An engagement ring purchase can be stressful, especially for those not familiar with diamonds. According to current studies, there are approximately 1.7 million engagement rings per year in America (74% of all weddings), and an average cost of $2,000 for a diamond engagement ring.
Potential buyers can now learn more about the characteristics and benefits of diamonds before they visit jewelers. We solve the problem of not knowing enough about the products. It is now possible to learn and gather information prior to actually purchasing diamonds from their neighbors or family jewelers.
The online retailers do not want to learn or gather information via the internet. They want sales to come from the knowledge and information they have gathered. Selling diamonds online, however, isn’t the same thing as selling books online. Customers want to see the actual product before buying. What happens if the brilliance displayed on the Internet is not the same as the one I have?
It is the question of how to leverage “high-touch” among the high-end dot-com retailers. Others who sell low-end jewelry products have been focused on increasing the number of sales, but we are still trying to figure out how to get these high-end loose gems to the consumers.
Rocks By Request (RBR), the answer, is here. RBR was founded in the Bay Area by Rock Stone, a third-generation jeweler. RBR plans to expand its operations beyond California after its three-year existence. RBR’s basic concept is to leverage local jewelers for its #8220front-end. RBR addresses both “credibility” and “high touch” issues in selling its high end merchandise via the Internet.
RBR has a different positioning in the wake of the dotcom bust. RBR will ‘#8220;humanize ecommerce by combining tradition and technology in the diamond retailing sector.
This strategic plan details how to further optimize the interactivity, connectivity, and speed for RBR’â€™s development of recommendations for a new business strategy.
- To propose additional actions, recommendations, and changes to RBR’’s current strategy in an effort to increase the market share for loose diamond e-tailing.
- RBR will be provided with industry insights and market trends. A psychographic study of the current market and potential engagement markets is required. This study will also describe the business’ competitive landscape.
Our mission in online retail is to increase our 2% market share. The current market share of 2% in online diamond retail is quite low when compared to the amount of diamonds that are sold each year in the United States. RBR must increase its network, strengthen alliances, and improve its R&D efforts to provide the most current technology in ecommerce.
Success Keys 1.3
RBR has several key factors that will allow it to expand its operations:
- Expanding its network of family jewelers in the U.S.A and around the world.
- For additional storage, if needed,
- Improvement of logistic/supply chain to enable fast delivery and return.
- Repositioning the website’s look by updating graphic elements and 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.