As the world is undergoing never-ending changes and improvement, so is the jewellery industry as well as its marketing strategy. However, there would always be constant rules among these changes. Through viewing the development course of marketing in the jewellery and other industries, we can see that the jewellery industry marketing has shown at least the following eight trends.

Trend No.1: the traditional Chinese culture will play an increasingly important role in jewellery marketing. For most of the people, the xenophilia is only a temporary interest. Sooner or later they would grow tired of the foreign moon.  With the rise of China’s economy, consumers will find the precious merit of traditional Chinese culture. And thus began shift their attention to their own traditional culture. For instance, nowadays the tunic became increasingly popular on important occasions. It even overshadowed the trend of the western suit, which shows the increasingly prominent role of traditional culture.

Therefore, successful marketing requires an in-depth understanding of the traditional Chinese culture. And it also takes advantage of various opportunities and occasions. For instance, apart from the wedding market, many jewellery companies started to target at the gift market for friends and families, such as gifts for a new-born baby or for parents’ birthday.

Trends No.2: marketing strategy has to be based on the quality of the jewellery. Competition in the jewellery industry would focus on craftsmanship as well as brand value, with brand value playing an increasingly important role in competitions. Those who can seize brand value the ultimate weapon shall score the final victory.

The key for establishing a successful jewellery brand lies neither in advertisement nor famous spokesperson. and even heavy investment would be nothing during the complex and fierce competition although nowadays it is a common practice for jewellery enterprises to hire stars to be their spokesperson, they should always bear in mind that in the early development stage of the brand, attention need to be paid to more important aspects.

According to the Achievebrand Planning Agency, the key to establishing a successful jewellery brand is to size the hearts and minds of the customers. That is to say, the brands should be made to be deeply rooted in the consumers’ mind. Through adopting an ultra low-cost operation concept, step by step the brand could become synonymous with the whole industry. 

It must be pointed out that, in any case, the essence of jewellery marketing is to seize the limited resources of the consumers’ mind. Besides, the market waits for no man, it is always first come, first served. To certain extent, the jewellery market follows the rule of “survival of the very first”, rather than the so-called “survival of the fittest”. Therefore, only those who grasp the trend take the initiative to create the brand successfully could create a better future. Otherwise, they would most definitely perish.

Trend No.3: the jewellery brands will continue their differentiation, and professional brand would generate more recognition among consumers. We all know that jewellery is a big concept, which can be divided into a lot of categories, each having many enterprises engaged. So how would a consumer choose? The sustained economic growth, steady increase in per capita net income, rapid spread of the Internet, and rapid development in e-commerce, have put jewellery enterprises everywhere to a nationwide even worldwide competition, which further increases the consumers’ scope of choice, but at the same time disturbed the consumers’ perspective. How to make a choice became a headache of the consumers. Some of them are even at a loss about what to do. Therefore, the Achievebrand Planning Agency comes to a conclusion that consumer demand for the brand becomes even more specialized and professionalized. To build the brand in a systematic and professionalized way will gradually become the only choice of the jewellery enterprises.
 
For example, we all know the jewellery brand of Chow Tai Fook, because we vaguely know that the Chow Tai Fook Jewellery was founded in 1929 and has a history of about 80 years. However, if we narrow down to specific jewellery products, for example, which brand shall we choose if we are to buy gold products? What about pearl? Crystal? Diamond? Jade? And emerald?

In some regional markets, we may find the top brand for each product. For example, in Shanghai, when buying gold jewellery, consumers will choose Lao Fengxiang, because it was founded in Shanghai in 1848 and has gone through more than 150 years of development. It was the only century-old store that dates back to over 15 decades ago. It has 3 generations, more than 100 designers who won the title of Chinese Arts Master and Senior Artistic, as well as over 300 craftsmen and technicians. Another example is that in Chengdu, consumers usually purchase emerald from the Xue Shi Traditional Jade Shop, as it was founded in 1925, it has handed down thousands years of jade culture and civilization, striving to make its product classics. The jade and emerald from this shop is the benchmark of the jade industry. 

However, viewing from the national jewellery market as a whole, we cannot find a brand that dominates the mind of the consumers. The situation has little resemblance with that on the electric appliance market where we prefer Gree’s airconditioner, Hisense’ convertible frequency air-conditioner, Glanz’s microwave oven, Haier’s refrigerator, and Joyoung’s soymilk machine. In the jewellery market, no such cognition has been made.

This indicates that the jewellery companies must drop its traditional workshop-style business model, namely, a comprehensive product range covering all the categories, regardless of the business size. Instead, they should choose a more professional way of doing business, a solid, consistent efforts to establish the professional brand image, so as to make its brand synonymous with a certain product or category of products. Just as Galanz’s microwave, Qipai’s traditional Stand-up collar suit, or Wong Lo Kat’s herbal tea.

Trend No.4: marketing featuring low-cost and high efficiency becomes increasingly significant. According to the Achievebrand Planning Agency, brand communication requires methods and techniques. Heavy investment does not necessarily have a good result. As is known to all, the effect of the news media is much more powerful than advertisement; what’s more, it enjoys a much lower cost. 

For example, in 2005, pearl products challenged the leading position of the diamond products, an event also known as “Pearl & Diamond War”, had rocked the whole jewellery industry, which had immediately aroused the concerns and the discussion. This campaign has not only enhanced the brand value of the Snowerpearl, but also promoted the whole pearl industry to a new height, which vividly highlights the determination, confidence and courage of the Chinese jewellery enterprises to carry forward the Chinese culture. Once again this reinforced the market position of the Snowerpearl   as China’s top pearl industry. And during this whole marketing procedure, the Snowerpearl invested practically nothing in advertising, as the Phoenix, Sina, Sohu and other authoritative media had already made large amount of coverage. Today, this dispute has become a classic case of China’s jewellery industry .
 
Another example is a promotion campaign by the TESIRO, which dictated that on Valentine’s Day, for those who made a purchase of over 500 Yuan, a  luck draw shall be in place, of which the first prize is a double room and a condom. This is really a controversial practice. People were concerned that will that give rise to premarital sex? Or will this challenge China’s traditional morality? Marketing of this kind is ineffective unless people pay attention.  Therefore, these kinds of controversies are exactly what one company needs, as the controversies always provide good advertisement. And it is advertisement that promotes the brand values. As a result, with an ultra-low cost,   TESIRO has become a household name. No matter how the publics judge this advertising campaign, TESIRO is the only and final winner.

Trend No.5: the profit of OEM -type jewellery business will become thinner and thinner, and its living space would become lesser, as a result, the marketing would become increasingly difficult. In other word, the jewellery industry engaged in manufacturing and processing could survive and develop. However, this kind of enterprise would never disappear, just like the beggars in the city. Or else, they may even make a small fortune. However, it is not possible to become the main trend of the society. This is an important factor which the jewellery enterprises must bear in mind when developing their own brand marketing strategy. Otherwise, simply for the sake of saving trouble or playing safe, the future of the enterprise may get lost in this process, which will be really regrettable.

Trend No.6: the overall quality of the entrepreneurs or boss will become the biggest bottleneck to restrict the marketing process of jewellery enterprises. Problems such as technology, quality, and employees can be more easily resolved. The overall quality of the entrepreneurs or the boss, however, cannot be easily improved. To begin with, the entrepreneur’s personal quality is very important. Secondly, the moral standard of the entrepreneur also plays a crucial role. Last but not least, they need a correct direction of learning as well as sustained learning behaviour.  Why China’s jewellery industry has such a low market concentration? Why there are a lot of small workshops? All these have a great relationship with the overall quality of the jewellery entrepreneur.

Trend No. 7: Internet marketing will become one of the key tactics of the jewellery business marketing strategy. On the one hand, according to China Internet Network Information Centre, by the end of 2009, the number of Internet users in China reached 384 million. On the other hand, cases like Sister Lotus’ overnight popularity through the online marketing, and successful U.S. presidential campaign by internet, showed that with such great number of netizens and successful Internet marketing campaign, online marketing has become increasingly significant.

For example, the success of Zbird, an internet jewellery seller, has opened a new ground for online marketing. In 2002, it set up its first online diamond shop. By 2004, it had opened its first OFFICE – based diamond experience centre. And then, after seven years, the Zbird has promoted the” mouse + cement” diamond sales mode from Shanghai to  Beijing, Hangzhou, Guangzhou , Ningbo, Nanjing , Chengdu and many other cities.

It is worth mentioning that the network marketing and event marketing often work together, but this is a double-edged sword as they may promote the brand value or bring harm to the brand, which requires the jewellery enterprises to master the means of network marketing, otherwise, little knowledge must be a very dangerous thing.

Moreover, when a variety of events and crises of the Internet occurred, if the jewellery enterprises can not make a timely response and failed to make a corresponding marketing strategy, in that case, these enterprises are very likely to be on the brink of danger. Of course, if an event fit for online marketing occurs, the jewellery enterprise should seize the opportunity to leverage the power to play a multiplier effect, otherwise it is a waste of a free golden opportunity to enhance the brand.

Trend No.8: During the process of jewellery marketing, many people like to talk about the homogenization of the product quality. However, as far as I am concerned, in a fairly long period, this statement will be nothing more than a charming, self-deceiving lie. The quality differences between the jewellery products will continue to exist and play an active role. However, the Achievebrand Planning Agency maintains that a jewellery enterprise that solely relies on the product quality could not be a winner in the future marketing competition.  Just like a healthy, beautiful and talented girl is not necessarily a star. The key for a successful marketing lies in its brand operation. As is said in the above-mentioned paragraph, the essence of jewellery marketing is to seize the limited resources of the consumers’ mind and try to make the brand consumers’ first choice.

How to Sell to Chinese Rich People – Know What They Think

During the Spring Festival only months behind us, European and American department store industry were awed by the purchasing power displayed by the Chinese consumers. Facing this phenomenon, western media has made the following remark: in Asia, the conspicuous consumption is gaining in the popularity. Through purchasing the most famous luxury brand, people are actually showing off to the people around them.?

However, when luxury products from LV, Gucci, with logos printed all over, are dominating the Chinese market, the real man of wealth began to find these “entry level” luxuries dismissive. In their circles, only those private, customized, low-profile gadgets can prove equal to the name of luxury. Originated from Europe and the United States, these products find their way to China through non-mainstream channels. They always maintain a low profile and their reputations are being spread from mouth to mouth. Limited edition, plus the customized production, making these brands maintain a high price.

As production and sales of these products are very low, they follow a unique survival tactics, that is, be mysterious. Behind their low-profile show they are putting on, these products are really high profile.

The Brands Value Are Improved by Its Reputation

Reputation in the consumer circles are the survival secrets of these luxuries. To engage in this trade, a rule must be borne in mind: if the customers find the whole shopping experience satisfactory, they may tell 5 friends in their circle. However, if they find a single procedure not to their liking, more than 20 friends in their circle would most definitely get the message.

Mike is the Sales Manager of one of the Europe’s top yacht brands in Shanghai. For most of the time in one year, he had no sales achievement at all. And his work is to go to a private posh club. And in his spare time he would go playing golf or enjoying coffee, idling his days away.

To get in the wealthy circles is the core of Mike’s work. Only through establishing long-term relationships with those billionaires, can he sell his yacht. Although each year he can manage to sell one yacht only, he still makes a great living as the price of each yacht is as high as tens of millions dollars.

Yacht of this kind is rarely exposed to the general public, but in the posh circles, they are very much being sought after.

To do business with the rich, one need to be fully acquainted of their habit and characteristics. For example, although the rich grow increasingly interested in the yacht, they need to hire the specialized yachtsmen as they cannot drive the yacht themselves. Besides, they seldom purchase yacht in the mainland China, but via Hong Kong instead. Sometimes in order to buy a yacht, they will specifically register a company in Hong Kong. And then trade under the name of the company so as not to reveal their own name. The rich are experts in financial management. Even with great economic power, few of them would be willing to make a lump-sum payment. To sell a yacht to them, the seller needs to provide them with all the loan procedures and other matters.

Reputation in the consumer circles are the survival secrets of these top luxuries. One Malaysia diamond dealer said that to engage in this trade, a rule must be borne in mind: if the customers find the whole shopping experience satisfactory, they may tell 5 friends in their circle. However, if they find a single procedure not to their liking, more than 20 friends in their circle would most definitely get the message.

The consumer group of the top luxury is limited to a very tiny number of super-rich people. Once their reputation gets damaged, these luxuries simply cannot survive.

Diamond enthusiastic pursues only satisfaction— they have their own appreciation and understanding about the design and cut of the diamond. Most of them are not keen on showing off with the diamond. What they would do is to appreciate their own collections and then put them back to the safe, keeping the joy only to themselves. 

A top diamond flagship store was opened in an old house villa at the former French Concession in Shanghai. The majority of its guests are introduced by friends in this circle. Those jewelry counters in the crowded shopping district are considered to be short of privacy.

Operating luxury brands often require a great deal of patience over many years to soak in the rich circle. The recognized brands that last for decades or even centuries all experienced a painful process of getting accustomed to all kinds of peculiar tastes and habits of rich people before they could maintain a stable business.

Limited Version & Customized Design

As they only need to meet the needs of a very limited number of customers, these luxury brands are not interested in public awareness. The long-term service for a few top rich customers is often enough to support the continued existence of the entire brand

Mr.Lu is a luxury collector. And his personal favorite is Bottega Veneta, a brand famous for its waving technique. He enumerated the features of the handbags that attracts him: natural leather material, strict hand-woven technique, and the most special feature is that no LOGO could be seen on the entire handbag, from top to bottom.

A 35 cm Bottega Veneta handbag shall be priced up to 20000-30000 yuan, which was far beyond those “notorious” conspicuous brands.

Although no LOGO was printed on the bag, the weaving and designing style of the bag is so unique that the experts can recognize it with even one glance, and thus would show admiration to the bearer of the handbag, which is exactly what they need.

“The rich will not wear the same clothes as we wear. For them, the most embarrassing thing is to dress in a same dress with the others in a party. Therefore, they want their dresses as well as handbags to be unique.” said Mr. Lu. In his familiar circle, luxury brands which could suit to individual needs and do customized services is the most sought after.

A customized European wristwatch brand adopts a very low profile strategy. In China, it takes individual order only. Only after receiving specified orders and requirements from guests, the making of the wristwatch could be started. Throughout the year this brand would make only several or even one wristwatch of a kind. What’s more, to get the product, the buyers often have to wait for a long time.

A similar situation also exists in the fashion industry. It is precisely the low-key, private, and unique style of the customized brand that attract the rich and the celebrities, those top-notch persons.

Hou Mingxiang, manager of Luxury agents Jebsen Group Brand & Communications said that, now when the customers choose watch, they are no longer blindly worshiping those luxury brands. Whether to be high-profile or low profile is not their concerns. What they emphasize is that whether the brand culture and meaning is consistent with their own personality. A German watch brand, though only producing less than 20,000 watches each year, has a unique German flavor. Although its market activities are not as frequent as those ordinary brands, it enjoys great brand loyalty among a fixed group of enthusiasts.

An industry source told reporters that many urban women engaged in the financial industry do not want others to praise her new Prada handbag. What they enjoy doing is to take a beautiful and eye-catching handbag with brand unknown to others. It can always give them a sense of satisfaction.

As they only need to meet the needs of a very limited number of customers, these luxury brands are not interested in public awareness. The long-term service for a few top rich customers is often enough to support the continued existence of the entire brand

Give the Guest Clues to Follow

In order to maintain the independence of their beloved master brand, some designers will design several sub-brand to be the breadwinner.

Hiring Madonna or Sophie Marceau to be the brand spokesperson or publishing gleaming advertisement on fashion magazines are common practice among brands like LV and Dior. However, In Europe and the United States, there are many designer brands catering to smaller elite consumer groups. They never do such a thing as advertising, yet they still maintain a very high price.

Wang Feng in the luxury retail industry told reporters that “designer brands” are also very expensive. However, they are different from traditional luxury brands like LV or Gucci in their marketing ideas. Chief designer though they have, the traditional brands rely on a designer group to design their products, which means not all products are from the chief designer.

By contrast, Niche brand adopt a totally different approach. These brands tend to take names after the designer, emphasis on the designer’s personal style and often stick to the design concept for decades. These designers are often exclusive and conceited in manner; therefore, they do not appreciate the idea of using large LOGO to highlight their own brand. Instead they regard their personalized design as signature on the products. 

As they are unwilling to come under the spotlight, the sales of these niche luxury brands are not large. But these brands tend to have a stable group of enthusiasts who are always in pursuit of being different and unique—-they are bosom friends with those designers. These brands rarely have their own exclusive store. They maintain small-scale sales by opening boutiques in department stores such as the Fifth Avenue , Lane Crawford, as well as Joyce.

Wang Feng finds that in China, not only consumers in the first-tier cities as Beijing, Shanghai, Guangzhou and Shenzhen began to wake up from the worshiping of LOGO, consumers from the third or fourth-tier cities began to show interest in those niche designer brands. These brands through a variety of ways quietly penetrate into China, and received unexpectedly good result among Chinese consumers.

Of course, these designer brands do not always say no to exposure. They just have a more subtle way of delivering messages to its fans. Over the years, they would stick to their classical products, which can be recognized by fans through a single glance. And when new products are launched, they would invite some pop stars and celebrities to wear these dresses.

European and American fashion magazines and forum is interested in “street shooting” of the stars. After wore by certain pop stars, these clothes would soon be searched out by the fans. Let the fans take the initiative to find out about the brand not only to achieve the effect of publicity, sustains the low-profile brand style as well.

However, small-sized sales would bring about pressures on brand management. In order to maintain the independence of their beloved master brand, some designers will design several sub-brand to be the breadwinner. For example, the U.S. designer Marc Jacobs, in addition to having his namesake designer brand, also creates the sub brand Marc by Marc Jacobs, whose price is lower and buyers groups are broader.

Compared with the main brand, these products would use materials of a lower notch. They adopted friendlier marketing approaches and their profit can also help with the development of the main brand.

Wang Feng said that compared with the popular designer brands in the United States, the European family of luxury brands still retain the ancient workshop of the ” with shop in the front and workshop at the back.” This is a tradition of many generations. Their workmanship is superb, but they stubbornly refused commercialization, and are unwilling to give their own brands to factory abuse. They still only produce for a few enthusiasts. Against the backdrop of the financial crisis, many of these brands are having difficulties to support themselves, and eventually they are very like to be acquired or even go bankrupt.