The World Federation of Diamond Bourses (WFDB), led by President Yoram Dvash, has called for a coordinated industry initiative to address falling demand for natural diamonds.
Dvash directed his appeal to stakeholders across the diamond sector, emphasising the importance of substantial, collaborative investment, particularly from diamond-producing countries.
Shifting Perceptions of Diamonds Among New Generations
In an open letter, Dvash noted that changing consumer perceptions may be linked to the absence of industry-wide marketing for natural diamonds over the last two decades. He noted that younger generations, unfamiliar with the once-iconic “A Diamond is Forever” campaign, have developed a different perspective, one that is often shaped by ethical considerations surrounding human rights. “They do not see diamonds as a symbol of everlasting love, and instead are more concerned about how they affect human rights,” he explained.
“Now is the time to make a change; we need now to invest in major promotional campaigns that create demand for natural diamonds,” Dvash said. He acknowledged current investments by De Beers and the Natural Diamond Council (NDC), which are actively promoting natural diamonds in partnership with leading retailers. However, he cautioned that these efforts may be “too little and too late,” stressing that “to be successful, campaigns need to be coordinated and to be consistent throughout the year.”
WFDB to Lead Collaborative Efforts to Boost Natural Diamond Demand
The WFDB plans to initiate industry-wide discussions in the coming weeks, encouraging all industry stakeholders to support a marketing strategy aimed at revitalising the natural diamond market. Dvash appealed for broad participation, stating that contributions are essential from producing nations, mining companies, bourses, manufacturers, and retailers alike. “We need to bring the diamond industry to a healthy level of spending on marketing,” he said. “Moreover, we need to consistently keep diamonds in the public eye.”
Dvash suggested a five-year marketing plan to maintain continuous support for the natural diamond sector, rather than relying on sporadic campaigns. He stated that such sustained investment could help counteract falling demand, particularly as synthetic diamonds gain traction and receive considerable retail marketing.
Addressing Economic and Market Challenges Facing the Diamond Industry
Dvash’s letter also addresses the economic pressures affecting the diamond sector, noting softening demand due to a slowdown in China’s market and rising costs of living in the United States. Lab-grown diamonds are also entering the retail market, often promoted as an alternative to natural stones. Dvash noted that the diamond industry has traditionally relied on consumer demand rather than continuous marketing, a model that may need adjustment given today’s competitive environment.
Path Forward: A Coordinated Long-Term Strategy
Dvash urged industry leaders to establish a coordinated and sustainable approach to marketing. He noted that producing countries, particularly those in Africa, along with mining companies, would need to take primary responsibility for funding this effort. He concluded with a hopeful outlook for collaboration, stating, “Let’s create a 5-year plan for marketing diamonds, and not rely on short-term initiatives when the situation is particularly dire.”
View the full letter here.
