Shan Yongming Talks about the Future Trend of China Jewelry Industry

The jewelry industry has been a hot industry in the country, and more and more consumers are keen on the purchase of jewelry. However, there are still many problems in the domestic jewelry market. Problems such as vicious competition caused by price wars, shoddy sales, and opaque sales techniques have caused consumers to lose confidence in the domestic jewelry market. In recent years, due to the impact of Western luxury goods, consumers have rushed to purchase European big jewelry. The domestic jewelry industry is in urgent need of a new round of standardized market operations, and the entire industry is moving in a benign ecological direction. In response to the future development trend of the jewelry industry, the founder of the excavation factory, Shan Yongming, was interviewed.

The jewellery industry will develop the foreign jewellery market towards the compound system for a long period of time, and it has already formed a mature market operation system. Shan Yongming mentioned that the development of China's jewelry industry has its own limitations. Because the domestic jewelry industry has a low starting point and started late, relatively speaking, the development of the jewelry industry still lags behind.

Based on his 20-year career experience, Shan Yongming stated that the jewellery industry will develop toward a complex system. The jewellery industry will not only upgrade from the business model, but also develop a new multi-in-one business model. It will also further improve the internal management of jewellery brand companies and offline entities. In the transformation of China’s economic situation, there are some brands in the jewelry industry that are already taking the e-commerce model. However, Shan Yongming insists on the “consumer line inspection cannot be replaced”, arguing that “jewelry is not afraid of e-commerce” and “customers cannot Online pictures to identify the quality of jade, in particular, need to personally experience product quality."

Product Innovation The international fashion jewellery industry is no longer the “prosperous world of gold” but the “gold and gold alone” situation. The jade industry has become the new main force in the jewelry market and has made innovations in technology. With a keen sense of industry, Shan Yongming applied the gold-inlaid jade technology during the Olympics to jade design. Therefore, the extraction factory has pioneered gold-inlaid lapis lazuli, which meets the needs of young audiences from a visual aesthetic perspective. In the future of the jewelry industry, the audience will tend to be younger, and there will be more demand for visual design of jewelry. The jewellery industry has the foundation of technological innovation and can greatly satisfy the richness of branded products.

Purchasing from price-oriented to cultural value transmission The jewellery industry has been categorized as luxury goods, and its price has become the first standard for measuring brands. Consumers buying jewellery meets a supreme consumer psychology. Little is known about the historical culture behind the brand. “Diamonds are long-lasting and one forever” once opened China's first luxury goods market. Since then, diamonds have become a symbol of love and loyalty. The hardcover of European luxury goods is attracting the attention of consumers, and it has imperceptibly affected the psychological buying drive of consumers. However, Western luxury goods have swept the Chinese jewelry market and the domestic jewelry brands have been affected. According to this, Shan Yongming stated that from the definition of luxury goods, Western luxury goods are not "luxury goods" in the strict sense. The brand value it embodies is more derived from the strong promotion of the brand. This is a side cultural invasion. For the domestic jewelry industry, jade-based luxury items have not risen. The 8,000 years of history and culture behind jade have not been dug deep. The jewelry industry of the future must inevitably spread the Chinese culture carried by the product itself, instead of simply guiding the price. In this regard, the extraction factory has been making efforts to spread the jade culture. Shan Yongming opened a business school to popularize the jade culture. At the same time, Shan Yongming said, “The industry should unite and jointly contribute to the spread of jade culture. China should tap into the value of Chinese culture and create luxury goods with Chinese attributes.”

Jade senior customization highlights the new situation of jade consumption As the purchasing power of younger consumers increases, the demand for consumer spirits continues to expand, and more and more people show their individuality and focus on customized services. The jewellery market is no longer just the pursuit of a normative design, and homogenized products will slowly exit the market. This also activated the fieryness of the custom market. However, customization is not unique to a certain brand. As far as Tiantian industry is concerned, customization has very high requirements for brand strength. Due to the scarcity of Hetian jade itself, it is not easy to purchase the good seed. It is possible to realize the advanced customization of Hetian jade by a brand with abundant raw material storage. For consumers, this is also a good time to test brand strength.

Jade industry trends The second- and third-tier cities have shown tremendous growth potential. According to Shan Yongming's research, from 2008 to 2009, over 60% of China's luxury goods consumption growth came from second and third-tier cities such as Zhuhai, Shaoxing and Wuxi. With the rapid growth of China's economy and the improvement of people’s living standards in the 1990s, residents in second and third tier cities in China have also begun to exhibit certain high-end jewellery consumption capabilities.

Channel expansion has become the core of competition From the aspect of the jade industry chain, it mainly involves five steps: raw material extraction, processing and smelting, rough processing, jewelry production and sales. With the deepening of the industrialization division and the fierce competition in the market, the position of the pure manufacturing business in the industrial chain is continuously declining, and the value of design and development, marketing network and after-sales service are increasing. Therefore, rapid expansion, through the establishment of a nationwide marketing network to control the terminal to obtain sales initiative, bring more premium to the brand, become an inevitable choice for more brands.

From the point of view of channel construction, the marketing model of the excavation factory brand is mainly divided into self-employed, distribution and joining. These three models have their own advantages and disadvantages in terms of channel development, brand building and profitability. How to choose the channel expansion model that best suits the current state of the company's operations and realize the refined management and operation of the channel has become a major issue facing jewelry companies at this stage.

Hetian jade style, technology has become an important standard for consumers to buy jewelry Hetian jade's biggest feature is decoration, so style design is the primary consideration when consumers buy jewelry. From the survey data of "China's jade jewellery consumption in 2014***", the style of jewelry is the most important factor for consumers to choose to purchase products. Whether the style design can meet the consumer's aesthetics directly determines whether the consumer is interested in purchasing the style or brand of jewelry.

With the continuous improvement of the design capabilities of the industry, jade styles are more complex and the difficulty of manufacturing is increasing. Higher demands are placed on production equipment and production processes. Processes are also becoming more and more important in consumers' consideration of jewelry purchase.

Industry Concentration Gradually increasing capital strength and brand influence is crucial to the development of jewellery brand companies and is the basis for its expansion channels. Since ordinary consumers are difficult to discern the quality and value of Hetian jade, most consumers can only rely on the recognition and trust of jewelry brands when buying jewellery. Therefore, for jewellery companies, the stronger their financial strength and the higher the brand's reputation, the more they can directly drive the increase in product sales, which will prompt the overall market share to be further gathered to well-known brands and the industry concentration will continue to increase.