Diamond Gems Weekly - December 2
Oh my, what an eventful few weeks it has been for the diamond industry. Remind me, does the year always end with such a crescendo of news? It does feel like the industry is ticking a few boxes for us journalists before the silly season sets in, and as it seeks to start the New Year with a semblance of a clean slate.
For some reason, though, I have Jaguars on my mind – the car, not the animal. Yip, step aside Botswana, De Beers, sanctions, Antwerp nodes, rough prices, synthetics, holiday sales and everything else that have filled the diamond headlines this week (yes, there is more) … the repositioning of the British car maker has been fascinating to watch.
Jaguar’s ‘Reimagined Strategy’ to go electric-only, and its new ad, Copy Nothing, prompted extreme reactions. You either love it or you hate it. Personally… well, it doesn’t matter what I think. Let’s just say I am a bit of a traditionalist when it comes to classic cars – perhaps less so for classic brands (and taglines).
Image: The lead image from Jaguar's new brand campaign (Credit: Jaguar).
Anyway, it did get me thinking about the diamond industry’s approach to marketing, branding, and advertising, as these topics have dominated the industry discussion lately. So where better to begin our news roundup…
>>> There has been a major push in the last month to reinvigorate diamond category marketing. That includes the Natural Diamond Council’s appeal for greater funding, as I explain in my latest piece, Just Give Me My Money.
>>> And De Beers unveiled its holiday campaign, Forever Present, reviving the iconic ‘A Diamond is Forever’ tagline (again). I need to check the archives but I’m fairly sure this isn’t the first revive of that trusty old slogan. But the industry does love to see it rehashed in whatever format, and CEO Al Cook stressed at last week’s Facets2024 conference in Antwerp that the company’s focus is squarely on category marketing. For now, that means the Forever Present campaign is available for others to use. For later, we need to assess whether that is in fact the right approach for De Beers and the industry.
>>> Speaking of Facets2024, it’s well worth skimming through the video of conference. The address by newly elected Botswana President Duma Boko, and the interview with De Beers CEO Al Cook were particularly telling, while the panel discussions on traceability, sustainability and unlocking value continued the important conversations surrounding those topics.
>>> For me, the big headline from the conference was the re-warming of ties between De Beers and the Government of Botswana, signaling that the long-delayed marketing agreement between the two is imminent. Here’s my take on the pending deal being back on track.
>>> Botswana scored another big win in Antwerp as the government and the G7 technical team agreed to establish an export certification point in Botswana for rough diamonds entering G7 countries.
>>> The G7 is also exploring export certification nodes in Namibia and Angola. The Antwerp diamond industry will help Angola with insights to establishing such a node after the two signed a memorandum of understanding to promote Angolan rough in Antwerp.
>>> Back in Angola, Alrosa sold its stake in Angola’s Catoca and Luele mines to Oman-based investment fund Madden International, the Ministry of Mineral Resources, Petroleum and Gas reported.
>>> Alrosa, meanwhile, penned an agreement to sell a batch of rough diamonds to Russia’s state repository Gokhran before the end of the year. The major miners – Alrosa and De Beers – are holding large inventories of rough due to the decline in sales this year.
>>> To stimulate demand, De Beers reportedly reduced rough prices by 10% to 15% at this week’s December sight, its final sale of the year. Manufacturers say they still can’t turn a profit from the goods, according to a report by Rapaport.
I think that just about sums it all up. I told you there is a lot going on. And we didn’t even touch on the holiday season.
>>> Speaking of which, you might find this discussion about November sales interesting on the Jewelers Helping Jewelers Facebook Group. Though hardly a comprehensive survey, it’s somewhat encouraging and well worth reading through the comments.
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