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Awaiting industry-wide "co-op" diamond advertising
February 24 will mark the first working meeting of the high-level diamond industry companies' effort to develop generic diamond advertising sponsored cooperatively across the supply chain. We're very eagerly awaiting the results of this new project, which could significantly affect...
February 24 will mark the first working meeting of the high-level diamond industry companies' effort to develop generic diamond advertising sponsored cooperatively across the supply chain. We're very eagerly awaiting the results of this new project, which could significantly affect the industry's health.
Demand stimulation is imperative in our luxury business, driven by discretionary spending. Even if the times weren't as hard as they are now, the implications for the long-term are manifold and substantial.
De Beers, of course, has historically played the role of chief diamond advertiser, a natural offshoot of its position as industry-wide marketing cartel. But when it chose to restructure and reposition its model several years ago, this advertising became a victim of the change.
You can't really blame De Beers for that. As more and more diamond production developed outside of its control, its share of the overall pie diminished. Normally in business, that would suggest that those competitors with growing interest in driving the product would begin to chip in to spur demand.
So that's what's happening now. Unfortunately, this industry has never been one to really cooperate on such efforts broadly. More often, it is a small group of well-known companies that end up footing the bill.
Perhaps that's what will happen again this time. In any regard, however, the success of these efforts is critical, because our industry needs marketing badly and needs it now.
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