Industry Overview: the scale of diamond decoration exceeds 100 billion, and the demand recovers in the post epidemic period
According to Euromonitor International data, in 2020, the retail scale of diamond jewelry in China increased from - 9% year-on-year to 109.8 billion yuan. Under the recovery of demand, it is expected to increase by more than 20% in 2021. In the industrial chain, the retail end of the brand has a gross profit margin of more than 60%, and the added value of the industrial chain is high. Among them, the leading enterprises realize the continuous expansion of exhibition stores by virtue of financial strength and refined management. The epidemic also accelerates the reshuffle of the industry, and the overall concentration shows an upward trend.
development driven: consumption in multiple scenarios such as marriage and love and pleasing oneself jointly promote growth
With the improvement of residents' consumption power and the expansion of high-quality consumer groups, the bottom support for the steady development of the diamond market is strong. At the same time, starting from the specific scenario, we predict that the retail scale of diamond accessories in China's wedding market will reach 96.1 billion yuan - 104.1 billion yuan in 2025, and there is still room for penetration to the standard US / Japan; The upgrading of the consumption concept of the middle-aged light customer group in the Yueji scene will promote the re purchase of products and the growth of customer orders.
competitive elements: Products + channels help rapid development, and brand value builds core barriers
With the help of channel store expansion, the local head diamond jewelry brand has realized the rapid expansion of sales scale in the early stage. In recent years, it has also actively grasped the opportunity of consumption upgrading and continuously improved the efficiency of single store by improving the comprehensive ability of product design and operation services. In the medium and long term, the building of brand power is the key to building the core barriers of enterprises, including combing the differentiated product positioning and shaping the brand narrative of emotional connection, so as to consolidate the foundation for the continuous improvement of brand volume and price.
natural drill vs cultivated drill: share industry development opportunities and form complementary brand differentiated positioning
In the future opportunities for the expansion of the overall diamond industry, natural diamond brands will have strong competitiveness in wedding consumption scenes and luxury high-end non wedding consumption scenes with the characteristics of scarcity and the precipitation of long-term established emotional attributes and brand value; The cultivation of diamond brands is in the early stage of development. Most of them focus on "flat replacement" and have high cost performance. In the future, by creating a unique brand culture, they will form a differentiated competitive advantage in meeting their own needs and in the price sensitive wedding market.
risk tips
The epidemic has repeatedly affected production capacity and consumption; Deterioration of market competition environment; The terminal exhibition store was not as expected.
investment suggestion: pay attention to the three lines of leading, characteristic and fashion diamond brands
Multiple profits will promote the steady growth of the fundamentals of the diamond industry, and the concentration is expected to continue to improve in the post epidemic era. At the same time, the valuation level of the industry is in a historical position. With the continuous improvement of the operation of leading enterprises, the current sector has a strong allocation cost performance. We suggest that we first pay attention to the comprehensive jewelry leaders and achieve rapid growth through accelerating the expansion of exhibition stores and diversified product layout, such as Chow Tai Fook, Chow Tai Seng Jewellery Company Limited(002867) , Lao Feng Xiang Co.Ltd(600612) and Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) ; Secondly, pay attention to the characteristic marriage and love jewelry brands and shape unique competitive barriers through differentiated brand value transmission, such as DEA shares; In addition, focus on fashionable jewelry brands with large scale expansion flexibility and products sharing market dividends, such as Guangdong Chj Industry Co.Ltd(002345) .
