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New Book Showcases Branding in the Diamond Industry
"DAWN OF A NEW ERA IN INCREASING MARKET SHARE THROUGH PROMOTING THE DIVERSITY OF DIAMOND BRANDS AND DIFFERENTIATING THE PRODUCT ITSELF".
With reverberations in the diamond industry still continuing, following the decision by De Beers' Diamond Trading Company (DTC) to revise its list of clients (sightholders) within the framework of its Strategic Review and its subsequent Supplier of Choice policy, it seems opportune that a definitive account of the Supplier of Choice saga (with its multiple brand environment strategy) be released onto the market.
That is exactly what has been done by Fran Goldstein, the publisher of the internationally acclaimed Keyguide Directories, which are those indispensable pocket-sized reference guides to the diamond centers. Goldstein¹s latest publication is entitled "Sightholder Showcase", and it carries the subtitle "The branding of the diamond industry".
In her own, almost intuitive style, Goldstein offers "a collection of observations, personal stories, articles, and illustrative case studies," documenting the path that diamond companies have taken since they were instructed three years ago by the DTC to introduce new marketing methods so as to comply with the new De Beers strategy.
"Sightholder Showcase" Goldstein began writing "Sightholder Showcase" in the days following the DTC's first announcement, in July 2000, that it would no longer be acting as the custodian of the diamond industry, but would rather strive to be its supplier of choice. To be eligible for a direct rough diamond supply, the DTC said, a client would have to demonstrate that it is both effective in adding value to its diamond product and helping drive demand downstream in both the diamond and diamond-set jewelry markets.
Goldstein's first book initiative shows how and why the DTC took a group of seasoned diamantaires, all of whom were amateurs and neophytes in this part of the new diamond world, and turned them into "brand mavens". Published just a month before De Beers actually informed its clients who would be receiving a rough diamond supply during 2004 and 2005, it almost reads like a detective story.
It consists of 4 parts: an introductory section, a section providing background information about Supplier of Choice, a section offering case studies of a wide variety of diamond branding initiatives, and a section outlining the various branding programs that are being implemented, downstream, in the jewelry consumer markets worldwide.
Goldstein draws from her 20 years of experience in the diamond industry, and compels the reader to keep the pages turning, as she reveals her methodology and exposes, layer by layer, the inner workings of branding, downstream initiatives, diamond jewelry marketing, advertising, public relations, and a host of other disciplines that have been mobilized in an industry that Supplier of Choice has induced to become vertically integrated.
A few of the topics that are covered include lifestyle advertising, co-op advertising, brand synergy, added value, brand zones, consumer market segmentation, the domestic market in India including the emergence of DTC supported brands, strategic retail partnerships, the introduction of the fashion world into the diamond business, Right Hand Rings, the industry's acceptance of marketing and advertising professionals and brand consultants, DTC flagship programs, and the role of the Diamond Promotion Service and the DTC's Key Account Managers.
And, now, Goldstein is already at work on a second "companion" book that will deal, in greater detail, with how the marketing and branding initiatives in the diamond business worldwide are developing and panning out in practice.
For more information
keynet@shani.net
A Brand New World
BOOK REVIEW:
Solitaire Magazine - India - February March 2004 The diamond industry was catapulted towards monumental change when De Beers announced its Supplier of Choice policy in mid-2000, literally reinventing the world in which it operated.
A new book that seeks to explore the contours of the transformation provides a useful guide to the emerging world. If there¹s one thing that binds both upmarket travellers and backpack tourists on the eve of embarking on a trip to a new country, it is the quest for a comprehensive and authoritative guide book. Once armed with a list of the players one is likely to come across, the basics of the strategies one may encounter, and other related tips, even the most inexperienced traveller will not hesitate to venture forth.
Imagine for a second that it's not just a new country one is setting out to explore, but an entirely new world, and the usefulness of even a preliminary guide will get multiplied many times over.
"Sightholder Showcase, The branding of the diamond industry." It is for reasons like these that almost everyone associated directly or indirectly with the diamond industry will welcome Fran Goldstein¹s publication entitled "Sightholder Showcase, The branding of the diamond industry." Released to the industry in mid-2003, just before the DTC revamped its now public sightholder list and even as the impact of the SoC began to be felt far and wide, the book is certainly the first, and till date perhaps the only attempt to encapsulate the new demand driven strategies that are being implemented by the DTC and to document their impact all the way downstream.
The author herself acknowledges that the book, on which she began work in July 2000, has evolved in the process of compiling the information through personal interviews, phone calls, emails and hours of painstaking research, and has now emerged as "a collection of observations, personal stories, articles and illustrative case studies." The result however, is a systematic and comprehensive presentation of the outlines of the De Beers strategy, some of the basic driving forces behind it, a few of the roadblocks it faced, and the resultant impact it has had on the sightholders in particular and the diamond trade in general.
It captures the effects of what can be called the essence of that change i.e. only those diamantaires who could effectively add value to the product at the manufacturing and marketing stage and also grow downstream demand through innovative strategies like branding, would continue to receive direct rough supplies from the DTC with a close look at what is happening in the leading diamond manufacturing centres of the world and some of the key consuming markets.
The book is divided into four parts for easier reference. The introductory section is followed by background information about SoC; case studies of the wide variety of branding initiatives in the diamond sector; and a last section that summarises the various methods by which the new thrust towards branding is being implemented downstream, in the jewellery consumer markets worldwide.
Industry Changes For an industry reader it is a fascinating narrative as the various strands of change across industry centres and markets are woven together into a single tapestry linked by the common thread of branding. Who would have ever imagined in mid-2000 that the reverberations of the announcement emanating from 17, Charterhouse Street would impact the retail, advertising, public relations, internet, fashion and a host of other related industries, eventually pushing up spends on marketing initiatives well above the target set by De Beers within the first three years itself.
But the book goes further to explore the structure and style of the DTC management set up itself, introducing the reader to DTC flagship programmes, the role of the Diamond Promotion Service and the DTC¹s Key Account Managers. The latter are the behind-the-scenes people, working closely with a particular segment of the DTC clientele to analyse, guide and develop the strategies for each individual sightholder. Interestingly, the book reveals, these teams are not structured on a geographical basis, but rather work with companies with a similar profile, irrespective of which market they may be situated in.
Goldstein also takes the reader through the DTC's own programmes like the Arisia, Asmi and Nakshatra brands that have been developed in India in conjunction with not one, but a group of sightholders. She however does bring out the fact that even these flagship programmes are individually adapted by each company. The sections on the Trilogy marketing and the Right Hand Ring programme, which was just being unveiled as the book was released, also make for an interesting insight.
Topics Covered A few of the other topics that are covered include lifestyle advertising, co-op advertising, brand synergy, added value, brand zones, consumer market segmentation, strategic retail partnerships, the introduction of the fashion world into the diamond business, the industry¹s acceptance of marketing and advertising professionals and brand consultants and so on.
The book is indeed a pioneering effort, and even though in the dynamic scenario that the SoC has unfolded, a lot of the information already needs to be updated, is nevertheless a useful snapshot of the changes that had been triggered off by mid 2003. The author has already announced that a "sequel" is on the way, one that follows the first narrative further downstream, studying the actual success, and in some cases possibly failures of the policy being implemented in practice.
Perhaps "Sightholder Showcase 2" will fill in one of the felt lacunae an analysis of how other players in the business are reacting to these changes, of the many other facets and fallouts of the SoC strategy that may or may not have been conceived of as corollaries to the main theorem, and the myriad other upheavals that are taking place within the diamond industry as a result of the sutras being defined by the main players.
For, like it or not, there are multiple facets to the brand new world that is evolving out there, and a comprehensive guide cannot afford to leave out any of them.
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