Jewelry brand’s China market topline revenue growth potential
What We Did
After analyzing the company’s three distinct business models (offline self-operated, offline distributor, and self-operated online stores), benchmarks were established against competitors’ performances in each sales vertical channel with SmithStreet’s trademarked index. Interviews with regional managers from the brand and its competitors set strategies alignments across the premium and luxury jewelry sector. SmithStreet delivered a 3-year topline revenue growth model based on three key factors: optimal number of offline stores within target cities, online sales revenue targets, and strategic considerations. Strategic considerations included a brand re-positioning, and/or expanding product offerings to include premium and diluted jewelry lines.
Opportunities for premium and luxury jewelry brands are in offline stores in tier 3 and below cities due to the dearth of physical presence from aspirational brands in these regions. The offline store experience is still important in key growth regions as customers seek to touch, try on products and receive service befitting a brand’s premium or luxury category position.
As more brands look to expand to tier 3 and below cities, it is imperative that they sustain the brand’s (online) image by offering white glove service such as repairs, polishing, and knowledgeable sales staff. With more than 60% of China’s purchasing power in tier 3 and below cities, the brand’s positioning i.e. pricing, has to be aligned with services that meet customers’ expectations of a “premium” and “luxury” brand.
Competitive Due Dilligence
Discover how SmithStreet can help your business in China