The fashion jewelry market is one of the representations of the fashion industry. It used to be the nobleness, eternity and status symbol of the owners. Today, jewelry is still perceived as a symbol of wealth and status. Here are the new trends of the fashion jewelry market in China.
Jewelry market in China overview: from global to China
The worldwide jewelry industry seems poised for a glittering future. According to Euromonitor, the jewelry market is the best-performed market among the overall accessory industry in 2016, which the transaction volume is predicted to realize $316 billion. Another survey from Daxue Consulting , china consulting, reported that annual global sales of €148 billion in 2014 are expected to grow at a healthy clip of 5 to 6 percent each year, totaling €250 billion by 2020. However, consumer appetite for jewelry, which was dampened by the global recession, now appears more voracious than ever.
The jewelry market in China seems not affected by the global industry recession. The industry takes up approximately 30% shares of the global market and maintained a stable development in the past years. The Chinese jewelry industry has undergone a sustainable growth since 2011. The overall sales volume of the industry was 520 billion yuan in 2015, which was 3.85% increase compare to the previous year. Whereby gold, including platinum, and diamond submarkets increased by 68.81% and 11% respectively, while jade subsector suffered 20% decline in 2015. In fact, these achievements are not the true reflection of the Chinese jewelry market.
Jewelry market in China: Future trends
Since consequential changes are under way, both in consumer behavior as well as in the industry itself, jewelry players must be alert and responsive to important trends and developments or else risk being left behind by more agile competitors.
Adapt your business strategy to Chinese customer preference transformation
Apart from traditional jewelry consumption share for a wedding of about 80% overall sales, the recent major jewelry lovers are people whose age is less than 25, which became an important part for jewelry companies to target. However, because young people’s tastes are changing, jewelry companies should pay more attention to study and make a correct business strategy.
One of the characteristics of these people is that they label themselves as fashion followers in China. Thus, jewelry designers are searching for innovation in styles and features to meet the preference of customers and adapt their business strategy in China. For example, the latest “dark mental” concept is becoming popular in design. The combination of this concept with other factors, such as punk and tribal style, is the mainstream of the current fashion jewelry market. In addition, celebrity effect is another feature that attracts young customers. For instance, Scarlett Johansson, one of the top Hollywood actresses, used to adorn a necklace from Bazaar “Over Size” series in the Oscar award ceremony. Quickly, this jewelry brand in china became the hottest fashion symbol in this market. It is a great example of relevant business strategy led by China-based strategy advisory firm. Since young people have limited financial capacity, the polarization situation is obvious in the current market. That is luxury jewelry is still dominant while the consumption volume of low-end brands, lower than 5,000 yuan, is rapidly increasing.
Strategy for jewelry market in China: E-commerce business pattern
With the development of e-commerce, the jewelry market in China is also on the stage of transformation from offline to online strategy in China. Unique styles from independent designers or sellers are preferred by customers. Thus, C2C channels through WeChat or other new media are widespread. Viewing this good business opportunity, e-commerce platform including T-mall and JD.com developed online jewelry transaction module and the well-established transaction system successfully attract a large number of customers. Furthermore, in order to satisfy customers’ integrate shopping experience, some of the brands, such as Chow Tai Fook and CHJ, transformed into O2O business pattern. Whereby, KELA diamond is the leader of this new trial, which has opened many experience physical stores in different cities. Although the current transformation of the industry is successful currently, since competition in brands is becoming severe, the overall market may require a shuffle in the future.
To conclude, the jewelry market in China entered a stable development stage. Besides, the fast-changed tastes of customers require jewelry companies to improve their quality, design and brand images to satisfy the demands. The success of its business strategy will require strong local advisory and access to networks in Beijing and Shanghai.
Written by our partners of DaxueDoxa advisory China