China is undergoing rapid population growth, with increased urban concentration, and brisk financial development of the middle class who are now emerging as China’s upper class as the society moves from production to consumption focused.

Market analysis of Jewelry in China market

China is now the second-largest world economy by GDP, following the United States and leading from Japan and Germany. It is also the world’s second-largest retail market and is expected to exceed the U.S. by 2017.

Marketing & E-Commerce Agency

We are the top and most visible Ecommerce & Marketing Agency for China you will find on the web. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR.

Demand and jewelry sales in China are seeing growth each year, between 2005 and 2012, sales grew 224%. Greater China (including Hong Kong & Macau) is now the world’s second-largest consumer of luxury products.  According to a report published by Polygon, an active online community and trading network for qualified gem and jewelry professionals, Jewellery is also the third-largest investment category in China, behind real estate and automobiles.

What’s the Demand for Gold Jewellery in China?

In (Q1 2014) China surpassed India as the world’s largest consumer of gold, it is not an overestimation to say that China’s growing market will continue to race for the top position.

Popular Chinese style gold ornaments
Popular Chinese style gold ornaments

In China, lower prices combined with favorable macro-economic factors – including the swiftly emerging middle class, greater disposable income, growing urban populations, and lenient government restrictions on gold buying – set new records for jewelry, bar, and coin demand, which reached 1065.8 tons. In China, demand for gold jewelry increased nearly 200%, from 224 tons to 669 tons in 2013 when compared to records of gold demand in 2004.

What’s the Demand for Silver Jewelry in China?

Demand for Silver is among the Chinese citizens that can be met by China Ecommerce Jewellery Brands

China is the world’s largest producer of silver jewelry, and jewelry manufacturing accounted for 34% of silver consumption in China.

Silver Dragon Bracelet
Silver Dragon Bracelet

Generally, silver jewelry is popular among younger generations in first and second-tier cities of China and provides an opportunity for low-cost choices.

Rhodium-plated silver is preferred as it has the look of platinum, most of the customers are interested in expensive-looking jewelry without the high price tag.

What’s the Demand for Diamonds among other Jewellery in China?

Diamonds are most the favorite ornament among rich Chinese. Now, there are more and more options to buy diamonds; the price has become increasingly sensitive. The majority of consumers start their purchasing process online by shortlisting and comparing prices of diamonds on various websites and sales are completed in person. Therefore, having a sturdy online digital presence is absolutely necessary for diamond jewelry retailers.

In China, there is high-pitched demand for diamonds and thus, China is positioned as the biggest emerging diamond buying market. Gradually, demand is expected to grow, and by 2018, it is estimated that demand will outweigh supply, in large part due to the expanding Chinese and other emerging markets.

International Jewellery Brands in China

Cartier's popular product among Chinese
Cartier’s popular product among Chinese

In Cartier’s 2016 annual report, Richemont’s management emphasized China as a key growth market, up 26% year over year, which balanced weakness in Hong Kong and Macau. Chinese and Hong Kong sales made up 22% of Richemont’s revenue last year. Cartier is making substantial growth by putting a virtual storefront on China’s WeChat.

For Jewelry Brands, Wechat is the King

While for some brands it might seem odd for a luxury brand to put a storefront on a messaging app but L2 research recently called WeChat, owned by Chinese internet giant Tencent as “the most important platform for luxury brands” in China today, as reported by the Financial Times.

WeChat has been introduced to Chinese netizens for a little over 5 years but boasts 850 million monthly active users. Many of the local jewelry retailers, such as Chow Tai Fook, already have storefronts on the site.

Tiffany can do better in Chinese ECommerce

Tiffany is currently losing on global sales but considers China as an “engine of growth”. Although, its Asia-Pacific region reported a minor decline in 2016, which was due to drops in sales in Hong Kong, Macau, Taiwan, and Australia. CEO Michael Kowalski indicated on the recent Q4 conference call, “We certainly see … Mainland China opportunity as continuing to be very, important. In order to cash from this enormous opportunity, Tiffany needs a sustainable presence on Chinese E-commerce platforms.

Tiffany invests mainly in Branding

Jewellery in China:Tiffany Bracelet
Tiffany Bracelet

However, Tiffany uses WeChat for marketing, it has not embraced a WeChat storefront yet, like Cartier.  Tiffany is still following old-school marketing attributes perceiving that by being on an E-commerce platform, the brand might lose its exclusive appeal. Chinese fashion blogger Hazel Meng was quoted by the Financial Times as saying this is a mistake. She proposed that Tiffany can market its silver bracelets on China’s digital platforms to test E-commerce performance. Many young Chinese prefer Western brands with “a little heritage” and like to buy online.

Jewelry brands struggle with Chinese e-Commerce

Brands that are reluctant to clinch opportunity on e-commerce and only believe in in-store experience are putting them at risk of losing sales in China. It’s a matter of thought paradigm shift, where jewelry brands need to understand that in China sales increase by branding and being present on eCommerce platform.

Pandora Successful case study on Tmall

Pandora is playing well on the Chinese E-commerce digital playground by marketing its trendy, silver charm bracelets on various digital platforms of China. Pandora entered China in 2011 and now has staggering 100 stores. Last year, Pandora emerged on the social e-commerce platform of China, and also owns a storefront on TMALL. Pandora targets middle-aged women in the U.S., but in China, it is extremely popular among 25-35-year-old demographics. Pandora also partnered with Chinese celebrity actress, Ivy Chen to promote its products in the Chinese market.

Jewellery in China:Charms by Pandora
Charms by Pandora

“The launch of PANDORA jewelry on Tmall.com is another important step in establishing the PANDORA brand amongst Chinese consumers. TMALL is a clear leader in China’s internet retail space, and is the right business partner for PANDORA to get the broadest approach to the Chinese consumer,” Kenneth Madsen, president, Pandora Asia Pacific, was quoted as saying in an October 2016 press release.

Chinese sales increased 175%

Chinese sales increased 175% in 2016, with same-store sales in the fourth quarter of 44%.

As of now, China is representing one-third of the global jewelry market, it is still only 4%-5% of Pandora sales, which means there seems to be a high likelihood for Pandora to do well in China.

Characteristics of customers that are expected to Grow Jewellery Brand Sales

  • New wealth – those that want to show off status
  • Emerging market consumers – brands represent trust and status This holds true in many emerging markets, particularly, in China
  • Young customers – turn to brands for self-realization + expression

Jewelry brands are confronted with a new environment. Here they are faced with increasing competition, partnership, globalization, and shrinking margins. American jewelry companies can no longer trust local markets to generate growth, as demand has shifted towards emerging markets like China.

Companies are developing global strategies to adjust shifting consumer shopping habits by accepting wide-ranging multi-channel approach and considering offering customers more than one channel for purchasing, this way they expect to drive more sales.

E-commerce Solutions for International Jewellery in China 

There are notable challenges, to enter the Chinese eCommerce platform but these challenges can also be translated into opportunities by developing local market-centered strategies and partnering with local digital marketing agencies that offer all-inclusive digital marketing campaigns to reach, act, convert and engage Chinese consumers. Entering the Chinese E-commerce platform is for those brands who are ready to seize this immense opportunity.

China has the window of opportunity for International Jewellery Brands in the Chinese cross-border, e-commerce market. To penetrate the Chinese e-commerce market digital marketing agency recommends two are extremely vital solutions; Branding and presence on well-known e-commerce platforms of China.

International Jewellery Brands can avail Ecommerce opportunities by Branding themselves on Chinese digital platforms

Jewellery in China: Upper middle class Chinese family celebrating parent's birthday
Upper middle-class Chinese family celebrating parent’s birthday

In China Branding is everything

A successful digital marketing campaign requires extremely concrete Branding. This is achieved by an in-depth understanding of the traditional Chinese culture. This also involves taking advantage of various cultural events and occasions. For example, apart from the wedding market, many jewelry companies began to target, the gift market for friends and families, like buying a gift for a newborn baby or on a parents’ birthday. Online marketing is one of the key strategies for International jewelry brands.

Chinese people do not buy on Brand’s website, they prefer ECommerce platforms

 Presence on Chinese E-commerce Platforms

To enter the e-commerce market of China International brands must learn the policies of digital platforms. This includes TMALL, JD.com, Haitao, Taobao, and WeChat (social e-commerce)

How can Jewellery Brands Enter the Chinese E-commerce market via TMALL?

Jewellery in China: Tmall.com
Jewelry in China: Tmall.com

TMALL holds the biggest market share in the e-commerce market of China at 57%. It mainly focuses on premium brands. This characteristic makes TMALL the most expensive e-commerce marketplace in China. For Chinese consumers, high price indicates high quality therefore many customers prefer buying their products from TMALL.com TMALL is owned by Alibaba Group. It provides an opportunity for international brands to open exclusive online stores and directly sell products to Chinese consumers without being physically present in China.

To protect the exclusivity of the online marketplace, TMALL has an invitation-only policy where only qualified international brands can either be invited to join or can apply through a certified digital marketing agency (TP). To sell products through TMALL, international brands need to follow some strict guidelines and can contact digital marketing agency for updated Ecommerce  policies in China list is hereunder:

Requirements for an International brand to operate an online TMALL store

  • To penetrate the Chinese e-commerce market, an international brand must be an authorized distributor and have a corporate identity outside China.
  • The company must be independent and hold retail and trade rights
  • The company must be the brand owner or authorized agency having the authority to sell products under its name
  • The company must hold relevant inventory certification for the stock

Apart from the aforementioned formalities the brand needs to have a strong digital marketing strategy catered towards Chinese online customers. The foreign brand needs to gain visibility and build E-reputation in order to have success on the TMALL platform.

How can Jewellery Brands Enter Chinese E-commerce via JD.com?

JD is China’s largest online direct sales company. It relatively has less market share than TMALL.com. It operates seven fulfillment centers and 166 warehouses in 44 cities. JD.com has 4,142 delivery stations across several districts of China.  International companies can open individual online stores on JD.com and brands are permitted to import food, beverages, apparel, and shoes from overseas. JD’s cross-border service, JD Worldwide, enables suppliers to sell directly to Chinese consumers without a local presence.

Jewellery in China: JD.com
Jewelry in China: JD.com

JD.com is less expensive than TMALL.com. It provides active global promotion of JD Worldwide (mainly in the U.S. and Australia) and supports in-house logistics services.  JD.com has a zero-tolerance policy for counterfeit products.

Requirements for an International company to operate an online JD store

  • To penetrate the Chinese e-commerce market, an international brand must be an authorized distributor and have a corporate identity outside China along with registration capital of over RMB500,000(Around US$76,660.00)
  • The company must be independent and hold retail and trade rights
  • The company must be the brand owner or authorized agency having the authority to sell products under its name
  • The company must hold relevant inventory certification for the stock

JD allows operating an online store in 3 different ways

  • Franchising Business Partner –International brands can set up stores on JD.com and avail the facility of JD warehouse to stock their products. JD provides warehousing, delivery of goods, and customer service.
  • Licensing Business Partner – International brands can set up their online store and can ship the order. JD will supervise customer service and process invoices.
  • Self-Operation Partner – International brands can sell on the JD platform, however, warehousing and delivery of goods must be supervised by the international brands.

Apart from the aforementioned formalities, the international brands are expected to have a Chinese consumer-oriented digital marketing strategy to attract targeted customers.

How can Jewellery Brands Enter Chinese E-commerce via Haitao Web Interface?

In the Chinese language, the term Haitao means; buying goods online from overseas. Growing numbers of Chinese shoppers have been engaged in international cross-border import trade over recent years. The transaction worth of China’s online shoppers buying on overseas online platforms accounted for 74.4 billion yuan in 2013, up from 12 billion yuan in 2010.

Image showing growing popularity of cross-border e-commerce in China
Image showing the growing popularity of cross-border e-commerce in China

The sales expected to rise up to 140 billion yuan by the end of 2014, reported by Fung Business Intelligence Centre.

TMALL Global and Amazon.cn are among the most popular cross-border e-commerce platforms to buy jewelry. The expert local marketing agency can provide further information on how to promote international jewelry products using Haitao websites.

How can Jewellery Brands Enter Chinese E-commerce via Taobao?

Taobao is owned by Alibaba Group. It offers the largest C2C e-commerce marketplace in China. Taobao allows registered or non-registered businesses to sell directly to consumers. It has more than a million sellers, along with countless product categories. Establishing a store on Taobao is virtually free but the online marketplace is ruled by small sole sellers who compete fiercely on price and honesty and authenticity is an unwritten rule of their trade ethics. Mostly, Chinese web celebrities are the most prolific sellers. They take advantage of their popularity and drive traffic to their Taobao online store from blogs, online videos, and social media. Chinese web celebrities are mostly known for selling cosmetics, baby, and clothing products on Taobao. Sellers with low budget and low-quality products opt for this platform. However, just like all other online platforms in China, Taobao also needs strong digital marketing skills to be visible to online customers.

Cost: Alibaba charges a small fee per transaction made via Alipay. Creating an online store is free, and retailers need to show their Chinese ID cards.

Logistics: Individual stores manage logistics (including warehousing, customs clearance, customer delivery) and use their own third party or a recommended Taobao nominated third party.

Customer Payments: Online transactions paid by customers are managed through Alipay.

How can Jewellery Brands Enter Chinese E-commerce via WeChat Official Account?

WeChat is the magic bullet of the digital ecosystem of China. It is all one app that integrates social e-commerce seamlessly. There are three types of service accounts available for promoting a business on WeChat; WeChat Subscription Account, WeChat Service Account, and WeChat Enterprise Account. Businesses present on WeChat via the aforementioned accounts can broadcast information to their followers. The information post can be shared, reposted, or generate comments by the followers.

WeChat Subscription Account:

A subscription account is the most basic version of all official WeChat accounts. It can be used to push information to the followers. The messages sent to followers are grouped in one folder containing all other subscription accounts that the user is following. It is generally used for daily news and information broadcast. However, upon received a message the user is not notified, in fact, the user needs to go into the desired subscription folder to retrieve delivered content. Secondly, subscription accounts have much less integration ability and advance functionality that can be integrated into service account.

WeChat Service Account:

Wechat official accounts summary

WeChat Service Account is considered the most suitable for businesses and organizations that aspire to access advanced WeChat Official Account. Service accounts allow more APIs (Minisite) than Subscription Account and companies are enable to build their own application, get inquires, and broadcast promotional content to their followers. With the help of a Service Account, one message per week and 4 messages per month can be sent to the followers. Users are able to receive a push notifications when the message is delivered. WeChat Service Account provides a higher degree of functionality to users, with the help of a customized menu along with an integrated e-commerce facility within the app.

WeChat Enterprise Account:

Enterprise Accounts are also called Corporate Accounts, these are mainly used for internal company use, for example; sharing memos, private group chat, or a simple project and task management system. These accounts are being increasingly used within Chinese organizations. These accounts are secure and followers have to go through an authentication process, unlike other WeChat account where gaining followers is the primary goal.

WeChat Official Account Guidelines

The WeChat accounts formed to target Chinese users must be registered inside China or else they will not be visible to Chinese users. Possessing an Official WeChat accounts requires a legal Chinese entity, a Chinese Residence ID, and A China mobile phone number. International companies are advised to partner with an expert Digital Marketing Agency, which is willing to apply for an official WeChat account on behalf of the international company. Together with opening an official WeChat account, it requires sound and expert knowledge of the market and digital strategy to target the right customer group and successfully penetrate the WeChat landscape.

Chinese economic development has established investment opportunities for International brands by providing in-house state-of-the-art social e-commerce platforms that are engrained in Chinese consumer’s lifestyles. Digital Marketing agencies provide International Brands with tools that are optimal to unlock this enormous market to earn their full potential and multiple sales with millions of users. If you are interested in exploring Chinese Digital E-Commerce platforms, reach out to us for customized advice.

Do you want to start to sell your Brand in China? Do you need a commerce partner?

We are a commerce agency expected in the Chinese market

if you have a serious project feel free to contact us.

Jewelry in China: There are huge opportunities for International Brands in the China E-commerce market that can meet the high demand of affluent Chinese consumers.

Similar Posts

4 Comments

  1. Hi I was wondering if you could walk me through the steps of getting an official WeChat account in more detail. How would I attain a Chinese business lisence? Can I do it if I live in the United States?

    1. You just need a week to get a Chinese business liscense , you can have an agent running the daily operation for you.

  2. HI, I AM A LOCAL MINER AND SELLER OF GOLD AND DIAMOND IN SIERRA LEONE WEST AFRICA. I NEED A BUSINESS PARTNER OR A POTENTIAL BUYER THAT WILL BE COMING FOR OUR GOLD AND DIAMOND. EVEN IF HE WANT TO DO TIMBER, I MAY BE HERE FOR HIM.I PROCEDURE IS BASE ON FOB OR CASH AND CARRY OR ON CREDIT BASES . AS LONG AS YOU MAY COME OVER HERE AND GO WITH THE GOODS AND MY REPRESENTATIVE TO YOU DESTINATION AND PAY OUR MONEY.

Leave a Reply

Your email address will not be published. Required fields are marked *