At present domestic high-end market, mainly occupied by Tiffany & Co. Carrier and other international jewelry giant monopoly. The competition in the end market is intense, main competitive brands are in Hong Kong Chow ATA Book, Chow Sang Sang, TTS TU-Lune, Old Phoenix Book and in the mainland, the Old Temple Gold, Villa Store, etc. From sales category, the main products for high-end market higher gross profit margin of inlaid jewelry and diamond ornaments, and mid-market’s main products is relatively low gross profit margin of gold and platinum jewelry.
Due to the high-end brands per item price is higher, inventory turnover is relatively low, but in the end the brand the small commodity prices are relatively low and accounts for part of jewelry wholesale business is higher, so the higher inventory turnover. In addition, sales of high-end brands higher than mid-range brand. Foreign luxury brands and Hong Kong brand, with its high profile, strong fashion sense, and retail channels, rapidly develop in the domestic market, and promote the jewelry into the ordinary consumers in the process of life.
At the name time, foreign brands to enter for the domestically industry has brought the advanced management experience and flexible operational mechanism, exquisite production technology, high quality products exhibition, the advanced marketing idea, which prompted domestic jewelry enterprises gradually stepped into the stage of brand operation and competition. With the improvement of consumer demands for quality, high popularity, high brand reputation enterprise’s products are more and more concentrated. High-value brand could expand the customer base and market influence, increase customer loyalty.
And high-value brand companies will also earn higher value-added products and gross margin, so in recent years, in major jewelry company has gradually speed up the brand construction, and improve profitability and competitiveness. In addition, the jewelry design is also more valued by consumers. The product design ability has become a core competence of jewelry enterprises to gain market share. And on the present market, Hong Kong jewelry brand such as Chow Sang Sang, Chow ATA Book, its design is relatively single and lack of originality, product ingenuity phenomenon is serious, which at a disadvantage position.