Cooperation in the jewelry industry is often trapped in the deadlock between "cost transfer" and "risk-only burden": suppliers are only willing to provide fixed quotations, and throw all the risks of market fluctuations and inventory backlog to customers.
We firmly believe that the core of allowing customers to achieve maximum profits at the minimum cost is to break one-way risks and establish a "sharing-sharing" cooperation ecosystem.
In response to the most troublesome inventory pressure for small and medium-sized customers, we have launched the "consignment cooperation" model: customers do not need to purchase in full in advance, they only need to pay a 30% deposit to pick up the goods, and then settle the final payment after sales. Unsold products can be returned and exchanged unconditionally.
This means that the cost of capital occupancy of customers is reduced by 70%, and it is more flexible to try out different styles to avoid losses caused by blind stockpiling. In cooperation with a chain of jewelry stores last year, the model helped its inventory turnover rate increase by 40% and its net profit increased by 28%.
Faced with the risk of fluctuations in raw material prices, we pioneered the "price locking mechanism": when customers place an order, they can choose to lock the current raw material price, with an effective period of up to 30 days. If the gold price rises during the period, the customer will still settle at the original price; if the price falls, it will automatically adjust at the new price. This promise of "maintaining rise but not falling" allows customers to completely get rid of the concerns of "purchasing goods means depreciation" and dares to increase purchase volume to dilute other costs.
Our source of profit never depends on squeezing customer space, but achieves marginal cost reduction through the expansion of cooperation scale. Whenever 100 items increase in customer purchases, we reduce our profit margin by 1 percentage point and feed back to customers with more preferential quotes. This logic of "you grow, I give in" allows both parties to truly become communities of interests, rather than opponents of zero-sum game
