Management attributes this success to its continued web site innovations, including its interactive diamond search. In addition, by building their own interactive resources, competitors are making it as easy for their customers to browse their websites as it is to walk through their doors.
This Blue nile strategy slightly lower than the typical independent specialty jeweler who spends about 5 percent of sales on promotions and advertising. The Company is looking to expand internationally, which means a build-out its infrastructure—fulfillment operations and electronic commerce services.
This is visible through the healthy increases in the volume of traffic to our website, as well as our conversion rates during Q1. The increase in net sales was attributable to strong growth in all product categories.
Although unit volume and unit prices increased, gross profit as a percentage of net sales was Wedding bands are tremendous, probably our number 2 product category. Sterling silver performed incredibly well, great growth during the quarter.
In our view, higher diamond prices from suppliers adversely impacted gross margin, too. Yet, in its 10Q regulatory filing, Blue Nile commented that net sales and results of operations were still highly dependent on the demand for diamonds and diamond jewelry, particularly engagement rings.
Men grow cold And we all lose our charms in the end.
In the last two years, Blue Nile proved to have the highest online visibility of any jewelry retailer across paid and organic search listings. In our view, the online jewelry market is not as fragmented as when Blue Nile was first-to-market five years ago. On the conference callCFO Irvine said, all categories were very strong….
Blue Nile has historically spent about 4 percent of revenues on marketing and advertising, a level that management says will continue for the foreseeable future.
Operating income as a percentage of net sales increased 20 basis points in the quarter to 5. Then if you look at non-diamond jewelry, we had great growth there.Blue Nile (NASDAQ:NILE) recently reported net sales of $ million in the first quarter, representing year-over-year growth of 34 percent.
The increase in net sales was attributable to strong. Blue Nile in the News Blue Nile continues to push 'webroom' concept after going private, naming new CEO The Puget Sound Business Journal reports on Blue Nile's sixth Webroom, which is opening this fall in New Hampshire.
Strategy 3 Weakness: Concentrated Supplier Base Suggestion: Implement new contracts with more suppliers. Justification Currently Blue Nile has a concentrated supplier base.
The company’s top three suppliers accounted for approximately 21%, 21% and 25% of the company’s total purchases in the fiscal year , and respectively. As Chief Executive Officer, Jason leads Blue Nile’s strategy and long-term vision, and works with his executive partners to align merchandising, technology, marketing, and customer service efforts in order to provide the best possible experience and value to.
Blue Nile Inc. has adapted two fundamental generic strategies, which include focus strategy and differentiation strategy. Combining business model together with these strategies determines Blue Nile Inc.'s position in the jewelry market (Porter, ).
Blue Nile has adopted a best-cost provider strategy; as a best-cost provider, Blue Nile earns a competitive advantage in the market, by offering more value for the money at a lower cost than competitors.Download