04 Mar Diamond Retailer Business Plan
Purchasing an engagement ring could be a hassle, especially for those who know little about diamonds. According to current research, there are about 1.7million engagement rings that are purchased annually in the United States. That's 74% of brides from 2.3million weddings. An average diamond engagement ring cost is approximately $2,000
With the revolution in connectivity and interactivity through the Internet, potential buyers can learn more about the characteristics of diamonds they intend to buy before going to jewelers. In this case, we solve that very problem of “knowing so little” about the characteristics of the merchandise. Information can now be gathered and shared before people go to their nearest jewelers to buy diamonds.
Online retailers don't want to have to learn and gather information. They want the learning and gathering process to translate into sales. Selling diamonds online doesn't mean you can sell books online. It is important for buyers to view the merchandise before they buy. #8220What happens if a diamond's brilliance is lower on the web than it was in the actual one I purchased?
It is the question of how to leverage “high-touch” among the high-end dot-com retailers. While others engaging in low-end jewelry items have been primarily pushing the quantity sold, we struggle to find the right formula to bring these high-end loose diamonds to consumers.
Rocks By Request (RBR), the answer, is here. RBR was founded in the Bay Area by Rock Stone, a third-generation jeweler. RBR has plans to expand outside California after three years of operation. RBR is a simple concept. RBR leverages local jewelers as its “front-end”. This strategy helps RBR address both ‘#8220credibility” and ‘#8220high touch” issues when it comes to selling its high-end merchandise over the Internet.
RBR will be positioning itself differently after the dot.com bust. RBR will continue to maintain connectivity, interactivity and speed but also ‘#8220â€™ humanize e-commerce by combining technology and tradition in the diamond retail industry.
In this strategic plan, we describe how to further optimize the connectivity, interactivity, and speed in developing recommendations for RBR's new business strategy.
- To determine an additional course(s), recommendation, and change to RBR’â€™s current strategy, in order increase the market share of the loose diamond industry e-tailing.
- RBR should be aware of market trends and industry insight in the diamond market. RBR should conduct a psychographic study on the current and potential engagement markets and discuss the competitive landscape.
Our mission in online retail is to increase our 2% market share. We can see that the current market share in diamond retailing is relatively small when compared to how many diamonds are sold in the United States every year. RBR must increase its network, strengthen alliances, and improve its R&D efforts to provide the most current technology in ecommerce.
1.3 Keys for Success
RBR's key factors for expanding its operations include:
- Extending its network of family jewelers across the U.S. and globally.
- Setting up additional warehouses to meet the needs.
- Facilitating fast delivery and returns by improving the supply/logistics chain
- Repositioning the web site by upgrading graphics elements and implementing state-of-the art navigation.
- Setting up alliances with supporting media and the Internet to promote the idea of purchasing loose diamonds online.
- Adding more product categories into the existing loose diamond category, such as gold settings for pendants, rings, and earrings, and gold trinkets/accessories aimed at younger audience.