“What would you consider to be the key success factors of the online diamond industry. Also, how important each one would be to the industry?” - Matt
This recently received question is a subject that I have written about in the past, but is still is a relevant and hotly debated issue in the jewelry industry today.
I believe there are four basic reasons for the success of the online diamond sales:
1. Convenience and a feeling of being in control of the buying process.
2. The perception of a better price
3. The perception that diamonds are a commodity and the certificate contains all the information necessary to make an informed decision about beauty and value.
4. No sales tax
Taken individually there is nothing new about any of this – what is new is the combination of all four and the ease of access – virtually anywhere at any time.
The internet has been transforming the industry in ways that are still evolving.
And while I embrace much of this change it saddens me that there are those in the diamond business, as well as in the public, who believe or who want to believe, that the rare and very individual beauty of a diamond can be reduced too, determined and quantified by the numbers, angles, percentages and letters on a piece of paper. The whole of the online diamond industry rests, almost entirely, on a piece of paper.
David W. Nytch CGA www.westandcompany.com
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