I am bullish on the future of the diamond business. Three reasons for this optimism ... new discoveries, extending mine life and the increasing demand for diamonds.
- Martin Leake, independent diamond consultant, former head of sales at Grib Diamonds, interview @ Rough-Polished
“People have long bought flashy items because they made them feel good. Now some say those same items make them feel icky,” wrote JCK’s Rob Bates. According to a recent New York Times article a percentage of affluent consumers are moving away from the ‘If you’ve got it, flaunt it’ stereotype. Some even consider their wealth a burden, going as far as hiding the price tag of their recent purchases.
Alrosa’s President, Sergey Ivanov, has joined the board of the Diamond Producers Association (DPA), the Russian miner announced on Monday. Ivanov will replace the position vacated by the former Alrosa VP, Andrey Polyakov, before he left the company.
Independent analyst and consultant on diamonds and the mining industry, and publisher of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky has published an in-depth article on the current state of lab-created diamonds and where the industry goes from here. Reprinted from Paul Zimnisky Diamond Analytics, courtesy of Paul Zimnisky.
Currently, the Federal Trade Commission is considering letting the term 'cultured' be added to these currently accepted descriptions of man-made versions, such as 'lab-created' or 'laboratory grown'. The mined-diamond industry is fighting this addition tooth and nail, while the man-made producers are intent upon dropping any reference to 'laboratory created' or 'laboratory grown' in favor of 'cultured' alone ... In the end it's marketing that is going to make or break the cultivated-diamond industry’s potential to disrupt the natural-diamond market ...
The De Beers Group today announced it will invest more than $140 million in marketing this year - its biggest spend since 2008, when the Group was spending an estimated $100 million annually. The increased investment will be focused on generating further consumer demand for diamond jewellery in the leading markets globally, with the greatest spend targeted in the US, China and India, the company states.
Russian diamond mining giant ALROSA recently announced that it has renewed the contract of Vice President Yury Okoyemov, who has been in charge of the Russian diamond miner's sales policy for eight years. Okoyemov is one of the authors of ALROSA's current system of selling rough diamonds, focused on long-term contracts. This system was introduced after the financial crisis of 2008-2009, when the auction sales that ALROSA previously focused on virtually stopped.
KRC Research conducted an online survey on behalf of the Diamond Producers Association (DPA) regarding US millennial women’s views on luxury goods. The results highlighted three major trends: Long term value both financially and emotionally, Pride in legitimacy of the goods purchased and the expression of self-confidence.
Tiffany & Co. launched their fall advertising campaign, “There’s Only You”, a celebration of personal style and individuality with the faces of the campaign being 6 individuals with various backgrounds in the creative fields. The pieces in the campaign are a combination of past and present, classic Tiffany as well as pieces from the new Tiffany HardWear line.
Independent analyst and consultant on diamonds and the mining industry, and publisher of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky has published an in-depth article on the current state of the diamond industry as it heads into the second half of 2017. Reprinted from Paul Zimnisky Diamond Analytics, courtesy of Paul Zimnisky.
Innovation is the key to sustained success, even for a traditional industry such as the diamond trade. Successful innovation, however, starts with questioning what we do and why we are doing it.
JCK news director Rob Bates takes a look at the resurgence of independent bookstores in the U.S. and sees parallels with independent jewelry retailers: "It’s clear the jewelry industry - and in particular the number of independent jewelers - is shrinking. But that’s true of retail overall. And, until recently, it was true of independent bookstores. If you compare today versus decades ago, the number of brick-and-mortar booksellers has fallen. But the independent segment has reversed that trajectory. The number has risen for the last eight years.
Diamond expert, industrialist and industry analyst Ehud Arye Laniado takes an incisive look at the value proposition of synthetic diamonds, taking their producers and marketers to task on their main selling points. Reprinted in full with the permission of the author.
The Diamond Producers Association (DPA) on June 6 debuted at JCK Las Vegas a print, out-of-home, and digital display campaign extension, complementing the successful “Real Is Rare” TV and digital videos that were released in October 2016. Starting in July, the new ads will appear in weekly and monthly magazines across several verticals, including bridal, lifestyle, fashion, and entertainment.
In their recent addition to the Diamond Insight reports focusing on diamond jewelry demand and emerging trends, De Beers said it expected single women's acquisitions and spend to increase in 2017, leading to an increase in self-purchasing in non-bridal, discretionary jewelry categories, driving incremental demand above and beyond the fundamental driver of demand, namely, bridal diamond jewelry.
According to the Diamond Empowerment Fund their new millennial oriented campaign ‘Diamonds do Good’ had reached three million consumers within their target group. The strategy to spread the word on the campaign includes a revamped website, a targeted media plan which is shared on Hulu, Pandora and YouTube, and an online influencer strategy. DEF said the message of ‘Diamonds Do Good’ is resonating with consumers.
Everlane’s founder, Michael Preysman, who sells classic designs over the internet by promising “radical transparency”, believes he has identified the issues Millennials have regarding provenance and price. He pledges low-cost, high-quality goods made in factories used by designer brands, thus making them more appealing to their consumers. Everlane has a studio in Soho, New York, where shoppers are encouraged to try on the products and then return home and purchase their goods online, an inventive way of combining retail and ecommerce.
The Diamond Producers Association (DPA) announced their intention to spur demand in the third largest diamond market, India, by launching their “Real is Rare” slogan in September. The DPA - an international alliance of the world’s leading diamond mining companies whose mission is to protect and promote the integrity and reputation of diamonds, and the diamond industry - initially launched its “Real is Rare” campaign in the U.S. in 2016.
The De Beers Group made headlines last month when it announced the end of its joint venture with LVMH with the aquisition of their 50% share in De Beers Diamond Jewellers (DBDJ), a move that Chaim Even-Zohar characterizes as, "brilliant and long overdue." He writes, "With De Beers at the helm, the venture will get a realistic chance to succeed.
The Antwerp diamond industry this year is celebrating its 570th anniversary. A document recently discovered in the City Archive identifies the first signs of a diamond trade in the city dating back to 1447.
As the Hong Kong Trade Fairs get under way, all eyes are on the Chinese retail market and their largest contingent of diamond consumers – the Millennials. Since 2015 luxury jewelers have noticed a growing demand for diamonds by Chinese millennials, aged 18 to 34, who are altering the perception that diamonds are only a symbol of love to be received when getting engaged, married or for an anniversary.
Authentic advertising campaigns are the next Big thing when targeting millennials, who prefer seeing real people facing situations they could identify with. This strategy is quickly gaining popularity with leading brands in their attempt to reach the everyday consumer, who is more laid-back than previous generations. Italian Jeweler Pomellato, celebrating its 50th anniversary, implemented this tactic and linked their campaign with female empowerment, a movement that is being encouraged through various platforms.
Russian mining giant ALROSA is stepping up its marketing game beyond its contributions to the Diamond Producers Association (DPA), we were told this past Wednesday at ALROSA Night - a joint initiative between the Antwerp World Diamond Centre (AWDC) and ALROSA at the Belgian Ambassador's Residence in Moscow.
Since the real (forgive the pun) possibility of cultured diamonds being produced economically in volume started to become apparent, the industry has reacted with a completely closed mind ... The good news is that the woeful performance of polished diamonds is at least forcing some people to think, but thinking in the same old box is not going to do much good. Nothing is being aggressively promoted by the industry about the enormous benefits [created by] the vast majority of natural diamond mining, the jobs and wealth it creates in often very impoverished areas of the world.
"As consumer expectations lean increasingly toward transparency, a brand’s dedication to sustainable business practices is more important than ever before," write Jen King for Luxury Daily in her report on the “Sustainability is the New Black: Consumers Expect Ethical Transparency” session at Luxury FirstLook: Time for Luxury 2.0 on Jan. 18. She writes, "Panelists from the jewelry, spirits and hospitality sectors discussed how their businesses approach corporate social responsibility.
According to Thomas Biesheuvel of Bloomberg, the Diamond Producers Association (DPA) - an international alliance of the world’s leading diamond mining companies whose mission is to protect and promote the integrity and reputation of diamonds, and of the diamond industry - will ask its backers to raise its budget to as much as $60 million a year. DPA chief executive officer Jean-Marc Lieberherr declined to comment on the article.
De Beers CEO Bruce Cleaver sat down with Joseph Pisani of the Associated Press to talk about how the diamond industry is trying to reach millennials, "the under-35-year-olds who may be more focused on paying off student loan debt than buying diamonds and getting hitched." The commercials the Diamond Producers Association launched in 2016 - the financing for which De Beers contributed to as member of the DPA - abandon the conventional view of diamonds purcha
The ‘Clicks and Bricks’ retail sales model for jewelry combines the strengths of online shopping and the bricks and mortar business model, a successful and growing formula that is providing great returns for companies like Ritani, writes Better Diamond Initiative (BDI). "Ritani, which was a wholesaler earlier, has transformed into an USD 50M online jewelry company. It is the 40th Most Promising Company of America according to the Forbes’s list", and the main reason is the combination of online and physical retailing.
ALROSA has announced the initiation of the procedure to rename its foreign-based trading subsidiaries and affiliates, ARCOS, as part of an initiative to create ALROSA’s single corporate brand. ARCOS sales network will be renamed and offices will bear a name of ALROSA and their region of location. ALROSA will also carry out relevant rebranding. This decision was made to identify ALROSA with its own sales network and provide clients with the guarantee of origin and quality of rough and polished diamonds sold through the network. The procedure to rename will probably take four months.
Hearts On Fire® has announced the launch of a diamond jewelry collaboration with London-based jeweler Stephen Webster. This is the first ever partnership between these two brands, and the first designer collaboration for Hearts On Fire, whose design team is led by Italian native Ilaria Lanzoni. The first collection of Hearts On Fire by Stephen Webster is called “White Kites” – taking inspiration from magnificent birds of prey.
The campaign is about the appreciation of a husband for his wife for the little things that she does which makes his life, a life worth living. The wife is at the core of the commercial and depicts how she is the soul of the household and how everyone’s life is better because of the love care and concern she shows them and how she completes them. It signifies that every woman is the diamond in her husband’s life and is truly deserving of a diamond as appreciation of all the effort she puts in for her family.
The highly anticipated launch of the Diamond Producers Association's "Real is rare. Real is a diamond" category marketing campaign is finally a fait accompli. Two intense ads featuring young couples will air on broadcast television and various digital platforms such as Hulu alongside a social media push. The Diamond Producers Association has also planned a major public relations initiative in its efforts to reintroduce young Americans to the appeal of a real diamond.
- Diamond Producer's Association announces Real is Rare. Real is A Diamond in Antwerp. Keep an eye out for launch of first category marketing campaign for diamonds in more than a decade, Oct. 5 in NY.
Last week, De Beers published its second "Diamond Insight Report", analysing the current state and future outlook for the global diamond industry - 'from mine to finger' as they say.
JCK's award-winning news director Rob Bates sat down for a chat with Internet radio program "The Daily Beat" on Breakthru Radio (BTR) to talk all things diamonds, and in particular the Kimberley Process and diamonds in American culture.
BTR: What effect did the movie Blood Diamonds (2006) and reports after that have on the diamond industry?
De Beers today published its "Diamond Insight Report 2016", leading off with the following: "De Beers first published its Diamond Insight Report in 2014. In the two years since, much has changed, but the strong diamond industry fundamentals remain the same." Nonetheless, 'With the first half of 2016 showing signs of more stable conditions returning, it is clear that volatility in the diamond sector is not a short-term phenomenon, but the new normal," says CEO Bruce Cleaver.
Jean-Marc Lieberherr is CEO of the Diamond Producers Association, formed in May 2015 by seven of the world’s leading diamond companies to maintain and enhance consumer demand for, and confidence in diamonds. Lieberherr joined Rio Tinto’s diamond business in 2005, "a life-changing move", he tells us. With the official launch of DPA's "Real is Rare. Real is a Diamond." campaign to take place in early October, Lieberherr lays out his vision of the DPA and responds to some questions on key issues in the diamond industry.