De Beers is planning to spend more on its traditional festive season marketing beating last years’ record of $166 million (P1.68bn).
Last year, the diamond company spent the highest amount recorded in more than a decade in marketing activities, hoping the positive global outlook for diamond demand translates into bumper profits.
“In 2018, we invested $166 million in marketing activities, the highest amount in more than a decade.”
The budget includes investments in propriety brands and diamond producers association, an initiative of leading diamond producers to support category marketing of diamonds in key consumer markets.
The diamond giant has been spending $120 million on its marketing campaigns every year since 2015.According to the diamond giant’s financial results for the first quarter, they experienced lower holiday season demand, tight liquidity, trade tensions and protests in Hong Kong, which led to a more cautious buying approach. However, consumer demand in the United States of America has remained positive.
The group also experienced some challenging conditions for rough diamond sales due to a combination of cyclical and macroeconomic challenges. The group’s total revenue decreased by 17% to $2.6 billion,
Meanwhile, De Beers jewellers made good progress in upgrading and expanding their network. A new store was opened in Bal Harbour, Miami, US and the store in Shanghai’s IFC Mall renovated. The brand now has 20 directly owned stores and 12 franchise stores in 16 countries.
The group’s recently opened diamond store, ForeverMark located at the Sir Seretse Khama International Airport is progressing well, with sales indicating that four out of every five purchases are by Batswana. Campaign to drive more traffic there is ongoing.
“Forevermark is now available in more than 2,400 retail outlets in 32 different markets. A new partnership with World Diamond Group has extended its licence operations in Europe and Italy,” stated the group. Forevermark unveiled its second retail concept store Libert’aime by Forevermark in Beijing in January, with its innovative in-store offering fully integrated with WeChat. It continues to create an omni-channel experience specifically targeting millennials.