South African diamond giant broadens global appeal of bling

Although diamond demand in the United States, the world's biggest market, is expected to remain strong, South African diamond giant De Beers' marketing arm, the Diamond Trading Company (DTC), is eyeing new markets.

Local daily Business Day reported on Tuesday that the diamond giant expected global retail demand to grow six percent in local currency at the retail level for the remainder of this year due to marketing activity and strong growth in many economies.

In Japan, the DTC has had great success with its Trilogy campaign -- the three-stone diamond jewelry segment has tripled. Japan equaled US retail spending on diamond jewelry in 1993-94 and has slipped back to become the world's second-largest market, with a 15 percent share against the US' 50 percent.

But De Beers Managing Director Gary Ralfe said the country has a high savings rate and the Japanese are willing to spend on diamonds.

In India, the retail market for diamond jewelry grew 24 percent in 2003 and 21 percent last year. De Beers is actively promoting products specifically designed to appeal to the Indian consumer.

China is a critical market and already eight out of 10 brides in Shanghai, which influences trends elsewhere in China, are receiving diamond wedding rings. China's retail market is worth 1. 4 billion dollars and grew 11 percent last year.

In the Gulf states, diamond jewelry sales at Ramadan grew 15 percent last year and 4 percent in 2003.

The target set for new De Beers Managing Director Gareth Penny, who will be taking up his position in the first quarter of next year, would be to double the value of the group to 12 billion dollars by 2009, according to Gary Ralfe.

Source: Xinhua