MARKET WATCHING
SAJN speaks to Roland Kopel and David Mayers of Emanuel’s Jewellers in Nelson Mandela Square, Johannesburg. The local retail environment has slowed down over the past few years. “People are more careful and conservative about spending money on luxury goods,” says Roland Kopel, shareholder in Emanuel’s Jewellers. “But there is a growth in sales of men’s timepieces, as opposed to those of ladies.” Sadly, this is not news to most retail watch and jewellery outlets but, fortunately, Emanuel’s is located in a very favourable position at Nelson Mandela Square in Sandton City. This is a tourist hot-spot and the store attracts overseas visitors who are quick to observe the advantage of purchasing luxury goods here with the exchange rate in their favour. “It is cheaper for them to buy a watch in South Africa, so they do take advantage of this,” says Kopel. Conversely, locals are at a disadvantage and this market has shrunk considerably. It is very important to sell your product based on current world prices, as our South African clientele travel and shop around overseas, comparing prices. The poor trading conditions in Europe have not helped us here, as some local jewellers are discounting to achieve stock turnaround, says Kopel. “The offer to our clients must cover all segments of brands and satisfy potential clients, while simultaneously offering personalised service,” he believes. Tourists are also captivated by an attractive window display and in this respect Emanuel’s has decided views – primarily that “less is more”. “Don’t overcrowd,” is general manager David Mayers' maxim. While he and Kopel employ professionals to do the job, they are in the main guided by the brands themselves, who supply display material. One attraction is the mechanical watch, particularly those with a see-through caseback covered by a sapphire crystal, as watch-lovers enjoy observing the watch movement ticking away. The current trend for comfortable rubber straps is proving popular, particularly among sporting types as it obviates sweating and a possible allergic
The retail outlook
SA JEWELLERY NEWS – APRIL 2012
reaction to a leather band or metal bracelet. Contrary to the current trend of the under-25s not owning a watch, Emanuel’s believe that in some cases it has become a status symbol for them to wear a good timepiece. The store's favourable position, as well as other factors such as good service from staff, which also encourages recommendation, contribute to its success, as do prominent billboards and magazine advertisements and in these aspects this is accomplished in tandem with the brands themselves. “It works,” says Kopel, who plans hand-in-hand with the highend brands such as Richemont. A popular choice is Frederique Constant’s Heart-Beat design, particularly with sporting types. “We guide them towards the right product,” comments Mayers, who has found that sports watches are the most popular choice, particularly among men. Emanuel’s currently has a staff complement of five who play an important role in actual sales. They are given specialised training – this, too, in conjunction with the brands. Staff are chosen for their positive approach – negativity is frowned upon and this is taken into account when selecting applicants. David and Larry Mayers have a passion for selling
and for imparting their knowledge of products to clients. They also realise that the customer is the most important person in the store, according to Mayers, whether he is buying a top-end model or nothing. So they emphasise this approach to their staff. Staff motivation is another important factor, especially during quiet periods. While it is expected that the staff work hard, they also need time off, particularly as today a watch and jewellery store is a seven-days-a week, 12-hours a-day job, which is a concern of Kopel’s. “Staff are like family as we spend so much time together and respect must be mutual.” On these aspects the managing partners agree. Finally, words of advice from Kopel are that while competition is important in the retail trade, discounting kills the profit margin as well as the product itself. “Trading will be tough in the coming year and retailers need to be cautious by not carrying excessive stocks and in replenishing items,” he warns. “Buying over the Internet has increased, but this is risky for the consumer as he pays before viewing the merchandise, which might be second-hand or a fake. It may seem cheaper, but in the end the customer loses out on the warranty and authenticity of the product,” Kopel cautions. (Left): David Mayers of Emanuel's Jewellers.
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