How To Talk About Jewellery Consumers?

Jewelry is a natural luxury. It is unique, scarce and rare. But it is also a precious jewellery, compared with ordinary brands. Luxury goods Big brand products will be sold at a premium of several times or even dozens of times. Clothing, bags and other categories of luxury goods, their own value is relatively low, brand added value is high, and its own high value jewelry category in the realization of the brand's high premium, there are more unique means. What brand marketing does luxury jewelry need to do? How can a brand communicate with Chinese consumers in the face of China's huge consumption power and ignorant jewelry consumers?

　 In recent months, the luxury jewelry exhibition has been sung in Beijing and Shanghai.

Bvlgari, Van Cleef & Arpels, Chanel, Harry Winsto and other jewelry brands have taken their own look at Jiabao. Luxury jewelry The brand has formed the momentum of "beheading" China for a time.

In terms of raw materials, the difference between jewelry is not large, but different brands sell different prices. The secret is that different brands have created different "brand premium" through different "activity marketing". At present, luxury jewelry giants are in the early stage of investment in the Chinese market, and they are optimistic about the market potential for many years in the future.

Get together with "China Exhibition"

In May 31st, the British jewellery brand Graff announced its plan to postpone its IPO in Hongkong. Graff is famous for its top diamonds. According to the original plan, Graff plans to raise up to 1 billion US dollars in Hongkong's IPO.

However, short term fluctuations in the capital market can not obscure the glory of China's jewelry market. The jewelry industry is one of the top jewels in the world. In Beijing and Shanghai, the jewelry exhibition is meticulously built, and they are told to the Chinese people over a century's long history.

Recently, Bvlgari The exhibition at the Sinian Museum in Lujiazui, Shanghai, ended. As a review of the past 125 years, Bvlgari has been on display at National Museum, Beijing (micro-blog). Bvlgari not only worked hard in China for two exhibitions, but also exhibited different exhibits. In 2009, at the exhibition in Rome, Bvlgari exhibited more than 540 pieces of jewelry, while in China, Bvlgari exhibited up to more than 600 exhibits.

　 In addition to Bvlgari, Cartire, Chanel and Harry Winsto have completed exhibitions in a positive and low-key manner in China.

"Many experts say that from the end of last year to the present, the market of jewelry has not been as prosperous as it has been in the past few years, but China is still the best market for growth." A jewelry retailer in Shanghai told reporters that jewelry brands' interest and devotion to the Chinese market are still continuing. The exhibition is a prelude to their efforts in the Chinese market.

Before 1980s, China's jewelry industry was basically in a state of stagnation. The industry believes that after about ten years of recovery, China's jewelry industry has developed rapidly since the 90s of last century, especially in the past ten years, China's jewelry market has entered a rapid growth stage. This reporter has learned that many European luxury jewelry brands only opened in China's first stores after 2000, and some brands first entered China with fashion and perfume.

A European luxury brand agent in Shanghai believes that the reason why jewellery brands "get together" in China is to pay more attention to historical and cultural heritage than other luxury goods. Many of them have a historical story with the royal family. After entering China, the first step is to shape the image and then start business. That is to say, first tell the Chinese consumers what the brand DNA is and start selling again. Doing exhibitions is a more subtle way.

　 The secrets of brand high premium

The two diamonds with almost the same raw materials, the famous luxury goods and the unknown brands are far apart from each other. Brand building plays a decisive role in brand premium.

"The big brands that have a long history are hard to imitate and they are very expensive at the same time." Ceng Wenyong, chairman of Si Xi Jing diamond (Shanghai) Co., Ltd., told reporters that the high price of big brands came largely from the premium brought by branding, and the price level and the gap between them were not exactly the same as the cost of jewelry.

The pattern of the relative quantity of luxury goods such as luggage, cosmetics and so on is quite different. The successful mode of jewelry for many years is to invest in high cost activities, to create brand names in many ways, so that the rich people will yearn for their hearts, so as to maintain high prices. The luxury marketing cost is coming from this.

Graff, which has just postponed IPO in Hongkong, has some shocking cases. In 2011, Graff's annual sales volume was about $760 million, while only one rich customer bought a diamond of over $100 million. Insiders disclosed that the top 5 customers usually account for about 30% of the company's sales, while the top 20 customers account for about 45% of sales. According to foreign media reports, Graff's trump card is that they can get some of the most precious stones in the world and sell them to the most valuable customers.

With these brands in China, high cost and high premium models continue in the Chinese market. Exhibition is the first step of brand in China. The exhibition tells the history of the brand and the wisdom of the story, design and craft of the royals and stars.

Unlike the "club" activities aimed at the target customers, the exhibition is faced with a larger group, which aims at the spread of brand stories rather than selling products.

Ceng Wenyong told reporters that at this stage, Chinese consumers are very interested in jewelry. One of their characteristics is that they like to collect information on the Internet first. Some enthusiasts will also calculate the cost of raw materials for jewelry, and then compare their selling price.

After years of brand building, Tiffany, Cartire and other jewellery brands have already tasted sweetness in the Chinese market: some Chinese consumers worship these brands very much, even if the price is high, they are willing to accept it. After that, they feel happier and have more face. {page_break}

　 Focus on long-term returns

China is currently the second largest luxury market in the world, and is expected to take the lead at the end of 2012, with an annual growth rate of two figures. The jewellery market is growing more rapidly. Diamonds, for example, import more than 30% naked diamonds each year.

Jewelry brands have always believed that the Chinese market is the way out for luxury goods, and the brand's investment and marketing efforts in the Chinese market are constantly strengthening.

Actually, jewelry exhibitions are very time-consuming and laborious. Take the work of exhibition collection as an example, only a small part of the collection is left on the hands of the brand. Most of the exhibits with historical stories have been auctioned and handed over many times, and have been privately collected by celebrities and rich people. If the brand is to be exhibited, it is necessary to communicate with the collectors and borrow them in order to deliver the classic stories in the brand history.

"Choosing a place is very important for brand building. As with other brands, activities in hotels do not reflect the cultural details of the brand." The above European luxury agents believe that choosing the Imperial Palace cultural venues such as the Imperial Palace and temple is part of brand marketing skills. Because the exhibition is faced with a larger audience instead of "customers", it will choose a more symbolic and more intimate place like Shanghai Lujiazui and people's Park.

Despite the long and costly preparations and no way to recover the cost from the tickets, the brand is still firmly promoting activities in Beijing and Shanghai.

Ceng Wenyong told reporters that compared with browsing websites and reading magazines, closer to jewelry can give consumers a more direct impression. Unlike buying cars and buying costumes, it takes a long time for consumers to see exhibitions for the first time and make decisions to buy them.

In Europe and America, jewelry has special significance in human life journey. For example, marriage, giving birth, family anniversary, gift giving, etc. In foreign countries, seasonal factors will also affect the sale of jewellery. But in China, consumers don't know much about jewelry. Brands know that they have to be patient enough to nurture consumers' interests.

At the present stage, the number of jewelry brands in China is very small, and the luxurious market activities bring rapid growth of investment costs.

"Business will consider investment and return. The recent high investment of jewelry brands will bring many years of high returns. It will take time to prove that the brand will be built well before the market will grow and even burst. Ceng Wenyong said.