DIAMOND PROMOTION Need of the Hour

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DIAMOND PROMOTIONNeed of the Hour

• Vasant Mehta
• Vice Chairman, Gem Jewellery Export
  Promotion Council

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Content
CONTENT
Evolution of The Luxury Market
Diamond The Epitome of Luxury
Diamond Jewellery Current Scenario Growth
Key Market Trends
Diamond Jewellery Promotion Need of the hour
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LUXURY

• LUXURY Latin - Luxuria, means the
  extras of life
• Something Not essential but conducive
  to pleasure
• Something Expensive or hard
  to obtain
• The extravagant Material things
  affordable only by rich
• In simple words the opposite of
  necessity

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The OLD LUXURY refers to an object

• Only the best of the best earned the name of
  luxury
• And luxury was defined from the point of view of
  the thing itself
• The products attributes, qualities and features
  qualified the item as worthy of the luxury label.
• e.g a Rolls Royce

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FROM 1900 TO TODAY HOW DEFINITION OF LUXURIES
ALTER
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The NEW LUXURY

• New luxury rather than representing an object is
  linked to a feeling
• It is about the consumers experience

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Top Luxury brands
Top Luxury Brands
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Todays New Luxury consumer

• Educated
• More demanding
• More selective ( buying behavior)
• Looks beyond brand and labels, archetypes of old
  luxury
• Seeks emotional satisfaction
• Has more disposable income, and desire to make
  his life easier and less stressful

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Most popular items in personal luxuries

• Clothes apparel
• Fragrances, cosmetics
• Fashion accessories

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Most popular experiential luxuries

• Dining
• Travel
• Entertainment

Diamond Jewelry significantly low in consumer
preference for Luxury goods and Experience
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Diamond The Epitome of Luxury
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Origins of the engagement ring
Pope Innocent III 1215 Fourth Lateran Council
Birthstones
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Europe
1938
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BUT WHY THE DIAMOND ?
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THE GREATEST MARKETING STORY EVER TOLD, BY
MILLIONS
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De
De Beers 3 Stone Ring
De Beers Wedding Band
De Beers ICE on FIRE
Signature Round Brilliant Pendant
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The Global Diamond Mining Giant Influenced
RETAIL SALES of Diamonds Introduced Diamond As
ASPIRATIONS The ultimate in Luxury
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Case Study Japan

• The DeBeers Goes to Japan
• 1978 Diamonds for 50 of Japanese Brides
• 1981 Diamonds for 60 of Japanese Brides

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Diamond Jewellery

• Current Scenario Growth

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CURRENT SCENARIO
8 Key World Jewellery Consuming Nations
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USA
GROWTH (over previous yr) 2004 11.5 2005
-1.25 2006 7.97
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JAPAN
GROWTH (over previous yr) 2004 2.94 2005
11.54 2006 3.89
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KEY MARKET TRENDS THE NEED TO PROMOTE DIAMOND
JEWELLERY
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• Diamond Diamond Jewellery as a LUXURY and its
  prioritisation in the list of Luxury Goods in
  Consumer Mind space has been usurped by other
  Products

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LUXURY TODAY
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LUXURY TODAY
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LUXURY TODAY
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LUXURY TODAY
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USA Worlds largest DIAMOND JEWELLERY consuming
Nation Undergoes RECESSION
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• DTC reduces AD SPEND on
• Generic Diamond Promotion

KEY TRENDS
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• Emergence of a SUBSTITUTE
• Synthetic Diamond
• Reach US 2Bn at wholesale by 2015, almost 7 of
  the market
• Usurp close to US 6 Bn of natural diamond sales
  at retail level by 2015

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• While other Luxury Products are growing and
  expected to grow at 10 15
• Diamond Jewellery will be the slowest growing
  segment at a CAGR of 3.3
• Source KPMG Vision 2015

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TOP 5 LUXURY PRODUCTS

• In 2006, Shift Happened
• Mobiles
• Travel Tourism
• Automobiles
• Clothing apparels
• Cosmetics and beauty products

• In 1960, Shift Happened
• Diamond Jewellery
• Automobiles
• Clothing apparels
• Cosmetics and beauty products
• Travel Tourism

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• In 2015, We Can Make the Shift Happen
• Diamond Jewellery
• Mobiles
• Cosmetics and beauty products
• Clothing apparels
• Travel Tourism

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NEED OF THE HOUR

• I call upon all stakeholders to unite together
  and drive the generic promotion of diamonds and
  diamond jewellery worldwide zealously to drive
  the growth of the category

CIBJO
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