diamond business plan in india

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• How to Become a Diamond Merchant in India

India is one of the world's largest diamond polishing and trading centres and has a thriving diamond merchant community. The industry is centred around Surat in the western state of Gujarat, home to thousands of diamond-cutting and polishing workshops. Many of the  diamond merchants in India  are part of family-owned businesses that have been passed down through generations.

Diamond merchants play a crucial role in the global diamond trade, buying rough diamonds from mining companies and selling them to cutters and polishers in India and other countries. They also play a key role in determining the prices of diamonds, as they are involved in the negotiations and sales of large and rare diamonds. Overall, diamond merchants in India are a vital part of the global diamond industry and contribute significantly to the country's economy.

Here, we will understand the diamond business, how to become a diamond merchant and essential knowledge & tips for succeeding in the Indian Market

What is a Diamond Merchant?

A Diamond merchant also known as “diamantaire” is a professional who deals in diamonds as a commodity. They buy, sell and trade diamonds to individuals, retailers and wholesalers. Diamond merchants play an important role in the diamond industry, as they are responsible for bringing diamonds from the mines to the market. They also openly do business on the sidewalk, negotiating terms for bundles of gemstones as if they were fruit in an open-air market.

How to be a Successful Diamond Trader

Gain a deep understanding of the diamond industry:  Before you enter the business of diamond trading, you need to learn about the industry. You should study the 4 Cs of diamond quality, different types of diamonds, mining processes, and the history and trends of the diamond trade. Knowledge about the diamond industry is a critical foundation for your career as a diamond merchant.

Obtain formal education and training:  While not required, obtaining a formal education in gemology, jewellery design, and sales can help you to build a strong foundation for your career as a diamond merchant. You can enrol in courses offered by various institutes, including the Gemological Institute of America ( GIA ) and Indian Diamond Institute ( IDI ).

Work in the diamond industry:  Working in the diamond industry, even in entry-level positions, can help you to gain experience, develop a network of contacts, and learn about the industry from the ground up. You can gain experience by working at a diamond processing company, a jewellery store, or as a diamond appraiser.

Develop a business plan:  A solid business plan is essential for any diamond merchant. Your business plan should include a detailed analysis of the target market, pricing strategies, marketing techniques, and projected profits.

Establish relationships with suppliers and buyers:  Building strong relationships with suppliers and buyers is critical to success in the diamond trade. You can do this by attending industry events, trade shows, and conferences, as well as networking with other professionals in the industry.

Obtain necessary licences and certifications:  To become a diamond merchant in India, you need to obtain several licenses and certifications, including a business licence, registration with the Gem and Jewellery Export Promotion Council (GJEPC), and certifications such as the Kimberley Process Certification Scheme ( KPCS ) and International Organization for Standardization ( ISO ) certification.

Invest in technology and security measures:  As a diamond merchant, you need to invest in technology and security measures to protect your inventory and maintain the trust of your customers. This includes advanced security systems, insurance, and state-of-the-art inventory management systems.

Read more: The Biggest Global Diamond Suppliers and Traders

Key Roles of a Diamond Merchant

Sourcing diamonds:  One of the primary roles of a diamond merchant is to source diamonds from various channels. They may obtain diamonds from mines, other traders, or wholesalers. They must also be able to identify the different types of diamonds and ensure their authenticity and quality.

Evaluating diamond quality:  Diamond merchants must have a good understanding of the 4 Cs of diamond quality - carat weight, cut, colour, and clarity. They should be able to identify any treatments or enhancements that may affect the diamond's value and ensure that the diamonds they trade comply with international regulations.

Pricing diamonds:  In the diamond Business, one must have a deep understanding of the diamond market and be able to price diamonds competitively. He must consider factors such as market demand, rarity, and quality when determining the price of a diamond.

Selling diamond:  Diamond merchants are responsible for selling diamonds to customers, whether they are individuals, retailers, or wholesalers. They must be able to communicate the value of the diamond to the customer and negotiate a fair price.

Managing inventory:  Diamond traders must have an efficient system for managing their diamond inventory. They must be able to track the diamonds in their possession, their quality, and their value. They should also have appropriate storage facilities and security measures in place to protect their inventory.

Building relationships:  Diamond merchants must build strong relationships with suppliers, buyers, and other professionals in the diamond industry. They must attend industry trade shows, events, and conferences to network and build connections.

Keeping up with industry trends:  The diamond industry is constantly evolving, and diamond merchants must keep up with the latest trends, regulations, and technology. They must be aware of changes in the market and adjust their business strategies accordingly.

In conclusion, becoming a diamond merchant in India is a challenging but rewarding career path. It requires a combination of education, training, experience, networking skills, and significant financial resources. Pursuing a degree in business or gemology, participating in diamond grading and sorting courses, gaining hands-on experience, building a strong network of contacts, securing funding, registering the business, and obtaining the necessary permits and licences are all essential steps to becoming a successful  diamond merchant in India . With dedication, hard work, and a commitment to excellence, aspiring diamond merchants can succeed in this dynamic and exciting industry.

Author: Ranu Agrawal

Publish Date: 03/04/2023

Tags:  Diamond Merchant in India, Diamond Traders, Largest Diamond Polishing, Roles of a Diamond Merchant

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India's six diamond kings: Six entrepreneurs minting money in Rs 70,000 crore industry

India's diamond kings: Six entrepreneurs minting money in Rs 70,000 crore industry

ET Bureau; Nidhi Nath Srinivas & Sutanuka Ghosal India's diamond kings-the biggest players in the Rs 70,000 crore diamond industry-are relatively as obscure as their products are glittering. The six diamantaires profiled here are India's largest and the most aggressive. And a motley bunch too: from Nirav Modi, who started his creative journey by designing an earring for a friend, to Mavji Bhai Patel, who became India's biggest diamond exporter, vehemently shunning the idea of "individual success story"; from Mehul Choksi, who began his career in diamonds and jewellery as a teenager and conquered the peaks of branding, to Dharmesh Shah, who simply wants to double his turnover every five years. From Ashok Gajera, who treats every diamond like a piece of canvas, to Russell Mehta, who believes trust is hard to build but even harder to maintain. They are entrepreneurs who are the real force of a local industry that's already a global major in the $160 billion fine jewellery. And each of these stories straddle the world's diamond hearts: from the dust lands of Surat to the Belgian city of Antwerp to New York City's glittering showrooms.

Nirav Modi - Firestar Diamonds

Turnover: Rs 5,000 crore Key business facts: Sole jewellery supplier to all armed forces bases in the USA USP: Sourcing rare diamonds, for example, the famous Golconda Born into an Antwerp-based diamantaire family, Nirav Modi was sent as a 19-year-old to Mumbai to learn the ropes from his maternal uncle Mehul Choksi, chairman of Gitanjali Gems. A decade in sales later, in 1999, Modi decided to step out from the shadow of his family. Thus began the global search for the finest and rarest diamonds. Aided by his youngest brother Neeshal, Modi began buying yellow diamonds from Sierra Leone, white stones from Russia and Armenia, and pink diamonds from Argyle, the company's only Indian customer. Around 2005, Firestar acquired a company in New York with a jewellery sales network. In 2007, it acquired Sandberg & Sikorski, a US company that had the concession to jewellery to shops in all defence bases. In 2009, when the global economy, and the luxury market, were in meltdown mode, Modi took the gamble of setting up seven manufacturing units in six countries, including Armenia and Russia, where he is the only Indian player. The next niche opportunity arrived in 2010 when his Golconda Lotus necklace in a cut, patented by Modi, was auctioned at Christies's for Rs 16 crore. Since then Modi sends a few pieces to each of the 16 auctions held annually by Christie's and Sotheby in Geneva, Hong Kong and New York. Designing a pair of earrings for a friend helped Modi discover the artist in him and 'Nirav Modi' the brand was born. Modi, who says he can't hold a pen, shares his ideas with an in-house design team who work on them till he is satisfied.

Mavji Bhai Patel - Kiran Gems Pvt Ltd

Turnover: Rs 7,700 crore Key business facts: World’s largest manufacturer of small white diamonds USP: Diamonds of all sizes, from 1/100th of a carat to 10 carats In a family-driven industry where your name is your business card, managing director Mavji Bhai Patel is refreshingly free from tradition. "My father was cotton farmer living in a village of 500 people in Gujarat's Bhavnagar district. We are first-generation entrepreneurs," he says. With some seed capital from his father, Mavji's eldest brother and chairman, Vallabhbhai S Patel, shifted to Mumbai and set up the company in 1985 where he was soon joined by Mavji, a fresh commerce graduate. Despite such humble beginnings, Kiran Gems today is India's largest exporter of diamonds and jewellery. It is also the diamond industry's largest employer, with an army of 30,000 craftsmen handling over 5 million carats in rough diamonds each year. How did an 'outsider' make it so big so fast? "The most important thing is family because the business is all about trust," he says, without the least trace of irony. His most precious memory in business is of the day Kiran Gems gotsightholder status from DeBeers. "It was fantastic,''he recalls. The company is among the largest suppliers of jewellery to stores in the USA, as well as Indian brands like Tanishq, he says. There are no immediate plans to enter the Indian retail market.

Mehul Choksi - Chairman and MD, Gitanjali Group

Turnover: Rs 13,000 crore Key business facts: 4,000 sales points USP: Mass market branded diamond jewellery The 53-year old had a crystalclear goal even in his teens: to become the world's largest luxury player in branded jewellery. Mehul joined the business in 1975 and took over the reins of a Rs 50 crore firm in 1985 after his father Chinubhai Choksi died. Chinhubhai had laid the foundation of the company, which he named Gitanjali after his two daughter—ita and Anjali. "I was attending college during the day and was learning the tricks of the trade from my father in the evening," recounts Choksi. Initially, trading in rough and polished diamonds formed the core business for Gitanjali, and it was considered one of the biggest exporters of raw diamonds worldwide. This led to Gitanjali entering the international jewellery arena and it gradually started expanding the business. Mehul, who loves yachting on weekends, realised that by selling diamonds as a commodity Gitanjai was not realising its full potential. Today Gitanjali's product portfolio consists of several brands, including Gili, Nakshatra, Asmi, D'damas, Maya, Diya and Sangini; they are sold through over 4,000 points of sale in multiple retail formats. Gitanjali enjoys direct access to the US retail market through 111 high-end stores under Samuel Jewelers Inc, acquired by the group in 2006. Popular brands retailed in the US include Love Universe, Passion Stone, Affiance, Lune Dargent and REVV. The company also acquired Italian brands like Valenete, Stefan Hafner, Nouvelle Bague, IO SI and Porrati.

Dharmesh Shah - Joint MD & CFO, Asian Star Company

Turnover: Rs 1,835 crore (FY12) Key business facts: Expanding business in emerging markets USP: Fine craftsmanship Asian Star Company started its journey in 1971 when three cousins Dinesh Shah, Arvind Shah and late Prabodh Shah floated a partnership firm for diamond processing; the compan had a small diamond processing unit in Surat. The second generation of the Shahs took up the business in 1990. Dharmesh Shah is the joint MD and CFO and his brother Vipul Shah is the MD besides being the chairman of the Gem & Jewellery Export Promot Council. Dharmesh took up the business when the turnover was around Rs 350 crore; In FY12, that figure stood at Rs 1,835 crore. Asian Star plans to consolidate its position in the core business of diamond processing, while exploring further in the jewellery manufacturing business. Asian Star is a B2B company and hence does not promote consumer brands.

Ashok Gajera - Managing Diractor, Laxmi Diamond

Turnover: Rs 2,000 crore key business facts: Cygnus brand, major supplier of polished diamonds to US and Europe USP: Strong focus on customer care Laxmi Diamond was started 40 years ago by Vasant Gajera, the elder brother of Ashok Gajera. While Vasant stays in Surat, Ashok is based in Mumbai and looks after the sales and marketing. The company imports rough diamonds, processes and exports polished diamonds to US, Far East, Europe, the Middle East and South East Asia. Ashok, who joined the company in 1986 after the opening of the firm's office in Mumbai, emphasises that sourcing is the most important thing to become a major player in the industry. It gets regular supplies from mining companies like Rio Tinto, BHP and Diavik Diamond Mines. The legendary diamond cutter Sir Gabi Tolkowsky is the training consultant of Laxmi Diamond and has trained and sharpened the skills of its workers The company sells diamond jewellery under the brand name Cygnus and has 180 outlets in India.

Russell Mehta - Rosy Blue (India)

Turnover: Rs 4,000 crore (in 2011-12) Key business facts: Sustainability integrated into heart of business model USP: Grand veterans of the industry Belgium-based Rosy Blue, flagship of the Mehta family, is one of the world's largest diamond jewellery companies and owns the retail brand Orra. The privately-owned company began trading as B Arunkumar more than 50 years ago. In 1973, with Dilip Mehta at the helm, Rosy Blue Antwerp began expanding into global distribution and sourcing of diamonds. Today Rosy Blue consists of two legal entities, one operating in India, Rosy Blue (India), and the other active in the rest of the world, Rosy Blue investments Sarl. All the companies operating within these entities share the Rosy Blue trade name. "Rosy Blue is a 'family corporation'. We have evolved differently from most diamond companies, which are managed by the core family. We have trained and groomed professionals to take over key job of trading diamonds which I don't think many other companies have done. This allowed us to scale up," says Mehta. Inter Gold is the jewellery manufacturing arm of Rosy Blue India, and is one of the largest diamond jewellery companies in the world. Orra, Rosy Blue India's retail chain, has over 30 shops. In 2011, Rosy Blue India became a member of the Responsible Jewellery Council that has been established to promote responsible ethical, social and environmental practices, throughout the diamond and/or gold jewellery supply chain, from mine to retail.

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How To Start Diamond Business In India

If you are interested in starting a diamond business in India, here are a few things to keep in mind.

Secondly, start small. The diamond industry is highly competitive, and if you try to enter it with a large investment, you will likely face challenges. Instead, start with a smaller investment and grow from there.

Table of Contents

Diamond business explained in Hindi | OkCredit

Why india is a prime location for a diamond business.

When it comes to diamonds, India is a prime location because of its population of over 1.2 billion people. India is also a major diamond producer, with the country ranking seventh in the world in diamond production. Additionally, India is a major consumer of diamonds, with the country purchasing diamond worth $10.1 billion in 2016.

The Steps to Starting a Diamond Business in India

The regulations and licensing requirements for a diamond business in india.

There are a few regulations and licensing requirements that must be followed in order to start a diamond business in India. The first requirement is that you must have a valid trade licence from the government. You must also have a diamond import licence if you are importing diamonds into India. You must also have a diamond export licence if you are exporting diamonds out of India. Finally, you must have a diamond cutting and polishing licence if you are cutting and polishing diamonds in India.

The Infrastructure Needed to Support a Diamond Business in India

First and foremost, you’ll need a license from the government to operate your business. You can get a license from either the Indian authorities or the police. Make sure to carefully research the requirements for diamond business licenses in your state or territory, as some require additional permits or documentation.

To produce diamonds, you’ll need to purchase diamond stock from diamond dealers. You’ll need to make sure to buy diamonds that are certified and of the best quality.

The Potential Market for a Diamond Business in India

When thinking about starting a diamond business in India, one of the first things to consider is the potential market. India is one of the world’s leading diamond markets and is expected to grow even larger in the coming years. In fact, the market for diamonds in India is expected to reach $42 billion by 2021.

If you are interested in starting a diamond business in India, there are a number of things you will need to do. First, you will need to research the market and determine which areas are most lucrative. Next, you will need to build a strong customer base. Finally, you will need to develop a strong marketing strategy and employ effective sales techniques. If you are able to do all of these things, you will be well on your way to success in the diamond business in India.

The Challenges of Starting a Diamond Business in India

The third challenge is the fact that diamonds are subject to high taxes in India. This means that the diamond business in India is typically much more expensive than it is in countries such as the United States or Europe.

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How to Start a Diamond Jewelry Business in 14 Steps (In-Depth Guide)

Updated:   February 8, 2024

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The global jewelry market was valued at $348 billion in 2021 and is projected to reach $480 billion by 2027. Research And Markets The diamond jewelry business market will grow at a CAGR of 6% from 2022 to 2027. With demand for diamonds and fine jewelry steadily increasing, there’s never been a better time to start a business in the glittering diamond industry.

From boutique jewelry stores to online retailers, small business owners have many options to sell luxury goods. Building a successful diamond jewelry company requires dedication and hard work. This comprehensive guide covers key steps to help entrepreneurs learn how to start a diamond jewelry business.

Follow along to better understand market research, competitive analysis, registering an EIN, finding appropriate insurance, and other aspects of the diamond trading industry.

1. Conduct Diamond Jewelry Market Research

Market research is an essential element of every diamond jewelry business. It helps you pinpoint popular products, current market values, target market demographics, and supply chain options. It also provides valuable information for your business plan.

There are two types of market research, primary and secondary. Primary diamond business research is research you capture yourself. Secondary research is third-party research collected from diamond industry websites or other third-party marketing materials.

While millennials are the main target demographic for diamond jewelry, older generations still make up the majority of sales. Key factors for capitalizing on this billion-dollar diamond industry include:

• Focusing on custom-designed pieces and personalized service to attract customers.
• Catering to multiple demographics in your target audience, while emphasizing quality and craftsmanship.
• Considering environmentally friendly and lab-grown diamond options.
• Utilizing digital marketing and social media to reach millennials.
• Maintaining competitive pricing, but emphasizing product value over discounts.
• Determining the value of rough and polished diamonds.

With sound strategies tailored to today’s consumers, the diamond business jewelry market presents an attractive opportunity. The combination of steady industry growth, fragmented competition, and changing consumer demands creates ideal conditions for a successful business.

2. Analyze the Diamond Business Competition

Carefully analyzing the competition is crucial when starting a diamond business. Competitive analysis tells you about local market saturation, jewelry industry trends, natural diamonds vs. manufactured diamonds, and other businesses that sell jewelry.

There are many ways to glean knowledge of your local diamond business competitors, including:

• Visit competitor stores, and take notes on product offerings, prices, store layout, customer service, versatility in offered products (e.g. gold jewelry on top of diamond jewelry, or handmade jewelry that includes diamonds, sapphires, etc.) and overall branding.
• Compiling competitor brochures and monitoring social media also helps assess promotional strategies.
• Check competitor websites and see what pops up on the first page of Google results when searching “[city] diamond jewelry stores” and related keywords.
• Analyze competitors’ SEO strategies, which pages rank highest, online ad spend, and customer reviews. These provide ideas on how to attract customers digitally.
• Set alerts for diamond jewelry competitors to see content that performs best and get real-time feedback from their customers.

Regularly analyzing competitors gives invaluable context to business decisions. It reveals gaps in the market, prime opportunities for growth, and areas where competitors fall short. With ongoing competitive research, diamond jewelry startups can continually refine strategies to stand out.

3. Costs to Start a Diamond Jewelry Business

When launching a diamond business, there are a variety of one-time start-up and ongoing costs to consider.

Start-up Costs

There are many early expenses as you start a diamond business, including:

• Licenses & Permits – $300-$500
• Store Layout & Design – $5,000-$15,000
• Starting Inventory – $10,000-$50,000
• Display Cases & Security – $2,000-$10,000
• Tools & Jewelry Repair Equipment – $2,000-$5,000
• Marketing & Branding – $1,000-$5,000

Total startup costs for a diamond business run between $20,000 and $100,000.

Ongoing Costs

Ongoing costs are any expenses you’ll run into during the life of your jewelry business, such as:

• Rent & Utilities – $2,000-$15,000
• Staffing – $4,000
• New Inventory – $5,000
• Advertising – $500-$2,000
• Accounting & Legal Fees – $1,000-$5,000
• Insurance – $1,000-$4,000

By planning for these major start-ups and ongoing costs, new jewelry entrepreneurs can launch with a realistic business budget. Adjust estimates to suit your specific location and diamond business model.

4. Form a Legal Business Entity

When starting a diamond jewelry company, one of the first key decisions is choosing the right legal structure. The four main options are:

Sole Proprietorship

A sole proprietorship is the simplest and most common for small businesses. You operate as an individual, so there’s no separate legal entity. This means an easy setup with minimal paperwork. However, you have unlimited personal liability for debts and lawsuits. Any business losses can impact personal assets. Sole proprietorships also appear less professional to customers.

Partnership

Forming a general partnership splits ownership between partners. This allows for combining resources and skills. Partnerships pass profits and losses through to owners’ tax returns. The downside is joint and several liability – each partner is responsible if other partners can’t pay debts. Disputes between partners can also dissolve the business.

Limited Liability Company (LLC)

Many diamond jewelry ventures choose to set up a limited liability company (LLC). This separates your assets from the business for liability protection. Only business assets are at risk in lawsuits. LLCs also allow more flexibility in ownership stakes compared to corporations. The operating agreement outlines financial rights, voting power, and profit distributions between members. LLCs combine pass-through taxation with liability protection but involve more legal paperwork to establish.

Corporation

Corporations have the most complex legal requirements but offer the strongest liability protection. Corporations can raise investment capital by issuing stock. They also provide flexibility to have different classes of shareholders and can continue operating perpetually beyond the owners. Corporations require regular shareholder meetings, directors, and corporate minutes.

5. Register Your Business For Taxes

One essential step for any U.S. business is obtaining an Employer Identification Number (EIN). This unique nine-digit number identifies your business to the IRS. It is required to open business bank accounts, apply for licenses, file taxes, and hire employees.

Fortunately, obtaining an EIN is quick and can be done online through the IRS website. Here is the step-by-step process:

• Go to the IRS EIN Assistant page.
• Choose your entity type. For a diamond jewelry LLC, select “View Additional Entity Types” then “Limited Liability Company.”
• Answer questions about your LLC. You’ll need details like name, address, and LLC operating agreement.
• When prompted, provide the responsible party’s information such as name, SSN, and contact details.
• Review your information and submit the EIN application.

Within minutes, you’ll receive your EIN via email. Print and save this for your records.

You’ll also need to contact your state revenue or taxation department to obtain a sales tax permit. This allows collecting sales tax from customers and remitting it to the state. Many states offer online registration for sales tax permits. Expect fees under $100 in most cases.

6. Setup Your Accounting

As a diamond jewelry entrepreneur, implementing solid accounting practices from day one is crucial. Precise bookkeeping and financial records help ensure legal compliance, accurate tax filings, and informed business decisions.

Accounting Software

Start by using accounting software like QuickBooks to track all transactions, generate invoices, manage inventory, and run financial reports. Automation saves significant time versus manual methods. Quickbooks seamlessly connects to bank and credit card accounts to import and categorize transactions. This gives up-to-date visibility into the financial health of your business.

Hire an Accounting

While software provides convenience, partnering with an accountant is still recommended. A qualified accountant provides an expert eye to ensure everything balances and catches any errors early. Expect to invest around $200 to $500 monthly for bookkeeping and reconciliation services.

Come tax season, your accountant can handle completing all the required IRS paperwork and filings. This may cost $1,000 to $3,000 annually but offers peace of mind at audit time. Keeping an accountant informed also helps make wise financial decisions in areas like inventory purchasing, staffing, expansion plans, and more.

Open a Business Bank Account

You should also be diligent in separating personal and business finances. Keep a dedicated business checking account and credit card solely for company expenditures. This delineates expenses and simplifies record keeping.

Apply for a Business Credit Card

As a new business, you can apply for a small business credit card even without an established company credit profile. Limits may start around $500 to $2000 based on your credit score. Use this card for all jewelry inventory purchases, marketing, software, legal fees, and other operational costs. This builds your business credit history. Keep detailed receipts and reconcile transactions in QuickBooks.

7. Obtain Licenses and Permits

Before opening your doors, it is crucial to research and obtain all required licenses and permits. Begin by visiting the U.S. Small Business Administration online. The SBA also has a local search tool for city and state permits.

• Business License – Nearly all areas require a general business license to legally operate. Fees are generally $50 to $100 annually. The license certifies your business meets zoning, building, and fire codes. Display prominently.
• Jeweler’s Permit – Several states mandate a jeweler’s permit or license for dealing in precious metals and gemstones. This helps combat jewelry theft. California, for example, requires a permit per the Business & Professions Code §17747. Expect fees of around $100 to $250 for 1 to 2 years.
• Sales Tax Permit – If selling directly to consumers, a sales tax permit allows you to collect sales tax on transactions and remit to the state. Apply through your state revenue department. The fee is typically under $100.
• Alarm Permit – If installing a security system, most cities require an alarm permit. This information is kept on file for responding to false alarms. Expect a small fee of around $25 to 50.
• Fictitious Name Filing – If using a “Doing Business As” name that differs from your personal/company legal name, file a fictitious business name statement. This publishes your DBA name with the county clerk or state.
• Sign Permit – For exterior store signage, obtain a permit from the local zoning/planning department. This ensures signs meet size, placement, and design regulations. A small fee of around $50 usually applies.

Additionally, check for any local permits related to jewelry making, equipment installation, building renovations, and fire safety. Your county or city website outlines requirements.

8. Get Business Insurance

Obtaining adequate business insurance is strongly advised when starting a diamond jewelry venture. Policies help safeguard your company’s financial well-being in the event of unforeseen losses. Some key insurance products to consider, include:

• Property insurance – Protects against damage/theft of inventory, equipment, furnishings, and electronics on the premises.
• General liability insurance – Provides coverage if a customer is injured on site and sues or in the event your business damages property.
• Business interruption insurance – Covers income losses if the shop must close temporarily due to damage from a covered event.

Without proper insurance, just one incident could derail your company. Imagine these scenarios:

• A fire destroys your store and all inventory. No insurance leaves you with zero income and major debts.
• A customer slips and breaks an arm in your store. Without liability coverage, you must pay their injury claim out of pocket.
• Thieves smash your display cases and steal $50,000 in diamonds. You have no protection against the loss.

Going uninsured exposes your personal and business assets to substantial risk. Follow this process for coverage:

• Research brokers like Business Insurance to compare plans and quotes.
• Choose necessary coverages and desired claim limits. Get quotes from multiple providers.
• Select a policy with premiums fitting your budget. Pay for a full 12 months upfront.
• Provide all required documentation to the insurer such as your EIN, licenses, inventory lists, etc.
• Complete any final paperwork and payment. Obtain proof of insurance.

With policies in place, diamond jewelry entrepreneurs can operate with greatly reduced financial risk if the unexpected strikes. Don’t wait to get insured.

9. Create an Office Space

Having a dedicated office space provides numerous benefits for a budding diamond jewelry company. An office allows meeting with clients, handling administrative tasks, and separating work and home life.

Home Office

A basic home office is the most affordable option starting. Expect costs of $100 to $500 for a desk, chair, computer, phone, filing cabinet, and supplies. While convenient, working from home can be distracting and less professional for client meetings.

Coworking Office

For around $200 to $500 monthly, coworking spaces like WeWork provide amenities like conference rooms, printing, WiFi, lounge areas, and community events. This flexible shared office model allows scaling up or down as needed. Coworking spaces promote networking and can serve as a more polished meeting location.

Retail Office

Opening a small retail office next to your jewelry store allows you to meet clients on-site. Renting a 600 sq ft adjacent space would run about $1,000 to $1,500 monthly. This also provides room for jewelry repair workstations. The convenience for customers makes it worth considering.

Commercial Office

Leasing dedicated commercial office space offers the most professional setting but higher costs. Expect rents of $2,000 to $4,000 monthly for spaces sized around 1,500 to 3,000 sq ft. While expensive, the privacy and customization may merit the investment if securing high-end clients.

10. Source Your Equipment

Aspiring jewelry entrepreneurs need to outfit their workspace with the right tools and materials. Here are the top options for acquiring the necessary equipment:

Buying New Specialty retailers like Rio Grande , Otto Frei , and Stuller offer brand-new jewelry-making and design equipment. Expect to invest $2,000 to $5,000 for basics like jeweler benches, ring mandrels, steam cleaners, grinding/polishing wheels, engraving machines, casting equipment, torches, and soldering tools. Buying new ensures optimal conditions.

Buying Used Purchasing gently used equipment can save substantially on costs. Try these sources:

• Online marketplaces like Craigslist, Facebook Marketplace, eBay
• Jewelry industry forums
• Estate sales and auction houses
• Classified ads in jewelry trade magazines

Thoroughly test any used equipment before purchasing. Expect to pay 40% to 60% less than new prices.

Renting Some specialty equipment like laser welders, 3D printers, and CAD software is expensive to buy but useful in short. Renting for certain jobs is cost-effective. Rental equipment companies like United Rentals offer flexible rates from $100 to $500/week. Just confirm rental insurance requirements.

Leasing Leasing through equipment financing companies allows spreading payments over 12 to 48 months. This preserves capital. Monthly lease rates vary based on equipment costs. Leasing modern equipment also ensures you aren’t using outdated technology long-term.

11. Establish Your Brand Assets

Crafting a strong brand identity is crucial when launching a diamond jewelry company. A polished brand helps you stand out, connect with customers, and build recognition in the marketplace.

Get a Business Phone Number

Start by purchasing a unique business phone number through a provider like RingCentral . Choose a memorable vanity number if available, like “555-GEMS” rather than a generic digits-only phone number. This builds brand equity. Have the number ring both in your store (if applicable) and on your mobile device.

Design a Logo

Work with a graphic designer to create a sleek logo that represents your jewelry aesthetics. Services like Looka make logo creation fast and affordable. Consider a classic serif or script font with an elegant icon like a diamond, gemstone, or jewelry box. This glamorizes your brand.

Print Business Cards

Ensure all brand assets like business cards, packaging, catalogs, and store signage feature the logo prominently and use complementary colors, fonts, and styling. Order business cards from Vistaprint to network and market. Signage over your store’s entrance and on storefront windows builds visibility.

Buy a Domain Name

Securing a domain name that matches your business name solidifies your brand online. Use Namecheap and aim for a .com address with your brand name or keywords like “RareGemsJewelry.com”. Make it short and memorable.

Build a Website

Building out a website on platforms like Wix provides a hub for customers to browse inventory, learn about your story, and purchase items 24/7. Or you can hire a freelancer from Fiverr to develop a custom site. Include beautiful product imagery, stories behind unique designs, and clear sales/contact options.

12. Join Associations and Groups

Join relevant local associations, attend meetups, and participate in industry Facebook groups for invaluable connections. Starting a diamond industry jewelry company is easier with a supportive network.

Join Local Associations

Look to join associations like your local Jewelers Board of Trade chapter and American Gem Society affiliate organization. These trade groups offer networking, training, consumer referrals, and insider guidance. Membership fees are generally $300 to $600 annually.

Local Meetups

Attending national jewelry trade shows lets you exhibit your products and get product feedback. Local shows to consider are the New York Antique Jewelry & Watch Show , the Miami Beach Antique Show , and the Pasadena Bead and Design Show . Booth fees vary based on size and amenities. Use Meetup to find events in your area.

Facebook Groups

Facebook is a great untapped resource for free business support. Search Facebook for niche jewelry groups to join, such as:

• Diamond and Jewelry Business Network
• Diamonds Export Group
• Diamond Business

Interacting in these communities provides visibility for your work and valuable insights from experienced jewelers.

13. How to Market a Diamond Jewelry Business

Implementing an effective marketing strategy is essential for any new diamond jewelry business. Gain visibility and attract customers with a mix of digital and traditional advertising. While referrals from your network provide an initial client base, you’ll need to actively promote your brand to achieve sustainable growth.

Digital Marketing

Leveraging digital marketing channels presents low-cost ways to reach local jewelry buyers at scale. Consider these approaches to your digital marketing strategy:

• Google Ads – Target interested shoppers by bidding on relevant keywords like “custom wedding rings” and “diamond bracelets.”
• Facebook/Instagram Ads – Create eye-catching video/photo ads showcasing your jewelry designs and target demographics like engaged women.
• Email Marketing – Collect emails to build a subscriber list for sending promotions, sneak peeks at new collections, and holiday offerings.
• Blogging – Publish posts about jewelry care, styling tips, guiding how to buy diamonds, etc. to attract traffic.
• YouTube Channel – Share behind-the-scenes videos showing your jewelry-making process from start to finish to build a connection with viewers.

Traditional Marketing

Some common traditional marketing methods include:

• Storefront Displays – Create eye-catching window displays showing off your work. Offer new themes and designs monthly.
• Lookbooks – Mail professionally printed catalogs with gorgeous product photography to existing clients.
• Radio Spots – A rotating schedule of local radio ads can familiarize broader audiences with your brand.
• Events – Host a store launch party or trunk show to meet potential customers face-to-face.

Above all, continually impress existing clients so they enthusiastically refer friends and family. Strong word-of-mouth will propel your brand and help your jewelry stand out from the competition.

14. Focus on the Customer

Providing exceptional customer service is crucial to a successful diamond jewelry business. Each client interaction represents an opportunity to create a lasting positive impression. Some ways to get ahead with your customers include:

• Take extra time to educate first-time buyers on diamond quality, custom design options, and proper care for their new pieces.
• Offer complimentary cleaning and inspection with each purchase so they know you stand behind your work.
• Follow up via email or call to ensure complete satisfaction. Seek feedback on their purchasing experience to improve.
• Offer personalized perks like complimentary gift packaging for their anniversary purchase.
• Respond promptly and go above and beyond to make it right.
• Train staff to be patient, attentive, and knowledgeable to forge meaningful relationships with clients.
• Give customers what they need with an online store.

By making each customer feel valued, appreciated, and informed, your jewelry business can thrive on referrals and repeat sales. Dazzling designs may attract shoppers initially, but unforgettable service earns their loyalty for life.

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How to Start a Profitable Diamond Jewelry Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a diamond jewelry business plan., 3. develop a diamond jewelry brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for diamond jewelry., 6. open a business bank account and secure funding as needed., 7. set pricing for diamond jewelry services., 8. acquire diamond jewelry equipment and supplies., 9. obtain business insurance for diamond jewelry, if required., 10. begin marketing your diamond jewelry services., 11. expand your diamond jewelry business..

Starting a diamond jewelry business requires a thorough understanding of the market. A market analysis will help you identify customer preferences, competition, and potential opportunities. Here are some crucial steps to consider:

• Identify Your Target Market: Determine who your potential customers are, including demographics like age, gender, income level, and shopping behavior.
• Analyze Competitors: Study existing diamond jewelry businesses to understand their offerings, pricing, marketing strategies, and customer service approaches.
• Assess Supply Chain: Examine the availability of diamond suppliers, their credibility, and the cost implications for your inventory.
• Understand Trends: Keep up with the latest trends in diamond jewelry, including design preferences, popular diamond cuts, and emerging technologies in jewelry making.
• Evaluate Pricing Strategies: Research how diamonds are priced in the market and develop a pricing strategy that offers value to your customers while ensuring profitability.
• Regulatory Considerations: Familiarize yourself with the legal requirements and ethical standards for sourcing and selling diamonds to ensure compliance and promote trust.

Are Diamond Jewelry businesses profitable?

Yes, diamond jewelry businesses can be profitable. The key to success is to research the diamond market, find reliable suppliers, understand customer needs, and provide quality products and services. Additionally, offering competitive pricing and good customer service can help boost profits.

Creating a comprehensive business plan is pivotal for the success of your diamond jewelry venture. It serves as a roadmap, outlining your business goals, strategies, and how you plan to achieve them. Below are key components to include in your draft:

• Executive Summary: An overview of your business, including your mission statement, product offerings, and fundamental goals.
• Market Analysis: Research on your target market, customer demographics, and competitor analysis to identify market trends and opportunities.
• Company Description: Detailed information about your business, its legal structure, location, and the type of diamond jewelry you will sell.
• Organization and Management: Your business's organizational structure, details about the ownership, and profiles of the management team.
• Marketing and Sales Strategy: How you will attract and retain customers, including your pricing strategy, advertising, promotions, and sales tactics.
• Product Line: A detailed description of your diamond jewelry products, the manufacturing process, and any unique features or benefits.
• Financial Projections: Financial goals, projected income statements, cash flow statements, and balance sheets for the next 3-5 years.
• Funding Request: If seeking financing, a clear statement of how much is needed, how it will be used, and possible repayment plans.

How does a Diamond Jewelry business make money?

A diamond jewelry business can make money through the sale of diamond jewelry, either through physical stores or online sales. Additionally, the business may offer services such as custom designs, repairs, and appraisals. These services may be charged for directly or be included in the sale of the jewelry.

Creating a distinctive diamond jewelry brand is crucial for standing out in the competitive market and attracting your target customers. Your brand should communicate your unique value proposition and the essence of what makes your offerings special. Here are several steps to help you craft a memorable and impactful brand:

• Identify your target audience: Understand the demographics, preferences, and buying behaviors of your ideal customers.
• Define your brand values: Determine the core principles and ethics that your brand represents, whether it's craftsmanship, sustainability, or luxury.
• Create a unique brand name and logo: Choose a name and design a logo that reflects the quality and style of your jewelry and is easily recognizable.
• Develop a brand story: Craft a compelling narrative that connects emotionally with your audience and highlights the journey of your diamonds from mine to market.
• Establish a visual identity: Select colors, fonts, and imagery that consistently represent your brand across all marketing materials.
• Design a memorable customer experience: From browsing to purchase and packaging, ensure each touchpoint aligns with your brand's image and exceeds customer expectations.
• Implement a marketing strategy: Utilize a mix of online and offline channels to communicate your brand message and reach your target market effectively.

How to come up with a name for your Diamond Jewelry business?

When coming up with a name for your diamond jewelry business, consider the type of jewelry you specialize in, the feelings you want to evoke, and the message you want to communicate. Brainstorm a list of potential names and consider their connotations. Try to pick something that is catchy and memorable that will make your brand stand out from the competition. Additionally, research online to make sure your chosen name is available for use.

Formalizing your business registration is a critical step in establishing the legitimacy of your diamond jewelry business. It protects your brand, ensures legal compliance, and builds trust with suppliers and customers. Follow these guidelines to navigate through the process smoothly.

• Choose a Business Structure: Decide if your business will be a sole proprietorship, partnership, LLC, or corporation. Each has different legal and tax implications.
• Register Your Business Name: Select a unique name and check its availability. Register it with your state's secretary of state or relevant local government agency.
• Obtain an Employer Identification Number (EIN): Apply for an EIN via the IRS website. This is necessary for tax purposes and to open a business bank account.
• Acquire Necessary Permits and Licenses: Depending on your location, you may need specific permits to sell jewelry. Check with local and state agencies to obtain the right documentation.
• Understand Sales Tax Regulations: Register for a sales tax permit if your state requires it. This allows you to collect sales tax on transactions.
• File for Trademarks: If your brand or designs are unique, consider filing for trademarks to protect your intellectual property.

Resources to help get you started:

Starting a diamond jewelry business requires a meticulous understanding of the licensing and permits necessary to operate legally and ethically. Ensuring you have all the appropriate documentation is crucial to protect your business and build trust with your customers. Here are some key licenses and permits you might need:

• Business License: Obtain a general business license from your local city or county government to operate legally.
• Resale Permit: A resale permit allows you to purchase jewelry supplies without paying sales tax and to collect sales tax from customers when you sell jewelry.
• Employer Identification Number (EIN): Register for an EIN with the IRS for tax purposes, especially if you plan to hire employees.
• Jeweler's License (if applicable): Some states require a specific jeweler's license, especially if you engage in certain activities like appraisals or buying precious metals.
• Import/Export License: If you're importing diamonds or jewelry from other countries or exporting them, you'll need this federal license.
• Special Occupational Permits: Depending on local regulations, you may need additional permits for specific operations like manufacturing or appraising.

Opening a business bank account and securing funding are essential steps in establishing the financial foundation for your diamond jewelry business. A dedicated bank account will help you manage cash flow, expenses, and revenues effectively, while securing funding ensures you have the capital needed to start and grow your operation. Here's what you need to do:

• Choose a Bank: Research and compare banks to find one that offers favorable terms for small businesses, such as low fees and good customer service.
• Prepare Documents: Gather necessary documents, which often include your business registration, EIN, and personal identification, to open your account.
• Understand Your Needs: Consider what banking services you'll need, such as online banking, credit card processing, and merchant services.
• Explore Funding Options: Look into various funding sources such as small business loans, investors, grants, or crowdfunding, depending on your financial needs.
• Develop a Solid Business Plan: A well-thought-out business plan is crucial when approaching lenders or investors, as it demonstrates the viability of your business.
• Consider Credit Options: If you plan to offer customer financing or need a line of credit, discuss these options with your bank.

Setting the right pricing for diamond jewelry services is crucial as it affects your profitability and market competitiveness. Your pricing strategy should reflect the quality of your products, craftsmanship, and the value you provide to customers. Here are some guidelines to help you establish appropriate pricing:

• Cost-Based Pricing: Calculate all costs involved in sourcing, producing, and selling your diamond jewelry, including materials, labor, overheads, and packaging. Add a markup to ensure a profit margin that sustains your business.
• Market Analysis: Research competitor pricing to understand the market range. Position your prices in a way that reflects your brand's place within the market, whether it's luxury, mid-range, or budget-friendly.
• Perceived Value: Consider the perceived value of your products. High-quality diamonds and unique designs can command premium prices, but ensure the perceived value aligns with customer expectations.
• Dynamic Pricing: Be open to adjusting your prices in response to market trends, inventory levels, and promotional strategies.
• Psychological Pricing: Use pricing tactics such as setting prices just below a round number (e.g., $199 instead of $200) to make the cost seem lower.
• Transparent Pricing: Clearly communicate the value customers receive for the price, including any certifications, warranties, or aftercare services that justify your pricing.

What does it cost to start a Diamond Jewelry business?

Initiating a diamond jewelry business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $83000 for launching such an business. Please note, not all of these costs may be necessary to start up your diamond jewelry business.

Starting a diamond jewelry business requires meticulous preparation and the right set of tools. As you move to Step 8, focus on acquiring the high-quality equipment and supplies that will enable you to craft and sell exquisite pieces. Here's a list of essentials you'll need to gather:

• Workbench: A sturdy jeweler's bench designed for precision work with integrated features like mandrels and slots for tools.
• Jeweler's Tools: Includes pliers, tweezers, hammers, files, and saws specifically designed for jewelry making.
• Loupe or Microscope: Essential for inspecting diamonds and intricate details, ensuring the quality of your work.
• Diamond Tester: To distinguish real diamonds from fakes and confirm the quality of the stones you are working with.
• Polishing Equipment: High-grade polishing machines and compounds for a professional finish on your jewelry.
• Ultrasonic Cleaner: For thorough cleaning of jewelry pieces, especially after setting diamonds or other gemstones.
• Soldering Equipment: Necessary for attaching different metal parts securely, including a torch and soldering materials.
• Packaging Supplies: Attractive boxes, bags, and display materials that protect your jewelry and enhance its presentation.
• Safety Equipment: Includes goggles, gloves, and proper ventilation systems to ensure a safe working environment.

List of Software, Tools and Supplies Needed to Start a Diamond Jewelry Business:

• Jewelry design software
• Jewelry CAD/CAM software
• Computer-aided design (CAD) software
• Computer-aided manufacturing (CAM) software
• 3D modeling software
• Gemology tools, such as magnifying loupe, tweezers, and scales
• Diamonds, gemstones, precious metals, and other supplies
• Jewelry-making tools, such as saws, drills, polishing tools, and files
• Jewelry-making supplies, such as wax, casting grain, and findings
• Jewelry display cases and other display items
• Jewelry-specific accounting software
• Point-of-sale (POS) system
• Website and eCommerce platform
• Marketing materials and promotional items

Securing the right business insurance is critical when dealing with high-value items like diamond jewelry. It protects against potential losses, liability, and unforeseen events that could impact your business operations. Here’s how you can go about obtaining business insurance:

• Identify the types of insurance relevant to your diamond jewelry business, such as general liability insurance, product liability insurance, commercial property insurance, and professional indemnity insurance.
• Consult with an insurance broker or agent who specializes in policies for jewelers. They can provide expert advice tailored to the specific risks associated with your industry.
• Evaluate the value of your inventory and business assets to determine the level of coverage needed. Ensure that your policy limits reflect the full value of your goods.
• Consider additional coverages such as business interruption insurance, which can help if you have to halt operations temporarily, and jewelers' block insurance, which is a specialized policy designed for jewelers.
• Shop around and compare quotes from multiple insurance providers to find the best rates and coverage options.
• Review the policy details carefully before purchasing to understand the deductibles, exclusions, and any coverage limitations.
• Stay compliant by keeping your insurance up-to-date and revising your coverage as your business grows and evolves.

Launching a successful marketing campaign is crucial for the growth of your diamond jewelry business. It's about showcasing your unique pieces, building brand recognition, and connecting with your target customers. Here are some strategic steps to kickstart your marketing efforts:

• Develop a Brand Identity: Create a memorable logo, choose a color scheme, and develop a voice that reflects the exclusivity and elegance of your brand.
• Build an Online Presence: Design a professional website, optimize it for SEO, and be active on social media platforms where your potential customers are likely to engage.
• Utilize Influencer Marketing: Partner with influencers who can authentically showcase your jewelry to their followers.
• Email Marketing: Collect email addresses from potential customers and send them curated content, exclusive deals, and new collection announcements.
• Attend Trade Shows: Participate in industry trade shows to network with potential clients and showcase your latest designs.
• Advertise: Invest in online advertising such as Google Ads or social media ads to target specific demographics interested in luxury jewelry.
• Customer Referral Program: Encourage word-of-mouth marketing by offering incentives to customers who refer new clients to your business.

Once your diamond jewelry business is established and running smoothly, it's time to think about expansion. This can be an exciting phase, as it opens up new opportunities for growth and increased profits. Consider the following strategies to broaden your market reach and enhance your business standing.

• Explore online sales platforms: By creating a robust e-commerce website or partnering with established online marketplaces, you can access a wider customer base beyond your physical location.
• Diversify your product range: Introduce new collections or limited edition pieces to attract different customer segments and encourage repeat business.
• Extend your marketing efforts: Invest in digital marketing, social media campaigns, and influencer collaborations to increase brand visibility and engagement.
• Collaborate with other brands: Partner with clothing designers or other complementary businesses to create unique cross-promotion opportunities.
• Open additional locations: If your business model is successful, consider opening new stores in strategic locations to tap into new markets.
• Offer custom design services: Provide bespoke jewelry design services to cater to clients looking for unique, personalized pieces.

Precious opportunities in India’s Diamond Industry

India’s diamond-crafting expertise has featured yet again in the guinness world records, in the ‘most number of diamonds set in a single ring’ category.

July 6, 2018

Recognising India’s potential in the diamond business, in January 2018, the world’s largest diamond trader, the De Beers Group invested US$5 million in a Surat diamond grading unit

India’s gem processing enterprise had a well-defined text, “Ratnapariksha”, earlier than 1st century BC. It lays down guidelines for testing and valuation of precious stones and diamonds

India’s exports of cut and polished diamonds rose from US$11.2 billion in 2004-05 to US$22.8 billion in 2016-17, registering a compound annual growth rate (CAGR) of 6.1 per cent

An international diamond exchange will be set up in Surat over the next three years at a cost of US$369.1 million to assimilate the unorganised parts of diamond polishing, trading sector

Home » News » Precious opportunities in India’s Diamond Industry

Hand-crafted in Surat, the lotus shaped ring loaded with 6,690 diamonds took 20 craftsmen a whole year to create. The 18-karat rose gold ring has 48 diamond-embedded petals and weighs around 58 grams. The ring is studded with 6,690 E/F VVS (a diamond standard indicating that the stones are white & flawless) round, brilliant-cut diamonds, and valued at US$4.1 million. Agarwals, jewellers from india’s diamond capital Surat, wished to raise awareness about water conservation and chose the lotus, India’s national flower, as a symbol of  beauty that rises from water. As reported by news agencies, Government of India’s Make in India program motivated the Agarwals to create this out-of-the-box design and showcase Indian craftsmanship to the world.

Skill and resources executed at the lowest cost has been a key driver for India’s diamond business. In the past, the Indian diamond industry had focused on importing raw stones, cutting and polishing them and then re-exporting them to foreign traders. This has allowed for pure value-addition and retention of skill-based surpluses. However, over the past few years, Indian entities have started climbing up the value chain and are using finished stones for designing and setting jewellery, which fetches a much higher value-addition. Today, Indian Indian jewellers are creating ripples in the international market with their exquisite diamond studded jewellery, suited for every market around the world. India’s range of diamond jewellery is unmatched anywhere else in the world.

Recognising India’s potential in the diamond business, in January 2018, the world’s largest diamond trader, the De Beers Group invested US$5 million in a Surat diamond grading unit. The facility employs about 100 people and can process diamonds worth over US$500 million every year. In April 2018, Alrosa , a Russian diamond mining company also set up a base in India. The Government of India has permitted 100 per cent Foreign Direct Investment (FDI) in the sector under the automatic route.

India’s history of gems

India’s history of diamonds and gems is steeped in antiquity. About 2,000 years ago, India was the world’s only known source for diamonds and other gemstones. Diamonds, Rubies, Sapphires, Emeralds, Corals, Pearls, Aquamarine, Sunstones, Garnets, Zircon, Amethyst, Tourmaline, Topaz and other precious stones from India were mined, cut, polished, crafted into jewellery and exported to different corners of the world. This mine-to-market life cycle of gems from India continues even today, despite the fact that diamonds and precious stone deposits have been discovered in mines around the world, particularly Brazil and Africa.

The use of gems in India has been documented as early as the 6th century BCE. Brihat Samhita, a Sanskrit text by Daivajna Varahmihira a renowned astronomer, mathematician and astrologer from the princely state of Ujjain categorizes precious stones into 22 gems based on the ancient Indian system of astronomy and astrological signs. What is more, India’s gem processing enterprise had a well-defined text, “Ratnapariksha”, earlier than the first century BC. The text lays down guidelines for testing and valuation of precious stones and diamonds.

Today, India continues to be the main supplier of finished gems to the world. It is a fact that an estimated 12 out of 14 diamonds sold around the world are either cut or polished in India

Today, India continues to be the main supplier of finished gems to the world. It is a fact that an estimated 12 out of 14 diamonds sold around the world are either cut or polished in India. Raw diamonds from India, and diamonds imported from other countries such as Dubai, Belgium and Hong Kong are taken to processing centres in Surat, Jaipur, Hyderabad, centres in Maharashtra and Chennai, where India’s famed ‘Hira Kaarigars’ or diamond cutters work on them. These are then exported to markets in India and around the world.

Expanding craftsmanship  base

The adept craftsmanship required to bring out the distinctive lustre in each diamond is a talent handed down through generations of diamond cutters. In the past, India was seen as a centre for polishing and cutting smaller diamonds which were less than 0.5 carat. Traditionally, hira karigars shaped rough diamonds using ‘ghantis’ or polishing wheels. Today, many of Gujarat’s large polishing and cutting facilities are equipped with high-tech machinery to cut stones that vary from 1 to 5 carats and account for half the value of the entire world’s diamonds. Indian diamond cutting units have also hired master cutters from Belgium and Israel and learnt the secret of cutting diamonds that range between 0.5 to 5 carat diamonds from them.

What is of additional interest to many buyers is that of late, small and medium diamond merchants from Surat have set up hundreds of units in the tribal belt of Jhankhvav, Mandvi, Vankal, Ahwa, Dang and border villages of Nandurbar in Maharashtra and Vansda, employing tribal people, including women who belong to these areas. What is truly noteworthy here is that in an industry globally burdened by human rights violations and blood diamonds, India’s diamond industry stands out in sharp relief. Examples of rural development, artisans welfare, skills development and women’s empowerment initiatives stand tall here.

Rising trade valuation

As per IBEF data, India is the largest cut and polished diamond manufacturer in the world, and exports 93 per cent of its production. The country’s exports of cut and polished diamonds rose from US$11.2 billion in 2004-05 to US$22.8 billion in 2016-17, thereby registering a compound annual growth rate (CAGR) of 6.1 per cent. Between April 2017-February 2018 alone, India exported US$21.7 billion worth of cut and polished diamonds. Meanwhile, an international diamond exchange will be set up in Surat in the next 36 months at a cost of US$369.1 million to enable the unorganised sections of the diamond polishing and trading industry to organise itself at one place. Opportunities lie in setting up jewellery businesses, processing centres, diamond trading and manufacturing/ sale of diamond processing machinery.

A unit of Government of India’s Department of Commerce, agencies such as Gems & Jewellery Export Promotion Council (GJEPC), Gems and Jewellery Skill Council of India (GJSCI), Indian Institute of Gems and Jewellery (IIGJ) are the nodal bodies facilitating trade in this sector.

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Diamond Cutting and Polishing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting a diamond cutting & polishing business? If YES, here is a complete sample diamond cutting & polishing business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a diamond cutting & polishing business.

We also took it further by analyzing and drafting a sample diamond cutting & polishing marketing plan template backed up by actionable guerrilla marketing ideas for diamond cutting & polishing businesses. So let’s proceed to the business planning section.

Why Start a Diamond Cutting & Polishing Business?

If you have a penchant for diamond and jewelries, you can indeed make good money if only you can be willing to start your own diamond cutting and polishing business.

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Diamond cutting and polishing business is one business that is not common in countries with a rich deposit of diamonds, but it has a very high profit margin. People that are involved in the cutting and polishing of diamond would admit that they are making huge returns on their investment.

If you intend starting your own diamond cutting and polishing business, then you must take out time to learn the trade because the truth is that it only takes someone who has the technical skills and one who can truly differentiate between various grades and quality of diamond to be able to make it really big in this line of business.

It is important to state that starting a diamond cutting and polishing business requires a reasonable start – up capital, and the ability to network and market high profile clients in the society.

Sincerely, diamond is considered to be a luxurious commodity and the people that purchase it are those who are well to do. That is the reason why you must be prepared to target this class of people if you truly want your diamond cutting and polishing business to succeed.

If you have made up your mind that starting a diamond cutting and polishing business is the right business for you, then you should consider reading through this business plan that will guide you to successfully launch yours.

A Sample Diamond Cutting and Polishing Business Plan Template

1. industry overview.

Operators in the Diamond Cutting and Polishing industry are basically involved in the practice of changing a diamond from a rough stone into a faceted gem.

Cutting and polishing diamond requires specialized knowledge, tools, equipment, and of course techniques because of its extreme difficulty. Generally, the diamond cutting and polishing process includes these steps; planning, cleaving or sawing, bruiting, polishing, and final inspection.

Diamond cutting and polishing line of business is concentrated in a few cities around the world. Diamond cutting polishing business cum diamond trading business is pretty active in Antwerp, Tel Aviv, and Dubai from where rough diamonds are sent to the main processing centers of india and China.

The major cities of the world where diamonds are cut and polished are Surat, India and the Chinese cities of Guangzhou and Shenzhen.

In recent years, India has held between 19 to 31 percent of the world market in polished diamonds and China has held 17 percent of the world market share in a recent year. New York City – New York is of course the main hub in the united states of America cum North America when it comes to diamond cutting and polishing and even diamond trading business.

In as much as the market for diamond is growing all over the globe, you must adopt a workable marketing strategy to be able to make good sales and huge profits. You can go into contract agreements with those who mine diamond or those who are into trading diamond.

As simple as it sounds, if you don’t carry out a proper research before venturing into this type of business, you might end up losing your investment.

It is imperative that you conduct a research so that you are be able to know what is required in the market, how to source for raw diamonds, where to get the right kind of staffs, and loads of other information that will be useful to you.

Over and above, the diamond cutting and polishing industry is very open to any aspiring entrepreneur who have acquired the required trainings, skills, tools and perhaps professional certifications to start his or her own diamond cutting and polishing business and of course make good money from the industry.

2. Executive Summary

Clement Knox Diamonds®, LLC is a U.S based and standard diamond cutting and polishing company that will be based in New York City – New York. We have been able to secure a standard and well – positioned office facility in a central business district in New York City – New York.

We are a diamond cutting and polishing company that is set to compete in the highly competitive diamond cutting and polishing services industry not only in New York, but also throughout the United States and the global market.

Clement Knox Diamonds®, LLC will offers services such as planning, cleaving or sawing, bruiting, polishing, and final inspection of diamonds. Our business goal is to become one of the leading diamond cutting and polishing companies in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry all over the globe.

Our workers are going to be selected from a pool of certified and highly experienced diamond cutting and polishing technicians in and around New York City and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading diamond cutting and polishing companies in the United States and throughout the globe.

At Clement Knox Diamonds®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Clement Knox Diamonds®, LLC is founded by Clement Knox an engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.).

He has well over 7 years of hands on experience that can help Clement Knox Diamonds®, LLC to favorably compete with other leading diamond cutting and polishing businesses in the United States of America and all around the world.

3. Our Products and Services

Clement Knox Diamonds®, LLC is established with the aim of maximizing profits in the diamond cutting and polishing services industry.

We want to compete favorably with the leading diamond cutting and polishing companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every diamond cutting and polishing job carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Clement Knox Diamonds®, LLC is not just accepted in New York City – New York but also in other cities in the United States of America. Our products and services are basically cutting, and polishing diamonds and also selling diamonds.

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class diamond cutting and polishing company whose services, products and brand will not only be accepted in New York City – New York but also in other cities in the United States of America and throughout the world.
• Our mission is to provide professional diamond cutting and polishing services and other related services that will assist diamond mining and retailing businesses, individuals, households and organizations in ensuring that their diamonds are always in good shape and highly presentable. We want to build a diamond cutting and polishing company that can favorably compete with other leading brands in the diamond cutting and polishing services industry.

Our Business Structure

Clement Knox Diamonds®, LLC, is a diamond cutting and polishing company that intend starting small in New York City – New York, but hope to grow big in order to compete favorably with leading diamond cutting and polishing companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Clement Knox Diamonds®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services (Diamond Cutting and Polishing Expert)
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Diamond Cutting and Polishing Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services (Diamond Cutting and Polishing Expert):

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the diamond cutting and polishing department perform efficiently, coordinate employee efforts, and facilitate communications between management and technicians
• Ensures that the organization work in line with international diamond cutting and polishing best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Clement Knox Diamonds®, LLC
• Serves as internal auditor for Clement Knox Diamonds®, LLC.

Diamond Cutters cum Polishers (Technicians)

• Responsible for carrying out general diamond cutting and polishing services as required by the organization
• Work with clients to achieve their expectations as it relates to processed rough diamonds
• Handles any other related diamond cutting and polishing services as instructed by the Head, Diamond Cutting and Polishing services.
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

We are quite aware that there are several diamond cutting and polishing companies all over the world, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Clement Knox Diamonds®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured diamond cutting and polishing business that can favorably compete in the highly competitive diamond cutting and polishing service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Clement Knox Diamonds®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Clement Knox Diamonds®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experienced diamond cutters and polishers (technicians), a team with excellent qualifications and experience in various niche areas in the diamond cutting and polishing service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the diamond cutting and polishing services industry.

As a new diamond cutting and polishing company in New York City – New York, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive diamond cutting and polishing services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the diamond cutting and polishing services industry is massive considering the number of individuals and diamond retailing businesses who can’t run their business or maximize the potential of their diamond without the help of professional diamond cutters and polishers. As a diamond cutting and polishing company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new diamond cutting and polishing company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the diamond cutting and polishing industry or the diamond retailing market, you will agree that diamond manufacturers analyze diamond rough from an economic perspective, with two basic objectives steering decisions made about how a faceted diamond will be cut.

It is important to state that technology and global trends plays a major role in the diamond cutting and polishing industry. The first objective of players in this industry is to maximize their return on investment for the piece of rough diamond purchased.

They also ensure that the finished diamonds are sold as fast as they can. Scanning devices are used to get a 3-dimensional computer model of the rough stone. So also, inclusions are photographed and placed on the 3D model, which is then used to find an optimal way to cut the rough diamond ‘stone’.

Another trend is that, the diamond cutting and polishing industry has galloped ahead in recent years as a result of the rapid technological developments in our world, and the growing numbers of financially comfortable people who are looking towards owning diamonds. In the coming years, demand for polished diamonds is projected to continue growing.

Lastly, the diamond cutting and polishing industry is still going to be dominated by operators who have succeeded in positioning their company in cities that are notable for this trade, or in locations that are considered diamond mines.

8. Our Target Market

Before starting our diamond cutting and polishing business in New York City – New York, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without the services of diamond cutting and polishing companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual clines who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

• About to wed couples who are looking for diamond engagement ring
• Business/companies that are into diamond mining
• Individuals and households who can afford diamond
• Entrepreneurs and Start – Ups who are into the retailing of diamond

Our Competitive Advantage

Surviving in the business world as a diamond cutting and polishing company requires more than, your expertise, knowing how to deliver standard and well –  polished diamonds but also how to network with key people that matters; decision makers that can decide who will get a diamond cutting and polishing contract.

Without a shadow of doubt, there are loads of big time investors (Diamond cutting and polishing companies), that have a stake in the diamond cutting and polishing services industry; but one thing is certain, there is room big enough to accommodate both the diamond cutting and polishing companies and the small diamond cutting and polishing companies.

We are quite aware that to be highly competitive in the diamond cutting and polishing services industry means that you are not only expected to be able to deliver consistent and highly reliable and well – polished diamonds, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experienced diamond cutters and polishers (technicians), a team with excellent qualifications and experience in various niche areas in the diamond cutting and polishing service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the diamond cutting and polishing services industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups diamond cutting and polishing services businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Clement Knox Diamonds®, LLC is established with the aim of maximizing profits in the diamond cutting and polishing services industry and we are going to go all the way to ensure that we do all it takes and all that is permitted by the law in the United States to meet and surpass the expectations of all our clients.

Clement Knox Diamonds®, LLC will generate income by offering the following diamond cutting and polishing related services;

• Cutting and Polishing rough diamonds
• Selling diamonds
• Other related diamond cutting and polishing consultancy and advisory services

10. Sales Forecast

One thing is certain, there would always be corporate organization, diamond retailing stores, households and individual who would need the services of diamond cutting and polishing companies.

We are well positioned to take on the available market in the diamond cutting and polishing services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our diamond cutting and polishing company to profitability and enviable heights.

We have been able to critically examine the diamond cutting and polishing services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in New York City – New York.

Below are the sales projections for Clement Knox Diamonds®, LLC, it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year-: $750,000
• Second Fiscal Year-: $1.5 Million
• Third Fiscal Year-: $3.5 Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same diamond cutting and polishing services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions in the diamond cutting and polishing services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the diamond cutting and polishing services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Clement Knox Diamonds®, LLC.

Our corporate goal is to grow Clement Knox Diamonds®, LLC to become one of the top 10 diamond cutting and polishing services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in New York City – New York but also in other cities in the United States of America and the global market.

Clement Knox Diamonds®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our diamond cutting and polishing company by sending introductory letters alongside our brochure to individuals, households, corporate organizations, religious organizations, diamond retailing shops and key stake holders in the United States of America.
• Promptness in bidding for diamond cutting and polishing contracts from the big time diamond mines and diamond merchants
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Despite the fact that our diamond cutting and polishing company is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our diamond cutting and polishing services.

Clement Knox Diamonds®, LLC has a long term plan of welcoming clients from all over the world which is why we will deliberately build our brand to be well accepted in New York City – New York before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand throughout the United States of America.

Here are the platforms we intend leveraging on to promote and advertise Clement Knox Diamonds®, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around New York City – New York
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, diamond stores and diamond merchants by calling them up and informing them of Clement Knox Diamonds®, LLC and our services
• Advertise our diamond cutting and polishing business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

At Clement Knox Diamonds®, LLC we will keep the prices of our diamond cutting and polishing services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off diamond cutting and polishing contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Clement Knox Diamonds®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Clement Knox Diamonds®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via POS
• Payment via mobile money platform
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for diamond cutting and polishing services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a standard diamond cutting and polishing company; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Clement Knox Diamonds®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed diamond cutting and polishing equipment and machine – $25,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard diamond cutting and polishing company in the United States of America.

Generating Funding/Startup Capital for Clement Knox Diamonds®, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as diamond cutting and polishing business. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Clement Knox Diamonds®, LLC is a business that will be owned and managed by Engr. Clement Knox and his immediate family members. They are the sole financier of the business which is why they have decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Clement Knox Diamonds®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our diamond cutting and polishing services a little bit cheaper than what is obtainable in the market and also to ensures that our finished diamond can favorably compete with finished diamonds from any part of the world and we are well prepared to survive on lower profit margin for a while.

Clement Knox Diamonds®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our business: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase the needed diamond cutting and polishing equipment / machines: Completed
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in diamond cutting and polishing industries: In Progress

The world's largest office building, presaged to be a hub for all diamond trading activities

The Surat Diamond Bourse is a not-for-profit organization promoted by SDB Diamond Bourse, a company registered under section 8 of the Companies Act, 2013 and formed for the establishment & promotion of Diamond Bourse in Surat, Gujarat.

RECREATIONAL ZONE

The meeting area emanates an understated but timeless elegance, in line with its exclusive landscaping & greenery in the area.

GREEN BUILDING CONCEPT

SDB is setting standards in the Commercial sector, with the development and maintenance of ecological standards, which, as expected, will provide IGBC Platinum ranking.

Buyers, Makers, and Sellers of Sparkles under One Roof

With growing commercialization and professionalism in the Diamond market, the industry giants have come up with the amazing concept of accommodating all the buyers, manufacturers, and sellers under one single roof, which is the Surat Diamond Bourse.

A SOOTHING PROMENADE

Walking oneself to or from the office, when eyes revolve, scanning the space around the verdure landscaping, will bring in a refreshing experience.

The Surat Diamond Bourse is a not-for-profit organization promoted by SDB Diamond Bourse, a company registered under section 8 of the Companies Act, 2013 and formed for the establishment & promotion of Diamond Bourse at Surat, Gujarat.

The SDB Diamond Bourse is a not for profit organization promoted by SDB Diamond Bourse, a company registered under section 8 of the Companies Act, 2013 and formed for the establishment & promotion of Diamond Bourse at Surat, Gujarat.

Our Facility

The meeting area emanates an understated but timeless elegance, in-line with its exclusive landscaping & greenery in the area.

SECURITY & SURVEILLANCE

Strategically located security lobbies in the building, ensure safety & quick access to all the spaces On the safety and security side.

PARKING FACILITY

For ease of travelers & vehicle parking, there is a 20 Lac sq. ft. basement area, planned for organized vehicle parking.

SQUARE FEET

Floors (9 iconic towers), diamond merchant offices.

300 To 

SQ.FT. OFFICES RANGING

Our gallery.

• Construction Update

The SDB Diamond Bourse is a not-for-profit organization promoted by SDB Diamond Bourse, a company registered under section 8 of the Companies Act, 2013.

Useful Link

Site address.

• J-002, Admin Office, Plot No. 177/P, DREAM CITY, Near Surat International Exhibition & Convention Centre, Nr. Khajod Chowkdi NH53, Khajod, Surat, Gujarat 395007 www.gujrera.gujarat.gov.in RERA NO.: PR/GJ/SURAT/SURATCITY/Others/CAA05247/A1C/EX1/260722
• +91 261 691 7000 +91 261 691 7001
• [email protected]

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How to Start a Jewellery Business

Last updated : February 15th, 2020 12:24 pm

India has tremendous appetite for gold and diamond jewellery – creating one of the largest markets in the world for jewellery. Further, India is the largest import of gold in India and the gems and jewellery sector contributes nearly 6-7% of the Indian GDP – making it a sector. With India having a booming middle class and growing economy, the demand for gold is set to further rise in the coming years. Therefore, the jewellery business holds a lot of promise in the coming years. In this article, we look at the procedure for starting a jewellery business in India.

Types of Jewellery Business

India’s domestic gems and jewellery industry was estimated to have a market size of about Rs.251,000 crores in 2013 with the potential to grow to Rs.500,000 crores by 2018. The entire gems and jewellery industry is set to witness a very healthy Compounded Annual Growth Rate (CGAR) of about 15.95% making it very attractive for investments. The Indian Jewellery Business can be divided into different types as follows:

• Retail Jewellery Shops
• Online Jewellery Retail
• Gold Trading
• Gold Importers
• Jewellery Manufacturers

In this article, we mainly look at the procedure for starting a retail jewellery shop in India.

Starting a Retail Jewellery Shop

India has over 2.5 million jewellery shops, around 450,000 goldsmiths and nearly 100,000 gold jewellers. Retail jewellery shops are very popular in India and research has shown that Indian consumers show less interest in buying brand jewellery as they rather prefer local ones more. Further, in India, nearly 96% of all Jewellery retail shops are family-owned small businesses making it an ideal sector for setting up a small business.

Business Registration

Jewellery businesses tend to have large turnover (Turnover in excess of Rs.1 crore) easily. Hence, it recommended that jewellery businesses be registered as a private limited company to enjoy the benefits of limited liability protection, easy transferability and more. Further, by incorporating a private limited company for the jewellery business, funds in the form of debt or equity can be easily raised.

Tax Registration

Sale of gems and jewellery are taxable under GST. Hence, all jewellery businesses must have a GST Registration from the local state tax department. Upon obtaining the GST registration the business owners can avoid penalties and collect GST tax.

Import Export Code

It requires an Import Export Code or IE Code for importing goods into India. However, jewellers must be aware of all the regulations prior to importing any gold into India. Learn about the procedure for importing gold into India.

BIS License for Selling Hallmark Jewellery

Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in the article/jewellery. Hallmark is thus official mark used in many countries as a guarantee of purity or fineness of precious metal in jewellery/artefacts. The principal objectives of the Hallmarking Scheme are to protect the public against substandard, adulterated products and to obligate manufacturers to maintain declared purity standards of fineness.

A jeweller who wishes to sell hallmarked jewellery must obtain a license from BIS for the particular retail outlet. Each BIS license to sell hallmark jewellery is given for particular retail premises or sales outlet. Therefore, one company that has multiple outlets must obtain multiple BIS License to sell hallmark jewellery.

After the grant of a licence, the jeweller has to follow the terms and conditions mentioned in the agreement. In case of any deviations in the purity of precious metal (gold and/or silver) and observance of operations not in conformance to stated requirements may result in cancellation of the licence and proceedings for penalties.

To know more about starting a Jewellery Business, talk to an  IndiaFilings  Business Expert.

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Ask the analyst for, india diamond market (2023-2029) | industry, covid-19 impact, companies, value, revenue, trends, growth, forecast, size, share & analysis.

Market Forecast By Product (Natural, Synthetic), By Application (Jewelry, Industrial) And Competitive Landscape

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ETC354384	Aug 2023	May 2024	Market Research Report
6Wresearch	75	35	20

• Report Description
• Table of Content
• Related Topics

India Diamond Market Competition 2023

India Diamond market currently, in 2023, has witnessed an HHI of 7641, Which has decreased slightly as compared to the HHI of 7975 in 2017. The market is moving towards Highly concentrated. Herfindahl index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means fewer numbers of players or countries exporting in the market.

India Export Potential Assessment For Diamond Market (Values in USD Thousand)

Topics Covered in India Diamond Market Report

India Diamond Market report thoroughly covers the market by product, and by application. The market report provides an unbiased and detailed analysis of the on-going market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

India Diamond Market Synopsis

India Diamond Market is rising and it will grow more during the forecast period due to the increased demand for diamonds from end consumers leading to rising prices for polished diamonds as well as diamonds used for jewellery manufacturing purposes, the diamond industry`s contribution towards India GDP has grown significantly over recent years.

According to 6Wresearch, the India Diamond Market size is projected to rise higher during the forecast period 2023-2029 and it will reach the value of 30 billion by 2029. The India Diamond Market is primarily driven by the country`s position as a global diamond processing and trading hub. India has a strong diamond cutting and polishing industry, known for its skilled artisans and advanced manufacturing processes. The availability of skilled labor and favorable government policies supporting the gem and jewellery sector have attracted significant investments in the diamond industry. India large consumer base and rising disposable income have also fueled the demand for diamonds in the domestic market. Moreover, the country`s prominence in global diamond exports, with a substantial share in the world`s polished diamond trade, strengthens India position in the global diamond market. The increasing trend of diamond jewellery purchases for weddings, festivals, and special occasions also contributes to the India diamond market growth.

The diamond market in India faces specific challenges that impact its trade and growth. One of the major challenges is the global economic downturn and fluctuations in diamond demand. The diamond market is sensitive to economic cycles, and the slowdown in global trade and consumer spending during the COVID-19 pandemic impacted diamond sales. The closure of retail outlets and travel restrictions affected the sales of diamonds, especially in the luxury segment. Additionally, the challenge of diamond price volatility affects both diamond manufacturers and traders, making it difficult to forecast profitability and plan inventory management. Moreover, the competition from synthetic diamonds, also known as lab-grown diamonds, poses a challenge to the natural diamond market. Synthetic diamonds offer a cost-effective and ethical alternative, and companies need to differentiate their products and create awareness about the unique qualities of natural diamonds to maintain market demand.

COVID-19 Impact on India diamond Industry

The India Diamond Market faced significant challenges during the COVID-19 pandemic, impacting both the domestic and international trade of diamonds. The closure of retail outlets, travel restrictions, and the postponement of weddings and celebrations affected the demand for diamond jewelry in India. The disruptions in global trade and the decline in consumer spending also led to a reduction in international demand for diamonds, affecting India diamond exports. Additionally, the temporary shutdown of diamond processing units and manufacturing hubs further impacted the supply chain. However, the gradual lifting of restrictions and the easing of economic activities supported the market`s recovery. As consumer confidence increased and the diamond industry adapted to the new normal, there were signs of revival in the market. The digital transformation of the jewelry industry and the growing trend of online sales also played a role in the market`s recovery post-pandemic.\

Leading Players in India Diamond Market

The India Diamond Market is home to several renowned players in the diamond processing and trading industry. Some of the key players in the market include Blue Star Diamonds Pvt. Ltd., KGK Group, Rosy Blue (India) Pvt. Ltd., Venus Jewel International Ltd., and Asian Star Company Ltd. These companies are major players in diamond manufacturing, cutting, and polishing and are known for their expertise and global reach. They play a significant role in India position as a leading diamond processing hub and contribute to the country`s substantial share in the global polished diamond trade. These key players also contribute to the growth of Asia Pacific diamond market .

Diamond Market in India: Government Regulations

India has participated in the Kimberley Process, and this process is an international initiative aims to prevent the trade in conflict diamonds. Under this initiative, traders of diamond in the country need to make sure that their diamond is ethically sourced and it does not originate from conflict zone. The government in India also imposed custom duties and tariffs o import as well as exports and these duties can alter in response to government policies and economic conditions. Bureau of Indian Standards sets quality standards for many products, including gemstones and jewelry.

Diamond Market Size in India

Diamond sector in India is the essential contributor to the nation’s economy, providing employment to a number of skilled workers. Surat, which is a state in Gujrat, is renowned for its diamond processing sector.  The size of the market is continuing to expand more in the near future since many factors have been contributing to its growth. This market in India is also characterized by its focus on sustainability and ethical sourcing. A number of players in this industry are activity engaged in initiatives in order to ensure responsible mining practices as well as ethical supply chains.

Market by Product

Natural product segment on the basis of product dominated the market since it is rare and is mainly used for jewelry applications. Discovering and processing them involves complex processes, which makes them costly in the jewelry. This segment is projected to dominate the market in the future years.

Market by Application

According to Shivankar, Research Manager, 6Wresearch , jewelry segment on the basis of application is estimated to grow due to the growing middle-class population coupled with rising spending power of millennials as well as generation Z are among the central factors contributing to the growth of jewelry.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2019 to 2022.
• Base Year: 2022
• Forecast Data until 2029.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• India Diamond Market Outlook
• Market Size of India Diamond Market, 2022
• Forecast of India Diamond Market, 2029
• Historical Data and Forecast of India Diamond Revenues & Volume for the Period 2019 - 2029
• India Diamond Market Trend Evolution
• India Diamond Market Drivers and Challenges
• India Diamond Price Trends
• India Diamond Porter's Five Forces
• India Diamond Industry Life Cycle
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Product for the Period 2019 - 2029
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Natural for the Period 2019 - 2029
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Synthetic for the Period 2019 - 2029
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Application for the Period 2019 - 2029
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Jewelry for the Period 2019 - 2029
• Historical Data and Forecast of India Diamond Market Revenues & Volume By Industrial for the Period 2019 - 2029
• India Diamond Import Export Trade Statistics
• Market Opportunity Assessment By Product
• Market Opportunity Assessment By Application
• India Diamond Top Companies Market Share
• India Diamond Competitive Benchmarking By Technical and Operational Parameters
• India Diamond Company Profiles
• India Diamond Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Application

Frequently asked questions about the market study (faqs):, what are the main drivers for the market growth, who are the leading market players, which application segment will grow in the market, which segments are covered in this market report, do you also provide customisation in the market study.

1 Executive Summary

2 Introduction

2.1 Key Highlights of the Report

2.2 Report Description

2.3 Market Scope & Segmentation

2.4 Research Methodology

2.5 Assumptions

3 India Diamond Market Overview

3.1 India Country Macro Economic Indicators

3.2 India Diamond Market Revenues & Volume, 2023 & 2030F

3.3 India Diamond Market - Industry Life Cycle

3.4 India Diamond Market - Porter's Five Forces

3.5 India Diamond Market Revenues & Volume Share, By Product, 2020 & 2030F

3.6 India Diamond Market Revenues & Volume Share, By Application, 2020 & 2030F

4 India Diamond Market Dynamics

4.1 Impact Analysis

4.2 Market Drivers

4.3 Market Restraints

5 India Diamond Market Trends

6 India Diamond Market, By Types

6.1 India Diamond Market, By Product

6.1.1 Overview and Analysis

6.1.2 India Diamond Market Revenues & Volume, By Product, 2023 - 2030F

6.1.3 India Diamond Market Revenues & Volume, By Natural, 2023 - 2030F

6.1.4 India Diamond Market Revenues & Volume, By Synthetic, 2023 - 2030F

6.2 India Diamond Market, By Application

6.2.1 Overview and Analysis

6.2.2 India Diamond Market Revenues & Volume, By Jewelry, 2023 - 2030F

6.2.3 India Diamond Market Revenues & Volume, By Industrial, 2023 - 2030F

7 India Diamond Market Import-Export Trade Statistics

7.1 India Diamond Market Export to Major Countries

7.2 India Diamond Market Imports from Major Countries

8 India Diamond Market Key Performance Indicators

9 India Diamond Market - Opportunity Assessment

9.1 India Diamond Market Opportunity Assessment, By Product, 2020 & 2030F

9.2 India Diamond Market Opportunity Assessment, By Application, 2020 & 2030F

10 India Diamond Market - Competitive Landscape

10.1 India Diamond Market Revenue Share, By Companies, 2023

10.2 India Diamond Market Competitive Benchmarking, By Operating and Technical Parameters

11 Company Profiles

12 Recommendations

13 Disclaimer

Latin America Diamond Saw Blade Market (2023-2029)

Latin America Diamond Tools Market (2023-2029)

Africa Diamond Market Outlook

Middle East Synthetic Diamond Market (2021-2027)

Africa Diamond Saw Blade Market Outlook

Africa Diamond Tools Market Outlook

Asia Pacific Synthetic Diamond Market (2021-2027)

Middle East Diamond Market (2021-2027)

Middle East Diamond Saw Blade Market (2021-2027)

Middle East Diamond Tools Market (2021-2027)

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Start Your Lab Grown Diamond Business Plan Today

Introduction:.

Lab-grown diamonds are revolutionizing the jewelry industry, offering a sustainable and ethical alternative to mined diamonds. With their identical physical and chemical properties, lab-grown diamonds provide an exciting opportunity for entrepreneurs looking to enter the diamond business. Discover the numerous advantages of choosing lab-grown diamonds as your next business venture and start your Lab Grown Diamond Business Plan today with us, be part of a growing market that values innovation and environmental consciousness.

The Benefits of Choosing Lab-Grown Diamonds as a Business Venture

Lab-grown diamonds offer several benefits for entrepreneurs looking to enter the diamond industry. Firstly, lab-grown diamonds are more affordable compared to earth-mined diamonds. This affordability makes them an attractive option for consumers who want the look and quality of a diamond without the high price tag.

Additionally, lab-grown diamonds have the same physical and chemical properties as natural diamonds, making them indistinguishable to the naked eye. This means that customers can enjoy the same sparkle and brilliance at a lower cost. Another advantage of lab-grown diamonds is their ethical and sustainable nature.

Unlike earth-mined diamonds, which are often associated with unethical mining practices and environmental damage, lab-grown diamonds are created in controlled laboratory settings using minimal resources. This appeals to consumers who prioritize sustainability and social responsibility in their purchasing decisions. Furthermore, lab-grown diamonds offer greater design flexibility. Since they can be created in various shapes, sizes, and colors, jewelry designers have more options when creating unique pieces.

This allows entrepreneurs in the lab-grown diamond business to cater to a wider range of customer preferences and tap into niche markets.

Other Advantages of Lab-Grown Diamonds:

Reduced environmental impact.

One of the key ethical advantages of investing in lab-grown diamonds is their reduced environmental impact compared to traditional mined diamonds. The process of mining diamonds involves extensive land excavation, deforestation, and water pollution. On the other hand, lab-grown diamonds are created in a controlled laboratory environment using minimal resources and energy. This significantly reduces the carbon footprint associated with diamond production.

Less Land Disruption

In traditional diamond mining, large areas of land are excavated to reach diamond deposits deep within the earth. This often leads to deforestation and the destruction of natural habitats for various species. In contrast, lab-created diamonds require no such land disruption as they are created in laboratories using advanced technology. By choosing lab-grown diamonds, investors can contribute to the preservation of ecosystems and biodiversity.

Water Conservation

Mined diamond production requires substantial amounts of water for various processes such as washing ore and separating minerals. This can put a strain on local water sources, especially in regions where water scarcity is already a concern. Lab diamonds, however, do not rely on excessive water usage during their manufacturing process. By opting for these diamonds, investors can support responsible water conservation practices.

Ethical Labor Practices

Another significant ethical advantage of investing in lab-grown diamonds is the assurance of ethical labor practices throughout the supply chain. Traditional diamond mining has been associated with issues such as child labor, unsafe working conditions, and exploitation of miners in certain parts of the world. Lab diamonds eliminate these concerns by being produced under controlled laboratory conditions without any human rights violations.

Fair Wages and Working Conditions

The production of lab-grown diamonds involves highly skilled scientists and technicians who work in safe laboratory environments. These professionals are typically paid fair wages and operate under regulated working conditions. By supporting man-made diamonds, investors can contribute to the promotion of ethical labor practices and ensure that workers involved in the diamond industry are treated fairly.

No Involvement in Conflict Diamonds

Conflict diamonds, also known as blood diamonds, are mined in war zones and sold to finance armed conflicts against governments. By investing in lab-grown diamonds, individuals can be certain that their money is not contributing to these unethical practices. Man-made diamonds have a transparent origin and are free from any association with conflict or human rights abuses.

Increasing Awareness and Concerns about Environmental Impact

One of the key factors driving the growth of the lab-grown diamond industry is the increasing consumer demand for sustainable and eco-friendly products. In recent years, there has been a significant rise in awareness and concerns about the environmental impact associated with traditional diamond mining. Consumers are becoming more conscious of the negative effects that mining activities have on ecosystems, including deforestation, habitat destruction, and water pollution.

How Lab-Grown Diamonds Have Gained Popularity in Recent Years

In recent years, there has been a significant increase in the popularity of lab-grown diamonds . One key factor driving this trend is increased consumer awareness about the environmental impact of traditional diamond mining. Earth-mined diamond mining often involves destructive practices such as deforestation, soil erosion, and water pollution. As consumers become more environmentally conscious, they are seeking alternatives that minimize harm to the planet.

Additionally, advancements in technology have led to improvements in the quality of lab-grown diamonds. Initially, lab-grown diamonds were seen as inferior to natural diamonds in terms of their color and clarity. However, with advancements in production techniques, lab-grown diamonds now offer comparable quality to earth-mined diamonds. This has helped overcome the stigma associated with lab-grown diamonds and increased their acceptance among consumers.

Furthermore, celebrities and influencers have played a significant role in popularizing lab-grown diamonds. Many high-profile individuals have embraced lab-grown diamonds and publicly advocated for their use in jewelry. Their endorsement has helped normalize the concept of lab-grown diamonds and make them more appealing to a wider audience.

In summary, the increasing popularity of lab-grown diamonds can be attributed to growing environmental consciousness, technological advancements, and celebrity endorsements. These factors have collectively contributed to a shift in consumer preferences towards sustainable and ethically sourced diamond alternatives.

What Sets Lab-Grown Diamonds Apart from Natural Diamonds in Terms of Quality and Value

Lab-grown diamonds are often compared to earth-mined diamonds in terms of their quality and value. While both types share similar physical characteristics, there are some key differences that set them apart.

•   Origin: Natural diamonds are formed deep within the Earth’s mantle over billions of years through intense heat and pressure. On the other hand, lab-grown diamonds are created in controlled laboratory environments using high-pressure high-temperature (HPHT), or chemical vapor deposition (CVD) methods.
• Clarity: Lab-grown diamonds tend to have fewer internal flaws or inclusions compared to natural diamonds due to the controlled growth process. This results in higher clarity grades for many lab-grown stones.
• Color: Earth-mined diamonds come in a wide range of colors, including rare fancy-colored varieties such as blue or pink. Lab-grown diamonds can also exhibit various colors but may be more readily available in certain hues due to the controlled growth process.
• Size: Lab-grown diamonds can be created in larger sizes than natural diamonds, as the growth conditions in a lab allow for more control over crystal formation. This makes lab-grown diamonds an attractive option for customers looking for larger carat weights at a more affordable price.
• Value: Lab-grown diamonds are typically priced at a lower cost per carat compared to natural diamonds. This is due to the shorter production time and lower mining costs associated with lab-grown diamonds. However, it’s important to note that the value of both types of diamonds can fluctuate based on market demand and other factors.

In conclusion, while lab-grown diamonds share many similarities with natural diamonds, differences in origin, clarity, color, size, and pricing set them apart. These distinctions allow consumers to have more options when choosing a diamond that aligns with their preferences and budget.

Changing Consumer Preferences Towards Ethical Jewelry

The rise of ethical consumerism:.

The growing interest in ethical consumerism has also played a significant role in influencing the growth of the lab-grown diamond industry. Today’s consumers are increasingly concerned about the ethical practices employed throughout the supply chain of products they purchase. This includes ensuring fair labor practices, avoiding conflict minerals, and supporting companies that prioritize social responsibility.

Transparency and Traceability:

Laboratory-grown diamonds provide consumers with a transparent and traceable alternative to traditional mined diamonds. With lab-grown diamonds, buyers can easily track their origin and ensure they are not contributing to unethical practices or human rights violations often associated with the diamond mining industry.

Support for Local Communities:

Another aspect that appeals to consumers is the potential positive impact on local communities. Lab-grown diamonds can be produced in regions where traditional diamond mining has had negative social and economic consequences. By supporting lab-grown diamonds, consumers can contribute to the development of sustainable industries that provide fair wages and safer working conditions for local communities.

The Process of Manufacturing Lab-Grown Diamonds

Manufacturing lab-grown diamonds involves a complex and fascinating process that harnesses the power of science and technology. The first step in producing these diamonds is to select a tiny diamond seed, which serves as the foundation for the growth process. These seeds are typically placed in a specially designed chamber that mimics the conditions found deep within the Earth’s mantle.

Chemical Vapor Deposition (CVD)

One method used to grow lab-grown diamonds is called Chemical Vapor Deposition (CVD) . In this process, a mixture of gases containing carbon is introduced into the chamber. These gases are then heated to extremely high temperatures, causing them to break down and release carbon atoms. The carbon atoms settle on the diamond seed, layer by layer, gradually growing into a larger diamond crystal over time.

Advantages of the CVD Method:

• Precise control over diamond growth
• Ability to produce large and high-quality diamonds
• Lower environmental impact compared to traditional mining
• Reduced reliance on labor-intensive mining practices

High Pressure-High Temperature (HPHT)

An alternative method for creating lab-grown diamonds is High Pressure-High Temperature (HPHT) . This technique involves placing a small diamond seed in a pressurized environment with temperatures reaching up to 2,500 degrees Celsius. Under these extreme conditions, carbon atoms begin to bond together and form new crystal structures, resulting in the growth of a larger diamond.

Benefits of the HPHT Method:

• Faster production time compared to CVD
• Ability to produce diamonds with specific colors or characteristics
• Cost-effective for certain applications, such as industrial use
• Allows for the creation of fancy-colored diamonds that are rare in nature

In conclusion, lab-grown diamonds can be created through various methods such as Chemical Vapor Deposition (CVD) and High Pressure-High Temperature (HPHT). These processes offer advantages like precise control over growth, reduced environmental impact, and the ability to produce large or unique diamonds. By understanding the science behind lab-grown diamonds, we can appreciate their value and potential in industrial and consumer markets.

Factors Affecting the Price of Lab-Grown Diamonds

Several factors influence the price of lab-grown diamonds, making them more affordable for consumers. Firstly, the cost of production is lower compared to earth-mined diamonds. Lab-grown diamonds are created in a controlled environment using advanced technology, which reduces mining and labor costs associated with extracting natural diamonds. Additionally, the supply chain for lab-grown diamonds is shorter and less complex, further contributing to their affordability.

Another factor that affects the price of lab-grown diamonds is their size and quality. Similar to natural diamonds, lab-grown diamonds are graded based on the 4Cs – carat weight, color, clarity, and cut. While larger and higher-quality lab-grown diamonds may still command a higher price, they generally offer better value for money compared to their natural counterparts.

The Diamond Disruption: Strategies for Lab Grown Diamond Business Plan Success

Building Awareness and Education

In order to effectively promote a lab grown diamond business plan to potential customers, it is crucial to build awareness and educate them about the benefits and uniqueness of these diamonds. One strategy is to collaborate with influencers or celebrities who can endorse lab-grown diamonds through social media platforms. By leveraging their following, we can reach a wider audience and generate interest in this alternative diamond option.

Additionally, hosting educational events or workshops can be a powerful way to engage potential customers. These events can include presentations by experts in the field, showcasing the science behind lab-grown diamonds and highlighting their ethical and environmental advantages. Providing attendees with informational brochures or pamphlets will further reinforce the key points discussed during the event.

Harnessing Social Media Platforms

Social media platforms have become essential marketing tools for reaching potential customers. Creating engaging content showcasing lab-grown diamonds’ beauty and quality is crucial on platforms such as Instagram, Facebook, and Pinterest. Collaborating with influencers who have an interest in sustainable fashion or eco-friendly products can also help increase brand visibility.

Using targeted advertising on social media platforms allows us to reach specific demographics that are more likely to be interested in lab-grown diamonds. By utilizing analytics tools provided by these platforms, we can identify trends and preferences of our target audience, tailoring our marketing messages accordingly.

Tactics for Engaging Customers

• Offering interactive quizzes or surveys on our website or social media pages can help potential customers understand their preferences when it comes to diamonds. This information can then be used to provide personalized recommendations for lab-grown diamond options that suit their style and budget.
• Implementing a referral program where existing customers receive incentives for referring new customers is an effective way to expand our customer base. Word-of-mouth marketing is powerful, and by rewarding customers for their referrals, we can encourage them to spread the word about lab-grown diamonds.
• Providing a virtual try-on experience on our website or through augmented reality apps can give potential customers a realistic preview of how lab-grown diamond jewelry would look on them. This interactive feature enhances the online shopping experience and increases the chances of conversion.

Limited Market Awareness and Acceptance

One of the main challenges associated with selling lab-grown diamonds is the limited market awareness and acceptance compared to earth-mined diamonds. Many consumers are still unfamiliar with lab-grown diamonds and may have misconceptions or concerns about their quality, value, and environmental impact. This lack of awareness can make it challenging for retailers to educate and convince potential customers about the benefits of lab-grown diamonds.

To overcome this challenge, companies selling lab-grown diamonds need to invest in marketing campaigns that raise awareness about these alternative gems. Collaborating with influencers, jewelry experts, and industry publications can help spread accurate information about lab-grown diamonds’ ethical production process, identical physical properties to natural diamonds, and often more affordable pricing.

Perceived Value and Resale Concerns

Another limitation associated with selling lab-grown diamonds is the perceived value by consumers. Some customers believe that natural diamonds hold a higher value due to their rarity and long-standing tradition as a symbol of luxury. This perception can make it difficult for sellers to convince potential buyers that lab-grown diamonds offer comparable beauty and durability at a more accessible price point. Since the market for reselling lab-grown diamonds is still developing, some individuals worry about the potential depreciation in value over time.

Nevertheless, their initial cost savings often outweigh the potential differences in resale value, appealing to buyers looking for both affordability and ethical purity in their diamond choice. 

Production Scalability

The scalability of lab-grown diamond production poses both limitations and challenges for sellers in meeting increasing demand. While technological advancements have made it possible to produce larger quantities of lab-grown diamonds, there are still constraints on scaling up production to match the demand for these gems.

Companies need to invest in research and development to improve production efficiency and increase output without compromising quality. This may involve optimizing growth processes, enhancing equipment capabilities, and streamlining supply chain logistics. Collaborating with experts in materials science and engineering can help overcome the challenges associated with scaling up lab-grown diamond production.

Differentiating from Synthetic Gemstones

Lab-grown diamonds face the challenge of differentiating themselves from other synthetic diamonds, such as cubic zirconia or moissanite, which are often marketed as diamond alternatives. While lab-grown diamonds share similar chemical composition and physical properties with natural diamonds, consumers may not be aware of these distinctions.

Sellers must educate potential buyers about the unique characteristics that set lab-grown diamonds apart from synthetic diamonds . This can include highlighting their identical optical properties, hardness on the Mohs scale, and certification standards that distinguish them as genuine diamonds. Providing clear labeling and certifications can help build trust among customers who seek authentic lab-grown diamonds over other synthetic alternatives.

Competitive Pricing Pressure

The competitive pricing pressure within the diamond industry is another challenge faced by sellers of lab-grown diamonds. Earth-mined diamond producers have historically dominated the market and established pricing structures based on rarity and perceived value. Lab-grown diamonds disrupt this traditional pricing model by offering a more cost-effective alternative.

To compete effectively, sellers of lab-grown diamonds must navigate price positioning strategies that emphasize affordability without compromising quality or profitability. They need to educate customers about the significant price difference between natural and lab-grown diamonds while highlighting the shared beauty and durability aspects that make both options desirable.

The Resale Value of Lab-Grown Diamonds Compared to Natural Diamonds and Factors Influencing It

Factors affecting the resale value of lab-grown diamonds.

Lab-grown diamonds have gained popularity in recent years due to their ethical and sustainable production methods. However, when it comes to resale value, there are several factors that can influence the price a lab-grown diamond can fetch.

Market Demand:	The demand for lab-grown diamonds plays a crucial role in determining their resale value. Currently, lab-grown diamonds constitute a smaller portion of the overall diamond market compared to earth-mined diamonds. As consumer awareness and acceptance of lab-grown diamonds increase, so does the demand for them. Higher demand generally leads to better resale value.
Quality and Certification:	Just like natural diamonds, the quality of a lab-grown diamond greatly impacts its resale value. Factors such as color, clarity, cut, and carat weight determine the overall quality and desirability of the stone. Additionally, having proper certification from reputable gemological laboratories adds credibility and can positively impact the resale value.
Brand Reputation:	The reputation of the brand or manufacturer behind the lab-grown diamond can also influence its resale value. Established brands with a track record of producing high-quality lab-grown diamonds may command higher prices in the secondary market compared to lesser-known or generic brands.

The Resale Value Comparison: Lab-Grown vs Natural Diamonds

When comparing the resale value of lab-grown diamonds to natural diamonds, some key differences arise.

Rarity:	Natural diamonds are formed over millions of years under intense pressure and heat deep within the Earth’s crust, making them rare and highly sought after. This inherent rarity contributes to their higher resale value compared to lab-grown diamonds, which can be produced in a matter of weeks.
Perceived Value:	Traditional consumers often perceive natural diamonds as having more value and desirability due to their long-standing association with luxury and romance. This perception can impact the resale value, as some buyers may be willing to pay a premium for a natural diamond over a lab-grown one.
Market Dynamics:	The diamond market is complex and influenced by various factors such as supply and demand, economic conditions, and industry trends. Natural diamonds have an established market with well-defined pricing mechanisms, while the lab-grown diamond market is still evolving. This difference in market dynamics can affect the resale value of each type of diamond.

Advancements in Technology and Production Techniques

Improvements in diamond growing processes.

Technological advancements have significantly improved the efficiency and quality of lab-grown diamond production. Innovations such as chemical vapor deposition (CVD) and high-pressure high-temperature (HPHT) methods have made it possible to grow larger, higher-quality diamonds at a faster rate. These advancements have also led to increased color options, allowing lab-grown diamonds to be produced in various shades beyond traditional white.

Innovation in Cutting and Polishing Techniques

Alongside improvements in diamond growing processes, there have been innovations in cutting and polishing techniques specific to lab-grown diamonds. As these stones exhibit different properties than natural diamonds, specialized cutting techniques have been developed to maximize their brilliance and fire. This ensures that lab-grown diamonds can achieve the same level of beauty as their mined counterparts, further enhancing their desirability in the market.

Expanding Market Presence and Consumer Acceptance

Growing availability and affordability.

As the lab-grown diamond industry continues to mature, there has been a significant increase in the availability and affordability of these diamonds. More companies are entering the market, offering a wider range of lab-grown diamond options to consumers. This increased competition has led to price reductions, making lab-grown diamonds more accessible to a broader customer base.

Shift in Consumer Perception

There has been a notable shift in consumer perception towards lab-grown diamonds. Initially viewed as an inferior alternative, lab-grown diamonds are now being recognized for their unique advantages and qualities. As awareness about their sustainability, ethical sourcing, and technological advancements spreads, consumers are becoming more accepting of lab-grown diamonds as a desirable choice for fine jewelry. The growing acceptance of these diamonds is reflected in their increasing popularity among millennials and environmentally conscious buyers.

Overall, these trends and innovations are shaping the future of the lab-grown diamond industry by driving demand through sustainable and ethical considerations, advancing technology for improved production techniques, and expanding market presence while gaining consumer acceptance.

Expanding into Emerging Markets

Identifying opportunities in developing economies.

The lab-grown diamond business has immense potential for growth by tapping into emerging markets. These markets, primarily located in developing economies, offer a significant customer base that is increasingly becoming more aware of the benefits and ethical considerations associated with lab-grown diamonds. By identifying these opportunities, companies can strategically position themselves to capture market share in regions such as Asia, Africa, and South America.

Key Strategies:

– Conduct thorough market research to understand the preferences and purchasing power of consumers in emerging markets.

– Establish partnerships with local retailers or distributors to gain access to distribution channels.

– Customize marketing campaigns and messages to resonate with the cultural values and aspirations of customers in specific regions.

Addressing Affordability Concerns

Why consumers choose affordable lab-grown diamonds.

One major advantage of lab-grown diamonds is their comparatively lower price point than natural diamonds. However, affordability remains a concern for many potential customers, especially in emerging markets where price sensitivity is high. To expand into these markets successfully, it is crucial to address this concern by implementing pricing strategies that make lab-grown diamonds more accessible.

– Offer flexible financing options or installment plans to make purchasing lab-grown diamonds more affordable for customers.

– Introduce entry-level product lines or smaller carat sizes at competitive prices.

– Educate consumers about the long-term value proposition of lab-grown diamonds compared to natural diamonds.

Targeting Specific Customer Segments

Capturing Millennial Consumers

Millennials are an important target demographic for the lab-grown diamond business due to their increasing influence on consumer trends and their preference for sustainable and ethically sourced products. To effectively capture this segment, companies need to understand their unique preferences and tailor their marketing efforts accordingly.

– Leverage social media platforms and digital marketing techniques to reach and engage with millennial consumers.

– Highlight the eco-friendly and conflict-free aspects of lab-grown diamonds in marketing campaigns.

– Collaborate with influencers or brand ambassadors who align with millennial values to promote lab-grown diamonds.

Meeting the Demand for Customization

Another customer segment that can be targeted in the lab-grown diamond business is those seeking personalized and customizable jewelry. By offering a wide range of design options and customization features, companies can cater to this demand and differentiate themselves from competitors.

– Develop an online platform or tool that allows customers to design their own lab-grown diamond jewelry.

– Collaborate with renowned designers or offer partnerships with jewelry customization experts.

– Provide a diverse selection of settings, metals, and gemstone combinations to suit individual preferences.

Mentorship Programs

In addition to industry associations, mentorship programs play a crucial role in supporting new businesses within the lab-grown diamond industry. These programs connect experienced professionals with aspiring entrepreneurs or startups to provide guidance, advice, and support based on their own experiences.

Mentors can share valuable insights into navigating challenges specific to the lab-grown diamond sector, such as sourcing raw materials, establishing supply chains, or marketing strategies. By leveraging the knowledge and expertise of mentors who have already succeeded in this business realm, new businesses can gain a competitive advantage and avoid common pitfalls.

Benefits of Mentorship Programs:

– Access to experienced professionals who have already achieved success in the lab-grown diamond industry

– Guidance on strategic decision-making tailored specifically for lab-grown diamonds

– Insights into best practices for sourcing raw materials ethically and sustainably

– Assistance with developing effective marketing and branding strategies

Conclusion:

Choosing lab-grown diamonds for your next business venture is a smart move due to their affordability, ethical production, and increasing popularity. Lab-grown diamonds offer high-quality, sustainable jewelry that appeals to environmentally conscious consumers. With advancements in technology and celebrity endorsements, lab-grown diamonds have gained significant traction in the market. Their comparable quality to natural diamonds, combined with lower prices and greater design flexibility, make them an attractive option for entrepreneurs looking to tap into the diamond industry.

Choosing lab-grown diamonds for a business venture can offer numerous advantages, making it a smart move for entrepreneurs. Opting for lab-grown diamond wholesale provides cost savings and allows businesses to offer competitive pricing to customers. Lab-grown diamonds are also considered a smarter investment choice compared to natural diamonds due to their lower price and potential for higher resale value in retail space.

These diamonds have become increasingly popular in recent years, driven by growing consumer demand and ethical considerations. Additionally, lab-grown diamonds are environmentally friendly and contribute to the reduction of conflict diamonds. They maintain the same quality as natural diamonds and meet consumer demands in terms of quality, affordability, and aesthetics.

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Diamond Retailer Business Plan

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Rocks by Request

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Purchasing an engagement ring could be a hassle, especially for those who know little about diamonds. Current studies indicate that there are 1.7 million engagement rings purchased per year in the United States (74% of brides, from 2.3 million weddings), with an average expenditure of approximately $2,000 per diamond engagement ring.

With the revolution in connectivity and interactivity through the Internet, potential buyers can learn more about the characteristics of diamonds they intend to buy before going to jewelers. In this case, we solve that very problem of “knowing so little” about the characteristics of the merchandise. People can now learn and gather information before they actually going to their family/neighborhood jewelers to purchase diamonds.

Learning and gathering information on the Internet is not what the online retailers want. They want the learning and gathering process to translate into sales. However, selling diamonds online is not the same as selling books online. People want to see the actual merchandise before buying. “What happens if the brilliance of the diamond shown on the Web is actually lower than in the one I purchased?”

It is the question of how to leverage “high-touch” among the high-end dot-com retailers. While others engaging in low-end jewelry items have been primarily pushing the quantity sold, we struggle to find the right formula to bring these high-end loose diamonds to consumers.

Rocks by Request (RBR) is the answer to this. RBR was established in the Bay Area three years ago, by a third-generation jeweler, Rock Stone. After its three-year operation, RBR is planning to expand its operations outside the state of California. The RBR concept is quite simple, leveraging local jewelers as its “front-end.” Through this strategy, RBR answers both “credibility” and “high touch” issues in selling its high-end merchandise via the Internet.

RBR is positioning itself differently in the aftermath of the dot-com bust. While maintaining connectivity, interactivity, and speed, RBR will also “humanize” e-commerce by combining both technology and tradition in diamond retail industry.

In this strategic plan, we describe how to further optimize the connectivity, interactivity, and speed in developing recommendations for RBR’s new business strategy.

1.1 Objectives

• To develop an additional course(s) of action, recommendation, and change(s) to RBR’s current strategy in order to expand the market share in the loose diamond e-tailing industry.
• To advise RBR of industry insights and market trends in the diamond business, provide a psychographic study of the current and potential engagement market, and describe the competitive landscape of this business.

1.2 Mission

Our mission is to expand our current 2% market share to a greater portion in online diamond retail. When we look at the diamond retailing industry itself, the current 2% is rather low compared to the number of diamonds sold yearly in the United States. In order to meet the growth criteria, RBR must extend its network of jewelers and strengthen alliances with media and Internet vendors, as well as increase its R&D effort to deliver the latest technology in e-commerce.

1.3 Keys to Success

Some of the key factors that will help RBR expand its operations include:

• Extending its network of family jewelers across the U.S. and globally.
• Setting up additional warehouses to meet the needs.
• Improving logistic/supply chain that enables fast delivery and return.
• Repositioning the look of the current website by upgrading 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.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Rocks by Request (RBR) is different from other e-business diamond retailers. Most of them are brokers, which means that they go to the diamond wholesalers (who buy from cutters) and give each wholesaler a back-end password to update their inventory. RBR purchases its diamonds, which gives us control over the merchandise, such as the flexibility to ship the diamond to local jewelers, while most of the competitors are in consignment agreements with stone cutters to distribute the loose diamonds.

RBR uses a combination of cyberspace and traditional methods for its business model. The purpose is to leverage a “high touch” perception, which is the main “show” in the diamond business. RBR also applies a slightly different approach from other hybrid Internet companies, by using local stores across California as its “front-end” to its customers; most of them own the brick-and-mortar as well as the Internet business.

The business model is appealing for local jewelers who are aware of the importance of e-commerce but are unsure how to use it to expand their business. The RBR model benefits both RBR and local jewelers participating in the program by using the strengths of each. RBR obtains customers in different geographical areas, and the local jewelers widen their customer base, while generating more revenue.

2.1 Company History

Rocks by Request was established in three years ago as an answer to the dot com re-invention. Rock Stone, the visionary behind the brand, created a fusion of traditional brick-and-mortar concept with the touch of connectivity. Mr. Stone did not merely extend the family business, but transform it into the business of the future. The initial funding was partially from Mr. Stone’s savings and from father’s company, including the a substantial number of loose diamonds. After showing a promising growth in three year of operation, Mr. Stone is optimistic that his business will grow further into a world class venture through own financing. He realizes that marketing is the key to “pull” the interest of people to try, as well as expanding distribution outlet by cooperating with local jewelers.

Unlike other e-commerce that involves in selling diamonds online, RBR has a unique approach in establishing its identity. First, RBR does not operate the dot-com’s “virtual store” like the Blue Nile, Diamonds.com, and the rest of e-tailers in the industry. And second, RBR does not identify itself with the dot-com revolution, but as the traditional wholesaler that goes connected with the new economy, of course with the help of the Internet, RBR can now enter the retailing arena in selling diamonds to end consumers.

Past Performance
	2003	2004	2005
Sales	$3,300,000	$3,630,000	$3,993,000
Gross Margin	$1,320,000	$1,452,000	$1,597,200
Gross Margin %	40.00%	40.00%	40.00%
Operating Expenses	$900,000	$900,000	$900,000
Inventory Turnover	0.00	0.00	7.99
Balance Sheet
	2003	2004	2005
Current Assets
Cash	$3,080,000	$2,752,000	$2,287,000
Inventory	$0	$0	$600,000
Other Current Assets	$600,000	$200,000	$30,000
Total Current Assets	$3,680,000	$2,952,000	$2,917,000
Long-term Assets
Long-term Assets	$0	$0	$0
Accumulated Depreciation	$0	$0	$0
Total Long-term Assets	$0	$0	$0
Total Assets	$3,680,000	$2,952,000	$2,917,000
Current Liabilities
Accounts Payable	$260,000	$200,000	$120,000
Current Borrowing	$0	$0	$0
Other Current Liabilities (interest free)	$0	$0	$0
Total Current Liabilities	$260,000	$200,000	$120,000
Long-term Liabilities	$0	$0	$0
Total Liabilities	$260,000	$200,000	$120,000
Paid-in Capital	$3,000,000	$2,200,000	$1,500,000
Retained Earnings	$420,000	$552,000	$1,297,000
Earnings	$0	$0	$0
Total Capital	$3,420,000	$2,752,000	$2,797,000
Total Capital and Liabilities	$3,680,000	$2,952,000	$2,917,000
Other Inputs
Payment Days	30	30	30

2.2 Company Ownership

The company is privately held. The Managing Director of RBR is a third-generation diamond trader, and has already established long-term relationships with local jewelry stores and end customers, some of whom are the third generation of patrons and long-time family clients. In the next growth installment, RBR is open to selling portions of the company’s ownership to investors.

2.3 Company Locations and Facilities

RBR also operates a warehouse equipped with state-of-the-art technology that enables quick processing in delivering and returning the loose diamonds to and from partner jewelers.

The employees working at the warehouse include four controllers, who are responsible in finance and accounting, one programmer (who also maintains IT), one buyer who goes out to diamond cutters and selects the products for inventory, and one sales person.

RBR’s main product is loose diamonds, from emerald-cut to round-cut diamonds, with brilliant color and V VS 1, meaning Very, Very Slightly Included, or an excellent quality diamond. All of RBR’s diamonds are GIA certified (Gemological Institute of America™) with laser inscription inside. RBR was positioned as a diamond wholesaler rather than a retailer in the past. RBR had been supplying local jewelers in the area for more than twenty years and maintained very strong relationships.

In the diamond business, we determine the price of a diamond according to the “4C” criteria:

Clarity: The most expensive diamond is the one that is absolutely clear in clarity, but many of them have inclusions (scratches or trace minerals) that can detract from the pure beauty of the diamond. Clarity has several categories that affect the price of a diamond: FL (Flawless, no internal/external flaws), VVS1, VVS2 (Very, Very Slightly Included, an excellent quality of diamond), VS1, VS2 (Very Slightly Included, not visible to the eye), S1, S2 (Slightly Included, may be visible to the eye), I1, I2, I3 (Included, the lowest grades of clarity). RBR does not carry the last two clarity grades in its inventory.

Color:  A diamond can divide light into a spectrum of colors, and reflect light as more or less colorful, depending on the color grade. The less color in a diamond, the better the color grade. Color grades are categorized into D (absolutely colorless, the highest color grade), E (colorless, only traces of color and only detected by gemologists), F (colorless, slight color detected, still a high quality diamond), G-H (near colorless, color noticeable, but still an excellent value), I-J (near colorless, color slightly detectable), K-M (low grade color), N-Z (low grade color). RBR does not carry the last three color grades in its inventory to maintain a good selection of diamonds.

Cut: The roundness, depth, width and uniformity of the facets determine a diamond’s brilliance. Cut is the most important characteristic of a diamond; even with perfect color and clarity, a poor cut will affect its brilliance.

Carat: The weight of a diamond. In the engagement-ring market today, usually the “dowry” is around 1 carat and above.

3.1 Product Description

RBR carries various diamond shapes in its inventory:

• Round, with a price ranging from $360 to $970,000 depending on the 4Cs. 
• Princess, with a price ranging from $370 to $200,000 depending on the 4Cs. 
• Emerald, with a price ranging from $270 to $550,000 depending on the 4Cs. 
• Asscher, with a price ranging from $500 to $300,000 depending on the 4Cs. 
• Marquis, with a price ranging from $615 to $500,000 depending on the 4Cs. 
• Oval, with a price ranging from $460 to $240,000 depending on the 4Cs. 
• Radiant, with a price ranging from $470 to $512,000 depending on the 4Cs. 
• Pear, with a price ranging from $460 to $1,150,000 depending on the 4Cs. 
• Heart, with a price ranging from $570 to $280,000 depending on the 4Cs. 
• Cushion, with a price ranging from $895 to $480,000 depending on the 4Cs. 

In addition to our selection of fine diamonds, we also carry signature items made exclusively for RBR. These collections include the world’s finest round-cut diamonds and emerald-cut diamonds, which are rare.

3.2 Sales Literature

In addition to the interactive website, we also publish an annual diamond catalog that is distributed throughout our network of local jewelers. The catalog includes the diamond report and information regarding the 4Cs (Carat, Clarity, Color, Cut) of the merchandise. The names and addresses of RBR’s network jewelers will also be printed in the annual diamond catalog.

This catalog is also available for customers by filling out a request form that is available through the website, free of charge.

3.3 Sourcing

RBR has an already long-term relationship with several diamond cutters in the world, such as Levy Diamond Cutters Inc. (Israel),  and Schumacher Diamond Cutters Inc. (Antwerp, Belgium). The relationship of RBR and these diamond cutters is traced back to the owner’s father, who has purchased loose diamonds directly from these sources since 1970.

3.4 Future Products

As the company expands, it requires a new product category to increase its sales volume. Other players in the game (Diamonds.com and BlueNile) have been enjoying the growth of its popular trinkets sales, in addition to setting sales. Although RBR has been focusing on loose diamonds in the past three years, the company now realizes the importance of variety and options. Customers want not only an excellent quality of diamond but an extraordinary design setting for themselves and their loved ones.

3.5 Technology

RBR uses a hybrid of traditional brick-and-mortar with Internet connectivity, utilizing local jewelry stores to participate in leveraging the “high touch” aspects of diamond shopping.The technology model is quite simple. An eye-catching front-end, to capture the attention of the customers, and logistics back-end to expedite the delivery of the merchandise to our network of local jewelers in the area.

How does it work? For example, one customer is interested in seeing and examining a diamond for an engagement ring. After selecting up to two diamonds and setting up an appointment with a jeweler, merchandise is then shipped within 24 hours (if the order was placed before the cut-off time of 4 PM). RBR notifies the jeweler via e-mail for an appointment. Sales will be made on the spot.

This dynamic relationship of course does not come easily, although it is true that local jewelers basically have less risk or maybe no risk compared to RBR in building the partnerships. In our city, there is only one jeweler who currently participates in the RBR’s program. In the greater local area, there are only four jewelers who participate.

Location selection is another problem that needs to be solved by the strategic decision-makers at RBR. In our city, the participating jeweler is located far from the classic downtown area where most of the upscale jewelers are located. Again, the scarcity of jewelers that are willing to participate in the program is the main reason. To increase RBR’s strategic infrastructure business, it needs to continue adding local jewelers into its selection, within the main shopping vicinity, not outside.

Market Analysis Summary how to do a market analysis for your business plan.">

We divide the market into “Future Grooms,” “Suburban Husbands,” and “Young Working Women.” Men will be our priority target because according to our research, “surprise factor” is still what makes the engagement ring market flourish in the U.S. Engagement rings are considered an essential investment in any marriage proposal in the U.S. Also, thanks to De Beers’ recent campaign, we can now easily market the three-diamond anniversary ring to the audience.

4.1 Market Segmentation

Judging from the income, we concluded that most of these men are computer literate, of course connected to the Internet, and living a bachelor’s lifestyle, probably engaging in high profile sports, such as rock climbing and skiing.

We also include sports car in their life, supposing the mid 30s bachelor’s lifestyle. They are likely to be active people with cruising as parts of their daily plan. They do not tend to be extra price-sensitive. With this psychographic profile of our audience, we can develop some recommendations for RBR’s strategy.

The “Suburban Husbands” are a slightly older demographic than the previous segment, consisting of men from age 32 to 55, with annual incomes above $80,000, living in the suburbs. Most of these men are already going for their fifth year wedding anniversary. In the celebration of their marriage, many of them are “tangled” with the idea of the three diamond ring (past-present-future). As romantic as it sounds, these suburban husbands are spending more than $5,000 on an anniversary ring for the occasion.

The third category is “Young Working Women.” As women are now becoming the majority of Web surfers, due to the popularity of women’s community websites, such as iVillage and so forth, they represent the strength in e-tailing. Women pay more attention to detail than men do. In choosing their diamonds, women would like to see firsthand before charging the bill to their credit cards. Now, with the option to examine the diamond at their nearest jewelers, RBR is perhaps the one and only destination for women purchasing diamond jewelry on the Internet.

Market Analysis
		2006	2007	2008	2009	2010
Potential Customers	Growth						CAGR
Future Grooms	20%	1,700,000	2,040,000	2,448,000	2,937,600	3,525,120	20.00%
Suburban Husbands	20%	900,000	1,080,000	1,296,000	1,555,200	1,866,240	20.00%
Young Working Women	20%	350,000	420,000	504,000	604,800	725,760	20.00%
Total	20.00%	2,950,000	3,540,000	4,248,000	5,097,600	6,117,120	20.00%

4.2 Target Market Segment Strategy

RBR has been focusing on the “Future Grooms” market since 2002. The main reason behind the selection of this target segment is that the engagement ring market has been the largest segment in diamond purchasing in the U.S. for the last three decades. In a partriarchal tradition, men offering their marriage proposal usually accompany it with a gift. The gift has to represent something that is valuable to both families or parties. In Western culture, a diamond ring fulfills this “value” requirement both by its monetary value, and its sentimental or romantic associations. A diamond ring is so connected to the idea of engagement that it in itself can signify the proposal; simply by presenting a diamond ring, men in the U.S. make an offer of marriage.

This had been the focus of RBR’s marketing campaign. RBR emphasized loose diamonds, meaning that the company let customers choose various settings from their own trusted jewelers. Loose diamonds are attractive to RBR’s main target segment, as they are simple and do not require customers to limit themselves to what setting is available from the merchant. For instance, if the customer does not find the setting he likes at one jeweler, he can go to other RBR-partnered jewelers to find the exact setting required.

The female target market segment had been showing a significant growth in the last three years. This trend has contributed to the RBR’s expansion plan by adding innovative setting design into the sales strategy.

4.2.1 Market Needs

Recognition and Exclusivity Selling diamonds is the same as selling image, individuality, and luxury. At traditional jewelers’ shops, many customers want their engagement rings to be unique, custom-made, the one-and-only . Future brides would not want their rings to be generic. Traditional jewelers made this possible by building close relationships with their customers who probably know them through word of mouth or family networks. Bride and groom could spend hours and hours to make sure the design is fabulous.

Security/Absence of Fear Trust is the key to achieve customers’ assurance in purchasing diamonds from RBR. The relationship between RBR and its customers begins with customers who go to the website and find out about the company and how to deal with the company. The part with the words “no money down” and “no obligation” is the starting point in establishing trust, along with “money-back guarantee,” as claimed by other diamond e-tailers. It is as fundamental as traditional jewelers when they say, “Look around and take your time.” 

Love A diamond engagement ring represents love in a material form. And this is an exclusive love, which can only be represented in one unique diamond.

4.2.2 Value

The basic idea for RBR’s e-commerce strategy is to sell loose high quality diamonds at wholesale prices. It is essential to motivate customers with high buying power in getting the best value for their money, without depreciating the character of the merchandise.

So, how are we going to sell a high quality diamond at the best price offered (wholesale price), and at the same time not cheapen the image of our company?

The answer is exclusivity. As we know, customers who are in the market of buying an engagement ring are concerned with appearances. Men want to look good by giving their fiancee the best quality diamond ring. No one wants to give his fiancee a diamond ring from a wholesaler, warehouse or cheap outlet. So, upper echelon retailer is the answer. This is where Blue Nile, Diamonds.com and RBR come in, presenting themselves as upper-end retailers, instead of wholesalers. With a good and “high-end” look on the front-end website, we transformed the personality of the companies into high-end retail.

How does an e-commerce business support the high-touch feature in selling high-end product such as diamonds? Unless we have a total virtual reality environment, the high-touch feature can still be done by utilizing the real (physical) store as the interface to see and touch the diamond. There is nothing that can surpass this combination. Customers can select online, then inspect their selection physically, when RBR ships the maximum of two diamonds to local jewelers in the area.

Credibility

Other diamond e-tailers on the Web today do not come from generations of credible jewelers. Most of them are publicly traded companies, such as BlueNile (listed on NYSE), or an extension of existing brand such as Mondera. RBR offers a unique blend of technology and old tradition in diamond buying. Offering a convenience of local jewelers and the efficiency of high tech era. These two factors are the keys to success in the aftermath of the dot com era.

4.2.3 Market Growth

As the baby boomer generation retires in the near future, the demographic landscape in the U.S. is changing; Generation X (born between 1963 to 1979) is beginning to make up the largest working class in the nation. Often portrayed by the media as cynical, extreme-sports lovers, and body piercing slackers, Generation X (now roughly 22 to 36) is actually characterized by independent, career-minded, and technology-savvy young adults.

More and more Generation Xers are now getting married, or are planning to do so soon. With more than enough disposable income, they are gaining the majority of purchase power in the U.S.

4.3 Industry Analysis

The diamond market itself is fragmented (signified by the volume of vendors targeting “mass” market) and seasonal, during holidays in particular, when gift-giving traditionally takes place. As many vendors are now offering almost similar products, customers want more than just a mere solitaire diamond ring, they want innovative design with their 1 carat, round-cut engagement ring. The market is divided into three echelons: premium end, middle end, and low end. The premium end is dominated by top brands such as Tiffany & Co., Cartier, Bvlgari, and most of the European diamond retailers. The middle end is dominated by Zales and other local jewelers, while the low end market is being distributed to “mass” retailers such as Costco Jewelry or Wal-Mart Jewelry.

Online diamond retail also has different categories, parallel to the brick-and-mortar stores. BlueNile is typical of the upper-echelon vendor for high-end online diamonds, while Best Gem targets mostly middle end customers.

RBR only deals in the upper echelon of high quality diamonds, with an average sale of $3,500 per loose diamond.

Our initial target is the top 35% of the diamond market, including the top ten percent of upper-echelon buyers, for total sales of 250,000 diamonds per year. We will also market to the 50% of buyers in the mid-echelon, as they will eventually shift their buying from chain jewelers to high-end engagement diamonds.

25% of the total online diamond sales are currently held by Blue Nile. Diamonds.com is second, with 12% market share. RBR and other players share the remaining 63% of the online market.

4.3.1 Distribution Patterns

The products (diamonds) move from diamond mines to diamond cutters, then either directly to large retailers, or to wholesalers, who further distribute them to smaller retailers (mom and pop jewelry shops).

In short, major jewelry stores could sell much cheaper diamonds than the mom-and-pop shops, as they purchase larger quantities than their local counterparts. However, the mom-and-pop jewelry shops do consignment sales with their diamond suppliers to compete with large jewelry chains.

Customers who already have a long-term relationship with their local stores usually trust their local jewelers more than the large brands. The consignment business strategy had enabled mom-and-pop jewelry stores to compete with large, middle-end diamond retailer giants such as Zales Corporation.

4.3.2 Competition and Buying Patterns

As mentioned in earlier chapters, RBR has a fierce competition in the online diamond retail area, but competition is just as strong in the traditional brick-and-mortar market. Big names such as Tiffany & Co., Zales Jewelers, and Cartier currently dominate the high-end diamond market in the U.S.

In 2001, Tiffany & Co. sales had reached $1.6 Billion, while Cartier and Zales had reached $3.2 Billion and $2.8 Billion, respectively. All three of the major players have their presence online (and ship worldwide), which is a major threat for RBR and other online diamond retailers. With multiple brick-and-mortar locations around the world, Tiffany & Co., Cartier, and Zales are sure to continue dominating the diamond business for the next decade.

However, new opportunities are opening up for online sales. Thanks to the government intervention in online fraud and e-commerce policy, more customers are now confident in the safety of purchasing via the Internet. Customers are using these online stores as an alternative, to access good value for their diamonds, rather than buying the top-tier, overpriced diamond brands.

4.3.3 Main Competitors

There are several players in the diamond e-tailing market today. Some of the big players are www.diamonds.com, www.bluenile.com, www.diamond.com (an Odimo company), www.mondera.com and www.bestgem.com. These companies are similar in their fine quality of products, GIA Certification, and warranty in their diamond selections. The scope of this analysis is the slight and unique differences in their business strategies gaining share in the online diamond markets.

Diamonds.com

The company’s product lines are not limited to loose diamonds. Business strategy used is similar to those traditional brick-and-mortar jewelry stores with a “touch” of e-business’ connectivity, interactivity, and speed. Product lines offered on the website vary from rings to earrings, which can later be set with customers’ diamond selections, or without if customers wish to buy just the settings.

The website offers the convenience of online shopping with features such as “proceed to checkout” and “shipping method.” Like most e-tailers and direct competitors, a toll free number is listed at the bottom right corner to assist customers with questions and concerns from 9 – 5, Monday – Friday. If customers hesitate to call in, Diamonds.com also offers FAQ and e-mail addresses of different departments, such as general inquiry and sales. In addition, it displays the BBB (Better Business Bureau), JVC (Jewelers Vigilance Committee), and Trust-E endorsements to enhance customers’ trust in the business and site.

A new feature, “Create your own,” is still under construction that will enhance high-touch aspects, as customers will later interact with the website in the customization of their orders. “Special Request” button is also available for customers who could not find specific merchandise online and need assistance in finding them.

Diamonds.com is currently opening its online financing program for greater purchasing options. Sizing and repairs are also available from time to time, as customers may need to reset their stones or clean their jewelry. Since it does not state an affiliation with local jewelers, as RBR does, sizing and repairs are probably done with prior arrangement made by the company’s customer service department.

Currently, Blue Nile is largest online diamond seller in the market, with gross revenue of $50 million USD yearly; 30% of sales are from loose diamonds. The company is publicly owned with high capital to be spent on advertising campaigns.

Blue Nile carries more product lines than its competitors, not limited to rings, necklaces, earrings, and other jewelry related products, but also including apparel and accessories, such as watches, pens, key rings, and money clips.

Similar to Diamonds.com, Blue Nile also offers the convenience of online shopping with its checkout and shipping method features. Its “build your own ring” feature is similar to Diamonds.com’s future “Create your own,” where customers can choose their rings and virtually set their diamond selections into them in order to see what the final product would look like.

The website has more features than its competitors, such as Gift Ideas, a suggestion site for special events in order to attract customers to not only look, but book. Blue Nile’s online personality maintains a  “classy” look and strong brand, enhanced by the website’s technical capabilities. As brand is the name of the game in today’s new economy, Blue Nile has developed a logo that represents the company with the “B” inside two symmetrical “N”-shaped boxes.

Loose diamonds are mostly made customized for Blue Nile. Financing is also available to give customers more purchasing power in shopping with Blue Nile.

Diamond.com

Under its parent company (Odimo Inc., formerly known as DiamondDepot.com), Diamond.com has maintained its presence among competitors in the online diamond retail.

Similar to Diamonds.com in character, Diamond.com offers a slightly wider product range, with its collection of watches. Most of its online features are similar to both Diamonds.com and Blue Nile. It has a highly interactive, design-your-own ring feature on the website like the others, although it is almost hidden, which will show the feature only after you select your diamond.

On the other hand, Diamond.com does offer a tracking feature of customers’ order like most e-tailers, such as Amazon.com and Barnes & Noble. This is an advantage, particularly in dealing with first time customers who are eagerly awaiting the merchandise from their expensive online purchases. According to one study, tracking systems in online retailers would enhance customers’ trust by providing an estimated time of arrival for the merchandise.

Repairs could be performed by filing out an online form, which must be sent out, along with the products, to its corporate office.

One distinct feature is that the company ships the merchandise to limited countries outside the United States, whereas the others mostly serve only the U.S.

All of its loose diamonds come from its own inventory, to avoid conflict if more than one customer accesses the site and wants the same diamond in the database. However, the down side of it is that the company does not display its own diamonds from the inventory, instead using generic types of graphic to show its collection. This strategy will create a doubt in customers’ mind as to whether to buy the merchandise as shown on the website and about getting the same goods as showed on the picture. Although a warranty of return if not satisfied is offered, some customers might not want to go through hassle of dealing with unsatisfying merchandise.

Mondera creates its personality as a “traditional” diamond retailer on the Internet by portraying the value in New York’s diamond district and their family history. As a company established under an internationally known parent company, Mondera has no problem in gaining customers’ trust in its selection of fine diamonds and jewelry.

The company is also serving customers worldwide as Diamond.com does, and offers wide selection of product lines from cuff links to money clips. The website has a “Create your own” feature for higher interactivity between customers and the site in customizing orders. The website also offers a complementary advice from Mondera’s gemologists who are standing by to answer customer questions and concerns about the diamonds. The company is spending a lot of money in advertising and has an excellent promotion strategy such as celebrity features in many of its collections.

Competitive Analysis Table

Diamonds.com	+	++	+	Yes	Yes	Yes	No	Good	Wholesale
Blue Nile	+	++	+	Yes	Yes+	Yes	No	Very Good	35%
Diamond.com	+	++	+	Yes	Yes	Yes	No	Very Good	N/A
Best Gem	+	+	+	Yes	Yes	Yes	No	Very Good	Wholesale
Mondera	+	++	+	Yes	Yes+	Yes	No	Very Good	35%+

C= Connectivity; I= Interactivity; S= Speed

4.3.4 Industry Participants

There are two main categories of players in the diamond industries: online retailers and traditional brick-and-mortar retailers. Both are subdivided into three classes; premium end, middle end and low end market.

Individual competitors are described under “Main Competitors,” below.

Strategy and Implementation Summary

The growth strategy of RBR will require an expansion of the current divisions inside the organization, a restructuring of the company. Without the benefits of the restructuring, it is likely that the RBR business will stagnate. The process of restructuring, however, is not without any risk, as the current business practices that had been the foundation of the company will have to be slightly adjusted in response to today’s retail environment.

There will be two phases of restructuring the company. First, changes will be made in the current RBR location. Second, we must revamp the RBR brand to build and strengthen customers’ “emotional” attachment to it.

Transformation Into Corporate Style of Management

Overcoming the issue of total owner involvement in the business is the most fundamental for any diamond retailer today. RBR is still under “centralized” management with Mr. Stone acting as CEO, Business Development Officer, Purchasing Manager, and Marketing Communication Manager. This creates a conflict of interest within the company. For instance, after Mr. Stone finished working on RBR’s marketing program for the year, he hesitated to pursue most of the programs due to his priority involvement in Business Development (making alliances, adding revenue streams). With better delegation, Mr. Stone’s role in the company can be limited to just expanding the business rather than following up on marketing programs.

Positioning Through New Brand Development

Clearly, the current RBR brand cannot support the next level of growth. The brand does not appeal to an increasing Generation X, the savvy and sophisticated demographic in the U.S. But changing the RBR brand does not mean disregarding the existing value of the company (credibility, integrity, hybrid of traditional and technology).

Business researchers have suggested that there are several reasons a small business would need to change their brand image. There is no recognition of the brand and the potential customers are not clear about the message behind the brand. Or the brand is recognized, but the message the company wishes to convey is not being conveyed. In the case of RBR, that could mean that former customers might be confused about the new direction the company is taking. Another reason to change brand names is that the market for the company’s product has changed dramatically. While the change in market for RBR has not been dramatic, it has been a big enough change that the brand needs some updating in order that the company can begin to compete in new markets.

There are two most critical steps in brand development for RBR. First, the company must secure a more prestigious location for its networked jewelers in positioning its new image in the market. Second, RBR needs to start to manufacture a setting design of its own, branded as “RBR Jewelers.” That will strengthen customer awareness and help the company in positioning itself in the future.

The revised brand messaging will suggest the company’s seriousness in increasing its value in serving the customers. Some of the characteristics of the new brand will reflect the sense of:

• Sophistication
• Exclusivity
• Globalization
• Professionalism
• Fashionable/Contemporary

5.1 Strategy Pyramid

Organizational restructuring is the hardest part in RBR’s growth plan. RBR’s management culture is currently centered on the “one-man-show” model, and as a consequence, employees sometimes feel uncomfortable in the work environment and are less likely to contribute to the overall performance of the company. Although this has given us flexibility, this style of management has limited the company’s growth.

By recruiting non-family members to posts in strategic positions such as CFO and managers, RBR will create more accountability in its performance. Later, RBR as a company must continue to invest in increasing the competency of its people through attending various seminars related to online retailing and marketing high-end merchandise in the connected economy. Through the creation of corporate culture, RBR will become a professional company dedicated to good governance and will one day yield greater performance.

The brand re-development for RBR will include an emphasis on its new marketing campaign, “One Diamond, One Love.” The emotional marketing campaign will appeal to the savvy generation of today. RBR should shift its perception from being the “affordable” diamond retailer/wholesaler toward high-end image (without sacrificing the price) such as Tiffany & Co. However, the dilemma for RBR is to gain this prestigious image and at the same time try to maintain the “mass” market that is currently dominated by other players such as Diamond.com.

5.2 Competitive Edge

The overall concept is to utilize the Internet to connect customers with store inventory, and utilize local jewelers as a mean to support the “high-touch” feature of RBR.

This concept benefits not only RBR, but local jewelers and customers as well. There is no one else in an online diamond retailing industry applying the combination of virtual and traditional brick-and-mortar, except those who utilize the Internet to support their main traditional businesses, so RBR is the only one who has the “high-touch” feature in the competition of online loose diamond retailing.

By working with participating local jewelers, RBR eliminates the obligation to purchase the diamonds before inspection, unlike its competitors. With RBR, diamonds (limit 2 per customer) are shipped to jewelers in the area for free, even if the customer decides not to purchase in the end. In short, it is an absolutely risk-free guarantee!

5.3 Marketing Strategy

The concept of e-marketing is similar to a traditional marketing, which is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the company’s objectives. Marketing does not necessarily mean forms of advertising of products, but fully utilizing all of the company’s resources into getting the customers to buy our products. In this case study, we will explore the three marketing strategies for RBR that are involved in e-commerce marketing, including posting and positioning, and traditional marketing, including advertising and the combination of all.

5.3.1 Promotion Strategy

The most challenging facet in marketing for RBR is the combination of both electronic and traditional publication. In here we are focusing on the aspects of push and pull method to attract customers in buying the diamonds from RBR.

The pull approach is what RBR does in its website to attract customers to buy, not look, as to educating themselves about diamonds (lookers versus bookers). Pull strategy may include a reverse promotion such as special deals, values, and incentives, but limited to logistical activities, such as free settings for the holiday seasons or on special occasions, such as valentine’s days. Both positioning and posting the website are part of the pull strategy, also with web optimization process that we discussed before in the earlier segment of this case study.

Now, the push approach is more exciting where RBR puts out a combination of programs to push the customer into the site, whether by advertising campaign, direct mail, promotion / in-store promotion, publicity, and strategic alliance with other firms to support RBR’s competitive advantages.

Advertising

The upside in doing a major advertising campaign is the efficiency for reaching many potential buyers simultaneously; it is effective in creating image of the brand, and the variety of media to choose from. However, the downsides are the cost and it reaches random targets that might not be our potential buyers. The only way to do this is to find out from our exact demographic and psychographic profile from the SRI data to target which media, unless we have an unlimited amount of money to spent on advertising. The SRI data will provide the name of subscription magazines of our target customers, so we can prepare when to launch the advertising publication into these media. Men’s magazines, television and radio ads are not completely out of the option if we know specific time before hand. For instance, we can focus our advertising campaign around January and February when Valentine’s Day is near.

Sales promotion

These activities include special deals to stimulate demand. Sales promotion is proven effective in changing the short-term behavior of buyers. However, sales promotion whether it is been done online or in-store, could hurt the brand image, as we noted on the vision part, that diamonds is about exclusivity and recognition, and how we as the diamond seller are not going to cheapen the image of our company.

The upside in publicity is the low cost and the messages seen more credible than marketer-sponsored messages. Barriers such as uncooperative media, heavy competition, and less control over the message seem to be the downside in this activity.

However, we can still bench-mark other companies like our competitor, Mondera.com, in endorsing our product in the celebrity events. Maybe not big celebrity exposure as Mondera.com with A list stars such as Elizabeth Hurley and Britney Spears, but we can always find B celebrities to wear our diamonds into the events, such as the Emmys or on MTV. After all, diamonds are about superficiality and vanity, and if the customers see something that their famous stars wear, for instance one TV star got engaged with the US $20,000 diamond from RBR’s inventory, who would not follow?

Direct Mail

Who does not like getting a catalog in the mailbox, especially the ones from Tiffany’s or Cartier? We will use the same methodology as the traditional upper diamond retailers’ approach in catalogs where they create an image of exclusivity of their brand. Although this method is going to cost some amount of money, it is yet still powerful in getting our brand recognized by potential customers.

5.3.2 Positioning Statement

For discriminating diamond purchases who prefer to shop online, Rocks by Request offers a unique combination of high-tech and high-touch shopping. Unlike other online retailers, we work with local diamond merchants to let you inspect your chosen stones in person before buying.

5.3.3 Pricing Strategy

RBR implements standard pricing from the Rappaport. For instance, a 1 carat VVS1 loose diamond is priced between $5,900 to $6,200. RBR’s settings are priced from $100 to $800, depending on the design complexity. All of RBR’s settings will be made of 18k yellow gold or 14k white gold.

In the expansion plan, RBR will outsource the manufacture of accessories made of 14k white gold decorated with small-carat diamonds ranging from 0.01 to 0.3 carat. The pricing of RBR’s signature accessories will range from $90 to $200 to attract the emerging young female audience.

5.4 Sales Strategy

RBR sales strategy will not differ from its previous operating model: the local jewelers. Local jewelers (mom-and-pop shops partnered with RBR) are the sales-savvy people with an already long term relationship with their existing clients. RBR’s network of local jewelers will receive 10% commission fee depending on the amount of sales they made, and this will go to other cost of good sales in RBR’s projected profit and loss table. Settings will not be included in the commission, for the reason that the local jewelers also need to sell their own design.

Usually, after customers view the perfect loose diamonds, they will select the local jewelers in the area to actually examine the merchandise. Then, customers select their preference of setting, and pay for the merchandise. Local jewelers act as the real time “front-end” for our customers, and credibility associate in our business. This sales strategy has been proven to work for the last three years of RBR’s operation.

5.4.1 Sales Forecast

As we are adding two additional categories, settings and accessories, RBR will expect a boost in revenue for the years ahead. However, the forecast is rather conservative, due to fierce competition that offer similar product categories. In order to boost the volume of sales, RBR is now projecting a 10% decrease of its margin from 40% to 30%. This strategy is necessary to attract potential local jewelers, as well as maintaining current partners in distributing RBR’s merchandise.

Due to the difficulty in valuing loose diamonds in units (4Cs characteristics and relationship-based business model), RBR’s sales forecast is based on values rather than units. Please note that when the merchandise is at local jewelers’ hand, bargaining takes place. Customers who already had a long relationship with their local jewelers tend to bargain the price of the diamonds or if sales are down, usually local jewelers tend to lower their margin in order to expand their client base by offering cheaper prices than other jewelers.This is how local jewelers can still compete with big brand names, because of the relationship-based business model. RBR set the average 30% margin for all of its loose diamonds sales to simplify the reporting. However, the numbers are relative ranging from 25% to 50% margin in the diamond retail industry.

Sales Forecast
	2006	2007	2008
Sales
Loose Diamonds	$4,620,000	$5,544,000	$6,652,800
Settings	$600,000	$720,000	$864,000
Trinkets/Accessories	$140,000	$168,000	$200,100
Total Sales	$5,360,000	$6,432,000	$7,716,900
Direct Cost of Sales	2006	2007	2008
Loose Diamonds	$3,234,000	$3,880,800	$4,656,400
Settings	$420,000	$504,000	$604,000
Trinkets/Accessories	$98,000	$118,000	$140,000
Subtotal Direct Cost of Sales	$3,752,000	$4,502,800	$5,400,400

5.5 Strategic Alliances

Strategic alliance has one significant impact in creating brand image. It is sometimes proven more powerful than the image created by advertising campaigns alone. As noted earlier, I propose an alliance (s) with financing firms such as Visa, American Express, and Master Card to boost the image and customers’ spending power. In addition we will join Shop@AOL, which is slightly different from posting the website on AOL, but to include our diamonds into AOL’s selection of engagement diamonds. This will have a great impact on our image as well, as we are in the same place as AOL’s endorsed online diamond retailers, such as Blue Nile and Diamonds.com.

Yahoo! and Amazon are now entering high-end retailing. RBR must be able to become one of their endorsed merchants to expand the brand awareness of the company.

5.6 Milestones

The milestones program shows the detailed implementation schedule for RBR’s expansion in its product portfolio and distribution strategy. Mr. Stone himself will lead the project in finding potential upscale jewelry stores in the area, and control the budget in several strategic areas. 

Milestones
Milestone	Start Date	End Date	Budget	Manager	Department
Website Redesign	11/20/2005	2/12/2006	$500	Jay Pegg	IT
Annual Marketing Program	11/16/2005	1/2/2006	$48,000	Buzz Wird	Marketing
Finding Potential Jeweler Partner	10/28/2005	6/6/2009	$1,200	Rock Stone	Business Dvpmnt
Establish Alliance With Internet Vendors	12/15/2005	2/10/2006	$1,200	Rock Stone	Business Dvpmnt
Establish Relationship With Outsourcing Workshops	12/2/2005	2/12/2006	$1,200	Rock Stone	Business Dvpmnt
Revamp Logo Design	11/20/2005	6/6/2009	$800	Rock Stone	Business Dvpmnt
Establish Relationship With Banks For Co Branding	11/22/2005	1/17/2006	$1,200	Buck Pound	Business Dvpmnt
Upgrade Existing Warehouse	12/2/2005	3/20/2006	$12,000	Chip N. Storage	Operation
Update List of New Local Jeweler Partners	1/5/2006	1/9/2006	$0	Jay Pegg	IT
Totals			$66,100

Web Plan Summary

The new RBR website will have several new features that will add to the company’s competitive advantage in online diamond retailing. Some of these features, such as “Design Your Own Ring” and “Live Online Sales Assistance,” have already been implemented by other players in the marketplace.

New features of RBR website will include:

• “Design Your Own Ring,” utilizing Macromedia Flash that will enable customers to view their ring setting with their own selection of diamond shape.
• “Live Online Sales Assistance,” that will be available from 8AM to 8PM Pacific Standard Time.
• Paypal friendly.
• “3-D Interactive,” utilizing Macromedia Flash, so that customers can view 360 degrees of the selected ring.

6.1 Website Marketing Strategy

Optimizing our Search Results

This process refers to optimizing RBR’s website by including the frequent use of keywords from customers going to search engines looking for diamonds, such as “diamonds,” “diamond,” and “wholesale diamonds” into its Web pages. Optimization is currently handled by an organization called WebMama.com. IT personnel at WebMama.com puts the use of words in a fashion where search engines pick them up. This all being done in text rather than in pdf format as the spiders and callers only work in text environment. Another way to position the website is by optimizing the meta-text, which means the back-end of the website, where it tells the search engine about the presence of RBR’s website.

The concept of web optimization is quite simple, knowing that search engines’ spiders would not go as far as two levels in delivering the websites to Internet users. Note that flash pages are not friendly to the spiders, so it is advisable not to put flashy pages on the first two levels. There are doors to get in every website from the search engines, which in the case of RBR, it uses four doors. In order to optimize RBR’s doors with the search engines portals, we use strategy that is derived from the common customers’ habit if they were looking for diamonds online. For instance, customers will use the four C’s to educate themselves about the diamonds they are going to buy, and RBR provides the four C’s information in the first level of its website to get customers learning about the four C’s from RBR.

Currently the Web positioning strategy is more than adequate to put RBR among other competitors. Although it is in Yahoo’s 19th rank when customers type keyword “diamonds,” it still visible for them to view the website.

Now, with the optimized keywords and meta-texts in position, RBR needs to do one final step, posting the site for search engines.

Current posting on Yahoo! indicates sponsorship under the word “wholesale diamonds” and “engagement diamonds,” but not under single keywords”diamonds” or “diamond,” which is not posing a problem as long as the optimization process keeps up with the fast pace in the changing trend of the Internet.

Although Yahoo! and Google are the most used search engines in the world today, my recommendation in this part is to post RBR’s website under Shop@AOL, for the reason that AOL is the biggest online community where its users listen for virtual “word of mouth” with other chatters or members. As Blue Nile and Diamond.com are already in sponsorship with AOL, along with Macy’s and Ice.com that are now expanding to the upper echelon of loose diamond retail, RBR should establish a connection with AOL to increase its competitiveness in the industry.

6.2 Development Requirements

In developing this high-tech website, RBR will utilize mainly Macromedia Flash software, as well as open source software to achieve cost efficiency in this area. RBR’s IT Manager will be responsible in the development of both front-end and back-end of the website. RBR’s in-house programmer will be responsible to create the program that will enable these new features, while for data entry, image cropping, and simple programming, RBR will use temp workers to help minimize the budget. Temp workers will also be contracted on an as-needed basis in the maintenance and update of the website.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Rock Stone, CEO of RBR, will be responsible for developing business strategy, identifying business opportunities, and achieving projected revenue and expense targets.

Our CFO will be responsible for supervising the finance and accounting department.

Our Marketing and Brand Manager will be responsible for developing brand advertising and marketing programs.

7.1 Organizational Structure

The new organization restructuring will focus on the relationship between the owner and the other managers, not necessarily limiting the involvement of the owner. The purpose of this new organizational model is to increase the accountability of each subdivision to gain maximum performance.

• Mr. Stone will act as a CEO/Strategic Business Officer. The role of Vice President and CFO will be combined.
• Jay Pegg will be responsible for the IT development of the company, both front-end design and back-end database management.
• The Marketing Department, headed by Buzz Wird, will include Branding Development.
• Warehouse and Logistic Operation will be headed by Mr. Chip N. Storage.

7.2 Personnel Plan

Mr. Stone will now receive an annual salary instead of taking the whole profit as it was in the past. The purpose of giving salary to owner is to accumulate extra cash for the further development of the company.

Personnel Plan
	2006	2007	2008
CEO/Owner	$108,000	$108,000	$108,000
CFO	$78,000	$78,000	$78,000
Marketing/Brand Manager	$54,000	$54,000	$54,000
Marketing Personnel	$24,000	$24,000	$24,000
IT Manager	$54,000	$54,000	$54,000
Programmer	$38,400	$38,400	$38,400
Web Designer	$26,400	$26,400	$26,400
General Administrative Assistant	$24,000	$24,000	$24,000
Shipping Personnel 1	$22,000	$22,000	$22,000
Security Guard 1	$24,000	$24,000	$24,000
Security Guard 2	$24,000	$24,000	$24,000
Security Guard 3	$24,000	$24,000	$24,000
Security Guard 4	$24,000	$24,000	$24,000
Shipping Personnel 2	$22,000	$22,000	$22,000
Total People	15	15	15
Total Payroll	$546,799	$546,800	$546,800

Financial Plan investor-ready personnel plan .">

Our financial plan is based on our overall strategy of new market development. We will cut our margins from 40% to 30% to increase our appeal to a wider audience. With lower prices, we must rely on online marketing efforts and local jewelers to maintain and enhance the prestige of our brand.

8.1 Important Assumptions

Our assumption is based on the historical 20% annual sales growth since 2002. This is a rather conservative sales projection. As we expand our categories and revamp the technology, in addition to building a stronger image brand, we expect a higher growth percentage during three years of operation.

8.2 Key Financial Indicators

We will decrease our gross margin from 40% in previous years to 30% of all loose diamond sales, to boost sales volume. As mentioned in a previous chapter, we purchased a large amount of loose diamonds directly from our network of diamond cutters with 30 days collection days. Based on our estimated operating expense monthly, we expect to generate more sales to cover our fixed expenses.

8.3 Projected Profit and Loss

Our estimated Net Profit for 2006 and 2007 is presented in the accompanying table and charts.

Pro Forma Profit and Loss
	2006	2007	2008
Sales	$5,360,000	$6,432,000	$7,716,900
Direct Cost of Sales	$3,752,000	$4,502,800	$5,400,400
Other Costs of Sales	$138,600	$166,400	$199,600
Total Cost of Sales	$3,890,600	$4,669,200	$5,600,000
Gross Margin	$1,469,400	$1,762,800	$2,116,900
Gross Margin %	27.41%	27.41%	27.43%
Expenses
Payroll	$546,799	$546,800	$546,800
Marketing/Promotion	$48,000	$48,000	$48,000
Depreciation	$0	$0	$0
Rent @ Brannan Street	$36,000	$36,000	$36,000
Utilities @ Brannan Street	$4,200	$4,200	$4,200
Warehouse Utilities	$7,200	$7,200	$7,200
Payroll Taxes	$0	$0	$0
Warehouse Rent	$72,000	$72,000	$72,000
Web Hosting	$480	$480	$480
Database Maintainence	$100	$100	$100
Shipping	$30,000	$30,000	$30,000
Total Operating Expenses	$744,779	$744,780	$744,780
Profit Before Interest and Taxes	$724,621	$1,018,020	$1,372,120
EBITDA	$724,621	$1,018,020	$1,372,120
Interest Expense	$0	$0	$0
Taxes Incurred	$217,386	$305,406	$411,636
Net Profit	$507,234	$712,614	$960,484
Net Profit/Sales	9.46%	11.08%	12.45%

8.4 Break-even Analysis

With monthly fixed costs and variable costs, the table and chart below show what we need to sell in diamonds each month to break even. We are well past the break-even point, even with these lower margins.

Break-even Analysis
Monthly Revenue Break-even	$206,883
Assumptions:
Average Percent Variable Cost	70%
Estimated Monthly Fixed Cost	$62,065

8.5 Projected Cash Flow

Our projected cash flow is outlined in the following chart and table.

Pro Forma Cash Flow
	2006	2007	2008
Cash Received
Cash from Operations
Cash Sales	$5,360,000	$6,432,000	$7,716,900
Subtotal Cash from Operations	$5,360,000	$6,432,000	$7,716,900
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$5,360,000	$6,432,000	$7,716,900
Expenditures	2006	2007	2008
Expenditures from Operations
Cash Spending	$546,799	$546,800	$546,800
Bill Payments	$3,791,764	$5,151,736	$6,198,175
Subtotal Spent on Operations	$4,338,563	$5,698,536	$6,744,975
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$4,338,563	$5,698,536	$6,744,975
Net Cash Flow	$1,021,437	$733,464	$971,925
Cash Balance	$3,308,437	$4,041,902	$5,013,827

8.6 Projected Balance Sheet

The table below outlines the projected balance sheet.

Pro Forma Balance Sheet
	2006	2007	2008
Assets
Current Assets
Cash	$3,308,437	$4,041,902	$5,013,827
Inventory	$312,667	$375,233	$450,033
Other Current Assets	$30,000	$30,000	$30,000
Total Current Assets	$3,651,104	$4,447,135	$5,493,860
Long-term Assets
Long-term Assets	$0	$0	$0
Accumulated Depreciation	$0	$0	$0
Total Long-term Assets	$0	$0	$0
Total Assets	$3,651,104	$4,447,135	$5,493,860
Liabilities and Capital	2006	2007	2008
Current Liabilities
Accounts Payable	$346,869	$430,287	$516,527
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$346,869	$430,287	$516,527
Long-term Liabilities	$0	$0	$0
Total Liabilities	$346,869	$430,287	$516,527
Paid-in Capital	$1,500,000	$1,500,000	$1,500,000
Retained Earnings	$1,297,000	$1,804,234	$2,516,848
Earnings	$507,234	$712,614	$960,484
Total Capital	$3,304,234	$4,016,848	$4,977,332
Total Liabilities and Capital	$3,651,104	$4,447,135	$5,493,860
Net Worth	$3,304,234	$4,016,848	$4,977,332

8.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5999.15, Diamonds, Gems and Precious Stones.

Ratio Analysis
	2006	2007	2008	Industry Profile
Sales Growth	34.23%	20.00%	19.98%	6.95%
Percent of Total Assets
Inventory	8.56%	8.44%	8.19%	35.78%
Other Current Assets	0.82%	0.67%	0.55%	21.61%
Total Current Assets	100.00%	100.00%	100.00%	89.85%
Long-term Assets	0.00%	0.00%	0.00%	10.15%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities	9.50%	9.68%	9.40%	29.22%
Long-term Liabilities	0.00%	0.00%	0.00%	8.75%
Total Liabilities	9.50%	9.68%	9.40%	37.97%
Net Worth	90.50%	90.32%	90.60%	62.03%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	27.41%	27.41%	27.43%	19.18%
Selling, General & Administrative Expenses	17.95%	16.33%	14.99%	8.17%
Advertising Expenses	0.00%	0.00%	0.00%	0.93%
Profit Before Interest and Taxes	13.52%	15.83%	17.78%	2.22%
Main Ratios
Current	10.53	10.34	10.64	2.80
Quick	9.62	9.46	9.76	1.48
Total Debt to Total Assets	9.50%	9.68%	9.40%	45.68%
Pre-tax Return on Net Worth	21.93%	25.34%	27.57%	5.98%
Pre-tax Return on Assets	19.85%	22.89%	24.98%	11.00%
Additional Ratios	2006	2007	2008
Net Profit Margin	9.46%	11.08%	12.45%	n.a
Return on Equity	15.35%	17.74%	19.30%	n.a
Activity Ratios
Inventory Turnover	11.29	13.09	13.09	n.a
Accounts Payable Turnover	11.59	12.17	12.17	n.a
Payment Days	28	27	27	n.a
Total Asset Turnover	1.47	1.45	1.40	n.a
Debt Ratios
Debt to Net Worth	0.10	0.11	0.10	n.a
Current Liab. to Liab.	1.00	1.00	1.00	n.a
Liquidity Ratios
Net Working Capital	$3,304,234	$4,016,848	$4,977,332	n.a
Interest Coverage	0.00	0.00	0.00	n.a
Additional Ratios
Assets to Sales	0.68	0.69	0.71	n.a
Current Debt/Total Assets	10%	10%	9%	n.a
Acid Test	9.62	9.46	9.76	n.a
Sales/Net Worth	1.62	1.60	1.55	n.a
Dividend Payout	0.00	0.00	0.00	n.a

Sales Forecast
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Sales
Loose Diamonds	0%	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000	$385,000
Settings	0%	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000
Trinkets/Accessories	0%	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667	$11,667
Total Sales		$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667
Direct Cost of Sales		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Loose Diamonds		$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500	$269,500
Settings		$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000	$35,000
Trinkets/Accessories		$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167	$8,167
Subtotal Direct Cost of Sales		$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667

Personnel Plan
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
CEO/Owner	0%	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000	$9,000
CFO	0%	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500	$6,500
Marketing/Brand Manager	0%	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500
Marketing Personnel	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
IT Manager	0%	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500	$4,500
Programmer	0%	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200	$3,200
Web Designer	0%	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200	$2,200
General Administrative Assistant	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Shipping Personnel 1	0%	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833
Security Guard 1	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Security Guard 2	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Security Guard 3	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Security Guard 4	0%	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000
Shipping Personnel 2	0%	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833	$1,833
Total People		15	15	15	15	15	15	15	15	15	15	15	15
Total Payroll		$45,566	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567

Pro Forma Profit and Loss
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Sales		$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667
Direct Cost of Sales		$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667
Other Costs of Sales		$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550	$11,550
Total Cost of Sales		$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217	$324,217
Gross Margin		$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450	$122,450
Gross Margin %		27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%	27.41%
Expenses
Payroll		$45,566	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567
Marketing/Promotion		$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000	$4,000
Depreciation		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Rent @ Brannan Street		$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000
Utilities @ Brannan Street		$350	$350	$350	$350	$350	$350	$350	$350	$350	$350	$350	$350
Warehouse Utilities		$600	$600	$600	$600	$600	$600	$600	$600	$600	$600	$600	$600
Payroll Taxes	15%	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Warehouse Rent		$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000
Web Hosting		$40	$40	$40	$40	$40	$40	$40	$40	$40	$40	$40	$40
Database Maintainence	15%	$8	$8	$8	$8	$8	$8	$8	$8	$8	$8	$8	$8
Shipping		$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500	$2,500
Total Operating Expenses		$62,064	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065	$62,065
Profit Before Interest and Taxes		$60,386	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385
EBITDA		$60,386	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385	$60,385
Interest Expense		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Taxes Incurred		$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116	$18,116
Net Profit		$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270
Net Profit/Sales		9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%	9.46%

Pro Forma Cash Flow
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Cash Received
Cash from Operations
Cash Sales		$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667
Subtotal Cash from Operations		$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667
Additional Cash Received
Sales Tax, VAT, HST/GST Received	0.00%	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
New Current Borrowing		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
New Other Liabilities (interest-free)		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
New Long-term Liabilities		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Sales of Other Current Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Sales of Long-term Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
New Investment Received		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Subtotal Cash Received		$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667	$446,667
Expenditures		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Expenditures from Operations
Cash Spending		$45,566	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567	$45,567
Bill Payments		$128,205	$246,164	$247,853	$298,897	$358,831	$358,831	$358,831	$358,831	$358,831	$358,831	$358,831	$358,831
Subtotal Spent on Operations		$173,771	$291,731	$293,419	$344,464	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Principal Repayment of Current Borrowing		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Other Liabilities Principal Repayment		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Long-term Liabilities Principal Repayment		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Purchase Other Current Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Purchase Long-term Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Dividends		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Subtotal Cash Spent		$173,771	$291,731	$293,419	$344,464	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397	$404,397
Net Cash Flow		$272,896	$154,936	$153,247	$102,203	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270	$42,270
Cash Balance		$2,559,896	$2,714,832	$2,868,079	$2,970,281	$3,012,551	$3,054,820	$3,097,090	$3,139,359	$3,181,629	$3,223,898	$3,266,168	$3,308,437

Pro Forma Balance Sheet
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Assets	Starting Balances
Current Assets
Cash	$2,287,000	$2,559,896	$2,714,832	$2,868,079	$2,970,281	$3,012,551	$3,054,820	$3,097,090	$3,139,359	$3,181,629	$3,223,898	$3,266,168	$3,308,437
Inventory	$600,000	$487,333	$374,666	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667	$312,667
Other Current Assets	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000	$30,000
Total Current Assets	$2,917,000	$3,077,229	$3,119,498	$3,210,745	$3,312,948	$3,355,217	$3,397,487	$3,439,756	$3,482,026	$3,524,295	$3,566,565	$3,608,834	$3,651,104
Long-term Assets
Long-term Assets	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Accumulated Depreciation	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Long-term Assets	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Assets	$2,917,000	$3,077,229	$3,119,498	$3,210,745	$3,312,948	$3,355,217	$3,397,487	$3,439,756	$3,482,026	$3,524,295	$3,566,565	$3,608,834	$3,651,104
Liabilities and Capital		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Current Liabilities
Accounts Payable	$120,000	$237,959	$237,958	$286,936	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869
Current Borrowing	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Other Current Liabilities	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Subtotal Current Liabilities	$120,000	$237,959	$237,958	$286,936	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869
Long-term Liabilities	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$120,000	$237,959	$237,958	$286,936	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869	$346,869
Paid-in Capital	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000	$1,500,000
Retained Earnings	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000	$1,297,000
Earnings	$0	$42,270	$84,539	$126,809	$169,078	$211,348	$253,617	$295,887	$338,156	$380,426	$422,695	$464,965	$507,234
Total Capital	$2,797,000	$2,839,270	$2,881,539	$2,923,809	$2,966,078	$3,008,348	$3,050,617	$3,092,887	$3,135,156	$3,177,426	$3,219,695	$3,261,965	$3,304,234
Total Liabilities and Capital	$2,917,000	$3,077,229	$3,119,498	$3,210,745	$3,312,948	$3,355,217	$3,397,487	$3,439,756	$3,482,026	$3,524,295	$3,566,565	$3,608,834	$3,651,104
Net Worth	$2,797,000	$2,839,270	$2,881,539	$2,923,809	$2,966,078	$3,008,348	$3,050,617	$3,092,887	$3,135,156	$3,177,426	$3,219,695	$3,261,965	$3,304,234

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A Step-by-Step Guide to Start Your Lab-Grown Diamond Business

Starting a lab-grown diamond jewelry business can be a great way to get involved in the growing market for these diamonds. They are created in a laboratory and have many of the same properties as natural diamonds.

In this step-by-step guide, we will take you through the exhilarating process of launching your lab-grown diamond business. With rising demand for sustainable and affordable luxury, now is the perfect time to dive into this innovative and dynamic industry.

The Benefits of Starting a Lab-Grown Diamond Company

Starting a lab-grown diamond company offers a multitude of benefits.

First, these diamonds are ethically sourced, eliminating the need for environmentally damaging mining practices. This resonates with the growing consumer demand for sustainable and socially responsible products.

Secondly, lab-grown diamonds are more affordable than their mined natural diamonds, making luxury accessible to a broader audience. This affordability factor opens up a vast market opportunity for entrepreneurs.

Lastly, lab-grown diamonds offer consistent quality and are free from the flaws commonly found in mined diamonds, ensuring customer satisfaction and repeat business.

Lab-Grown Diamonds vs. Natural Diamonds

Natural diamonds form deep within the Earth’s mantle under extreme heat and pressure conditions, taking millions of years. These conditions cause carbon atoms to bond in a crystal lattice structure, creating the remarkable gemstone we know as a diamond. The natural diamond form process takes millions, if not billions, of years as the carbon-rich materials are brought to the Earth’s surface through volcanic activity. Once unearthed, diamonds captivate us with their unique brilliance and beauty, making them one of the world’s most coveted and cherished gemstones. So, the next time you marvel at a diamond’s timeless allure, remember its extraordinary journey to form and make it into our lives.

Conversely, lab-grown or synthetic diamonds can be produced in a matter of weeks in a laboratory.

Lab-grown diamonds are both eco-friendly and sustainable. They are created in a closely monitored environment, which means they have zero negative impact on the environment. This is only when looking from one side – diamond mining, and many assume that lab-grown diamonds are more sustainable due to the absence of mining. But it’s not always the case. The production process for lab-grown diamonds can be energy-intensive , which may offset some of the environmental benefits.

Another great thing is that lab-grown diamonds are more affordable than natural diamonds because they can be produced in larger quantities and don’t require diamond mining. Plus, lab-grown diamonds are virtually identical to natural diamonds in terms of their physical and chemical properties, including their refractive index and thermal conductivity.

Gem-Quality Synthetic Diamonds VS Natural

When it comes to quality, in the industry is uses the term “gem quality” refers to the fits within the Gemological Gradings for the 4 C’s – clarity, color, cut, and carat:

• Color : The Gemological Institute of America (GIA) grades diamond color on a scale from D (colorless) to Z (light yellow or brown). Both the natural diamond and the synthetic diamond can span this entire range. However, because lab-grown diamonds are created in a controlled environment, they often achieve higher color grades.
• Clarity : Clarity evaluates the absence of inclusions and blemishe s. Natural diamonds often possess tiny imperfections formed by intense heat and pressure over time. Conversely, lab diamonds, grown in a controlled environment, tend to have fewer inclusions, often leading to a higher clarity grade.
• Cut : This refers to how well the diamond has been cut from its rough form. Factors such as symmetry, proportions, and polish are considered. The quality of the cut impacts the diamond’s brilliance and fire. Both natural and lab diamonds can be cut into various shapes, with the quality of the cut depending mainly on the skill of the craftsman.
• Carat : Carat refers to the weight of the diamond, with one carat equaling 200 milligrams . Growing larger diamonds requires more time and resources, making larger synthetic diamonds rarer and more expensive, much like natural diamonds.

Types of Lab-Grown Diamonds

When it comes to lab-created diamonds, there are two main types: synthetic diamonds and cultured diamonds.

Synthetic diamonds are produced using a technique called chemical vapor deposition, which involves the deposition of carbon atoms onto a substrate, resulting in a high-quality diamond. Due to the complex manufacturing process, synthetic diamond prices are higher than their cultured counterparts.

On the other hand, cultured diamonds are created using a process known as high-pressure, high-temperature, or HPHT, also called “diamond seed.” This method involves subjecting carbon to extreme temperature and pressure conditions (1400°C to 1600°C, and pressures that are 1.5 million times higher than atmospheric pressure), recreating the natural diamond formation process starting with the small diamond seed. As a result, cultured diamonds exhibit similar properties to those found in mined diamonds. These diamonds are more reasonably priced than synthetic diamonds, making them a popular choice for those looking for an affordable yet sustainable option.

So, whether you opt for the pricier synthetic diamonds or the more reasonably priced cultured diamonds, both offer the allure and brilliance of diamonds while being a conscious choice regarding sustainability and affordability.

How to Start a Lab-Grown Diamond Business?

1. choose a niche in a lab-grown diamond market.

If you want to start this business, you must find or develop a new niche in the lab-grown diamond market. You may want to focus on a specific type of jewelry, such as an engagement ring or wedding band. Alternatively, you may want to focus on a  particular type of customer , such as brides-to-be or grooms-to-be.

2. Obtain All Necessary Certifications and Licenses

Before diving headfirst into the lab diamonds, it is essential to ensure that you have the necessary certifications and licenses. These certifications demonstrate your commitment to quality and ethical practices and instill customer trust.

Look for internationally recognized certifications that vouch for the authenticity and origin of your lab-grown diamonds. Additionally, familiarize yourself with local regulations and obtain the required legal licenses to operate your business. Compliance with industry standards and regulations is crucial to building a reputable and trustworthy brand.

3. Set Up Your Lab Diamonds Production Facility

Using a state-of-the-art lab diamond production facility is critical if you want to produce lab-grown diamonds. This facility will serve as the backbone of your operations, ensuring the efficient and consistent production of high-quality diamonds.

Choose a location that provides easy access to necessary resources and skilled labor. Remember, the quality of your diamonds is directly linked to the efficiency and precision of your production process.

To cater to a diverse customer base, it is essential to develop a comprehensive product line that offers a range of options in carat, cut, color, and clarity. This allows customers to find the perfect lab diamond that aligns with their preferences and budget.

4. Ensure Quality Materials for Diamond Production

The quality of your lab diamonds depends on the materials you use during the production process. It is essential to source high-quality carbon and other raw materials to ensure your diamonds’ desired brilliance and durability.

Collaborate with reputable suppliers who adhere to strict quality standards and offer consistent and reliable materials. Conduct comprehensive testing and quality control measures to ensure the integrity of your supply chain. By sourcing the finest materials, you can guarantee the exceptional quality customers expect from lab-grown diamonds.

5. Decide On a Pricing Strategy

Carefully consider your pricing strategy. While lab-grown diamonds are more affordable than mined diamonds, setting the right price point is crucial to balance profitability and market competitiveness. Conduct market research and competitor analysis to determine the optimal pricing strategy . In such a way, you can maximize your sales and profitability while remaining attractive to customers.

It’s important to remember that the prices of diamonds can change significantly, and the diamond industry can be unpredictable.

6. Create a Brand Identity

Your brand should convey the unique selling points of lab-grown diamonds, such as sustainability, affordability, and superior quality. Develop a compelling brand story that resonates with your target audience and sets you apart from traditional diamond retailers. Also, you must craft a visually appealing brand identity, including a logo, color palette, and brand messaging that reflect the values and aspirations of your customers.

7. Marketing Your Business

Once you have established your brand identity, creating a comprehensive marketing plan is time. Use a mix of online and offline marketing channels to effectively reach your target audience. You can use social media platforms, content marketing, influencer collaborations, and search engine optimization to increase brand visibility and drive traffic to your website. Also, there are always targeted advertising campaigns to generate leads and convert them into customers.

Building connections with other businesses in the lab-grown diamond industry is important. These connections can benefit you regarding networking, referral opportunities, and joint marketing initiatives.

8. Develop Sales and Distribution Channels

There are various sales and distribution channels to consider when it comes to selling lab-grown diamonds. Explore online and offline partnerships with jewelry retailers to expand your reach and tap into their existing customer base. Also, you can collaborate with industry influencers and jewelry designers who can showcase your lab-grown diamonds in their collections.

Today, having a strong online presence is crucial for success.

So, you must build a user-friendly and visually appealing e-commerce website that showcases your lab-grown diamonds and provides a seamless shopping experience.

Use high-quality product images, detailed descriptions, and transparent pricing information to instill trust in potential customers. This will allow you to sell your products and services globally.

Setting up and growing your online store will take some time and effort, but it will be worth it in the long run.

9. Provide Exceptional Customer Service and After-sales Support

In this industry, exceptional customer service is key to building trust and loyalty. Use a customer-centric approach by providing personalized assistance, expert advice, and prompt responses to customer inquiries.

Also, consider offering comprehensive after-sales support, including warranties, repairs, and upgrades, to ensure customer satisfaction even after the purchase.

Frequently Asked Questions

Lab-grown diamonds  have many of the same properties as natural diamonds but are created through a much more environmentally friendly process. In addition, lab-grown diamonds are often less expensive than natural diamonds.

Yes, lab-grown diamonds can increase in value over time. The value of a lab-grown diamond is based on the quality of the diamond. Most people won’t want to resell their lab-grown diamonds, but it’s still possible.

Cubic zirconia is often used as a cheaper alternative to diamonds but does not have the same properties. Cubic zirconia is softer than diamond, and it is not as durable. In addition, cubic zirconia can turn yellow over time, while diamonds will maintain their color.

Moissanite  is another diamond alternative but does not have the same properties as diamonds. Moissanite is harder than cubic zirconia but is not as hard as diamond. In addition, moissanite can turn yellow over time, while diamonds will maintain their color.

Yes, anyone can start a diamond company. However, it is important to research the market and understand the industry before starting a business. Finding a reliable diamond source is also important and creates a niche for your business. Remember that starting and growing a successful business will take considerable time, money, and effort.

The cost of starting a diamond company will vary depending on the size and scope of your business. You must factor in the cost of diamonds, marketing, and overhead. Before making any decisions, it is important to understand all the costs associated with starting a business.

Like any other business, some risks are associated with starting a diamond business. The most common risk is that you cannot find a reliable diamond source. In addition, the industry is volatile, and prices can fluctuate rapidly.

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'The Diamond Switch': From Jewellers To Astrologers, Why Lab Grown Diamonds Are Emerging As India's Favorite

What's making the lab grown diamond a hit among indian customers how can you differentiate between a naturally mined diamond and a lab grown variety here's all you need to know about lab grown diamonds:.

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Export Market of Indian Diamond

The gems and jewellery sector of India is amongst the largest in the world as it contributes almost 29 per cent of the total consumption.

Our country is the most preferred country for export of gems and jewellery.

Indians have always been connoisseurs of precious stones and ornaments. It has the largest diamond polishing and cutting centre in the world. This sector itself contributes about 7 per cent of the GDP (Gross Domestic Product).

As per Gems and Jewellery Export Promotion Council (GJEPC), the exports are been expected to grow by almost 10 per cent by the end of this year.

India is deemed to be the hub of the global jewellery market due to its low costs and availability of high- skilled labor. It is the world’s largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well- supported by government policies. India exports 75 per cent of the world’s polished diamonds.

India’s top export destinations for that of gems and jewellery are Europe, China, United States and Japan.

United States account for nearly 1/4 th of the country’s total gems and jewellery exports. Exports of cut and polished diamonds grew by almost 4.17 per cent to $ 23.74 billion in 2017- 18. In 2018, polished diamond exports grew by 8.37 per cent to US $ 14.99 billion. It employs over 4.64 million workers currently and is been expected to employ 8.23 million by the financial year 2022. It is one of the fastest growing sectors and is extremely export oriented along with it being labor intensive. Deals worth Rs 8,000 crore (US$ 1.19 billion) were made at the Indian International Jewellery Show held in August 2018.

The Indian Government has declared this sector as a focus area for export promotion, due to its potential for growth and value addition. The Indian government presently allows 100 percent Foreign Direct Investment (FDI) in this sector through the automatic route.

Export of diamonds contributes a major chunk to the total foreign reserves. Various Export Import Institutes and education centers help to export.

Brand India is the promotion name that government is trying to promote in the international market.

Advantages that India has –

• Attractive Opportunities –

The cut and polished diamonds export market is seen an increase and steadily growing at a fast pace by reaching US $ 23.73 billion in 2018. It is the highest share in gems and jewellery exports in the world.

• Increasing Investment –

Sector is been advancing in investments supported by increasing the expansion ratio of domestic companies.

• Growing demand –

In 2017, India was ranked 2 nd largest consumer of Gold in the world. Increased disposable income of the middle class is actually driving the demand of this particular sector.

• Policy Support –

Government’s monetization scheme enables mutual funds, trusts as well as individuals to deposit gold with that of the local banks and earn interest on the same.

One thought on “ Export Market of Indian Diamond ”

I have already done import/export course at IIIEM – Ahmedabad Branch. I just read about export of jewelry and gems. One of my uncle have manufacturing of diamond.Can i do export of diamond in Europe Country or USA? How can i find geniune buyers of diamond?

Waiting for your favorable reply.

Best regards, Roopal viradia

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Learn How to Start a Diamond Jewelry Business

If you are interested in starting a diamond jewelry business then you are in luck, these tips will really help you save time and money but you have to have pay very close attention to them. The first and most important question to address is asking yourself “why do you want to start a diamond jewelry business?” Be honest with yourself when answering, do you think you will make lots of money from it or do you love jewelry? There is no right or wrong answer but you should be honest with yourself. Once you have the answer the next question to address is what are you willing to do in order to realize that goal. There are individuals out there who think that success just “happens” but it takes a considerable amount of work and a little luck.

Establishing Milestones and Defining Clear Objectives

Find your niche quickly.

Every jewelry store has its own personality or should if it wants to stand out from the crowd. Take Tiffany for example, just mentioning that name and people know right away you are speaking about highly sought after jewelry. In order to figure out your niche you have to determine what “style” of diamond jewelry you will be offering, will it be expensive targeting the very wealthy or are you going after the younger market who has a modest budget? Are you interested in timeless styles or prefer something that is “trend”? Only when you have answered these questions can you move forward and start looking for venues to have your diamond jewelry store.

Harnessing the Power of Social Networking

These are just some of the things you have to consider when starting a diamond jewelry business. After you have addressed these items you will be able to start reaping the rewards from your hard work.

Carl A. Jones is a GIA Graduate Gemologist with over 20 years of experience in the diamond industry. He is an independent jewelry appraiser. He specializes in determining the value of diamonds and advising consumers on how to buy quality diamond jewelry.

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