Zhou Hougong, President Of Bao Yi Jewelry, There Is No Shortcut To Jewelry.

Zhou Hougong, President of Bao Yi jewelry

To do business, we must have a calm heart.

"I have always believed that gold and jewellery industry is not an industry that can make people get rich instantly, because it does not exist too much speculation at all, and you can only advance steadily.

Especially in the field of production and processing, you must update machinery and equipment step by step, improve production technology, reduce production costs, and increase your profits through large-scale production.

In addition, there is no other way. There is no shortcut to choose. "

Zhou Hougong thinks.

In the eyes of outsiders, gold, platinum and diamonds are commodities that are easy to cash in. Especially gold is a hard currency in the world and an important way of national currency reserves. The raw materials needed for jewelry production are valuable materials such as gold and diamonds. Its speculative nature should be very strong, because the price fluctuation is very large.

Zhou Hougong did not think so. He said: "to do business must be separated from financial investment. The operation of industry is not a simple way to buy and sell to get the middle price difference. It involves a team of many people and carries a social responsibility. Time is its cost, not a short-term arbitrage. It must have a stable profit pattern to ensure the normal operation of the whole enterprise.

And the investment we often talk about is "scrambled for gold". We should not control the proportion too much, which can only act as a personal investment behavior of the owner, and can not affect the normal operation of the company.

From this, we can also see that many jewellery companies will choose "futures hedging" to balance the price fluctuation of precious metals, so that enterprises can not be affected by the price fluctuations of raw materials, and the final profit point is still the brand value added by the products themselves and enterprises.

"You must have a calm mind in running a business. You must think that not all the money you can earn, you can only earn the part that you belong to.

Only by maintaining such a mindset, you will be able to deal with both the "positive" situation and the "interest margin" situation.

Zhou Hougong has absolute confidence in managing Bao Yi.

As early as the outbreak of the financial crisis in 2008, everyone was pessimistic about the jewelry market in 2009.

At the company plenary meeting, Zhou Hougong put forward the strategy of "keeping the position unchanged and coping with the market changing".

Instead of compressing the production line, Bao Yi intensified the analysis of the market situation, redefined the consumption crowd, and adjusted the product structure and strategy.

He believes that the consumption of high-end luxury goods is relatively large, consumers are more inclined to the consumption of low and medium priced products. In addition, compared with the first tier cities, the two or three line market is relatively weak because of the relatively closed economic structure, and consumer enthusiasm continues to grow according to the normal trajectory.

Therefore, in view of the special circumstances of the market, the characteristics of the product are adjusted in time, such as the design of new products, lighten the golden weight and increase the development of traditional markets such as weddings, etc., combined with the consumption characteristics of the two or three line cities.

But in 2009, the consumption demand of gold and jewellery not only declined but also increased demand in the first half of the year because of the preservation of gold and jewellery.

Bao Yi's order has not been reduced, but on the eve of May 1, it has been sealed. This is precisely because Zhou Hougong has a calm mentality, so that Bao Yi can be promoted steadily in the face of the financial crisis.

The conditions are ripe, and many things will come to the canal.

"More than one fund company has contacted me, hoping to put Bao Yi on the market. All of them have been rejected. I know my own business very well. Bao Yi is still in a period of growth and has no listing conditions. Why should he follow other people to bite this hard bone?"

The successful listing of Fuqi and Chao Hongji has brought great changes to the industry. Recently, the industry has launched a fever of "listing". Many jewelry companies have proposed to prepare for listing, and specially set up a preparatory working group for listing. Many fund companies have also smelled the flavour, and have been involved in jewelry enterprises to assist them in packaging and listing.

Zhou Hougong does not think that this is a good thing. In his opinion, listing is actually a double-edged sword. Enterprises still do not have enough hematopoietic function, and there is no definite medium and long-term plan. If they go on the market, there will be great risks even if they succeed. Because jewelry enterprises are operating in industry, they should not be "cash in hand". Even if the "money" is successful, the failure of enterprises is definitely not what we want to see.

Since 2000, after the introduction of advanced equipment such as laser printers, automatic milling machines and other advanced equipment in jewelry processing factories, the jewelry industry in China has entered a period of rapid development. Many jewelry enterprises have begun to accelerate technological improvement, improve technology and compete for the introduction of innovative products of high technology. After 2005, jewelry manufacturers really began to work hard on the styles and concepts of products, and strive to introduce characteristic theme products and constantly update them. This marks the beginning of the jewelry industry gradually onto the brand age.

During this period, Bao Yi put forward the concept of "jewelry integrated service provider".

Zhou Hougong believes that the domestic jewelry industry has just entered the brand age, and there is still a certain distance from the capital operation era. It may take nearly 10 years, and some jewelry companies really have the conditions for listing.

Bao Yi has been sticking to the development strategy of steady progress, not sticking to it, but not radical. Only when the basic conditions are ripe, will we choose to "enter the course".

This is the steady development strategy of Zhou Hougong, which has been firmly adhered to by Bao Yi, and has been verified in the past years.