The Diamond Producers Association (DPA), the international alliance of world’s seven leading diamond mining companies —ALROSA, De Beers, Dominion Diamond, Gem Diamonds, Lucara Diamond, Petra Diamonds and Rio Tinto — is eyeing the Indian market to boost diamond consumption in the country.
The association has opened an office in India, the second in the world after the U.S., to work closely with various stakeholders to promote diamond besides making Indians realise the importance of diamond in history and in their lives.
It has also allocated a significant marketing budget towards promotional campaigns on diamond. Out of its total global marketing budget of $70 million, DPA would spend $7 million in India in 2018 and its first advertisement campaign in India — ‘Real is Rare. Real is Diamond’ — will be rolled out this month.
India, with a population of more than 1.25 billion, is a very small market for diamond trade. It accounts for 7% of global diamond consumption, while the U.S. consumes 47% of all diamonds produced, followed by 16% by China. Despite this, the DPA believes that the Indian market has a vast potential for growth and can grow more than the GDP of the country every year. Currently, India consumes about $1.5 billion worth cut and polished diamonds.
DPA, whose members together represent more than 75% of the world’s diamond production, is working closely with the Gem Jewellery Export Promotion Council (GJEPC) to build trade relationships, best practices and a strong consumer connect through various market development initiatives, top officials said.
“We have decided to make India as our second priority market after the U.S. as India is the natural home of diamonds,” said Jean-Marc Lieberherr, CEO, DPA.
“It is where they were first found, used and given. It is where 90% of the world’s diamonds are being cut and polished. It is only natural that the DPA should focus its efforts on working with the local trade to realise the potential of India as a diamond market,” he said. “Our objective is to create an emotional and cultural bond of Indians with diamonds,” he added.
Richa Singh, managing director India, DPA, said, “Our core objective would be to strengthen DPA’s engagement with industry, non-industry organisations and create a strong connect with consumers to build the diamond category.”
‘Real is Rare, Real is a Diamond’ campaign will promote a new message about diamonds.
“As consumption grows, diamonds would be rare in the coming years,” said Mr. Lieberherr, who was the former chief commercial officer and MD of Rio Tinto’s Diamond division.
Source- The Hindu