Betty Ho, vice-president, corporate development at LJI, said the company would focus on PR and press advertising to launch its Lorenzo and 'e' brands. Lorenzo comprises a jewellery line of diamonds, pearls and precious and coloured stones. The 'e' brand will be offered through web-based sales kiosk, eMotion. The brand launches follow the recent formation of Shenzhen-based entity Lorenzo China.
"It's important for us to have an international image because Chinese think that's better," said Ho.
The company plans to open a flagship store and up to 1,000 outlets in department stores across Shanghai and Beijing.
It has held talks with the second largest retailer in China, a European company, and department store group about opening 500 to 1,000 mini-stores in China. The agreements should be finalised by end of March, said Ho.
According to Ho, China's jewellery market grew five times between 1991 and 2000, from US$2.5 billion to US$12.5 billion. "China is the largest market for platinum and diamonds," said Ho, adding that as consumer tastes evolved over the last five years, white jewellery had overtaken demand for yellow gold, traditionally viewed as an "investment".
The company, which also markets its jewellery line in the US, expects the bulk of sales to come from relatively inexpensive colour stones.
"We're going to target a wide range of consumer groups, from working women to housewives, and we expect our major product to be colour stone jewellery. This is inexpensive compared to buying diamonds and it's not about planned buying, but impulse (purchases), so we can even reach the student (segment)."
Lorenzo's line of colour stone jewellery will range from Rmb 1,500 to Rmb 3,000 (US$180 to $360).