Ari Epstein, CEO of the Antwerp World Diamond Centre answers some questions about the Belgian diamond industry. His interview given to Danielle Max, Editor in Chief of the IDEX Magazine, was published on October 26, 2011 at www.idexonline.com.
Danielle Max: What is the role and purpose of the AWDC in the Antwerp diamond business? On whose behalf does it act?
Ari Epstein: AWDC is the coordinating body and the official representative of the Antwerp diamond sector, and as such is recognized internationally as the host, spokesperson and intermediary for the Belgian diamond community. In this capacity, AWDC liaises on behalf of the Belgian diamond sector with governments and actively promotes support for the diamond sector at home and abroad. As such AWDC strives to further develop Antwerp as the world’s diamond center.
AWDC aims to reinforce Antwerp’s role as primary business center and as the industry’s leading service provider for the global diamond trade, promoting its unparalleled financial, technological and intellectual infrastructure.
AWDC endeavors to strengthen the image of diamonds through its dedicated marketing services and PR events.
AWDC aspires to actively contribute to a multicultural, transparent and ethical business environment within the worldwide diamond industry.
The mission of the AWDC is to serve and support the diamond business in Belgium. Headquartered in the heart of Antwerp’s diamond district, its board of directors is elected directly by those who define the Antwerp diamond community.
How is the organization organized?
AWDC was formerly known as the Diamond High Council, abbreviated to HRD. This organization, founded in 1973, was the official representative and defender of the interests of the Belgian diamond sector. The original HRD was split in 2007. From this split emerged two companies.
The first is Antwerp World Diamond Centre, a private foundation, which is responsible for representing the common interests of the Belgian diamond industry both nationally and internationally and to promote Antwerp's diamond city.
The second company, HRD Antwerp, is a commercial organization that brings together six branches: the Diamond Lab, Precious Stones Lab, Research, Education, Graduates Club and finally equipment.
Why is there a need for an umbrella organization like AWDC?
The Antwerp diamond center is the world's largest hub for trade in diamonds, both rough and polished. For the first six months of 2011, Belgium exported 63.2 million carats of rough diamonds, and 4.68 million carats of polished diamonds. Antwerp is the diamond industry's primary business centre, serving as the headquarters for about 1,850 diamond firms, which is the largest concentration of companies in the industry.
They include rough diamond producers, rough dealers, manufacturers, and polished diamond wholesalers. With so many different firms it is important to have an umbrella organization as a coordinating body and the official representative.
Antwerp is also the world diamond industry's leading service provider, and is home to the industry's leading financial institutions, insurance companies, security, shipping and logistics providers, gem labs, technology companies, professional equipment suppliers, business advisors and management consultants.
What are the main activities of the AWDC?
AWDC strives to further develop Antwerp as the world diamond center by representing the sector in Belgium and abroad, to governments, professional organizations, the diamond and jewelry trade and the general public. It does this by supporting and promoting the image and reputation of the sector, and by providing services and disseminating information that advance the interests of all members of the diamond sector in Belgium.
How does the organization help to facilitate business? Are there any new services being planned for the near future?
AWDC organizes all sorts of events to support the industry. First of all there are the events to inform all the members of the industry, such as seminars on all kinds of different themes. We also organize events to support the industry in its expansion: such as trade shows or road shows. This month, AWDC will organize its first road show to China.
In terms of industry finance, AWDC recently signed an MoU with the largest bank in China. How is this agreement going to change the way that business is conducted, if at all? What do you expect to be the results of this agreement?
What we have always achieved are the excellent contacts we build with retail markets – such as China. We have created for many markets the right financial and economical atmosphere for new diamond companies to settle in Antwerp. A good example of this is the memorandum of understanding that AWDC signed recently with the largest bank in China, ICBC. The agreement was a milestone for AWDC. This joining of forces will strongly support the Antwerp diamond trade's expansion into China.
What is the AWDC doing in terms of online services? How is the organization helping traders to shift online?
AWDC already provides some online services. The Diamond Office website is constructed in order to inform traders more efficiently on the procedure and/or regulations concerning the import and export of diamonds. It also gives businesses the opportunity to follow the flow of their shipments online.
We have our own online platform for tradeshows. Through a new website and other activities for the trade, we are looking into developing this even further in the future.
How did AWDC help traders and others during the recent economic downturn? How did it change the way the organization operates? Are there any plans in place to deal with a similar situation in the future?
We organized a symposium at the height of the crisis. All the stakeholders came together to pave the way to the end of the crisis. This was of mayor importance – to think of how to get out of the crisis together. As a result, the Antwerp diamond industry emerged stronger after the crisis. The strength of the product is very high, but belief in it was even bigger after the crisis. A lot of people see it as an alternative investment to gold.
How do you connect the upstream side of the market with the downstream retail end of the trade? Are there any initiatives linking the two?
We are a Business to Business focused organization. We focus on the upstream side of the market. However we fully support any downstream retail end of the trade initiative that focuses on emphasizing the beauty of diamonds.
In terms of consumer confidence in diamonds, one of the issues of the moment is a standardization in grading. Is AWDC doing anything to bring about greater standards in the industry? Is this something you think the industry organizations should be getting involved with?
It is up to the laboratories such as HRD to work on a unified standard like IDC so the consumer confidence can be fully supported.
There have been problems (still ongoing) whereby the government has targeted the Belgian industry, leading to a number of companies having their goods confiscated. This situation has resulted in a number of diamantaires opting to live and work in other countries. Can you say something about this situation and what the AWDC is doing to resolve it?
Antwerp is considerably more than just a place where diamonds are bought and manufactured. It is the critical intersection on the world map that facilitates the operation of the entire diamond business. With a financial, technical and intellectual infrastructure that is unrivalled in the industry, Antwerp is the center from which a multinational industrial and commercial network is coordinated. In the past few years, the Antwerp Diamond industry has proven itself to be very strong. Companies are not moving to other countries.
