How to enter China's jewellery industry market 2022

Intro

China’s and Hong Kong’s jewellery industry is a high potential market for promoting brands and products. The Chinese jewellery market has seen some volatility as of lately, with the country reeling from covid-19, it remains an amazing place to do business in 2022. According to statistics by NBS (National Bureau of Statistics), assets within this sector will reach 231 billion RMB and total revenue at 392 billion RMB – which is not too bad considering all that went down around them. The Chinese jewellery manufacturers are in a new growth period as it transitions from traditional sales methods to online e-commerce.

In this article, we explore the market trends of China’s jewellery industry and marketing strategies.

The trends of China’s jewellery industry

Normally, traditional jewellery is for investments and marriage proposals. The older Chinese consumers tend to buy gold products, gold jewellery, sterling silver, or broken jewellery from brands and companies, such as Lao Feng Xiang. However, the number of younger buyers increased since 2018 as companies started a new strategy to broaden the Chinese consumer groups under twenty-five. We will discuss their strategy with traditional wholesale brands and fashion wholesale brands.

Traditional manufacturers live broadcast to reach young consumers with lower prices, design products, and brand images to deepen their sense of identity with brands and products. For example, Chow Tai Fook launched the Hello Kitty limited edition targeting the younger market. They achieved great success with a high number of sales.

As for the market of fashion jewellery wholesale brand, with the improvement of people’s daily consumption level and the expansion of the domestic middle-class population, jewellery customisation has gradually become the choice. They are eager to have personalised symbols, and unique pursuits for material selection, style conception, design and drawing, exclusive production to the final product, and seek the psychological satisfaction and enjoyment brought by “speciality”.

Fashion jewellery has a high design premium with low material cost and a gross profit margin in the Chinese market. Fashion jewellery brands or international brands mostly use cheaper raw materials in product design; for example, international brands Pandora uses Sterling Silver while Hefang opts for artificial crystals. It is around 1k-2K RMB respectively but highly valued because of the creative designs in China’s tier cities. It is easy to find their personal preferences or style in there.

Fashion jewellery brands make sure their products stand out. The designers spend more time developing new designs and improving quality while engaging in marketing campaigns or advertisements on social media platforms popular among younger audiences. One example of this trend is with Swarovski: In 2016, sales reached 1 billion RMB (around $131M USD), an increase compared with 2015 when it made 2billion yuan ($293M). China successfully surpassed America’s market share for the company!

Live broadcasting marketing in China’s jewellery industry

In the epidemic period, live broadcasting has become vital for marketing without leaving home, and scarcity and high unit price of China’s jewellery wholesale market has also benefited it. The epidemic has accelerated live broadcast e-commerce platform development. The scale of transaction size of live e-commerce in 2018/19 was 150.2 billion RMB and 451.3 billion RMB, a significant increase of 618%.In the past year, both the sales and sales of jewellery live broadcasts have brought significant growth.

According to CBNData’s big data, the number of monthly active users under twenty-five in this demographic accounted for 12.9% and spent 8.7%. The monthly active users were mainly people between eighteen – thirty-four years old. Also, the fashion wholesale brands can broadcast products at low costs and provide more design options for younger people who want something unique in a competitive market – all while helping the company establish itself.

Wholesalers use new technologies such as social media networks or web streaming platforms to connect them with audiences worldwide, so they promote not only themselves but also high-quality goods like bracelets made from Swarovski elements.

The advantage of live broadcasting marketing in the Chinese fashion jewellery industry

* The traffic of live broadcasting

In a world where the traditional e-commerce model uses algorithms to distribute traffic, anchors can take the effect of their fans to know the jewellery brands.

Now, the online streamer can introduce and share brands with the fans base compared with traditional e-commerce models that use algorithms for distribution (consumers search and only see related products). The new model relies on physical stores or retailers with an established customer base as “Online_streamer”.

The audience can view the responses to stimulate the desire for purchasing, which helps people who need knowledge about brands. They establish an image by brand exposure through “preferential price”, hot sales, or free shipping while providing benefits so potential consumers can gain awareness of your company before making their decision. The industry gears these strategies towards building positive feelings instead of negative ones like fear-mongering, which may arise from other sources. It also can expand brand traffic and a new fan base for the brand.

* Shopping efficiency

Live e-commerce is more interactive and instantaneous than traditional e-commerce models based on static graphics and text. In a world where shopping for jewellery is already an experience to be had online, live-streaming has increased conversion rates by providing “preferential prices” that can trigger purchasing behaviour.

Taobao is a popular website for purchasing consumer items. In China, the shopping conversion rates of Taobao and Douyin live broadcasting reached 90%, with Kuaishou as its main competitor at 75%. These numbers show how these apps appeal even though they may not be more mainstream than other forms of media such as TV commercials or radio ads. The data retrieved from different sources I compiled into one article, which gave insight about what consumers want today-especially, those living in Asia where competition between sites has higher profits.

Conclusion

This article is a brief introduction to the Chinese fashion jewellery industry. There are still numerous strategies for foreign brands to enter China’s jewellery marketing. To establish a strong presence within the market and among consumers overall, contact Enlybee. We will help you strategically utilise a variety of social media networks best suited to your needs and also our distribution partner network. Let’s discuss your strategic plan to enter China fashion jewellery industry! Book a call now.