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ENGAGEMENT RINGS INDUSTRY OVERVIEW
PROJECT FINANCIAL MODEL
Around хх% of the world population has an internet connection today. In 1995, it was less than 1%. The first billion was reached in 2005. The second billion — in 2010. The third billion — in 2014.
Global retail ecommerce sales—including online and mobile commerce—reached $х.хх trillion in 2015, accounting for х.х% of total retail spending. By 2019, eMarketer expects worldwide online sales will more than double to $х.ххх trillion, making up хх.х% of total retail spending.
In 2015, х.хх billion internet users ages хх and older—хх.х% of internet users worldwide and хх.х% of the population—will make at least one purchase via a digital channel.
The jewelry industry seems poised for a glittering future. Annual global sales of €ххх billion are expected to grow at a healthy clip of approximately х percent each year, totaling €ххх billion by 2020. Consumer appetite for jewelry, which was dampened by the global recession, now appears more voracious than ever.
Online jewelry sales are only х to х percent of the market today, with substantial variations across regions, brands, and types of jewelry. According to forecast this number will reach 10 percent by 2020 at least for fine jewelry. As for fashion jewelry, McKinsey interviewees predict a slightly higher online share of sales, in the neighborhood of хх to15 percent by 2020.
Online engagement rings market is growing constantly. Researchers from Emory University determined that the average price comes in at right around $х,ххх. According to The Knot, the average amount spent on a ring in 2015 was $х,ххх, an increase of roughly $ххх over 2014. Approximately хх% of couples shell out more than $х,ххх on a ring. In 2015, the average cost of a «luxury» engagement ring was $хх,ххх.
Browsing in jewelry stores for an engagement ring is time-consuming, not to mention it can be uncomfortable if you’ve got a salesperson hounding your every step. That’s why approximately хх% of brides and grooms say they do their ring-buying research online instead.
We offer a project of a market place, where all the data from different engagement rings shops will be collected on one website and a customer will be able to compare prices and other features of a ring in one place.
Competitors: there are no competitors like the proposed project, only online engagement ring shops and big marketplaces like Amazon, but they are not strong in the object.
Advantages of a marketplace
1) It’s hard for customers to compare prices of engagement rings in different shops now and they will be able to do this on our marketplace; 2) Our marketplace will be certified, so that customer will not worry about his purchase; 3) Customer doesn’t have to put his data into lots of different shops, he’ll need to choose criteria once and will get all the possible variants; 4) We will guarantee delivery of a ring; 5) We will provide detailed content about the product; 6) We will specialize only on this category of product, thus differing from shops and big other marketplaces. 7) The market will be more transparent.
We plan to start the project in Germany and then expand to Europe (first 3 years), later US, Asia, Russia, Latin America. First supplier: Stichnoth jewelry — can deliver everything for first orders and cover the products.
MAIN PROJECT COEFFICIENTS
TOTAL NEEDED INVESTMENT: ххх ххх EUR
PAYBACK PERIOD: х years and х months
EBITDA MARGIN: 2nd year — х%, 3-rd year — хх%, 4th year — хх%, 5th year — хх%.