insanity of the diamond industry the advantages of turkey's jewelry industry diamond, art and ...

92 Pages·2016·28.51 MB·English

W WORLD
O JEWELLERY
R EXPORTERS'
L ASSOCIATION
D
D
IA
M
O
N DIAMOND “Last year’s problems won’t go
D
M away.”
A Ernest Bloom
G
A
ZIN “Art encapsulates history, culture
E and preserves value.”
MAGAZINE Alex Popov
“Five social media resolutions
for 2016”
06 Beth Anderson
JANUARY 2016
THE ADVANTAGES OF TURKEY’S
G
L JEWELRY INDUSTRY
O
B Ayhan Güner
A
L Chairman of Turkish Jewelry Exporters' Association

J &
E
W
GROWING NUMBER OF HISPANICS
E
L CHANGING U.S. JEWELLERY MARKET
L
E
Albert Rabinson
R
Y

I
N INSANITY OF THE
D
U DIAMOND INDUSTRY
S
T Neil Reiff
R
Y

M
A
G
A
Z
I
N
E

DIAMOND,
ART AND BUILDING
RELATIONSHIPS
FROM THE OUTSIDE IN
By Reena Ahluwalia

Last year’s problems won’t go away,
but we can improve things in 2016
By Ernest Blom, President, the World Federation of Diamond Bourses
Vice Chairman, the World Diamond Mark Foundation
As we start out on a new year, I believe we However, I also continue to advise diamantaires, this is a demographic group that is often not
must all approach the challenges that it manufacturers and others in the midstream part interested in traditional advertising. They are
will undoubtedly bring, with renewed of the market to realise the damage they have forcing us to use the tools they like — and that
confidence and an optimistic outlook. been doing to themselves by buying rough goods means marketing in a digital world, including
We all know that the issues that confronted the at almost any price. That boosted prices of rough social media — to reach them. We also need to
industry last year are not going to disappear just diamonds to levels that were not connected to find the language and references that will appeal
because a new year has started, but we must also reality. It may have also made the banks suspicious to them.
realise that financial and economic challenges are about providing credit to clients who appeared to
temporary and it is imperative to retain a balanced be chasing goods that could not be manufactured We must provide honest and up-to-date
outlook. and sold for a decent profit. information about what we are doing to address
some of the issues facing our industry, such
What are the issues that will provide the biggest I turn now to the issue of promotional activity to as conflict diamonds and our sustainable
tests to our resolve this year and what do we need boost demand for diamond jewellery. Since De development work in creating minimal damage
to concentrate on? Clearly, financing for our trade Beers ended its generic global promotion work in to the environment because these are issues that
will be one; the growth of generic marketing and the previous decade, the diamond industry has strike a deep chord with environmentally-aware
developments will be prominent this year; and failed to develop a unified approach on this issue.
younger people.
then there is the challenge posed by undisclosed In the past two or three years, however, we have
synthetic diamonds along with ongoing concerns seen movement, not least by the WFDB which
Moving on to the issue of synthetic diamonds, the
about over-grading and the consequent potential launched the World Diamond Mark (WDM)
WFDB has no problems whatsoever with such
damage to consumer confidence. initiative. Consumers must regard regularly buying
stones just as long as they are clearly disclosed.
diamond jewellery as a natural and ongoing
Their production levels are rising and becoming
On the subject of financing for the diamond trade, activity. Engagement and wedding ring purchases
more sophisticated, but most such stones are
we have witnessed declining interest among banks remain critical, of course, but there are many
used in the industrial sector and the number of
in providing credit to our members. This creates other occasions for which diamond jewellery can
lab-grown diamonds that are gem-quality is still
a handicap to our work since credit lines are the be purchased and the retail sector needs to show
rather small.
oxygen that finances our activities. buyers those opportunities.
Our paramount concern is that synthetics and the
WFDB working with ABN AMRO on bank The World Diamond Mark was launched by the
cases of over-grading cause damage to consumer
finance norms WFDB more than three years ago to promote
Hapopwroeavcehr, itnh et hWisF rDesBp eisc tt aaknidn gh aas p breoe-na cdtoivien g so for cThones auimme irs dfoers israel efos ro, fa nddia mcoonnfiddse annced idni,a dmiaomndo nds. csoolndfi adse snucceh. .S Wynet hheatvices s meeuns tc absee sc lweahrelyre m syanrkthedet aicnsd
the past several years. We are working with ABN jewellery to perform significantly better in the have been added to parcels of natural mined
Amro Bank, the biggest provider of finance to the luxury product consumer market. And to reach diamonds. We have no tolerance whatsoever for
diamond and jewellery industries, on a template for that goal, the industry — from diamond producers such illegal activity, and the same goes for cases of
the banks and our members. This aims to explain to retail jewellers — is acting together to promote, over-grading, where the means used are becoming
to diamond firms the concerns and requirements advertise and market diamonds and diamond more sophisticated, as we saw in the case of the
of the banks regarding the diamond trade. And it jewellery more effectively and visibly to the end- certificates from GIA India that were fraudulently
also provides the banks with in-depth information consumer.  altered. People conducting themselves in this way
will be removed as bourse members, where it is
regarding the diamond sector and what it needs in
order to operate.  We also plan to work closely with the Diamond found to be the case, and prosecuted for fraudulent
Producers Association (DPA) as we believe that activity.
The banks have shown a degree of reluctance to this challenge is too big for any one particular
provide increased credit to diamantaires partly organisation to achieve. We hope the DPA will see I would like to finish — as I began — on an
because they, like us, have seen the high prices of the need for us to all join hands in this common optimistic note. During troubled times, it is
rough over the past year and more, and the static cause. This would enable us to truly make a huge sometimes difficult to remember that this is a large
or declining price of polished which has made impact on consumer awareness, particularly and powerful global trade that is self-regulated
manufacturing simply not financially viable for among the younger generation. to an extent that is hardly seen in other sectors.
many companies. Against that background, the The year 2014 saw record diamond jewellery
banks assess the risk of providing credit as too high.  We need to master digital and social media sales of $81 billion and although last year was
As I said at the WFDB’s Presidents’ Meeting in a challenging one, sales are expected to be of a
But I believe that with the decline in rough prices Tel Aviv in June, I have yet to see a young person similar level. We know that China is slowing down,
in the final quarter of last year, which is likely to queuing up all night to be the first in line to buy a but India is on a strong growth path, and in both
continue in the first months of 2016 as well, in jewellery item in the same way that youngsters do countries, the numbers of middle class citizens
addition to the cutback in manufacturing in India for the latest smartphone or tablet. I believe it is is growing. Indeed, there are expected to be 100
and elsewhere which will create shortages in some critical for us to create a big impact on the 18-35 million new middle class households in the major
items as inventories decline, the banks can be age range. diamond consumer markets by 2019 — and that
persuaded to provide financing since profitability means rising sales opportunities for the diamond
will return. And that presents a significant challenge because business.
WORLD JEWELLERY
DIAMONDD EXPORTERS'
ASSOCIATION
MARK
A Mark of the World Federation of Diamond Bourses
Ya’akov Almor ART + PRODUCTION JTR HEAD OFFICE
JEAEXSWSPOOELCRLITEAERTRYISO'N Editor in Chief AAlytkınudt üTnayşaksıın Publishing Group DKaışt :T2 iÇcaorbeat nKçoemşmpele Mksei vAk-iib, lok
Sanayi Cad.
Remzi Çelen EDITORIAL CONSULTANT Yenibosna-Bahçelievler
WORLDD Managing Editor 212 PR İstanbul / Türkiye
DIAMOND
Tel: [phone] D:1002
MARK PUBLISHING GROUP
EDITORIAL Fax: [phone]
A Mark of the World Federation of Diamond Bourses Altındünyası Publishing Group
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Alemdar Mah. Nuruosmaniye Caddesi
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Aylin Gözen N: 12 Kat:3 Fatih – İstanbul
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Dostlukyurdu Sokak
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TURKISH JEWELLERY EXPORTERS’
Victoria McKay
ASSOCIATION Çemberlitaş / İstanbul / Türkiye
Shira Ami in cooperation with Tel: [phone]
Geoffrey Dominy WORLD DIAMOND MARK FOUNDATION Fax: [phone]

Dave Siskin
WITH THANKS TO
GEZEGEN PRINTING
Brad Huisken Alex Popov
100. Yıl Mh. 2. Caddesi (Matbaacılar
Aslı Çelebioğlu Ayhan Güner
Sitesi) No:100,
Dila Ecem Çakır Ernest Blom
Bağcılar - Türkiye
Melek Sancaklı Mustafa Atayık [phone]
Tanyel Yılmaz Mehmet Can Özdemir www.gezegenbasim.com.tr
BIST
Oğuz Özdemir
UBM Rotaforte
Şirzat Akbulak
HRD Antwerp
World Diamond Magazine | 2016-06
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DWM ADTF 20x27cm new.indd 1 22/06/15 11:07
THE ONLY WAY YOU CAN
DILUTE YOUR BRAND IS BY
OFFERING POOR CUSTOMER
48
SERVICE.
Lilian M. Raji
Getting back
74
to Sanity
Leibish Polnauer
What Lab-grown diamond
industry thinks about
ISO 18323?
25
24
Ernie Blom
WFDB President
BHARAT DIAMOND
BOURSE FULLYENTITLED
TO BAN TRADING IN
SYNTHETIC
Ayhan Güner
Chairman of Turkish Jewelry
Exporters' Association
THE ADVANTAGES
ALEX POPOV
OF TURKEY'S Chairman of WDM
JEWELRY ART ENCAPSULATES
INDUSTRY HISTORY, CULTURE AND
16 PRESERVES VALUE
20
57
HAIFA WEHBE
SHINES IN ISTANBUL
WORLDD NEWS
DIAMOND
MARK
A Mark of the World Federation of Diamond Bourses
Borsa İstanbul, the only bourse regulated under Turkish Capital Market Law,
and the World Diamond Mark Foundation (WDM) have signed an agreement
that cements the cooperation between Borsa İstanbul and WDM, with the
specific objective to institutionalize diamond trading in Turkey and in other
key markets by means of Borsa İstanbul’s extensive networking capabilities
and ready access to markets in Europe, the Middle East and Asia.
Alex Popov Tuncay Dinç
8 World Diamond Magazine | 2016-06
"Turkey’s access to both established
and emerging markets, combined
with its strong and broad industrial
base, will prove an enormous asset
to WDM."
Upon signing commended the Borsa of third parties, will play an İstanbul couldn’t come at a
the agreement, Istanbul’s leadership for its important role as a WDM better time. “Turkey’s access
Tuncay Dinç, vision and understanding of ambassador. We expect that to both established and
Borsa Istanbul the WDM’s objectives and for on the one hand, Turkey emerging markets, combined
CEO, said that Borsa the adoption of its goals. “The will play a pivotal role in the with its strong and broad
İstanbul’s resolution to join Turkish diamond, gem and promotion of diamonds in its industrial base, will prove an
the WDM’s efforts to promote jewellery industry and trade target markets, while on the enormous asset to WDM. At
consumer desirability and is uniquely placed to adopt other hand it will be among the same time, the Turkish
confidence in diamonds and implement the WDM’s the first industries to reap industry stands to benefit
comes at a crucial moment. promotional programmes the benefits of the WDM’s from the added value that
for diamonds and diamond activities,” Popov said. WDM’s programmes can
“The international diamond
jewellery. As the gateway for bring to retailers, its target
and diamond jewellery
trade between Europe, the WFDB President Ernest markets, and help them
industry is currently facing
Middle East and Asia, Turkey, Blom, who is also the boost and grow diamond and
significant competition for
by means of Borsa İstanbul WDM Vice Chairman, said diamond jewellery sales to
market share in the luxury
and a significant number the agreement with Borsa consumers.”
consumer product market.
We believe that the WDM,
which operates under the
umbrella of the World
Federation of Diamond
Bourses, is the ideal body
that will not only bundle the
efforts by our industry in
stimulating consumer desire
for diamonds and diamond
jewellery, but will also be the
catalyst that can open up new
employment opportunities
for our well established
high quality jewellery
craftsmanship industry” Dinç
stated.
From left: Çetin Ali Dönmez, Vice President Borsa Istanbul and Oğuzhan Yunus Aloğlu, Director Borsa Istanbul
WDM Chairman Alex Popov
2016-06 | World Diamond Magazine 9
WORLDD NEWS
DIAMOND
MARK
A Mark of the World Federation of Diamond Bourses
By Albert Robinson
The United States’ Hispanic population has become an important
demographic for retailers, with its strength continuing to grow as the
ethnic group becomes larger, according to recent research by two bodies,
Univision and the NPD Group.
10 World Diamond Magazine | 2016-06