The Strategist

De Beers to pay top dollar to advertise diamonds


08/30/2017 - 10:45



Diamond giant De Beers decided to spend a record for the past 10 years amount on advertising diamonds in an attempt to return wealthy buyers.



According to Anglo American Plc, De Beers' marketing budget will be increased to $ 140 million, the largest amount since 2008. The main attention will be paid to the three main markets - the USA, China and India. Recently, diamonds have gradually ceased to be an indicator of high social status. It's all about the millennials and the trends they ask. Young wealthy buyers prefer to spend money on high-end electronics, travel and fine cuisine.
 
Despite De Beers claim that demand for diamond jewelry has become a record for the last five years, the company has to struggle with the annual decline in prices for polished precious stones.
 
"We cannot take our future growth for granted," said Stephen Lussier, a head of marketing at De Beers. "The increase in advertising spending will help support demand in both developed and emerging markets, especially among millenials."
 
It is expected that the company will focus on its brands Forevermark and De Beers Diamond Jewelers, as well as increase contributions to the Association of diamond producers. The diamond industry is increasingly dependent on the United States, which accounts for more than half of the world's diamond purchases. Last year, the US market grew by 4.4% to a record $ 41 billion, thereby offsetting the contraction in China and India.
 
source: forbes.com




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