Is penetrating into the jewelry market as difficult as extracting precious gems from within the rocks surrounding them? Maybe not …when one is able to change the business mode of the sector.
The recipe is as simple as always: understand one’s product, address market expectations and cleverly combine marketing, technology and the cost structure.
Understanding precious stones
What gives precious stones their fascination is the secret architecture of their interior world, its beauties and marvels. One discovers clearness, brilliance, fantastic scenes, deep water, enchanted gardens, grotesque masks, strange ruins and splendid crystal palaces about which Pliny the Elder (1st century AD) already spoke with passionate admiration.
But beyond its beauty, rareness or permanence, a precious gem is above all a personal belonging which has the power to attract and to carry within it the fondest memories and moments of exceptional joy; certain gems are even able to absorb and assimilate the happy destiny of several generations.
Understanding this mineral universe, dwelling within its secret architecture and the profound sentiments it carries, is essential to the values of Gemmyo.
Building an offer of exceptional and audacious value
An exceptional proposition: conceive your own jewelry in participating in its creation, from the selection of the stone to its mounting. Define your ring in choosing the color you prefer amongst the precious gems with such enigmatic names as: Tourmaline, Tanzanite, Topaz, Amethyst … Have it set on the mounting of your choice (silver, yellow, pink, or white). Jewelry becomes a game, particularly when the truly artful combinations developed by Gemmyo expand your choice to more than 1200 possibilities.
An audacious proposition: to establish an online jeweler – following the example of the New Yorker, Blue Nile (330 million dollars of sales revenue in 2010) – whose business relies on several advantages, putting foremost client relationships and marketing ahead of that which weighs down the classic model of a jeweler.
Judge for yourselves: Gemmyo, is above all a master of the web (www.gemmyo.com) and a structure of compressed costs (Gemmyo has no salesroom and little inventory).
Yet there is also an aggressive web marketing strategy (social networks and blogs), relying upon a very Parisian design creation, for a maximum international impact.
In the end, a cocktail of ingredients well distributed by a remarkable team, sculpted in the image of its business model : six associates speaking French, English and Hindu, with skills equally prestigious and complementary : coming from the Gemological Institute of America, Normale Sup, HEC, ESCP, Centrale, and Harvard. A team whose talents are equal to the value proposition just as striking as powerful: « There is no longer any need to go to the place Vendôme in order to find the jewel of your dreams ».
The team is tailor made for the startup, with forecasts and value equal to the ambition.
Valuing a true trademark
The growth perspectives of Gemmyo, in the very fragmented jewelry market, should yield sales revenue of nearly 4 million € with a gross margin of around 40%.
This allows Gemmyo to be valued at nearly 8 million € in 3 years’ time. Its pre-money value (1.3 million € today) thus offers a return to investors of around 80% per year.
A beautiful perspective for a startup that wants to raise 225 000 € in exchange for 15% of its capital; capital in which a well-known web expert has already invested.