Trustworthy Diamond Brands Win Customers’ Trust
2003: Trustworthy Diamond Brands Survive in the Diamond Industry
Considering the evolution of the luxury market, small jewelry brands could be extinct within a decade, according to a study conducted by French research firm Ipsos for BaselWorld.
Consumers’ focus post-September 11th is on personally relevant values, with self-fulfillment being a primary goal. In this atmosphere, along with the increased competition in the economic downturn, brands have the advantage.
Consumers want trustworthy brands that offer a guarantee of status and product quality, while established brand-names are the only companies with the economic resources to continue with large marketing budgets that can establish strong enough brands.
The results of this study mimic what De Beers has been moving toward with their own De Beers retail brand. Their mandate that sightholders actively court and grow brands within the diamond industry is, however, unrealistic. The market will not support 200 diamond brands. It will be only the large, established brands that survive. And their success will be funded by consumers—who ultimately pay for the necessary marketing with inflated prices.