Launching a scalable business in vaulting and gold trading
The idea seems easy but starting the business is very complicated. The market is not a frequent market even if it is a famous product. Our client requested to study the market of digital trading of the gold bars. The idea was tempting, the context is in favor, and the Turkish government provides incentives and facilities. What else do we need to make a success story?
In our analysis report, we highlighted information about the market on different aspects, including worldwide flux, Turkish opportunities, competitor behaviour, and the key regions’ expansion status.
The key regions covered in our market report are North America (the United States and Canada), Europe (UK and Germany), and Asia (Turkey and India), including more than 25 competitors.
International trade is a key sign for gold commerce
It’s not easy to understand a market where the market is complicated, and the commerce is global. So how could we study a transcontinental business without messing with our goals to launch a project from Turkey (now branded as Türkiye)?
From a macro perspective or even a business model point of view, the market represents facts that we cannot see at first glance. Mysteries and hidden facts are several.
- Nearly half of all the precious metals mined are held in the form of jewelry by India and China because of their population and social and cultural reasons.
- Exporter countries are not always producers of it. For example, Emirates and Swisse do not have mines but have more than 20% of worldwide exports.
- Some countries export more than they produce, revealing undeclared commerce and biasing the data.
International traders and eCommerce platforms do not sell gold. They sell services!
Since the business is global and our client’s idea was beyond borders. We studied the market on three levels:
- We considered the imports and export worldwide, and we considered the countries in need or who will be in need within the next three years,
- We focused on turkey import-export and the demand growth of gold between turkey and its privileged partners
- We scanned the digital traffic from two perspectives, the targeted market by actual providers and the origin market of the actual buyers.
After the data collection, grouping, and analytics, we knew that international trader and eCommerce platform does not sell gold. They sell services!
learn more about the major global trading hubs from here
the key factor of the study’s success:
Studying the end user’s behavior was very sensitive since we have two main uses case, wear (Jewelry) and invest (bullion). The end users do not have the same motive nor the same attribute of purchase. This is why we depend on the consumer’s online behavior to explain his motive and characteristics.
The quality of reports is not very good in the absence of 100% transparent trade worldwide. Therefore, we had an obligation to consider several sources and read quantitative and qualitative data to extract the proper outcomes. Moreover, the market is a steady field. This is why information can be valid for two or three years if the world stays out of geopolitics changes.
A market study is not about study technics only. It’s about mindset. Understanding the new venture’s business model and embracing the entrepreneur’s vision is a key factors in a study’s success. The same data can be valid and interpreted for several years in diverse ways depending on motive and goals. In REACH, we do our best to focus on the customer’s needs and aspirations.
read more about our study cases here