Chapter 419: Monopoly Giant Delbys

………… After listening to Zhou Bin's words, after the three of them glanced at each other, Wen Lin first said: "Mr. Zhou is strict, just like Mr. Zhou said just now, the three of us are engaged in the mining and processing of diamond rough and gold ore, and we have a natural cooperative relationship with Mr. Liu's rose jewelry, so what Mr. Zhou said, we are naturally willing!"

Listening to his words, Shan Guozhi and Sun Yang also nodded in agreement.

"I wonder how many diamonds Mr. Liu's rose jewelry can eat in a year?" asked Sun Yang.

At this time, Liu Dong's heart can be described as very excited, he knows too well the value of being able to get diamonds and gold from China to a jewelry company that aspires to become a leader in the industry!

Taking diamonds as an example, the largest diamond producer in the world is now the monopoly enterprise that once controlled the world's diamond resources in the nineteenth century, De Beers' central sales organization (CSO), which holds 10 diamond "appreciation" activities every year, not all diamond merchants have the opportunity to participate in this appreciation activity, only the "sightholders" carefully selected by De Beers have the opportunity to participate.

The few sightsee dealers are all strong in the industry, with large cutting factories and a huge sales network. For example, Hong Kong's famous Chow Tai Fook jewellery is one of them.

But in front of De Beers, the founders of the Diamond Empire, these diamond tycoons have no negotiating power. De Beers matches the diamonds according to quality and colour and seals them in small boxes that can only be seen by sightholders on the outside of the boxes. They can only choose to buy or not to buy, and there is no room for bargaining. You can't pick or complain about the diamonds in the box.

Founder of Harry Winston, one of America's top jewelry brands. At one time complained about De Beers' "evil". He was immediately kicked out of the list of sightholders. But Winston couldn't find a new source of diamonds, so he had to admit his mistake and return to the list of sightholders.

The obedience of the sightsee is certainly beneficial, and having a stable source of diamonds means considerable profits. Sightholders buy the billets from De Beers, polish them at cutting centers in Antwerp, Belgium, Tel Aviv, Israel, sell them to large wholesalers, and then move on to middlemen. Finally, there are the retail jewelers.

And now Rose Jewelry, which has just joined the ranks of jewelry, is a jewelry retailer, and all the sales of finished diamonds are obtained from middlemen, and this price has increased several times compared to the ex-factory price of the rough diamonds.

According to information provided to the U.S. Securities and Exchange Commission by the U.S. jewelry retailer Zare, the gross profit of its jewelry products is more than 50%, and the price of rare pink and blue diamonds is three to four times the wholesale price. If it's a diamond sold by luxury brands like Tiffany & Co., Cartier, etc., the price will only go up even more.

Although De Beers abandoned its monopoly on diamonds by the end of the 20th century, De Beers still produces 40% of the world's diamonds. Alrosa, which owns the other 40% of Russia's own, plus diamonds owned by Australia's mining giant BHP Billiton. Still an indestructible alliance.

The diamonds of this alliance are sold to sightholders at a monopoly price, passing through cutting centers, jewelry wholesalers at all levels, manufacturers, retailers, shopping malls, and various markups before finally reaching consumers.

Rough diamond sales from the mine are around $6 billion a year, but over the same period, the jewelry retail industry has generated more than $56 billion in sales.

In the traditional department store model, 33% of the price consumers buy diamonds is for suppliers, 42% for middlemen and brands at all levels, and 25% for shopping malls.

This also means that if Liu Dong can get through the suppliers and terminal sales, and omit the middlemen, then his rose jewelry can eat 67% of the profits, even if you remove the money spent on dredging up and down dots, this profit can reach more than 50%, which is enough to tempt the profits of crime!

It is precisely because Liu Dong knows these things that he is extremely excited at this moment.

So when Sun Yang asked him how many diamonds he could eat, Liu Dong said without hesitation: "I want as much as I want, cash transactions, never in arrears!"

Hearing Liu Dong's words, several people showed surprise on their faces, they didn't expect Liu Dong, a start-up jewelry company, to have such a big appetite.

Of course, the reason why Liu Dong dared to open this mouth was naturally sure in his heart.

Judging from the number that Wang Qiang collected for him during this time. From the 90 years to the present, China's diamond consumption has increased from less than 100 million Chinese dollars 10 years ago to more than 8 billion now! Even if the factor of inflation is excluded, this growth rate is still amazing, and with the rapid development of China's economy, this demand will continue to grow.

China's proven diamond reserves and production rank first in Asia, tenth in the world, with an annual output of about 200,000 carats, even if the output of Liao-Ningwafangdian accounts for half of it, and the gem grade accounts for 50%, then the diamond rough that can be sold in China will definitely not exceed 80,000 carats, and 80,000 carats is not even a fraction of the world's consumption of 20 million carats, even if the current domestic consumer market is far from enough. Therefore, even if Liu Dong eats all the 80,000 carats of diamonds, he will not suffer.

"Mr. Liu, you have to think about it carefully, diamonds are not cheap even if they are rough!" Sun Yang said with a stern expression.

"Sun Dong, please rest assured, since I dare to say this, I naturally have this strength!" Liu Dong said confidently. Although the Huaxia coins in his hand have been almost spent now, there are still more than 300 million US dollars in his hand, and with the cover of Qingyang Venture Capital, this money can also flow!

In addition, now the value of diamonds per carat ranges from 3,000 ~ 10,000 according to purity, cut, and color, and all 80,000 carats are eaten, which is only 500 million Chinese coins, which is not a difficult thing for Liu Dong.

At this time, Zhou Bin, who was the first to connect Liu Dong with the Tower Bridge, no longer spoke, his task has been completed, and what kind of agreement can be reached next depends on Liu Dong himself!

After listening to Liu Dong's words, Wen Lin and Sun Yang glanced at each other, and the former said: "Since Mr. Liu is so confident, then we will not hide that most of our company's diamond blanks have been sold out this year, and we can squeeze out two kilograms of diamond blanks for Mr. Liu at most!"

Hearing this, Liu Dong was secretly disappointed in his heart, the diamond mine in Liao-Ningwafangdian was what he was looking forward to the most, with high reserves and good quality, originally he thought that with Zhou Bin's help this time, how could he get 20,000 carats, but he didn't expect that it would only be two kilograms to hold his breath, and it was not enough to plug his teeth! Even Zhou Bin was a little dissatisfied at the moment, was his face worth two kilograms?

Noticing the expressions on Liu Dong and Zhou Bin's faces, especially the latter, Wen Lin and Sun Yang's hearts jumped, they didn't dare to snub this Zhou family lineage, and they didn't dare to sell Guan Zi at the moment, so they hurriedly continued: "Next year, next year, our company can provide Mr. Liu with 20,000 carats of diamond blanks, and after the expiration of most companies' order contracts the year after tomorrow, we can increase this transaction amount to 30,000 carats!"

"We are the same, we can leave 10,000 carats of diamond blanks for Mr. Liu's rose jewelry next year!" Sun Yang hurriedly said.

"Thank you so much!" Liu Dong got up and thanked him.

The annual 40,000 carats of diamonds can bring Liu Dong a profit of nearly 600 million yuan, and this figure will rise as the price of diamonds climbs.

And what could be more exciting than making money.

"This is really an unexpected joy!" Liu Dong secretly said in his heart, he came to the birthday banquet today.

"Hehe, Mr. Liu is polite!" Sun Yang and Wen Lin hurriedly said politely.

After talking about the diamond order, it was naturally the turn of the gold controlled by Shan Guozhi.

However, compared with diamonds, the state has stricter control over gold, and there are more and more complicated interests in Zhaoyuan, China's largest gold deposit!

After all, diamonds still need to be processed cumbersomely, and gold only needs to be smelted before it can be circulated.

Therefore, even with Zhou Bin's face, Liu Dong can only share two tons of gold in Shan Guozhi's hands, and it may increase in the future, but it still needs to see the opportunity.

But for Liu Dong, two tons is not a lot! At least now the gold business of Rose Jewelry can continue to expand. According to Wang Qiang's plan for rose jewelry, the company's business direction in the future will be based on gold jewelry, jade jewelry and diamonds, and others such as pearl jewelry and ruby sapphire are limited to the source of goods and domestic consumption habits, so they can only be secondary.

"Okay, now that the business is over, let's have a drink!" Although only a verbal agreement has been reached between several people now, and no specific contract has been signed, Zhou Bin believes that there will not be the slightest difference in the matter of having his own appearance.

"Cheers!" Zhou Bin's face naturally has to be given.

After a glass of wine, the atmosphere was obviously lighter than before, and the special wine table culture of the Chinese was fully reflected at this moment, "Xiaodong, then you will entertain Wen Dong and them for me, I still have something outside, so I won't accompany you first!"

"I know, Brother Zhou, don't worry!" Liu Dong naturally knew that if Zhou Bin wasn't for him, I'm afraid he wouldn't have specially brought these people, and it was delayed for more than half an hour, you must know that this is Mrs. Zhou's birthday, and Zhou Bin, as a grandson, has the responsibility of welcoming guests.

After instructing Liu Dong, Zhou Bin confessed to Wenlin, Zhou Yang and Shan Guozhi again, and then turned around and went out.

…………………………………………………………………………………………………… (To be continued......)