As a continuation of De Beers restructuring initiative, they have changed the
way they are selling rough diamonds to clients. For the first time in December,
a new system of more targeted sales boxes will be put into place in the large
gem sight.
In effect, De Beers wants to be a retailer—not a retailer of polished
stones just yet, but rather a retailer of rough diamonds in a sense.
For decades, De Beers’ policy has been to sell boxes of rough diamonds
which contained a variety of colors, shape and clarity grades. The cutters then
had to sort them into categories, eventually selling on the open market what
they did not use.
The new system provides to each client only those stones which the client
will most likely sell best. For example, a company specializing in selling to
the mass market will receive lower-end rough, while a dealer in fine quality
goods will receive only those.
Though seemingly more efficient, in reality, it will eventually allow De
Beers to charge higher prices. By serving exactly their clients’ needs, there
will be no reselling on the open market.
While De Beers says is not officially raising prices to its sightholders as
part of this sight revamping, the future will most likely tell a different
story.
For the consumer, the change will probably mean an eventual price hike.
Along with specializing the sight boxes, De Beers intends to keep future
sights very small. Having reached their $6 billion sales, the company can
control the market more effectively—especially given indicators of a cooling
economy by keeping the diamond sights small.