China's jewellery market is fast diversifying, with brands growing in popularity among consumers eschewing cookie-cutter purchases. Making inroads in this promising sector however comes with its share of challenges for smaller international brands. Vetiver eases the transition from wholesale to retail through a brand-incubator business for foreign jewellery brands aiming to tap Chinese consumers.

The distribution and retail enterprise is the brainchild of three young entrepreneurs with backgrounds in retail, marketing and the digital space – Gary Gong, formerly trade development manager at Platinum Guild International China; Helen Chen who once worked as marketing manager for Pepsi Food; and capital investor William Chen.

From their trade experience, Gary and Helen both believed that brands could meet Chinese consumers’ demand for fresh and innovative designs, boutique shopping experiences and jewellery pieces that suit their personality. They likewise knew that international jewellery companies often struggled to find suitable strategic partners that could help them navigate the business environment in China.

Nurturing brands

Seeing the gaps and opportunities in the market, the trio came up with the Vetiver Jewel Safari concept in end-November 2017 and launched the company exactly a year later. The business model entails sourcing unique and exclusive jewellery brands from around the world, introducing these to the mainland market and supporting their growth in China.

Departing from the traditional wholesale jewellery distribution model, Vetiver serves as a brand incubator for foreign companies that appoint it as their exclusive agent in China. Going beyond product sales, it communicates the brands’ narrative, culture and concept to consumers. In addition, the company helps its partners position themselves properly in the market with the right product offering, pricing, selling points and retail channels.

“Prospects for international branded jewellery are bright in China. Consumers on the mainland now gravitate towards distinctive jewellery pieces that reflect their personality and make a statement. Niche markets are promising, given the country’s huge population. Foreign brands should definitely consider investing in China. It is worth it,” shared Helen.

Proper connections

The Vetiver team focuses on the marketing essentials of people, product and place. First, it defines the target consumers and creates a dedicated team to serve the segment. It then sources for the right brands, imports the products, places these at various retail points, promotes the brands and supports their marketing and sales requirements through exhibitions, consumer events and market feedback, among others.

In 2019, the company set up a global supply chain system for its jewellery imports, working closely with international brands and manufacturers, the Shanghai Free Trade Zone and China’s National Gems & Jewelry Testing Centre (NGTC).

At present, Vetiver’s distribution network includes eight chains in mainland China, collaborative agreements with banks and crossover brands from the fashion and cosmetic sectors. It also has its own multi-brand physical boutique and online store.

In October 2021, the Vetiver boutique opened on Hengshan Road in Shanghai. The 800-square-metre retail space consists of four themed areas, namely silver jewellery, cameo jewellery, fashion jewellery and gemstone jewellery. The boutique carries partner brands’ signature collections and latest releases, either on consignment basis or outright purchase, complete with each brand’s signage, imagery and collaterals. Reviews with brands on sales performance and market feedback are conducted monthly.

Vetiver’s WeChat mini program is its online store, with nearly 50,000 users who can easily learn more about the brands on their mobiles. This emerging sales channel substantially reduces distribution and publicity costs. The company works closely too with jewellery associations, industry organisations and commercial bodies like the Italian Trade Agency (ITA).

Effective partnerships

Vetiver currently represents over 20 foreign jewellery brands from Italy, Germany, Switzerland, France and Japan. These include Mattioli, Misis, Bernd Wolf, Matthia’s & Claire, Leonori, Yana Nesper, Giorgio Visconti, Del Gatto, Russo Cammei, Cavaliere, Aline Bassani, Rauschmayer, Buelling, Fiore, Lucemiya and Attur Scholl.

According to the founders, most of their international jewellery partners are word-of-mouth recommendations that grow into concrete agreements after both parties agree on the vision, strategy and deliverables.

Due diligence is exercised in the selection process: Conducting factory visits, talking to craftsmen, discussing with business teams to understand the brand narrative and identify unique selling points to engage consumers.

“When selecting partners, product strength is a main consideration, but the alignment of our concepts and strategies is often much more important than the product itself. In the Vetiver Jewelry Safari world, every jewellery piece has an emotional touch; it is the result of the painstaking efforts and time of the brand owner, designer, craftsman as well as the Vetiver selection process. Every transaction has heart,” explained Gary.

To further promote its clients, the distributor has participated in four consecutive China International Import Expo (CIIE) editions.

Founders and CEOs of its various partner brands have attended the expo to personally present their concepts, showcase their products and conduct dialogues with potential business clients and consumers. These visits help the international brands gain deeper insights into consumer needs and explore market opportunities for strategic development.

Vetiver’s commercial partnerships evolve into true meetings of minds among committed entrepreneurs passionate about sharing their jewellery concepts with mainland consumers.

The founders fondly remember their first meeting with Etsuko Kusuhara, the second-generation owner of Japanese handmade jewellery brand Lucemiya. Kusuhara personally delivered the brand’s jewellery to the company on a cold winter’s day.

Meanwhile, adamant on participating in Vetiver’s showcase at CIIE 2020, Marco Russo of Italian cameo jewellery brand Russo Cammei willingly endured a 28-day quarantine along with the brand’s cameo master Ciro Esposito. “I know it is not easy to promote Italian cameo. Let us do this together,” Russo had said.

Brand pointers

Given its successful track record, Vetiver is often approached by international brands and manufacturers for assistance in their mainland ambitions. When asked how to successfully tap the China market, the company’s founders suggest finding reliable partners, ensuring compliance to local laws and proceeding at an appropriate pace that would lower trial-and-error costs.

In just four years, Vetiver has made substantial strides in raising awareness of international branded jewellery among Chinese consumers while facilitating the commercial aspirations of international brands on the mainland. But it is not done yet.

According to Helen, the jewel safaris to find more memorable and relevant jewellery brands in its four key product categories will continue. And aside from promoting the product lines and new collections of its partner brands, the company also aims to expand its offerings to jewellery-related products such as jewellery boxes, bags and cabinets.