Friday, August 26, 2016

What has happened to the diamond business -and diamonds marketing- since 1982? by Nicolás Rincón Díaz

Brief Introduction

If you've ever read Have you ever tried to sell a Diamond?, or heard about the scam of the diamond industry, you should know the basics of this: Diamonds and its added value are bullshit.

Basically, the DeBeers company made US citizens believe that buying a diamond was a symbol of eternity and endless love, their slogan, 'Diamonds are Forever' was incredibly successful and led sales to increase greatly. In the article, How an Ad Campaign Invented the Diamond Engagement Ring its stated that "between 1939 and 1979, DeBeers' wholesale diamond sales in the United States increased from $23 million to $2.1 billion. Over those four decades, the company's ad budget soared from $200,000 to $10 million a year".

And every time diamonds seem to loss interest in the public, the DeBeers company would come out with another clever lie about the greatness of these rocks, boosting their sales and earnings. Among my favorites slogans there are:
  • "I never hated a man enough to give him his diamonds back."
  • "She already knows you love her, now everyone else will too."
  • "Give her what she is waiting for… A symbol of forever."

Even one aimed for women investment instead of men:
  • "She has a mind of her own. She gave me a diamond".

But, has something occurred to the diamond industry since Edward Epstein wrote about it in 1982? After all, he exposed the business strategy and showed everyone why getting a diamond is just a waste of money. Apparently, no.

Stats

Actually, statistics (see the following chart) don't seem to even suggest a possible ending of the industry, with constant growth on demand and world popularity (the plunge at 2009 was a result of the recession of those years). By the year 2017, it is expected for the rough demand to reach it's highest peak since 2007, and from there on, to continue growing.


And it's not only the constant growth of the diamond demand what should concern us. Cultural processes as the ones that took place in Japan between 1967 and 1981 seem to be repeating in China, the second largest consumer market in the world.

Just as it happened in Japan, the practice of using diamonds as a way of expressing deep and eternal love, and also proposing marriage to the woman, was practically non-existent by the year 1994, but by year 2010, more than 30 percent of Chinese couples were using it. Thousands of years of traditional marriage are being suddenly crushed by the concept that diamonds are equal to happiness, wealth, eternity.

Along with China, India is also becoming every year a stronger market for diamond consumers, and once the bigger economies agree unanimously that diamonds are indeed the greatest and best rock for a man to buy for a woman, is just a matter of time before it's spread to other minor countries. In a globalized world, the first world trends can be adapted or taken by third world countries.


It seems that the "diamond culture" is already way developed and there isn't much to do, and in fact that's the reality. Not many people is informed in the topic and they will continue buying diamonds to their couples, thinking they are getting a rare and unique piece of rock with great monetary value (when the reality is that there's still a fuckton of diamonds held by  the DeBeers), and the one who knows, won't take the risk of getting their girlfriends pissed (see second definition) at them. In fact, is really hard to not perceive diamonds as a symbol of luxury.

Conflict diamonds

"... diamonds illegally traded to fund conflict in war-torn areas, particularly in central and western Africa." (taken from Diamondfacts on Conflict Diamonds)
Also known as blood diamonds, had become a major problem for the countries involved in it (Angola, Ivory Coast, Democratic Republic of the Congo, Liberia, Republic of the Congo and Zimbabwe), as its consequences go from ecological impact to civil wars, worker exploitation, violence and so.

The US, being the biggest consumer of diamonds in the world, has strong policies against the importation of such.

In 2003, the UN approved the Kimberley Process Certification Scheme, which aims to reduce the illegal diamond traffic as well as imposing criminal charges to anyone trafficking with them. It forces the governments to "... keep records of of the diamonds they are exporting and importing and how much they are worth." (taken from Wikipedia on Blood diamond)

Final note

As responsible consumers, we should be concerned (or at least amused) on the power of advertisement, if they could give a really big economic value to a rock, maybe, who knows, in the future something similar could happen with grass or air.

Also, it's important to know and reflect how nowadays a product may have really big implications. Diamonds, as it was mentioned, ended up impulsing the civil war in Africa, and essentially they are just a worthless piece of rock.

Finally, here's a funny review of the topic made by College Humor in their series Adam Ruins Everything.



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