De Beers' share to 35% now means that our industry was no longer managed by one industry leader

The recent announcement of the establishment of the Diamond Producers Association is a welcome news.

Seven diamond-mining companies, ranging from ALROSA to Gem Diamonds, which together sell over 70% of rough diamonds, have set themselves the goal of "supporting the development of the diamond sector", using a wide range of powers and an initial budget of $ 6 million.

The expansion of cooperation in our industry occurred at the most appropriate moment, given the challenges that we need to cope with.

I believe that there are four main priorities that the Association should include in its work plan. All of them are aimed at achieving one key goal: maintaining consumer confidence.

Let's first return for ten years ten years to understand how we came to where we are now.

Difficulties encountered on the easy way

Until the early 2000s, our industry worked as a confidently going train, which was led by De Beers.

Since it accounted for 80% of diamond sales, it had an incentive to ensure a quiet journey. De Beers dealt with all travel issues, from diamond marketing campaigns to the management of diamond and diamond supplies.  

Such leadership meant that diamond-diamond companies could comfortably enjoy the trip.

But the gradual decline of De Beers' share to 35% now means that our industry was no longer managed by one industry leader. Instead, thousands of diamond-diamond companies have become the driving force of their own destiny.

Negative impact on consumer confidence

I have already covered the challenges associated with excessive fragmentation and lack of leadership, as well as the possible benefits from consolidation and other consolidation.

As a form of association, the Diamond Manufacturers Association can deal with key trends that have emerged in recent years, and which, if not addressed, can undermine the main pillar supporting our industry: consumer confidence in diamonds.

Both the price of diamonds and diamond prices are completely based on consumer confidence, and therefore without it our industry is unlikely to prosper.

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