With the development of society, jewelry is not simply for decoration, instead a representative of identity and status. And the upper-middle often likes wearing luxurious jewelry on formal occasion. But nowadays jewelry is defined as luxury goods for its exorbitant price attached on jewelry cards or boards for display.

“Foreign companies generally sell to a higher level of the economic pyramid in developing countries such as China. So essentially their customers can afford the higher price,” explains George Yip, professor and co-director of the Center on China Innovation at the China Europe International Business School. “This is also a typical foreign market penetration pricing policy: Start high and move down later to expand the customer base.” And a more professional look and better jewelry sales, unique jewelry cards add a top-notch touch to jewelry packaging.

Gao Xudong, senior research fellow and vice-director of the Tsinghua University Research Center for Technological Innovation seems to echo Yip. “It is a rational choice for high-end brands to price higher in China,” Gao says. “China is still a hierarchical society where people need brands to label their social status, and there is demand for every social class.” Therefore, a growing number of Chinese are crazy to buy luxury goods even if the price is beyond their capacity.

Apart from economic pyramid in China, higher pricing is often decided by the brand strength of a company and geography. The Hilton brand, for example, is so well established that it is able to lead the market in terms of price in many markets. But as the brand moves further into the second- and third-tier cities, the prices will be adjusted accordingly, he says; Philippe Garnier, vice-president of sales and regional marketing APAC, Hilton Worldwide. When it comes to jewelry accessories, like jewelry cards, are absolutely labor-intensive products that factories are mainly situated in developing areas, especially in second or third cities. The low price depends mostly on geography.

To sum up, pricing luxury goods should be considered from above three aspects---economic pyramid, brand strength and geography.