The Diamond Exec’s Dilemma

Here’s a question for you: Can the corporate entities in the diamond and jewelry industry connect with their customers in a personal and engaging way?

I’d argue they have a greater challenge doing so than smaller, more nimble family-run businesses – especially in the retail space.

That’s the challenge that Signet Jewelers’ CEO J.K. Symancyk is tackling in Signet’s ‘Grow Brand Love’ strategy unveiled last week during the company’s earnings call.

I break down the strategy in my latest video, which you can view here: Signet Has A New Plan.

The essential goal is for the Signet brands to become more personable.

While I argue that many of the questions Symancyk is posing at Signet should be considered by the rest of the industry, he has additional elements to consider. That’s because corporations operating in the diamond market walk a fine line between meeting shareholder demands and industry expectations.

Justified or not, the trade views the likes of Signet and De Beers as leaders whose responsibility is to propel the market forward. They do fill that role to some extent considering their marketing programs and the work both companies have done in developing source verification standards, among other factors.

But their priority is to generate returns to shareholders. And that doesn’t always align with the needs of the industry.

De Beers is an interesting case with regard to this dynamic because it was historically a family run company under the Oppenheimer’s, who were perceived in a way as members of the trade given their long history in the industry.

But De Beers transitioned to being predominantly corporate owned in 2011 when the Oppenheimer’s sold their share to Anglo American. And we’ve felt that tension between satisfying sightholder needs versus shareholder demands ever since. The result is that De Beers is up for sale again, leaving us to speculate its future role in the market, as the prospective new owners will also have to navigate this question.

Regarding Signet, it seems to be on a corrective path that aligns both shareholder requirements with the industry’s needs – at least for now, based on the unveiling of ‘Grow Brand Love.’ Of course, the true test of Symancyk leadership, both within the Signet board and in industry circles, will be in the execution of the strategy.

See Signet’s earnings announcement here, and its (more telling) investor presentation here.   

Recommended Reading

The Natural Diamond Council (NDC) published its ‘Diamonds of Botswana’ report, presenting a comprehensive overview of the contribution diamonds make to the country. Beyond the activity within the diamond value chain, stemming from its mining and beneficiation sectors, the secondary benefits touch the lives of Batswana in immeasurable ways.

The report is an important read considering the growing influence that Botswana will have on the diamond market, following the recent agreement between the Government of Botswana and De Beers. (View a recap of that agreement here: What's The Deal With De Beers And Botswana?)  

Download the NDC report here: Diamonds of Botswana.

Hot Off the Diamond Press

• This week in the diamond world (news roundup)

• Signet Has a New Plan (video)

Coming Up

• Chow Sang Sang FY earnings

• Phillips Hong Kong Jewels auction: March 27

• Stuller Bench Jeweler Workshop: March 28–29

Pic of the Week

Image: Sotheby’s announced the sale of The Mediterranean Blue, a cushion-cut, modified brilliant, 10.03-carat, VS2-clarity, fancy vivid blue diamond ring at its Geneva auction in May. The original rough was recovered by Petra Diamonds in 2023 at its Cullinan mine in South Africa. The diamond has a pre-sale estimate of $20 million. (Courtesy: Sotheby's)