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Disillusioned diamond myth: Shenzhen processing accounts for 80% of the world
18 points diamond ring 2999 yuan, 24 points diamond ring 3999 yuan, 30 points diamond ring 4999 yuan, 50 points diamond ring 9999 yuan ... National Day Jinan's largest jewelry brand SJONO Century edge jewelry in the market took the lead in a "national day to buy diamonds, the province The "first money" sales war, the diamond ring is almost facing the Jinan citizens at the price of "selling", causing earthquakes in the industry. Ultra-low-cost diamonds are the usual "deduction scams" or "quality traps" of the merchants? An inconspicuous diamond ring does not move tens of thousands or even tens of thousands of yuan. What is its true value? Can a thousand diamond ring guarantee product quality? To this end, the magazine interviewed Wang Lin, marketing director of Century Edge Jewelry. The myth of the ruined diamond: Shenzhen processing accounts for more than 80% of the world's unclear gimmicks In the myth about diamonds, "the world's top processing chain" is a very confusing and tempting sign. "South African diamonds", "Belgian top cuts" ... These frequently appearing words are nothing more than telling you: the diamonds you buy at a high price are not only a gem, but also the value of the world's top producing areas and crafts. However, these imaginary ideas about diamonds are just a gimmick that blinds consumers. For example, in Africa, except for South Africa, Botswana and the Congo are important diamond producing areas, and Russia and Australia also produce more diamonds than South Africa. “Belgian Cut†is a gimmick that is more widely spread. Under the turmoil of globalization, the costly European diamond cutting industry is also unable to protect itself, and industrial transfer is inevitable. Today, India with more than 1 million diamond cutters is the true center of the global diamond cutting industry, and Belgium, with only 8,000 cutting workers, can't even meet the 10% of China's second largest diamond consumer. In the processing of diamond rings, a city that we are very familiar with - Shenzhen, it accounts for more than 80% of the global diamond ring processing. For the real jewelers, no one knows the water. This place is only 0.5 square kilometers in Shenzhen. It has gathered more than 1,600 jewelry enterprises and has become the largest jewelry base in China. More than 70% of the country's jewelry is processed and wholesaled here. There are many jewelry trading centers and many street jewelry wholesale stores in Shuibei, Jinli, Jinzhan, Baolin and Bolin. Shenzhen Jinli Jewelry Trading Center on Belle South Road has many brands such as Jinfuyi Jewelry, Damascus Jewelry and Nanyang Hengxin. Each exhibition hall displays thousands of jewellery, and many exhibition halls have the brand "Welcome wholesale, decline retail". The owner of the Fujian accent told reporters that many jewelry brands in Jinan, Rizhao and Qingdao in Shandong have their customers. In the peak season of sales, they also do OEM work for several well-known brands in China. According to informed sources, most domestic diamond rings are processed in Shenzhen jewelry factories, including Hong Kong jewelry brands. The price of loose diamonds is “hidden rulesâ€: the markup rate is as high as 300%. “The same diamond ring, Jinan can cost 2 times.†Business people from Beijing and Shanghai often find it difficult to find the “catty†in the diamond counter: with laser coding. The 30-point diamond with the international GIA certificate is less than 6,000 yuan in cities such as Beijing and Shanghai, and more than 13,000 yuan in Jinan. Why are the diamond rings in the second and third tier cities so expensive? Industry insiders told reporters that at present, China's domestic diamond retail terminals mainly include four modes: comprehensive department stores, specialty stores, jewelry wholesale markets and networks. Among them, the comprehensive department store has an overwhelming monopoly position, and the annual sales account for 60%~70% of the total diamond sales in the country. Therefore, the comprehensive department store has mastered the pricing power of domestic terminal diamonds. However, since the store itself does not operate diamonds, all of its diamond products are purchased by jewelers in the middle of the chain. Therefore, the price of the diamonds purchased by consumers is actually “ex-factory price of diamonds (or diamond products)â€. The middleman profit and the “dealer deduction point†are composed of three parts. “This is a huge profit that few other industries can achieve. The price of diamonds is far from its true value.†Wang Lin, SJNO Century Jewelry Marketing Director, was shocked by the interview. Wang Lin told reporters that the current retail price of domestic diamonds in the terminal is usually 3 to 3.5 times the ex-factory price, and the price increase of international brands such as Tiffany and Cartier is more than 6 times. For example, a 0.3-carat diamond ring, if the price of a jewelry counter in a department store is 10,000 yuan, then its ex-factory price should be around 3,000 yuan. After buying the diamond ring, the middleman entered the store at the “cost price†of 7,000 yuan and finally sold it at 10,000 yuan. In this sale, the middlemen and the stores each received a profit of 4,000 yuan and 3,000 yuan, and consumers who thought they could "preserve" actually lost up to 70% of the value when he paid the money! Profiteering "spoiler": the price is the first spoiler to match the first-tier cities . Since there is no 30% deduction pressure from the general department store, the diamonds sold by the network channel can be greatly adjusted to the value of the price. In addition, the network channel also greatly saves the cost of store construction, brand promotion, etc., making it a great cost advantage. Brands such as Diamond Bird, Nine Diamonds and other brands have only 40% to 60% of the price of traditional channels. Let the diamonds be more intimate, so that more people can buy them, and they become Wang Lin and SJONO Century Jewelry. The goal. In recent years, the success of the European clothing brand ZARA has made Wang Lin a lot of inspiration. "The domestic diamond industry should also be like ZARA, the status is noble but the price is not expensive, so that more people can easily own." Wang Lin believes that the reason why the domestic diamond ring price is so high, on the one hand, the domestic diamond market is in great demand. Diamond consumption has become a rigid demand, and China has become the second largest diamond market after the United States. On the other hand, the information asymmetry of consumers, many people have no concept of diamond prices and costs. Unlike foreign countries, diamond prices are quite transparent. In Singapore, many consumers have a clear understanding of the quality level of diamonds. A diamond ring can only add a few hundred dollars in profits. "The diamond market is going to be profitable. It is an inevitable trend. In a more rational market, the true color of diamonds is given, and the right to return to consumers, we can usher in a healthier diamond industry." Wang Lin and SJONO Century The jewels are ready to continue to save the diamonds in the middle of the link, "Sword" Jinan.