JNA September/ October 2023

STRATEGY 企业策略 JNA September/October 2023 | 17 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 Livestreaming 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 fastpaced 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.

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