Dominic Brand, global marketing head for De Beers: “We believe that the IDB can bring together the resources and a sense of combined purpose that will create optimum benefits for all in the diamond industry.”
Dominic Brand who is the head of global marketing for De Beers gave this interview to Antwerp Facets.
How does marketing diamonds compare with the marketing of other products with which you have been involved?
There are a number of parallels between marketing alcoholic beverages and diamonds. Both sectors see a need to focus on target consumer groups and their main purchase motivations. It is important to understand the elements that will differentiate one brand over another with all discretionary consumer goods, but particularly those in the luxury sector.
My principal approach has been to help build emotions around brands and to therefore facilitate a connection between the product and the consumer.
The branding of diamonds and of diamond jewellery is a notoriously difficult and lengthy process. Against that background, did it make sense to demand that manufacturers go into jewellery making and branding?
To be very clear, the Diamond Trading Company (DTC) never demanded that manufacturers go into jewellery making and branding. What the DTC did assess objectively under Supplier of Choice, and continues to assess, is whether an applicant is able to drive demand for diamonds, and add value to them through differentiated and customer-focused goods and service propositions at any stage of the diamond value chain, regardless of business model. Jewellery manufacture and branding may be relevant to this assessment.
I can say as well that now, more than ever, consumers are looking for confidence, inspiration and purchases that offer enduring value. There is also a growing consumer awareness of, and call for, product authenticity and high supply chain standards.
This was, therefore, the perfect time to launch Forevermark. With its promise of quality and integrity, it meets these growing consumer requisites. The consumer response and rapid growth of Forevermark has affirmed this approach.
With De Beers putting its effort into marketing its own products, are other companies stepping into the breach or is there a shortfall in marketing?
There is currently a shortfall in diamond promotion which is why, in June 2008, senior executives from several producers met in St. Petersburg, at the invitation of Alrosa, to discuss the feasibility of creating a pan-industry body that would carry out generic diamond jewellery marketing on behalf of the international diamond industry.
The proposal derived from the changing dynamics within the industry and De Beers' decision to turn more to proprietary marketing and away from its former generic approach. Thus the idea of the International Diamond Board (IDB) was conceived. Steering committee members include Alrosa, Rio Tinto, BHP Billiton and De Beers although Alrosa has yet to confirm its level of participation.
The fact is that, at this stage, IDB has not taken off. While enthusiastic at first, Alrosa, as the second-largest diamond miner in the world, now appears not to be interested in the idea. Yet must be accommodated due to its importance. How do you believe the idea can be revived?
We believe there is indeed a future for the IDB concept. Early steps have included the incorporation of the IDB with by-laws in place.
We continue to liaise with other industry players and we are hopeful that some sort of co-operation will occur this year, although it is likely to be a modest beginning and will not include full-scale marketing programmes.
Can such an apparently unwieldy body be established and successfully run, or do you foresee that firms will simply run their own individual marketing plans?
We believe that the IDB can bring together the resources and a sense of combined purpose that will create optimum benefits for all in the diamond industry. However, De Beers is moving forward with the Forevermark programme in parallel to the projects that we hope will, one day, be developed by the IDB. In addition, we think it is important to create an organisation that liaises directly with the consumer markets.
Are you taking new steps to market in India and China in the light of forecasts that they will comprise an increasing share of the global jewellery market in the coming five years or so?
We originally piloted Forevermark in Asia in 2004. The brand – with its unique promise of quality and integrity – created significant consumer interest and consistent sales despite the economic downturn.
Following the pilot project, the brand was fully launched in 2008 and is now present in around 250 doors in Asia, 121 of which are in eight cities across China: Beijing, Shanghai, Tianjin, Wuhan, Nanjing, Hangzhou, Chengdu and Shenzhen. In the past couple of months we have also opened doors in Dalian and Guangzhou with plans for further expansion before the end of the year.
In India, we are working exclusively with Forevermark diamantaires to stimulate and promote private sales of special Forevermark diamonds. We will be seeking to expand on this success and establish the brand amongst selected retailers.
China and India are expected to be significant contributors to the growth of Forevermark. We will continue to support Forevermark in these markets through impactful, integrated marketing campaigns comprising advertising, digital, PR and visual merchandising activity.
Has marketing for the U.S. market changed in light of its sluggish economic growth? Are you looking into new ways of marketing, or marketing to new segments of the consumer market?
The Everlon diamond ‘love knot’ collection was our response to the market downturn – offering a platform for the trade to come together and for all parties to benefit more together than they would do individually.
The key insight – consumers taking comfort and strength from their relationship with their partner – was in line with downturn thinking. In 2010, we plan to build on last year's success and continue to support and grow Everlon which remains our focus this year.
