E-commerce is a new business model that has emerged in recent years, sweeping the entire jewelry market like a hurricane. The sales volume of e-commerce is rapidly dividing the cake of the jewelry market with a double-digit compound growth rate every year. And the sales volume of physical stores, especially those with smaller brands, has plummeted. Businesses of various gemstone wholesale centers have also been sluggish, and even wholesale merchants have resisted e-commerce. It is said that some jade wholesale markets in Myanmar prohibit live broadcasting. Live broadcast, WeChat, and online trading platforms use de-intermediaries as gimmicks, source direct sales as signboards, and low prices as sales tools. There are divergent opinions on the impact of the active online trading on the jewelry trading market.
I. Promote active trading market
Now Business is inseparable from the Internet, and the trading market is also inseparable. Online marketing and trading can help promote the prosperity of the trading market. Those who hold this view believe that online trading is to expand sales channels and increase the space and community for wholesalers to contact customers. As a result, many wholesale markets have entered live broadcast platforms. Jewelry and jade wholesale markets such as Jieyang, Pingzhou, Sihui, Shenzhen Shuibei, Shenzhen Songgang, etc., and some buildings are designed as live broadcast bases.
A corner of the Sihui jade market
In the live broadcast room of Songgang, you can see that the anchor is selling amber raw materials. Negotiate the processing subject with the customer, and be processed by the sculptor on the spot. Some platforms are dedicated to carving masters, who design sculptures on the spot. The network connects the world. Obviously, there are far more customers than physical wholesale centers, expanding the customer base, increasing sales, and spreading fame. The convenience on the line enables the factory to directly connect with the users, their needs can be directly and quickly fed back to the factory, and the factory can design products more targeted.
The original physical wholesale will continue as usual, as online diversion will undoubtedly increase sales channels, not only will not affect the original physical wholesale business, but will also help the market Active. The most obvious example is that in China, there is no or inactive market, which is obviously very cold. For example, Jieyang Yangmei, a traditional jade wholesale market, is relatively backward in live broadcast compared to Pingzhou and other places. Therefore, in recent years, the Yangmei market has been sluggish, and the neighbouring Qiaolin market is full of vitality and liveliness because of the live broadcast. vitality.
But why do some trading markets resist live broadcast?
Second, online transactions such as live broadcast are harmful to the healthy development of the wholesale market
At the beginning, jewelers did not find anything wrong with the live broadcast. If only some jewelers failed to get used to the new business model at first, after several years of practice, now more and more jewellers Found a problem. They believe that the live broadcast is the culprit of the sluggish trading market and closed the booming wholesalers. Since the live broadcast, many of the trading markets have left the crowd, the doors have been closed, and rents have plummeted. Some people believe that the”go to middlemen” battled by online exchanges such as live broadcast is the crux of the market decline. Intermediate wholesalers have an irreplaceable role in wholesale transactions.
The role of traditional intermediate wholesalers
The intermediate wholesaler is a merchant between the manufacturer and the retailer. It is a link in the circulation chain. It is an intermediate merchant who grafts the producer and the retailer. Taking jade as an example, a middleman may not buy jade raw materials, engage in processing and production, or do not directly retail. Instead, he buys in factories and wholesale markets, and then wholesales to retailers. In any market, which jade merchant’s products can bring him profits, he buys them there. The increase in the price of jadeware through intermediate wholesalers is what the jadeware company said”is the only thing that grows over the pond.” In other words, only after the middle jade merchant buys and sells it can raise the price of jade articles and reflect the value of jade articles. So, what role does the middleman play in the circulation chain of jade articles?
(1) Quality filter
Middlemen must be experts They make a living by their eyes. Very familiar with the quality of the goods, such as variety, color, craftsmanship, price, authenticity, etc., are familiar with the products of different wholesale jade merchants, grasp the market’s popularity, and understand the retail market. The intermediate wholesaler purchases goods in the market, which is essentially a professional evaluation and selection of the market goods. He only purchases goods with low quality and good prices, which are suitable for the market. On the other hand, he would not buy goods of low quality and high price, which are unsuitable for sale (in the jargon, there are no”selling” goods). Only by producing goods that middlemen are willing to purchase, can manufacturers have business and survive and develop. Where middlemen gather, it shows that the goods in this market have a competitive advantage. The goods are competitive, and the jade merchants play a leading role in the market. These goods are the objects that other merchants follow suit. Other jade merchants will make every effort to produce this style of goods. For example, Jieyang Yangmei has a good jade craftsmanship. After the middlemen buy goods from him, the sales are booming. Other manufacturers will also try to improve the level of jade carving crafts in order to bring business.”Jieyang Engineering” industry is famous. Experts’ professional vision promotes market competition, improves the quality of goods, reduces production costs, and forces manufacturers to design, process, and select materials.
(2) Pioneer of the retail market
Intermediate wholesaler In order to wholesale goods, he must open up the market like a wastelander. Marketing has spread the words that when people in Africa are seen barefoot, optimistic marketers think that it is a virgin land with uncultivated shoe market and has broad prospects. The same is true of Hetian jade market. There was no market in Guangdong before 2000. People do not know what Hetian jade jewelry is and do not consume Hetian jade. It was a large number of middlemen who promoted and promoted Hetian jade, distributed Hetian jade, improved the technology of Hetian jade, persuaded and supported some jewelry retail stores to sell this category. Because intermediate wholesalers introduced and improved the level of Hetian jade processing technology and increased the number of fancy varieties, Jieyang’s Qiaolin and Guangzhou Liwan Hualin area formed the Hetian jade wholesale market. Some jewelry stores in Guangdong added Hetian jade jewelry, which greatly prospered Hotan jade industry.
(3) Spreaders of jewelry culture
To To create a consumer market, we must first promote jewelry culture. The rise of the red sapphire market in recent years depends on the marketing of wholesalers. The red sapphire culture is originally a western culture, and the Chinese are not familiar with it, so traditionally China does not consume red sapphire. With the opening of China and the exchange of Chinese and Western cultures, gem culture has gradually infiltrated, and a gem market has emerged. Like the”pigeon blood red”,”royal blue” and”papalaccia” red sapphires that are currently selling in China, these varieties of gems have become popular brands and have nothing to do with the promotion of wholesalers. Due to the marketing promotion and cultural introduction of wholesalers, it has become a selling point for retailers, thus forming a consumption boom. The promotion of culture arouses the emotional resonance of consumers, and consumers purchase jewelry mainly based on emotional needs, and emotional needs promote the consumption of gemstones.
Hetian jade seeds, colorless ice seeds, jadeite, and other varieties in jadeite have become popular because of cultural marketing by wholesalers. Taking the “Shazaoqing” variety popular in the Hetian jade market in recent years as an example, one can perceive the cultural promotion of wholesalers.”Shazaoqing” is not a new variety, it is actually a low-grade sapphire, and it has never been seen by the market. Wholesalers named this type of sapphire from Hetian, Xinjiang. Shazao tree is a hardy and wind-resistant sandy tree species in the Gobi Beach in the Xinjiang desert. Its leaves are verdant and pleasant, and it is a beautiful landscape in the vast desert. This kind of tree is worshiped and loved by Xinjiang people. Linking sapphire to Xinjiang’s hero tree Shazao, it is reminiscent of sapphire being a jade species from Hetian, Xinjiang. Xinjiang people worship and love the date palm tree, which in turn worships and loves the Hetian jade, which is called”Dried date palm.” In addition to the name association, through superb craftsmanship performance and auction products to lead consumption, marketing and promotion of unique colors, please master jade carving masters to create works, various articles, pictures and other publicity and promotion, so that this variety can be popular in the market, Greatly increased the price of Hetian jade sapphire.
The reason why the wholesalers in the middle actively spend time, money, and wisdom on cultural promotion is because successful promotion can benefit from it. More important is the profitability of the entire industry chain. Once the consumer culture is formed, the wholesalers make huge profits, the processors are profitable, the raw material masters can sell high prices, the retailers have selling points … Because it is beneficial to the entire industry chain, all links are actively promoted.
(4) Repeat buyers with large purchases
Wholesalers are also called sellers. They have a large purchase volume, bulk purchases, and goods are sold all over the world. Many wholesalers have been engaged in this business all their lives. His purchases are repeated and repeated, which is completely different from consumers. Consumers usually only make a limited number of self-use purchases, and their purchases will saturate. Once saturated, consumption will stop, which is why e-commerce has to constantly find new customers. And if manufacturers sell to wholesalers, they are relatively fixed and there is no pressure to find new customers at all times. The customer is relatively stable, and the goods he processes are relatively stable, which helps him to improve the quality of such goods.
(5) Wholesalers promote communication
Wholesalers go north and south, information Well-informed, local consumption habits, retail market information, and other wholesale market information are brought to this market, thereby promoting the docking of manufacturers and retail markets and the exchange between different wholesale markets. The exchanges and collisions between experts promote the maturity of the market. Openness and communication for development are proven by history. Only with the exchange of wholesalers can the market be opened and circulated.
For thousands of years, because of the”potential energy” of profit, goods in the wholesale market have flowed to all corners. The specialized wholesale market is designed for wholesalers and provides goods and prices to wholesalers. Wholesale markets rely on intermediate wholesalers to circulate goods and promote the prosperity and development of wholesale markets.
The biggest problem with e-commerce transactions is the elimination of wholesalers (“go to middlemen”), which is a change in the business model for thousands of years. Without the wholesale channel sales, reducing expert communication, lack of expert quality selection, and expert cultural promotion … This is a negation of expert sales channels. It remains to be seen what the traditional professional wholesale market will do. The e-commerce platform lacks the above advantages. The biggest problem is that it must constantly seek new customers at all times, and the form of attracting customers is changing rapidly. E-commerce is just a trading platform, not a selection of goods quality. Its focus is on drainage, which is different from the role of wholesalers.
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