Targeting Rich Diamond Consumers

An interesting idea was floated at the World Jewellery Confederation (CIBJO) Congress, which marked the organization’s centenary.

In his keynote address, Martin Rapaport, chairman of the Rapaport Group, urged the industry to focus its marketing on “selling expensive diamonds to rich people who want to spend money.” He has made that call before. Some may interpret it as a suggestion that the industry should ignore the rest of the market, including the middle-income segment, which has traditionally consumed the bulk of supply, the so-called bread-and-butter goods.

Most category-marketing efforts are, in fact, aimed at that segment, which has been most affected by the rise of synthetic diamonds. De Beers’ Desert Diamonds campaign, for example, does not promote a premium product. It seeks to persuade consumers to buy warmer-shade diamonds, traditionally considered lower colors and therefore less desirable. By many accounts, it is working as sales of lighter browns, yellows and champaign diamonds have improved.

My take on Martin’s argument is that targeting the luxury segment is really about creating aspirational desire for diamonds. It does not mean ignoring everyone else. In fact, it is the opposite. Middle-income consumers will aspire to commercial-quality diamonds only if diamonds continue to carry a strong luxury image among wealthy buyers.

It is arguably a longer, but more sustainable, play for that same mass-market segment. It also raises a broader question: are we devaluing diamonds in the long term in search of immediate marketing returns? By marketing commercial-quality goods, are we really elevating the idea of diamond exclusivity?

This blog first appeared in the September 7 Pressing Matters Executive Memo. Read the full memo here, Pressing Matters.

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