As a powerful e-commerce tool in China, livestreaming is a recognised business model and a nationwide phenomenon. With a great deal of consumers converging in livestreaming platforms, jewellers are increasingly leveraging this channel to promote growth and market expansion.
This article first appeared in the JNA September/October 2023 issue.
Thanks to a well-established Internet infrastructure, advanced logistical network and a massive online community, China has become the most ideal market for livestreaming.
According to the 51st Statistical Report on China’s Internet Development released by China Internet Network Information Center, the number of livestreaming viewers in the country reached 751 million as of December 2022, accounting for 70.3 per cent of all Internet users there. Of this, 515 million used livestreaming to purchase goods.
A survey by the Beijing Consumers Association, meanwhile, said 90 per cent of 4,112 respondents admitted to having browsed and/or purchased goods while watching livestreams. Jewellery and cultural items accounted for 16.25 per cent of products sold via
this channel.
It further revealed that livestreams are mostly hosted on traditional e-commerce platforms like Taobao while fast-growing short video platforms like Douyin present bright opportunities.
「In the past, people would visit brick-and-mortar stores to buy jewellery. Nowadays, they can easily find products through platforms like Douyin, which uses algorithms that sort user content,」 said Liu Chuandong, president of China-based jeweller Yun Shang Xu. 「The rise of Douyin led to further success for us and allowed us to reach more potential customers.」
Yun Shang Xu hosted two livestreams on June 3 and 4 at Jewellery Seasons China 2023. A total of 13 million views were recorded for both sessions while the number of viewers watching live peaked at 156,000. Earnings hit RMB280 million (approximately US$39.3 million) with around 1.2 million products sold, exceeding the company’s sales target. Another of Yun Shang Xu’s sessions, 「Douyin 520 Gift Season | True Love Live-streaming Room,」 on May 20, 2023, meanwhile, raked in RMB130 million (approximately US$18.2 million).
The new consumer
Changes in consumer preferences and behaviours in recent years likewise contributed to the success of livestreaming in China. Millennial and Gen Z buyers, in particular, greatly value interactive experiences, and livestreaming fits the bill as it allows viewers to exchange opinions with the audience and the host.
Riding on this development, Yun Shang Xu introduced an immersive experience in one of its livestreaming sessions where the host facilitated virtual shopping by visiting jewellery stores, showcasing selected items and allowing viewers to place orders real time.
Speaking at the 「Demand For Jewelry Consumption – A Change In Consumer Mentality Forum」 held on the sidelines of Jewellery Seasons China 2023 in Shenzhen, CHJ Jewellery Vice President Ping Pan cited changes in how consumers perceive jewellery.
Chinese consumers used to mainly buy jewellery to give as inheritance, to wear on special occasions like weddings or for investment purposes. Now, they also buy jewellery for everyday wear and self-satisfaction.
Liu told JNA that with the advent of the fast-fashion trend, consumers now gravitate towards more accessible, everyday jewellery pieces with good value. Livestreaming on Douyin caters to this fast-evolving market demand.
He said pearls and hetian jade were the most favoured jewellery items sold during the company’s livestreams alongside more affordable alternatives to rubies and emeralds. Female consumers often opt for simple but trendy designs, added Liu.
Candy Wong, assistant general manager of Grace Pearl (HK) Co Ltd, attested to the popularity of pearls online. The company’s brand, Edison Pearl, collaborated with livestream account Mifengjingxi in hosting a livestream on Taobao in June this year. The session recorded RMB38 million (approximately US$5.3 million) in gross merchandise value (GMV), with the Aurora rice pearl necklace and the Goddess of Moon pearl necklace raking in a total of RMB800,000 (approximately US$112,028).
Industry transformation
According to Liu, livestreaming supports the growth of the jewellery industry by driving retail sales and helping manufacturers and suppliers expand their business.
「We analyse consumer data through innovative technology to understand what buyers need. We then share these insights with producers so they can manufacture jewellery that meets customer expectations,」 Liu explained.
Furthermore, Yun Shang Xu is aiming to facilitate closer collaboration between manufacturers and material suppliers to develop better-quality products. It also strengthened its supply chain capability to offer swifter response and sufficient stock to cater to fast-paced transactions on livestreams.
Another enthusiast is Dragon’s Pearl Co Ltd. The company, which recently launched a finished jewellery line as a B2C strategy, uses livestreaming to bolster its online sales, according to Chairman Cai Wenjiang.
Specialising in saltwater pearls, Dragon’s Pearl has been supplying goods to domestic jewellery brands for over 20 years.
The new jewellery line is under its registered brand, Akoya® Jewelry. According to Cai, Dragon’s Pearl has successfully leveraged livestreaming to boost its digital business and connect with consumers. Cai said the winning formula is providing high-quality products and professional services supported by a stable supply chain.
「Livestreaming is a good marketing channel. We obtained big data about our consumers through livestreaming,」 noted Cai. 「It provided accurate information about consumers’ expectations on pricing, jewellery design and quality of pearls. We can better utilise company resources to deliver products that fit the needs of end-consumers.」
It is however not a walk in the park. Cai said there were times when only a few people would watch live, but the company 「kept evaluating and improving」 and offering high-quality products to gain consumer confidence. It took Dragon’s Pearl around seven to eight months to see marked improvements in audience participation and online sales.
CHJ Jewellery, for its part, said livestreaming became crucial during the pandemic. Almost 90 per cent of its 1,000 retail stores were closed due to Covid, so it implemented an online retail strategy called 「Yundian,」 which involves a smart store and livestreaming activities to engage its target audience.
CHJ Jewellery joined hands with Tencent Smart Retail to create numerous livestreaming sessions for its clients in the WeChat mini programme of Yundian. The platform was instrumental in expanding the company’s reach to more potential consumers and drive sales. It was a success for CHJ Jewellery. In one of its three-hour livestreaming sessions, the company earned nearly RMB70 million (approximately US$9.8 million)
in GMV.
「By consolidating our customer base and building our brand in the WeChat ecosystem, we were able to accelerate our digital transformation and grow our business during the pandemic,」 Liao Chuangbin, chairman of CHJ Jewellery said.
Jewellers around the globe are also training their sights on livestreaming as a highly effective e-commerce tool. Eldwin Wong, director of Hong Kong jewellery manufacturer and wholesaler Joint Wealth Ltd, said there is a growing number of clients who sell jewellery products through livestream, particularly from the Philippines, Korea, Japan and Thailand.