Taiyuan, formerly known as Jinyang, has a history of more than 2,500 years, and its business context is not only deeply rooted in the soil of history, but also reborn in the tide of the new era.
In Taiyuan, the historic commercial blocks such as Liuxiang and Zhonglou Street, as witnesses of the prosperity of the ancient city, have gone through vicissitudes of life, but still maintain their vigorous vitality. These neighbourhoods have not only retained their traditional architectural features, but have also been upgraded to introduce a wide range of commercial formats, from time-honored shops to trendy brands, attracting locals and tourists alike. At the same time, Taiyuan's modern business districts have also sprung up, such as the MixC and Wuyue Plaza, which have become new commercial landmarks in the city with their advanced facilities, rich brand choices and convenient shopping experience. These business districts not only meet the high-quality consumption needs of citizens, but also become a new business card of urban culture with their unique architectural style and cultural atmosphere.
Shanxi Taiyuan Wuyue Square Gold Jewelry Street
Among them, whether it is a specialty store located in a bustling business district or a boutique hidden in the old streets and alleys, high-end consumer goods such as gold jewelry have won the favor of consumers with their unique design and excellent quality.
Hongyi jewelry traditional handmade filigree pendant
01
Product innovation has become the key to a breakthrough in transformation
In the current Taiyuan gold jewelry market, the method of pricing by the gram has firmly occupied the dominant position in the market with its intuitiveness and tradition, accounting for as much as ninety percent, becoming the first choice of consumers. However, with the diversified development of the market and the change of consumer preferences, although the piece-based pricing model faces a certain amount of consumer resistance, its products are small and delicate, and the unit price is low, which still attracts the attention of many consumers. These two pricing models have formed a long-term coexistence and competition in the Taiyuan market, and local companies have flexibly adjusted their sales strategies according to market feedback to meet the needs of different consumers.
It is worth noting that the sales model of the gram has not only promoted market competition, but also brought about a general decline in profit margins in the industry. As a microcosm of the Taiyuan market, the profit margin of its gold and jewelry industry has continued to decline in recent years, with an average gross profit margin of only 10%, reflecting the fierce competition in the market and the urgency of industry transformation.
In the face of changes and challenges in the market, Taiyuan's gold and jewelry companies said in an interview that the entire industry is undergoing a profound reshuffle. Taking the May Day holiday in 2024 as an example, the sharp decline in sales in many places in Shanxi has become a microcosm of the current situation of the industry, and it is not easy for enterprises to maintain a low decline in adversity. This situation has prompted the industry to realize that only continuous innovation and change can survive in the fierce market competition.
Shanxi Taiyuan old Fengxiang silver building
In this context, product innovation has become the key to the breakthrough of enterprises. Enterprises have said that in the future, they will increase investment in product design and process improvement, attract consumers' attention with more competitive products, and enhance brand influence and market share. At the same time, more attention is paid to market research and consumer demand analysis, and more accurate strategies are used to respond to market changes and achieve sustainable development.
02
The consumer group tends to stabilize and the market is quietly stratified
At present, with its profound craftsmanship and cultural value, Gufa Gold is still firmly in the top spot in the Taiyuan market. However, the market is not static, and with the diversification of consumers' aesthetic preferences, hard pure gold products made with new processes are gradually gaining market recognition. At the same time, in the face of the market environment of high gold prices, inlaid jewelry has ushered in an opportunity for recovery due to its relatively affordable price advantage. A company in Taiyuan shared this trend with reporters, believing that jewelers can adjust their product strategies in a timely manner and help consumers achieve their wearing needs in a more economical way through reasonable guidance, so as to stand out in the highly competitive market.
The reporter visited and found that Taiyuan's traditional jewelry consumer groups are gradually stabilizing, and consumer preferences are quietly turning to personalization, customization and the integration of cultural connotation. At the same time, emerging consumer groups, especially young people, show completely different consumption concepts. They no longer over-pursue the added value of the brand, but instead focus on the novelty of the product design, the sophistication of the craftsmanship, and the quality of the product itself.
The consumer base is gradually divided into different levels, each with different needs and preferences for jewelry brands. Brands need to be clear about their positioning and focus on serving a specific type of customer, rather than trying to reach all consumers. The competition between brands is no longer a simple price war or product duplication, but requires a unique brand concept, continuous design innovation and intimate service experience to attract and retain consumers.
03
The lagged market reaction wins room for adjustment
In the special period of economic adjustment, people's livelihood issues have become the primary concern of the people, especially in the grassroots market, where consumer behavior has tended to be cost-effective, and brand loyalty is relatively low. As a result, consumption in the gold and jewellery sector has been suppressed, resulting in chain brand franchisees in lower-tier markets generally feeling operational challenges, and some stores are at risk of closure due to poor management or lack of market adaptability, especially newly opened stores with shallow market foundations.
Shanxi Hongyi Jewelry Building held a Lantern Festival garden party to strengthen customer stickiness
However, the situation in Taiyuan shows a different kind of resilience. This city with a long history and rich cultural heritage has a relatively stable and traditional economic structure and development model. To a certain extent, this stability has also led to the relatively slow response of the market to new changes and trends. The lag of the market provides enterprises with more room for adjustment and transformation opportunities, coupled with the city's relatively standardized management of the branded jewelry franchise market, Taiyuan's gold jewelry stores, although they are also facing the pressure of consumption reduction, but most of them strive to maintain the stable operation of the store through strategies such as optimizing inventory management, improving service quality, and strengthening customer relationship maintenance.
More importantly, Taiyuan's gold jewelry brand stores generally pay attention to the shaping and maintenance of brand image, strengthen interaction and communication with consumers by participating in social welfare and holding customer activities with traditional cultural characteristics, etc., and enhance the brand's recognition and reputation in the local market. This long-term accumulation of brand equity has become an important barrier for gold jewelry brands to resist risks during the economic adjustment period.
The future of the gold jewellery industry is full of change and infinite possibilities, and gold jewellery brands need to maintain keen market insight and innovation capabilities, adjust strategies in a timely manner, and strengthen brand influence in order to stand tall and lead the trend in the wave of market consolidation and rebranding.