Businessweek

Blue Nile, Inc. operates as an online retailer of diamonds and fine jewelry. The company offers its products for sale through the bluenile.com Web site in approximately 40 countries and territories worldwide. The company has the following significant wholly-owned subsidiaries: Blue Nile, LLC (LLC), which serves its customers in the U.S., Canada and Asia-Pacific; Blue Nile Worldwide, Inc., which serves its customers in Europe; and Blue Nile Jewellery, Ltd (Jewellery), which operates a customer service and fulfillment center in Dublin, Ireland. Product Offerings The company specializes in the customization of diamond jewelry with its ‘Build Your Own’ feature that offers customers the ability to customize diamond rings, pendants and earrings. Its merchandise consists of engagement and non-engagement products. The engagement product category includes gold or platinum engagement rings with a diamond center stone and loose diamonds. Its non-engagement product category includes rings, wedding bands, earrings, necklaces, pendants, bracelets, gifts and accessories containing precious metals, diamonds, gemstones, or pearls. The company offers approximately 100,000 independently certified diamonds with specified characteristics in the areas of shape, cut, color, clarity, and carat weight. The company purchases diamonds on a ‘just in time’ basis from its suppliers when a customer places an order for a specific diamond. It then assembles the diamond with a ring, pendant or earring setting from its inventory into customized diamond jewelry according to its customer’s specifications. The company offers a range of non-engagement products to complement its selection of customized diamond jewelry. The company’s Web site showcases approximately 100,000 independently certified diamonds and styles of fine jewelry, including rings, wedding bands, earrings, necklaces, pendants, bracelets, gifts, and accessories. Seasonality The company experiences seasonal fluctuations in demand for its products. Its quarterly sales are impacted by various gift giving holidays including Valentine’s Day (first quarter), Mother’s Day (second quarter) and Christmas (fourth quarter). As a result, its quarterly revenue is the lowest in the third quarter (as a result of the lack of recognized gift giving holidays) and highest in the fourth quarter. Intellectual Property In the U.S. and certain other countries, the company has registered or have applications pending for ‘Blue Nile,’ the BN logo, the Blue Nile BN stylized logo, ‘Build Your Own Ring,’ ‘Build Your Own Five-Stone Ring,’ ‘Build Your Own Three Stone Ring,’ ‘Build Your Own Diamond Jewelry,’ ‘Build Your Own Diamond Pendant,’ ‘Build Your Own Earrings,’ and ‘It Starts With The Diamond In Your Mind’ as trademarks. The company has registered the domain name ‘bluenile.com.’ Competition The company’s competitors include retail jewelry store chains, such as Tiffany & Co.; online retailers that sell jewelry and online jewelry retailers, such as Amazon.com, James Allen, and Brilliant Earth; department stores, chain stores and mass retailers, such as Nordstrom and Neiman Marcus; online auction sites, such as eBay; catalog and television shopping retailers, such as HSN and QVC; discount superstores and wholesale clubs, such as Wal-Mart and Costco Wholesale; and Internet shopping clubs, such as Gilt Groupe and Rue La La. History Blue Nile, Inc. was founded in 1999.