According to The Mineral & Gemstone Kingdom Website (1997), around 80% of mined diamonds excavated annually are unsuitable for use as gemstones and used industrially. However, gem-grade diamonds are always the mainstream of the whole diamond industry and follow a specific industrial chain before they finish their commodity character at the end of the market. 2. 2 History and Changes of Diamond Industry Major changes over the past 50 years have transformed the diamond industry (Pain & Company, 2011).
New diamond supplies have appeared in the market, and excavating and production have expanded beyond southern Africa to Russia, Australia and Canada. Structural changes introduced by De Beers Company and its Central Selling Organization (CSS), which once led the industry, have opened up the lied to more competition. 2. 3 Marketing Situation of Diamond Industry According to the World Diamond Council (2013), an estimated IIS$13 billion worth of rough diamonds are produced every year, of which approximately US$8. 5 billion are from Africa.
The diamond industry employs around ten million people all over the world directly and indirectly, across a wide range of roles from mining to retailing. Global diamond Jewelry sales continue to grow, increasing three-fold in the past 25 years, and are currently worth in excess of IIS$72 billion every year. 3. Products of the Diamond Industry Products of the Diamond Industry are also categorized into two parts: the gem- grade diamonds and the industrial diamonds, which are distinguished as Jewelry and industrial uses. 3. 1 Gem-Grade Diamonds as Jewels Products of gem-grade diamond are usually luxury gemstones and Jewelries.
It is often considered as cultural products with great worth. These gem-grade diamonds are carefully designed and reproduced into Jewelries by factories after excavation from the mine. These polished diamonds, which have always been considered among the world’s most precious gemstones, can be used as decorations in many ways and ailed. For example: 1) Ordinary ornaments such as rings, necklaces, earrings, crowns and so on. 2) Decorations for clothing industry, watch industry, painting industry, collection industry and other design related industry.
Compared with industrial diamond, gem- grade diamonds are precious and expensive for the following characters: 3. 1. 1 The Gem-grade diamonds are most recognized as luxury for the rich and gentry. These diamonds have no practical use to normal people and the prices of them do not actually reflect their true scarcity. Compared to industrial diamonds, it has more intangible characteristics such as reputation and social identity representation. 3. 1. 2 The Cultural Value and Symbolic Meaning As a cultural product, gem-grade diamonds earn a very high cultural value.
Diamonds as Jewels has existed for thousands of years. Early in the 13th century Europe, diamond has become a representation and prior of royal family. It became a symbol of the loyalty and eternity of love after the 1 5th century. Later, the Russian tsar considered diamond as representation of wealth and power. In the end, gem- grade diamond earns the symbol of royal, wealth, power and love as a whole. In this way, gem-stone diamond processes very high cultural value includes symbolic, social and historical value with special cultural identity.
Besides, a diamond must be carefully designed and quality measured during its reproduction process. This no doubt improves the aesthetic value of diamond-made Jewelries. 3. 1. 3 The Commercial Value According to Basis Diamond Company (2013), only 20 percent of all the diamonds mined in the whole world each year are considered gem quality. This is because only that percentage of all diamonds mined show elevated standards of beauty and excellence, qualities that are required in making Jewelry. However, they still account for more than 95 percent of the total diamond market value (The Diamond Industry Report, 2011).
Also, gem-grade diamonds account for about 40 percent of all Jewelry manufacturing. 3. 1. 4 “Brand” Goods and Experience from Raw Material Rough diamonds under the ground needed to be carefully excavated, cut, polished, designed and manufactured before they become diamond-made Jewels. This reproduction process has made diamond-made Jewels upgraded from raw material to goods. And these goods are often connected with big Jewel brands. Also, because diamond Jewels are luxuries for the rich, it also let the customers experienced a kind of noble and graceful lifestyle.
Figure 2 3. 2 Industrial Diamonds The majority of diamonds mined are actually only industrial quality diamonds. These diamonds are deemed unworthy to be made into Jewelry. Instead, they are valued for their hardness, thermal conductivity and optical dispersion (Basis Diamond Company, 2013). These diamonds are sold for industrial applications including cutting, drilling, grinding and polishing in industrial applications. These industrial amend products are often tangible and have less cultural value.
Their prices are much cheaper than Jewels as they are Just raw materials from basic mining process. Usually, they are not included in the cultural or creative industry. Figure 3 4. Creative Chain of Diamond Industry: De Beers Company as an example Because industrial diamond cannot be included in the cultural industry, we Just analyze the creative chain of the diamond Jewelry chain. The diamond Jewelry supply chain (known as the diamond pipeline) is the process that brings diamonds from the under earth to consumers (World Diamond Council, 2013).
It has several different Compared to the normal cultural industry, the diamond industry also included the industrial production part. Exploration, mining, sorting, cutting and polishing constitute the beginning upstream industry of the whole diamond industry. And this paper will use one of the diamond Jewelry brand called “FOREVERMORE” of Dabbers Group Company as an example to interpret the whole diamond industry chain. Company introduction: The De Beers Company was founded in 1888 by Cecil Rhodes and was once the king of the whole diamond industry, which occupied 90% of the whole diamond industry.
It is now a family of companies that dominate the diamond, diamond mining, diamond hops, diamond trading and industrial diamond manufacturing sectors. 4. 1 Upstream Industry 4. 1. 1 Exploration, Mining and Sorting The exploration, excavation, and mining process represent a highly specialized step in the diamond supply chain. The first activity in the diamond supply chain is the diamond exploration process. Diamonds are found all over the world with companies investing in exploration, while the majorities (approximately 65%) are found in Africa.
After diamond deposits are found during the exploration process of the supply chain, he next step consists of the mining of these areas. Once processed at the mine, rough diamonds are delivered to sorting experts to be sorted and valued into different categories in preparation for sale. (Ewe & Lauren & Brian & Branded, 2010). Figure 5 Example Company: Jeanine Mine for Forevermore of De Beers Company De Beers is active in every category of industrial diamond mining: open-pit, underground, large- scale alluvial, coastal and deep sea (The De Beers Group, 2010).
Mining takes place in Botswana, Iambi, South Africa and Canada. Jeanine mine in Botswana is an example of one Forevermore source, along with others in Southern Africa and Canada, which is the richest diamond mine in the world. After mining the diamonds, the rough diamonds was sent to rough diamond sorters to be sorted into a variety of categories. It is only less that 1% of all diamonds that are eligible to become Forevermore diamonds. 4. 1. 2 Cutting & Polishing When a quality diamond is eventually sorted, it will send to be cut and polished.
Diamond cutting calls for highly specialized process designers, artisans, tools, equipment, and techniques. The main diamond cutting centers are found in Antwerp ND Amsterdam, The Netherlands, Johannesburg, South Africa, New York, the United States, and Tell Aviva, Israel. Due to the low cost of labor, diamond cutting centers have also been set up in China, India, and Thailand. The cutting center in Gujarat, India handles a large number of small diamonds due to the cheap labor costs. Large diamonds in smaller quantities are most likely to be sent for cutting and polishing in Europe and North America (Diamond, Wisped, 2013).
These diamonds are typically sold to diamond wholesalers or diamond Jewelry manufacturers in one of the 24 suggested diamond exchanges (known as bourse) located across the world. Figure 6 Example Company: Forevermore Diamanté of De Beers Company Once the highest quality rough diamonds have been selected by a Forevermore Diamanté, they are managed separately to uphold the integrity of their pipeline. Master craftsmen with releasing their brilliance and life. 4. 2 Creation: Jewelry Design and Innovation Wholesalers or manufacturers buy relatively small amounts of unset, polished diamonds.
Wholesalers sell these to Jewelry designers, manufacturers or retailers. An artist or craftsmen render designs on paper. The creations of the diamond Jewel industry are usually designs of the shape, size, color, pattern or concepts about the diamond Jewelry. These creations can often display a kind of luxury lifestyles, combine the light and color. The source of these creations can come from old romance, fairytale or legend of the royal. In diamond industry, companies often ask professional designers or design companies to help design the diamond Jewelry.
Example Company: The Forevermore Design and Innovation Centre of the De Beers Group Company The Forevermore Design and Innovation Centre, which is located in Milan, evolves designs for Forevermore diamonds. The Centre consists of a group of designers that create Jewelry designs which hero Forevermore diamonds. Designs are produced by looking at the latest trends and taking inspiration from Forevermore core values. It was after months of research and refinement, the Forevermore Setting TM was developed.
This signature setting is classic, elegant and understated, it allows in the maximum amount of light so the Forevermore diamond is displayed in the best way. 4. 3 Making and Production: Jewelry Manufacturing Cut and polished diamonds are sold through one of the 24 worldwide registered amend exchanges (“bourse”) or directly to manufacturers. Using designs from jewelry designers, retailers, or in-house designers, manufacturers transform these diamonds into Jewelry. There is also a great deal of value-addition in this phase of the supply chain; the diamonds are finally “becoming” Jewelry.
Further, this is one of the higher levels of production, and one that many countries aspire to “upgrade” to. Ultimately, the manufacturing centers hold a lot of power in the final destination of the diamonds, which has the highest potential for profit. Example Company: Dali Diamond Company of De Beers Group Company The Diamond Trading Company (ETC) is a subsidiary of De Beers and markets rough diamonds from De Beers- operated mines. Dali Diamond Company is a sub company of ETC. Dali Diamond Company is one of the world’s most prominent diameters and it is also parts of the De Beers Group Company.
Dali Diamond is an international group with products and services across the diamond pipeline. It is responsible for parts of the manufacturing of the Forevermore Settings Design. Figure 7 4. 4 Distribution: Retailing Finally, Jewelry is sold from the retailer to the consumer. Retailers may purchase loose diamonds directly from the bourse or diamonds may be purchased after they have been set into Jewelry. There are many methods and ways for retailers to disseminate the diamond products, such as retail sales, promotional activities, using the Internet, holding exhibition and advertisements.
The value of diamond Jewelry sold each year is approximately IIS$72 billion, which includes the cost of the diamonds, precious metals and other gems. Example Company: JARRED The Forevermore Setting Diamond Jewelry has many retailers all over the world, and division of Sterling Jeweler’s Inc. Headquartered in Akron, Ohio. It offers five times the selection of ordinary Jewelry stores, prices it well, and presents it with the help of a team of experts, thereby creating the ultimate Jewelry shopping experience.
Customers can also buy Jewel products on its websites. Jarred has used the Internet, advertising and promotional activity to improve the consumption of Forevermore Diamond Jewelry. Figure 8 4. 5 Exhibition Exhibition of the diamond industry includes festival, exhibition, diamond design competition, sponsorship, production release conference and other cultural activities. These activities try to offer some cultural experience to audience and improve the attention and attraction of the diamond Jewelry products.
Example: The Hong Kong International Jewelry Manufactures’ Show In recent years, the show attracted exhibitors from different countries including China, Italy, Japan, Belgium, Taiwan, Israel, Thailand and Korea etc. In 2012, the 4 days show featured nearly 565 quality Jewelry manufacturers with over 872 booths and attracted 26,400 buyers, in which the number of mainland China buyers has increased 30%. Buyers were keen to attend this year-end Jewelry delivery show to do sat minute purchase to stock up before the holiday season. Figure 9 4. Participation: Consumption Because of the improvement of the modern technology, consumers can purchase diamond Jewelry from the retail store or on websites. The main customers of the diamond Jewelry are new couples, luxuries fans, collectors, other retailers and so on. 5. Conclusion Although the size of a diamond is so tiny, it does not offer any hints about the numerous steps involved in the process of turning it into a retail diamond. Diamond can be categorized as two: gem-grade diamond and industrial diamond. The gem- read diamond is a symbol of love, wealth, elegance and power and usually produced as Jewelries.
