20 12 is an extraordinary year. There are too many influential events that have even changed the history of the next few years and decades. China's jewelry industry can't be unaffected in this big environment. Of course, the jewelry industry also has its own unique development law. This paper attempts to analyze the present situation, challenges and development prospects of jewelry industry, and briefly talk about our countermeasures.

1. Present situation and challenges of jewelry industry

China's jewelry industry developed late and started in the early 1980s. However, in the past decade, thanks to the rapid development of the national economy and the substantial increase in per capita disposable income, China's jewelry industry has shown a trend of rapid development. According to the statistics of China Jianbao Association, the total annual sales of 201kloc-0/China's jewelry industry reached 3,800 yuan, up more than 40% year-on-year, and the total jewelry consumption has ranked among the top in the world. In terms of sales, the per capita gold consumption in China in 20 10 was 0.33g, while the per capita gold consumption in Japanese, Korean and Taiwan Province province of China in the same period was 1g, 1.3g and 1.4g respectively. More than/kloc-0.00 billion yuan of jewelry consumption in China is wedding consumption. From the perspective of China's jewelry industry, it has the following characteristics: ① There are many processing enterprises and the industry concentration is low. By the end of 20 10, there were more than 50,000 jewelry enterprises in China, with more than 1.7 million industrial workers. There are many pure processing enterprises and enterprises with unknown brands, but few enterprises have complete R&D, design, production and sales industrial chains. ② Channel expansion has become the core of current competition. Judging from the gross profit of each link in the jewelry industry chain, the gross profit of retailers is much higher than that of wholesalers and manufacturers, so establishing a national marketing network has become the choice of many jewelry enterprises; ③ Shop sales are the main channel, and online sales are quietly rising. By 20 10, 99.5% of jewelry sales were completed by retail stores, and the remaining 0.5% was completed by retail channels without stores, of which 0.24% was completed by online retailers through the network; ④ The sales varieties are mainly rings, followed by pendants and earrings. According to the data of 20 10, ring sales accounted for 49.3% of jewelry sales, earrings accounted for 23.2%, necklaces and bracelets accounted for 19. 1% and 8.5% respectively. ⑤ Sales models are divided into self-operation, distribution and joining.

Entering 20 12, the jewelry industry is facing many challenges.

20 12 China jewelry yearbook

The future of the world economy is uncertain.

The world economy is still beset with difficulties and its recovery is weak. After entering 20 12, the European debt crisis has been spreading and there is no sign of improvement. The debt ceiling of the United States has reached a new level, and the unemployment rate remains high. The development speed of emerging developing countries has slowed down significantly. China's economy has experienced rapid recovery of 20 10 and 20 1 1, and this year's economic growth rate has slowed down, which has not yet bottomed out. In this case, the response policies of governments are contradictory. Europe is tightening its spending and reducing its deficit, while the United States continues to promote its economic stimulus policy, and recently launched the third round of quantitative easing policy. This contradiction makes the future of the world economy uncertain.

1.2 rising and violent fluctuation of raw material cost

The raw materials of jewelry enterprises are mainly gold, silver and various precious stones, which occupy a lot of money and are capital-intensive industries. In recent years, the prices of gold, silver and various precious stones have increased significantly. In order to operate normally, enterprises must maintain a certain amount of inventory and liquidity for turnover, which brings great financial pressure and operational risks to jewelry enterprises. Under the main trend of rising raw material prices, the prices of precious metals such as gold and silver also showed a roller coaster market in some periods. For example, gold dropped from 1.900 USD/oz last year to 1.400 USD/oz at the beginning of this year, and soared to nearly1.8000 USD/oz in September and October this year. The sharp fluctuation of gold price and gem price brings considerable risks to jewelry enterprises, especially processing enterprises.

1.3 operating costs continue to rise.

The continuous increase in operating costs is mainly manifested in the sharp increase in labor costs and housing rents. The increase in labor costs in recent years includes two aspects. First, the wages of employees have increased substantially. In recent years, the government has stepped up efforts to improve labor remuneration, the most obvious being a substantial increase in the minimum wage. Take Shenzhen where we live as an example. In 2006, the minimum wage was 8 10 yuan per month, and it rose to 8 1500 yuan per month in 20 12 years, with an increase of nearly 1 times in six years. The actual wage is also close to the growth rate of the minimum wage. On the other hand, the increase in labor costs is manifested in the increase in management costs. With the entry into force of "Labor Contract Law" in 2008, the cost of enterprise layoffs and staff management has increased significantly. As for the business premises, at present, most jewelry enterprises have no business premises with independent property rights. Driven by rising house prices, the rents of factories, dormitories and shops have increased year by year. Labor costs and rents are rising, but product prices are difficult to increase, which undoubtedly greatly reduces the profit space of enterprises.

1.4 brand building and famous brand have a long way to go.

Jewelry enterprises all understand the importance of brand building and brand effect to enterprises and products, but in the process of brand building, they are faced with many constraints such as industry environment and capital, and the road of brand building and brand naming is extremely bumpy.

2. Development opportunities of jewelry industry

Although the jewelry industry faces various challenges, opportunities and challenges coexist.

2. 1 China has a good economic development prospect.

China's economy is indeed facing many difficulties this year, but considering that China's urbanization process is far from complete, the advantages of manufacturing industry are still obvious, and the domestic consumer market still has great potential, China is likely to maintain a high economic growth in the next decade. China's good economic development prospect is the best external environment for the development of China's jewelry industry.

2.2 The domestic and international jewelry market has great room for expansion.

As mentioned earlier, the per capita consumption of jewelry in China is much lower than that in developed countries. In addition, China's jewelry consumption is concentrated in first-and second-tier cities. With the development of economy, the enhancement of residents' desire for jewelry consumption and the acceleration of urbanization, the consumption structure of residents will be upgraded, and the nature of jewelry as a luxury consumption will transition to mass consumption, which will promote the long-term double-digit growth of jewelry sales. Although the current inflation has seriously affected consumers' purchasing power and consumer confidence, gold, as a hard currency, will help them resist the decline in consumption caused by inflation. In addition, jewelry enterprises in China are now mainly oriented to the domestic market. With the steady improvement of design and quality of domestic enterprises and the gradual standardization of industry management, it is definitely not a dream for Chinese jewelry enterprises to enter the international market like other domestic industries.

2.3 There is huge room for improvement in design, technology and management.

Due to historical reasons such as short development time and short formation time, the jewelry industry is mostly family-run management mode, which leads to problems such as irregular management, imprecise management, low technical level and rough design in jewelry enterprises. In a word, most jewelry enterprises are still in the primary stage, which also shows that jewelry enterprises have great endogenous growth potential by strengthening management and improving production technology and design level.

3. Our countermeasures

In view of the difficulties and development opportunities faced by the jewelry industry, we have mainly taken the following countermeasures.

3. 1 Technological innovation brings new impetus.

Science and technology are the primary productive forces, and this sentence is equally effective for jewelry processing enterprises like us. We have been engaged in jewelry design and processing for more than ten years, and have accumulated a set of production technologies, especially in the inlay technology of jewelry, and have continuously integrated and improved the technology. For example, 20 1 1 The mosaic technology of Yuhua inlaid jewelry we developed has passed the examination and approval of the State Patent Office this year and obtained the patent for utility model (patent number: 20 1220072966.2). This mosaic technology can be widely used in the design of rings, pendants and other jewelry, forming colorful jewelry items or kits, and enriching the company's product categories. At the same time, because the jewelry designed by this inlay technology is more prominent, especially when inlaid with diamonds, it has a strong sense of integrity, easy to form a one-carat diamond effect, and the cost is moderate, which is favored by the market.

20 12 China jewelry yearbook

In addition to technological innovation, we also strive to find innovative ways to meet market demand in marketing creativity and other aspects.

3.2 Design changes bring new business opportunities

Jewelry industry is a fashion industry. Who can lead the trend, who can keep up with the trend, who can survive and develop, otherwise it can only be eliminated and abandoned by the market. We have been paying close attention to the market, and our products such as "Twelve Stars" have aroused great market repercussions. In recent years, we have strengthened the training of designers and industry exchanges, urged designers and producers to go deep into the market, strengthened communication and contact with customers, and designed a series of products that are well received by customers and consumers.

20 12 China jewelry yearbook

3.3 Brand building brings a new image

We attach great importance to brand building and take the lead in hiring celebrity spokespersons in the industry. Hu Jun, Sun and Sun were hired as image spokesmen of enterprises and products, which greatly improved the company's popularity and brand image.

3.4 Management upgrade brings new changes.

For production-oriented enterprises focusing on R&D and processing, the profit margin of products is limited, far less than the terminal link. Especially at present, it is facing unprecedented pressure of rising costs. In order to maintain a certain profit, besides design innovation, leading technology and abundant funds, scientific management is particularly important. In the past, our management was extensive and irregular. In recent years, we have established and improved various systems including employee management, administration, finance, procurement and so on. At the same time, strengthen internal management and corporate culture construction, improve the working environment, create a good working atmosphere, stimulate employees' positive and independent work initiative, and improve product quality and production efficiency. At the same time, establish a scientific and reasonable cost analysis and control system, from quota to standardization, carry out cost control before, during and after the event, infiltrate cost management into every link of operation and management, solve the problem of resource loss and waste caused by loose cost management and weak budget constraints, ease the pressure of rising costs, and improve the development force of sustainable operation of enterprises.

These are just some measures we have taken to deal with the current crisis. In short, opportunities and risks will always coexist, and opportunities and development will always be reserved for those who are prepared. As long as we actively respond, improve the ability to resist risks and nip in the bud, we can protect the wealth of enterprises to the greatest extent and realize the leap-forward development in the future.