Magic of Lab-Grown Diamonds

Guangzhou Diamond Exchange held a forum entitled Discover the Magics of Lab-Grown Diamonds on April 20, inviting

International Jewelry & Diamond Conference (Guangzhou) 2018

The International Jewelry & Diamond Conference (Guangzhou) 2018, co-organized by Guangzhou Diamond Exchange, Guangdong Gems & Jade Exchange and Antwerp World Diamond Centre, was held on Nov 27 2018 More than 600 delegates from home and abroad attended the conference

Antwerp Diamond Day

On 28 Nov 2018, 6 Chinese jewelers signed on to be DnA (Diamonds & Antwerp) Ambassadors in Guangzhou, witnessed by the Governor of Antwerp Cathy Berx, Consul General of Belgium in Guangzhou Joris Salden, Guangzhou Diamond Exchange Chairman Zhu Yongsheng and General Manager Liang Weizhang

Run of Mine Diamond Tender

From 19th-26th April, Guangzhou Diamond Exchange held a Run of Mine Diamond Tender in Guangzhou All parcels with a total weight of over 230,000 cts have been successfully transacted

Generic Public Course on Rough Diamonds

In March 2018, Guangzhou Diamond Exchange opened its first Generic Public Course on Rough Diamonds, including theoretical learning, trading experience sharing, factory visiting, as well as goods viewing, and the industry responded enthusiastically

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An Urgent Call to Invest in Marketing

publish:2019-09-29

“Marketing or bust”. Shashin Choksi, a second-generation diamond trader from Antwerp and director of Swati Gems, and his son Siddharth Choksi, recently published an article entitled "An Urgent Call to Invest in Marketing", pointing out that the diamond industry must significantly increase its marketing spend to ensure the trade’s longevity. This need is highlighted by the difficult conditions the sector has endured over the past few years.

The diamond industry is suffering now, because the financial misconduct carried out by a minority of ill-intended merchants have resulted in a lack of confidence in the diamond trade. Consumer desires for diamonds have stagnated, while the absence of marketing and innovation has had a further negative effect on demand. The diamond industry exists thanks to breakthrough marketing by De Beers, with its iconic “A Diamond is Forever” campaigns going deep into consumers’ heart. De Beers’ marketing budget surged in the 1990s and early 2000s and spending on diamonds by US consumers tripled. Government data shows that net imports of diamonds to the US grew from $2.41 billion in 1990 to $7.15 billion in 2007. However, As the investment in category marketing declined, demand slowed and net imports to the US dropped to $3.96 billion in 2018. In the meanwhile, polished prices have declined constantly and the stock has devalued by 20% in the last decade. The RapNet Diamond Index (RAPI™) for 1-carat diamonds is down 48% since its highs in mid-2011. Increased competition in both the mining and retail ends has made some companies such as De Beers reduce investment in generic marketing as it promotes its competitors’ product. Facing with such a tough market, the diamond industry must significantly increase its marketing spend to ensure the trade’s longevity, therefore, Shashin Choksi and his son Siddharth Choksi (S. & S. Choksi) put forward an approach by imposing a small fee on all diamond exports including:

• A 0.05% levy on all diamond exports (rough and polished) from non-mining countries.
• A fee of 0.5% on all polished exports and 1% on rough exports from mining countries.
•  A payment of 2% of all exports by the diamond-mining companies.

Considering the trade data from the top five exporters – India, the US, Hong Kong, Israel and Belgium, the top five producer countries– Botswana, Russia, Canada, South Africa and Angola, and the top five miners – De Beers, ALROSA, Rio Tinto, Petra Diamonds and Mountain Province, a contribution of around $421 million would be generated. When extended to all countries and companies, it would easily exceed half a billion dollars, which would mark a significant improvement on the budget currently provided by seven mining companies to the Diamond Producers Association (DPA’s 2019 budget is $75 million).

S. & S. Choksi emphasized, these contributions would not be a tax, but a much-needed investment. It may seem like an expensive challenge so far, but such a plan would be far more costly in the future, sparing no one -- from the small traders to the large manufacturers and also the miners, as verified by the recent slump in rough sales. The marketing environment is changing, but the luxury segment is growing while diamond trade is lagging, which should serve as a wake-up call to raise the budget so that marketing efforts can reach all consumer markets and use all marketing media outlets. By highlighting the inherent value of natural diamonds, the marketing efforts would also restrain the lure of lab-grown diamonds. At the end of the article, they point out that the World Federation of Diamond Bourses (WFDB) should take the lead in raising the funds from exports. The WFDB has to ensure that all bourses participate in and benefit from the scheme.

During its interview to S. & S. Choksi, well-known industry media The Diamond Loupe pointed out that many in the industry have lamented the lack of marketing for the diamond industry in recent years, but the scheme proposed by S. & S. Choksi is the first structured approach ever seen outside of the DPA.

With regards to the collection, allocation and monitoring of funds, S. & S. Choksi mentioned that the World Federation of Diamond Bourses (WFDB) is playing a crucial role; it is imperative for them to introduce and enforce the proposed fee system on all diamond exports worldwide. In fact, the plan essentially relies on the support of the WFDB, whose reach and influence over diamond industry will dramatically ease the launch of the proposed marketing initiative. A “board of representatives” structure would be an ideal way to manage this marketing fund, allowing each major stakeholder as miners, producing countries and WFDB, etc. to choose one person to represent them at the table. Besides, professionals on board, preferably external to the diamond trade, are needed to regulate the capital allocation and cope with all generic marketing efforts.

S. & S. Choksi strengthened, the funds should enable the industry to spread its message across all platforms and market. With the support of the WFDB, each and every company will have to participate. Work together to make the global diamond industry as a collective. They hope the entire diamond industry can realize that the marketing efforts now is for the next generation of diamond miners, manufacturers, dealers and jewellers.
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From: The Diamond Loupe, Diamonds.net
 

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