Natural Color Diamond Jewelry: An Affordable Solution to Low Margins

Presented By: Natural Color Diamond Industry Association (NCDIA)

Speakers:

Barbara Wheat, Executive Vice President, NCDIAMichael Hakimian, Senior Manager, Almor Designs

Natural Color Diamond Industry Association (NCDIA)Founded in 2003

• Not-For-Profit Trade Membership Association• 130 members - worldwide• Wholesalers, Retailers, Affiliates• Goal: “Educate and promote global awareness and

desire for natural color diamonds”• Education, Marketing Materials, Networking… and More

NCDIA Overview

• Prestige and Consumer Credibility

• Education

• Industry & Local Marketing Support

• Networking & Communication• In-store Events, Trunk Shows

• Special Promotions

• Product Sourcing

• Special Offers From Affiliate Members

Benefits of Joining NCDIA

Natural Color Diamond Jewelry: An Affordable Solution to Low Margins

Presented By: Natural Color Diamond Industry Association (NCDIA)

Michael Hakimian Senior ManagerNatural Fancy Color Diamond DivisionAlmor Designs

• The Jewelry Industry Landscape: The Problem of Low Margins

• Opportunities in the Natural Color Diamond Business are Due to High Margins, Customer Excitement, High Growth Potential, and Affordable Selections

• How to Get Involved and Grow Your Sales in the Natural Color Diamond Business

• Color Diamonds Education Basics

What We Will Be Covering

The Jewelry Industry Landscape: The Problem of Low Margins

Low Margins in White Diamonds: • Pricing Structure in Place to Value White Diamonds

• Due to Its Wide Use, the Market is Very Familiar with White Diamond Pricing

• Diamond Trading Websites Within the Trade, and Websites Outside of It

• Dumping by Diamond Dealers Struggling for Liquidity

What’s Going on in the Natural Color Diamond Business

High Margins, Customer Excitement, High Growth Potential, Affordable Selections

Natural Color Diamond Jewelry: A Path to Higher Margins

Why Natural Color Diamonds Give Us Higher Margins?

• No Industry Accepted Pricing Structure For Color Diamonds

• Market is Less Familiar with Color Diamond Pricing and Value

• Color Diamonds are More Rare (Supply)

• Customer Excitement: Demand Continues to Increase (Hollywood Stars, Auctions, Top Jewelry Companies Advertising)

• One of a Kind Feel

• Allure of Luxury

High Growth Potential of Natural Color Diamonds

High Growth Potential of Natural Color Diamonds

Affordable Selections In the Color Diamond Business

• Natural Color Diamond Jewelry is Affordable, so Affordability Should Not be a Barrier to Entry

• NCDIA Research Indicates that the “Sweet Spot” for retailers is $2,500-$50,000 (Retail Prices)

Prices shown are examples only.

$5,000 Retail

Tiffany’s – 0.02cts Pink/ 0.08ctw; Price: $4,900 

Prices shown are examples only.

$10,000 Retail

Prices shown are examples only.

$20,000-30,000 Retail

$50,000 Retail

Getting Started and Succeeding In Natural Color Diamonds

• Join the NCDIA as a Retail Member (Education, Advertising, Sourcing)

• Educate Yourself and Your Staff

• Promote it Constantly and Promote it in Very Visible Places

• Build a Respectable Inventory (Variety of Colors, Price Points, Sources)

• Do Trunk Shows

• Stress to Employees to Show the New Color Diamond Inventory to All Your Customers

• There are a Variety of Natural Color Diamonds Produced by Nature and Each Stone is Unique and One-of-a-kind

• Out of every 10,000 Carats of Diamonds, only 1 Carat of it is Fancy Color Diamond

Color Diamond Basics

The rarity and value of each natural color diamond is based predominantly on the stone’s rarity and richness of color. They

represent about 3% of GIAs intake.

Source - Natural Color Diamond Association

The color is a combination of Hue, Tone and Saturation. Stronger colors are typically more valuable. GIA grades

these stones from “Fancy Light” to “Vivid”

Source - Natural Color Diamond Association

There are also colors which contain more than one color in their description which creates an endless palette of

colors.

Natural Color Diamond Jewelry: An Affordable Solution to Low Margins

Presented By: Natural Color Diamond Industry Association (NCDIA)

Speakers:

Barbara Wheat, Executive Vice President, NCDIAMichael Hakimian, Senior Manager, Almor Designs