China’s diamond sales have entered the era of low profit

From traditional store counters, specialty stores, to the online shopping diamonds, to the nowadays high-profile retail stores, while the channel form is constantly changing, diamonds have also entered the meager profit era from a profiteering industry. Take online sales as an example. Although there are many diamond network merchants in the country, the share of e-commerce in the jewelry industry is only about 5%. Network diamond marketing, represented by diamond birds, has revolutionized the lucrative diamond industry by crossing the middlemen with the diamond cutters and consumers. “Using e-commerce to sell luxury goods, prices Only half". There are many successful precedents for diamond network sales, but domestically, many online companies can only win meager profits. In Shanghai, there are dozens of homogenous companies fighting, and industry insiders said, “Their living space is very small, and the general profit is only 10%. If the tax supervision of e-commerce is further improved, the profits of small online stores are almost Zero". Compared with the traditional jewellery industry, online jewelry sales have started shortly, but the competition has been very intense. Recently, according to a leading company in the sale of diamond networks, the “price war” broke the monopoly of the traditional diamond sales on the one hand, and exposed the drawbacks of the emerging model on the other hand. Many small online stores competed for customers and listed prices. It is often the ex-factory price, and profits can only be made through taxation. This kind of competition has become even more fierce after the emergence of cheap hypermarkets. Although the cheap jewellery market has only appeared in the market in recent years, it is still in the stage of cultivating consumption habits, and it is far from the traditional big names in brand value added. However, due to the low transparency of the diamond industry and the relatively narrow audience, it is prone to high profits. However, in an open market environment, some people will stand up and break the rules. Under normal circumstances, a two-carat high-quality diamond ring, in the traditional store counters need 250,000 yuan, through the network direct sales method, its price is about 150,000 yuan, and in the city love shopping mall, its price is 150,000 yuan Still lower. The emergence of cheap diamonds is a new change in the retail format and is the result of full market competition. For the consumer, it is a good thing. But for the operators, it is not easy. "Someone chooses a brand, some people look at the price, some people tend to customize, some people like loose diamonds, and the consumer groups in the future diamond market will be further subdivided. In the end, who can win, it depends on how consumers choose." An industry insider predicts Say. The low price of diamond sales means lower sales profits, and as the market continues to expand, this is a double-edged sword for all sellers. Expansion means new market share, which means new sales growth point, but it also means rapid growth of operating costs and promotion costs, which means that the cost advantage between various types of vendors is constantly competing. Supply chain integration is not in place, channel selection and market mismatch, may lead to competition failure, become weak and even kicked out. Among them, both manufacturers and retailers.

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