Writing for Rapaport, Avi Krawitz comments that a key diamond market theme for 2015 was “the return of generic advertising.” According to Krawitz, this trend brings with it the “promise of increased profitability for the diamond trade.”
As quoted in the market news:
For this holiday season, De Beers brought back its iconic ‘Diamond is Forever’ slogan in its Forevermark marketing, while its Seize-the-Day campaign was its first spend on generic advertising since shifting from generic to brand-centric Forevermark campaigning. Signet also punched-in with its ‘Ever-Us’ two-stone ring concept, which included the jeweler’s first-ever iconic merchandising and marketing program.
More importantly, the top seven mining companies created the Diamond Producers Association (DPA) to “enhance consumer demand for and confidence in diamonds.” While its initial budget was just $6 million, and its establishment too late to impact sales this year, the DPA’s influence – and budget – is anticipated to grow in 2016. Among its first orders of business, the DPA hired creative agency Mother New York to help identify the unique promise of diamonds that can connect with the new generation.
Indeed, millennials buy differently, engage with brands and products differently and are influenced by their peers rather than corporations, which had such a strong say in consumption trends in the heady days of booming diamond demand. Somehow, the trade got left behind along the way. And, as demand slowed in 2015, the industry realized something needed to be done.
After all, while it will no doubt face the same industry-specific challenges in 2016 – most notably the need to restore manufacturing profit – diamond sector growth can only be driven by raising demand. And the industry would much prefer inventories to be depleted by growing demand rather than decreasing supply. For that reason, this column chose the reintroduction of generic marketing, and the establishment of the DPA, as its story of 2015 – if only for the promise of a profitable 2016.
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