Monjorino is a small country in Europe, however, its jewellery industry is deemed the most attractive jewellery industry in the world. Jewellery is actually designed to match clothes worn everywhere; church, work, casual meetings with friends, parties and even at home. It is no wonder that many clothing retail shops work closely with jewellery retailers to mix and match clothes and jewellery. Jewellery as gifts is entrenched in the culture of the people of Monjorino.The industry is dominated by jewellery producers and retailers Blue Nile, Zales, Signet, Tiffany and Helzberg who have experienced steady increases in net sales since 2006. Many other smaller retailers exist in Monjorino. Firms in the industry try to set themselves apart by offering extra services to customers. For example, Blue Nile has the popular "build your own" tool that helps customers customise their own diamond jewellery and then view it on the computer before executing the order. They also offer customers flexible financing options, a 30-day returns policy and insurance for jewellery.The industry is characterised by huge capital investments due to the need to fund brick and mortar locations in exclusive areas of urban dwellings, employ skilled and competent store labour, stocks in stores as well as expenditure on security detail, personnel and equipment for safety. The companies in the industry make up for this huge capital investment by producing at maximum capacity and serving customers in North America, Europe and Asia through their subsidiaries. Reputation and brand names are also important in the industry as customers choose to wear reputable brands and look for trusted sources of purchase with strong reputation.Suppliers of diamonds and other precious stones, Guilds, Debeers and Boncos are not as powerful as they once were since many smaller suppliers have also taken up supply of diamonds to the industry. Suppliers sell the bulk of their raw material produce to the Monjorino Jewellery industry though a few have attempted to design and retail jewellery. However, they discovered that they lack the skill and financing to survive in the industry.Supplier relationships with the diamond suppliers and cutters is key to remaining profitable in the industry. The existing firms in the industry have formed partnership relationships with suppliers. By negotiating directly with diamond suppliers and cutters, the jewellery firms in Monjorino are able to reduce their diamond procurement costs by more than 20%. The firms are therefore able to offer lower prices than online retailers of jewellery such as Amazon, Overstock and Biddest, while simultaneously achieving higher profit margins on their products.Online jewellery sellers may appear to pose a threat as a substitute to the brick and mortar shops, however upon a closer look, it is realised that customers really like to see, feel and try on jewellery physically before they make a purchase. Also, the relatively high purchase prices for quality jewellery increases the perceived risk for consumers making purchases online.