New Technology Development on Canadian Jewelry Industry – Part 6

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3.2.6 Growth Prospects

The Ontario government has taken the next step is to expand existing and open new domestic enterprises in diamond industry. As a result of an agreement in principle between the McGuinty government and De Beers Canada (operator of first diamond mine in Ontario) has been reached that the cutting and polishing will be expanded in Ontario.

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The agreement explicitly states that 10 percent of the Victor Mine's production will be available in Ontario for cutting and polishing. Rough stones, the approximate cost of $ 25 million will be transferred from De Beers in the buyer, known as Sightholders.

De Beers Canada will invest $ 6.7 billion into the Canadian economy, which will have a positive economic impact on GDP and contribute to sustainable growth in the First Nation (Native North American) communities in the James Bay and Northern Ontario.

Experts identified a number of jewelry niches that provide the opportunity to achieve growth in business above industry average. Below are the following suggestions from industry experts:

The first company in Ontario for cutting and polishing facility diamonds, Crossworks Manufacturing, opened in Sudbury. Stones valued at approximately $ 25 million will be cut and polished at the site of Sudbury.

Increase in the number of Canadian women in business, social and political circles, with income to buy luxury jewelry, lead to increased demand for high-end jewelry.

Silverware, the less expensive of the precious metals, is becoming again popular among various groups, so necklaces, rings, earrings and even cufflinks are in demand.

Beautiful jewelry to delight the eye, dress up with any outfit. Very popular in 2009 were wide cuff bracelets, crystals, massive chains, pendants and bright stones. Bracelets and charm necklaces are still popular for all age groups.

Wedding industry is booming, and most couples do not reduce the cost of wedding rings. Popular wedding jewelry trends for 2009 are vintage / antique furniture, colored stones such as pink diamonds, as well as products of palladium and platinum. Pearls and jewelry are popular with bridesmaids and flower girls, or even for thankful gifts.

To order jewelry through the company's website (online) is gaining popularity. Clients like to see different 3D angles and points of view, and therefore, they are also pleased to make possible changes in buying jewelry.

Lifestyle changes and urbanization contributed to the increase in the consumption of jewelry that distributed primary through the jewelry stores. The industry experts expect the demand in the coming years will grow by repeating the index dynamics Gold - 100 Oz (COMEX).

Computer-Aided Design

Consumer demand has decreased dramatically in the last months of 2008 and early 2009 and began the period of jewelry sales. Lower consumer spending has also pressured retailers to reduce their prices in order to meet the new market price-bracket. However, the dismal economic situation has led to greater efficiency in certain sectors of industry.

For example, many jewelers have turned to the Computer-Aided Design (CAD) programs in order to gain economies of scale. This approach is more cost effective because it reduces the time required and labor necessary to market and deliver the goods.

In other words, new development design can be done in much less time, because suppliers are now able to make significant changes just by the click away of a mouse. CAD software is the way forward for the jewelry industry. Those who are trying to start a business in the jewelry industry is urged to get into CAD and learns new software, as such skills will provide dividends in the future.

3.3 Internet Technology Development

3.3.1 E-Commerce

Under the e-business is understood all kinds of business relationships over Internet, including: the purchase and sale, supply, product sharing agreements, factoring, leasing, design, consulting, engineering, investment contracts, insurance, exploitation agreement or concession, as well as banking services, joint activities and other forms of industrial and business cooperation.

Interaction subjects e-business via electronic means of communication and information processing, which are based on hardware and software for corporate networks and the Internet. E-commerce related to those kinds of e-business that are directly conducting the trade transactions through the Internet.

E-commerce in general is beneficial to all market participants: producers, customers and vendors. First group expands the market for goods and services, the second group have an opportunity of greater choice, and the third group serves as intermediaries between producers and buyers.

Cheap and convenient Internet services allow companies to benefit from the experience, information and resources from variety of companies located around the world. Internet increases the competitiveness of small enterprises on the international market.

3.3.1.1 Sales

Electronic stores can be divided into three categories: show window, vending machines and internet shops.

Show-Window

Showcase is a logical extension of usual website where shown updated information about products and services. The information updates as necessary. In essence, the Internet - Window provides only an advertising feature. To make a purchase after visiting the online shop window the user goes the usual cycle: he / she calls or visits the company, makes a payment, than the company delivers products / services.

Vending Machine

Vending machine, unlike show windows, provides a real trade. The system of trading in some way integrated with the organization's business processes. Information about your order can be processed in different ways: either automatically or manually by a manager.

Automated Shop

Automated shop in the general allows you to automatically accept the order, to get invoice, to receive / to make payment, as well as to generate a request for delivery to the buyer.

3.3.1.2 Marketplace

Marketplace was created for sales over the Internet. Market participants can choose from an unlimited number of auction bids the most suitable offer without paper work. The entire document flow automatically is performed by the marketplace. It also keeps an archive, forms financial statements, analyses supply and demand, forms customs declarations and various required papers for customs, etc. Marketplace selects the optimal method, time and route of delivery, helps in opening a credit line and takes out insurance, choosing the best method of payment.

Reasonable centralization of administrative functions - a single system for all forecasting, planning and calculations, the scheme of business - again, leads to substantial savings. Use of trading platforms leads to lower operating costs and optimization of business processes for market participants because of reduced time for order processing and time for getting a product to the market. Small organizations are given equal opportunities to access a wider, potential and global market. Marketplaces may include an electronic catalogue, the electronic auction and electronic exchange.

Electronic Catalogue

Electronic catalogues were created to consolidate the demand of buyers with offers from sellers. The structure of the catalogue allows larger number of buyers to buy from large number of sellers. As a result, small companies have access to large retailers so they can get substantial discounts. The buyer can also quickly find a product or service needed most. The seller reduced the cost to find a buyer.

Electronic Auction

The electronic auction was created for elimination of surplus production from sellers. The structure of auction allows a large number of buyers to buy from a limited number of vendors. As a result, the sales cycle of retailer is accelerated, storage costs of surplus goods is reduced, the sellers sell directly to the buyers (excluding a chain of intermediaries). The buyer purchases goods / services at a price which is usually below a market average price.

Today, more than 200 million people buy and sell all that they need, through an auction eBay. Network auction site eBay has opened the possibility of earning extra money, provided the impetus and support for small business due to eBay many multimillion-dollar companies were born. Soon, competitors entered the market; the best known competitors are Yahoo!, Auctions, Bidz.com, Amazon, ePier, OnlineAuction.com, Auction.com and uBid.com. Many stars of the modern Internet marketing began theirs trading activity from auction eBay.

Electronic Exchange

Electronic exchange finds buyers and sellers from the same industry. The structure of exchange allows a large number of buyers to buy from a large number of sellers (in the same industry). As a result, products surplus are sold at market prices, emergency purchases are made at prices which are not higher than market prices.

 

3.3.1.3 Payment

Payment for goods and services via Internet may be done through the payment system. Banks offer to their customers the account management services via Internet (remote banking) that can be used for payment.

Remote Banking

Remote banking service system interacts with the customer via Internet and can be determined as "client-bank" system. It can be used for any financial transactions, including for purchases at electronic stores. The system includes following services:

  • Check accounts;
  • View the checks which were cleared in the past;
  • Funds transfer from one account to another.

Remote banking allows to transfer payments for goods and services in real time (the recipients of these amounts can be both people and companies).

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Payment Systems

Electronic payment systems can be divided into two types: credit and debit. Besides, electronic payments can be divided into anonymous (in case if it is impossible to trace the transfer of money in contract of usual payment by cash) and non-anonymous (in case if a bank and a seller can get personal banking data of client, including details of purchase).

Credit System is a traditional analogue of system which takes credit cards for payments via Internet. Since it uses Internet for transmitting data, security services are applied. In the debit system for payments is used digital equivalents of checks and cash.

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