DoNews feature in September 10th (reporter Xiao Kefeng) recently, in an interview with the BLOVES wedding ring network founder, CEO Cao Lin told donews.com. He said that with the online promotion and offline sales model, as of BLOVES orders up to August 2010 BLOVES 100-200 every day, the average daily sales have exceeded 1 million yuan, will soon be able to meet the requirement of IPO.
BLOVES wedding ring network founder, CEO Cao Lin
Cao Lin said the jeweller 1998 when there was no thought and the Internet. He said that in 2000, diamond inlaid jewelry chain industry is barbaric growth". Almost all the jewelry merchants are staking their claims, the most prominent non jewelry shop mall shops. The computer was then used to do the report, look up quotes. After a period of commercial people began to realize that in the mall to sell diamonds, although the gross profit is good, but the cost is too high to affect the profit, such as shopping malls rent on a swallowed up more than 30% of sales. How to cut costs to improve profits, become the consensus of many jewelers.
Cao Lin’s choice is to abandon the traditional shopping malls to switch to the Internet e-commerce methods. He has two reasons: first, to reduce the middle link, such as shopping malls, so that the cost has been reduced, thus increasing the price competitiveness of the product, the so-called "the same diamond, half the price". Secondly, through e-commerce, it is easier to achieve personalized custom diamond jewelry.
at the end of December 2008, Cao Lin led the management team and the Fudan University two students started BLOVES wedding ring network. They have to make a breakthrough in price, has the slogan: "round the world lovers dream of diamond wedding ring", "let the people can not afford to buy a diamond ring, diamond ring to afford to buy a small diamond wedding ring; let people afford a big diamond ring".
industry has a doubt about this low price tactics, that the network of diamond sales profits lower than traditional. Cao Lin to reporters calculations, such as pricing principles for general ring online selling cost +10% profit, compared with the traditional model, to lower the price of 40 – 50%, 30 – 40% lower gross profit, net profit to 5 – 10%, but the online shopping money week is about 4 – 6 times the traditional model. From the return on investment, we are much higher than the traditional model".
back to line
Cao Lin in the shop at the same time also did not completely abandon the line shop, diamond is expensive consumer goods, consumers should make my heart at ease, the line shop is temporarily unable to replace. In fact, other diamond shops such as diamond birds are also aware of similar problems, have begun to build a line of experience store.
Cao Lin said, BLOVES>