The Caibai Jewelry Headquarters, a gold jewelry brand in Beijing, has completed the largest renovation and upgrading in nearly 20 years after more than 7 months. Starting from consumer demand, the special area features "museum style appreciation, popularization of professional knowledge, experiential shopping, and personalized customization". Designers and customized jewelry independently welcome customers in the form of "special areas". Children's jewelry and men's jewelry also form a dedicated counter area, and the second and fourth floors add a large area of museum level raw stone and cross-border carving display space

In the view of Wang Chunli, the general manager of Caibai Company, the jewelry market is fiercely competitive and every step is like walking on thin ice. Nowadays, the concept of jewelry consumption among Chinese people has undergone a huge change, and young people even consider it as a fast-moving consumer product. Under the new trend, Caibai stores are gradually increasing their personalized, experiential, and omnichannel innovation presentation.

Store Upgrade Plus Experience

Despite the arduous 7 months of reducing from 8800 square meters to 800 square meters, the annual profit still maintains growth

In 2019, the jewelry market was filled with many variables. More and more international luxury jewelry brands are targeting China and penetrating the domestic market through rapid expansion and e-commerce. At the same time, domestic niche jewelry brands have also emerged one after another.

In this critical year, Caibai headquarters has implemented large-scale renovation and upgrading for the first time in nearly 20 years of operation, lasting for 7 months. For Caibai, in today's rapidly changing jewelry market and retail market, both store software and hardware need to undergo multidimensional "upgrades".

Introduction of Forevermark cooperative brand "store in store" after the renovation of Caibai

The Caibai headquarters has recently reopened, with actor Qin Lan appearing on December 21 as the Forevermark platform of Caibai's strategic partner De Beers. In the newly renovated storefront of Caibai, this new generation concept zone presents consumers with an immersive, fully interactive, and information-based design, presenting a new jewelry retail model that integrates product personalization, all-round interaction, and all channels of experience, making it the first in the country.

A reporter from Beijing Business Daily found that Caibai's main store has added multiple distinctive independent areas, including the ALLOVE "Ten Hearts and Ten Arrows Perfect Diamond" and the "South African Diamond PASD". In addition, a jewelry section for foreign designers has been added to the fourth floor of the mall.

After the renovation of Caibai, a separate counter area will be established for the "Ten Hearts and Ten Arrows Perfect Diamond" category of ALLOVE

According to sales personnel, the area mainly sells multiple designer works from countries such as New York and Italy. The material is mainly made of 18K gold, priced around one or two thousand yuan. It emphasizes delicacy and design, making it suitable for daily wear.

The ALLOVE "Ten Hearts and Ten Arrows" cutting process makes diamonds appear more brilliant and colorful

In fact, the attempts of the above special zones have been continuously introduced by Caibai in recent years, committed to bringing consumers richer and more fashionable new products

The industry view is that as the jewelry market gradually matures and consumer demand is diversified, especially the millennial generation, the main consumer force of the new generation, values the aesthetic expression of fashion, personalization, and youthfulness in jewelry. A single gold jewelry can no longer meet the current market demand.

Data shows that non gold jewelry is increasingly favored by consumers. The market share of diamonds, jade, and gold is gradually increasing. According to a report released by the World Gold Council titled "The Response of the Chinese Jewelry Market to Changes in Consumer Behavior," only 9% of young people aged 18-25 choose to purchase gold jewelry, with more choosing diamonds and fashionable luxury jewelry.

Channel layout, branch stores, online compensation for customer flow

E-commerce sales from 20 million to 500 million cannot be underestimated, becoming a traffic tool across regions

During the 7-month renovation period of Caibai main store, online channels and branches have become important roles. In 2020, the company will continue to promote expansion plans around the Beijing Tianjin Hebei region.

Wang Chunli told Beijing Business Daily reporters that since the upgrade and renovation launched in April, Caibai has reduced its original 8800 square meters of business area to 800 square meters of office area, and still insists on opening some areas to the outside world. "The company has set a goal of ensuring annual sales growth. From the scorching summer to the harsh winter, five or six positions guide consumers from the original door to the temporary sales area outdoors, rain or shine.

According to her, towards the end of the year, Caibai's sales performance continued to grow in 2019; E-commerce channels grew by 40%, achieving sales performance of over 500 million yuan. In addition, according to Caibai E-commerce Company, during the "Double 11" period last month, Caibai's online and offline sales performance was nearly 100 million yuan. Among them, it is worth noting that in the online platform, the proportion of traffic from foreign ports is 55%, breaking the regional restrictions of Beijing Jewelry.

In the process of renovation and renovation of the headquarters, the relationship between the headquarters and branches becomes increasingly important. It can even be said that the sales performance of over 30 branches of Caibai has to some extent compensated for the loss of customer flow that had to be faced during the renovation cycle of the main store.

In the future, we will accelerate the pace of chain operation and achieve integration between the headquarters and branches with larger scale and performance, "Wang Chunli revealed. In 2020, we will accelerate the pace of opening stores and expand outward with Beijing Tianjin Hebei as the core. However, considering the non-standard characteristics of jewelry and the control over quality, Caibai is not considering a franchise model for the time being.

After the renovation of Caibai, the original stone mining exhibition area will be arranged in multiple floor areas to promote jewelry culture

Profit Game Jewelry Fast Digestion

The Chinese people's jewelry consumption concept has undergone a huge transformation, and now jewelry is a fast-moving consumer goods

Fashion design is increasingly becoming the core competitiveness of jewelry brands. In the newly renovated Caibai store, a reporter from Beijing Business Daily found that the designer's product area is presented visually in a purple color scheme. At present, this counter has introduced an Italian designer's "Nature Ladybug" series jewelry kit, mainly made of 18K gold material. The unit price ranges from 1380 to 2000 yuan, suitable for daily wear.

In the past, people bought gold jewelry to preserve their value, reflect their economic strength and identity. Now, jewelry is showing a trend of rapid digestion and more of a carrier of emotional transmission. Wang Chunli believes that the consumption concept of jewelry among Chinese people has undergone a huge change, and people's demand for jewelry has become lighter and more daily.

The latest data from the Caibai jewelry e-commerce channel shows that the best-selling products on the brand's online platform in 2019 had a unit price of about 2000 yuan. This price range is closer to the "light luxury" range that young consumers are more likely to accept.

Corresponding to the rapid digestion of jewelry is the current situation of younger consumer groups. On the east side of the first floor of Caibai, the children's jewelry area decorated with fluorescent pink is particularly prominent. Around the counter, there are not only customers who choose enamel long life locks, but also many young people trying on various jewelry from Miffy Rabbit IP. In addition to Mifei Rabbit, the counter also displays many well-known IP cooperation products, including Peppa Pig, Nezha, Xiaohuang Ren, etc.

A children's jewelry zone is set up on the west side of the first floor of Caibai, and the Mifei Rabbit IP series has become a star product

This type of product has a low unit price and belongs to the category of "light accessories" that enhance the sense of design and fashion.

Lai Yang, a special expert at the Beishang Research Institute, believes that jewelry is becoming an extension of clothing consumption. People not only pursue the properties of raw materials, but also focus on design and fashion.