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Most people are well aware of the wholesaler concept within the business world, nevertheless most people do not realize that the dynamics of different industries vary quite significantly when it comes to wholesaling and this is especially true for the diamond industry due to the way that companies related to the precious stone industry operates.
To start off, wholesalers within this particular industry, wholesalers make up about 30% of the entire businesses within the diamond value chain. These ‘wholesale entities’ are generally independent entities owned by families based on the fact that 90% of wholesale diamond companies are owned by individual families.
Within the context of a business’s value chain a wholesaler is in essence an intermediary who generally purchases goods in bulk direct from producers and resells to other businesses (B2B) at wholesale price who in turn sell to consumers at a higher price.
However, within the diamond value chain, the wholesaler’s role is a little different as wholesalers do not buy diamonds from the mines that the diamonds are mined from, instead they buy diamonds that are already cut and polished in large quantities and only then sell to large jewellery retailers or independent jewellery stores who do not possess the capital nor the capacity to purchase large quantities of diamonds.
Also, another factor is the price of diamonds are not calculated in pieces or kilograms, instead they are valued based on clarity, colour, cut and carat which are the 4Cs that determine the value of a diamond. The diamond wholesaler assorts the diamonds into different categories based on the 4C’s. The needs of the entities that conduct business with diamonds wholesalers differ significantly.
For example, the wholesaler might purchase an entire parcel of small 0.01ct diamonds and then separate high quality diamonds from the mid and low-quality diamonds that may needed by jeweller who sell engagement rings and other diamond jewellery. At the same time watch manufacturers on the other hand may require specific diamond sizes that fits into watch bezels. High-end jewellery retailers in turn may only be interested in the best cuts diamonds that possess the highest clarity for their jewellery.
Another critical role that wholesalers play also include facilitating and managing the logistical aspects of exporting or importing diamonds, certification transfers and also examining new opportunities with retail agents who may not possess the network for obtaining diamonds or the resources that increases their negotiating power. The entire diamond industry that used to be a monopoly (monopolised by De Beers for the most part of the 20th century) is now an oligopoly which mainly revolve around ALROSA, De Beers, Debswana Diamond, Rio Tinto Diamonds and Dominion Diamond.
However, lately, the arrival of synthetic or lab grown diamonds has shaken the industry to the core as many new players have infiltrated the industry and the acceptance of lab grown diamonds by consumers in general has limited or reduced the power that these companies had over the industry.
Diamond wholesalers are currently playing both sides with slightly more focus on lab grown diamonds due to the higher demand for these diamonds that are equally beautiful and have the same atomic structure at a much significantly lesser price.
Contact Info:
Name: Steve
Email: Send Email
Organization: WHOLESALE DIAMONDS DIRECT
Website: https://www.wholesalediamondsdirect.com.au/
Release ID: 89134044
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