In fact, whether it is low-end jewelry or high-end jewelry, their costs are not very different, because their production costs are almost the same, so the profit margin of high-end jewelry is much more generous for Liren Jewelry.
I originally thought that the booming sales in various stores on the first day was a coincidence. After all, their jewelry prices are indeed much cheaper than others, and they also offer discounts on this basis.
This ignited the consumption enthusiasm of ordinary people who had just become slightly wealthy. Although the jewelry they purchased were mainly low-end, the turnover was still very impressive due to the large number of people.
However, at the end of the second day, the turnover was basically the same as the first day. Although the number of purchases decreased, the number of terminal jewelry sold was relatively large.
This situation lasted for a week. It was not until the end of the beauty jewelry opening discount event that the number of people decreased slightly, but the decrease was not particularly obvious.
You must know that Zhao Yi's gemstone raw materials are all artificially manufactured. Although the technology is difficult and the equipment investment is large, the price is still much lower than the gemstone raw materials in nature.
Therefore, even if it sells jewelry at half the price of normal jewelry, the profit margin of Liren Jewelry Company is still quite high. After seven days, it basically maintained sales of about 500 million yuan every day, which allowed Zhao Yi to see the spending power of consumers across the country.
After such a lively grand opening, the entire Liren Jewelry Company was instantly full of confidence. They have already begun planning to open branches in Hong Kong, Macao and other countries around the world to expand the business of Liren Jewelry Company to the world.
Zhao Yi had no objection to this. Although it is not as convenient to do things abroad as at home, with the Shangtong Trading Company taking care of it, there should be no major problems.
Compared with China, many foreign countries have stronger spending power. In addition, their price advantages have a very large consumer base, and we are very much looking forward to their business expectations.
Beauty jewelry suddenly bloomed all over the country, which naturally attracted the attention of jewelry giants, especially some jewelry companies from Hong Kong, who were particularly sensitive to this.
Jewelry stores opened by individuals in China are basically not chain stores. Even if they notice the prosperity of Beauty Jewelry, they only think of this store and do not know that Beauty Jewelry is blooming all over the country.
Although the jewelry companies from Hong Kong do not have chain stores across the country, they have still opened many gold jewelry chain stores in coastal areas, so they can see it more clearly.
Opening a jewelry store is just like opening a clothing store. The stores will be relatively concentrated. There is a popular clothing street in China, which gathers a large number of brand clothing of various types to meet the convenience of consumers to purchase in a centralized manner.
The same goes for jewelry, which is basically concentrated together, so they are still very concerned about the sudden appearance of a competitor.
If it's the same as theirs, it doesn't matter if the business is tepid. At most, it just has one more peer, and it hasn't risen to the level of a competitor.
However, Liren Jewelry's performance is really strong. During the opening period of the week, the store is packed with people almost every day. Although we don't know their specific turnover, we can still see the number of consumers who make purchases through a little observation.
Everyone is in the industry, so as long as they make some estimates, they are basically close to the truth, and they can still come up with data that is relatively close to the facts, but they don't know how many stores Liren Jewelry has across the country.
In fact, these are nothing. According to common sense, even if it is full every day these days, it will not last forever. After the promotion ends, it will naturally return to calm.
What makes them extremely anxious is that the price of jewelry in Liren Jewelry Store is really too cheap, so cheap that if they sell it at such a price, they will make small profits but quick turnover.
At present, the profit margin of the domestic jewelry industry is still very high, but even if it is higher, the price is suddenly reduced by half, which still makes many jewelry stores uncomfortable.
It turns out that the price is high, resulting in a small number of people buying. If the profit margin is not higher, it will be difficult to survive. This is the same as the antique industry, which is a bit like "if you don't open for three years, you will survive for three years after opening." .
Beauty Jewelry told them that as long as the price is low enough, the number of buyers will expand rapidly, which can be seen from the fact that it is full every day in the past few days.
In fact, Liren Jewelry Company can also lower the price of jewelry even lower, but if it does this, it is estimated that none of the jewelry companies in the country will be able to survive.
Although Zhao Yi wants to lower the price of jewelry so that ordinary people can afford it, there is no need to kill his colleagues, as long as the goal is achieved.
But other jewelers who have experienced huge profits don't see it that way. Such a large price reduction is cutting their flesh and making it difficult for them to make a decision.
Compared with individual jewelry stores, they want to take a look at the situation to make a decision. They are not sure whether Beauty Jewelry’s items will always be so cheap. Most people think that prices will still increase in the future.
But jewelry tycoons are different. Not only do they have a wide range of information, but they also have close relationships with major raw material suppliers. Before making a decision, you definitely need to find out.
Generally speaking, the suppliers of jewelry raw materials are relatively fixed. With many years of relationships, it is relatively easy to get clear information, such as the purchase price of raw materials for beauty jewelry and which factory processes it.
Through this information, they can find out the specific cost of Beauty Jewelry. Once the cost is determined, they can make countermeasures. If Beauty Jewelry is operating at a loss, then they can just wait.
Because no company can continue to operate at a loss, although Beauty Jewelry has been very popular this time, they really don't take it to heart.
Another thing that worries jewelry tycoons is who is the person behind Beauty Jewelry. As long as you see the stores across the country, you will know that they are not ordinary people.
Because Liren Jewelry not only has many stores, but they are also basically located in core areas. The business area is very large, the variety of jewelry is very complete, and the quantity is also very large, as if there is an unlimited supply.
You know, Liren Jewelry has more than 4,000 stores. No matter how big a jeweler is, it cannot still supply sufficient quantities under such a hot sales situation.
After inquiries from all parties and even exchanges of information with jewelers who were acquaintances, there was basically no news. It felt like Liren Jewelry Company had been conjured out of thin air and had no connection with any raw material suppliers they were familiar with.
This made them very blind, which meant that the Beauty Jewelry Company was a routine that they were not familiar with, and it would be very troublesome to deal with it. Only by knowing yourself and the enemy can you win every battle.
Without knowing their opponent well, they didn't dare to accept the move easily. Even though their family had a great business, compared with the generosity of Beauty Jewelry, it pales into insignificance.
They all started from a small store and developed slowly after decades of hard work, which led them to be very cautious in making every business decision. Those who are not cautious will be swept into the dust of history. .
Of course, they didn't get nothing. At least they found out about the management of Beauty Jewelry through relevant channels, but the names on the management list were also very unfamiliar to them.
Except for the fact that the CEO's name was Zhao Yi, which seemed familiar to them, they didn't recognize anyone else. The name Zhao Yi was only a little familiar to them because he had been fired a while ago.
However, the Zhao Yi mentioned by the media is a great scientist, an academician of the two academies, and has nothing to do with businessmen, so they did not dare to connect the president of Liren Jewelry Company with the great scientist Zhao Yi.
It would be impossible to come to Wu directly without knowing the details of the other party, so they thought of sending a letter. In other words, they asked the management of Liren Jewelry Company to come over for negotiation in the name of corporate alliance.
In any case, they have always believed that Beauty Jewelry cannot be smashed like this anymore, otherwise everyone's interests will be damaged. They called people from the Beauty Jewelry Company over and used their numerical advantage to force the other party to increase prices.
If you are alone and weak, this trick is indeed very effective, because anyone with a normal mind will know that the road will be narrow if you offend all your peers, not to mention if they break the rules first.
However, the invitation letter was sent to Liren Jewelry Company, but they ignored them at all. They just refused because they were busy and couldn't get away from it, and then nothing happened again.
This reason is not entirely an excuse. The management of Liren Jewelry Company is intensively preparing to enter the overseas market. Originally, their management team is small, and the overseas market is relatively unfamiliar, and everyone has a lot to do.
In addition, even if they were invited to attend the meeting, so what? The decision was made by the big boss. In the past, apart from wrangling, there was basically not much room for negotiation. It was better not to participate.
Seeing that half a month has passed, Liren Jewelry Company is still going its own way, without considering the feelings of its peers at all, and they are still crowded. In contrast to them, the stores of other jewelers are basically deserted.
After persisting for half a month, they could no longer hold on and had to temporarily reduce the price by half like Liren Jewelry Company, so that their business could pick up again.
It's not that they haven't thought about using special means to deal with Beauty Jewelry, it's just that they searched all the people they knew and either ignored them at all, or they immediately regretted it after agreeing.
From these situations, they knew that they had hit a brick wall this time, and all the tricks from different religions and techniques would not work, so they could only compete head-on.
After a month of intense preparations, Liren Jewelry Company’s jewelry stores in major overseas high-income countries have officially opened. On the first day of opening, the familiar taste and familiar formula were still there.
However, the competitors have become international jewelers, which naturally attracts all kinds of criticism from peers, and it is much more intense than domestic jewelers.
But no matter how you look at it, competitors don't have much competitive advantage. If you want to attack your competitors, you usually have to cut off the other party's supply of goods, use your own skills to suppress others, or use methods that are unattainable. .
However, Liren Jewelry Company has all its sources of goods in its own hands and has nothing to do with external material suppliers. This road is directly blocked.
It seems that they have an advantage, but in fact, they have also adopted lower prices to compete. As a result, Liren Jewelry Company accepted the move as if they were taking a leisurely stroll, and did not show any signs of weakness, but instead embarrassed their opponents.
No matter how low their prices are, Liren Jewelry will stick with them to the end, and even be a little more ruthless than their opponents, with a lower price than their opponents, just to make it difficult for their opponents.
After a period of price war, the competitors couldn't bear it anymore and had to restore the original price. Beauty Jewelry was also very sensible and restored the price to the original price, but their price was still half lower than that of their competitors.
After several rounds of competition, the competitors did not take any advantage, but caused themselves heavy losses. Faced with an unprecedented victory, Beauty Jewelry realized that its opponents might use dirty tricks.
So they urgently hired a large number of security personnel from Umbrella Security Company and placed them all in stores around the world.
Since these security personnel are legally equipped with guns and are equipped with individual combat uniforms developed by Zhao Yi, their combat effectiveness is overwhelming. As long as they act in accordance with the law, the saboteurs will not be their opponents at all, and will also face legal sanctions. .
Of course, the individual combat uniforms he provided to the Umbrella Security Company were still at a lower level than those provided to the military. After all, export control was not a decoration, but it was still more than enough to deal with ordinary violent elements.
The global business of Yuheng Law Firm is not something to be talked about casually. As long as they catch the opportunity, their opponents will definitely lose their skin even if they die.
As for solving competitors from the government level, it is basically impossible. Compared with the high-tech industry, the jewelry industry is not a sensitive industry. As long as Liren Jewelry operates legally and normally, there will be no reason to blame.
If a certain politician does not abide by the rules, Yuheng Law Firm is not a vegetarian. It will definitely make the other party suffer and take advantage of it.
As Liren Jewelry Company conquers cities around the world, it puts huge operating pressure on other jewelers. Since they cannot compete on price, they can only think of other ways.
The only way they can think of is to lower the supplier's price. As long as the supplier's price can be lowered, it will naturally leave them more room for price reduction, and only then can they survive in this fierce market.
Just lowering the prices of suppliers is not that easy, because suppliers are relatively more concentrated than jewelers, and it is difficult to lower prices with large suppliers alone.
If the competition is sporadic, the big suppliers will naturally not succumb. However, Beauty Jewelry Company competes globally, which means that jewelry merchants around the world are under competitive pressure.
This has caused jewelers around the world to begin to put pressure on upstream suppliers, causing large suppliers to lower their supply prices. Otherwise, this industry will really not be able to continue.
Because if all downstream jewelers have no profit to speak of, they will naturally choose to abandon the jewelry business. At that time, these large suppliers will be even less able to sell goods, and it is impossible to run the jewelry retail industry on their own.
As a result, after several months of intense adjustments, jewelry prices have been passed from downstream jewelers to upstream raw material suppliers, resulting in a sharp decline in profit margins across the industry.
In fact, when they felt the pressure from jewelry sellers, the upstream raw material suppliers tried to contact Liren Jewelry Company, hoping that Liren Jewelry would increase the price, and some even threatened to join forces to cut off their supply of raw materials.
It's just that Liren Jewelry Company's raw materials themselves don't need to be purchased from raw material suppliers like them, so they naturally ignore their threats and don't even bother to reply to them.
Seeing an owner like Liren Jewelry Co., Ltd. who is not willing to make any profit, the pressured suppliers frequently contacted each other to reach a relevant consensus and resolutely maintain the price of raw materials.
Since they didn't know which supplier Liren Jewelry Company's jewelry raw materials came from, they couldn't get a clue. They could only restrict their peers through agreements, hoping to use this to suppress Liren Jewelry Company.
In order to prevent major peers from making small moves secretly behind the scenes, the agreement also formulated severe punitive measures. Any violation will be sanctioned and punished by the entire industry.
They thought that with this agreement, Liren Jewelry Company could obediently increase prices, because according to common sense, when the price of raw materials increases, the price of end products will naturally increase accordingly.
It's just that they completely miscalculated. Beauty Jewelry's global business stores were not affected at all. Instead, they were operating vigorously. There was no sign of a decline, and no intention of controlling shipments.
This stalemate lasted for two months, and Liren Jewelry Company was not affected at all. However, other jewelers could not hold on at first. The weak ones stopped their jewelry business and began to switch to other businesses.
Only those big jewelry sellers still have the energy to persevere, but life is not easy. Operating income has dropped sharply, but labor and venue fees have not decreased at all. Let alone making a lot of money, just being able to maintain it is considered a success. Not bad.
As upstream raw material suppliers, life is not easy either. During this period, their raw material shipments have been significantly reduced, resulting in a significant reduction in their income, and their days are getting worse day by day.
Finally, when downstream jewelry retailers collapsed and upstream material suppliers also had meager incomes, the entire industry chain had to make compromises and adjust relevant strategies.
The first is that raw material suppliers have slashed prices. Compared with low profit margins, the most difficult thing is the lack of income. If this continues, the industry under its control will not be able to sustain itself.
The price reduction of raw material suppliers finally gave other links a chance to breathe, and they also lowered their prices to a price similar to that of Liren Jewelry Company.
But as a result, the entire jewelry industry has become a low-profit industry, which is no longer as attractive as before. Many people who survived are considering whether they should change careers.
This time, Liren Jewelry Company did not lower the price to a lower level, but chose to maintain their original price, as if the jewelry industry had returned to its former calm after drastic changes.
It’s just that the industry reshuffle here is indeed very obvious. Liren Jewelry has become famous through its operation during this period and has gained a lot of recognition from consumers. As a result, even if other jewelers cut prices, their business has not been greatly affected. Influence.
And because of the emergence of disruptors like Liren Jewelry Company, everyone in the jewelry industry has accused Liren Jewelry Company of breaking the rules, and even published a large number of accusatory articles in the media.
Not only did this not harm the business of Liren Jewelry Company, but it made Liren Jewelry Company famous all over the world. Not only did it not let consumers abandon it, it gained a group of loyal fans.
Consumers have always complained about the high prices in the jewelry industry, but they have no choice but to spend high prices to buy products.
The disruption by Beauty Jewelry Company just helped them vent their long-term dissatisfaction and taught other jewelers a profound lesson, and they were also able to buy jewelry they were satisfied with at a lower price.
Originally, gemstones are just more beautiful than ordinary stones. They are not magical and are more of a hype. This time, Beauty Jewelry Company is just trying to bring the industry back to normal.
In particular, suppliers who control diamond raw materials describe diamonds so well. In fact, there are not many diamond reserves on the earth, but they only control shipments to maintain prices.
This time, Liren Jewelry Company has lowered the price of gemstone products that are still abundant in the world, while the price of gemstone products with limited reserves has been reduced by a relatively small amount.
This has caused the prices of diamond jewelry that were originally extremely expensive to plummet. The international diamond market is also in turmoil, and the trusts that originally controlled the supply of diamonds are on the verge of collapse.
Because judging from the current price of diamonds, they don't have much profit at all. It's because Liren Jewelry Company has reduced the price of diamonds to only one-tenth of the original price.
In order to maintain their monopoly on raw materials, diamond suppliers need to spend huge amounts of money to maintain the operation of the entire system, not just the mining costs of the diamonds themselves.
Those who specialize in jewelry are all smart people. They are also aware of the drastic changes in the international jewelry field during this period, especially when they see that De Beers, a diamond supplier that once had a lot of glory, has fallen into miserable business.
All jewelry merchants feel sad, and they have to be cautious when buying jewelry raw materials, and no longer dare to stock up on large quantities, because even De Beers is like this, let alone them. Thinking about controlling the supply of goods.
Since controlling the supply of goods is not feasible, and it is not particularly clear how the situation will change in the future, to be cautious, it is natural to take less goods and stabilize the operation.
This has led to a continued decline in global gem sales, while Liren Jewelry Company is still moving forward rapidly as if it is outside the entire system. This has led to a situation where global jewelery consumption has not decreased but has increased, while other jewelers have increased their income. continues to decrease.
This is a carnival for consumers and a carnival for Liren Jewelry Company, but it is also the dusk for other jewelers. As for when the sun will disappear, it is still unknown. (End of chapter)