De Beers and Asian Diamond Markets

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Questions and Answers

How does a traditional married woman view her identity in relation to her family?

She sees herself as an extension of her husband and family.

What priority does a modern married woman place on her responsibilities compared to her family?

She prioritizes both her family and herself.

In what way does self-worth differ between traditional and modern married women?

Traditional women derive self-worth from their family's success, while modern women base it on their own achievements and self-validation.

How does a traditional married woman feel about spending money on herself?

She feels guilty spending money on herself unless it is approved by her husband. Signup and view all the answers

What is a key characteristic of modern married women's approach to personal spending?

Modern married women do not feel guilty spending their own money on themselves. Signup and view all the answers

What demographic changes did De Beers target in East Asia during the mid-1980s?

De Beers targeted a youthful population that was attitudinally different from their parents and an expanding group of newly wealthy individuals. Signup and view all the answers

Why did De Beers open its first regional office in Hong Kong?

De Beers opened the regional office in Hong Kong to be more closely in touch with regional trends. Signup and view all the answers

What role did May Wong play in De Beers' marketing strategy for Asia?

May Wong was hired as the Asia Pacific regional marketing director to provide an 'Asian voice' and ensure appropriate questioning in surveys. Signup and view all the answers

What was one of the main challenges De Beers faced when expanding into Asia?

De Beers faced the challenge that 'Asia' was not a homogenous region, with varying cultural influences impacting consumer behavior. Signup and view all the answers

How did urbanization affect De Beers' marketing approach in East Asia?

Urbanization encouraged the spread of modern ideas, which De Beers capitalized on in their advertising strategies. Signup and view all the answers

Why was there a need for surveys and market research by De Beers in Asia?

Surveys and market research were necessary to understand social trends, gift-giving occasions, and motivations for diamond purchases in different countries. Signup and view all the answers

What differentiated Asian jewelry retailers from their Western counterparts according to De Beers?

Asian jewelry retailers operated on narrow margins and high inventory turns, unlike Western retailers who had high margins and low turns. Signup and view all the answers

What did De Beers learn about pan-regional campaigns in the Asian market?

De Beers learned that pan-regional campaigns would not work due to varying historical and cultural influences on purchasing motivations. Signup and view all the answers

What was the primary reason the Rainshower advertisement was less effective in China compared to other regions in Asia?

The Rainshower advertisement was considered too romantic for the Chinese audience. Signup and view all the answers

How did De Beers differentiate their marketing messages for modern and traditional women?

De Beers used different voice-overs and imagery; the 'modern' ad emphasized enjoyment and independence, while the 'traditional' ad focused on family values and modesty. Signup and view all the answers

What strategy did De Beers employ to lower barriers for first-time diamond purchasers?

De Beers encouraged justifications for purchases like 'I deserve it' and made retailers more customer-friendly by showing prices and providing informative literature. Signup and view all the answers

What percentage of diamond jewelry purchases in Asia were attributed to women's self-purchases?

Women's self-purchase diamond jewelry accounted for up to 60% of total sales in most Asian countries. Signup and view all the answers

In South Korea, what unique market influenced diamond purchases, and what percentage of diamonds were bought for weddings?

The haam wedding set market was significant in Korea, where 80% of diamonds bought were for weddings. Signup and view all the answers

What was a critical feature of the Sparks advertisement that appealed to young women?

The Sparks advertisement showcased young women having fun and subtly displaying their diamond jewelry, appealing to their desire for social connection. Signup and view all the answers

How did the ownership of one diamond influence future purchases according to De Beers' findings?

Once a woman owned one diamond, it lowered the barriers for future purchases, making her more likely to buy additional pieces. Signup and view all the answers

What two improvements did De Beers suggest to jewelry retailers to enhance the shopping experience?

De Beers suggested showing prices in shop windows and having less obtrusive security guards. Signup and view all the answers

What was the annual market growth rate between 1993 and 1996?

Around 20% per annum. Signup and view all the answers

Which city was De Beers’ main market during this time?

Shanghai. Signup and view all the answers

What was one of the consumer trends noted in the text that competed with luxury goods like diamonds?

The purchase of consumer products like air conditioners. Signup and view all the answers

What advertising strategy did De Beers adopt for the Chinese market?

They dedicated more of the annual advertising budget to China. Signup and view all the answers

What new category of diamond purchasers did De Beers identify during its experience in Asia?

Women buying diamonds for themselves. Signup and view all the answers

What challenge did De Beers face in the Japanese market?

Vulnerability to the rejection of the 'symbol of love' message. Signup and view all the answers

How did De Beers view the spending habits of women in Asia compared to those in the West?

They considered that western women might also desire to buy diamonds for themselves. Signup and view all the answers

What marketing focus did Fiona Hindmarsh mention for the American market?

Concentration on the diamond wedding ring. Signup and view all the answers

What was the primary criterion for judging success among the X-Generation according to the survey?

Wealth was the key criterion for judging success. Signup and view all the answers

How did Chinese women's perspectives on marriage differ from traditional views of love?

Chinese women prioritized financial status over love when selecting husbands. Signup and view all the answers

What role did peer admiration play in the lives of the X-Generation?

Peer admiration was essential for the X-Generation's social interactions. Signup and view all the answers

What were the traditional expectations of marriage roles among the X-Generation?

Men were expected to be providers and protectors, while women were to be virtuous and good mothers. Signup and view all the answers

How did Chinese men feel about the financial expectations in regard to finding a wife?

Men resented the financial expectations placed upon them despite recognizing the need to prove their worth. Signup and view all the answers

What was the dilemma faced by De Beers in introducing diamond rings in China?

De Beers had to establish cultural imperatives for diamond wedding rings in a country with a rich wedding tradition. Signup and view all the answers

What view did both men and women in China have about marriage and love?

They viewed marriage as 'the graveyard of love', indicating a bleak perspective on romantic expectations. Signup and view all the answers

What were the trappings of wealth valued by the X-Generation?

Major foreign brands, large houses, and diamonds were among the trappings of wealth. Signup and view all the answers

Why did Diane wonder about Emily's diamond ring?

Diane wondered because she wore her engagement ring daily, viewing it as a token of love, unlike Emily who seldom wore her valuable ring. Signup and view all the answers

What was Diane's relationship with Emily before visiting Hong Kong?

Diane and Emily worked together for three years in a fashionable retail store in London. Signup and view all the answers

How did Emily perceive the purpose of her diamond ring compared to Diane?

Emily saw her diamond ring as something too valuable for everyday wear, while Diane considered it a constant reminder of love. Signup and view all the answers

What does Diane’s eagerness to meet Emily's husband suggest about her character?

It suggests that Diane values personal relationships and shows interest in the lives of her friends. Signup and view all the answers

What cultural difference is illustrated by Emily's choice in wearing her wedding ring?

The cultural difference is that Emily does not wear her wedding ring regularly due to its value, whereas Diane wears her engagement ring daily. Signup and view all the answers

What can be inferred about the significance of weddings in Emily's culture?

Weddings may focus more on tradition and material value rather than romantic expressions of love, as Emily highlights a pragmatic view. Signup and view all the answers

Why did Emily choose to wear the engagement ring on special occasions only?

Emily wore the ring on special occasions because of its significant monetary value and cultural attitudes towards material possessions. Signup and view all the answers

What does the term 'solitaire diamond pendant' reveal about Emily's tastes?

It suggests that Emily has a preference for elegant and sophisticated jewelry that carries both aesthetic and material value. Signup and view all the answers

Study Notes

De Beers: Diamonds are for Asia

This case study, written by Jocelyn Probert and Hellmut Schütte, is intended for classroom discussion, not as a guide to effective or ineffective administrative situations.
The case centers on a situation where Diane, a visitor to Hong Kong, observes differences in diamond shopping habits in Asia versus those in Europe.
Emily, Diane's friend, explains that diamonds are not worn every day, but as special gifts or tokens of love, usually on special occasions, and that it's more about value than daily wear.
The case highlights the De Beers strategy of emphasizing the "gift of love" aspect in its marketing campaigns.
De Beers maintains a Central Selling Organisation (CSO) to manage rough-diamond supply, limiting price fluctuations and building public trust.
The CSO handles rough-diamond sorting into 14,000 categories based on the 4 Cs.
De Beers' Consumer Marketing Division uses advertising campaigns to create demand for diamond jewellery.
De Beers' marketing efforts targeted young Asian women as a priority.

The De Beers Story

De Beers has marketed diamonds as the ultimate luxury product for centuries.
Only 20% of mined diamonds are of gem quality, while the rest are industrial-grade stones.
Smaller stones, near-gems, account for 30% of mined diamonds.
The De Beers Central Selling Organisation (CSO) managed 65-70% of worldwide diamond production.
The CSO has controlled production to maintain the luxury image of diamonds, even during economic downturns.
De Beers' marketing focuses on "emotional" qualities.
De Beers' efforts in Asia were focused on diamond engagement rings as the key to establish diamond purchase as a cultural custom.

Diamond Jewellery in Japan

De Beers focused on the yuino ceremony which proved to be an enduring institution despite the decline of arranged marriages.
The yuino ceremony was a traditional engagement ceremony.
De Beers' strategy was to associate diamonds with the yuino custom, promoting diamonds as a meaningful symbol of future commitment.
The initial advertisements for De Beers in Japan were less relevant to the local context and were adjusted after analysis of data and cultural observations.
De Beers focused on a 'women's desire' campaign, which targeted women who wanted diamonds for self-purchase as a status symbol in a recession-proof sector.

Crisis in Asia

The 1997–98 Asian financial crisis is highlighted as a period of reduced discretionary spending and altered market conditions for diamond consumption.
The case emphasizes the difficulty in extrapolating experiences from one Asian market (China) to other markets.
Variations across regions, lifestyles, and cultural norms were considered.

###Looking to the Future

De Beers needed to adapt its marketing strategies to address variations in consumption attitudes amongst Asian consumers.
De Beers needed to address the shift in priorities and expectations of younger generations of Asian women.

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Description

This quiz explores the case study on De Beers' diamond marketing strategies in Asia, focusing on cultural differences in diamond purchasing behaviors. It discusses the significance of diamonds as gifts and the company's approach to manage supply and demand through its Central Selling Organisation. Reflect on the effectiveness of these marketing tactics in the Asian market.