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Diamond Branding Is a Pragmatic Step to Avoid Recession

2001: Diamond Branding Is a Powerful Strategy against Recession

Nov. 2001

Many sightholders — with De Beers’ enthusiastic prodding — are starting their own brands. Yet, some now doubt whether this strategy will be appropriate for these times.

The New York Times recently quoted economist Fernando Moiguer about the aftermath of the recession in Argentina. "For the middle class today, it is modern to buy economically while before it was modern to buy brand names," he said.

With so much attention given to the news on the war on terrorism, the media will not spend their time announcing a new jewelry line or stone with an extra facet. People today are very serious and pragmatic. They would rather spend on security than on a flashy brand name. Of course, they still have to get engaged, and give diamonds as a gift. But they want to make sure that there is some intrinsic value there. And one of the good things about diamonds is they are one of the few products that maintain value.


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