60 / 90
57
FIG. 36:
CONSUMERS WHO REPORTED BUYING A
BRANDED DIAMOND ENGAGEMENT RING
Source: De Beers
7
2013
36
2011
22
2002
Per cent
FIG. 37:
RETAILER QUOTES ON IMPACT OF
FOREVERMARK ON THEIR BUSINESS
Source: De Beers
When I was initially introduced to Forevermark,
I was very intrigued by Forevermark's brand
promise and, more importantly, how
partnering with De Beers and Forevermark
could elevate my brand and increase my
margins. In the year and a half that I have been
involved with Forevermark, I have seen an
increase in margins anywhere from 15 to 30 per
cent. I am sometimes seeing a 35 per cent
increase on loose goods, compared with the
equivalent unbranded polished since I'm not
competing with other jewellers and online
companies who are selling inferior Gemological
Institute of America (GIA) graded stones for
little to no margin.
Since partnering with Forevermark, the
sheer beauty of the diamonds, exclusivity of
the brand, and the other value added
features have enabled us to ask for margins
at 15 to 30 per cent higher than we had for
GIA certified diamonds. We have been able
to achieve it with great success.
Raising fine jewellery’s place to the top of the
desirability list is not a simple matter. As discussed
in the retail section of this report, US jewellers
have been under financial pressure and find it
challenging to invest in innovation and advertising
to boost the category.
Despite the challenges facing fine jewellery in the
US, there are promising opportunities for growth in
diamond jewellery. The premium and bridal segments
continue to expand. The rise of brands and premium
products means that retailers have the opportunity
to realise higher margins necessary for investing in
desire-creating activities.
BRANDS HOLD THE KEY TO GROWTH
Brands are becoming more important to the US
consumer. The acceleration in consumer preference
for brands of diamonds and diamond jewellery is
evident from the claimed acquisition of branded
engagement rings – from just seven per cent in 2002
to three and five times that level in 2011 and 2013
respectively (see Fig. 36). The growth in importance
of branded jewellery will have a particular impact in
attracting the brand-conscious younger US consumer.
A variety of brands has been gaining space in the
US market for diamond jewellery in recent years.
There has been an uplift in awareness of specialist
diamond brands such as Hearts on Fire, Leo and
Tacori. Traditional branded jewellers such as Tiffany
and Cartier have seen a jump in claimed brand
acquisitions in the last couple of years, and fashion
brands such as Dior and Chanel are also growing.
Forevermark has been part of this trend and has
experienced growing retailer and consumer interest
since its US launch in Q4 2011.
The attraction of branded diamond jewellery to
retailers is that it supports both the diamond dream
and higher margins. The offer of brands with a
specific positioning and story, which goes beyond
the 4Cs, helps retailers address consumer needs for
emotional engagement with the product and protects
the offer against commoditisation (see Fig. 37).