New Business Startup & Retail Industry

[morphius]

I'll start by apologizing if this is the wrong place to ask this sort of question.

I've spent almost the last two years "getting into" pearls and I believe I'm ready to take the next step by launching a business. However, in preparing my business plan (for the bank), I cannot seem to find any information regarding the estimated value of the retail pearl jewelry industry in Canada/USA, it's health or trend...nor can I find any information that might assist in realistic start-up sales projections for a new online retailer (assuming the website is supported by online advertising of moderate effectiveness).

If anyone has any insights or experience they'd be willing to share, it would be greatly appreciated.

 

[Caitlin]

Morphius
Buy a copy of Elisabeth Strack's book, "Pearls". Cost $120 plus postage. Look around for a copy in the Books section of this forum.

You may have to create the estimates yourself, by at least one trip to Hong Kong, let alone Japan or China. Whatever level you buy into, you should be able to turn at a profit. So go there and get a realistic estimate of what it would cost to buy in at various levels by visiting booths and bargaining. We have a number of peoples' experiences recorded here. The retail business in Canada and the US, aka the "brick and mortar" stores have extremely small yet costly inventories compared to the typical online dealer such as the the ones who are members of this site. This fact has changed the face of the retail pearl industry.

Good luck in your endeavor. I hope you report back.

 

[morphius]

Hi Caitlin
Thanks for pointing me towards the "Pearls" book - I'll definitely look into it - and I do already know I will be able to turn a profit. I've already been China (Hong Kong and Beijing), visited a couple markets and farms there. I'm also receiving high quality pearls from China and Japan as a result of past trips and hooking up with old university colleagues who are Chinese nationals. I'm also already seeing sales - just not online sales because I'm not online yet - but my business plan is due before I'll have time to get this information. So I was hoping that with all the online pearl big-wigs here, I figured many most likely started out small before going online...and was hoping they'd share how much of a change it was in terms of sales increase; but I also understand that's probably fairly personal so i understand.

Perhaps someone knows the estimated value of the retail pearl jewelry industry in Canada/USA though?

 

[pattye]

Maybe the CPAA would have some of the information you need?

 

[Unusual Pearls]

i remember a few years ago seeing some numbers at the world pearl forum in dubai. it was like a few hundred million but not sure if that was in the usa or global. if i can find the thumb drive that was given out with all the presentations maybe i could the figure for you.

 

[jshepherd]

I think that estimate might be a bit low for the US. I can think of two companies on the East Coast that do about $100m combined, and they deal almost exclusively in the low end of the market.

 

[Unusual Pearls]

100 million combined? That's encouraging to hear. I think with the Internet people have become more knowledgable in pearls and hence more interested in pearls.

 

[Unusual Pearls]

Ok, i found the Dubai World Pearl Forum thumb drive. Sonny Sethi from the Cultured Pearl Association did a presentation. He has US pearl and pearl jewelry sales at $1.7 billion.
But pearls make up only 2% of jewelry sales . My memory is lousy.

 

[Caitlin]

Were you going to do something with that thumbdrive? I mean, only facts- no photos?

 

[morphius]

Ok, i found the Dubai World Pearl Forum thumb drive. Sonny Sethi from the Cultured Pearl Association did a presentation. He has US pearl and pearl jewelry sales at $1.7 billion.
But pearls make up only 2% of jewelry sales . My memory is lousy.

I assume what is meant is that $1.7 billion is 2% of all jewelry sales yes? Because 2% of $1.7billion in sales seems awfully low at $3.4million.

 

[jshepherd]

I assume what is meant is that $1.7 billion is 2% of all jewelry sales yes? Because 2% of $1.7billion in sales seems awfully low at $3.4million.

2% of $1.7b is actually $34m, I believe. That is still not even close.

I think what he was saying is exactly that. $1.7 billion is 2% of all jewelry sales.

 

[morphius]

2% of $1.7b is actually $34m, I believe. That is still not even close.

I think what he was saying is exactly that. $1.7 billion is 2% of all jewelry sales.

LMAO - stupid decimal! its a real good thing that math wasn't one of my strong subjects in university otherwise that could be embarrassingly funny.

 

[jshepherd]

I can't say I've ever been a big math fan either!

It would be interesting to know where he got that information. This was quite a few years back and we were just dipping into the recession, so I imagine that number has dropped a bit lately.

 

[morphius]

Oh yes - i'd love to know where how the number was derived. I know I spoke with anyone who would respond to my many many many emails...from CPAA, to JCK, GIA, CJA and more...plus quite a few private people who were referred by organizations..and no one was able to provide me with any numbers that were not at least 4-5 years old. I was referred to several government and industry publications which may have had information pertaining to that...but I could not afford the very high prices. Needless to say, I had to submit my business proposal with industry financial information; and this missing information was cited as one of the reasons for the business plan being rejected - such is life

 

[Unusual Pearls]

Were you going to do something with that thumbdrive? I mean, only facts- no photos?

As you can see it is a beautiful baroque thumb drive but with a dyed blue color. I am thinking it come from China.

 

[Unusual Pearls]

ok ok. i get it what you are asking for Caitlin...without further ado...
but like jeremy said that forum was in 2009. the world economy is different now.

 

[Caitlin]

Thanks! LOL, that was funny!!!!

 

[Unusual Pearls]

Needless to say, I had to submit my business proposal with industry financial information; and this missing information was cited as one of the reasons for the business plan being rejected - such is life

yeah that could be a problem when asking someone for money to invest. generally the people with the $$$$$ are numbers people, not pearl people. and even though pearls are an asset their value is not as easily quantifiable as gold or a diamond which is more commoditized.

 

[pattye]

Thanks, Unusual Pearls, that's very interesting!