Abstract
This paper presents a report about a business project called “EarRing”. The project represents an innovative product –earrings that can also be worn as rings. The manufacturers of the product will offer a great variety of designs and styles of earrings. The products will be sold online and at the stores. The business will be gradually developed into a chain of stores on the territory of the Chinese Mainland and Hong Kong.
Introduction
In this report a business project called “EarRing” will be presented. This project will begin functioning in the Chinese Mainland and Hong Kong. The business will be oriented and manufacturing and distributing jewelry of original design and construction. The main products will be earrings that can be transformed into rings.
“SMART” Objectives
Product
The new project will be promoting the new kind of jewelry, which is earrings that also can be worn as rings. The variety of production is planned to be wide. The manufacturers will explore the field of work and come up with a number of designs of items for men, women, teenagers and children.
Besides, the products provided within the project will be divided into categories according to the materials they are made of such as wood, metal of different kinds and plastic. The products will be standard paired earrings, single earrings and sets of earrings that can be matched based on their style.
Market Research
According to China Jewelry Industry Report 2013-2016, the demand for jewelry among the Chinese population has grown significantly (par. 1). The growth of disposable income among the citizens of China has created an interest towards luxury goods such as jewelry of both premium and costume types (Jewelry in China, par. 3).
Target consumers of the business are women, men and children. In the modern world China is the new market for jewelry manufacturers, the Chinese consumers especially value the items with natural gemstones (Hsu, Lucas, Qiu, Li, and Yu, par. 2). The retail of jewelry in China increased by ten per cent in 2013 (Jewelry in Hong Kong, China, par. 1).
Pricing and promotion
The prices for the products will be put according to the costs of their production. It is plan to gradually increase the value of the products by affording more expensive jewelry findings and gem stones. Promotion of the product will be done by means of using various kinds of advertising. It is planned that the Internet promotion will play a big role – advertising videos and pages will be placed on some of the most popular social media platforms. Demonstrations will be held in public places such as shopping malls and the most crowded streets. Moreover, bill boards will be employed.
Operations Plan
Suppliers
- Panda Hall, which is a big Chinese online market for jewelry findings and materials, gems and beads. The website offers various discounts and free shipping for the orders higher than 399 dollars.
- Gets.com, which is the biggest jewelry findings supplier in China, they offer a huge variety of goods and materials for making jewelry and for packaging and delivering it.
- Lalang Beads that is another big online portal selling jewelry findings, they deliver the goods via airmail, offer the lowest prices and good service.
All of these suppliers combined will allow buying a large variety of materials and elements for the product of our business.
Delivery methods
- From supplier to company the materials will be delivered through the water, airmail or state mail. The order will be done online and then picked up by a car at a warehouse of the courier service.
- From company to customers the products will be sent through courier services and mail operating within the state. The packaging needs to be safe and reliable so that fragile objects and parts are not damaged. The customers will also be able to pick up their orders by themselves at the stores.
Financial projections
In order to provide the costs needed for the operation of the business a loan will be taken from the Industrial and Commercial Bank of China. Financial statement of the company includes the calculation of cash inflows that show the revenues of the business and personal finances, income statement that sums up the performance of the business, and balance sheet that contains the information about what company owes and what it owns.
Justification
The jewelry manufacturing and distributing business was chosen for the project because beauty industry is an ever rowing market. Even though luxury products such as jewelry and accessories do not have an essential meaning, they have always been highly demanded. The growth of disposable income increases the demands for beauty products and luxury goods.
The researchers documented and reported the growth of average income in China over the last couple of years. Besides, this country is culturally oriented at the consumption of jewelry and gems of various kinds. These factors will most definitely contribute to the popularity of the planned business project.
Works Cited
China Jewelry Industry Report 2013-2016. Reportlinker. 2014. Web.
Hsu, Tao, Andrew Lucas, Zhili Qiu, Mu Li, and Qingyuan Yu. “Exploring the Chinese Gem and Jewelry Industry”. Gems & Gemology, 50.1 (2014).
Jewelry in China. Euromonitor. 2014. Web.
Jewelry in Hon Kong, China. Euromonitor. 2014. Web.