Gaining the confidence of younger consumers plays a crucial role in the diamond industry’s future success, former De Beers CEO Gareth Penny said at the recent World Jewellery Confederation (CIBJO) Centenary Congress.
During his keynote speech, Penny, chairman of the board of Ninety One, spoke about how to strengthen marketing in the natural-diamond industry as it faced growing competition from synthetic stones, CIBJO reported last week.
“Consumers need to know why to choose a natural diamond,” he said. “Natural diamond has never been valued because of its chemical composition. It has been valued because it celebrates life’s greatest moments.”
To target the next generation of consumers, the industry should create marketing campaigns that focus on the emotional significance of the diamond and not the material, he urged. “We need to fight on that emotional territory again. We need to sell meaning, not materials,” he added.
The industry also needs to improve how it communicates its impact across the supply chain, particularly regarding the benefits of diamond mining to communities in producing countries such as Namibia and Botswana, Penny explained. The trade must provide consumers with greater information about the journey from mine to market, he continued.
“We need to move from doing good to ‘showing’ good,” he said, emphasizing the importance of demonstrating the industry’s positive impact.
Penny also highlighted the importance of innovation, saying it must strengthen tradition. New materials, construction techniques and jewelry designs will be needed to counter the impact of soaring precious-metal prices, he elaborated.
Image: Gareth Penny at the CIBJO Centenary Congress. (World Jewellery Confederation)
