The World Diamond Council (WDC) held a virtual Annual General Meeting on 19th October, 2020, featuring guest speakers David Prager, Executive Vice President Corporate Affairs of the De Beers Group, and Edward Asscher, WDC President. The talk on ‘How to Meet the Expectations of the Changing Consumer’, was moderated by Edahn Golan, prominent diamond industry analyst.
Here are some highlights from their discussion:
De Beers has undertaken regular research to understand how pandemic has affected consumer purchase behaviour. The study indicates that 65% of Americans are inclined to give a gift to someone they love, compared to the pre-pandemic level. The figure increases to 77% for those in a committed relationship.
There is a growing awareness of gratitude for life and relationships and there is an increasing appreciation for things that were previously taken for granted.
Covid-19 has forced consumers to reevaluate what’s important to them, and they are purchasing fewer but better things, and choosing mindfully.
Luxury is no longer just about displaying social status and exclusivity. Now luxury is about inclusivity and how brands align with consumer values.
Consumers gravitate towards brands that take action on issues like environmental concerns, sustainability and fair labour practices. Brand acceptance requires consumer trust, and this trust must be verifiable.
Consumer confidence in diamonds is predicated on the assumption that institutions like the KP and the World Diamond Council’s System of Warranties (SOWs) are robust. These institutions must meet baseline standards that are the backbone of the industry.
It is an indisputable truth that the nature of “conflict” has evolved and the KP itself requires reform and the industry must reach consensus on the new definition of conflict diamonds.
The industry must support the 7 principles of responsible diamond sourcing that deal with: Labour rights, Human rights, Environmental rights, Developing communities, Differentiation between natural and synthetics, Anti-corruption and Anti-money laundering (AML).
In the coming three months, the WDC will test the new SOWs and launch it in the early part of next year.
On integrating ethics into business, De Beers cited the example of its Best Practices Programme, while WDC pointed that major and medium-size miners have the ethics programme implemented, the artisanal and small-scale miners are being supported by WDC through training facilities so that they can earn more.
De Beers has so far spent a total of $10 million on Covid response and this will continue to grow as we enter the recovery phase.
KP should be a facilitator to trade and not a barrier. KP should target individuals responsible for human rights violations and will not seek to impose a blanket country-wide ban as it can hurt the economy.
Caption: (From left) WDC President Edward Asscher, David Prager, Executive Vice President Corporate Affairs of the De Beers Group, and Edahn Golan, industry analyst.