1 thought on “Industrial transformation and upgrading and the development of jewelry industry”

  1. Shiguang
    The industry transformation and upgrading and the development of jewelry industry have experienced great fluctuations in the Chinese economy since 2008. Under the impact of various unfavorable factors, the decline in economic growth in the future has become a consensus. The original economic growth momentum has gradually exhausted, the labor and land costs have increased significantly, corporate financing is difficult, foreign demand is weak, domestic demand is still yet to be improved, the system and system constraints are increasing. The traditional economic development method is difficult to sustain. From the perspective of international experience, after the economic development strategy is not adjusted in time after reaching the middle income level, it may be stagnant for a long time. If you can jump over the "medium income trap", the Chinese economy may gradually enter a stage of medium speed growth of about 7%, but this depends on whether we can successfully transform the economic development mode.
    1. Industrial transformation and upgrading has been imminent
    If industrial transformation and upgrading is an important aspect of transforming economic development methods. From low value -added to high value -added. Industrial transformation and upgrading is a long -term system engineering. Between departments, it shows that the proportion of the industry has gradually changed to the second and third industries; in the industry, it is manifested as high -end efficiency, technological progress, and high -end value chain. For China in the transition period, industrial transformation and upgrading depends not only on enterprises and industries, but also on whether the government can continue to deepen the reform of the system and further improve the socialist market economy system.
    The factor cost has increased rapidly, and the industry forces the industry to transform and upgrade. The recruitment is difficult to appear, the wages have risen, and the cost of social security has increased. Young people are unwilling to engage in simple repeated labor and improve the hidden cost of labor. The interest rate has not been fully liberalized, financial depression, a large amount of capital circulation, and private and small and medium -sized enterprises have difficulty financing. Energy and resources are increasingly scarce. Industrial and urban construction land in coastal areas is tight, land rent rises, and the geographical space of industrial development is very limited. Only by relying on the expansion of factors, it will eventually be subject to decreased scale compensation, and economic growth is difficult to continue.
    2012 Mid -National Jewelery and Jade Shouchu Yearbook
    The internal and external market environment is unfavorable, and business operations are difficult to intensify. Since China joined the WTO in 2001, globalization has become an important force to drive China's economic growth. However, at present, European and American countries are dragged down by the financial and debt crisis, the economic recovery is slow, and the external demand is not bad. my country's low -cost advantages are gradually losing, and the competitiveness of export departments has declined. When the company turns from the international market to the domestic market, it is facing the problem of incomplete market environment and high circulation costs, and it is difficult to develop domestic demand.
    A asset prices have risen rapidly, and the trend of economic bubbles has begun to appear. The lack of funds lacks effective investment channels, speculation Risheng, stocks, real estate, coal, agricultural products and other assets and commodity prices have risen, corporate operating income is often lower than speculative income, further stimulating the funds from the industry and exacerbating the asset bubble. At present, my country's financial system is still relatively fragile. It should be learned from the US subprime mortgage crisis to avoid re -acting in my country.
    The government dominates economic development and the financial risks have accumulated. Under the current assessment mechanism of officials, local government behavior is short -term, and local investment in investment competition projects, but often insufficient estimation of risks and low investment efficiency. Since the end of 2008, the government has declined with short -term economic declines. Under the new round of credit expansion, the systemic risks of the banking system have improved. The government's dependence on "land finance" is increasing, and the risk of local financing platforms has increased. With the decline in economic growth in the future and increasing fiscal income, government debt problems will become important hidden dangers, and the problem of high economic growth will gradually surface.
    The reform power is insufficient, and the system restraint needs to be cracked. Under the current urban and rural dual system, the household registration system has suppressed the free flow of labor, and the land system restricts the development of urban and industrial. Some key industries have been strictly controlled, with high entry thresholds, insufficient competition, and low efficiency. The income gap has expanded significantly, exacerbating social instability. The social interest pattern derived from economic development for more than 30 years is an important reason for the difficulty of reform.
    2. The characteristics and problems of the jewelry industry
    The background of changing the economic development mode has a huge impact on the development of my country's jewelry industry. In particular, the cost of factors, market environment and asset price issues are closely related to the jewelry industry. As an important medium for wealth storage, jewelry and precious metals, its market conditions largely reflect the short -term fluctuation characteristics and long -term development trends of the economy. From historical experience, jewelry and precious metals are risk aversion tools when economic recession, and investment methods when the economy is rising. The precious metals and many types of jewelry reserves are limited, and the scarcity will become increasingly obvious with the increase in economic development and income. This fundamental factors determine that the jewelry market has great potential. At present, my country has established the gold and diamond exchanges, jewelry and precious metal financial derivatives transactions have gradually become active, financial attributes are becoming increasingly enhanced, and market development has continued to increase. But overall, the development of my country's jewelry industry is still in its infancy, with four main characteristics.
    First, the industry is developing rapidly, and the future potential is huge. With the rapid growth of China's economy, China's jewelry sales exceeded $ 60 billion in 2011, ranking first in the world, accounting for nearly one -third of the world's share. In recent years, sales growth has been more than 15%. The export -oriented characteristics of the jewelry industry are significant. In 2011, exports were 27.5 billion US dollars. In the case of difficulties in the current overall export situation, the export growth rate still reached 123%. Although it is currently under the unfavorable economic situation and some jewelry companies have difficulty in operating, the development of the industry is far from mature. As a luxury product, with the further improvement of my country's residents' income level, jewelry demand will accelerate the growth trend in the future. In 2010, China's per capita gold consumption was only 0.26 grams, which is still large compared to countries with similar consumer culture. If the per capita gold consumption increases by 1 gram, it will bring a growth of 1,400 tons of gold jewelry consumption. Based on the current price, it is equivalent to about 500 billion yuan in output value.
    2012 Mid -National Jewelery and Jade Shouchu Yearbook
    The second, industrial agglomeration characteristics are significant, but the industry concentration is low. The jewelry industry has obvious agglomeration effects. Enterprises are mostly concentrated in rich resource -rich areas, processing and transaction distribution sites, which helps provide public services such as infrastructure, logistics and appraisal. At present, more than 20 jewelry characteristic industrial bases have been established nationwide and more than 100 processing trade centers, but there are problems that have been coacked and lack of characteristics to a certain extent. Essence The jewelry industry has a low concentration and the market environment is not complete. At present, nearly 20,000 jewelry retail companies in the country, more than 60,000 stores. Most companies are small in scale, the products of products are serious, and even vicious competition. The market share of the business is less than 20%, and the market needs to be integrated.
    third, most jewelry companies are still in the low -end value chain, and the brand building and innovation capabilities are weak. my country's jewelry enterprises are mainly processed and manufactured, mainly depending on labor input, lack of well -known brands with extensive social influence, weak design capabilities, and insufficient in -depth cultural connotation mining. The unique design and high -end brand image are the core competitiveness of the jewelry industry, but the high -end brands in the domestic market are mainly controlled by foreign capital, and the product premium is high. Middle brands are mainly traditional design, with simple styles, and gross profit margins are generally 10%to 30%. The low -end market lacks influential brands, mainly local small and medium -sized enterprises and hand workshops. With the improvement of labor costs, companies with low -end value chain will be gradually eliminated, and transformation and upgrading will be the only way.
    If, the industry coordination capabilities are gradually enhanced, and the integrity system needs to be improved. The information of the jewelry market is extremely asymmetric, and ordinary consumers lack professional knowledge and ability to identify. The incomplete integrity system will hinder the development of the entire industry. Only by establishing a sound prize and punishment mechanism and cultivating reputation effect can the development of the industry enter a virtuous circle. my country's jewelry industry associations and quality inspection agencies are currently developing in a good momentum, which has played a huge role in promoting quality guarantee, quality identification and exchanges and cooperation.
    3. The path of the transformation and upgrading of the jewelry industry
    The report of the 18th National Congress of the Communist Party of China clearly proposed a double income plan. In the next ten years, residents' income doubles, which means that the demand for jewelry will further increase. How should the jewelry industry meet new development opportunities? The transformation and upgrading of the jewelry industry requires the joint efforts of enterprises, industries and governments. Enterprises are the main body of transformation and upgrading. Industry associations provide guidance and services for enterprises, and the government has created a good environment for industry development. In the future, jewelry companies should pay attention to cultivate brands and enhance their innovation capabilities. By improving the process of process, improving product quality, increasing product types, they meet consumers' continuous picky and increasingly upgraded needs. Organs such as the Jewelry Industry Association should improve industry standards, conduct fair and transparent product identification and inspection, and maintain the reputation of the industry. The government should pay attention to cultivating a fair competitive environment, reducing improper intervention, encouraging survival of the fittest, and spawning a group of industry leaders.
    The first, the brand is the core competitiveness of jewelry companies. Information asymmetry is the key to affecting consumer jewelry selection. Brand is the way of interpretation of information asymmetry. First -class brands of jewelry can create demand, and consumers will even buy it at the expense. The jewelry of the second -rate brand contains credible promises -reliable quality, exquisite design, perfect service and good social reputation, which can meet reasonable market demand and generate higher added value. At present, the brand building of my country's jewelry companies is low. The advertising investment of leading companies and Chow Tai Fook is far lower than that of Tiffany and other international first -class brands. Frozen three feet is not a day cold, and brand building cannot be achieved overnight, and long -term tough efforts are required. Enterprises should constantly adjust the brand strategy according to the market environment and industry technology changes. The brand building is difficult to do. Good brands mean that companies are closed for consumers. Consumers choose good brands to make the right decision.
    The second, innovation is the fundamental driving force for the development of jewelry enterprises. The core culture of jewelry and jade jewelry is "beauty" and should be tapped in depth of cultural connotation. As a artwork, product design is the main carrier of jewelry innovation. The distinctive products can cultivate customer loyalty. For example, Swarovski Crystal is famous for its exquisite design. Although its material cost may be lower than rare mineral resources, the ingenious product design greatly increases product value. Production technology innovation is an important way to improve quality, and it is also the main way to respond to rising labor costs. Swarovski Crystal has continuously pursuing technological innovation, and has pioneered the cutting of artificial crystal machines, so that it can produce the highest quality, dazzling and highly accurate crystal products.
    Third, good channels are important guarantees for realizing value. Jewelry products directly face Volkswagen consumers, covering extensive marketing channels is the key to improving market share. Jewelry companies should choose appropriate sales channels according to their own strength and characteristics. Association is the main model of the current jewelry retail. It has sufficient use of existing circulation channels, low cost, and wide coverage, but its characteristics are not obvious and suitable for low -end brands. On the contrary, self -operating similar stores, good controllability and complete service, but the cost is relatively high, suitable for high -end brands. Compared with the American jewelry market, the sales coverage of domestic jewelry companies is still very different. At present, there are only more than 1,000 domestic brand sales outlets such as Chow Tai Fook, which is far lower than international brands such as Sterling Jewlers. In addition, e -commerce will profoundly change the channel construction of the jewelry market, which is worthy of special attention.
    Fourth, resource reserve is the foundation of the long -term development of jewelry companies. Jewelry is a resource -intensive industry, which is very dependent on raw materials such as jade and precious metals. China's economic growth is growing, accompanied by the rapid rise and sharp fluctuation of asset prices. If you use the "big advancement" business model such as the processing of the material, the key resources cannot be controlled, which will cause jewelry companies to be subject to people. Especially when the external environment is unfavorable, the ability to resist risks will be significantly reduced. With the development of the financial market, jewelry companies should also use the risk of hedging of financial derivatives such as futures and options to avoid risk of rising raw materials.

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