Editor’s Note
This article is based on an interview with Nir Hollander, CEO of Gem Stone King, detailing the company’s journey from its 1903 founding in Belgium to its current global operations, including its pivotal move into e-commerce in 1999.
Company History and Global Operations
Nir Hollander, CEO of Gem Stone King, first introduced the company’s history:
“Gem Stone King was founded in Belgium in 1903, relocated to Israel in 1966 to operate from the Israel Diamond Exchange, selling diamonds worldwide. In 1999, the company established its New York headquarters in the United States. That same year, we seized the e-commerce opportunity and became one of the first to sell diamonds on eBay, where we have now operated for 16 years. Over a century of traditional diamond manufacturing and trading, combined with 16 years of e-commerce experience, has created Gem Stone King’s enduring legacy. Today, GEMSTONEKING jewelry is produced worldwide, including in China, the United States, and Thailand. However, the U.S. still holds an advantage in certain high-tech processes and gold manufacturing. The company is well-established in the U.S. jewelry industry, catering to market demands across various price points and grades, both online and offline. Leveraging over a decade of experience on platforms like eBay and Amazon, Gem Stone King has transitioned to developing and selling accessible luxury products, achieving significant success in recent years. When entering the Chinese market, we found unique consumer demands, with customers willing to spend more on jewelry. Therefore, our designers have specifically adjusted product strategies for China.”
U.S. Diamond Market and Global Expansion
Nir Hollander further discussed Gem Stone King’s position in the U.S. diamond market:
“In the online market, in 1999, we partnered with eBay to pioneer an online custom diamond ring system, introducing high-value diamond sales via the internet for the first time. In the U.S. market, customers choose diamonds based on various categories, not overly concerned with product color grades, but rather focusing on preferred styles, sizes, and colors. In China, however, consumers primarily recognize ‘GIA’ or national standard certifications. Yet, in recent years, the Chinese market has begun to accept diamonds of different qualities, colors, and prices, indicating a maturing diamond market. To date, the company sells Gem Stone King products on 16 platforms, including eBay, Amazon (across U.S. and European sites), Rakuten Japan, and Tmall Global. We now have tens of millions of users worldwide choosing GEMSTONEKING jewelry.”
At the conference, Nir Hollander showcased Amazon, one of the company’s highest-volume sales channels. He stated:
“In recent years, we have launched on Amazon UK, France, Canada, Germany, and China. The company has grown rapidly, especially through Amazon’s global reach. eBay is where we started in e-commerce, but it now represents only part of our business. Before 2009, we sold only diamond and gold products. Subsequently, based on market demand, we developed silver jewelry and accessible luxury lines. As one of the top online jewelry sellers in the U.S., we were invited by Alibaba in July last year to open the Gem Stone King flagship store on Tmall Global. Our 925 silver + colored gemstone and K-gold + colored gemstone collections are key accessible luxury series we offer Chinese customers. We also introduced officially licensed Hello Kitty series and colored diamond products. Naturally, all first-batch products launched performed excellently in global sales. Additionally, the high-end custom Charlie Hollander luxury series is part of our offline business. Notably, a diamond chess set collected by the Queen of England is listed among the world’s top ten luxury items, further demonstrating Gem Stone King’s brand strength.”
Macro Data and Market Insights
Furthermore, Nir Hollander shared some macro data at the conference:
“Since 2012, China’s GDP growth has surpassed that of the United States. Historically, China’s export figures have far exceeded imports. However, import data is now gradually increasing. The average annual growth rate of global per capita online spending from 2011 to 2014 was 20%. In China, per capita online spending was $318 in 2011, rising to $852 in 2014, an increase of 167.92%. Looking at global online shopper numbers, there were 178 million in 2011, 374 million in 2015, projected to grow to 423 million next year. Chinese consumers constitute a significant portion of global cross-border shoppers, and many global merchants are now highly interested in the Chinese market.”
Challenges in the Chinese Market
Finally, he addressed the current major challenges:
“Operating on Chinese platforms is completely different from overseas. Language, detailed product descriptions, and operational models are entirely distinct. Many factors influence product sales in China, such as trust and brand image. Regarding the most critical aspect, customer experience, ‘Customer is King.’ Our choice is to offer a global synchronized 15-day no-reason return and exchange policy.”
Nir Hollander concluded his speech with a proverb:
“It takes ten years to grow trees, but a hundred years to cultivate people. Gem Stone King was founded in 1903, now 112 years ago. Charlie Hollander and Nir Hollander’s commitment to integrity and value orientation has not only built GemstoneKing but also declares to all customers that Gemstoneking is founded on integrity and pursues quality. With Jewish heritage flowing in its veins, GemstoneKing does not engage in any form of games, focusing solely on providing sustainable products and services. We believe this will open a new era in China.”