Australian south sea pearls

 

Paspaley Pearling Company looks back at the year in the pearl sector and ahead at what the Year of the Monkey will bring. Company executive director Peter Bracher shares with JNA Paspaley’s strategic priorities in 2016 and discusses the importance of consumer education in today’s competitive luxury goods market.

 

Digital initiatives

 

In spite of the economic headwinds caused by stalling economies and a general decline in consumption, Bracher described 2015 as a “good year overall with consistent demand and steady prices throughout the year.”

 

“The result of the Christie’s Magnificent Jewels Auction in December was a nice way to finish 2015,” he said.“We offered three pieces at the auction including two featuring natural pearls and one featuring an important cultured pearl. The standout was the Paspaley natural pearl collar, which achieved $260,000 over its estimated reserve. The necklace was designed by Edmond Chin of Etcetera, and featured an impressive selection of graduated natural button shaped pearls.”

 

Among Paspaley’s key achievements in 2015 were the serious strides it made in consumer education and customer engagement through its digital platforms.The pristine waters of Australia’s North West where Paspaley farms are located.

 

“For the first time in 2015, we provided online access to all Paspaley auction attendees. All communication and results are now posted on Australiansouthseapearls.com/auctions – allowing customers to remotely receive all the information they require postauction,” Bracher said.

 

The pearling specialist also launched its @Australianpearls Instagram page designed to provide further education and interest in the category. “The next step will be launching an Australian Pearls profile on WeChat to engage with the Chinese market and increase awareness of the characteristics that make Australian pearls so rare and valuable,” Bracher added.

 

Consumer education

 

Asked to share his business outlook for the South Sea pearl market this year, Bracher said “production levels should remain stable for the foreseeable future and we expect prices to reflect this.”

 

“Most qualities of South Sea pearls increased in price between 2013 and the first half of 2015. During the last year, prices of some commodities including diamonds and gold fell quite significantly while South Sea pearl prices remained quite stable. Short of an uncontrollable event such as a currency crisis or major conflict, we have no reason to expect the market to deteriorate significantly,” he explained.

 

Consumer education remains a major challenge for the pearl sector in the coming years.

 

“Educating the market about the various pearl types within the pearl category is likely to remain the biggest challenge facing our industry,” according to Bracher.

 

“We believe that clearly differentiating the distinct qualities of the various pearl types is essential to driving demand for the entire category. There remains a great deal of confusion among end-consumers

about the differences between natural pearls and cultured pearls, treated pearls and untreated pearls,

saltwater pearls and freshwater pearls. Each category has its own desirable characteristics and the clearer these are to end-consumers, the more likely they are to engage with the category. If end consumers are confused or unsure about which type of pearl is best for them or the value it represents, they are likely to invest in another product altogether.”

 

Sustainable gems

 

Fully embracing leadership in environmental stewardship, Paspaley is currently in the process of being certified by an independent, internationally recognised marine conservation organisation.