Stanley T K Wong’s Post

Al Cook wants to be unshackled from what he portrays as a limiting factor to be owned by Anglo American, Anglo American wants to get rid of De Beers and now Botswana wants Anglo to sell De beers as soon as possible so everyone is on the same page. It is all Anglo American's fault of doing a poor job running De beers. From what I can see, the worst decision that was made by the Anglo American board is to appoint Al Cook as CEO unless Duncan Wanblad has been micro-managing De beers. I do not have any insider information on the workings of how decisions are made by De beers but based on what I have read about the "Origins" strategy announced in drips and drabs out of JCK, Al Cook appears to be a lost soul. He is going to exit CVD manufacturing for jewellery by Element Six but he will be keeping Lightbox on life support. For how long ? They will defer a decision on how to supply Lightbox with CVD in about a years time while they sell off inventory on hand. So they have a lot of inventory ! Lightbox will try to sell off what they have to consumers but not what consumers may want to buy. Shutting Lightbox is off the table. Does Al really understand the retail business ? There are many ways to get rid of excess inventory other than having a year-long "Going Out of Business" sale. It is demoralising for the Lightbox staff and it is not what "meeting consumer needs" is all about. Al Cook claims Lightbox polished CVD is Made in America. Is it really ? The last I heard colour treatment and polishing are done in India. Now De beers will also sell polished loose diamonds under the De Beers brand name on top of opening a mega De beers Jewelers store in Paris and expanding Forevermark in India and China. Oh yes, it will also carry out generic advertising to sell natural diamonds. Does Al have no budget constraints ? Can they afford to promote their own branded diamonds and jewellery and also support the retailers ? De beers business model is getting more and more complicated with each new pivot. I do hope that Al Cook will get his chance to run a listed company so the market can teach him about the need for discipline. He is being insulated right now. As I have suggested, he should go back to B school if he likes the glamour of retailing so much. Reading the tea leaves, maybe someone should be in charge of De Beers even before it is sold. From my perspective the great "Origins" plan is much a do about nothing. No hard decisions have been made on such a simple matter such as Lightbox. What further testing do they need to carry out to admit that Ligthbox was a big mistake. Why drag out the agony ? I would not rule out Al Cook deciding that Element 6 will revive growing CVD for jewellery in a few months. I am not Mckinsey, Bain or Boston Consulting Group so no one may choose to listen to me.

Selling De Beers is high jeopardy for Anglo boss, analysts say Interesting choice of headline as "high jeopardy" means "high danger of being damaged or destroyed". There is much important debate and discussion on LinkedIn concerning marketing options for natural diamonds and LGDs but for me, the more important issue for the industry is the future of De Beers Group as the industry leader and this will chiefly be determined by how it is divested by Anglo American and critically access to future funding. Sadly, there is much current speculation and uncertainty on these issues and the sooner this gets resolved the better for the industry. #diamonds https://lnkd.in/dDshJnkn

According to the Wall Street Journal, Anglo American is exploring the possibility of selling De Beers, the renowned diamond group. 🔹 Market Analysis: De Beers has faced challenges in the global diamond market, leading to under-performance in sales volumes and prices, as highlighted in the WSJ article. 🔹 Strategic Shift: In response to market dynamics, De Beers has adjusted its production forecast for 2024, reflecting a 10% cut. Anglo CEO Duncan Wanblad emphasizes a cautious outlook due to ongoing economic uncertainties. 🔹 Strategic Review: Wanblad had previously hinted at a comprehensive review of Anglo's assets, indicating a willingness to consider various options, including divesting De Beers. 🔹 Potential Buyers: The WSJ reports that Anglo has engaged in discussions with potential buyers, including luxury houses and Gulf sovereign wealth funds. While discussions are preliminary, Anglo remains open to offers, with the possibility of a partnership between luxury brands and financial investors. Resource https://lnkd.in/g4dcNnPb The Wall Street Journal David Mckay Vijay Exports #DeBeers #AngloAmerican #MarketNews  #vijayexportslegacy #prakashdhanak #vijayexports #jewellerymanufacturer #diamondjewelleryexport #diamondjewelleryexporters #goldjewellery #diamondjewellery #gemstonejewellery #DiamondIndustry #BusinessNews #EconomicOutlook #FinanceUpdate #LuxuryMarket 

De Beers Group: can the diamond giant sparkle outside Anglo American? 🤔 Anglo is seeking buyers for the diamond house ~ but the market is challenged by changing consumer tastes and the rise of lab grown diamonds 💎 The diamond market has endured a rollercoaster four years, veering from recession in 2020 to a pandemic boom, when consumers treated themselves to luxury goods. A correction followed in 2023, when prices dropped by a quarter. China, the second-biggest market after the US, continues to lag. The good news for De Beers is that the worst may be behind it. Olya Linde, a partner at the management consultancy Bain & Company, said: “If history is consistent, and there are not further economic shocks, we expect 2024 to revert to growth in demand for diamonds.” https://lnkd.in/gub94uDV #market #trends #consumerism #labgrowndiamonds #diamondindustry

#DEBEERS💍💎 De Beers is a leading international diamond company known for diamond exploration, mining, trading, and retail. Founded in 1888 by Cecil Rhodes in South Africa, De Beers played a significant role in establishing and maintaining a global monopoly on the diamond industry throughout the 20th century. 🔆💎CURRENT NEWS ABOUT THE DE BEERS ➡️Revenue decline De Beers' revenue for the first half of 2024 fell 21% to $2.2 billion, compared to $2.8 billion in the same period in 2023. ➡️Lab-grown diamonds De Beers announced that it will leave the lab-grown diamond sector to focus on natural stones. ➡️Diamond traceability De Beers is increasing its efforts to trace diamonds as the war in Ukraine continues. ➡️Supply chain adjustments De Beers is looking to adjust its supply chains due to rising demand for diamonds in the United States. ➡️Tanishq and De Beers forge strategic collaboration to boost India’s natural diamond jewellery market 💎💫DE BEERS'S MARKETING STRATEGIES ⏩️Emotional marketing De Beers marketed diamonds as a feeling, rather than for what they are, by appealing to the emotions and values associated with romance and marriage. For example, in 1930, De Beers created the slogan "A diamond is forever" to connect diamond rings to the idea of a lasting marriage. ⏩️Celebrity endorsements De Beers partnered with Hollywood to feature diamonds in movies and on movie stars. ⏩️Educational advertising De Beers educated consumers on the "four Cs" (cut, clarity, carat, and color) to help them understand the value of diamonds. ⏩️Origins strategy De Beers' new five-year "Origins" strategy aims to boost natural diamond marketing and streamline the business. The strategy also focuses on high return investments and sustainable growth. 💍↗️FUTURE PLANS OF DE BEERS 🔆Building Forever 2030 De Beers aims to create a better future by improving the lives of artisanal miners, supporting ethical practices, and protecting the environment. De Beers will also extend its Best Practice Principles to advance industry standards. 🔆Origins strategy De Beers' Origins strategy aims to enhance the value of natural diamonds for consumers, streamline operations, and focus on high-return investments. De Beers' Element Six business will also shift its focus from lab-grown diamonds for jewelry to industrial applications. 🔆Five-year plan De Beers aims to achieve annual core profits of $1.5 billion by 2028. 🔆Equal opportunities De Beers will strengthen its programs to support equal opportunities across all forms of diversity, including gender, race, age, disability, sexual orientation, and gender identity and expression. 💍"Ultimately I would say that De Beers, a leader in the diamond industry, is renowned for its commitment to innovation, sustainability, and ethical sourcing, setting high standards in both natural and lab-grown diamonds." #debeersdiamondindustry #forevermarkdiamondjewellary Aly Sayyad Dr. RAVICHANDRA REDDY AIMS IBS B-School

The #diamond #market is facing unprecedented challenges, and the future of #DeBeers, one of its most iconic names, hangs in the balance. Anglo American's decision to sell De Beers could reshape the entire industry. Discover how declining sales, market volatility, and the rise of #syntheticdiamonds are impacting this historic company.

Ankur Daga, the CEO of Angara, says the diamond industry is in trouble. This year, prices have dropped by 6% because lab-grown diamonds are becoming more popular. Next year, prices for natural diamonds might fall another 15-20%. Even De Beers, the biggest diamond producer, is having a hard time, even though they’re trying to sell synthetic diamonds. Lab-grown diamonds are 60-85% cheaper and attract eco-friendly buyers, taking a big chunk of the market. To stay on top, De Beers plans to shift its focus back to natural diamonds. #diamonds #lab #labgrown

https://lnkd.in/gEdsnezn This makes sense. Vertical integration may be a viable business model for some industries. I appreciate that there are no absolutes but we can get an idea on how difficult it is even for De beers to run their retail businesses profitably so for a luxury retailer to own a mining business it is almost suicidal. The skill sets are totally different. There is a sea change going on in the diamond mining business and no one seems to have the courage to ask the tough question : why mine for diamonds when you can manufacture it better at lower cost using technology ? For sure the negative impact of this is huge for the mined diamond producing countries but can we look at the numbers first ? Grant Mobley disagrees which is fine. De beers have access to the economics of both categories so why not share the numbers ?

Is the Sparkle Fading? Diamond Miners Face a Slump The diamond industry is facing a rough patch. Many mining companies, including De Beers, have reported significant drops in profits and revenue in 2023 [Rapaport, "De Beers Sees Sharp Decline In 2023 Revenue & Profit"]. What's causing the slump? There are a few key factors at play: Decreased Demand: Consumer spending on luxury goods, including diamond jewelry, has softened due to global economic uncertainty. Falling Prices: With lower demand, the price of rough diamonds has dropped significantly. De Beers, for example, saw a 25% decrease in the average price per carat sold in 2023 [Rapaport, "De Beers Sees Sharp Decline In 2023 Revenue & Profit"]. Shifting Consumer Preferences: Younger generations might be prioritizing experiences over traditional luxury items, impacting diamond sales. What's next for the industry? The future of diamond mining remains to be seen. Here are some possibilities: Market Correction: The industry could experience a short-term correction, with prices and demand eventually stabilizing. Innovation and Marketing: Companies might focus on lab-grown diamonds, ethical sourcing, and innovative marketing strategies to attract new customers. Consolidation: We could see consolidation within the industry, with larger companies acquiring smaller ones to weather the storm. The key takeaway: The diamond industry is at a crossroads. While challenges exist, there's also potential for adaptation and growth. How the industry responds to these changes will determine its future sparkle. #diamonds #mining #luxurygoods #business #economics

𝗗𝗘 𝗕𝗘𝗘𝗥𝗦 𝗦𝗖𝗔𝗟𝗘𝗦 𝗗𝗢𝗪𝗡 𝗣𝗥𝗢𝗗𝗨𝗖𝗧𝗜𝗢𝗡 𝗧𝗢 𝗠𝗔𝗡𝗔𝗚𝗘 𝗜𝗡𝗩𝗘𝗡𝗧𝗢𝗥𝗬 𝗟𝗘𝗩𝗘𝗟𝗦 De Beers Group, the world’s leading producer of rough diamonds by value, strategically scaled down production in the first quarter of 2024 to manage its inventory levels amidst the gradual recovery of the market. Despite experiencing a significant drop in demand for rough diamonds globally in 2023, De Beers maintained its production guidance for that year, resulting in substantial stockpiling. The global diamond industry faced a major decline in 2023 following strong demand in the... Read more on the link below https://lnkd.in/gm_3Rg3q