Inhouse Content Team’s Post

💎 The creation of a 340B dollar diamond jewelry market, 90% owned by De Beers, is a fascinating tale of marketing and monopoly. Some stats for context: • In 1940, 10% of American women received diamond engagement rings. • By 1990, the figure skyrocketed to 80%. 🌍 How did De Beers, a global diamond monopoly, do this? Let's delve into history. Founded in 1888, De Beers saw Ernest Oppenheimer join its board in 1926. Eventually becoming CEO, he seized control of diamond trade, dictating both supply and demand. Diamonds were a symbol of royalty before the 19th-century. However, the South African diamond rush flooded the market, driving down demand and prices. To maintain high demand, De Beers harnessed their monopoly to limit supply. 🎯 Goal: Transform the engagement tradition. The idea? Convincing men that diamonds were the ultimate symbol of romance and success. Women should see them as engagement essentials. Phase 1: Celebrities and diamonds were linked in public perception. Phase 2: De Beers paid for diamonds to be showcased in movies, instilling them as a symbol of love and status. The bigger the diamond, the greater the love. Phase 3: "A Diamond Is Forever" - a slogan crafted in 1947 that turned diamonds into symbols of eternal love. It also cleverly addressed the resale value issue, ensuring perceived value remained high. Phase 4: High school lectures across the U.S. exposed young girls to the idea of diamond engagement rings. Phase 5: Ideas like the "right-hand ring" and "eternity ring" were introduced to further embed diamonds in societal norms. Phase 6: The diamond demand created in the U.S. was replicated in other markets. In Japan, diamond engagement rings went from being a rarity (less than 5%) to a norm (over 60%) between the 1960s and 1981. Despite numerous scandals and allegations, De Beers' monopoly and ingenious marketing strategies continue to shape the diamond industry. It's a potent reminder of how market perception can be meticulously crafted and controlled. #DeBeers #DiamondIndustry #MarketPerception #BrandStrategy #MarketingStrategy #EngagementRings

  • No alternative text description for this image

To view or add a comment, sign in

Explore topics