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Moissanite Sales Are Down.
Charles & Colvard Ltd., the global source of moissanite, reported first quarter of 2007 sales fell 28 percent to $5.8 million. For the three months ending March 31, 2007, net income fell 78 percent to $339,000, or 2-cents per diluted share.
Does this mean that Guys and Gals want real Diamonds for their Engagement Rings?
Stay tuned.
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Comments
No Barry your rhetorical question is incorrect. The sales decline of moissanite does not imply that folks want diamonds over moissanite.
C&C inept marketing is the primary reason why moissanite sales are down. C&C has positioned moissanite against high-end fashion items. Not only does this diminish moissanite as heirloom quality fine jewelry but it caters to a market segment least interested in moissanite.
C&C's brand messaging targets the high-end customer and alienates the middle tier customer who certainly would love the bolder look. Their desire for the more rarefied high end shopper has severely retarded moissanite's awareness among the middle tier customers. Thus that are the reasons behind the slow growth as well as the failure to maintain sales growth.
Barry the worst mistake you can make is to draw the wrong conclusions. If C&C targeted the middle-tier masses and grew awareness among that large segment, moissanite certainly would grow in sales. The problem is that C&C prefers a marketing strategy that alienates 90% of their potential customers.
WB.
Posted by: Wilson Barber on May 13, 2007 1:12 PM