Chinese consumers are now synonymous with luxury products, and this includes jewelry. The Chinese market is the new target for luxury and glamour for many types of jewelry. These trends, along with rapid urbanization, a flourishing middle class, and a young generation of sophisticated shoppers, signals exciting opportunities for China and the jewelry industry.

Jewelry is the one most luxurious product in the market. Diamond jewels, on the other hand, are a girl’s best friend. Give her diamond jewellery, and the chances that she’ll decline would be 1 to a 100. Same goes with the Chinese market. The Chinese loves diamonds, especially for working women. This jewellery is made for gifting, for daily wear, or for special occasions.

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The boom of E-commerce in the Chinese market

China became number 1 in terms of on-line sales, surpassing the United States, last year 2013, with almost a billion Chinese people using their phones to connect to the Internet and 242 million of these buy on the Internet. 22% of these Internet buyers make over 40 on-line purchases per year, that’s 27% of the disposable income of Chinese in first class cities. The Chinese e-commerce revenue was around 210 billion in the year 2012 with 120% average annual growth rate since 2003. 177 billion acts of on-line purchases were noted in 2012 and 9 out of 10 of these transactions were paid using electronic payment services. It is estimated that the total sales in China would exceed 650 billion by year 2020.

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Luxurious jewelry finally entering the E-commerce market

Vummidi Bangaru Jewellers, an Indian jewelry company, has partnered with AVT Lifestyle Products to launch Za Amor. Za Amor would be an e-commerce website to sell Vummidi Bangaru’s diamond jewelry to the Chinese market. The e-commerce site is planning to offer exclusive jewelry designs as well as made-to-order pieces.

Run by two brothers, Jithendra and Amarendra Vummidi, the Vummidi Bangaru Jewellers and AVT are going to invest 100 million Indian rupees or 10.12 million RMB (US$1.7 million) into the venture. 60 million rupees will go toward jewelry inventory only.

With the demand for diamonds in China rising to 18% in the last year, the Chinese diamond market appears pumped for the new e-commerce venture. According to Inside Retail Asia, Za Amor is expecting to generate Rs100 core ($17 million) sales in three years.

Za Amor has already made agreements with five jewellery companies to design and manufacture jewelry of its website and is talking with four more jewellers. It will rely on DHL for logistics support and National Insurance to insure the jewelry.

Major issue related to selling diamond jewellery online

There are several issues related to selling diamond jewellery on-line, the major issue would be proving authenticity. Though China is following the rules of Kimberly Process Certification Scheme, which means that all imported diamonds are inspected and ensured to be cruelty free, the consumers think that counterfeits are hard to defeat. For example, there are continued claims of Taobao turning a blind eye to counterfeits.

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Za Amor’s public reassurance

Due to this issue, Za Amor has devised a business model to ease shoppers’ minds. According to India Times, Za Amor will allay customers’ fears by partnering with retail chains to which the orders will be shipped, allowing the buyer to inspect the product in-person. This move shows Za Amor’s familiarity with the Chinese market, as Chinese consumers prefer to try products in-store before buying them. Luxury products have been using the in-store experience as an opportunity to provide customers with a luxury education.

The biggest hurdle now for the company may be brand recognition, and thereby, credibility.

Online campaign for jewelry brands in China

The best on-line campaign for Jewellery brands in China is through commercial product placement, according to many studies shown by different luxury jewellery brands. Of course, campaigning through social media is a bit hit for the Chinese market, as well. Take note of how the two most popular jewellery brands in China, Cartier and Tiffany & Co marketed their products in China and around the globe here.

For further information about on-line marketing into China, click here or here

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