Internet diamond sales up 26%

[niceice]

According to Rapaport Diamond News, internet diamond sales for the first quarter of 2003 increased 26% over 2002 for a total of $11.9 billion dollars worth of diamonds that were purchased on-line... Just thought you''d like to know that you''re not the only crazy person considering the purchase of a diamond on-line... There are lots of other people who have helped the various on-line diamond dealers fine tune their selection, order and delivery processes in order to make it easier for you to buy a diamond on-line with a greater degree of success and satisfaction. Of course, we still recommend that you verify the good standing of the company you are considering buying a diamond from with the Jewelers Vigilance Comittee http://www.jvclegal.org and here on this forum and that you have your purchase evaluated by an independent GIA Graduate Gemologist for your own peace of mind...

 

[niceice]

Thanks Furthermore, but we want to clarify our statement and make sure that you understand that the increase is for all internet diamonds sales, not just our company... We WISH that we sold $11.9 billion dollars worth of diamonds the first quarter of this year! Or do we? Nah, probably not... We prefer a more personal approach to conducting our business... It is our opinion that the average quality of diamond offered for sale by the vendors who frequent the forum here on Price Scope is of a higher caliber and certainly a better price than offered by the average jewelry retailer, but some of the internet diamond dealers will sell anything from "frozen spit" up to Tiffany quality merchandise... On the internet as with in any other marketing medium, you must research the quality of product being offered and the integrity of the vendor before tossing your money into the wind to see where it lands...

 

[niceice]

Oh man, we blew it... We almost had some rough!

Diamond buyers who spend some time investigating their purchase on the internet certainly do seem to be more savvy... And those who take the time to educate themselves BEFORE their purchase certainly seem to be more satisfied with the diamond they end up selecting...

 

[Mara]

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On 5/30/2003 3:36:37 PM niceice wrote:
but some of the internet diamond dealers will sell anything from "frozen spit" up to Tiffany quality merchandise
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This is interesting R/T as we have been trying to determine for months it seems the real value of 'Tiffany quality' in a few threads on the forum. Do you feel from what you have seen of diamond quality and/or cut of stones that Tiffany quality is the pinnacle?

Better than an H&A or an ACA or similar?

The way that I would categorize it is that Tiffany quality of stones are somewhere in the middle between average cut and ACA/superideal/unbranded amazing H&A. They are probably mostly considered 'ideal' by their paramters, but are nowhere the light return we see in some of the IdealScope images online on your site and others.

Your thoughts? I think knowing the answer could help people who are considering Tiffany and even those of us who are still a little confused on exactly what 'Tiffany quality' entails.

 

[Rhino]

Hey Mara!

Good question. Tiffany is "among" top of the line goods but certainly not "THE" top of the line. Clients of ours have taken our stones and brought them to high end stores like this and were VERY pleased after making the hard comparisons. Tiffany does indeed carry some stones that are H&A and are not even aware of it. Going with a quality place like Niceice or some of the other quality vendors who inspect the merchandise they are selling here you can bet your bumpkins you're getting equal to or better than Tiffany quality. Note: Not all diamonds at Tiffany would qualify as an AGS "0" either as they do carry GIA VG/VG stones too.

Peace,
Rhino

 

[Mara]

Thanks Rhino!

I know alot of people come on here wondering about Tiffany quality and you see alot of people touting how great their stones are or 'they must be top of the line because they are Tiffany', but I know I have seen 60+ tabled Tiffany stones and knew that they do carry some non EX EX stones etc etc which to me does not equal up to the highest of the high--though I am sure many of their stones would be considered well-cut.

I also wondered how Tiffany stones measured up against your stones as well as stones such as the ACA....and your answer makes perfect sense!!

 

[Mara]

Furthermore...like typical purchasers of anything, brand speaks very loudly to a consumer. I can see the reasoning behind 'they have been in business for many years and everyone loves their jewelry so they must be of high quality' as a consumer. However, knowing what I know about stones now....we know that is not the case. Tiffany's capitalizes on its brand image to sell high priced jewelry, just like Cartier and Harry W. etc.

However, sometimes you will see or hear people say that Tiffany quality stones ARE the best, or that 'Tiffany quality' stones are the top of the line. When in fact, they are just regular stones like all the other stones, mined from the earth, cut by an anonymous cutter and sold over the counter. Stone rough is stone rough, how it's cut makes the quality difference. Tiffany doesn't have cutters, they buy cut stones. Just like your average everyday jeweler. To me it's the companies like GOG and WhiteFlash who either cut their own stones or have cutters in-house or inspect each stone with a fine tooth comb to know that stone is worthy of being sold by them that really are the ones who should have the business! They do their homework so that the customer doesn't really have to. But marketing and advertising budgets speak louder than sparkle in this case. Not to mention sheer exposure and reach of the brand. Many Tiffany's...one GOG/WF/SC/NI/DCE etc.

Mass consumerism at work...a different story altogether.

 

[StevL]

That is an interesting article and I read it twice

The simple analogy of a 26% increase does sound great, but you have to go back to square one to see what it exactly means. The internet diamond business was accounting for approximately 2%(.02) of diamond sales. If this increased by 26% the internet now accounts for about 2.5%(.025) of diamonds sales. I'm not against the net at all, I sell my share too over the net, but in reality over 95% of diamonds are bought in brick and mortar stores. I believe that it will take a lifetime or two for the internet to take a huge bite out of the total diamond market.

My 2 cents......

 

[homer_j]

Fine with me. I kind of hope the general public doesn't catch on, otherwise the on-line prices will creep and it will be harder to outshine the general public's rocks. The basic truth is, most, nearly all, consumers aren't willing to take the time to learn. Not in school and not in general. They believe what they are told. Including that it isn't safe to buy on-line. I was hesitant, but now I realize, you do your homework and it's very unlikely you'll get burned. In fact, it looks more like those not shopping on the net are getting burned at a much higher per capita rate.

I don't think it will take a lifetime. Look at how quickly web sales and service have taken off in just the past 10 years. How many people now pay bills on-line and subscribe to on-line banking as compared to 5-10 years ago? Even if the on-line don't accelerate, B&M's are starting to realize just how important it is to offer some web services even if they reserve the final sale for the shop.

The times they are a changing.

 

[Iceman]

Our sales are up this year and we had 8 local jewelers go out of business ??? Guess old habits never die or they did

 

[homer_j]

Iceman: Can you attribute some of the increase in your sales to your website? It's hard to find a good local jeweler who's willing to be your advocate. I commend your approach to customer service and honesty.

 

[StevL]

Homer,

I just don't think the jewelry business will align as quickly as other businesses. A Sony TV model #123 is the same everywhere. A diamond or any other gemstone is never the same and many people want to feel it, touch it. Many couples want to shop together and share in the moment. People want to try mountings on and drop stones in them to see exactly how they look.

I just think it will take some time. We are certainly up in our internet sales, but at the same time we are 25% up in 2002 as compared to 2001 with our in store sales. 2001 was up 17% over 2000, so I see growth in all areas. We have had our largest in store growth over the past 5 years of our 34 year history. You must also keep in mind it is much easier to increase a $100,000 business by 25% than it is to make that same increase on a 2.5 million dollar store. Same thing applies for even larger volumes.

This is the reason we are building a new free standing building.

 

[Rhino]

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On 5/30/2003 8:57:10 PM Furthermore wrote:
Oh sure, some folks will "And this was from Tiffany`s" (hwalp) - but most folks will settle for the cheaper option.

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And in many instances the cheaper option is the superior stone. Cheaper option with those of us who inspect the goods before the purchase can turn into the absolute best value.

I know you didn't mean otherwise but some folks think "cheaper option" = 2nd or 3rd rate stone which with some of us is indeed not the case. Keep up the good posts Furthermore. Love your contributions to the boards.

Peace,
Rhino

 

[Rhino]

Good to cya around here Steve! Hope all is well with you and your family. How far along are ya with the new store? Almost done?

Rhino

 

[homer_j]

Steve,

Point taken, very true, you can't beat the see and touch experience. That's why the online vendors who will excel will be those like GOG, NiceIce, whiteflash, etc who offer so much on their sites and go the extra effort of personally inspecting for you. Trust in your advocate, whether online or around the corner. You can't compete with that and that's worth paying for. What the online option will do is give folks in remote areas more options. Next time I am in the market, I will probably try to find a solid local guy that I feel confidence with, I just haven't found that yet.