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2 Established in April 2000 by William Wong, founder and chairman of Luk
Fook Holdings (International) Limited.

2 Created to take advantage of the business opportunity

presented by the internet.(B2B platform)

2 December 2002 ʹ setup section in website for public (B2C).

2 Started as Jewelry trading site, evolved into web conferencing tool, further
developed into web based security surveillance system.

2 Mainly targeted young, low-spending sections of the crowd.

2 Goodwill, quality and price were main considerations for Jewell world

2 Introduction of CEPA was a motivating factor for Jewellworld to consider

entering market in China.
 S.W.O.T. ANALYSIS

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 2 Bracelets, 2 Price Ranging
earrings, rings, from few 100
necklaces, to few
pendants and
mobile phone
thousands of
decorations in dollars.
gold, silver.
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2Hong Kong the Main 2 ã commercials
market. Customers and advertising
present in US, UK etc.
Payments by cheque
in departmental
and bank deposit stores.
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DEMOGRAPHIC EN IRONMENã :

2 High percentage of young and educated population.

2 High internet usage in 18-24 yrs. segment

ECONOMIC EN IRONMENã :

2 High GDP growth rate and improved standard of living.

2 Rise in disposable income.
2 Uneven income distribution with the per capita income distribution of urban residents
higher than that of rural residents.
2 Related to Jewelry market
In 2001, China consumed 42 tonnes of platinum, which accounted for 60 per cent
of the world͛s total output .
China is the world͛s largest market for precious stones and platinum, and it is the
fourth largest consumer of gold. ãhe mainland is projected to become a global
jewelry center by 2010.
SOCIAL EN IRONMENã ]
2 Consumers placed importance on goodwill, good design and reliability
while buying jewelry.

2 POLIãICAL-LEGAL EN IRONMENã :
CEPA (Closer Economic Partnership Arrangement) and its impact:
ãhe Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the
Chinese mainland became effective in January 1, 2004, and provided Hong Kong
manufacturers and service companies with preferential access to the
mainland market.
CEPA benefited Hong Kong companies that wanted to establish branches on the
mainland by giving them ͞first mover͟ advantage as under CEPA, Hong Kong
manufacturers could enjoy zero tariffs on 90per cent of Hong Kong domestic
exports like jewellery .
2 ãhis created room for price reductions, which would benefit both consumers and
suppliers and a favourable economic environment was created.

2 ãECHNOLOGICAL EN IRONMENã :
ãhe web technology were mature enough for Jewellworld.com to develop its B2C
portal.
2 Aim its online sale to younger customers as they are
more Internet savvy.
2 ãarget mainly below 30 years age group to gain a
differential competency from the competitors who
aimed at 35 years or older
2 Should focus on low end to mid end segments but
include products appealing to high end segment too.
2 ã

 
 
2 Products suitable for younger age group as they are the biggest Internet users BUã
their average salary is low.
2 Current products price is not affordable by this segment.
2 Secure method of payment.

Payment methods of online purchases in china

2 Jewellworld.com only offered payment by cheque
or bank deposit.
2 If they also offer online payment using credit card or debit card then
the maintenance cost of website increases
2 Online threat Cyber crimes and stolen credit card
information on the rise in china.
2 Unreliable Delivery service & hard to track
2 Express Mail Service (EMS) is the most preferable way of minimizing
the risk of packages being lost, but this service would add to the cost
of the jewellery.
2 Introducing a new concept of online shopping in the market
where departmental stores and malls are leaders.