Diamond cost is only related to 4C
At the jewellery and jade exhibition, most of them are diamonds between 3,000 and 5,000 yuan. The boss told the reporter, "The diamond ring of 5,000 yuan here will not be able to be doubled in the shopping mall." Before a booth, a 30-point diamond ring is 4,500 yuan. "Don't look at me three or four thousand here. This thing is seen in Where to sell, if you enter the mall, you must sell at least 10,000 yuan."
The boss who has been in the jewellery business for more than 20 years said that many of the "Italian crafts" and "South African diamonds" that diamond merchants have played are concepts. In fact, the quality standard for diamonds is the 4C of diamonds, namely color, weight, clarity and cut. The true value of the diamond itself is only related to 4C. In addition, the price of diamonds is determined by the quotation formulated by the international diamond organization RAPAPORT, which forms the basis for the price of diamonds wholesaled by jewelers worldwide. Many consumers do not understand this.
Shopping malls up to 45%
The price of diamonds in the domestic market remains high and is closely related to the current diamond management and sales model. As a special luxury, diamonds are deeply rooted in the store business model.
"For example, consumers spend 10,000 yuan on the price of diamond ring to buy a certain brand of diamond ring in the mall. After selling the diamond ring, 17% must pay VAT, 25%-45% should be left to the store deduction point, 5% of the diamond consumption tax, 2% of the salesperson's commission. In addition, the brand's publicity, counter decoration, etc. will be distributed to the goods. The store chain deducts the price of at least half of the price. Therefore, if the brand is sold in the mall, if the price of the product is not raised At least double the height, the cost will not be recovered." The big brand promotion costs are higher, and the proportion of the products is even greater.
If the diamond ring is sold at a price less than 2 times in the mall, the cost will not be recovered. The industry believes that the diamond ring purchased by consumers is more of a brand premium. At present, diamond rings in shopping malls are higher than domestic brands, and Hong Kong brands are higher than mainland brands.
The deduction point of the shopping mall is the main reason for the diamond price increase. It is also recognized by the well-known diamond e-commerce: “The diamond brand is mostly located in the side hall and the middle island, which directly accounts for more than 60% of the costâ€.
Psychic jewellery has another interpretation of the difference between the cost of diamonds and the price of sales. “It is not necessary to discuss whether a brand is reasonable because of its brand charm. As an imported diamond, its consumption characteristics are more than other products. The brand experience, the implied cultural value and brand meaning naturally have a considerable proportion in the price manifestation."
"Pit price" comes from dual attributes
Like the high price of luxury goods, diamonds can't avoid the “soft cost†of publicity, public relations, image creation, event sponsorship, etc. in the process of creating a brand, which is the brand premium.
As a kind of mineral, diamond itself has certain scarcity, especially large-volume diamonds, which are very rare. At the same time, the processing of naked diamonds becomes a jewel, which requires relatively specialized processing, as well as the design and production of accessories such as setting and necklaces. These subsequent processing, production and marketing have formed a brand with a brand premium.
However, experts analyze that diamonds are not like the average luxury, brand premiums account for the vast majority of prices. Therefore, diamonds are the scarcity of raw materials, processing technology, brand premium, and finally the cultural needs of “love tokensâ€. These factors add up to the deep reason why diamond prices doubled in the circulation.
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