« Ideal Princess Cut Diamond Engagement Ring {Pics!} | Main | What Is Palladium? How Does It Compare With Platinum & Gold? »
Diamonds & Jewelry: Luxury or Commodity?

With the explosion of Internet sales of diamonds and jewelry during the past several years, consumers have learned that the online diamond and jewelry marketplace is not only a source of in-depth information and education, it is also a place where you can often purchase high quality diamond engagement rings and jewelry at a fraction of the traditional jewelry store prices.
This powerful concept, together with burgeoning consumer confidence in the Internet marketplace as a viable medium for making expensive purchases, has led to an overall decline in retailer profits (profit margins) for the sale of loose diamonds and jewelry.
Diamond stores, regardless of whether they operate on the Internet or off, have been forced to recognize the power of the "Internet revolution" and have lowered prices on their merchandise in order to remain competitive.
In almost all instances, traditional retail jewelry stores are no longer able to command and expect significant profits on diamond and jewelry products that can be purchased on the Internet for a fraction of the price. Consumers either buy directly off the Internet, or they use the price point on the net to negotiate a better price (or a price match) with their local jeweler.
Indeed, the only way that jewelry stores continue to reap some of the "1980's profits" on their diamonds and jewelry, is often by aligning themselves with a "brand" or a niche that gives them the ability to sell on their own terms, without fear of "watered down profits".
The Hearts on Fire Signature Diamonds Brand, which has a registered trademark touting themselves as being "the world's most perfectly cut diamond," is a perfect example of some of these last "strongholds" of retailer "profit bonanzas".
Hearts on Fire diamonds (tm) is a company that manufactures beautiful Ideal Cut Diamonds which they market through authorized retail jewelers across the country. They do not sell their diamonds over the Internet..and for good reason.
Indeed, diamonds of similar quality, beauty, and ideal cut quality, can be purchased over the Internet at an absolute fraction of the Hearts on Fire diamonds prices.
Therefore, Hearts on Fire made a decision to market their diamonds exclusively within the framework of traditional "bricks & mortar" jewelry stores.
They are an excellent company, with a high quality product and amazing retailer support. The retailers who are authorized to carry the Hearts on Fire diamond brand, swear by the product, since it allows them to sell a beautiful "flagship" ideal cut diamond, at a huge markup and significant profits, per the "suggested price" structure mandated and enforced by the company and without fear of being undercut by Internet diamond stores.
However, aside for a few select "brands" like Hearts on Fire diamonds, most of the diamond and jewelry marketplace has been strongly affected by the Internet revolution, with an overall decline in profits due to the competitive nature of the Internet.
So the question is, has the Internet turned diamonds and jewelry from a luxury item into a commodity?
I have recently seen threads on this topic from a few different marketing and branding gurus including our friends and Janus Thinking.
Here is my own take:
Obviously, the old profits on diamonds and jewelry are gone forever. Consumers today are smart, savvy, and educated. However, the reality is that diamonds are still considered luxury items. These are not commodities like bread, butter and milk. Additionally. diamonds and jewelry are not intrinsic to our survival...(well at least for most people..;-).
Therefore, the reality is that you are still buying diamonds and jewelry with your discretionary income, regardless of the value and excellent price.
This simple fact, in my opinion, still qualifies diamonds and jewelry as being considered luxury items.
TrackBack
TrackBack URL for this entry:
http://blogadmin.diamondvues.com/mt-track-back.cgi/8147




Comments
If I might --perhaps you should consider adding a few images. I dont mean to disrespect what youve said; its very enlightening, indeed. However, I think would respond to it more positively if they could be something tangible to your ideas. Keep it up, but put a little more into it next time.
Posted by: fluval filters on March 11, 2011 7:47 AM
I saw about this information a few days ago in another article and the fundamental bullet points that you bring in here are to a degree resembling
Posted by: Migraine Popoulos on March 26, 2011 9:56 PM
Apple now has Rhapsody as an app, which is a great start, but it is currently hampered by the inability to store locally on your iPod, and has a dismal 64kbps bit rate. If this changes, then it will somewhat negate this advantage for the Zune, but the 10 songs per month will still be a big plus in Zune Pass' favor.
Posted by: NFL Jersey on April 7, 2011 1:13 PM
I like this site because so much useful stuff on here : D.
Posted by: odzywki on April 10, 2011 11:56 PM
Between me and my husband we've owned more MP3 players over the years than I can count, including Sansas, iRivers, iPods (classic & touch), the Ibiza Rhapsody, etc. But, the last few years I've settled down to one line of players. Why? Because I was happy to discover how well-designed and fun to use the underappreciated (and widely mocked) Zunes are.
Posted by: asics volleyball on April 12, 2011 2:32 AM
Hands down, Apple's app store wins by a mile. It's a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I'm not sure I'd want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.
Posted by: rosetta stone software on April 12, 2011 5:53 AM
A thoughtful insight and ideas I will use on my website. You've obviously spent some time on this. Well done!
Posted by: MP3million review on April 21, 2011 10:29 PM
Hello that is actually a incredibly fascinating view, It does give 1 food for thought, I'm incredibly delighted I stumbled on your blog site, i was working with Stumbleupon at the time, anyway i do notwant to drift on too significantly, but i'd like to mention that I'll be back when I've a little time to learn your weblog far more exhaustively, Once again thanks for that post and please do retain up the great perform,
Posted by: Rosetta stone spanish on April 22, 2011 12:17 PM
I have been meaning to submit about something like th is on 1 of my blogs and th is has given me an strategy. Thanks.
Posted by: Christian Louboutin Pumps on April 23, 2011 2:08 PM
Perfect work you have done, this internet site is really cool with great information.
Posted by: napoje energetyczne on April 24, 2011 3:59 AM
your company sells custom playing games computers together with we put in a windows 7 on nearly all systems, so were afforded a massive discount with all microsoft sofware, that any of us pass by means of our clients.
Posted by: MS office 2010 on April 24, 2011 11:52 AM
ROFL, that point is so funny. I am heading to share that.
Posted by: Rosetta stone spanish on April 25, 2011 12:42 PM
If I may --perhaps you should consider adding some images. I dont mean to disrespect what youve said; its extremely enlightening, indeed. Nonetheless, I feel would respond to it much more positively if they could be something tangible to your suggestions. Maintain it up, but put just a little far more into it next time.
Posted by: Dual Shower Heads on April 30, 2011 1:14 AM
i feel the best 1 may be the meredith
Posted by: cheap asics trainers on May 5, 2011 11:13 PM
Extremely interesting. I just like the way you create. Do you at the moment have an RSS feed?
Posted by: Christian Louboutin Pumps on May 10, 2011 3:58 AM
This design is steller! You most certainly know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost...HaHa!) Wonderful job. I really loved what you had to say, and more than that, how you presented it. Too cool!
Posted by: Michael Foxwell on June 12, 2011 4:24 AM