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WHAT ARE THE OPPORTUNITIES FOR FOREIGN BRANDS IN CHINA’S JEWELRY MARKET?

2020/08/20


The jewelry market in China is still dominated by foreign brands. Chinese consumers greatly appreciate the personalization of the products, the history of the brands and are involved in the design of the jewelry.

 

In China, the products of foreign brands such as Cartier, Bulgari, Tiffany and Swarovski are priced higher than national brands for their long history. While most Chinese jewelry brands have no more than one hundred years of history and the price is of course cheaper. Therefore, the products of foreigners and locals are positioned on two different levels which lead to a specific selection of consumers.

 

In 2018 Chow Tai Fook Jewelry Group maintained the lead in jewelry in China. Chow Tai Fook Group implemented a multi-brand strategy, building high-end jewelry brand image. The company provides a prominent example of a jewelry player who has tried to follow new trends by developing both offline and online.

 

THE MOST IMPORTANT TREND IN CHINA’S JEWELRY MARKET IS THE DIGITIZATION

 

The rapid increase in e-commerce in China has forced traditional retailers to focus on the unique qualities of shopping, leading to the development of integrated multi-channel sales strategies, in which online stores and platforms complement each other.

 

Online shopping has actually become the best national pastime in China with around 77% of respondents choosing it as their favorite recreational activity. 80% of consumers look for and learn about jewelry products and 60% of them buy on the Internet.

 

Almost all the main players in the jewelry industry in China have its own store on Tmall or/and JD.com. I addition, Pinduoduo could be another good option to sell your products on internet.

 

If you want to know how to open a store on Tmall/JD and how to manage it, contact GMA, we offer services like:

 

l Shop Design (We make your shop attractive to Chinese buyers, putting your products on the best possible light)

l In-platform Advertising (Tmall is a more than a store. It is a product Search Engine. We use Tmall promotion tools and Ads to help you Sell)

l Off-platform Marketing (KOL, e-reputation, Banner ads, we have experts for each of these promotional strategies)

l Reporting & Analysis (We monitor your shops & ads results, optimize them to get you the best ROI. Then we provide you with easy-to-digest reports).

 

However, both for big and small companies, with or without a presence in the Chinese market, what is necessary in China is BRANDING. Before to open an online store on this platform, brands should focus on branding and e-reputation as it is essential in China to sell products.

 

HOW TO COMMUNICATE WITH CHINESE CONSUMERS AND CREATE BRANDING?

 

Create a Chinese website to be visible among Chinese consumers is essential for branding in China. Of course, it should be created on Baidu, the Chinese Search engine.

 

In addition, to be visible, your Mandarin website should be hosted in China because Baidu knows only Mandarin and gives priorities to websites hosted in China, so they are extremely important for your SEO ranking.

 


OPENING ACCOUNTS ON SOCIAL MEDIA TO PROMOTE JEWELRY PRODUCTS

WECHAT: AN EFFICIENT CHANNEL TO COMMUNICATE WITH CHINESE CONSUMERS

 

WeChat’s is the most used Chinese social media, with its 1.165 billion monthly active users.

 

It allows companies a complete CRM through:

 

l The ability to create Wechat official accounts (Subscription, Service)

l Interact with followers and keep them updated on brand news

l Use mini-programs, small apps inside the WeChat system that cover various functions, such as e-commerce, games and much more.

l Use wechat pay

l Use wechat advertising (Wechat moment ads, wechat account promotion, wechat mini program ads, wechat article banner ads).

l Cartier was the first luxury jewelry brand to use WeChat moments ads. Thanks to its effort on marketing campaign on these platform, Cartier’s WeChat account gain a huge following. Cartier marketing resulted in raised brand awareness and increased desire from consumers.

 

Besides WeChat, Weibo and Douyin are also witness a joining of jewelry brands. Domestic jewelry brand I DO has 38 thousand fans on Douyin and is one of the most popular jewelry brands on it. Recently, Chanel cooperated with Douyin, posting videos about its watch, gaining up to 73 thousand views.

 

XIAOHONGSHU: THE SOCIAL-ECOMMERCE PLATFORM TO PROMOTE AND SELL JEWELRY IN CHINA

 

Xiaohongshu is an incredible platform to sell jewelry products in China, because thanks to its characteristic of being a social e-commerce, consumers can both receive advice from KOL and trusted people and at the same time, they can directly purchase products on this platform.

 

In addition, live streaming on this platform is very important because in the online market, the biggest challenge for jewelry companies is to inspire trust in customers. Through these videos and thanks to the collaboration with the KOLs, companies can obtain reliability from consumers who see in real-time what they are buying.

 

In addition, recent regulations on improving the reliability of these platforms will increase the possibility of selling your products very easily on the platform.

 

If you are interested in the Chinese fashion market, welcome to CHIC Shanghai.

 

Source: MarketingToChina


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