This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Lao Feng Xiang's Business Model is so successful?

Get all the answers


Lao Feng Xiang’s Company Overview


Lao Feng Xiang is one of the oldest and most respected jewelry brands in China, with a history dating back to 1848. The company specializes in the design, manufacture, and sale of a wide range of jewelry products, including gold, silver, diamond, jade, and precious gemstone pieces. Lao Feng Xiang is known for its traditional Chinese craftsmanship, innovative designs, and high-quality materials. The company operates a vast network of retail stores across China and has expanded its presence internationally, with branches in major cities like New York, Sydney, and Vancouver. Lao Feng Xiang is committed to promoting Chinese culture through its exquisite jewelry and contributing to the development of China's jewelry industry. The business model of Lao Feng Xiang revolves around its vertically integrated operations, which encompass the entire jewelry value chain from design and production to retail. The company maintains strict control over the quality of its products by sourcing raw materials directly and processing them in its own factories. This approach allows Lao Feng Xiang to ensure the authenticity and quality of its jewelry, while also enabling it to quickly respond to market trends and customer preferences. The company's strong brand reputation, combined with its extensive retail network, provides it with a significant competitive advantage in the market. In terms of its revenue model, Lao Feng Xiang generates income primarily through the sale of its jewelry products. The company's wide product portfolio caters to various customer segments, ranging from affordable silver pieces to high-end diamond and gemstone jewelry. In addition to its physical retail stores, Lao Feng Xiang also operates an e-commerce platform, which has become an increasingly important sales channel in recent years. Furthermore, the company offers jewelry repair and customization services, which provide an additional source of revenue. Lao Feng Xiang also benefits from the rising demand for gold and precious stones in China, driven by the country's growing middle class and increasing disposable income.

https://lfxjewelry.com/

Country: Shanghai

Foundations date: 1848

Type: State-owned

Sector: Consumer Goods

Categories: Retail


Lao Feng Xiang’s Customer Needs


Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: design/aesthetics, badge value, attractiveness

Functional: quality, variety, sensory appeal


Lao Feng Xiang’s Related Competitors



Lao Feng Xiang’s Business Operations


Culture is brand:

It requires workers to live brand values to solve issues, make internal choices, and provide a branded consumer. Developing a distinctive and enduring cultural brand is the advertising industry's holy grail. Utilizing the hazy combination of time, attitude, and emotion to identify and replicate an ideology is near to marketing magic.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Ingredient branding:

Ingredient branding is a kind of marketing in which a component or ingredient of a product or service is elevated to prominence and given its own identity. It is the process of developing a brand for an element or component of a product in order to communicate the ingredient's superior quality or performance. For example, everybody is aware of the now-famous Intel Inside and its subsequent success.

Selling of branded merchandise:

Merchandising, in the broadest definition, is any activity that helps sell goods to a retail customer. At the retail in-store level, merchandising refers to the range of goods offered for sale and the presentation of those products in a manner that piques consumers' attention and encourages them to make a purchase. Like the Mozilla Foundation and Wikimedia Foundation, specific open-source organizations offer branded goods such as t-shirts and coffee mugs. This may also be seen as an added service to the user community.

Ultimate luxury:

This business approach is based on product distinctiveness and a high level of quality, emphasizing individuals with significant buying power. The expenditures required to create distinction are covered by the comparatively high prices charged, which often allow for very high profits.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.