Next Step For Diamond Bird: Industry Chain + Brand

In March 2011, the diamond bird announced the completion of its third round of financing of US $50 million.

For domestic diamond B2C, this is no doubt good news.

In the past few years, the industry is being questioned.

The focus of the doubt is that the diamond B2C enterprises, which are under the banner of "electricity supplier", are losing their traditional sense.

So they were labled on the label of "pseudo electronic commerce", or even referred to as "encountering network Waterloo" and "dreaming of online B2C".

In 2002, Xu Xiao became the first person to eat crab and sell it online.

Guo Feng, founder of Kelan diamond net, believes that today's jewellery e-commerce has gone through a period of budding and rapid expansion, and has entered a period of intense competition and rational development.

At this point in time, a diamond bird has been selected. Fang Yuan's capital is optimistic about the integration ability of the co founder Xu Lei and Xu Xiao brother and sister in the diamond supply chain, the grasp of the trend of diamond jewelry and the understanding of e-commerce.

Birdie advantage

In 2002, Xu Xiao tried to sell diamond products in eBay's online store.

Although Blue Nile (Blue Nile) was born in the United States as early as 1999, the founder of world online diamond sales, but Xu Xiaoshang did not know what Blue Nile was in 2002.

Her idea is related to the background of her brother Xu Lei.

Xu Lei graduated from Tongji University as a jewellery specialist. In 2002, he was doing jewelry business, providing bare diamonds and diamond accessories for many jewellers in Shanghai and Hongkong.

In the next 2 years, when the diamond baby business is good, the monthly turnover can be more than tens of thousands of yuan. Xu Lei and Xu Xiao brothers and sisters have also changed from part-time jobs to full-time network diamond sales.

But soon they encountered a bottleneck: sales scale is not going to have a bigger breakthrough.

The reason is that most Chinese consumers tend to "see for real" when buying valuable commodities such as diamonds.

In 2004, the diamond bird opened a more than 20 square meter experience shop in Town God's Temple, Shanghai, to facilitate customers to see the goods. The results were immediate: Diamond birds sold 5 times in the month.

In early 2005, they built their own website, "I want diamond net" (later renamed "Diamond bird").

Thus creating a business model of selling diamonds with "mouse + cement".

At present, nine diamond nets, LAN LAN, Bloves and other network B2C diamond brands are taking the "mouse + cement" route.

But their appearance is after 2005.

Compared with traditional jewelers, diamond birds first change the jewelry sales process: if you want to buy diamond rings, in traditional jewelry stores, you can only choose products that are suitable for their products from the counters, while diamond birds provide customized services to consumers. The naked diamond can be selected from some stock of the diamond bird shop, and it can also be searched through the global diamond real-time inquiry system to search the "virtual stock" distributed around the world. After the consumers choose the naked diamond and the ring off, the diamond bird goes to the upstream to place orders. The diamond is purchased from abroad, and is declared through the Shanghai diamond exchange, and then enters the design and processing process, and finally the product is handed over to the consumer.

As early as 2009, diamond bird set up Diamond purchasing center in the world diamond capital, Belgium, Antwerp.

As China's leading network diamond brand, coupled with Xu Lei's early accumulation of resources, diamond small bird has become the world's largest diamond producer - EuroStar, one of the world's largest exporters, the only network partner in China.

At present, about 11000 of the more than 13000 diamonds that they provide to consumers are virtual inventories.

Xu Lei said that the diamond bird needs to complete its own circulation of about 2000 diamond stocks, which needs 1.5-2 months, while the finished goods inventory of traditional jewelers shops will last for 1 to 1 and a half years.

Not only reduced the pressure on the stock market, but mouse and cement also no longer depended on the number and location of the stores as traditional jewellery, and the rental cost was also relatively low.

Take its experience shop in the 8 floor of new Hung Yi International Plaza, Nanjing Road, Shanghai, for example. The rent per square meter is only 1/8 on the first floor.

Therefore, low price has become a killer for diamond birds to challenge traditional jewelry industry.

The low 30%-50% price advantage of traditional jewelers also helped diamond birds gain popularity quickly.

According to the report released in June 2010 by Qing Ke, in 2009, the revenue of diamond birds reached 430 million yuan, accounting for the highest proportion in the B2C market of China's jewelry products, reaching 32.8%, and the proportion of diamonds and nine diamonds accounted for 5.7% and 7% respectively.

The diamond bird ranks sixth in the "2011 China's most investment value e-commerce enterprise top 50".

There is no shortage of capital behind this.

In May 2007, Xu Xin of today's capital hit 5 million dollars to become a first bird investor.

In second, October, diamonds raised 10 million dollars from today's capital and LIAN strategy.

It is said that when Xu Xin invests in a new industry, the trick is to "invest a lot of money at first, so that the enterprise can run up and occupy the market quickly, and the market share or popularity will be 2-3 times the distance from the second, making it difficult to catch up."

In fact, the second round of financing for diamond birds is mainly used for expansion, including the construction of experiential shops and marketing in the whole country.

At present, diamond birds in Shanghai, Beijing and other 12 first tier cities experience shop number reached 12, which contributed more than 80% of its revenue.