Blue Nile Sparklesfor Your

Cleopatra

• Men: looking for that special gift for your Cleopatra, but don't want to spend a lot of time shopping?

• want to give the “Big Rock” certified ,without spending a mountain of cash for engagement experience ?

INTRODUCTION

Diamonds represent a significant cost.

Surveys show that most shoppers believe jewelry.

Difficulties in Diamond trade :

Why is selling (or buying) diamonds over the Internet difficult?

Trust Wish to see

Rational way to

compare diamonds

The Factors of selling offline :

Only a single store

• BlueNile.com offers you an online selection of about 60,000 diamonds.

• You can buy them cut and polished, or put them into Settings like rings, bracelets, earrings, necklaces, pendants, watches, and broaches that you can choose online.

BlueNile.com :

• Although the majority of visitors to the site are women, about 85% of Blue Niles customers are men.

BlueNile.com :

• In June 2007, Blue Nile sold the biggest item in Internet history, a $1.5 million

The biggest mouse click ever !!!

BlueNile.com :

BlueNile.com :

Although in 2008 and early 2009

• The entire jewelry industry was hit hard.

second half of 2009

•Sales had begun to rebound. • Blue Nile’s revenues were

$302 million.

• Blue Nile’s main competitor :

BlueNile.com :

Blue Nile

Tiffany.comIce.comA

mazonTogether

Blue Nile has simplified the supply-side of diamonds by only ordering.

Blue Nile has cut out several supply-side layers of middlemen.

Deals directly with wholesale diamond owners and jewelry manufacturers.

BlueNile.com :

BlueNile.com :Enlarged the

pictures, added visualization

Improved the search engine

See more precisely what you're building

transact in their local currency

• Wish List : Create a Wish List to save your favorite items in one convenient place. Wish Lists can be shared with friends and family so when the next gift giving occasion comes around, you can send them gift ideas.

BlueNile.com :

How has Blue Nile built its supply chain to keep costs low?

Not much employees

No physical store

Customization of the product

No retailer

Customer have to design to their

test before manufacturing

Comparison :

• A traditional physical store such as Zales would need around 300 stores. Blue Nile achieves $300 million in sales with :

Three web sites

Two warehou

ses

180 workers

What are some vulnerabilities facing Blue Nile?

People tend not to buy more

expensive product over the internet.

How has Blue Nile reduced consumer anxiety over online diamond purchases?

Creating a trust

Information of diamonds

By insuring their product

Knowledge-based environment

Educational guides to diamonds

Guarantee on a return policy

Finally :

Both Tiffany and Zales have online Web sites.

Blue Nile will have to keep a keen watch on its competitors who are not far behind.

PREPARED BY :