NEW PEARLS OF WISDOM

By Ann Kerrigan

“I have everything I want--except more pearls,” is Jeremy Shepherd’s response to the paramount success of his multi-million dollar enterprise, PearlParadise.com.  After eight years of consecutively increasing annual sales over 100%, Shepherd predicts 2006 will be no different and should reach at least 15 million. But unlike the typical online success story, PearlParadise.com is changing the pearl business.  Shepherd has created a new breed of customer, storefront and operation.  What began as a fluke pearl purchase while on layover in Beijing has resulted in permanent changes for the Pearl industry. In the past, purchasing retail pearls would take at least an hour and produce an expensive strand selected from very few options.  Pearl Paradise.com is challenging the flattering lighting and brand recognition of retail by providing optimal prices and infinite supply. Within his 1400 cubic foot vault, Shepherd has “enough pearls to fill a jewelry store the size of Wal-Mart.”   Furthermore, due to Shepherd’s strict quality standards, the lowest grade of pearl offered at PearlParadise.com is comparable to the highest commercial grade found in many retail jewelry stores. Thus at PearlParadise.com, customers receive higher quality gems for only 20% of the average retail price.

So how does PearlParadise.com procure such marvelous gems?  Their business chain is shortened not only by selling directly to customers, but also on the supply end.  Shepherd began his business by purchasing his pearls directly from pearl farms while on layovers as a Northwest flight attendant. This unusual start proceeded to evolve into a continuous stream of successful entrepreneurial ventures. With the recent purchase of a pearl farm, PearlParadise.com is the first retailer of pearls to have complete backward integration of the supply chain.  In doing so, PearlParadise.com perfects quality control.  As Shepherd explains, “Early harvesting is a problem that has been plaguing the industry for years. Pearl farmers are not willing to take the risk of leaving their harvest in the oysters as long as they should be left. They are able to pull them out early and earn a quick return on their investment. This has hurt our business in the past, and made it difficult to secure the quality of merchandise that we require.”

By doubling the culture time, which in effect will double the thickness of nacre, Shepherd will drastically change industry standards. The current top tier product will become substandard, and the prices for wholesale operations of pearls will increase when farms are forced to alter their culture times to compete. Shepherd’s new purchase will change Akoya pearl standards in the same way he changed Freshwater pearl standards in 2006. Shepherd knew each pearl farm set aside a reserve of Freshwater pearls that are uncommonly round and perfect enough to be sold separately at a premium. By using his buying power, Shepherd negotiated a deal to purchase the reserves of loose Freshwater pearls in kilos instead of singularly.  He then contracted a factory to drill and match these gems into strands of the highest quality Freshwater pearls available. This past summer, Shepherd launched his “Freshadama” line featuring rounder and more lustrous Freshwater strands than previously seen. Having taught himself fluent Japanese by the age of 14, knowledge and mastery come easy to Shepherd. The biggest challenge of PearlParadise.com is to make the consumer world believe that such rare gems could be so affordable. His answer: with knowledge is power. Shepherd assembled a staff of certified pearl experts to rival the few jewelers that have more than a rudimentary pearl knowledge.  Shepherd explains, “If a customer has a question, they will be directed to an associate who would literally be able to teach a class on pearls.”

Furthermore, the PearlParadise.com Website features a wealth of pearl information that teaches customers critical value factors. Other pearl sites have followed Shepherd’s lead by incorporating similar educational information into their online storefronts. However, Shepherd is again a trailblazer, as he maintains an exclusively educational pearl Website and forum, www.pearl-guide.com. This Site is the largest source of online pearl information in the world, with literally thousands of pages of information and discussions.  It is also a completely open forum that features unbiased discussion. Though brand name staples like Mikimoto and Tiffanys have also brought their pearls online, they cannot compete with Shepherd’s pricing.  Armed with knowledge of overtones and value factors, customers are straying away from brand as their watermark for a high quality pearl. 

Jeremy Shepherd is an entrepreneur in the purest sense: he assumes unprecedented risk to be the first.  

Though PearlParadise.com was not the first website to feature pearls, Shepherd was the first owner to pursue rigorous backward integration into the supply chain.  This strategy culminated with the purchase of a pearl farm that will change Industry standards of Akoya pearls.  Shepherd was also the first to uniquely craft exceptionally high quality freshwater pearl strands and PearlParadise.com is still the only online seller to invite unbiased discussion.  Eight years of consecutive growth are testimony to Shepherd’s successful quest for knowledge and innovation. He is truly a man of pearls, and has been referenced by the Gemological Institute of America for his expertise.  In an ironic twist of fate, the very crammed parking lots and persistent cell phones that result in online shopping are securing us with unique gems for the perfect price.  In the words of a satisfied PearlParadise.com customer, “I can’t believe someone like me can afford pearls like this.”