Traditional instruments of jewelry trade in China include mainly retail stores, franchises, television stores and network sales. In the 21st century, the information age, we can see the development of a completely new model of selling jewelry - e-commerce. For China, it is relatively new, because two years ago the success of jewelery trading through the Internet was in great doubt. By 2010, however, many Chinese jewelry companies have already safely acquired their websites with the functions of online stores.

Vice Chairman of the Diamond Federation of Hong Kong Nelson Ho (Nelson Ho) believes that the main advantages of e-commerce for the jewelry industry are:

Lower operating costs

In general, the costs of retail companies can be divided into three parts: transportation costs and delivery, the functioning of the store, advertising and marketing. Delivery costs differ slightly. When creating an online store, you can significantly optimize costs: do without renting / purchasing a room, decorating and preparing for work, exhibition equipment and samples, hiring sellers, airtime costs (in the case of TV trading), etc.

Lower requirements for reserves

As a rule, jewelry companies have a significant need for capital. E-commerce at the same time allows you to manage the minimum inventory volume, because on the site it is enough to publish the image and description of the goods without its physical sample. Thus, online companies do not freeze their capital in stocks and thus gain a great competitive advantage.

A deeper understanding of market needs

With the help of online tools, the jewelry business can get a holistic picture of the behavior of visitors on the website and better understand consumer preferences in a real environment. Daniel Zhang, CFO of Taobao.com, the largest online retailer in China, claims that the number of registered users already exceeds 100 million people and, according to this indicator, they can already compete with the American monster Ebay.

"We get information about the preferences and shopping habits of customers through the data that the statistical tools of the site provide us daily," - Mr. Zhang shares. Agree that 100 million people are able to provide more than a representative sample in various marketing studies. The business can receive prompt feedback on its sales to study the market reaction and introduce timely changes in marketing strategy and tactics, to adapt their products.

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