Today there are over 250 million jewelry consumers in China, (there will be 583 million by 2025), including the voracious Chinese version of Gen Y. In 2014, China will be poised to overtake the US as the world’s largest manufacturer. China’s currency. (the yuan), has been rising versus the dollar for over a year.
There’s more. Goldman Sachs predicts that by 2050, China will most likely have the largest economy in the world, followed by the US and Japan. Even more remarkable, by 2050 China, and its manufacturing partner Japan, will be the world’s dominant supplier of manufactured goods and services.
Here are some examples of the Chinese appetite for silver jewelry: The 
Chinese economy will grow by 10.1%, compared to an estimated 3% in the US. The Chinese consumer will have plenty of disposable income thanks to the Chinese government’s economic policies.
Jewelry Industry leaders seem to agree and are scrambling to get a foothold. The International Colored Gemstone Association, (ICA), is developing colored stone promotions in China. Not to be undone, the Indian diamond manufacturing association is opening offices in China.
Even non-jewelry companies are going great guns. GM, struggling in the US, had a 2007 sales increase of 35%. China is one of McDonald’s fastest growing markets. Wall Mart is scheduled to open 100 stores in 2010.
It doesn’t take a crystal ball to see the future market opportunity for the silver jeweler, or for any luxury product for that matter. China offers remarkable growth, not unlike the US economy did in the late 50’s and 60’s.
Warning: Silver jewelers that don’t take a vigorous approach to China will face a threat to their very long-term existence. But, how can the uninitiated independent jeweler navigate the bumpy Chinese landscape? What quick and reasonably efficient marketing/sales defensive strategies can the silver jeweler develop? There are many and here are just a few.
“Warning: Silver jewelers that don’t take a vigorous approach to China could face a threat to their…. existance.”
• Web Site. As a first step — a start — one of the easiest and least expensive is to design a web site that appeals to both US, and Chinese, consumers. Have the site translatable to English and both the Mandarin and Cantonese languages. (These ‘Translation’ programs are readily available.) Don’t forget to use a credit card that accepts the yuan.
• Joint Venture. Through any number of Chinese trade associations, (HKTDC, China Trade Center, many others) contact a trade representative (via local call or email) and ask her to put you in contact with a Chinese-based retailer for possible alliance or joint venture. Be sure to do your homework and carefully outline the type, size, region, language and product mix of the potential partner.
• Jewelry Industry Buying Group. Like many diamond and colored stone associations, open a Jewelry Industry Buying Group Office in China or Hong Kong may lead to both sourcing and marketing opportunities, not to mention market intelligence. One US-based Buying Organization has already started the process.
• Attend Chinese Jewelry Trade Shows. Several Chinese jewelry trade associations hold at least seven shows in major Chinese cities annually, (My favorite is the Hong Kong jewelry exhibition). Attending one of these shows may lead to contacts and alliances.
Finally, doing business in China is no longer an exercise in clashing cultures. In reality, working in China is more like doing business in the US than in Japan. Here are a few pointers – a primer of sorts — of doing business in China.
• Chinese politics and politicians are less corrupt than the old days. Technocrats who are smart and well trained now run the government.
• Chinese consumers love foreign brands (including silver jewelry brands), but when it comes to digital technology they still prefer the local variety that caters to local tastes. This was an expensive lesson for Google.cn
• China is diverse, decentralized and fractured. Local retail development means local opportunity – not national. There are few large retail companies so think local joint ventures.
• Lawyers and accountants are required. Since the 1980’s a cottage industry has developed of ‘selling’ relationships. This is an outdated concept no longer needed.
Now that you have embraced the internet, accepted modern marketing and is comfortable with merchandising concepts, it’s time to look east and adjust to an eastern culture.
China offers an important long-term growth opportunity with implication on your long-term future. Developing business relationships in China could be an interesting and enjoyable personal experience. Pack your bags.
“Several payment alternatives like debit cards and student accounts not only enable teens to buy on the web but also let parents set spending limits and monitor payment activity,” said Jeffrey Grau, eMarketer senior analyst and author of the new report “Marketing Online to Teens: Girls Shop with a Social Twist.” “Yet rather than offer these options, many retailers seem content to drive online teenagers to their physical stores.”
stores,” said Grau. “Some enable teens to shop online and instantly get feedback from peers about a considered purchase. Other help teens mix and match fashion outfits. Online retailers that are seriously interested in building their teen customer base should put these tools high on their list of web development priorities.”
Take Tiffany & Co., for example. Over the years, Tiffany has become a retail channel by itself. Their skilled management team pioneered silver styling, (i.e. remember the 3-pronged Tiffany setting), merchandising, branding, (i.e. Elsa Peretti, Paloma Picasso) and pricing. Silver jewelry has become a strong – if not major — part of their product mix. How big a part is, of course, a carefully guarded trade secret? They’ve been doing their silver jewelry homework for decades.