The crisis-proof business model of the digitally native company BAUNAT
HONG KONG, Nov. 20, 2020 /PRNewswire/ -- Belgian diamond jewellery brand BAUNAT proves that in times of crisis, businesses can still flourish. As a digitally native company, BAUNAT is ideally geared, in addition to traditional physical appointments in their showrooms, to holding virtual appointments or advising customers by phone, email or chat. Customers can enjoy the personal and high-quality video calls via ZOOM, counting on the personal advices of BAUNAT experts and "step" into any showrooms to discover diamond jewellery collections, whenever and wherever they want.
On top of photos and videos available in BAUNAT website as visual support to view the diamond jewellery, clients can now enjoy the Virtual Trial function to see how diamond engagement rings look on their hands. Thanks to this future-oriented possibility of creating personal contact even over greater distances, BAUNAT is accessible to clients not only in or around the cities of their showrooms, but to clients from all over the world.
In addition to their online strategy, the brand is also enhancing their offline accessibility. On top of their existing showrooms over important cities in Europe such as Amsterdam, Antwerp, Düsseldorf, Geneva, Paris and Zurich, in 2018 the brand opened her very first showroom in Asia. Located in 20F, Central Tower, No. 28 Queen's Road Central, Hong Kong, the BAUNAT HK showroom operates as a strategic starting point to scale up their business in the Far East.
Even during the most difficult moment in the summer of 2020, the brand opens a new showroom in the heart of London, on 84 Brook Street in Mayfair, the luxurious and exclusive centre. "As a brand, you have to move forward," says Steven Boelens, one of the co-founders of the brand.
As an E-commerce brand specialised in online sales of diamond jewellery and investment diamonds, this is what sets the company apart, especially in times of crisis, including the current crisis. While most of the long-established and traditional houses got into trouble because they were forced to close their sales areas and present a less strong presence on their online platform, everything at BAUNAT could go on as usual.
"At BAUNAT, we focus on a target group of smart buyers, who prefer to inform themselves," says Boelens. "Clients are becoming increasingly adept at comparing retailers and finding out information about e.g. diamond quality. DNVB*s are responding to today's consumers. Because we are digitally native and therefore agile, it was relatively easy for us to make adjustments when the pandemic hit."
MADE IN ANTWERP
BAUNAT insist on quality. Their jewellery is designed and made in Antwerp by experienced craftsmen who create each piece of jewellery with the necessary precision and work according to traditional methods using the best materials. They strive for excellence in everything they do, and that is the reason around 3,000 customers have already given them a perfect 5/5 rating on the independent customer's experience sharing platform Trustpilot, making them the best rated diamond (jewellery) retailer on the market.
DIVERSIFYING TO INVEST INTELLIGENTLY
On top of its emotional and esthetical value, diamonds - the major component in jewellery, have already proven their security aspect for investment purposes, as they offer protection against any credit risks of banks or financial institutions, currency fluctuations and inflation. But not only are diamonds considered as secure – crisis resistant – investments, moreover the macro-economic law of supply and demand indicates a structural increase of the diamond prices on the world market.
Especially in times of crisis, the demand for alternative investments shows an upward trend, because investors often look for financial stability through more conservative and more resilient investments.
WHY INVEST IN DIAMONDS DURING THE CRISIS?
"In times of crisis, we see a sharp increase in demand for investment diamonds. The current period is no exception. Clients are looking for ways to optimize the long-term security of their portfolios and are quickly finding alternative asset classes such as gold or diamonds. These categories are well known Consistent and resilient to crises, and since they are actively traded, they offer comparatively high market liquidity. One could choose gold, which certainly has many advantages, but we believe that the mobility and versatility of diamonds gives them an advantage as an investment," shares by Boelens, the co-founder as well as Diamonds Operational Director of BAUNAT.
"If you don't expect quick profits or unrealistic returns, it just doesn't work that way," continues Boelens. "However, all signs point to a positive future development for investment diamonds. Although they are considered a safe haven, they offer much more than just security. Studies by renowned consultancies such as Bain & Company confirm that due to the lack of new diamond mines, global demand continues the supply exceeds. We therefore assume that the price upward trend will continue in the medium to long term. And it is the combination of these interesting attributes that makes an attractive offer, especially in times of economic downturn."
"In general, we have noticed that demand is increasing, especially in the German-speaking market, the leaders in Europe," continues Boelens. Over the past 4 years, the average value per sale has increased from $4,000USD (around $30,000HKD) to $6,400USD (around $50,000HKD). So customers are showing more and more willingness to invest larger sums and are looking for premium products. Demand is also growing steadily in higher investment classes such as $ 20,000USD ($156,000HKD)- $ 100,000USD($780,000HKD). But that's not all, large investors with budgets of $ 200,000USD ($1,560,000HKD) to $ 400,000USD($3,120,000HKD) are turning to BAUNAT more and more, as they find the unique, smart business model appealing.
WHY SHOULD AN INVESTOR BUY THEIR DIAMOND ONLINE?
According to Boelens, BAUNAT Diamonds' online business model offers its customers a very personal service that is tailored to their needs. Since BAUNAT offers diamonds directly at the source, have optimized their warehousing and sell via the Internet, they can offer both investment diamonds and high-quality diamond jewelry at the best possible prices.
In short, for those who are looking for a safe and highly mobile long-term investment with an attractive upturn, diamonds should definitely be on their radar. Investment diamonds are usually bought loose or in a piece of jewellery, and no other investment products can provide such as emotional and esthetical value, as a gift or inheritance.
The Belgian diamond jewellery brand BAUNAT is known worldwide for its high-quality diamond jewellery and excellent service. Thanks to purchase at the source, smart stock management and digital marketing, they can offer their jewellery at an unseen price-quality ratio. The BAUNAT customer is a 'Smart buyer'. People who opt for premium quality in all its facets (materials, product, finish and also service and transparency), but who are not prepared to pay for inefficient or intangible elements that are not reflected in the product they buy. More info on www.baunat.com or www.baunatdiamonds.com.
*Digital native vertical brands (DNVBs) are companies that were born online and sell and ship their own products. They often focus and specialize in a single area and focus on digital channels in order to establish their position in the market. They can compete on price because they eliminate the middleman in the purchase and production process and sell directly to the consumer. This way, they deliver the end product to the customer up to three times faster than the average e-commerce retailer. Since 2012, more than $3 billion has been invested in D2C (direct-to-customer) brands, and research shows that one in three US consumers plan to make a third of their purchases from D2C brands. (Econsultancy, 2018)
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