The world’s largest original diamond business De Beers “sell love”
The world’s largest original diamond business De Beers “sell love”
French founder of the famous fashion Chanel cocoa. Ms. Chanel once said, “Diamonds combine the greatest value with the smallest volume.” De Beers, the world’s largest supplier and retailer of diamonds, studied and created consumer demand for diamonds, cutting out A piece of the huge profits of the diamond market.
In a variety of advertising on the Chinese consumers the most influential of the selection, De Beers company “diamond forever, a permanent spread of” advertising language are on the list. The English version of the imitation Cartier love bracelet slogan, “The Diamond is Forever”, has been in use since its introduction in 1953, and has been introduced into China since 1993, and is regarded as a classic and has largely changed the Chinese cities Consumer ‘s wedding customs.
De Beers was founded in 1859 in North Cape, South Africa, is the world’s largest supplier of the original diamond, currently occupies 80% of the world’s natural diamond supply. In order to stimulate the world’s diamond demand, De Beers set up a diamond trading company (Diamond Trading Co.) is responsible for marketing and sales, after nearly a century of efforts, and finally succeeded in diamonds and love on the equal sign, Of the rich ore. Not only that, De Beers has begun to get involved in the brand retail sector, hoping to have a greater impact on the end consumer.
Establish diamond brand image, create diamond consumer demand
In the 1930s, De Beers had cut its production by 90 percent because of the economic downturn and a sharp drop in demand for diamonds. It is in this case, the company’s chairman, Sir Ernest decided to set up a diamond trading company, specifically responsible for establishing the diamond brand image, driving diamond consumption.
Harry, son of Sir Ernest. Ernest was ordered to investigate the market http://www.ourlovestore.com situation in the United States. He found that in the personal consumer market, the diamond product is only a very rich part of the patent, the mass market simply did not start. At the time, Harry. Ernest that “fashion” may become a major diamond products positioning, so with the Chanel brand launched a number of diamond jewelry, but the market reaction is not ideal, the plan failed.
Harry. Ernest immediately adjusted the company’s strategy. He found that “fashion” although the main features of diamond jewelry, but the diamond is not hard to degenerate features and people just love for the desire to coincide, so he re-positioning of diamond jewelry as “a symbol of loyalty love.” This positioning has been in use until now.
In order to stimulate the demand for diamonds, De Beers has been positioning itself as a diamond industry marketing company, not just raw material suppliers. In 2004, the Group’s diamond trading company’s marketing and promotion costs reached 180 million US dollars. They are the earliest in the Hollywood film product placement marketing business, the movie heroine fall in love scenes always appear De Beers figure. They donated some samples to the movie star, set off a diamond fashion trend. They also held a Diamond Designers Competition every two years to provide better ideas for retailers. If you are an original Diamond Dealer at De Beers, Diamond Marketing Services affiliated with Diamond Marketing Services will provide comprehensive marketing training.
Through the efforts of De Beers, to the 20th century, 60 years, 80% of Americans get engaged diamond ring as a keepsake. “Later, many industries imitate our marketing model,” Harry. “We do not emphasize the name of the http://www.ourlovestore.com company in advertising,” Ernest said. “We only convey a very simple idea to the consumer – around the constant emotional value of the diamond.”
In 1963, De Beers advertising to JWT company care. JWT further developed the consumer’s wedding anniversary to give each other’s diamond jewelry, married women give their consumers the “left ring” (the general wedding ring wearing in the right hand) and other deep-seated needs.
By 2003, De Beers had sales of $ 5.7 billion and operating revenues of nearly $ 800 million. In 2004, the size of the world diamond market reached 8.1 billion US dollars, De Beers is undoubtedly one of the biggest tasted the sweetness of one.
Change the Chinese city marriage custom
28-year-old technology research and development manager Tang Yunchun spent six months of the prize money to buy a 10,000 yuan diamond ring as an engagement gift to his girlfriend, he sighed: “Now the Chinese men’s marriage costs are getting higher! Must be sent, we have, do not send the girlfriend is not happy.
Since playing in a friend’s wedding, the company secretary to do the way Miss saved 3 months salary to buy a 5,000 yuan diamond ring, “I see my friend’s ring envy, I have one. , After marriage must be changed to a bigger.
After 12 years of tireless marketing in China, with the growth of Chinese people’s income, diamonds have become the most popular jewelery in Chinese urban consumers. Some Hong Kong retailers have expanded to the mainland, where the diamond market grew from $ 500 million in 1993 to $ 1.4 billion last year.
According to a forecast, in 2010 China is expected to become the world’s most competitive jewelry processing and consumption centers, as well as one of the world’s jewelry trade center, China’s annual sales of jewelry will be more than 18 billion US dollars. For De Beers, China is also the key to its future success. Although the US remains the largest market for the company, its sales growth in some Asian countries, notably China and India, has surpassed the Group’s average growth rate of nearly 7% last year. A new market structure has been created (Exhibit 2).
Stephen Lussier, director of global marketing for De Beers Diamond Trading, says half of the women in big cities in China, four out of five in Shanghai and Beijing, celebrate their weddings with diamonds. “It’s just a city,” Lussier said. “Imagine if the brides in rural areas are starting to buy diamonds, the industry will enter a whole new realm.” Kay Wong, general manager of Gyeongbok Jewelery, said that their presence in mainland China Five jewelery stores show diamonds in the most prominent position, so far, sales of diamonds account for 60% of the total turnover. “Many people regard diamonds as the first choice, because they like sparkling things, and the brighter the “Wong added.
In order to further stimulate the needs of Chinese consumers, De Beers will target consumers locked in a more popular, more than 3,000 US dollars annual income of families. They believe that this group of consumers http://www.ourlovestore.com have a certain spending power, very eager to middle-class living standards, so they are likely to buy more memorable and value-added diamonds as their first luxury.
In 2005, De Beers plans to invest 9 million US dollars in television, magazines and newspaper ads, in addition to publicity in large cities, they will also line of sight to the 17 second-tier cities, including the more remote Hefei and Lhasa and other places . De Beers also for many years in the New Year, “11” and other public holidays sponsorship of urban young people organized a collective wedding, to spread their Western wedding idea.
De Beers in China to promote the effect of diamond wedding ring is ideal. Survey, in Shanghai, one-third of the wedding ring inlaid with diamonds, purchase rate than France, Germany and other European markets even higher. Currently in Shanghai, 33% of new wedding ring is diamond, and Beijing’s purchase rate is 24%, Guangzhou is 15% .Debbles is not only to focus on female consumers. According to the company’s recent survey of men aged 30 to 44 in China, 67% of men want to have more diamonds than any other; 69% believe that diamonds are expensive but worth it; 63% Is the best expression of personal taste; 43% of men believe that the diamond is a symbol of achievement. In addition, 51% of men want to buy diamonds, and there are many men have entered the purchase process. Diamond is no longer a woman’s patent. It is reported that De Beers will intensify efforts to promote the handsome hardcore in China for men to wear a square diamond jewelry.
Get involved in diamond retail, grab more ore
At the beginning of 2000, never involved in diamond retail De Beers announced that it will and the world’s largest luxury goods group LVMH company called De Beers LV, a new company focused on the development of De Beers diamond jewelry brand name. De Beers Chairman, said: “The agreement is De Beers Group in the 21st century, a key step in transition.” Since then, De Beers was positioned as a luxury brand, not just diamonds supplier. O’Brienheim also revealed the reasons for the transformation: “A consumer will only take out his pocket 1% of the money to buy diamonds, but it will come up with 10% of the money to buy luxury goods.We spent several decades for marketing , And now the brand value has let us have the strength to enter a larger area.
In October 2002, the new De Beers LV opened flagship stores in Paris, New York, Tokyo and London in several luxury centers around the world. The materials are supplied by De Beers and are designed primarily by the LV Group. De Beers’s executive director, Gary. Leif said, in order to cope with the growth in demand, De Beers LV in the past two years will certainly set up flagship store in China.
As De Beers is still the world’s major jewelry companies supply the original diamond, in order to advertising in the De Beers brand and other diamond jewelry brands separated, the company used “Forevermark” (permanent mark) replaced the original in the promotion of diamonds The De Beers logo and words appear in the product ad. Many industry analysts said that this is somewhat similar to Intel’s “Intel Inside” bundled marketing practices. De Beers will only be used for the company’s high-end retail brands.
However, into the larger market, another may be that De Beers must face more competitors, and luxury brands have their own set of rules of the game. In the vicinity of De Beers LV New York store, is Tiffany, Katia and other old high-end jewelry brand flagship store.
Customers thin, do the best suppliers
In July 2003, De Beers introduced a $ 170 million marketing campaign called “Best Vendor” to provide more services for traders to establish and implement best practice codes and best practices in the industry. Professional ethical standards. Basically, De Beers is re-combing the diamond industry sales channels, to encourage diamond trading and agents for marketing. Some say this is one of the most important developments in the diamond industry since the 1930s. It signals De Beers’ shift from the “buyer’s only option” to the “best supplier” role, and suggests that De Beers is shifting from a diamond industry watchdog to an active participant.
According to the new marketing strategy, De Beers reduced the number of its original diamond customers, a reduction of 20% in the “select suppliers” strategy, De Beers decided to focus on its 110 list of thin clients, there will be Thirty-five customers, including wholesalers, cutters and dealers, ceased to be De Beers’ customers and De Beers added 10 new customers.
The program is being carried out in major diamond centers such as Belgium, Israel and the United States. De Beers’ long-standing clients are removed from the customer list, many of which are family-owned. From the beginning of next year, these family businesses will no longer be able to buy diamonds from De Beers’ London-based marketing arm, the diamond trading company, and have to make a living.
At the same time, De Beers according to the new strategy to its customers in accordance with performance breakdown, every two years on its customer list for a big change, those in the loss of customer qualification company in 2005 to re-apply. “We did not have so many good diamonds in the past to meet the needs of all our customers,” said Ralf, the company ‘s general manager.
After the customer slim down, De Beers will strengthen cooperation with downstream enterprises, and diamond trading company into the world’s best original diamond marketing company. Ralph said: “De Beers will be the focus from the original control of the supply and price of the original diamond, diamonds trading company will help us to cooperate with the downstream business, so that diamond sales channels more effective, In the promotion of marketing to increase efforts to establish consumer interest and confidence in the diamond for the partners to provide more value for our cooperation with our downstream enterprises, there are many opportunities not to be developed, Look at the growth rate of the luxury goods industry now know the average luxury business turnover of 6 to 10% for marketing, and diamond business marketing costs accounted for only 1% of turnover, there are a lot of things Worthy of us and downstream enterprises to do.