The value of diamonds lies in their physical properties which make them suitable for multiple applications. Natural diamonds only have a high value if they are scarce in nature. Realizing this, De Beers Consolidated Mines was formed to control the supply of diamonds from mines around the world. The diamond market is influenced by mining production, rough diamond distribution, preparation/cutting and retail markets. The project will focus on the retail markets for diamonds and other high-end jewelry. Jewelry purchases are highly discretionary because they are strongly influenced by adverse trends in the general economy and are measured by consumers' disposable income. The first half of fiscal 2003 can be described as a lackluster economy, lower consumer confidence and an unstable geopolitical environment. However, overall economic conditions and consumer confidence improved in the second half of fiscal 2003, resulting in increased sales. As the economy has taken major steps towards recovery, the jewelry industry represents a bull market. Retailers large and small are exploring expansion opportunities outside of the traditional regional mall location. With this in mind, it is the intention of this paper to evaluate the global strategies of the cyclical retail jewelry industry. In this highly competitive industry and extremely sensitive to the level of consumers' discretionary income and the resulting impact of the type of good purchased, competitors include domestic and foreign corporations and major luxury jewelers, specialty stores, national and regional jewelry chains, and department stores. . To a lesser extent, there are catalog showrooms, discount stores, direct mail providers, home shopping television networks, and jewelry retailers that sell through Internet sites. This is a highly fragmented US market estimated to be worth approximately $54 billion. As a result, the sector is broken down: large retailers represent 10%, jewelery chains with over 100 shops 14%, department store chains represent 12%, home shopping on TV 4%, jewelers independents occupy the largest share with 36% and others (general, various) equal to 24%. (Please refer to Table E) Specialty retailers with the highest sales are Zale Corp ($2.2 billion), Signet US ($1.7 billion), Tiffany ($0.8 billion) other players include Friedman's ($0.4 billion) Whitehall ($0.3 billion) , and Samuels ($.1...... half of paper ......of shipping terms have become the norm that wholesalers extend to their retail partners. A good portion of inventory costs are passed on to wholesalers through these consignment purchases since jewelry is not a perishable commodity like the clothing and shoe industry, it still functions as an asset even though the retailer returns the goods to the wholesaler. The amount of power a retailer has is directly related to the size of their business. Only a few companies control large volumes of these volumes to remain profitable. Thanks to these factors, major retail chains are able to better leverage financing, costs, and payment terms than the rest of the industry. The largest percentage of jewelers can be classified as independent jewelers accounting for 36% of the overall market. Their ability to leverage power comes from their financial credibility in the market. The jewels,.