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Source: De Beers
1
OFFERING A UNIQUE
PROPOSITION
Fewer than one per cent of the world’s diamonds are eligible to become a
Forevermark diamond.
Branded diamonds with strong consumer benefits can command a price premium
over unbranded products, translating into a margin uplift.
Forevermark provides retailers and consumers alike with the total confidence
that their Forevermark diamond is not only natural and untreated but
responsibly sourced.
Retailers can utilise the Forevermark brand in designs tailored to specific markets and
consumer tastes.
“I also love the fact that, while Forevermark is a brand in and of itself, we are
able to customise the offering and the marketing message to fit our merchandise and image
strategies.”
– Coleman Clark, B.C Clark Jewelers.
2
INVESTING IN AWARENESS
AND DRIVING FOOTFALL AS
CONSUMERS SEEK OUT
FOREVERMARK STOCKISTS
Launched in China in 2008 and North America in 2011, Forevermark now has over
476 and 402 retail partners in the countries respectively.
The Forevermark brand continues to make gains in brand awareness in the top
diamond jewellery markets: in 2013, prompted awareness in the US reached one third
of consumers, and in China prompted awareness was 44 per cent.
Forevermark recently celebrated its one millionth inscription globally, with 45,000
diamonds inscribed in the US in 2013, a year-on-year increase of 66 per cent.
The Forevermark US Center of My Universe campaign in 2012 and 2013 was
enthusiastically received by both consumers and retailers:
“…very pleased with overall
traffic that was brought in due to the campaign. Three times better than last year’s.”
–
Forevermark retailer.
3
ENHANCING THE
PURCHASING EXPERIENCE
FOR CONSUMERS
Consumer initiatives such as branded in-store diamond viewers enhance the
consumer’s experience, creating a dialogue around the product.
“Getting a client
involved in viewing the Forevermark icon and inscription number is a must.”
– John Borghes,
Marci Jewelers.
FIG. 14:
HOW THE FOREVERMARK BRAND IS SUPPORTING RETAILERS
LOOKING AHEAD
BRANDS MAY HELP OVERALL PERFORMANCE, ESPECIALLY IN
DEVELOPED MARKETS
One way for the retail industry to improve its
financial performance could be a greater emphasis
on branded diamonds and diamond jewellery.
Increasing consumer preference for brands is evident
in the US from the jump in claimed acquisition of
branded engagement rings, from just seven per cent
of consumers in 2002 stating that their diamond
engagement ring (DER) was branded to one-third of
consumers in 2013 claiming that this was the case.
By offering brands with a specific positioning, and a
story that goes beyond the 4Cs, retailers are able to
address consumer needs for emotional engagement,
differentiate the product from generic offerings and
reinforce the diamond dream. While scale companies
are better placed to make the level of investment
required to benefit from this growing preference, all
retailers have the potential to benefit from this trend.
Branded diamond jewellery can also be an attractive
financial proposition for retailers. Successful brands
typically command a price premium above generic
products. This is based upon factors such as polished
diamonds’ beauty and appearance, jewellery design,
higher levels of consumer confidence, and superior
service, offering retailers opportunities to differentiate
from generic propositions (see Fig. 14).
The additional revenues from brands help retailers
to invest further in the in-store experience and in
promoting their businesses and the category,
helping to generate growth.
GLOBAL LUXURY BRANDS ARE SUPPORTING THE DIAMOND
DREAM AND CHANGING CONSUMER EXPECTATIONS
Many global luxury players such as Chanel and Dior
have entered the market for diamond jewellery, and
their approach to retailing is raising the bar for all
(see Fig. 15). As consumers become accustomed to
the retail standards set by the luxury houses, their
expectations of the store environment and customer
service are rising – with important consequences
for other fine jewellery retailers.
Global luxury companies are not only changing
consumer expectations of how to buy, but also
consumer beliefs about what to buy. When selecting
diamonds, a consumer’s focus is often on acquiring
the best diamond possible: the carat content and
quality are critical. Global luxury brands are often
trying to shift the focus towards acquiring distinctive
designer pieces, adorned with diamonds.