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At its 2015 Forevermark Forum, the De Beers diamond brand revealed two new programs designed to help its retail partners retain relationships with online shoppers and build up their diamond inventory.
New York—Forevermark has revealed two new programs designed to help its retail partners stay connected with online shoppers and build up their diamond inventory.
Presented at its 2015 forum, Forevermark’s first new venture is an e-commerce program, which the brand says is the first of its kind in the diamond industry and will allow retailers to retain a full margin on a sale.
Though more and more consumers are beginning their jewelry shopping online these days, it’s still only a small percentage that actually purchases purely online, with brick-and-mortar stores continuing to play an important role, Forevermark said. Its new e-commerce business looks to capture that consumer online and strengthen their relationship with local retailers.
Consumers now will be able to shop the brand’s full product offering online at Forevermark.com, and when they are purchasing will be given a choice of local jewelers based on geographic location. Customers then will then have the option of having the merchandise shipped directly to them at home or to the jeweler to see in-store.
Regardless of which they choose, the jeweler partner receives the full retail price, with Forevermark acting as the “facilitator,” as the brand refers to it, bringing the customers, jewelers and products together.
“The transaction is all done through the retailer,” Forevermark U.S. President Charles Stanley told National Jeweler. “So far as the consumer is concerned, they’re buying from that retailer. We think it’s important that the retailer retains the relationship with the customer,” so that the jeweler can help guide them to the right product.
The company said that it will pilot the e-commerce program in California in the spring.
Forevermark also unveiled a second program at the forum that also benefits its retail partners, a partnership with diamond investment advisory firm Diamond Asset Advisors for an exclusive leasing program for Forevermark diamonds.
“We were aware that our partners are faced with challenges in financing their diamond inventory in an environment of tighter banking regulations and increasing competition,” Stanley said.
The Diamond Asset Service Program, currently available for retail partners, allows jewelers to have the flexibility to build inventory based on a 100 percent loan-to-value basis, where they usually can only get a maximum of 50 percent, Stanley added, effectively giving them an unlimited ability to buy Forevermark diamonds on a 100-percent basis.
Retailers will pay a monthly interest rate and only have to
repay the loan for the diamond when it’s sold, or can repay the loan earlier with no penalty.
“Unlike consignment, they will control the Forevermark diamond inventory without any risk of it being called back. It gives them great flexibility to build up their inventory so they can meet seasonal demand and/or buy into, say, larger diamonds that they otherwise couldn’t afford.”
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