –VAT Refunds of R100 000

Meetings of the Jewellery Industry Liaison Committee,

The JCSA and Diamond Dealers Club of SA have been in

which was set up between the council and the SADPMR,

discussions with SARS Customs at OR Tambo International

have been put on hold due to the impending legal matter

2019 | JCSA ANNUAL REPORT 12

which the council has pursued, following the Mining Charter

The purpose of the fund is to contribute to transfor-

which was published in September 2019. The council

mation and the integration of technology and design in

continues to assist members in approaching the Regulator

the jewellery industry by acknowledging excellence in

when having trouble in applying for their permits.

jewellery design. This will support selected training initiatives focused on developing capacity to utilise

The New Mining Charter

technology in the production of jewellery or other

The council and its members are of the opinion that the

identified needy projects.

Mining Charter published in September 2018 will have a detrimental effect on the jewellery industry. As such, the

This year, a donation of R5 000 was made to the

council started proceedings of obtaining a legal opinion,

Caring4Girls Charity.

the ultimate aim of which is to protect the jewellery industry from shrinking even further.

JEWELLERY MANUFACTURERS’ ASSOCIATION OF SA (JMASA) CONSTITUTION

ZA Mark

The JMASA, which is the manufacturing division

You may recall that the council made a submission to

of the JCSA, amended its Constitution at its AGM

the SABS a year ago relating to the ZA mark, to remove

held in May. The Constitution sets out the rules

the oval around the “ZA”. Although very little headway

and provides a framework for the running of

has been made with SABS, four of our JMASA Executive

this division.

members have been appointed to the board of the SABS, whose aim will be to push through the vote to remove the

2019 ANNUAL ROADSHOWS

oval from the legislated “ZA” mark.

The JCSA held its annual national roadshows in Durban, Port Elizabeth, Cape Town,

SOCIAL RESPONSIBILITY

Johannesburg and Pretoria in June.

Chairperson’s Fund The Chairperson of the council, Chris van Rensburg,

This is an opportunity to report on projects

established the Chairperson’s Fund in 2007. He

and to network with the jewellery industry

continues to donate his Chairperson’s remuneration to

in those regions. Thank you to our sponsor,

this fund. In addition, 25% of the board’s unclaimed fees

the Gemological Institute of America,

for travel expenses go into the fund, as well as fees of

for its sponsorship of all the roadshows

members who were unable to attend the meeting.

nationally.

13 JCSA ANNUAL REPORT | 2019

FINANCIAL REPORT - JEWELLERY COUNCIL OF SA Financial Statements for the year ended 31 December 2018 Statement of Financial Position as at 31 December 2018 Figures in Rand

Note(s)

2018

2017

Assets

118 107

98 010

Investments in associates

400 000

Loans to group companies

97 295

615 402

595 305

324 675

943 279

Prepayments

2 421

5 421

5 631 167

5 597 345

5 958 263

6 546 045

Total Assets

6 573 665

7 141 350

5 710 921

6 549 646

Non-Current Assets Property, plant and equipment

Current Assets Trade and other receivables Cash and cash equivalents

Equity and Liabilities Equity Retained income Liabilities Current Liabilities Trade and other payables

777 430

418 253

Provisions

85 314

173 451

862 744

591 704

Total Equity and Liabilities

6 573 665

7 141 350

2019 | JCSA ANNUAL REPORT 14

JCSA Debtors Book

PROJECTS

Debtors whose 2018 membership fees are still outstanding

Jewellex Africa 2019

this year and who have already been suspended will be

Although the show was smaller and attendance of both

handed over to the Accountability Credit Bureau to be

exhibitors and visitors was poor, Jewellex Africa 2019

blacklisted. The CEO ensures that due process is followed

proved to be successful. This, we believe, is an international

in this regard.

phenomenon and is attributed to the economic climate, the

GENERAL STATISTICS

2015

2016

2017

2018

2019

Exhibitors – total

114

113

100

rise in the price of gold and a volatile currency.

Space given away (m²)

191

The council’s Accounts Department takes much care to

2019 Sponsors

Space sold (m²)

1 481

1 419

1 208

1 056

900

ensure that all fees are collected; however, 2019 debtors

The Jewellery Council of SA relies on the generosity of our

will be suspended should payment not be received.

sponsors in helping to make Jewellex a great success.

Total exhibition space (m²)

1 672

1 494

1 265

1 134

996

1 720

1 576

Suspension of Members

Thank you again for your generous support Anglo American Platinum

Jewellex Cocktail Function

Brinks Lanyards Protea Diamonds

Carrier bags

Metal Concentrators

MetCon Coffee Shop and Jewellery Council Collection Awards

Rand Refinery

Jewellex Business Breakfast

Cape Precious Metals (CPM)

CPM Chill Lounge and Jewellery Council Collection Awards

BYL Diamonds

Registration

IBV Gold

Branded water bottles

Gemfields Wi-Fi Dept of Trade & Industry (DTI)

DTI Pavilion

Ekurhuleni Jewellery Project

Winners’ trophies – Jewellery Council Collection Awards

Treger Jewellery Company

Prizes

Treger Brands Retail

Prizes

EGL

Branded pens

Bryte Insurance

Prizes

Goliath & Goliath

Melville Comedy Club prizes

Total space including aisles Jewellex Function – guests

220

165

230

222

250

Jewellex Breakfast

Total visitors

1 578 1 571 1 487 1 364 1 154

15 JCSA ANNUAL REPORT | 2019

Visitors’ feedback

Speaker’s Corner

Long-Standing Exhibitor Awards

The majority of visitors to Jewellex stated that their

The “Speaker’s Corner”, which was once again part of

Newly introduced, the “2019 Exhibitor Long-Standing

key objectives were to check out new brands/products/

the MetCon Coffee Shop, offered visitors and exhibitors

Awards” were presented at the Jewellex Cocktail

services, network with the industry and strengthen

an opportunity to listen and learn to conversations

Function to honour exhibitors that have been loyal

relationships with current suppliers.

ranging from interviews by MetCon with important

supporters of the show for over 10 years. The awards

industry players on topics such as MetCon’s Six

were also intended to thank those com¬panies for their

Visitors and exhibitors continue to prefer the use of

Rings competition, to “Training in Tough Times and

contribution and support over the years.

the Sandton Convention Centre. The venue is central

Sustainability” and a round-table discussion on man-

to hotels and public transport, especially for out-of-

made diamonds versus natural diamonds.

A Business Breakfast was hosted at Jewellex on Sunday,

towners. It is also seen as a more central business hub and better suited to hosting a jewellery exhibition.

Business breakfast

CPM Chill Lounge

6 October for the first time in many years and was

Cape Precious Metals sponsored and hosted its