By Jennifer Heebner, Editor in Chief
De Beers’ CEO Al Cook and a host of other De Beers executives, as well as one from Boston Consulting Group (BCG), offered insights into company plans during the most recent shows in Hong Kong. On Thursday, Sept. 19, the “Spotlight on De Beers Breakfast” took place at the Jewellery & Gem World Hong Kong Show, Sept. 18–22, 2024.
Executives did not talk about its impending sale—De Beers’ owner Anglo American revealed in the spring that it would divest the company—but did outline other key points of importance for its current strategy. Takeaways are below.
Al Cook, CEO, De Beers
Al Cook, CEO
On Supply
“In the U.S., when you say Diamonds, you think De Beers. We produce more than a 1/3 of the world’s Diamond supply, with Alrosa as the second-largest producer. Our production reserves lead to margins. The key to our future is Botswana. Diamond supply is expected to fall 1% per annum to 2040. We’re pumping in millions of dollars for Diamond exploration, and we only have one commercial discovery this century, which is Angola.”
On Synthetics
“The lab-grown Diamond (LGD) market is collapsing, with a 25% yearly decline in the prices of 2.0 ct. LGDs. By the end of the decade, we expect that 90% of LGD sales will not compete with natural Diamonds because retailer incentives to sell LGDs are shifting back.”
On De Beers’ Future
“We are lowering our overhead by 25%. We are shifting resources from the back office to the front line, shedding 300 jobs, and closing offices in Singapore and Dubai. Every element of De Beers will have a positive value by itself.”
On Retail
“De Beers is also opening a flagship store on the Rue de la Paix in Paris in fall 2025.”
Al Cook, CEO, De Beers
Adrian Rodrigues, Managing Director and Partner, BCG
On Natural Diamond Demand
“Diamond demand is linked to economic outlook, GDP growth, and discretionary purchases. LGDs will cause 2–3 years more disruption in the market—learn more about that in “The Future of the Natural Diamond Industry” report on the BCG website.
On the Luxury Market
“The luxury jewelry market will grow 5% over the next decade. Branded jewelry will outperform unbranded jewelry, and the continued growth of branded jewelry will create positive tailwinds in the market.”
Sandrine Conseiller, CEO, De Beers Brands
Sandrine Conseiller, CEO, De Beers Brands
On Marketing
“Category marketing is our formula, and we want to be where the consumer is. By the end of October, we will increase spending for “Seize the Day” ads by 10%. De Beers also debuted a new collaboration with Indian retailer Tanishq to boost the country’s natural Diamond market. We’re working with influencers to create super emotional content to help transform desire into sales.”
On Bridal Sales
“In 10 years, more of Generation Z will be getting married, and 70% will buy a branded Diamond.”
On LGDs
“Some 66% of those who bought LGDs will not say it’s an LGD—some because they don’t know, so disclosure is an issue. Lightbox was made to tell consumers what to pay for LGD jewelry.”
On Retail
“Signet has 22,000 jewelry assistants, and we are helping to train them to sell natural Diamonds.”
This is proprietary content for AGTA and may not be reproduced.