Diamond sector urgently requests a rejuvenation in marketing strategy
Increased Marketing Push for Natural Diamonds
The media industry could soon witness a surge in marketing efforts for natural diamonds, following recommendations made by industry leaders at the Facets diamond conference in Antwerp. In light of increasing competition from lab-grown diamonds, experts are urging companies to invest more in marketing to celebrate the unique value of natural diamonds.
Al Cook, CEO of De Beers, emphasized the need for industry players to step up and fulfill their role in marketing, subtly hinting at increased funding for the Natural Diamond Council (NDC), a not-for-profit organization that promotes natural diamonds. The NDC's CEO, David Kellie, echoed this sentiment, stating, "No one sees the value in marketing until you take it away."
For decades, De Beers has been a significant investor in category marketing, but slowed down around 15 years ago as it relinquished its alleged monopoly over the industry. The withdrawal of Russia's largest diamond miner, Alrosa, from the NDC following the Russia-Ukraine conflict in 2022, also reduced the available marketing funds.
However, the Antwerp World Diamond Centre, the Dubai Multi Commodities Centre, and India's Gem & Jewellery Export Promotion Council are now discussing plans to fill the gap left by Alrosa and bolster the NDC's budget to over £79 million ($100 million).
The decline in diamond production, attributed to competition from synthetic diamonds and shifting market trends, has seen natural diamond sales drop from 177 million carats in 2005 to 121 million in 2022. McKinsey recently reported that the diamond industry is at a critical juncture, with prices plummeting following a peak in February 2022.
The rise of lab-grown diamonds, near identical to their natural counterparts but significantly cheaper, has intensified competition in the market. Brands are attempting to differentiate natural diamonds by highlighting their unique characteristics and value.
Additionally, companies are aiming to educate consumers about the differences between natural and lab-grown diamonds, challenging popular misconceptions that lab-grown diamonds are indistinguishable from their natural counterparts. The unique qualities of natural stones are being emphasized.
While a decline in natural diamond production could lead to increased prices, the rise of lab-grown diamonds might help offset this effect by offering consumers more affordable options. The growth of lab-grown diamonds could also impact the economies of diamond-rich countries like India and South Africa.
The industry may need to adapt in response to these shifts, focusing on niche markets or developing innovative technologies to enhance the appeal of natural diamonds. Highlighting the history, craftsmanship, and environmentally friendly practices associated with natural diamonds might help attract eco-conscious consumers.
- The media industry could soon be flooded with news stories about increased marketing efforts for natural diamonds, as industry leaders push for more promotion of their unique value.
- Experts suggest that companies in the diamond industry need to invest more heavily in marketing, especially when faced with competition from lab-grown diamonds, in order to highlight the authenticity and quality of natural diamonds.
- Industry organizations like the Antwerp World Diamond Centre, Dubai Multi Commodities Centre, and India's Gem & Jewellery Export Promotion Council are discussing plans to bolster the budget of the Natural Diamond Council, to the tune of £79 million ($100 million), in an effort to match marketing funds lost when Russia's largest diamond miner, Alrosa, withdrew.
- Amidst a potential decline in natural diamond production and a rise in lab-grown diamonds, the diamond industry is recognizing the importance of marketing to maintain consumer interest, emphasizing the history, craftsmanship, and environmentally friendly practices associated with natural diamonds as competitive advantages.
