2021-06-09

The live broadcast room sold 150 million, who is supporting the hundreds of billions of jewelry market?

By yqqlm yqqlm
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Production| Entrepreneurship Forefront span>

Author | Pay Yancui

Edit | Feng Yu

This year’s Young people’s standard action for going out has already been compared to the mirror to see if the clothes match is reasonable , Turning into a mirror from time to time to adjust necklace, earrings, and then stretch out your hand to look at the combination of bracelet and ring Is it appropriate?

actual Jewelry As clothing accessories, jewelry is playing an increasingly important role, and at the same time it has gained a lot The favorite of young consumers. Data show that from 2014 to 2019, my country’s jewelry consumption has increased year by year, reaching 750.3 billion yuan in 2019, an increase of 7.37%year-on-year. In 2021, domestic accessories consumption demand user scale is expected to reach 1.05 billion.

Headwear , Necklaces, earrings, bracelets, rings… Consumers are more and more aware of pleasure, and even buy jewelry according to the needs and circumstances of going out. Some people even reward themselves according to the mood or the quality of the work. Some entrepreneurs admitted frankly that the annual consumption of their core users has exceeded 10,000 yuan, and the repurchase rate is higher than 70%.

In In this context, the jewellery industry has become a gold track for capital institutions to preemptively register.”Now it’s a consumer competition. Dao’s institutions are watching the jewelry track.” An entrepreneur pointed out.

but Compared with other industries, the jewellery industry supply chain has complex chains, relatively backward mechanization, and industry entrepreneurship The threshold is high, resulting in not many companies entering. Some people even bluntly said that the jewelry industry is in a closed state, and the industry is too tradition, most Internet people don’t understand the industry, so the jewelry industry has long been in the”Lack of arms and legs“.

When Young people fall in love with jewelry, what new stories will happen in the industry?

1. Young people love jewelry

From the 1960s, the”big family” used three silver dollars to make two bracelets for the bride, to The”three golds” as the standard for the betrothal in the 1990s, and then to the De Beers slogan”diamonds” Forever, one is forever spread”, jewelry has always existed as a necessity of China wedding celebrations.

but With the continuous development of my country’s economy and the upgrading of residents’ consumption, today’s jewelry purchase scene is starting from the wedding market , And gradually become more diverse.

Facts Indeed, in the 2008 De Beers survey report on China, 80%-85%of consumption came from wedding scenes. But by 2016, while the overall jewelry sales continued to rise, the proportion of consumption for jewelry purchases due to wedding reasons had fallen to 30%to 40%.

Consumers have higher and higher requirements for the overall image. Different accessories can not only add points to the overall appearance of consumers, but also show consumers’ fashion temperament and taste in certain scenes. Therefore, more and more consumers are willing to pay for jewelry according to different consumption scenarios.

In this regard, light jewelry fast fashion brand Meiqi founder and CEO Long Jinfang has a deep understanding Experience.

as The founder of the company, in order to better understand the needs of users, Long Jinfang will also participate in the operation of the company’s private domain community. She clearly feels that more and more users will share with her or ask her which styles of pearl necklaces should be matched in scenarios such as reporting on work, business banquets, dating, friends gatherings, and blind dates.

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Pictures/provided by Meiqi Jewelry

“Meike’s users are also more and more willing to work for specific scenarios The cost ranges from a few hundred to several thousand yuan.” Long Jinfang revealed to the”Forefront of Entrepreneurship” that now Meiqi’s The average unit price of the product is about 1,000 yuan, and the core user’s annual consumption has exceeded 10,000 yuan, and the repurchase rate is higher than 70%.

She I believe that the reason for this series of changes may be that the 70s and 80s or older Chinese were more restrained and not good at expressing, but now young people are influenced by multiculturalism and are more willing to express themselves according to the occasion.

Gold Zhong Weiping, CEO of Beishi Jewelry, a jewelry supply chain brand, also found that more and more consumers are paying more attention to the matching of accessories.”They will decide to wear a set of jewelry because they see their best friends, and they will also match them according to the difference of a lipstick number. Different accessories will even decide which set of jewelry to wear according to your mood.”

In fact, jewelry has become a pleasant product for young people to meet their spiritual needs every day.

Long Jinfang said for example, she often sees users sharing daily life in Moments. Among them, many users will take the initiative to say that after a week of busy, they need to give themselves a gift, and then choose an accessory to sell. Single; some users will say that they need to reward themselves during this period, so they choose an accessory to give to themselves; there is also a post-90s parent who feels uncomfortable because her child did not perform well at school, causing her to be found by the teacher to talk , Just buy an accessory to comfort yourself.

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Pictures/provided by Meiqi Jewelry

“Nowadays, jewelry is no longer a luxury, but has become It’s as common as buying clothes.” Zhong Weiping told the “Frontline of Entrepreneurship” that the earliest main consumption of jewelry was indeed the wedding market, but now female users are more financially independent and do not need men to give them gifts. Instead, they buy jewelry more frequently. high.

” My wife has 22 Jewelry box, filled with gold, K gold, silver, copper, etc.Material jewelry.” Zhong Weiping used his post-80s wife’s experience in buying jewelry as an example,”These 22 jewelry boxes, each box must contain hundreds of jewelry, and there is only one conventional diamond ring. I gave her when we got married, and she bought the other accessories because she liked it.”

While studying the jewelry market, Zhong Weiping also found that young people’s requirements for buying jewelry brands are decreasing, but they are willing to buy good-looking and design-conscious brands. Trinkets.

” She would not buy big brands like Cartier and Bulgari. On the contrary, the material is not very low, and it looks good. She will like jewelry with personality.” Zhong Weiping once again took his wife’s jewelry as an example,”I haven’t counted how much my wife spent on jewelry. The average customer unit price ranges from tens to hundreds of yuan, and the most is Thousands of dollars, but it cannot hold up the high frequency of consumption.”

According to Euromonitor’s forecasts, with the continuous development of the domestic economy and the rapid growth of national income, consumers’ demand for jewelry will increase day by day. The jewelry industry in China will continue to grow in the next five years. Both will maintain a growth trend, with a compound annual growth rate of 4.5%in market size. It is estimated that by 2026, the market size of China’s jewelry industry will reach 789.29 billion yuan.

all kinds Signs indicate that the current changes in the main consumer groups and the increase in consumption frequency have brought new growth to the industryopportunities. In other words, jewelry has successfully”broken the circle.”

2, high threshold to make”small” money?

Consumer jewelry It has become a trend, and many capital institutions have also taken advantage of the opportunity to take aim at the jewelry industry.

“In the past, maybe 1/10 institutions watched the jewellery track, but now a consumer organization is watching the jewellery track.” Before starting his own business, Long Jinfang worked at the Inno Angel Fund and Huachuang Capital does angel investment, so I am very familiar with the capital circle. Recently, she discovered that in the big consumer sector, the jewelry category is particularly concerned by capital.

Zhong Weiping It was also revealed to the”forefront of entrepreneurship” that capital is indeed very interested in emerging jewelry projects.”We met with 40 or 50 related institutions before and after this round of financing.” Beishi Jewelry was established in July last year and completed an angel round of financing of tens of millions of yuan in February this year.

Facts In recent years, the capital market has indeed paid much attention to the jewelry market.

Enterprise Checking the data shows that from 2010 to the first quarter of 2021, a total of 266 financing incidents occurred in my country’s jewelry industry, with the disclosed financing amount exceeding 13 billion yuan. In the first quarter of this year alone, there were 7 financing events. Among them,”China Gold”,”Mankalong” and”Holy Brand Jewelry” have been listed,”Vow OneSWEAR” and”Zhubaoyi” completed Series A financing, and”Gourd Beast””Beishi Jewelry” has received angel round financing.

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The favor of capital also proves from the side that the jewelry industry itself is a profitable business .

Long Jinfang said that even if jewelry is not as easy as clothing, it is several times the profit. For example, the gross profit of jewelry above k gold is less than 50%, but there is no profit in the jewelry business,”Although you can’t make a lot of money. ”

The operation of Zhong Weiping’s company seems to confirm this. His company was established less than a year ago, and the average monthly sales have reached more than 1 million. He added that although the net profit is less than 10 points, the model has now worked, and the profit will increase with the increase in sales.”And we are also launching our own brand, the net profit will be higher.”

Beishi Jewelry mainly adopts S2K2C distribution model (supply chain end-KOL-consumer), and upstream connects jewelry supply including brands, counters, and factories Business, downstream docking with small and medium-sized anchor to sell to the C-end.

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Picture/Provided by Beishi Jewelry

Of course, this does not mean entrepreneurship in the jewelry industry easy. On the contrary, because the materials made of jewellery are precious metals such as gold, diamonds, jade, K gold, silver jewelry, etc., companies will inevitably need a large amount of capital reserves, coupled with the complex supply chain, the threshold for the jewelry industry is quite high.

Long Jinfang told”Forefront of Entrepreneurship” that she knows a jewelry brand that focuses on”structure”. The brand is mainly product-oriented, and each product can be transformed into a different jewelry.”They have been preparing for two years, designing three or four hundred categories, but the products have not yet been launched.”

Zhong Weiping also said that the jewelry industry is a typical asset-heavy model, and the financial pressure will be very high. For example, when he finds cooperating small and medium-sized anchors to broadcast live, if the anchors say that they will sell 500 million yuan of gold in one night, he will first buy the gold and then sell it. And no one can guarantee that the anchor can sell 500 million yuan of gold, even if he sells 500 million yuan, if consumers return the goods, it will also cause financial pressure.

贝Shi Jewelry mainly sells goods through live broadcast cooperation with the anchor, and each platform generally has a settlement cycle of about 15 days. For example, after an anchor live broadcasts, consumers place an order, and it often takes a week from delivery to consumers. It often takes another week for consumers to confirm receipt of the goods and produce return problems.

” We buy goods every day. If we prepare 1 million goods every day, although part of the funds will be returned in these 15 days, at least 10 million yuan will be needed for the goods.” Zhong Weiping said.

One Entrepreneurs of a jewelry store in a shopping mall in Gu’an also complained to the”frontline of entrepreneurship”,”earnings All the money is in stock.” He said that the store is very large, and each piece of jewelry is thousands or even tens of thousands of yuan, but the financial pressure is very great. “A lot of funds are borrowed and I still rent a house.”

Zhong Weiping Frankly speaking, the barriers of the jewelry industry are very high.”In fact, it is hard work. It is not easy to develop and grow.”

He continued to explain that jewelry is a non-standard category and cannot be the same as other standard products because of the degree of mechanization High, it can produce 100,000-200,000 products in one night. “Jewelry needs to go through the whole process of designing, stamping, production, inventory, wholesaler and then branding from design to brand. This process takes at least one to three months.” Zhong Weiping added.

and At the same time, the very complex jewelry supply chain has also raised the threshold of the jewelry industry.

Jewelry There are many materials involved, and each material such as gold, silver, pearls, diamonds, etc. has a corresponding supplier. There are many links involved in each material. Different materials and different types of products require different processes.”Even the factories that do welding and electroplating are different, so many people are afraid to come in.” Zhong Weiping said with emotion.

Preliminary Factors such as the need for large amounts of funds to suppress goods and the complexity of the supply chain have set a high threshold for the traditional jewelry industry.

3. ​​The eve of the outbreak of online jewelry

Compared with other traditional manufacturing industries in China, it is a non-standard jewelry industry It is indeed very traditional.

“Looking at, in the entire jewelry industry, there are particularly many companies with’lack of arms and legs’.” Long Jinfang admitted frankly that Internet talents in the industry are generally unwilling to try in complex industries, but are engaged in the industry. Talents often react dumbly to embracing the Internet. For example, those who are more of a designer, although they understand the resources of the supply chain, their knowledge of users is often not as good as Internet people who have been tempered for more than ten years.

In Two or three years ago, the end of the jewelry industry chain could even be described as closed.

Dragon Jinfang took the factory’s service model as an example. At that time, the factory’s service was very simple and rude, and the factory was only responsible for producing products and selling them to suppliers and brands.”You give me the money and take the goods away, and this is over. If you want them to cooperate with the delivery, they will never do it.” She said.

but When there are”stubborn diseases” in the industry, there are often new opportunities.

more Entrepreneurs in the jewelry industry have told the”frontline of entrepreneurship” that after the epidemic, the rapid development of social media and content e-commerce in my country, and the rise of new models such as KOL planting grass and live streaming have led to the gradual expansion of online jewelry sales. Online and digital have become new opportunities for the jewelry industry.

” Last year, on live streaming platforms such as Douyin and Kuaishou, the jewelry category was one of the categories with the highest growth. Even platforms must rely on various rules to control the growth of jewelry sales.” Long Jinfang felt that two or three years ago , Everyone is not so sensitive to online jewelry, but now that live streaming has become mature, more and more entrepreneurs are beginning to be interested in jewelry categories.

Facts Indeed, China Gold once set a record of 150 million yuan in brand-specific live broadcast sales in Hu Haiquan’s Douyin live broadcast room, Zhou Dasheng /span> The financial report also mentioned that the live broadcast of goods has driven the group’s online sales growth.

Dragon Jinfang revealed that even now many factories are actively trying to make their own jewelry brands and selling goods through live broadcasts, and even factories are starting to do social marketing.

Zhong Weiping The reason for starting a business is also because of the opportunities for online jewelry. He believes that online live broadcast is a good opportunity for development.”Jewelry is a very well-displayed category. Consumers can see the products worn by KOLs by opening short videos, and consumers can easily make purchases when they look at the products.”

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Picture/KOL recommends Beishi jewelry in the live broadcast

The most important thing is that before selling jewelry products, consumers need to search for the corresponding products, and The short video push mode has changed from the former people looking for goods to the current people looking for goods, which has stimulated consumers’ purchasing needs.

From Some clues can be seen in the online rate of the industry. Public data shows that the scale of online jewelry sales is gradually expanding, and the proportion of online sales has increased from 2.6%in 2014 to 7.2%in 2019.

Comparison It can be seen that there is still room for improvement in the online penetration rate of the jewelry industry. According to data released by the National Bureau of Statistics, the online penetration rate of commodity online retail will increase to 20%-25%in 2019. Among them, electronic appliances are suitable for online sales due to standardization of categories, and their unit prices account for 42%of total online sales.

worth it It’s worth mentioning that even Japan and British designers are also on Tmall, E-commerce platforms such as Jingdong, NetEase Koala and other e-commerce platforms have opened online stores.

After the epidemic, with the rise of online live streaming, the jewelry industry is ushering in a transformation. In the past, traditional practitioners are also working hard to embrace the Internet and users.

“Now the entire industry chain is very actively trying to reach users and service brands in new ways.” Long Jinfang revealed that today’s factories will actively cooperate with the needs of various sales channels. Able to cooperate with delivery.

In addition In the production cycle, the trend of factories actively cooperating with the needs of brand owners is also particularly obvious.

Previously It takes 30 days for a custom jewellery to be ordered from the factory to production, because after the brand places the order, the factory has to purchase various materials on the necklace, and then slowly polish it.

” Now after the cooperation between Meike Jewelry and the factory, it can be produced in as long as 7 days.” Long Jinfang was the assistant to the president of Xinrui Automobile Group. She has management experience in the automotive industry and referred to the management method of industrial design. After the parts are disassembled, the factory will also prepare jewelry parts according to the brand. After the user places an order, the factory can directly combine them for production.

” The jewelry industry is on the eve of the storm.” As Long Jinfang said, there is huge room for progress in the industry, but it depends on who can complete the evolution first.

* The title picture in the article comes from Photograph.com and is based on the VRF protocol.