De Beers craft­ing new slo­gan to lure the mil­len­nial big spenders

The Star Early Edition - - BUSINESS NEWS - Thomas Biesheuvel

THE DI­A­MOND in­dus­try is look­ing to up the ante on its ef­fort to win-over younger con­sumers more in­ter­ested in gad­gets and gas­tron­omy.

The Di­a­mond Pro­duc­ers’ As­so­ci­a­tion lobby will ask its back­ers, in­clud­ing top min­ers De Beers and Al­rosa PJSC, to raise its bud­get to as much as $60 mil­lion (R808.7m) a year from $6m, said peo­ple fa­mil­iar with the plans, who asked not to be iden­ti­fied as dis­cus­sions are pri­vate.

The group was set up in 2015 with an eye to try to re­vive the glory days of half a cen­tury ago when slo­gans like “A di­a­mond is for­ever” were ubiq­ui­tous in pop­u­lar cul­ture.

Such dom­i­nance, with the help of stars such as Mar­i­lyn Mon­roe, co­in­cided with De Beers’s near mo­nop­oly of pro­duc­tion, al­low­ing it to ben­e­fit di­rectly from the in­crease in de­mand that fol­lowed its ad­ver­tis­ing ef­forts.

But the col­lapse of the De Beers mo­nop­oly, af­ter los­ing a 10-year le­gal bat­tle with the US over price-fix­ing in 2004, left the in­dus­try splin­tered and in­di­vid­ual min­ers un­will­ing to pay for pro­mo­tion that would aid rivals.

At the same time, younger con­sumers with money to spend drifted to elec­tron­ics and fine din­ing. Prices for pol­ished gems are near a six-year low and global di­a­mond de­mand slipped 2% in 2015.

At the same time, fac­tory-made di­a­monds are pos­ing a threat to min­ers as man­u­fac­tur­ing be­comes eas­ier and cheaper.

De Beers cut its mar­ket­ing bud­get in half to about $100m a year through the 2000s. In 2015, it spent about $20m on a new cam­paign to shore up de­mand among so-called mil­len­ni­als in the US and China, the big­gest mar­kets.

The lobby cre­ated the same year sought to ex­tend such ef­forts by unit­ing min­ers be­hind a new slo­gan “Real is Rare. Real is a Di­a­mond.” Mem­ber’s pay­ments are set by sales levels, with De Beers and Al­rosa pay­ing the most. – Bloomberg

It’s tar­get­ing the lu­cra­tive mar­kets in China and the US to try to re­vive its glory days in the di­a­mond in­dus­try last cen­tury

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.