If an applicant is not making a Contract Proposal for a particular category can the value of the 2010 purchases, for example, $20m of rough be transferred to another category to provide a higher cap? No. Please note that the previous purchases is not the determining factor in establising the supply level. The quality of the contract proposal is the main driver of whether or not an applicant will be supplied.
How can USA clients complete the questionnaire on-line? As before US applicants, without a non-US subsidiary, may wish to use the services of a Broker, or other third-party, to upload the data on their behalf.
How should international brands be accounted for in the market focus question? Where it is not possible to estimate the final retail destination of the diamonds sold to international brands the sales should be declared as a mid-stream sale.
There will be an element of rough dealing in most boxes. Let's say it is below 10%. Will clients have to segment and provide answers to section 3 for this? I would assume that we would go with the majority? If so what is a majority? The name of the game for applicants will be to put forward a convincing case for why the DTC should provide them with the amount of supply they're requesting in their Contract Proposals. For example, if an applicant is requesting $50m of Commercial High, and let's say $30m of that will end up going to a network of US wholesalers with whom it is doing some high quality co-op marketing, $15m will go into the applicant’s own jewellery brand, and $5m is rough rejections that will be sold to the highest bidder. The applicant must decide how much of the activity is excellent without necessarily shoehorning every last scrap of activity into the Contract Proposal. Applicants will NOT get more simply by providing details of standard stock-clearance selling activities. Applicants will in all probability ONLY get supply if they can substantiate the ENTIRE value of their Contract Proposal with value-creating activities from which they enjoy a demonstrable and sustainable competitive advantage.
Will you be assessing the Contract Proposals by band or by box? I think I have a tremendous proposal for using +2ct Fine but I simply can't use the 48grs goods from the same band. Firstly, it's important for you to specify in Section 2 of the Contract Proposal Questionnaire the boxes you require in each band - and the boxes you don't. We promise never to make selection decisions on the basis of offering applicants goods they have not specifically requested. However, if you do request a box, it must be a box whose value you can maximise as per the activities you have laid out in your Contract Proposal. If we offer you supply of any of the boxes you have requested, these boxes will form the basis of your first ITO in the new contract period, and your continued demand for these goods will be important when we come to re-plan ITOs in early 2013, to the extent that supply of the boxes could be withdrawn altogether if demand for the ITO box is not being evidenced.
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