=====BUSINES S MODEL ======
Gem Adviser with Inclusions Gem Adviser with Inclusions
• Compares Cuts in Uniform Lighting • Based on Octonus visualization technology • Visualize 3D inclusions shape • Free online exchange of designed / scanned diamonds • Tracks proprietary / patented cuts GAI - Business Logic Publicity Customer Stone Status
Define requirements to future stone Candidates Advertisement of shops and jewelers Collect 3D models fitting the requirements: - Online shops subscription - Himself from Web - Sharing stones by E-mail
Publicity relevant to viewed stones: Compare 3D models by characteristics. Take best ones to Shortlist. - Brands Shortlist
- Cutters Compares 3D models by appearance in same lighting conditions. - Shops
If necessary: ask help on online forum
Purchase
Visit shops to check real stones
Purchase GAI - Candidates
File Edit Item View Help GAI My Choices
Earrings Choice – Main diamond for Engagement ring Liza’s pendant Description Subscribe CandidatesCandidates ‐‐ +12 Short List Engagement ring Main diamond +12 All Filter… New +12 Clear Water Smart Buy Low Price #User_1 164 items from 505 Satellit diamo… +4 Tie clip Shape: Round Hearts & Arrows : Only Include Exclude Save as…
Cut grade: from To AGS0: Only Include Exclude
Carat: from 0.99 To 1.1 Certificate: GIA AGS Other
Color: from To Depth: From To %
Clarity: from To Table: From To % Exit filter
Status Add Date Shape Cut Grade Carat Color Clarity Certificate Depth Size Price Price per Carat Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,724 $4,724 Sources Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,724 $4,724 Observed 06.06.2008 Round Excellent 1.00 H VS2 GIA 59.2% 6.61 × 6.52 × 3.83 mm $4,724 $4,724 STORE Observed 06.06.2008 Round Excellent 1.00 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,424 $4,424 PriceScope.com Observed 06.06.2008 Round Excellent 1.00 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,424 $4,424 Happy Skull Observed 06.06.2008 Round Excellent 1.00 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,424 $4,424 Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,424 $4,424 iDia Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,378 $4,378 FORUMS New 08.08.2008 Round Good 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,378 $4,378 Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,378 $4,378 PriceScope Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,378 $4,378 KNOWLEDGE New 08.08.2008 Round Good 1.01 H VS2 GIA 59.2% 6.61 × 6.52 × 3.83 mm $4,332 $4,332 Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,332 $4,332 #Article Observed 06.06.2008 Round Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,332 $4,332 #Article Observed 06.06.2008 Radiant Excellent 1.01 H VS2 GIA 58.3% 6.61 × 6.52 × 3.83 mm $4,332 $4,332 Colored Gems Observed 06.06.2008 Radiant Excellent 1.01 H VS2 GIA 59.2% 6.61 × 6.52 × 3.83 mm $4,202 $4,202 #Article #Article
SHORT LIST (drag the diamond you like here)
Details Comparison New Rating… GAI - Shortlist История изменений Начало прототипа File Edit Item View Help GAI My Choices
Earrings Choice – Main diamond for Engagement ring Liza’s pendant Description Subscribe Candidates‐‐ +12+11 Short List Engagement ring Main diamond +12+11 Satellit diamo… +4 Shape Color Liza Seller Price Comment Tie clip Round ‐ Excellent (GIA) H WHITEFLASH $12,000 I like it
Asscher ‐ Excellent (GIA)
H USA Certed $8,000 Sources Hmm... Nice Cape Town Revised STORE PriceScope.com Happy Skull Radiant ‐ Excellent (GIA) iDia H abazias $8,000 FORUMS Hmm also PriceScope
KNOWLEDGE #Article Radiant ‐ Excellent (GIA) When he asked about #Article the H color on an EC, he H USA Certed $6,000 Colored Gems says he has no reservations or hesitation … #Article #Article
Details Comparison (3)Comparison New Rating… Ask Forum… Ask Dealer… GAI - Visual Choice
File Edit Item View Help GAI Comparison: Candidates – Main diamond for Engagement ring
STANDARD OF COMPARISON
Hide TOLKOWSKY IDEAL CUT 1.52 ct 1.01 ct 1.01 ct 1.01 ct inclusions (Standard of comparison) $12,000 $4,724 $4,700 $4,424 (Hold F4) The Tolkowsky Ideal cut Clarity Clarity Clarity Clarity has 58 facets of perfectly identical proportions. In Rating: Rating: Rating: Rating: fact, this is the only round Note: Note: Note: Note: shaped diamond perfect in Symmetry, Cut and Polish and allowing the brilliance to radiate from within the stone.
Rate characteristic: Clarity Add to Short List Details =====BUSINES S MODEL ======
Consumer Brands (ʻNext Diamondʼ) Creating Consumer Brand Designed Small diamonds: 0.5 ct - 4.0 ct with OctoNus 1 Octonus cut Customer Feedback design library (stones, up to 100) LightBox in the shop
Octonus and partner(s):
• cut the stone Octonus partner • release grading reports insures • deliver the order stock of roughs
Jewelry shop* has Customer compares 10 cuts (stones): Octonus and standard cuts
in standard lighting: Customer orders Permanent collection: • new cut, for 5 stones, including • on Web-site (GAI) desired Carat, H&A Round, Princess • identify participating shop Color and Clarity*
Franchising * • Short-term collection: • compare cuts in the shop* LightBox 5 new stones, updated
% * Shop franchise includes: % 3d party proprietary cuts Octonus technology, cut samples, LightBox, support, sales % Creating Consumer Brand Designed Exclusive diamonds: 50-100 ct / fancy colors with OctoNus
Customer Feedback 1 Octonus cut design library (models) 3D model with planning
Octonus and partner(s): Partner buys and scans • cut the stone exclusive roughs to • release grading reports obtain 3D models • deliver the order
3D models Customer compares with planing planning options, Customer orders displayed in simulates future stones participating shops* with DC Franchising * % * Shop franchise includes: % 3d party proprietary cuts Octonus technology, cut samples, LightBox, support, sales % Current market situation (recall)
Limited stock of rough Big stock of polished
Customer Cutter Shop
Consignation
Customer is unknown. Pre-cut roughs Polished roughs Consignation (4-6 months) His choice is unpredictable. 1-2 weeks 1-2 months
Money back after sale: • Turnover: 0.5 year - 1 year 6-12 months • Customer choice is unpredictable • Shops have to stock various cuts / clarities / ... • Stock liquidity: low • Credits for cutters to keep up the chain Next Diamond
No hopeless stocks Big stock of pre-cut roughs of polished
Customer Cutter Shop
Order Delivery
Customer makes choice Pre-cut roughs Polished roughs Consignation (4-6 months) 1-2 weeks 1-2 months
Money back promptly
• Low polished stocks: cutter makes what is required • No long consignation: quicker turnover, higher profit • Financial health: Rough stocks have higher liquidity than polished • Consumer feedback => consumer brand => consumer confidence Next Diamond
Big stock of pre-cut roughs increases cutters profit
Current Market
Cut Order Limited choice of roughs Bad fit Example: available instantly Cutter uses 1.01 ct, cushion VS1, H 1.10+ct or VVS or F-G сolor
Next Diamond
Cut Order Big choice of ready roughs Optimal fit Example: (measured, window opened) No material wasted 1.01 ct, cushion VS1, H Higher Profit. Creating Consumer Brand Designed with OctoNus
DELIVERY TIME
0.5 - 4 ct: GRADING 4-6 weeks
Exclusive rough: Stone delivered with grading report • 1-2 months from associated grader which includes Carat / Color / Clarity grades (GIA scale) * Time for polishing is shortcut by rough stock and assures Cut authenticity and allocations plans prepared in advance. • • AGS / GIA certification is up to the customer. As guarantor, Octonus will pay PLACES TO START off price difference if stone obtained lower grade from AGS / GIA. For 2 0.5ct - 4ct: grades low: the difference + penalty. UK, Germany, Italy, France Dubai, India, China, USA
Exclusive rough: London, New York, Dubai, Hong-Kong, Geneva, Moscow, Tokyo Creating Consumer Brand Designed Diamond supply pipeline replaced by diamond cycle with OctoNus
Cut New cuts launched Auction at ‘Cut Expo’ Computer-aided rough planning
INNOVATION SUPPLY
Cut Color & Contest Clarity viewer
Manufacturer or designer make Sales of exclusive new fashion trend branded diamonds
Sales Agent feedback sellers Retail / e-tail CONSUMER agents sell with visual quality tools BRANDING DEMAND * like in watch and car industry =====BUSINES S MODEL ======
Cut Game Cut Game / Web Contest
Active Voters get rewarded Not promoted cuts
Subjective grade: Diamond Diam online community manufacturing Calc Customers TOP 10 Pre-ordered wearing Auction sales distinctive Objective grade: Outside diamonds DiamCalc PR and contractors promotion
IP Protection
Design Earning
Project revenue
Customers: large retailers, prestige brand names, new entrants to the industry
Value: fashion, exclusivity, customer approval, brand visibility
Market: 5-10 new designs / year Interface sample Octonus Philosophy
• Increase profit of Associated Cutters • Invest to existing clients, rather than search for new one
Octonus Their market Increase Profit of They grow faster market share share increases Associated Cutters than Sarins’ increases How to get better margins?
Make exclusive goods
Consumer Brands
Brand value is not affected by raw material prices
Customer Confidence
repeated sales Customer Brand Ladder Loyalty Regular Relevance Trial Awareness
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Gem Adviser with Next Diamond Cut Game
SUPPORT LINE
Cut Show Diamond Cut DOP for Novel cuts Conference presented on Fancy Cuts March 2009 BaselWorld and Lausanne other expos. Thank you.