this narration is wrong

Chapter 252

"Shu Qing, is the ATM you are talking about a brand that has become popular in the past two years?" Guo Yuan asked.

"What ATM! The boss is called APM!"

"Uh, APM, APM, mine, I made a slip of the tongue."

Cheng Shuqing resisted her desire to complain and said: "Boss, the Pandora you mentioned is no longer available. A while ago, Pandora quit its store in Sanlitun, the imperial capital.

Probably when I was still in college, Pandora was very popular in China. That should be its hottest time. For a while, its bracelets were very popular.

The Jimei people in our dormitory will put different beads on the bracelet, and it becomes a DIY bracelet.

It's just that Pandora's performance in the Chinese market has been quite mediocre in recent years. In 2021, he withdrew from the shops in the central part of the imperial capital.This time, it retreated from Sanlitun again, apparently unable to stand up in high-end shopping malls. "

"So Pandora is dead?" Guo Yuan asked in surprise.

Doesn't this match what he knows?Obviously it is so popular in the island country.

"No way! According to Pandora's 2022 financial report, most of them have achieved growth in the global market, but in the Chinese market, which they value most, revenue has plummeted by 47%, which is close to half.

Another older luxury jewelry brand, Swarovski, has not been doing well in recent years. Since reaching its peak in 2016, Swarovski's market in China has been shrinking, and now it can't even keep its basic market. "Cheng Shuqing thought for a while and said.

"That is to say, Pandora and Swarovski are no longer in China, and this APM is a new star?"

Cheng Shuqing scratched her head when she heard the words. She felt that what the boss said was wrong, but she didn't know how to refute it.

Guo Yuan smiled and asked, "Shu Qing, do you think what you are wearing is jewelry?"

"Of course it is, why is light luxury jewelry considered jewelry?" Cheng Shuqing replied without hesitation.

"I think you have fallen into a consumption trap and have been cut hard, because the term "luxury jewelry" is too misleading."

"Misleading? Boss, I don't quite understand what you said."

"Shu Qing, when you call the beads on your hands jewelry, does that mean you compare APM with traditional jewelry brands like Cartier, Bulgari, Laofengxiang, and Chow Tai Fook?"

Cheng Shuqing nodded subconsciously.

"So I said you are wrong, jewelry, jewelry, you have to be a treasure, right? That is to say, the raw material must be at least a rare thing.

But whether it is Pandora, Swarovski or the APM you carry, they are not made of precious originals, but are made of cheap raw materials as much as possible.

Take Swarovski as an example. As far as I know, this brand is bound to crystal. Even in China, Swarovski is synonymous with crystal.

Although crystals are not that expensive, they are considered jewelry anyway.

But as we all know, what Swarovski sells is not crystal in the real physical sense, but high-fiber glass.

The real strength of this company is that its cutting process can make high-fiber glass shine brighter than real crystal, even like diamond.

You know, in addition to the retail jewelry business under the Swarovski Group, there are two important businesses of firmware molds and optical instruments.

But no matter how powerful the technology is, glass is still glass, Swarovski always emphasizes in its own marketing that it is a man-made crystal company and does not let people think about glass.

Therefore, in the eyes of many people who don't know, Swarovski is equivalent to crystal.

Other brands are similar. Pandora uses a large amount of alloy 925 silver, zircon and enamel, and products using real diamonds account for a negligible proportion of revenue. "

"That's not to say that light luxury jewelry is not jewelry! Who said that only expensive raw materials are jewelry, and what they focus on is design." Cheng Shuqing argued.

"Design? Then why do they call themselves light luxury jewelry? Shu Qing, you have never thought that these light luxury brands have long been classified as jewelry, which has given them a lot of cognitive bonuses?

Let me give you an example. In our language habits, we usually like to combine the words gold and silver and call them precious metals.

Historically, silver has also existed as an important currency in circulation, so in the subconscious judgment of many people, silver should be the most expensive metal after gold.

But in fact, the price difference between gold and silver is dozens of times now, that is, one gram of gold is worth dozens of grams of silver, which is no longer the same level.

For silver jewelry, there is a huge cognitive bonus space, which is reflected at the industry level, that is, the gross profit of silver jewelry is much higher than that of gold jewelry. "

Hearing this, Cheng Shuqing understood that she also bought some gold jewelry.

The biggest feature of this category of gold jewelry is low gross profit. Because most of the gold used is pure gold, the price of jewelry is often linked to the price of gold instead of a fixed price, and the store will also display the gold price of the day.

Therefore, when most consumers buy gold jewelry, they often take the price of gold into consideration. If you sell it too expensive, consumers will compare the price of gold and find it is not worth it, so they will definitely not buy it.

This makes the gross profit margin of gold jewelry in the market quite impressive.

For the currently listed jewelry companies, the greater the proportion of gold business, the lower the factory gross profit. For example, the gross profit of Laofengxiang has risen to less than 10%.

As for Chow Tai Fook and Chow Tai Sang, because of the high proportion of jewelry with transparent raw materials, the gross profit rate is not high, probably more than 20% to more than 40%.

Why in recent years gold jewelry brands have been engaging in various designer styles with non-traditional concepts, just to squeeze out more profit margins and earn some design fees.

But silver is different. Cheng Shuqing remembers that when she bought silver bracelets and silver necklaces, most of them were bought at a fixed price, and they were not sold by gram at all.

This is a kind of opacity, and where there is opacity, there is profit margin.

"Boss, what is the gross profit of branded products such as Swarovski, Pandora and APM that use crystal or silver jewelry as the main raw material?" Cheng Shuqing asked.

"I don't know, you should ask 02."

Cheng Shuqing woke up 02 to ask this question.

The answer given by 02 is that the gross profit rate can basically reach 70%-80%.

Cheng Shuqing suddenly felt that the bracelet in her hand was no longer fragrant, and she had indeed been cut for leeks.

Cheng Shuqing understood from Guo Yuan's point of view that this kind of light luxury jewelry took advantage of the concept of jewelry, and used the concept of jewelry to bring a brand value close to that of luxury.

Then, with a price far lower than that of jewelry, it brought a large number of potential customers.

Then use rapid iteration and beautiful design to bring a steady stream of sales.

In the end, the low-priced raw materials brought them huge profits.

"Boss me."

"Just be careful not to be a leek in the future. You can help me contact the company's senior management and ask them to gather in the conference room on my floor in 15 minutes."

Cheng Shuqing put away her mood swings when she heard the words, and nodded yes.

(End of this chapter)