Research On Retail Business Model Of RH Gold Jewelry Company

After 40 years of reforming and opening,China’s agricultural productivity has increased substantially.The main contradiction has been transformed from the lack of agricultural supply to the structural promblem of industries in rural areas.Therefore,it is necessary to vigorously develop rural productivity by boost the industry in rural area.what‘s more,under the rural revitalization strategy,it is necessary to prevent the hollowing out of the industry.In other words,modern rural area should not only develope agriculture,but thoroughly develop non-agricultural industrial systems,the key is to push forward industrial upgrading.It is proved that consumption is closely linked to the development of industrial structure and the change of demand structure of consumption is the main cause for the change of industrial structure,so the optimization of consumption structure is a vital way to optimize industrial structure.Therefore,the improving of consumption structure is key to industrial upgrading in rural China.It needs to accurately meet the latest consumption needs of residents in rural areas.To be specific,the retail industry is the foundation for development because it can be integrated with rural tourism,leisure agriculture and modern food industries.On the other hand,with the continuous growth of disposable income and consumption expenditure of residents in rural area,the majority of residents in townships and villages have an urgent need for consumption upgrading and expect to obtain better-quality products and services.Therefore,in recent years,the retail industry in township has developed rapidly and the gold jewelry industry which has both storage and consumption value,has shown a rapid growth in recent years.With the refinement of the gold jewelry industry and the more fierce competition,the retail sector has taken the largest proportion of value of the gold jewelry industry.However,the layout of China’s gold jewellery industry is rather confusing,so is the quality of the products especially in townships and villages at present.Consequently,It has affected consumers’ enthusiasm for purchase.In the other aspect,the new retail model which was spawned by Internet technology and big data technology,has brought us new ideas to solve the dilemma of the traditional retail industry in rural areas.Renhe Gold Company is committed to putting the brand-retail model into practice in rural area.In this paper,the PEST model,Porter’s five-force model and SWOT model are used to analyze the external environment,internal environment and developing strategy of this enterprise.Based on the successful experience of the Gold Plus project of Indian Tata Company,the paper proposes Renhe Gold Company as a formwork in which gold retail business model in township is combined with the new retail concept.The business model mainly involves six aspects: brand marketing,product design,customer segmentation,logistic channels,and profit-earning model.Furthermore,we have revised and supplemented the business model through previous interviews on the consumption environment,consumption willingness,and consumption capacity of people in townships.After that,the main findings are following:Gold jewelry enterprises located in the township market must keep up with changes in cosumption,working hard carrying out brand marketing and strengthening customer relationship networks.Enterprises should actively adapt to the trend of channel segmentation to meet the individual needs of consumers.They should meet different needs of customers when conducting business to cover different groups.Enterprises should expand logistics channels in an economical and efficient way and build a regionally diversified logistic channel system.Furthermore,it is also indispensable for enterprises of become bigger and stronger to take large-scale operation upon the market and improve human resource allocation.By doing like that,enterprises only make profit from product sales in the early stage,but when the market scale is expanded and the bargaining power of brand is improved,the products sales,expansion of brands,and provision of related services can earn ideal profits.