Summary
I agree wholly with this analysis. Blue Nile's method of diamond buying is also used by many of the web sites that are eating into it's core business. The Blue Nile web site is a very cold and dull site and women are not attracted to a cold pale blue environment. They also lack sufficient information on the merchandize and also a lack of selection. The market place is changing and the core of the business is changing as well. Too many other internet companies have copied Blue Nile and are taking away some of the business they depend on. Retail stores are begginning to sit up and take notice, so now you have stores like Jared's which are usually 6000 sq. ft in size, complete factory and sales all in each location. Price is not the absolute end value to jewelry. Being part of a persons family and trusted as such is just as important to the customer. Jules Rabalais
Analysis
Internet jewelry sales may be slowing, but keep in mind that internet sales have been growing by approx. 24% per year. What retail chain can boast of this performance. Currently, internet sales account for approx. 34% of all jewelry sales. That is a huge chunk of the jewelry market.
Jules Rabalais
