Angus & Coote and Goldmark have been around for a long, long time in Australia and both have a pretty distinguished record of having valuable brands in the marketplace.
However, in recent times, for whatever reason, their marketing departments and management have caved in to pressure and decided to go down the price path.
The terms “jewellery” and “discounted price” seem to be an oxymoron – as the very thought of jewellery tends to paint a picture in one’s mind of high class and value.
However, when walking through a big shopping centre recently, I took these photographs of the two jewellers going “head-to-head” in a price war.
At first glance, you might think to yourself “Gee, I don’t know what JD is going on about, as their displays seem to be bright and full of wow factor?”
Maybe so, but look at what they’re doing to their brand.
They have all of a sudden gone from providing “a high perceived value” series of jewellery items and gifts to now looking much the same as a $2 Warehouse Store.
And look what has happened because they are concentrating on price.
One store puts up 25% discount signs and the one opposite it follows suit. (And believe me, these stores are directly opposite each other in the centre!)
And what happens next?
Angus & Coote puts up a 50% discount sign and Goldmark follows with the same offer thirty seconds later.
In a worst case scenario, this madness could keep going until they both went out of business.
And therein lies the philosophy of going down the preferred path of providing a higher perceived value, rather than the never-ending spiral of trying to keep up with the Jones’ by using price discounts as your marketing tool.
When it gets to the stage where retailers with a high value product are selling their souls like a discount department store, it’s time that their management gained a “wake-up call” and got back to the reality of understanding who their customers are and why they were shopping there in the first place all those years ago.