Sushmita M’s Post

De Beers has unveiled its survival strategy, emphasizing a shift in focus towards its luxury retail brands. The company plans to scale up its global luxury De Beers Jewellers brand, while refocusing its Forevermark brand on the fast-growing Indian market. De Beers also introduced a new retail-facing diamond verification instrument to help consumers differentiate between natural and lab-grown diamonds effectively. Moreover, De Beers Group's Element Six business will halt the production of lab-grown diamonds for jewelry and concentrate on providing synthetic diamond technology solutions for industrial applications. Although the press release lacks clarity on the future of Lightbox, De Beers will maintain its presence in the natural retail brands sector. While the announcement signifies a strategic shift for De Beers, some observers find the press release lacking in substance and expected a more significant impact. Despite uncertainties surrounding the LGD manufacturing exit and the fate of Lightbox, the company remains committed to its natural retail brands. #DeBeers #LuxuryBrands #Diamonds #RetailStrategy #IndustryShifts

De Beers is one of the most iconic names in the diamond world. Today the company continues in its role as a major player in the worldwide diamond industry, selling around one-third of the world’s rough diamonds. Founded in 1888 by Cecil Rhodes in South Africa, it began with a small diamond mine and grew into a global powerhouse. Over the 20th century, De Beers controlled most of the world's diamond supply, using its influence to stabilize prices and create demand. One of its most famous contributions is the slogan "A Diamond Is Forever," launched in 1947, which shaped the diamond engagement ring tradition. De Beers built its brand on the idea that diamonds symbolize eternal love. De Beers faced criticism for monopolistic practices and ethical concerns over "conflict diamonds" used to fund wars. To address this, the company played a key role in establishing the Kimberley Process, ensuring diamonds are ethically sourced. Follow CaratX for such insightful content about the Industry and register here - https://lnkd.in/g8Gxp-mE Image Source credit - WikiPedia

In an interesting National Jeweler Q&A conducted by Michelle Graff with Al Cook (De Beers Group CEO) on the Future of De Beers there was one question (and answer) which made me wonder and urged to ask... https://lnkd.in/dQVKYncD Mr. Cook, is your answer to Michelle Graff backed with hard data (if so please share) or perhaps an hypothesis (educated guess)? "MG: Do you see them (lab grown diamonds) becoming a kind of CZ equivalent in the future? AC: Yes, crystal, CZ, not a luxury product. I think that’s why you see so much of the luxury industry didn’t actually touch lab-grown diamonds. They’ve watched this movie before and they knew the ending. They knew full well this wasn’t a luxury product. If anyone ever had any questions, I think they’ve been answered now. You can now buy 10 to 20 lab-grown diamonds for the price of a natural diamond. They are churned out in the thousands in Chinese factories. They’re a very different proposition from the rarity of something, which, by definition, has a limited supply. We’re now in a position where we’re past peak supply of natural diamonds, where mines are coming to the end of their life—the Argyle mine in Australia has ended, the Renard mine in Canada has ended. People are well aware that actually there are now more diamonds on the surface of the Earth than underneath it in the mines. So, there’s a real sense of the rarity." #gemconcepts #debeers #labgrowndiamonds #rarity #nationaljeweler

I am not sure what further evidence we need to support the contention that De beers prop up the price of their roughs. In the recent interview with Al Cook hosted by Edahn Golan it was clear that De beers approach is to throttle mining to meet demands which may be fine but this approach lays bare the false claim that nataural diamonds are rare. It is just a word game. The timing of this latest across the board price cuts shows that De beers does not really care about the importance of the festive season for retailers. The news for consumers is that diamond prices are falling when demand should be highest ! Consumers don’t understand the sight system so the claim that diamonds are a good investment and increase in value is not true. It was never true but De beers cannot even keep their story straight. Al Cook gave a bullish and now hollow plea for unity and for whatever reasons they chose to cut prices just before Christmas. My takeaway is that De beers cannot even tell a consistent story. It may well be that the story contains many disjoints and they cannot keep track of the lies. This is a very sad reflection of the chaos within De beers. It may well be that they need to sell more roughs for year end window dressing purposes.

This article may be worth re-reading in light of what is going on with the ongoing talks about selling Anglo American and also how De beers may not fit its new owner’s core businesses. I do not claim to be the first person to say that De beers should not be in luxury or LGD retail. They should sell off their retail brands and focus on b to b. There are enough luxury jewellery retailers and also LGD retailers that are doing a great job. I consider Forevermark and De beers Jeweller to be quite bland compared to what is in the LVMH or Richmont portfolios and Graff and Harry Winston. They are not branding nor financial successes. Lightbox was a sophisticated form of market manipulation and it failed. Nothing to write home about. Time to shed these baggage whether De beers itself is sold on not. A miner in luxury retail space and fast moving consumer goods is a bull in a china shop. Al Cook is a geologist. He may well be a great mining CEO but giving kudos to De beers branding and retail expertise in my humble opinion is a stretch. I am aware that many in the trade holds De beers on a pedestal. Reviving the Diamond is Forever campaign recently was given high marks by sentimental natural pundits but failed to appeal to younger consumers. I am told it was all done in-house. That was the first mistake.

while Diamonds may be forever, but not De Beers #SyntheticDiamonds #LabGrownDiamonds #NaturalDiamonds #DiamondIndustry #JewelryIndustry #EthicalDiamonds #SustainableDiamonds #DiamondMining #DiamondSupply #LuxuryGoods #Gemstones #EnvironmentalImpact #ConsumerChoice

💎 De Beers Cuts Diamond Prices: A Turning Point for the Industry? Big news in the diamond world, De Beers has lowered its rough diamond prices by 10% to 15%. But manufacturers say this isn’t enough to make profits, as high production costs and weak demand persist. Why the Price Cut? De Beers was charging 20%-25% more than auction prices, causing buyers to hesitate. The company has finally lowered prices to stay competitive, focusing on categories with the weakest demand. What’s Changed? 1️⃣ More Flexibility: Buyers can now sell back up to 20% of larger diamonds (1 carat or more). 2️⃣ Smaller Buybacks: Policies for smaller diamonds reverted to a 10% buyback limit. Why Now? Price cuts were expected in January, but De Beers acted early, likely to soften the market impact. For Buyers Like You Lab-grown diamonds continue to shine as a more affordable, sustainable alternative. Natural diamonds remain pricier, but changes like this could reshape the market. At CaratX, we offer both lab-grown and natural options, ensuring you find the perfect piece for any occasion. View our shop at www.caratx.com. Stay informed and let us help you shine. #CaratX #DiamondNews #DeBeers #JewelryTrends

De Beers Group CEO Al Cook announced at the company's JCK breakfast event a strategic overhaul, discontinuing synthetic diamonds for its Lightbox brand and shifting its focus back to natural diamonds. The company will integrate its three chemical vapor deposition (CVD) plants into one $94 million facility in Portland, Oregon, transforming it into a technology hub for industrial-use diamonds. The pivot ends De Beers' six-year venture into lab-grown diamonds. Despite this shift, Lightbox Jewelry will continue as a consumer brand, maintaining its carbon-neutral commitment and American production. De Beers also plans to roll out Diamond Proof, an in-store device for detecting synthetic diamonds, and will begin selling polished diamonds under its traceable Code of Origin brand. Additionally, De Beers outlined future operational changes, including prioritizing high-return projects and focusing exploration efforts in Angola. The company plans to dispose of non-core assets and negotiate new supply contracts in 2025. Amid these changes, De Beers is also preparing for its separation from Anglo American, under which it has operated since 2011. #journaldesbijoux #naturaldiamonds #labgrowndiamonds jaimelesgems #debeers Sarin Bachmann Jen Cullen Williams Sandrine Conseiller

De Beers maintains production guidance for 2024 as expectation for recovery remains protracted De Beers has maintained its production guidance for 2024 at 23 million to 26 million carats as the midstream continues to hold higher-than-normal levels of inventory and the expectation for recovery remains protracted. The diamond group, which is 85% owned by Anglo American, had been actively assessing options with its partners to reduce production going forward. Its rough diamond production for the third quarter dropped by 25% to 5.6 million carats, reflecting a production response to the prolonged period of lower demand, higher-than-normal levels of inventory in the midstream, and a continued focus on managing working capital. Output from Botswana fell 32% to 4 million carats as actions to lower production at Jwaneng were delivered while that of Namibia dropped 14% to 500 000 carats, reflecting intentional action to lower production at Debmarine Namibia, partially offset by planned higher grade mining and better recoveries at Namdeb. Production in Canada also decreased by 11% to 600,000 carats due to the planned treatment of lower-grade ore. However, De Beers’ production in South Africa increased by 41% to 500,000 carats as Venetia underground ramps up. Commenting on the state of the market, Anglo said trading conditions during the quarter continued to be challenging in light of higher-than-normal midstream inventory levels and the prolonged period of depressed consumer demand in China. “In response, Sights 7 and 8 were merged into a single selling event,” it said. “In addition, in the fourth quarter, the dates for Sights 9 and 10 were brought forward, all with a focus on supporting sightholders in navigating midstream trading conditions as they head towards the end-of-year retail selling season.” Anglo said the year-to-date consolidated average realised price increased by 4% to $160 per carat, reflecting a larger proportion of higher-value rough diamonds being sold, partially offset by an 18% decrease in the average rough price index. De Beers Jewellers also delivered a consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macroeconomic headwinds and slower Chinese recovery. “Forevermark's global operations ramped down, consistent with the strategy to focus the brand on India,” it said. “New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned.” Source : Mathew Nyaungwa, Editor in Chief, Rough&Polished from Saurimo, Angola #debeers #production #diamonds #roughdiamonds

With BHP's bid to acquire Anglo American, it seems that De Beers, which has been underperforming, could be up for sale. De Beers more likely to be divided into three parts, paving the way for a significant shift in the market. Here's what the future could hold: 1️⃣ De Beers Mining: An Indian consortium could potentially take the reins of De Beers' mining operations. This move would not only bring new perspectives but also foster international collaboration and innovation in the diamond mining sector. #DeBeersMining #IndianConsortium 2️⃣ De Beers Retail: The retail arm of De Beers might find a new home with one of the top luxury brands like LVMH, Kering, or Richmond. This partnership could elevate the diamond retail experience, combining excellence in craftsmanship with the allure of luxury brands. #DeBeersRetail #LuxuryPartnership 3️⃣ Light Box: The Lab Grown Diamond industry has been making waves, and it's possible that a leading manufacturer from India could acquire De Beers' Light Box division. This alignment could further fuel the growth of lab-grown diamonds, offering consumers more sustainable and affordable options. #LightBox #LabGrownDiamonds The diamond market is on the verge of a transformative period that will shape its future for the next couple of years. Stay tuned as we witness the evolution of this industry, with new players and innovations entering the stage. Exciting times lie ahead! 💎✨ #DiamondMarket #FutureOfDiamonds #IndustryEvolution #shimansky #labgrowndiamonds #diamondsmining #debeers #anglos #BHP #luxurybrands