The Chinese jewelery market is booming and it is not just luxury brands that are reaping the benefits. New data from “China Industry Development Research” shows an annual growth rate of 7% for goods made of gold, silver, platinum or other precious metals since 2014. This means there are more opportunities available than ever, both locally and internationally, which should be carefully considered by designers looking to conquer new markets…
Although Chinese jewelry sales declined at the start of the pandemic, people turned to gold and silver out of hunger. In just three months – from January 1 to March 31, 2021 – China’s purchases totaled nearly $15 billion in jewelry alone, an 81% increase from the previous year. Gold consumption during this period has reached 191 tonnes – higher than the level for seven consecutive years – while polished diamonds top the 2019 figures, reaching $722 million in the four quarters so far; Which is equivalent to the annual average price per carat which has not been exceeded since 2016.….
Jewelry in China: A Thriving Market
In recent years, as a result of China’s economic development, the Chinese market has rapidly become a leader in the jewelry industry with more than 40% of the global market share, attracting companies from all over the world, ranging from international brands to small, every day. Is. Startup. China ranks first in jewelry, followed by America. In 2018, the Chinese jewelry market was worth 697 billion yuan and is expected to reach 874 billion yuan by 2022. While most of us think that Chinese consumers only want luxury jewelry, it shows that 64% of sales will come from non-luxury. Goods between 2021 and 2022. So even if you don’t sell luxury goods, your business can still do well in China, as long as you target middle-class buyers. More information in this article.
Typical Consumers in China
Your main target will be the upper and middle class of Chinese society. However, since they are more and more willing to travel, they will have high expectations when it comes to the quality of your products. Chinese consumers are looking for creative and unique jewelry and can spend thousands of dollars if they are interested. They spend about 40% of their budget on items like jewelry and watches.
Note: Chinese Generation Z (27% of the Chinese population) is spending more and more of its disposable income on the purchase of luxury goods.
Therefore, a successful marketing strategy requires a thorough understanding of traditional Chinese culture. To do this, you will need to take advantage of various opportunities and opportunities. For example, in addition to the wedding market, many jewelry companies are targeting the market for gifts for families and friends, especially gifts for newborns or birthdays.
When it comes to jewelry, gold is a clear priority for Chinese consumers. Gold is symbolic in China, representing financial and spiritual protection (and belonging to the upper class, although this is not true for younger generations). Generation Z is no longer so interested in gold, but in the meaning of every gem and stone.
However, the most important trend in the Chinese jewelery market is digital, not aesthetic.
The rapid growth of e-commerce in China has forced traditional retailers to focus on the unique qualities of shopping, leading to the development of integrated multi-channel sales strategies, in which online stores and platforms complement each other. .
Online shopping has indeed become the top national pastime in China, with 77% of respondents choosing it as their favorite leisure activity. 80% of consumers research and learn about jewelry products and 60% of them buy over the internet.
Almost all the major players in the jewelry industry in China have their own stores on Tmall and/or JD.com. In addition, Pinduoduo can be another good option for selling your products on the Internet.
sell in china
Harold Parisot, president of the Chinese Business Club, said:
“To export and sell in China, you have to understand the business mindset of China.”
Whether for large or small companies, with or without a presence in the Chinese market, what is needed in China is branding, Before opening an online store on an e-commerce platform, brands should focus on their branding and e-reputation which are essential for selling products in China. After developing your community, it will be possible to open an online store. For the jewelry market, Tmall and especially Tmall Luxury Pavilion is the most suitable e-commerce site to reach out to the right customers.
To develop their branding, to support their e-commerce strategy, brands can use WeChat, Weibo, Xiaohongshu and Douyin:
- reach Chinese consumers;
- Build a brand image;
- Increase brand awareness;
- Increase their e-reputation;
- Promotion of jewelry products;
- products to sell.
More information on social networks in China.
For example, Cartier was the first luxury jewelry brand to use WeChat instant ads. Thanks to his efforts in marketing campaigns on this platform, Cartier’s WeChat account has gained immense popularity. Cartier’s marketing has helped drive brand awareness and consumer desire.
What is Tmall Luxury Pavilion?
The pavilion was launched in 2017 and has over 750 million active users. Until recently, fears of counterfeiting kept many luxury giants away from Chinese e-commerce platforms, which were often accused of not having enough control over online sales to protect brands. But thanks to its commercial policy, Tmall guarantees its consumers only genuine products of superior quality.
Tmall’s luxury pavilion is a unique platform in the world as it is the one and only platform where brands have complete control over everything. Indeed, brands can choose pricing, business strategy and communication strategy.
This recent leap in adoption of the pavilion is due to its unique and distinctive environment that allows brands to bring the same experience and exclusivity of their stores to Chinese online consumers.
In 2021, the focus is on something called the “new luxuries,” grouped together under the luxury Soho section. Like New York’s SoHo neighborhood, it is populated with youth brands, many of which are made in Italy and emphasize sustainability. Brand value is becoming increasingly important in the shopping choices of Chinese consumers. The luxury Soho project, which also hosts some of the brands’ point-of-sales, was designed to engage with younger consumers.
This platform is a service reserved for luxury brands. This means that only select or invited luxury brands can join the platform. All payments are made by Alipay. It gives brands a safe space where they won’t be overcrowded.
As for the costs of the platform, there are annual subscription fees and sales commissions based on the category of products.
Consumers come here for a premium shopping experience where in-store merchandise is featured.
Tmall Global: An Alternative to the Tmall Luxury Pavillon
Tmall Global is a cross-border B2C platform owned by Alibaba Group, a popular online marketplace in China where many international brands sell their products. Today, Tmall is the largest Chinese e-commerce platform. More information here.
Tmall Global currently hosts over 25,000 brands from 92 countries and territories. It has become the easiest way to enter the Chinese market as Tmall International provides a cross-border business model for many foreign brands and retailers to expand their business in China.