How To Break The Impression Of "Low Price And Low Quality" When Gold Jewelry Wants To Use Live Broadcast To "Go Out Of The Circle"?

At noon on August 8, Shuijing geefei, located in the Shuibei international jewelry trading center in Luohu, Shenzhen, there was not a large flow of people in the three-story building with more than 10000 square meters. All the sales staff in white shirts and uniforms were looking forward to customers.

"Chinese jewelry looks at Shenzhen, Shenzhen jewelry looks at Luohu, Luohu jewelry looks at Shuibei." Shenzhen Shuibei is the largest gold and jewelry industry belt in China, producing more than 70% of China's jewelry. It has gathered a number of brand factories such as Zhou Dasheng, ZOKAY and China gold. According to the data, the business income of Shuibei will reach 113.07 billion yuan in 2020, accounting for about 50% of the domestic gold and jewelry wholesale market.

As a traditional industry with a trillion yuan market space, gold jewelry is facing new opportunities and challenges in the Internet era.

On the one hand, the scale of online jewelry sales has gradually expanded in recent years, with the proportion of online sales increasing from 2.6% in 2014 to 7.2% in 2019. Especially under the catalysis of last year's epidemic, online jewelry sales further expanded. According to the "2020 Taobao live broadcast new economic report", jewelry categories ranked sixth in terms of viewing volume, and online channels have opened up new markets for traditional jewelry.

However, on the other hand, online jewelry products are mainly gold, K-gold, pearl and silver jewelry, with relatively low customer unit price. There are often problems such as wrong board, difficult to distinguish the authenticity and lack of after-sales protection. Consumers lack trust in online channels, resulting in low online transaction volume and high return rate of jewelry products.

"Because it is difficult to distinguish the authenticity and style of online goods, we still prefer offline products." A businessman in Shuibei jewelry trading center told the reporter of the 21st century economic report that after the epidemic, there are often anchors from live e-commerce to purchase goods in the store. However, he believes that there are also many pain points in online jewelry sales, and it is difficult to shake the current jewelry sales pattern mainly offline in a short period of time.

"Out of circle" by live broadcasting

The 21st century economic report reporter visited Shuibei international jewelry trading center and found that the three-story building is divided into four areas: brand area, jadeite District, kkin district and silver jewelry district. With a total business area of more than 10000 square meters, more than 100 jewelry brands are concentrated, covering almost all kinds of jewelry products. Most of the merchants in the center are wholesale, and less directly sell to consumers.

As far as I can see at noon on the 8th, there are not many customers on the spot. Most of them are couples. Occasionally, I see customers who come alone to select products. Due to the small flow of people, every customer can get the introduction and guidance from the staff in the store when selecting accessories.

A businessman in kkin District told the 21st century economic report that online e-commerce and offline retail are wholesale in their stores, but at present, most customers are offline retailers. In contrast, the prices of products sold online are relatively low. When asked about the impact of the epidemic on the gold and jewelry market, most of the merchants said that they felt the change, "all of a sudden, there were a lot of live broadcast operators coming to wholesale.".

In recent years, the live broadcasting industry has risen rapidly. Compared with online stores, live e-commerce has better product display and publicity functions. According to AI media consulting data, from March to April 2020, jewelry will rank among the top 5 live sales. In addition, according to the statistics of top 100 anchor with goods carried by CASS data, the sales volume of jewelry accessories accounted for 8.43% during the period from July 1 to July 7 last year, ranking the fourth among all categories.

At 12:00 p.m. on August 8, Simba Shenzhen "Jewelry Festival" started on time, and its popularity once reached 2.3 million. According to the data of Xinxuan company, the live broadcast of simbashin, the head anchor, was determined to complete the actual payment of sales of 850 million within 12 hours, setting a new record of live delivery with goods in the jewelry industry.

Two days ago, Xinxuan group entered Shenzhen Shuibei, the largest gold and jewelry industry belt in China, and signed a contract with 15 gold and jewelry brands including Zhou Dasheng and ZOKAY. This live broadcast is the first live broadcast of the cooperation between Xinxuan and Shuibei industrial belt.

Xue Kun, chairman of the youth jewelry entrepreneur Committee of China jewelry and jade jewelry industry association, told reporters of the 21st century economic report that at present, most of the products in Shuibei industrial belt are still in the white brand stage, and the lack of brand operation leads to the low product premium ability. In his opinion, the cooperation between the industrial belt and the live broadcasting institutions is an innovation "out of the circle". He hopes that the value of Shuibei jewelry can be reflected with the help of new business model, so as to better promote it to the whole country.

The live broadcast of the day started with a 5g gold bracelet from chaohongji. According to Hao Taotao, head of supply chain jewelry of Xinxuan group, 5g is an upgraded hard gold process, which has many advantages. However, at present, the price of 5g gold jewelry is much higher than that of ordinary gold, and it is often "sold by piece".

Through this cooperation, Xinxuan has greatly reduced its processing cost with the advantage of scale, so that 5g gold jewelry can also be sold by gram. It is reported that the gold gram of the bracelet weighs more than 10 grams, and the price in Simba's live broadcasting room is 4999 yuan, which is far lower than the offline price. "Getting on the train" was robbed. Finally, more than 13500 pieces were paid and the sales volume exceeded 67.7 million yuan.

Subsequently, gold jewelry from Chow Dasheng, BOC gold bank, ZOKAY and Cuihua gold store, as well as pearl jewelry from Ruan's, pearl beauty and Demi brands also appeared in the studio. After the whole live broadcast, the sales of chaohongji and Zhou Dasheng were close to 200 million, and the sales of more than 10 brands exceeded 10 million.

Transformation in progress

At present, the market scale of China's gold and jewelry industry is huge. According to statistics, China's jewelry consumption continued to increase from 2014 to 2019, reaching 750.3 billion yuan in 2019, with a year-on-year growth of 7.37%; It is estimated that in 2021, the number of domestic jewelry consumption users will reach 1.05 billion, which will be the largest jewelry consumption regional market in the world.

With the increasingly mature market, young consumers have gradually become the main force. How to find new growth points has become a major problem for major gold and jewelry enterprises. Many brands have turned their attention to online.

At present, domestic jewelry sales are still dominated by offline sales, accounting for less than 10% of online sales. Compared with foreign countries, there is still room for development of online sales channels. The proportion of online sales of jewelry industry in the United States and the United Kingdom in 2019 will reach 22% and 14.4% respectively.

Zheng Bingxi, executive director of zhoudafu Jewelry Group, mentioned in an exclusive interview with 21st century economic reporter that after more than a year of epidemic, jewelry online penetration began to change, and now jewelry industry Omni channel operation has become a common phenomenon.

According to the financial report, in fiscal year 2021 (from April 1, 2020 to March 31, 2021), the revenue of Chow Tai Fook was HK $70.16 billion, up 23.6% year on year; Among them, the retail value of e-commerce and o2o related businesses in mainland China increased by 91.8% year-on-year, with retail value accounting for 7.1% and sales volume accounting for 14.7%.

In addition, chaohongji, Zhou Shengsheng, Zhou Dasheng, China gold and other companies also experienced performance growth in the first half of the year. In addition to the recovery of consumption and the rebound of consumption caused by the fall of gold price, online sales channels also contributed a lot of increment. Data shows that from January to June this year, chaohongji's revenue increased by 62.82% to 2.296 billion yuan, of which the sales revenue realized through the third-party online platform increased by 31.79% to about 413 million yuan, accounting for 17.98% of the total sales revenue.

Zhou Dasheng's performance forecast shows that the company's first half profit is expected to exceed 600 million yuan, with a year-on-year growth of more than 81.52%. In the first half of the year, China's gold revenue reached 26.6 billion yuan, a year-on-year increase of 72.13%; The net profit attributable to shareholders of listed companies was 400 million yuan, up 187.86% year on year. Zhou Shengsheng estimates that the profit attributable to shareholders in the first half of the year will be 518 million to 539 million Hong Kong dollars, an increase of 145% to 155% over the same period last year.

In Xue Kun's view, online has become a channel that can not be ignored for brand merchants. However, there are still many pain points in online jewelry sales at present, mainly due to the lack of shopping experience, difficult quality assurance and after-sales short board. Even Simba himself confessed that since entering the jewelry category in 2020, he found that the live market was full of "not gold, not jewelry" products, and had to give up jewelry category temporarily in the second half of last year.

Until the first half of this year, Xinxuan began to re-enter the layout. It is revealed that next, Xinxuan will cooperate with 15 brands in Shenzhen Shuibei jewelry industry group, such as Zhou Dasheng and ZOKAY, in terms of flow, R & D, design, operation and after-sales service, and enable the brand by cultivating professional anchors and c2m customized supply chain. For live broadcast organizations, the cluster advantages of Shuibei industrial belt, such as supply chain and detection institutions, as well as mature offline scenes, can solve the problems of live selection, operation and after-sales.

Compared with offline products, the unit price of products sold through online live channels will be cheaper. The industry hopes to break the stereotype that "low price does not mean low quality. What we need to do now is to make jewelry more civilian and more people-friendly." According to Hao Taotao, at present, the overall return rate of Xinxuan's gold and jewelry products is maintained within 5%. In the future, Xinxuan will continue to cooperate with the brand side to develop jewelry with high cost performance.