Zhou Dafu'S Listing Stimulates Traditional Jewellers To Join E-Commerce Channels

According to the data, China's jewelry industry is growing at a rate of 23.5% per year. In 2011 1~10, the sales volume of the whole industry increased by 69% over the same period last year. The retail sales of jewellery market will reach 250 billion this year.

In the bright future of the market, the use of capital to seize market share has become more and more popular in 2011. Even Zhou Dafu, who has always been reluctant to list, rushed to IPO this year.

According to the insiders, the industry is expected to usher in a collective listing tide due to the impact of Zhou Dafu listing. It is imperative for domestic jewelry enterprises to open the IPO path.

Jewelry companies scramble to open IPO path

A new round of war is the highlight of the jewelry industry this year.

Among them, Hongkong jewel Zheng Yutong Holdings Zhou Dafu jewelry was listed on the HKEx in December 15th.

The Chow Tai Fook expansion plan after listing is also extraordinarily fast. It plans to add 100 new stores every year in the next 10 years, and the number of stores will reach 2000 by 2016.

Zhou Yunshan, the industry insider, pointed out that jewellery industry is keen to go public, which is closely related to the concern of venture capital. More and more wind investment funds have been invested in this industry, and IPO has been unusually hot in the industry.

On the one hand, investors are enthusiastic and enthusiastic, and on the other hand, they are eager to expand their businesses. In 2011, they are doomed to be an unstable year for jewelry companies with strength.

Diamond family leader told reporters that there are no less than 10 investment institutions in frequent contact with them, including Morgan chase, Sequoia Capital and other well-known investment institutions.

Jewelry industry is attracting more and more attention from investment circles. Social capital will also flow into the precious metal industry through various channels and ways.

It is understood that at present, about 2000 enterprises are waiting for the domestic gem listing, including jewelry enterprises from Jiangsu, Shanxi, Zhejiang, Shanghai and other places.

The industry expects that in the next 3~5 years, more and more traditional jewellery companies will join the capital market camp.

In addition to traditional jewelry brands, more and more diamond dealers are also concerned by venture capital funds.

Following the first half of this year, diamond small birds and BLOVES diamond ring nets received $50 million and 100 million yuan in venture capital respectively. In June this year, Kelan confirmed that it had completed tens of millions of dollars in financing.

With the power of capital, diamonds, birds, Kelan, BLOVES and other enterprises have revealed their ambition to go to IPO.

"The reason why Internet diamond sales can attract the eyes of VC is mainly due to its strong growth in sales and vast space for market expansion."

One industry insider said so.

Zhou Zhihong, a veteran in the industry, believes that during the vigorous development of jewellery e-commerce, the scale of enterprises has also expanded rapidly and the market share will gradually increase due to the introduction of large amounts of capital.

The jewellery distributors who are popular with venture capitalists will continue to expand with capital, and on the other hand will accelerate the integration of upstream and downstream resources with their own and investors' background strength, and actively open up the network marketing market.

Traditional jewellers take part in e-commerce channels

Since e-commerce has been involved in the sale of traditional products, new jewellers have taken the banner of the price to attack the city, and seized the market share of traditional jewellers, and achieved instant results.

The development of online jewelry retailers is so fast that many traditional jewellers have to spend more time and energy to improve their company's website pages and functions, and even set up a network marketing department to take charge of related online sales business.

Although such measures do not achieve much in the short term, the traditional jewelry dealers have not completely ignored the market.

A few days ago, the domestic jewelry industry "one brother" Zhou Dafu, Zhou Shengsheng and so on, have high-profile marches into Taobao mall, Zhou Dafu also began to develop their own B2C platform, which makes the mainland jewelry business competition suddenly add variables.

It also means that the domestic jewelry business camp represented by diamonds, birds and Kelan will usher in a new rival.

It is understood that since 2008, in the face of the white hot competition of traditional jewelry industry, wholesale wholesalers and retailers of traditional channels have also opened online shops. The famous brands such as Jin Zhi, Chao Hongji, and diamond family have cooperated with some large websites to open up online shopping centers and direct Internet outlets, such as recommendation, promotion and so on, which fills the blank of the network jewelry market to a certain extent.

However, there are people in the industry that, from the present point of view, the website browsing rate of traditional shops is not high enough to be reduced to a display.

It is a question for every brand to think about how the traditional jewelers can play their original channel advantage in the future and build up a larger market by combining the established sales network with the innovative marketing mode of the network.

Adjusting marketing mode and launching siege strategy

It is understood that domestic jewelry retailers mainly use self chain, distribution and affiliate three chain models, these three models have advantages and disadvantages in channel development, brand building and profitability.

The famous jewelry listed company Lao Feng Xiang mainly adopts the mode of distribution and affiliate, and develops wholesale business at the same time. Wholesale business accounts for about 70% of its business income. Chao Hong Ji mainly adopts self operated mode, the number of self owned stores is only inferior to Zhou Dafu's. In recent years, the company is still accelerating the expansion speed of its own stores.

The sales mode of Hongkong jewelry brand in the mainland also varies widely. Zhou Dafu mainly operates through self operation, cooperation and franchising, and its expansion speed is fast. In the short term, stores can reach hundreds or thousands of stores, but the management quality of franchised stores may be affected. Chow Sang Sang and Xie Ruilin are operating in all self operated mode, although the shop speed is slow but stores are controllable in quality, while the six Fu mainly operate through franchising, and develop franchisees in the mainland and quickly open stores.

It is understood that many jewelry brands have changed their original strategy this year and reopened the franchise policy.

For example, Zhou Dafu began to pform into a "direct + franchise chain" channel mode, and asked the franchisee to start operation capital in 5 million to 6 million yuan.

Zhou Dafu, head of the marketing department, said that the consumption level of the central and western regions varied widely, and the management was very difficult. Instead of joining the business, they could disperse the risk of developing the three line market.

Kim Chung jewellery also suggested that the expansion in the Mainland mainly operated in self operated way in the first tier cities or provincial capitals, while franchised business in the two or three tier cities was launched, and the "100 City thousand stores" shop plan was launched.

With the strength of joining, the domestic brand Zhou Dasheng expands at the speed of 500 new stores every year. Up to now, it has reached 1800 franchised stores and more than 300 self operated stores. The marketing network covers more than 300 large and medium-sized cities in the whole country, and even Tibet can see Zhou Dasheng's figure.

The person in charge of the company said that the profit of the three or four line city is a branch of the two line cities. Compared with the first tier cities, the operation cost of the three or four line cities is much smaller and the profits are objective.

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The survey conducted by Hongkong TDC in 10 mainland cities in May this year shows that most mainland respondents who are of the same quality are willing to pay a higher price for the Hongkong brand, with an average premium of 46%, which is 10 percentage points higher than the 36% in 2007.

Reporters from a number of surveys found that mainland consumers generally have a certain understanding of Hongkong's jewelry brand.

In the eyes of many consumers, Hongkong brand is a guarantee of quality, and also represents fashion and taste.

Hongkong jewelry brand occupies almost half of the jewelry market in the mainland, and its winning rules include two points: unique mosaic technology and unparalleled design speed.

Plagiarism is an unsolved problem in the world's jewelry industry for hundreds of years.

Hongkong designers, using their super design capabilities and speed, can only copy the plagiarism.

Hongkong's smaller jewelry companies can design more than 300 new and nearly 10000 new products into the market every month, so that plagiarism can not keep pace with Hongkong.

However, in recent years, with the rapid entry of European top brands and the rapid rise of Chinese brands, Hongkong's jewelry industry is also under pressure.

At present, the Hongkong department is mainly concentrated in the high-end market. If there is a strong enemy before the pursuit of troops, whether the jewelry brand of Hongkong can continue to make brilliant achievements remains to be verified by the market.