Ever wonder how the jewelry industry looks on the other side of the pond? No, our Scottsdale jewelry appraisal is not talking about the UK but instead a country across the bigger pond: China. If you have been keeping up with the news about China over the past few years, you are probably aware that the Chinese economy is growing and is actually the second largest behind the US.
With such a large population and an economy that continues to grow each day, China has become a market to watch for growing trends in various industries, including the jewelry business. Check out what our Scottsdale jewelry appraisal has to say on the topic.
INCREASED JEWELRY SALES
Some recent reports have shown that the jewelry industry is experiencing a vast expansion in China. One US-based jewelry business, Blue Nile, reported that they alone experienced a 37% increased growth in annual Chinese sales in 2014, which amounted to about $30 million in jewelry sales. Other businesses operating in China have reported similar sales increases.
One reason for this? There is an estimated 10 million weddings held annually in China, which means consumers purchase more jewelry for grooms, brides, and other members of the wedding party. Chinese couples have shown a growing desire for western-style engagement and wedding rings, especially with luxury branded jewelry. However, this doesn’t mean that every jewelry business can expect to experience such a sunny outlook.
INCREASED ONLINE SALES
Our Scottsdale jewelry appraisal found that a large segment of the increased sales in the Chinese jewelry business is actually based on e-commerce, or online sales. One consulting firm estimated that onlines sales across all Chinese industries will experience a 25% growth in the next year. Why? The same reason US consumers began purchasing their jewelry online in droves 15 years ago.
US consumers began making more online purchases for fine jewelry after experiencing dissatisfaction with traditional retailers. Blue Nile reported they got their own start in the US when they saw a growing number of consumers experiencing frustration when trying to purchase engagement rings and other luxury jewelry. Many felt intimidated by the traditional shopping experience of visiting jewelry stores and felt they were pressured into purchasing an item. This led to increased online sales where the consumer could take their time with selection.
This seems to be repeating in the Chinese jewelry market. Our Scottsdale jewelry appraisal read that approximately 63% of Chinese consumers felt dissatisfied with their shopping experiences in traditional retail shops. Another report showed that approximately 57% of consumers preferred online sales over traditional retail.
WHAT TO EXPECT
So what does this all mean for the jewelry industry? With China’s ever-growing economy, we can expect them to see an increase in jewelry sales, especially online, and this can set a trend for other growing economies. For example, India still shows a preference for shopping in traditional retail stores for jewelry but this could change in the next decade as the country continues accumulating more wealth and making infrastructure changes.
In the mean time, this Scottsdale jewelry appraisal is happy to continue checking out and pricing your online purchases.