De Beers’ Supplier of Choice strategy will stimulate competition and drive consumer demand for diamonds, says the diamond giant’s chairman, Nicky Oppenheimer.
De Beers has committed to bringing a major and transforming change to the world diamond industry, Oppenheimer said on Thursday.
“We aim to encourage the development of a competitive and growth-oriented industry able to meet the challenging needs of consumers globally. To do this, we must all become more customer-focussed and recognise the power of marketing to sell more diamonds,” he added.
The Diamond Trading Company (DTC), De Beers’ sales and marketing arm will implement the Supplier of Choice strategy in mid-2003. The world’s leading diamantaires, to whom the company sells its diamonds, will be objectively selected according to six key criteria — financial standing, market position, distribution abilities, marketing strengths, technical and manufacturing ability and compliance with the DTC Best Practice Principles and standards such as general business
reputation.
The DTC Best Practice Principles are a commitment to ensuring consumer confidence in the professional and ethical standards and technical skills of the gem diamond industry, acceptable business practices, and the highest industry ethics.
The DTC believes that the Supplier of Choice strategy will create an environment in which sightholders and their trade partners can expect to reap significant benefits, including a consistent supply of rough diamonds, marketing support from De Beers and access to the company’s consumer research knowledge base.
Research by the DTC indicates that diamond jewellery sales significantly under-performed during the 1990s. This was as a result of a number of factors such as under-investment in marketing, lack of branding and low consumer confidence in the industry.
Supplier of Choice will ensure that diamonds are supplied to those diamantaires who are able to market and distribute them in the most efficient and effective manner. The ultimate aim is to see diamond jewellery matching or even exceeding the growth rates enjoyed by other luxury goods. – I-Net Bridge