November 10, 1999
Internet Diamonds Changes Identity
After a successful year of venture capital funding and national press coverage, on-line retailer Internet Diamonds has changed its name to Blue Nile (www.bluenile.com) and plans to offer a full line of jewelry.
The site will continue to sell diamonds at 30% off retail, the company's CEO, Mark Vadon, told Reuters. The Blue Nile Web site says the new name "reflects the company's extension into a full line of classic
jewelry for important life occasions."
Internet Diamonds secured its place on many jewelers' radar screens this year when customers began comparing low prices at the diamond Web site with those of bricks-and-mortar retailers. Recent competition from Internet Diamonds spurred a debate about discounting at the Polygon Internet Conclave in Seattle, WA, this summer. (Read related story.)
This summer, Internet Diamonds enjoyed several rounds of funding by important investors, including Kleiner, Perkins, Caufield & Byers, the investment firm that initially funded Amazon.com. Now backed by $42 million in venture capital, the company plans to top its current sales of $1 million per month, according to Vadon. Blue Nile will market to 25- to 45-year-old men using a TV campaign this holiday season, with spots during Monday Night Football and broadcast movies.
- by Stacey King