Fuqi International Competition
Now Viewing Fuqi International's competition in: Jewelry Manufacturing (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's primary customers? - Typical customers are jewelry retailers, including specialty, department, and discount stores; mass merchants; and jewelry wholesalers.
How is the company's customer base changing? - Jewelry retailers are consolidating and mass merchandisers are increasing their share of jewelry sales.
How does the company market its products? - Nearly all manufacturers attend key trade shows, such as the yearly JCK (Jewelers Circular Keystone) Las Vegas Show, to sell to retailers and wholesalers.
What price points does the company target with its products? - Price points for fine jewelry span a wide range depending on the manufacturer and brand.
What marketing opportunities does the company expect from the World Jewelry Center? - The World Jewelry Center is a mixed-use development complex being planned in Las Vegas. The center is planned to be a premier, fully-integrated, service-oriented business hub catering to retailers, manufacturers, dealers, and wholesalers.
Competitive Landscape
Demand for jewelry is driven by personal income and world gold and silver prices. The profitability of individual companies depends on efficient operations and cost controls. Large companies have advantages in offering a broader product line to meet consumers' changing desires, and in efficient production and distribution operations. Small companies can compete effectively by offering individualized and unique product lines. Average annual revenue per worker for a typical large company is over $200,000.
Business Challenges
CRITICAL ISSUES
Dependence on Personal Income - Jewelry sales are strongly tied to the health of the US economy, particularly changes in disposable personal income. Jewelry is a luxury item and consumers often postpone purchases or trade down to less expensive items during difficult economic times.
Volatile Raw Materials Pricing - Raw materials comprise about 57 percent of jewelry revenues. The most important raw material, representing nearly one-third of total materials, is precious metal. Prices for precious metals, including gold, platinum, silver, and other metals, have been volatile in recent years. Gold ore prices have nearly doubled in the last five years. Soaring metal prices pressure manufacturing margins.
Industries Where Fuqi International Competes
- Consumer Products Manufacturers
- Jewelry & Watch Manufacturing(primary)
- Retail
- Jewelry & Watch Retail
