De Beers is the world’s leading diamond company with rich history (established in 1888. Company sells polished diamonds through two brands: De Beers Jewellers and Forevermark. The De Beers mission is to make high-end jewellery available in every corner of the world. Company’s business was stable until COVID-19 pandemic. From moment when customers started spending money only on essentials, sales of diamonds dropped.
We sell around 90 per cent of our rough diamonds, by value, to two types Our customers – Sightholders and Accredited Buyers. Sightholders have a contract covering the sale of diamonds over an agreed period. Accredited Buyers have a more ad-hoc arrangement. Our Global Sightholder Sales operation holds 10 sales events (known as Sights) a year, where customers can inspect the rough diamonds before buying. The remaining 10 per cent of diamonds are sold through online auctions.http://www.debeersgroup.com
Since the start of lockdowns and quarantines around the globe diamond buyers from traditional centers (Antwerp, Dubai, Hong Kong, Mumbai) have been unable to visit Botswana (Gaborone) for diamond sights. Company recently launched an online platform to sell it’s rough diamonds. But weak demand lead to low sales. Also customers expect price reduction but major players on diamond market prefer to maintain current prices.
De Beers use genius marketing strategies to make customers buy high quality diamonds. Here’s a few examples. The engagement ring commitment marketing strategy (symbol of love). Diamond endorsement by celebrities. Educational content (“color, clarity, cut” and modern online education about diamonds). “A diamond is forever” marketing strategy. “Diamond is the best friend” marketing strategy. “Two months’ salary rule” marketing strategy.
Diamond selling companies created value from nothing but using strategy that diamonds are rare. But that not exactly true. Diamonds supply on market is limited, so diamond prices kept artificially high.
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