Even more impressive is Blue Nile’s sales in China: The specialty jeweler’s sales grew 59% there, and Kanter said Blue Nile continues to make great gains there.
“We believe the strategic and successful investments that we have made in infrastructure, usability and awareness, such as the launch of Alipay as a payment type for Chinese consumers, and our title sponsorship of wedding shows in Shanghai, have laid the groundwork for future growth,” Kanter said during Blue Nile’s second-quarter earnings call.
Kanter added that he expects Blue Nile to do $100 million in business in China, and that the company can see that on the horizon.
“We see this market as a tremendous opportunity for long term growth, and we plan to continue with our investments in local infrastructure and in marketing to build awareness,” added EVP and Chief Financial Officer David Binder. “This year, we have increased the level of investment, most directly to expand our presence in marketing channels in Mainland China.”
Also on the call, Binder said Blue Nile’s international business drove $19.5 million in sales, up by 8.9% and equal to 17.2% of the company’s total revenue.
Blue Nile was negatively impacted by year-over-year declines, specifically in the Canadian and Australian dollars, which combined or reduced our sales by approximately $1 million. Binder noted that Canada and Australia were particularly tough markets because the local currencies are so low compared to the U.S. dollar.
But Binder said that in contrast, sales in the Asia Pacific region grew by over 28%, and continues to represent more than 50% of its international revenue.