Recently, with the first store in Beijing settled in Sogo Department Store, European jewelry brand representative TESIRO has developed more than 50 chain stores in China; at the same time, Hong Kong's Chow Tai Fook and Lao Fengxiang jewelry brands in the Mainland also began to lay chains in full swing. The internet.
In the face of an attractive "cake" of 180 billion yuan in the Chinese jewelry market, the "Three Kingdoms Contest", a jewelry chain formed by European, Hong Kong, and Mainland brands, has opened.
"Three Kingdoms"
The jewellery consumer market in China is becoming more and more mature, and it is gradually entering the era of consumer "blowout." Recently, the international diamond authority HRD (Belgium Diamond High-level Parliament) pointed out in a report that China has occupied an important position in the global diamond industry. Diamond wedding ring ownership rate accounts for the top 25 development cities in China. 51%. Moreover, in recent years, the growth rate of domestic jewelry sales has remained at more than 10%.
It is reported that China currently has about 10 million new couples married every year. The total spending on weddings is as high as 250 billion yuan. As long as one-tenth of them are used for jewellery consumption, it is 25 billion yuan in consumption space in the whole year. Today's China has become the world's second largest jewellery consumer after the United States.
Therefore, experts from the China Gem and Jade Association predict that by 2010, China will have 250 million consumers able to purchase luxury goods, and total jewelry consumption will reach 180 billion yuan, which is only a conservative estimate.
The attractive market coupled with the adjustment of national diamond tariffs in July this year all stimulated the nerves of international brands. In the second half of 2005, TESIRO, famous for its high-quality cut diamonds in Belgium, acquired a strong brand, Tongling Cui Diamond, and began to force China with the brand name “TESIRO psychicâ€.
In fact, TESIRO is only a member of the European jewelry business in China. As one of the European classic jewelry brands, Cartier has entered a period of rapid development in mainland China. The network in China has expanded from 15 to 30, and plans to open 3 to 5 more stores in mainland China in the past two years.
The European jewellery brand, Lin Cheng Cheng, made Hong Kong jewellery feel pressure. Some Hong Kong brands began to adjust their own expansion speed. Not long ago, Chow Tai Fook announced that it will invest 4 billion yuan in the next five years to gain 400 branches in the Mainland. Tse Sui Lin is also in full swing for the expansion of China's retail business.
Of course, mainland brands are also unwilling to act as supporting actors and give way to the market. Lao Feng Xiang and other jewelry brands to seize the opportunity of the domestic jewelry market is fully open, the marketing network will be more paved throughout the country, as Lao Fengxiang said, they want to become a veritable Chinese famous trademark and famous brand.
"China's jewellery chain market has entered the era of the 'Three Kingdoms'." In the eyes of Shen Dongjun, CEO of TESIRO China, the Chinese jewelry industry is undergoing rapid differentiation, forming the three major brands of the Mainland, Hong Kong capital and Europe.
Who is the winner?
Then, in this "Three Kingdoms Contest", who will be the last to laugh?
It should be noted that the vast majority of mainland jewelry companies have long been working in the Chinese mainland market and have accumulated rich experience, especially in second and third-tier cities, and have considerable influence. “They gave consumers the impression that the old brand at the door was reassuring.†According to industry insiders, due to lack of brand awareness, the talent team is not well-established and the management mechanism is backward, and there are few national brands.
The Hong Kong brand has entered the Mainland since the 1990s and has used the special relationship between Hong Kong and the Mainland, as well as its advantages in channel expansion, research and development, and has rapidly expanded in a weakly competitive market environment, bringing a fashionable atmosphere to the Mainland.
However, according to industry insiders, there are at least two shortcomings that have plagued the development of Hong Kong jewellery companies. First of all, although Hong Kong has been deeply influenced by Westernization since its opening, its roots are still Eastern culture, lacking the deep cultural genes possessed by Western luxury goods; at the same time, Hong Kong jewelry brands have been facing homogenous competition. At present, there are very many jewellery merchants who play Hong Kong brand in the mainland market. However, most Hong Kong jewellery brands do not have unique brand appeal points and are increasingly homogenized, leaving consumers with nothing at all.
With the accelerating globalization of capital allocation, European brands represented by TESIRO and originating from the world's luxury goods markets have begun to accelerate the expansion of the Chinese market. Its strong strength, strong brand, capital, product and management advantages have made it powerful for the Chinese jewelry market. Impact.
“Our international resource allocation and management model has a very big advantage.†Shen Dongjun believes that compared with other brands, European brands have great advantages in terms of products, talents, and management. Take TESIRO as an example. Inheriting Belgium's five-century cutting craftsmanship, it represents the highest level of international diamond cutting. Its design center is located in Valença, Italy. The center's world-class designer designs jewelry for Hollywood stars and royal family all year round, leading the world. The most popular trend.
More importantly, in the channel strategy, TESIRO entered the beginning of China, and it is different from other European brands such as Cartier. "We have adopted a composite channel. In addition to entering major shopping malls, we have also established flagship stores in first-tier cities and franchise development in second- and third-tier cities." Shen Dongjun is confident about the prospects of the jewelry chain.