I Like Innovative, Disruptive Businesses
http://www.cfo.com/article.cfm/13003936/c_13015052
We have a very-low-inventory model. While traditional bricks-and-mortar retailers were concerned with excess inventory and were scaling back their selection, we could expand our offerings without taking financial risks. We have exclusive relationships with diamond and jewelry suppliers; what you see on our Website can be found only on Blue Nile. We have more than 50,000 diamonds available at any time, but it's [mostly] a virtual inventory, so we don't have the carrying cost of what would be $500 million to $600 million of inventory. That allows us to be nimble, to have a just-in-time purchasing model. We operate in a negative-working-capital [environment] where we buy a diamond to satisfy a customer purchase and two days later the raw diamond is turned into an engagement ring. That's just an amazing process to see.
- Marc Stolzman
Useful link:
www.bluenile.com
Definitely a unique business model. Great interview. Thank you Kate.
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