De Beers is talking about change, urging the trade to be proactive in dealing with a persistently uncertain and volatile market environment. While the company has directed its message to the diamond industry at large, and specifically to sightholders, it continues to evolve its own agenda and business strategy to ensure growth in such a changing marketplace.
Assessing De Beers strategy requires some perspective as the company seemingly moves beyond being just a supplier of rough diamonds.
One might be forgiven for thinking the mining company is positioning itself to capitalize on every area of growth in the diamond business. After all, Forevermark gives De Beers a retail jewelry presence along with its diamond-grading capacity and brand placement. The company has also been working to combat the threat of undisclosed synthetic diamonds entering the market by selling products like its DiamondSure, DiamondView and Automated Melee Screening machines.
During August, De Beers signaled its intention to enter the secondary polished market by exploring ways to improve the diamond reselling process that is available to consumers. Furthermore, at the upcoming Hong Kong Jewellery and Gem Fair the company will unveil a new research initiative providing market information via its inaugural Diamond Insight Report and prospective accompanying website.
[two_third]So while De Beers garners the vast majority of its revenue from rough sales at its sight and auction platforms, and supplements that with its industrial diamond supply at Element Six, the company is also dabbling in the polished and retail markets, grading, equipment, research and branding.[/two_third][one_third_last]
“It expects sightholders to shift from a family-run business mentality to a more corporate-driven agenda.”