Sales Of Diamonds Picking Up Online In China

World’s largest diamond supplier De Beers attribute the growth of online diamond sales in China to retailers’ skill in blending physical and virtual experiences to build trust and interest in diamond online sales.

Though the Chinese had been buying everything from cars to ice cream to mobile phones online, they always stopped buying diamonds.

However, that buying behavior is beginning to change with sales picking up “significantly” according to De Beers.

In 2017, only 1 percent of diamond sales in China came from online.

The Diamond Producers Association (DPA), of which De Beers is a member, promotes diamonds as the symbol of authenticity because not only are they rare but they are also billion-year-old treasures.

Upon launch of the DPA in China in July 2018, 87 million people, particularly millennials, were successfully targeted in social media, TV program sponsorships and pop-up cafes.

However, in its eighth sale for this year, De Beers sold $295 million, less than 39% from 2018.

The mining company De Beers had tried to counter this low growth by giving buyers more room to recover but now, with Chinese online sales of the bling, it will somehow be easier for the company to catch up.

Though De Beers didn’t say how much sales figures increased, its trade communications manager David Petrie said “more recent findings from 2019” are showing that online sales had grown.

This is a major development for jewelers in China because this new venue for diamonds’ revenue stream will cut down on costs associated with traditional brick and mortar businesses.

Likewise, many people in China live in rural areas and are a good market for online diamonds.

Chow Tai Fook Jewellery Group, one of the largest diamond jewelry retailers in China, started online sales in 2011 and is among the diamond sellers in China building up consumer confidence in online buying.

Chow Tai Fook Jewellery Group spokeswoman, who declined to give a breakdown of the jeweler’s online sales, said they consider their omnichannel retailing initiatives more than an e-commerce sales platform.

The firm views its omnichannel also as an important marketing move for their brand that also serves as a customer relationship venue for the company to engage, reach and retain customers, especially the millennials.

Selling diamonds in an omnichannel is where diamond sellers blend physical and online experiences so a person seeing diamonds online or visiting a store feels comfortable with diamonds getting offered because the diamonds they see online can be seen in the store as well.

US luxury icon Tiffany said that since 2011, when it officially started Chow Tai Fook eShop, the US company has been developing its e-commerce business in China.

Courtesy: BusinessTimes