Ever heard of De Beers? The company that practically invented the diamond industry as we know it? Well, they are in for a shakeup.
They are planning to sell their coal, nickel, and platinum operations, but the biggest news is they are proposing to sell off De Beers itself.
Once the crown jewel of the diamond world, De Beers' sparkle has been fading for decades. Back in 2000, they stopped trying to control the diamond supply and prices. More recently, their business has been, well, on the rocks. (Pun intended.) Anglo American even marked down its investment in the company by a hefty amount.
So, what is the deal? Weak demand from the U.S. and China is part of the story, but the real game-changer is lab-grown diamonds. These beauties are nearly identical to the ones De Beers digs up but cost a fraction of the price. No wonder they have been chipping away at De Beers' market share.
Fun fact: An analyst says lab-grown diamonds now make up about a fifth of the value of diamond jewelry sales globally. In the U.S., nearly half of the diamond engagement rings sold this year could contain a lab-grown stone. Talk about a plot twist.
De Beers faces an uphill battle to convince buyers to choose between two virtually indistinguishable stones. And with more Chinese and Indian newcomers joining the fray, the price gap between lab-grown and mined diamonds is only growing.
People buy diamonds for their sparkle and their symbolism, whether it is a sign of undying love or a family heirloom. De Beers needs to recapture that marketing magic from the 20th century—the same magic that convinced us to spend one (and then two) months' salary on an engagement ring.
Their latest slogan, "Diamonds are nature's mic drop," is not exactly striking gold. So, whoever buys De Beers will need to be a marketing wizard too. Any takers?
Private Client Property Consultant
3moI love roses , the smell the taste , the appearance, I think I would like this I’ll go check it out today . I hope my impulsive habit kicks in whilst I’m at it 🙈