% of e-rings bought through online vendors?

[bennyboy96]

Anybody seen stats or estimates on what % of e-rings are bought through online vendors? It''d be interesting to see the trends towards online ering purchases over the years.

 

[Diachi]

Hmmm...I don''t know! But that is very interesting question! I am just glad I found pricescope BEFORE we started looking!

 

[denverappraiser]

According to JCK (a trade magazine for jewelers), it''s up from 0% to about 2%. I think they are a little low but I certainly believe it''s under 5% still. This is a trend that''s clearly going to continue.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[bennyboy96]

I just found this on Blue Nile's site. It shows the Diamond Engagement Ring market as $4.5 Billion/Year. As of 9/04, Blue Nile's share was $148 million, or 3.3%. So I would agree that the % of the total market that belongs to internet vendors is definitely more than 2%, and probably more along the lines of 5% or so. I'm sure this trend will continue to grow as friends and family here success stories from all of us on here.

http://media.corporate-ir.net/media_files/irol/17/177247/presentations/BofA92204_1.pdf

Edit: Just realized that the $148 million is not soley engagement rings purchases, although that is their main target market. So it's probably under 3% market share for BN.

 

[hoorray]

Date: 5/6/2005 2:59:33 PM
Author:bennyboy96
Anybody seen stats or estimates on what % of e-rings are bought through online vendors? It''d be interesting to see the trends towards online ering purchases over the years.

"Years" is probably an exageration here. From what I''ve seen the Internet diamond maket is nacent in the grand scheme of things, but growing rapidly. The more interesting impact aside from pure market share is the impact on the business model and thus, for now,margins for the industry. The impact has been pretty huge for a 5% marketsharel. In the Tech industry, it''s what we would call "disruptive technoloty", or in this case "a disruptive business model". I''m sure it will continue to morph and margins will find their way back in on the value add part of the business.

 

[bennyboy96]

Ah...Diisruptive Technology! You must have read Christensen''s books Innovator''s Solution/Dilemma. I didn''t think about it, but it is definitely a disruptive technology. It will be interesting to see how if morphs over the next few years. The fact that it''s a huge market and BN only has a few %, there''s so much opportunity to grow.

 

[hoorray]

I haven''t read the book, but I lived the life for a lot of years

. It''s an exciting but tough phenomenon to be a part of.