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As the Chinese market matures, we expect to see
growth across all three of these consumer journeys:
‘Love’, ‘Milestones’ and ‘Spoiling’.
The growing importance of ‘Milestones’ and
‘Spoiling’ makes it more likely that consumers will
acquire more than one ‘must-have, one-off’ piece
of diamond jewellery over their lifetime. It also
opens the door to more indulgent pieces and more
varied designs, moving beyond the solitaire-only
design that still makes up 80 per cent of diamond
pieces across all types of jewellery, including rings,
neckwear and earrings.
ENGAGING THE CONSUMER WILL BE
KEY TO GROWTH
The diamond jewellery selection process in China
involves a high level of engagement from the woman
who will be acquiring the piece, even when receiving
diamond jewellery as a gift.
The vast majority of recent acquirers or consumers
currently choosing a piece of diamond jewellery
consider branded offers as their first or second
choice. When it comes to actual acquisition, Chinese
consumers prefer to buy from trusted domestic
retailers such as Chow Tai Fook and Chow Sang Sang,
which surveyed consumers say they can trust.
Since 2008, however, claimed acquisition of diamond
jewellery from international brands Cartier and
Tiffany by young middle-class consumers has grown
eight to nine times.
The purchase process is consultative: both the man
and the woman need to be convinced, despite the
fact that 71 per cent of pieces are paid for by the
giver alone. In 2013, nearly half of pieces gifted were
chosen by the recipient of the gift together with the
actual purchaser.
As part of this process, customers undertake extensive
browsing in shops. The most common place is a
specialist jewellery retailer, with almost six in 10
acquirers, followed by jewellery counters/sections in
department stores, with more than a third of acquirers.
The purchase journey involves a range of touch-
points before a selection is made, including word-of-
mouth recommendations from friends and family.
The internet has its role to play too. Although not a
significant sales channel in China, the internet is used
by over a fifth of acquirers for related purposes, such
as to learn about fine jewellery quality and prices,
learn about brands, and to pre-select designs. The
internet is used more frequently in the diamond
purchase process by single women, 40 per cent of
whom resort to it, and also by affluent consumers
(about six in 10 research online).
J I LAYMAY ’ S JOURNEY
JI LAYMAY’S
PROFILE
26 years old
Living in
Shanghai
An employee
working in
finance
A wedding
diamond ring
bought from
Donghua
TESTIMONAL
Ms Ji planned to buy a
diamond ring because her
wedding was approaching.
She thought that a
diamond ring was a
necessity for her marriage.
Her friends recommended
she go to the Tiffany and
Cartier stores to have a
look. However, the prices
were too high for her.
Ms Ji decided to learn
more about diamonds on
the internet before
continuing her search.
That is the first time she
noticed the brand
Forevermark, although
she did not click the link.
Online, she learnt about
the 4Cs and browsed
various designs and cuts.
In 2012, almost half of
new brides, in Tier 1, 2
and 3 cities, acquired a
diamond engagement
ring, up from below
one per cent in 1994.
In China, brands enter into
the purchase decision very
early. 99% of women have
awareness of major local
and some international
brands, and on average
each customer is aware of
5.5 brands.
10% of women sought
advice from friends and
family when making
significant jewellery
purchases.
Over a fifth of Chinese women
use the internet for research
into diamond jewellery:
11% look to learn more
about quality and prices
6% educate themselves
on brands
5% are pre-selecting designs.
Among single women and
affluent consumers, internet
use for these purposes is even
higher at 40% and 56%.
CONTEXT
Source: De Beers