The Future of Diamonds
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1 The Future of Diamonds How Social changes and the New Consumers are impacting the diamond sector 1
2 How Social changes and the New Consumers are impacting the diamond sector 2
3 SUMMARY ABOUT FORECASTING VIP MARKET SPECIALIST LINKING THE DOTS THE FUTURIST LEADS What is forecasting? Forecasting is the use of historical data to determine the direction of future trends From big data to consumer attitudes Digital Era & Web Culture: reading Consumers Culture
4 WHAT IS FORECASTING Forecasting is the use of historical data to determine the direction of future trends. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. This is typically based on demand for the goods and services a company offers, compared to the cost of producing them. Investors utilise forecasting to determine if events affecting a company, such as sales expectations, will increase or decrease the price of shares in that company. Forecasting provides an important benchmark for firms which have a long-term perspective of operations. Source: Forecasting Definition Investopedia - 4
5 Trends Forecasting is the essential knowledge for any Company for planning with methodology and systems: A strategy, a marketing campaign, mapping a production cycle, entering a new geographic market or segment. Understanding consumer culture and taste, translates into knowing which values, language, design atmospheres, product directions and colours they will buy into and how. 5
6 VIP MARKET SPECIALIST BRUNO SANE COSTANTINO PAPADIMITRIOU GAETANO CAVALIERI JEAN MARC LIEBERHERR ZHANG CHEN Managing Director Head of Brand Strategy and Innovation President CEO Chairman MINEYOURMARKET FOREVERMARK CIBJO DIAMOND PRODUCERS ASSOCIATION SUZHOU FUNCTION GROUP 6
7 About Millennials and their interaction with Diamond Jewellery? 7
8 Jean Marc Diamond Producers Association Millennials represent 30% of the U.S. population for 40% of the diamond market and they rank diamonds just behind travel & entertainment and electronics as preferred high value gifts. Millennials love the diamond narrative as a natural product as old as life on Earth, a unique symbol of authenticity. As marriage rates go down, millennials get married later and tend to reject prescribed rituals. We need to go back to talking about what a diamond fundamentally is: a uniquely beautiful, precious miracle of nature which because it is authentic and rare is the perfect symbol of the most sincere, precious and genuine See More 8 May
9 Gaetano CIBJO, The World Jewelry Confederation Milan, Italy Millennials have the tools and ability to examine what social impacts our diamonds and jewellery have for good and for bad. It is in our interest, therefore, to act proactively. Mined diamonds vs synthetics diamonds do your see any real conflict going forward? Over the long term, I do not see a conflict. These are different products, and I believe that synthetics will find their place, in such a way that they complement rather that compete with natural diamonds See More 8 May
10 Costantino of Brand Strategy and Innovation at Forevermark Bridal will continue to be an important segment to the diamond category. As consumers search for other ways to celebrate life's successes new jewellery designs will develop. In many instances we may see simpler and even bespoke designs. And diamond jewellery for every day See More 8 May 2017 Gaetano CIBJO, The World Jewelry Confederation Milan, Italy All indications are that this heightened level of ethical awareness is even more prevalent with Millennial consumers, who are more likely to demand that the products that they buy have social, as well as aesthetic and monetary value See More 8 May
11 What about Diamond Marketing today? 11
12 Gaetano CIBJO, The World Jewelry Confederation Milan, Italy Old school advertising is less relevant today. Younger consumers, including Millennials, have little use for the print media, including newspapers and print magazines, with the exception of an elite group of publications, such as Vogue and Marie Claire. Millennials do watch a great deal of TV, but it is generally via media like Apple TV, Amazon and Hula, where classic TV advertising no longer exists. My suggestion would be to create a communications and advertising campaign that is heavy on the new digital and social media, which can be highly selective in targeting audiences, and well as effective in delivering content that is tailored for their needs. I would also suggest a strong public relations element, particularly in educating consumers to differentiate between natural diamonds and synthetics, and emphasizing our positive societal role See More 8 May
13 Bruno Director at Mineyourmarket We are promoting the rarity of our product. Are we giving the same rare experience to the consumer in the store? Buying a diamond should be a moment of happiness. And it starts with the product. Not only the technical specifications but the stories around the product, its origin, the way it was found, mined, designed and manufactured... There are so many bright stories that are worth telling the consumers. The luxury industry is a fine balance between exclusivity and accessibility. We need now to invest again in the exclusive image of our product. This is the way to get back to a balanced and sustainable business See More 8 May
14 About Bridal Jewellery 14
15 Bruno Director at Mineyourmarket Marriage has been the generic occasion. The real opportunity for the diamond industry is to create new occasions for gifting. And to communicate around this happiness just as it was so brilliantly done for the engagement occasion See More 8 May 2017 Costantino of Brand Strategy and Innovation at Forevermark The desire for diamonds still remains strong across all age groups. It remains especially strong for Millennials. What we are seeing is a shift in age of bridal purchase. Today Millennials are marrying at a later age, preferring to spend their early twenties in a great period of self discovery. Bridal will continue to be an important segment in the diamond category. As consumers search for other ways to celebrate life's successes new jewellery designs will develop. In many instances we may see simpler and even bespoke designs. And diamond jewellery for every day See More 8 May
16 About Synthetic Diamonds 16
17 Jean Marc Diamond Producers Association On the record: a diamond is by definition a natural precious stone, billions of years in the making, formed hundreds of miles below the Earth s surface. It is the mystery of its origin and its inherent rarity that has captured the imagination of consumers for thousands of years. A synthetic diamond is no more than an industrial reproduction of a diamond produced and reproduced in a factory in a matter of weeks. It has no resale or emotional value because it is simply a manufactured product, not a precious stone. It is that simple. Real is Rare, Real is a Diamond launched by the DPA. The DPA launched this platform with its first Real is Rare campaign in the U.S. in October 2016, and will launch its first Real is Rare Indian campaign in September 2017, and its first Chinese Real is Rare campaign in April 2018 See More 8 May
18 Costantino of Brand Strategy and Innovation at Forevermark Mined vs synthetic. Mined diamonds are natural, created over billions of years. No two diamonds are the same. The Earth does not produce any more and they have enduring value. Synthetic diamonds are machine made and with progress will become cheaper. There is a place for them within the jewellery world as long as they are correctly declared See More 8 May 2017 Gaetano CIBJO, The World Jewelry Confederation Milan, Italy I believe that synthetics will find their place, in such a way that they complement rather that compete with natural diamonds. Millennials have the tools and ability to examine what social impact our diamonds and jewellery have for good and for bad. It is in our interest, therefore, to act proactively. Mined diamonds vs synthetic diamonds: do you see any real conflict going forward? Over the long term, I do not see a conflict See More 8 May
19 Zhang of Suzhou Function Group I don't really know much about synthetic diamonds, but I think that it will be or has been a growing market in China. They are eco friendly and social friendly, have the same quality as natural diamonds, and have a much better price compared with natural diamonds. I have a suggestion to protect the markets for natural diamonds as well as synthetic diamonds: one should really make a clear difference between synthetic and natural diamonds. It is like differentiating or segmenting synthetic diamonds as another type of stone, which is totally different, individual and incomparable with natural diamonds. If the development of the market for synthetic diamonds could be like that, I think this will work well to protect the market for natural diamonds. But of course, the growth in demand for synthetic diamonds can't be decided by me or by anyone else: it is decided by the market See More 8 May
20 Talking about Diamonds 20
21 Bruno Director at Mineyourmarket The purchase of diamond jewellery is driven by three criteria: The first is the Occasion to buy, the second is the Design of the piece, and the third is the Price. In the luxury world, design and designers are at the heart of innovation. Innovation is, more than anywhere else, an absolute necessity to keep the consumers engaged in the category, be it in luxury cars, Haute Couture, watches or bags. The diamond industry should invest much more into design and designers as they are the source of the first emotion that a consumer feels when looking at the product. We are far behind the rest of the luxury industry regarding this key driver of sales See More 8 May
22 Costantino of Brand Strategy and Innovation at Forevermark Today consumers are creating many more opportunities to celebrate with diamonds. I believe all men and women should enjoy wearing jewellery and diamonds See More 8 May 2017 Zhang of Suzhou Function Group I am very confident about the future market. I think that there are two main reasons contributing to the growing market: firstly, with strong economic development in China, more and more Chinese people, especially women, love to dress up with jewellery. And secondly, some people see buying collectable diamond jewellery as a way of investing See More 8 May
23 Zhang of Suzhou Function Group From the early stages of diamond consumption, no matter where in the world, people see the gems as an investment, just as they do in China. But nowadays, more and more people, especially more educated people, think that diamond jewellery represents personal taste as well as human emotions... See More 8 May
24 LINKING THE DOTS - FROM BIG DATA TO CONSUMER ATTITUDES We must be analytical about the market and emerging phenomena. Data and statistics will not create saleable collections for the modern Consumer, nor effective marketing campaigns 24
25 PANDORA 25
26 THE FUTURIST LEADS 26
27 DIGITAL The Future of Diamonds ERA & WEB CULTURE READING CONSUMER CULTURE AND FOLLOWING MACRO TRENDS ONLINE: VALUES, HABITS, PRODUCTS & STYLING Society s values are displayed online. Between social networks, #tags classify trends, Product directions, tastes and habits, and make it easy to read what the market is looking for. 27
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29 REINTERPRETING BRIDAL JEWELLERY FOR MILLENNIALS New sets of values are transforming conventional rituals. Millennials are breaking the rules and reassessing conventional weddings. Reinterpreting Bridal jewellery and how to sell it is the next challenge. 29
30 UNCONVENTIONAL WEDDINGS TRANSLATE INTO NEW TYPES OF BRIDAL JEWELLERY 30
31 UNCONVENTIONAL BRIDAL JEWELLERY 31
32 A NEW DIAMOND CULTURE FOR THE MILLENNIALS Diamond Culture inevitably must follow changes in Society. It is crucial to play a key role online as part of everyday life. Editorial content should follow and embrace personal values, tastes, purchasing habits, Product preferences & Styling * The Midult Consumer The Future of Diamonds 32
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34 CONSUMER DIRECT ERA: TRADERS AND VERTICAL ORGANIZATION SHOULD ENGAGE CONSUMERS Commercial diamond websites do not invest in engaging content, such as editorial and graphics. Unlike other luxury categories such as fashion and accessories, diamond websites promote prices and the technical aspects of the Stone. They do not focus on romance or supporting consumers choices in style and design. The Future of Diamonds 34
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39 NEW DIAMOND JEWELLERY FOR NEW NEEDS Endorsing consumers individuality translates into creating Collectable Diamond jewellery. Collections not necessarily sold by the set. Body jewellery is a clear example of emerging trends from the underground Culture to the Mainstream. 39
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42 SELF The Future of Diamonds EXPRESSION CONSUMERS ARE SEEKING VERSATILE STYLES TO EXPRESS THEIR INDIVIDUALITY: SIMPLICITY, TIMELESS, FUNCTIONAL Luxury today should be functional and comfortable. Phenomena such as as Athleisure, show how people s preferences Transform entire industries. 42
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44 FORGET OLD SCHOOL ADVERTISING EMOTIONAL COMMUNICATION AND CONTENT IN NEW MEDIA Be aware of technology culture: translate not only the use of it, rather become a player and understand the dynamics of the new media. Global brands are hiring influencers and bloggers. Entertaining consumers online is a new art that channels SALES The Future of Diamonds 44
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46 DEVELOPING A DIAMOND JEWELLERY CULTURE THAT FOCUSES ON ACTUAL CONSUMERS NEEDS, PRODUCTS AND STYLING Data and statistics are relevant when associated with a deep understanding of consumers Culture and Social changes. A new meaning of Luxury has emerged. New values, visual Codes, aesthetics, tastes and habits are crucial factors for the future of the Diamond industry. Investing in a new Diamond Culture is the biggest challenge of the Sector. 46
47 VALENTINO 47
48 paoladeluca.thefuturist The Futurist-Pdlg Paola De Contact: 48
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