Before reading this article, I must acknowledge my limited education and experience in diamond business. Therefore I would appreciate if someone can give me some feedback if some information I give is wrong. This article is written based on my working experience and my small research.
We are familiar with wholesale concept in business. In the diamond industry, wholesalers account for approximately 30% of the independent businesses in the diamond value chain.
Who is really diamond wholesaler or what does diamond wholesaler really do in Vietnam?
First of all, you must take an overall look at diamond value chain.
Mining Company—>Diamond Cutter—>Polished Diamond Wholesaler—>Diamond jewelry Manufacture—> Jewelry retailer—> Ended Customer
In this chain a wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers. Their prices are lower than what the average individual will pay for a single loose diamond because they make their profits by selling in large quantities. We know most of diamond trading wholesaler companies based in some big cities as Mumbai, Hong Kong, and in New York,…
So now look at specific landscape in Vietnam, this chain will work definitely different:
Trading company —> Wholesaler—>Diamond jewelry Manufacture —>(Diamond Jewelry retailer) —> Ended Customer
Trading company —>Diamond jewelry Manufacture (Wholesaler)—>(Diamond Jewelry retailer) —> Ended Customer
In these above chains, trading company always comes from oversea from diamond trading center. Almost of diamond source are from Thailand, Hongkong and Mumbai. Sometimes wholesaler and manufacture could be the same (we can see in chain 2). This model is more popular than other. And Ho Chi Minh is the diamond trade’s largest center.