Rare Pink

Idea

Introduction

Rare Pink is a fast-growing online retailer of bespoke engagement rings and fine diamond jewellery. In the aim of refining the customer experience, Rare Pink offers a bespoke design service and both an online and in-person route to market – a clicks and bricks business model.

Offering over 100,000 ethically sourced diamonds and the ability to design your own ring, customers can then choose to meet an expert in one of our showrooms to get advice, perfect their design, receive a 3D printed replica and touch and feel the product before buying. Of our consultations, 88% have converted to sales – so almost 9/10 people who walk through our doors go on to purchase their ring from us. Based out of London, Rare Pink already sells across Europe, the US and UK.

Intended impact

Many people start their engagement ring shopping journey online. Despite the long list of benefits of shopping online (more competitive prices, convenience, choice, privacy), less than 10% of sales are currently completed online. While ‘online’ is fast growing, 69% of people who purchased on the High Street, said that was because they were able to touch and see the ring before committing to purchase.

In addition, the same research suggests that 42% of all rings purchased are bespoke or customised, in line with a growing trend towards made-to-order products, which allow customers to express their individuality. 20 years ago technologies such as 3D printing and CAD design were not widely available, making bespoke jewellery not easily accessible. Now these products take a few days to manufacture, at a cost comparable to mass-produced rings and jewellery.

The two trends, together, have lead to an opportunity to transform customers’ shopping experience into one that is almost entirely driven by their needs.

The hybrid model allows customers to choose how they want to communicate: online, via phone, chat or in person. The ability to design a bespoke piece with Rare Pink means they also have complete freedom of choice so far as the product goes. Our lean, low overhead model allows us to offer this refined shopping experience to a large and growing target market, making a Rare Pink piece both aspirational and accessible.

Substantial accomplishments to date

Since raising investment on Seedrs in 2014, Rare Pink has grown sales from £110,000 to over £750,000 pa*, with continued improvements towards profitability.

We have a strong pipeline of engagement ring sales as well as an existing customer base for repeat purchases.

We have built a solid foundation through inventory and CRM systems, relationships with large jewellery and diamond manufacturers and a growing list of talented designers.

We have shown that our marketing capability is scalable with sales from the US growing to 20% since expanding to New York last year. Traffic to the website has increased by achieving top 3 rankings on Google for many popular search terms including “bespoke engagement rings” and “custom engagement rings”. We have reviews on TrustPilot with an average score of 9.5/10, have been featured in Metro, Elle, Glamour, the Guardian and the uk.gov website and finally, in December 2014 we were awarded Best New Jeweller by the British Jewellers Association.

* According to unaudited management accounts.

Monetisation strategy

We believe that market trends indicate an increasing opportunity for a ‘clicks and bricks’ hybrid model offering the ability to be found online, combined with a bespoke ring design and a in-person experience to touch and see the product or to talk to an advisor before buying.

Our average order value is £3,000, higher than other UK-based online competitors, suggesting the hybrid model allows customers to trust us more than online-only propositions. By offering a bespoke design service we build a rapport with our customers and offer them a product they cannot easily compare with competitors.

We believe there is currently a gap in the market for hybrid companies that focus on improving the buying experience. Online propositions have business models competing almost entirely on price and while high street stores offer trust and service, their high stock requirements and overheads make them extremely uncompetitive on price.

There are business model barriers to entry for competition and it is difficult for new entrants without prior experience and contacts in diamond supply, design and manufacturing.

We have found that we can remain agile through lower overheads and stock requirements using a direct supply chain and fewer sales staff. Our automated CRM (Customer Relationship Management) system increases the efficiency of our sales staff.

Due to the above, new locations can be opened at a far reduced cost, allowing us to expand faster.

Our innovative use of 3D printing and CAD design allows us to create bespoke products at a cost comparable to that of mass-produced jewellery.

Our model is lean. Our cost structure is lower than offline, closer to that of ‘touch-less’, better converting and provides lower barriers to new store expansion. Rare Pink’s ‘clicks and bricks’ approach, when rolled out across the UK, US and eventually China, we will capture the hearts and loyalty of our customers with a superior personal shopping experience.

Use of proceeds

Following our first successful Seedrs investment, we have built systems in marketing, sales and operations and hired the right people to ensure a scalable business.

We have further refined our ‘clicks and bricks’ model and we are now ready to grow. We hope this will be achieved by expanding our product range to include wedding bands and other jewellery and increasing our website conversion rate through an even further improved user experience.

We will also invest into getting more people ‘through the door’ through a strategy of growth in:
• Search engine optimisation
• Pay-Per-Click
• Social media campaigns
• Affiliate marketing
• PR and Brand Reputation

The ability for customers to visit our stores in person, significantly boosts sales, this is why, with further investment, we wish to replicate what we have built in London in more cities around the world with a focus on the U.S. and then China.