Are diamonds really valuable or just a brilliant marketing strategy?
Are diamonds really valuable or just a brilliant marketing strategy?
Are diamonds really valuable or just an exceptional marketing strategy?
There was a time when diamonds had no value, but a clever marketing approach has changed that perspective. In the 1870s, the diamond industry planned to attract more tourists to its mines.
They found a way to increase their market and increase their price at the same time. They have become a status symbol and a store of value.
But if you’re planning on buying one soon, there are some facts you need to know about diamonds. Diamonds last a lifetime is just a notion based on a marketing strategy to make them seem precious.
The first diamonds people used were jewelry. The first man to carve one out of a precious stone was a Greek slave named Theophilus in 360 BC. J.-C. In reality, Théophile was not the first man to cut diamonds. A thousand years ago, in the ancient land of India, a farmer found a diamond while plowing the field.
The farmer immediately took the diamond to the nearest gemstone dealer to sell.
At that time, the diamond would have had no real value. The first diamonds weren’t cut for gemstones, they were used to adorn the bodies of the gods in ancient India.
When Théophile discovered that the gem (diamond) he had found was not a worthless stone but a precious stone. He cut the diamond into small pieces and used it to adorn his jewelry. Théophile was the first to discover diamonds.
They have a reputation for being rare, valuable and a status symbol. it is obvious to say that it is a product in great demand by sophisticated city dwellers. In today’s market, the typical diamond engagement ring costs $3,000. Of course, you have to pay a deposit on the ring, then you also have to pay the finance charge.
As for the value, it’s a combination of the amount you deposited, plus the obvious statement that the ring will fetch top dollar at the time of sale.
If you buy a five-carat ring for $3,000, it will fetch you around $10,000 when it’s time to sell, because there’s not much middle ground.
The reality of its rarity is that it is anything but.
Clear diamonds, contrary to common assumptions, are not rare but are found in abundance in reality.
De Beers established a monopoly and made love tangible. It was his master plan. Their current value is the result of this market strategy.
Diamond engagement rings are now owned by 75% of American women and a growing number of newlyweds around the world.
There are several alternatives for diamonds, but nothing beats an engagement ring with a diamond on it, says Kiran Datwani, owner of Gehna Jewelers, in a Vogue India article.
Choose the most beautiful ring you can afford.
De Beers acquired all the South African mines and controlled 90% of the world’s diamond production at the height of its strength in the early 1900s. Of course, in today’s society, cartel tactics to enforce the monopoly would be frowned upon.
He bought independent producers when competitors refused to join, they made gemstones identical to their own and bought all the gemstones from their competitors, and bought diamonds at a greatly reduced price during the Great Depression.
They realized that in order to set prices and fully control the supply of diamonds in the market, they ensured that no one was reselling diamonds.
That’s when they turned to market firm NW Ayer & Son, which Advertising Age says created the best slogan of the 20th century: “A Diamond is Forever.” which is used by several brands in place of their slogans for the marketing of diamonds.
Sell the Diamond idea, not the product, using a notional and customer value marketing approach.
Most agencies would have opted for sales, attractive packaging or promotions at the time. Strategy, on the other hand, must sell a concept for a product to become part of a lifestyle. Diamonds were created to symbolize long term love and devotion.
De Beers made sure no one resold their engagement ring by attaching sentiment to the diamonds. They also inserted this belief into the concept of “marriage,” a once-in-a-lifetime event in which the parties typically spend a lot. Who sells their engagement ring, after all, and if it’s not resold, then they can have complete control over the offer.
De Beers campaigned for the popularity of surprise proposals with Ayer’s support. The rings are designed to be worn by women in typical partnerships. They found that when women were involved in the selection process, they often chose less expensive rings.
De Beers has redistributed purchasing power to men, the least spenders, by favoring surprise offers.
Finally, use an influencer marketing approach to position your business.
The agency realized that in order to influence audiences, it had to do so through popular women in pop culture. Naturally, they sent diamonds to celebrities and stars, state first ladies and socialites.
Ayer organized 125 newspapers to feature the jewelry these women wore in the late 1940s.
Diamonds were quickly seen as valuable luxury requirements around the world. From a Marilyn Monroe hit song to a James Bond movie title
De Beers (still the largest diamond company in the world) now controls just 35% of global diamond production, down from 90% in the 20th century. However, the company’s legacy of “creating” the diamond will live on.
De Beers only authorized about 200 people or companies to buy rough diamonds. These people are called sightholders and buy diamonds from the Central Selling Organization (CSO), a subsidiary of De Beers that sells around 70-80% of the world’s diamonds.
Apart from the CSO, some rough diamonds are sold. These diamonds come from small producers in Australia, Russia and Africa. CSO pricing continues to have a huge impact on the price of these gems.
The Diamond Price Index is a measure of the current diamond market price trend.
Although diamonds, like many other minerals, lack intrinsic value, that does not mean they are worthless; this is incorrect for jewelry and industrial diamonds. The value of gem-quality diamonds used in rings is determined by the value we place on them as a society.
Jewelers acquire loose diamonds at wholesale prices, which are significantly cheaper than retail prices, which is why resale prices are so low compared to retail prices. When a diamond can be purchased for much less from a diamond dealer, there is no need for a jeweler to pay the same amount for your diamond.
De Beers persuaded the public to buy diamonds far into the 21st century. The “Past, Present, and Future” three-stone ring debuted in 2001 and immediately became the go-to birthday gift.
The 2006 “Journey” jewelry line used the same concept, but instead of making a statement with just three stones, it symbolized how love grows by joining a succession of various diamonds ranging in size from small to huge. . In 2004, De Beers launched the “Right-Hand Ring” campaign, which invited women to buy diamonds as gifts for themselves, in order to attract a hitherto untapped market segment: single women.
As the high demand for diamonds shows, they are the most valuable of all valuable jewels.
Diamonds are wonderful stones that go through a long and painstaking process of refining from the time they are mined from the ground to the time you see them in the jewelry store, although this has not always been the case.
And, while some of the mystery around diamonds may have faded – after all, they’re just carbon – the diamond will undoubtedly remain a highly sought-after gem.
edited and proofread by nikita sharma