The world’s seven largest diamond mining companies have come together for the first time in India to launch an association and spend $7 million (about ₹45 crore) over the next year to promote and widen the market base for diamond.
The competing mining companies — Alrosa, De Beers, Rio Tinto, Dominion Diamond, Gem Diamond, Lucara Diamond and Petra Diamonds — have decided to join hands when the demand for diamond jewellery in India has slowed down considerably after demonetisation. These seven mining companies account for 75 per cent of global rough diamond supply.
India’s share in global diamond market, which is valued at $80 billion, has stagnated at 7 per cent since DeBeers, one of the largest diamond suppliers, stopped diamond promotional activities in 2008. Jean-Marc Lieberherr, CEO, Diamond Producers Association, said though India has emerged as a manufacturing hub for cut and polish diamond by processing 90 per cent of the rough diamonds produced in the world, the demand has not really picked up due to economic slowdown and currency demonetisation.
“Our marketing initiative will try to shift the focus on diamond being a luxury and aspirational product to reflect the bonding and emotional connect. We have already prepared two commercials which will be aired soon,” he added.
DPA will also start similar marketing exercise in China with an investment of $10 million and will invest another $50 million in the US. With a market share of 47 per cent, US is the largest diamond consumer followed by China with market share of 16 per cent.
Like India, Lieberherr said the demand in China has also hit a bump due to economic slowdown and their government cracked down on corruption.
DPA will also be working closely with the Gem and Jewellery Export Promotion Council to build trade relationships, best practices and a strong consumer connect through various market development initiatives. The first of such, is the launch of the India diamond marketing campaign under the global umbrella “Real is Rare, Real is a Diamond”, which is promoting a new message about diamonds, he said.
To protect consumers’ interest, DPA plans to work closely with the trade and install equipment at the retail outlets to differentiate between real and synthtetic diamonds.