Fall in Diamond Consumer Confidence Proved to Be Challenging
2003: Fall in Diamond Consumer Confidence Affected Luxury Product Industry
De Beers had a generally good year in 2002. Its sales reached $5.15 billion, 15.7 percent more than the previous year. Diamond stocks were reduced by nearly $1 billion. It recorded net income of $434 million in 2002, down from $492 million a year earlier.
De Beers Managing Director Gary Ralfe said sales were up because it cut prices to give sightholders more profitability. "That was one of the most important factors in contributing to the diamond industry’s success," Ralfe said.
A De Beers statement also noted that while the first half of 2002 was promising, the second half was plagued with problems including a fall in consumer confidence, declines in stock market and the prospect of war.
As far as 2003 is concerned, De Beers expects the year to be a challenging one.
"We all live in a challenging political and economic environment, and as a producer of luxury products we are aware we could be affected by that," said De Beers Managing Director Gary Ralfe.