JWA 2021 Jewellery Industry Best Practices

84 | Jewellery World Awards 2021 Shenzhen Chaozun Jewelry Co Ltd CATEGORY: In response to the rapid rise of a community–based economy, which is characterised by higher-volume sales of lower-priced goods, Chaozun Jewelry Co Ltd developed affordable, lightweight gold jewellery products that would appeal to aspirational consumers. In doing so, the company did not only boost its profits, it also found new ways of showcasing the timeless beauty of Chinese arts and crafts. “The pandemic may have lowered the standards of shopping but demand for affordable luxury is still there. The question is, ‘How do we enter this newmarket arena and what kind of products will capture the aspirational consumer’s attention?” asks Weipeng Huang, CEO of Chaozun. Such questions were eventually answered with the successful launch of “micro grained hard gold” in 2020. MARGIN IMPROVEMENT Utilising its wealth of knowledge in gold manufacturing, the company developed micro grained hard gold to create lightweight, affordable jewellery products that are tailored to the demands – and budgets – of the post-90s and post-00s consumer. “Generally, plain gold is sold by the gram at around US$60 to US$90. Micro grained hard gold jewellery, on the other hand, is sold by piece. It derives its value from our meticulous design and innovative manufacturing processes. This allows us to set its price at US$90 to US$150 per gram, almost doubling the gross profit margin,” explains Huang, whose business manufactures, retails and wholesales gold jewellery in nine provinces in China. The jeweller’s client base includes wholesalers in Hebei, Shandong, Industry Innovation of the Year COUNTRY / REGION: CHINA 1 2