Headlines

There’s a Major New Trend in Online Diamond Retail

Millennials are changing the equation.

Published

7 years ago

November 9, 2016

INSTORE Staff

The diamond industry is still trying to figure out the millennial consumer, and the equation is only becoming more complicated.

There’s the question of whether Generation Y is as interested in diamond jewelry as previous generations were. And there’s the issue of whether they prefer bricks-and-mortar retail or e-commerce when they do buy.

And now there’s another factor to think about, Bloomberg reports. When millennials buy diamonds, they might not be in it for the long haul.

The news service explains that for the younger generation, a diamond may be something to own “until you get sick of it, list it for sale online, and buy another one.” As such, a traditional jeweler is not always part of the transaction.

Bloomberg notes that “online startups with alternative inventory” now abound, many of them emboldened by the success of online diamond retailer Blue Nile. Antique stores and independent resellers are also getting in on the online action through sites such as E-Bay and Etsy.

According to Bloomberg, on E-Bay, “antique rings made up 28 percent of the engagement ring market over the last three years.”

Blue Nile, which is being purchased in a $500 million deal by an investor group made up of funds managed by Bain Capital Private Equity and Bow Street LLC, has been feeling the increased competition in net sales and its stock price, Bloomberg notes.

Read more at Bloomberg

When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”