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Sunday, December 4, 2022

Is There a Marketing Strategy Behind the Diamond Business that Made it so Successful?

Marketing is essential for any business and a strategic marketing approach is needed for success. Some people might say that the product will sell itself, but that’s foolish in this day and age of competitive marketing. People want to know more about your product before making a purchase.

If it’s a relatively new product in your industry, you especially need to convey more information. In the diamond industry, lab grown diamonds are rising in popularity but that’s due to their marketing so far. 

Lab grown diamonds wouldn’t have been this popular if it wasn’t clarified that they’re as authentic as mined diamonds. They were once called “synthetic diamonds” which caused the misunderstanding. The marketing efforts also emphasized the lab grown diamond’s good points which made it appeal to its target audience.

Hence, marketing is the art of strategy to convince your prospects that they need your product. It’s effective on a deep psychological level and the greatest marketing campaign to accomplish this was “diamonds are forever”. That’s right, it’s none other than De Beers’ diamond marketing campaign!

Marketing Strategies Behind the Diamond Business’ Success

There were a few marketing strategies that made the diamond business what it is today. We’ll discuss those strategies in-depth and how new strategies are making waves in the industry. 

  1. Monopolizing the Diamond Supply

The popular and primary story that’s been told and sold to the public is the diamond’s rarity and exclusivity. It’s a fact that there are gemstones that can be rarer than diamonds, but cost less. 

That’s because De Beers artificially manufactured the diamond’s rarity and exclusivity. As early as the 1870s, South Africa’s Kimberly region was discovered to have large deposits of diamonds. Following that, more mines were discovered all around the European continent. The discovery of those mines was a clear threat to the diamonds’ current prices.

Consequently, De Beers merged with other players in the industry and formed a cartel that controlled the diamond supply. That way, they maintained the illusion of scarcity in the production of diamonds and retained their price tag.

  1. The Rising Popularity of Lab Grown Diamonds in the Industry

De Beers wasn’t wrong when he predicted how the emergence of more mines would affect the prices. The popularity of lab grown diamonds in the current market is proof of his fears. Lab grown diamonds are cheaper than mined diamonds and are marketed as ethically sourced.

Historically, diamonds were always tied with dark secrets, like slavery or funding wars. Hence, their origins were always a point of concern for customers but lab grown diamonds resolve that completely. No underground sellers, but grown in a laboratory that gives it a clean background.

And to make the offer sweeter, lab grown diamonds are ethically sourced and eco-friendly. Both of these are important traits for a product to have in these contemporary times. The younger generation prefers supporting businesses that are sustainable and empathetic.

  1. Emotional Marketing with “Diamonds are Forever”

A lot of the marketing for diamonds early on became successful due to emotional marketing. Emotional marketing refers to the message you convey with your brand and how it affects your prospects’ feelings. Companies often harness these emotions to appeal to different customer situations.

Even now, diamond businesses still use emotional marketing to drive the product’s value. Lab grown diamonds are marketed to appeal to the customers’ emotions to protect workers and the environment.

The ad entitled “Diamonds are Forever” was a classic line that marketed diamonds in layered messages. On the surface, it tells you that diamonds are the hardest mineral, hence they could last forever. On a deeper level, that sturdiness can be associated with one’s love and commitment to their partner. Hence, diamonds became a staple for engagement rings given by “serious” partners. 

  1. The Shift of the Target Audience Towards Men

Traditionally, selling jewelry means targeting female customers, but De Beers had other plans. He wanted to increase the popularity of surprise proposals because that equates to engagement ring sales.

What he found out was that women always wore the rings in their heterosexual relationships. But they would choose the cheaper diamond jewelry when browsing products. Hence, De Beers changed his target to men since it’s usually the men who propose to women.

According to their observations, men were less cautious with their spending. With the popularity of surprise proposals, they hit two birds with one stone. The first is that women were eliminated from the selection process which removed their cheap choices too. With this, there came a rise in the expensive demand for engagement rings.

  1. Popularizing Different Types of Diamonds and Diamond Shapes with Influencer Marketing

You might think that influencer marketing is to use social media celebrities for promotional purposes. However, influencer marketing has been around way back in the 1930s. 

The influencers they employed were society’s elite and pop culture figures. And to incentivize their services, they were gifted with luxurious diamond jewelry. Even today, partnering with celebrities for commercials counts as influencer marketing.

With the influence of celebrities, the target audience became open to catering to different types of diamonds. Seeing someone you idolize wearing a pink diamond shaped uniquely is bound to influence your purchases. The same strategy works in contemporary times as well. Jewelry companies still employ pop artists to market their brands and products.

Conclusion

To answer the title of this article, yes, there are marketing strategies that led to the diamond industry’s success. Historically, De Beers built a solid foundation for the industry that remains to this day. And the marketing methods, though different in form, are essentially similar in approach.

For example, emotional marketing was done when marketing diamonds in the past with the line “Diamonds are forever”. And lab grown diamonds have risen in popularity because they’re ethically sourced and eco-friendly. Both approaches attempt to stir the customers’ emotions. 

The former appeals to lovebirds who want to eternalize their commitment. The latter appeals to those who empathize with laborers and the environment. Even the influencer marketing strategy is used both in the past and in the present. The only thing different is the medium and the people involved, but people recognized by the public still market the gemstone.

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