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Research on Business Strategy in the Jewelry and Jade Trade

Author: XieZuoXiang
Tutor: WuRuiHua
School: Chinese Geology University (Beijing)
Course: Gemological
Keywords: jewelry and jade trade channel strategy supply chain strategy brandmanagement strategy
CLC: F721
Type: Master's thesis
Year: 2012
Downloads: 305
Quote: 0
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Abstract

In the30years since its reform and opening-up, China has seen significant surges in nationalproductivity and an abundant growth in material wealth. At the same time, substantial economicgrowth and rises in income levels have brought about fundamental changes in spending power,consumer concepts and consumer behavior. As a result, there have been rapid developments intrade and step-by-step perfection and improvement of trade laws and regulations. Tradeenterprises and their work fleets have undergone substantial expansions. There has beendiversity in the ways that trade and commerce is conducted. Generally speaking, the jewelry andjade trade in China has gone through three stages of changes: stagnation, recovery anddevelopment. Currently, China is the world’s largest consumer of platinum, gold, diamond, jade,sapphire and ruby, etc. According to statistics，there are more than4million people working inthe jewelry and jade trade, involving more than50,000enterprises among which scores of themare relatively well-known jewelry and jade brands. Looking forward, China’s jewelry and jadetrade will continue to grow, in the next few years, at an annual rate of more than15%. Chinawill become the world’s most competitive consumer of jewelry and jade and the world’s biggestjewelry and jade market.This article is based on trade theories and combines the unique characteristics ofjewelry and jade trade. It has HF Jewelry Company as an object of research. Thereis detailed discussion on the business strategies of HF，ajewelry brand name，andhow HF, as a new brand name in the market, had established its business channels andhow it had managed, controlled, coordinated and expanded such business channels bytaking into account the status quo of its market competitors and its own uniquecharacteristics; how its business terminals dealt with logistics and distribution,inventory management, purchasing management and the management of informationflow, logistics and capital flow; and how it dealt with its business and brandmanagement including: its establishment of a brand management committee,differentiation and clear positioning of its brand, the establishment of systems andmechanisms for brand image recognition, integrated marketing communications andbrand management, etc.In the short span of a decade, despite fierce competition in the market, HF hadestablished itself as a famous jewelry brand in Hong Kong, Macau and mainlandChina. For HF, there could have been room for summing up its experiences andshortcomings so as to further refine, deepen and optimize its business and tradestrategies. As for other business enterprises in the jewelry and jade trade, there is thepossibility of learning from HF’s experiences and lessons in the use of businessstrategies so as to improve operational efficiency and productivity and promoteoverall development of the industry.

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