Jewelry retailers: Embrace digital development

Jewellery retailers should embrace digital development while promoting omniche-channel strategies and other technical solutions to sustain their business in the current challenging environment - this is the main takeaway from two webinar-based workshops exploring the Asian retail landscape, jointly organised by JNA Jewellery Asia and the JNA Awards.

Both events featured experienced industry experts and leading retailers as discussion guests.Speakers included Tanya Alissia, creative Director of Indonesia's Central Mega Group, Ms Lau Yoon-ki, General Manager of International Operation Department of Singapore's SK Jewellery Group, Ms Yong-yi Ma, CEO of Hong Kong's Risheng Diamond Group and Prida Tiasuwan, chairman of Pranda Group in Thailand.

The discussion focused on the retail strategies that companies must adopt as a result of restrictions related to the epidemic.A panel of participants agreed that the industry's top priority was to push forward the digitization process.In addition, a clear omni-channel strategy needs to be established.

According to Mr. Tiasuwan, customer experience comes first, and retailers must find ways to effectively interact and communicate with consumers, for example through social media, or other customer-related online and offline activities.He also suggested a cross-departmental effort to turn the store into a destination rather than just a point of sale.On the demand side, gold products continue to sell well because of their investment value.At the same time, customers are more willing to buy low-priced goods online.

Ms. Alissia emphasized the growing importance of meaningful jewelry in the face of the epidemic crisis.

"Restart and Recovery: Retail Markets in Asia" webinars on Oct 12, focusing on Jewelry buyers in Asia and how companies can reach out to key customers in the Asia-Pacific region.

The seminar brings together Amit Dhamani General Manager, Kashyansh Kapoor, Vice President and partner of Dhamani Jewels of the United Arab Emirates, Le Tri Thong, CEO of Vietnam's Phu Nhuan Jewelry Joint Stock Company (PNJ), and Liao Zhen Wai, Executive Director of Chow Tai Fk Jewelry Group LTD., Hong Kong.

Mr. Amit says retailers must readjust their business models to meet the challenges posed by the months-long blockade.The company is focusing on two key areas -- market trends and consumer preferences -- in the hope of reconnecting with buyers.

Dusoul, a fashion jewellery brand called Dhamani Jewels, was selling well online at the peak of the epidemic.Light luxury is favored by millennial shoppers, while buyers are less interested in big-ticket items.Dhamani is also actively exploring omni-channel strategies to interact closely with customers.

Kashi Jewellers' Mr Kapoor stresses the need to balance digital initiatives with retail jewellery characteristics - which are personal touch and personal expression.The company has also invested in an integrated retail space that includes areas for temporary conceptual partnerships with other industries such as fashion.

PNJ's Mr Le stresses that the industry should rethink its business strategy and focus on markets where there is still disposable income, and find innovative ways to connect with buyers.PNJ is also exploring online streaming platforms such as TikTok to attract young consumers.

Chow Tai Fook's Liao Zhenwei spoke of the group's broad omni-channel strategy, in which the outbreak played a key role.It includes D-One, an online platform for jewelry customization, which allows customers to choose diamonds and setting methods online to create their own jewelry.The Art2Charm turns a customer's painting or photo into an 18-karat gold pendant;And O2O channels, such as cloud counter and "cloud business 365" WeChat applet.

"As retailers, we need to think about how to stay agile and respond to market demands through an omni-channel, customer-centric experience."He said.

Both sessions were moderated by Aili Cheng, associate publisher and editor-in-chief of JNA Asian Jewelry.These webinars are part of the Jewellery & Gem Knowledge Community Education program.

• Jewelry retailers continue to see good sales in China

Jewelry retail window in Hong Kong

Major jewelry retailers in The Hong Kong region reported key operating figures for the three months ended September 30.During the period, the Chinese market continued to recover, while other major markets continued to suffer from the impact of coVID-19 related lockdown measures and the slowdown in tourism.

Chow Tai Fook's domestic sales rose 21.2 per cent year on year in the quarter, while same-store sales growth shifted from negative to positive to 11.2 per cent.In Hong Kong and Macau, the company said retail demand in Hong Kong and Macau was under pressure during the quarter due to challenging macroeconomic conditions and the continued closure of major border crossings, with sales falling 51.6% and same-store sales falling 52.5%.

In addition, CHOW Tai Fook's domestic e-commerce business and O2O related sales also recorded significant growth, up 30.2 per cent year on year.

Luk Fook said overall same-store sales fell 55 per cent during the quarter. However, as the retail atmosphere gradually recovered in Hong Kong, China, the overall same-store sales decline in the group's self-owned stores improved from about 60 per cent in July-August to about 40 per cent in September.

The group revealed that overall sales in China turned positive on an annual basis during the period, falling 14 per cent in the previous quarter to low digit growth, with diamond jewellery sales recording double-digit growth.Same-store sales fell 15 per cent for self-owned stores and 4 per cent for branded stores.About 96% of the group's stores in China are branded stores, Luofu said.Hong Kong and Macao lost 63%.