A partnership was established on 19 June 2014 between Leibish & Co, Israel-based online fancy coloured diamond supplier, and Kela, one of the top online diamond retailers in China. Under the agreement, Leibish will supply its fancy coloured diamonds and jewellery to Kela who will become Leibish’s exclusive agent in China, offering a wide spectrum of fancy coloured diamond products to consumers. In an interview with Hong Kong Jewellery, Leibish’s content marketing director Benji Margolese explained the reasons behind the partnership and its future marketing plans in China.
The number of online retailers has been driven up amidst the rapid growth of the jewellery industry in China. The main reason Leibish partnered Kela is their similar business nature of conducting the majority of sales online. Margolese said: “We have a common belief that the easiest and most comfortable way to purchase diamonds nowadays is via internet.” Understanding thoroughly the marketing tactics to tap into a new market, president Leibish Polnauer expressed: “To effectively enter the Chinese market, we understand that the best way is to do it through a local business who knows the intricacies and needs of the consumers in the deepest way. We partner Kela because this company is a strong player in the diamond market in China which could help us serve the consumers in the exact way they require.”
According to Kela’s official release, it will establish new channels on the official website, with Leibish being the flagship brand of fancy coloured diamonds. On other online retail platforms including Tmall, consumers will see Leibish’s exclusive pages for promoting its diamond products. With over 30 physical retail stores currently in China, Kela will further promote Leibish at its designated stores in the model of “counter-in-shop”. Margolese added: “Our brand awareness will also be further enhanced by Kela who will mention us as the source of fancy coloured diamonds at fashion, bridal or other trade events.”
Polnauer stated: “Consumers had little access to fancy coloured diamonds in the past. Now the partnership brings a perfect opportunity for them to source natural fancy coloured diamond products. We and Kela strongly believe that, the first beneficiary would definitely be our consumers. In addition, Kela will develop like a powerhouse of diamond merchandise, further underlining its position as Asia’s major diamond and jewellery supplier.”
Nowadays, in terms of coloured diamonds, Chinese consumers are most interested in yellow and pink diamonds and jewellery set with the stones, especially engagement rings. Margolese observed that Asia’s middle class has slowly emerged to a population of above an astounding 500 million, with increasing disposable incomes. China’s massive middle class is expected to consume goods and services valued at over three trillion dollar. He believed that a large percentage of the consumption value will go to luxury products. As fancy coloured diamonds serve dual proposes as both pleasure purchase and investment, he is confident that the increasing number of Chinese middle class will become interested in fancy coloured diamonds.
However, traditional white diamonds still in general dominate the Chinese diamond market. Margolese admitted that it was the lack of awareness and education of fancy coloured diamonds. He suggested: “Apart from working with Kela, we plan to increase our exposure with more advertisements and search engine optimization in the coming two years. Leibish will also increase its presence at trade fairs, press events and publicity affairs around China, aiming to further expand our products to Asia.”
He added: “Leibish has its competitive edge to enhance consumers’ confidence. First, we offer the best quality fancy coloured diamonds for the market, with transparent pricing and certificates. Second, our sales team forges a personal relationship with every single customer, so as to serve their best needs. We also provide one-on-one consultations for clients that would like to enrich their investment knowledge on fancy coloured diamonds. Last, Leibish offers the biggest guarantee to clients, allowing them to return the products within 30 days. The return policy demonstrates our strong confidence in our products.”
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