By Chloé Reuter, Founding Partner, Gusto Collective
[Shanghai] The history of High Jewelry in China is a tale that spans millennia, reflecting both the nation’s rich cultural heritage and its evolving socioeconomic landscape. Historically, China has a deep-rooted tradition of adorning oneself with exquisite gemstones and precious metals. However, the modern landscape of High Jewelry in China has witnessed a remarkable transformation.
With the country’s rapid economic growth over the past few decades, a burgeoning middle- and upper-class has emerged, with an appetite for luxury and high accessories. This surge in demand has attracted global jewelry houses like Cartier, Bulgari, and Tiffany & Co., who have ventured into the Chinese market, vying for the attention of discerning Chinese consumers. In this fiercely competitive arena, brands are not only crafting culturally relevant designs, but also leveraging advanced marketing strategies and innovative retail experiences to capture the hearts and wallets of China’s sophisticated clientele.
In such a competitive market, here are four things brands must think about:
The key questions to ask are: Why should consumers care about your brand? What does it mean to them? High jewelry brands aiming to win in China must first understand the unique preferences of Chinese consumers. However, the most important factor is the need to create local relevancy.
With such a crowded market, how can brands be memorable? Brand ambassadors can be hugely valuable, but brands should also dig deeper. A great example is the recent “Cartier and Women” exhibition at the Hong Kong Palace Museum bringing 300 pieces together. The curation highlighted how Chinese art inspired the jeweler, from a stylistic and decorative perspective, as well as using Chinese techniques. Not only does this achieve compelling storytelling, but it also nods to the importance of China in the brand’s heritage.
The potential of Tier 2 and 3 cities is enormous. These markets have not been saturated (yet) like Tier 1 cities. The appetite for luxury is evidenced by a recent livestreaming on Tmall’s Luxury Pavilion where a top Swiss watch brand sold 20 pieces to customers in Tier 2 and 3 cities. The fact that only few High Jewelry brands are physically present in those cities creates an exciting opportunity to leverage the potential of ecommerce in those markets. Many top High Jewelry brands are investing in exhibitions and events beyond Shanghai and Beijing. Brands must look at how to build communities in those markets.
China’s young luxury consumers have embraced technology with open arms. As such, High-end jewelry brands are increasingly utilizing technology to enhance the customer experience. For instance, Van Cleef & Arpels uses Augmented Reality (AR) in their stores, allowing customers to virtually try on jewelry pieces. Not only does this innovative approach attracts tech-savvy customers, but also makes it easier to conduct transactions. Last month, MonoC, the world’s first metahuman artist created by Gusto Collective, releases a digital rendition inspired by the new jewelry line Tiffany Lock collection by Tiffany & Co.
China’s unique digital ecosystem presents an array of touchpoints with consumers. This is fantastic of course, but can be costly and complex too. Ensure that your customer journey is smooth, and that campaigns can also deliver special privileges and experiences to build consumer loyalty and your community.
China remains the biggest opportunity for High Jewelry brands. By understanding local tastes, expanding strategically, embracing technology, collaborating wisely, and utilizing digital marketing, High Jewelry brands can indeed win in China’s dynamic and evolving luxury market. At the same time, Chinese luxury consumers are becoming some of the most discerning in the world. Brands need a refreshed and in-depth understanding of what motivates and engages Chinese consumers.
Please contact us at hello@thisisgusto.com to find out more about how we can help with brand building in China.
