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If an opportunity represents a good strategic fit, Yarrul will assume the risks and expenditure associated with developing a new online gemstone or jewellery channel. Yarrul will employ its highly established and proven experience, business processes and backend infrastructure to develop a professional and highly credible online brand. As has been shown time and time again in every corner of the globe, outsourcing non-core functions is a smart business decision. It allows businesses to leverage the expertise and economies of scale that a specialist provider possesses. Just as few tier one producers in the jewellery and gemstone industries operate at the traditional retail level, there are few tier one producers engaging in business-to-consumer e-commerce business models. There are some sound reasons for this. In the real world, there are numerous issues involved with business-to-consumer e-commerce, including direct consumer marketing, preventing payment fraud, and managing small quantity order fulfillment and logistics. The jewellery and gemstone industries present additional special needs, such as quality yet realistic photography, proof of delivery, insurance, secure warehousing, auditable inventory management and so on. These types of issues consume considerable managerial time, and despite significant capital and operating expenditure, there is no guarantee of achieving large-scale online turnover. And in any event, tier one producers who embrace e-commerce and compete with their existing channel members will jeopardise many important relationships. Those tier one producers looking to their wholesalers or retailers for business-to-consumer e-marketing will be similarly disappointed. Just as few tier one producers can successfully engage the online consumer market, subsequent reseller tiers rarely possess the required specialisation. Furthermore, allowing multiple resellers to compete against one another in the marketing of the same products simply increases the total cost which must then be absorbed into product turnover. The brand dilution caused by multiple online resellers for the same product also requires consideration. The commercial solution to these issues is to outsource business-to-consumer e-commerce to a single specialist provider. This frees the tier one producer to focus on what they do best – developing their products and traditional reseller channel. It provides the tier one producer a supplementary channel through which to earn a growing slice of e-commerce revenue. Importantly, it also greatly enhances the prospects of a highly successful e-commerce partnership, which is a powerful symbolic benefit. If you’ve read about our business model and believe your products represent a good fit, let’s talk. All discussions will be kept entirely confidential. |
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Copyright © 2000-2008 Yarrul Gems International. All rights reserved. Whilst all due care has been exercised in the preparation of the above information, it may no longer be current and should be not be relied upon without obtaining confirmation from Yarrul Gems International. "Eopal", "Opals Guaranteed", "Ammolite Guaranteed", "Let Your Imagination Decide" and the oval-shaped "e" are trademarks and/or registered trademarks of Yarrul Gems International. |
