De Beers' Diamond Strategy in Asia Case Study

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Questions and Answers

By 1996, what was the diamond engagement ring acquisition rate among couples getting married?

64% (correct)

20%

80%

40%

What trend did couples in Japan begin to favor over the traditional yuino in the 1990s?

Jimi-kon weddings (correct)

Elaborate engagements

Destination weddings

Traditional wedding ceremonies

What percentage of women approaching engagement thought about diamonds as a 'symbol of love' in Japan?

50%

20%

40% (correct)

70%

What issue did De Beers face in Japan following the booming 1980s?

The 'democratization' of the diamond Signup and view all the answers

What societal pressure weakened, contributing to the decline in diamond engagement ring popularity?

Conformity to traditional expectations Signup and view all the answers

How did De Beers aim to change the perception of diamonds in the 1990s?

By portraying them as symbols of true feelings Signup and view all the answers

What percentage of diamond jewelry sales in Japan was accounted for by engagement rings at the end of the 1980s?

20% Signup and view all the answers

Who predominantly controlled the family finances in many households, influencing diamond purchases?

Wives Signup and view all the answers

What message does the headline of the advertisement convey about women's diamond jewelry?

It implies that the beauty of a woman is enhanced by more jewelry. Signup and view all the answers

Which of the following best describes the uniqueness of diamonds according to the advertisement?

Diamonds are considered precious and rare. Signup and view all the answers

What is one of the key selling points mentioned for selecting a diamond?

They start from an affordable price of 3,500 RMB. Signup and view all the answers

The reference to the '4Cs' in the advertisement likely refers to which aspect of diamonds?

Color, Carat, Cut, and Clarity Signup and view all the answers

What overall sentiment does the advertisement convey about purchasing diamonds?

Diamonds are accessible and can enhance personal beauty. Signup and view all the answers

What was the main reason diamonds were considered irrelevant for Asian women’s lifestyles?

Diamonds were perceived as glamorous but not practical. Signup and view all the answers

According to Fiona Hindmarsh, what attribute of diamonds contributes to the beauty of the wearer?

Their sparkle and beauty. Signup and view all the answers

What was a significant cultural difference regarding diamond rings between Asian and American women?

American men attached more emotional value to diamond rings. Signup and view all the answers

What motivated Asian women to desire a diamond wedding ring?

Peer recognition and status elevation. Signup and view all the answers

What message did De Beers attempt to convey with their advertisements in Asia?

Diamonds symbolize love and commitment. Signup and view all the answers

What was the strategy regarding diamonds for men in certain Asian countries?

To prevent the feminization of diamonds. Signup and view all the answers

How did surveys reflect the understanding of De Beers' 'gift of love' message in Asia?

People in Asia connected the message solely to advertisements. Signup and view all the answers

What aspect of diamond rings was considered important in Asian culture?

Their size reflecting status. Signup and view all the answers

What did Diane find puzzling about Emily's approach to wearing her engagement ring?

Diane thought all women wore engagement rings daily. Signup and view all the answers

What does the conversation between Diane and Emily reveal about cultural differences?

Diane values everyday displays of love more than Emily. Signup and view all the answers

What occasion did Emily wear her diamond ring for the first time?

Her wedding day. Signup and view all the answers

How did Diane's experience differ from that of Emily regarding jewelry?

Emily views jewelry as a luxury item rather than sentimental. Signup and view all the answers

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

It is merely a piece of jewelry without emotional significance. Signup and view all the answers

What is suggested about the nature of love discussions in Hong Kong as per Emily's perspective?

They are considered superficial and not meaningful. Signup and view all the answers

What aspect of cultural identity is highlighted in the case study?

Social perceptions of marriage and engagements. Signup and view all the answers

What item did Emily show to Diane that sparked her interest?

A solitaire diamond pendant. Signup and view all the answers

What was the primary goal of re-establishing the position of diamonds?

To portray diamonds as relevant to daily life Signup and view all the answers

Which market was particularly vulnerable to economic downturns according to the content?

China Signup and view all the answers

What aspect of marriage was found to be shocking to De Beers' traditionalists?

Emphasis on practicality and materialism Signup and view all the answers

What potential risk was associated with the casualization of dress concerning diamonds?

Diamonds would be isolated in the casual sector Signup and view all the answers

What challenge was presented regarding the messaging of diamonds as a ‘love’ purchase?

Diamonds needed to compete with other status symbols Signup and view all the answers

In what year did the percentage of Japanese brides receiving diamond engagement rings first rise significantly according to the data provided?

1967 Signup and view all the answers

Which countries had a lower percentage of brides acquiring diamond engagement rings as compared to Japan in 1991?

All listed countries Signup and view all the answers

What factor contributed to the negative impact on East and Southeast Asian markets?

Economic recession Signup and view all the answers

What demographic trend did De Beers identify in East Asia during the mid-1980s?

A youthful population with different attitudes Signup and view all the answers

Which of the following was a reason for De Beers to shift its focus to East Asia?

Rapid economic growth in East Asia Signup and view all the answers

What significant action did De Beers take in 1994 concerning its marketing strategy in Asia?

Opened a regional office in Hong Kong Signup and view all the answers

Why did De Beers view 'Asia' as a non-homogenous region?

Purchasing motivations are influenced by diverse cultural factors Signup and view all the answers

What aspect of the retail environment did De Beers consider when expanding into Asia?

Narrow margins and high inventory turns of jewelry retailers Signup and view all the answers

What role did May Wong play in De Beers' marketing efforts?

Regional marketing director for Asia Pacific Signup and view all the answers

What misconception did De Beers aim to correct regarding consumer understanding?

That all consumers have the same motivations for purchasing diamonds Signup and view all the answers

What was one of the strategies De Beers employed to develop its advertising campaigns in Asia?

Commissioning surveys to gauge various social attitudes Signup and view all the answers

Study Notes

INSEAD Euro-Asia Centre Case Study: Diamonds are for Asia

This case study was written by Jocelyn Probert and Hellmut Schütte
Intended for class discussion, not for illustrating best or worst practices
Focuses on De Beers' strategy for the diamond market in Asia

De Beers' Story

Diamonds have been a symbol of luxury and power for centuries.
De Beers' is the world's largest diamond mining company
Aims to maintain public confidence in diamond value
Owns a Central Selling Organisation
Their CSO sorts rough diamonds into 14,000 categories based on the 4Cs.

Diane and Emily's Interaction

Diane, a European, observes Emily's diamond ring
Emily describes her reasons as a personal reward
Cultural differences are evident in their perspectives on showing love through gifts

De Beers' Strategy in Asia

Initially used the "gift of love" positioning, but discovered this did not resonate equally with Asian consumers (especially women).
De Beers shifted their approach to focus on diamond's value as a status symbol: "women's desire."
Recognition, confidence, and success.

Diamond Market in Asia

Asian preferences differ from those in the West, for example, the social practices surrounding the exchange of rings or jewelry.
The importance of social status, and conspicuous consumption
De Beers encountered cultural differences and varying degrees of modernity regarding their target groups in different Asian countries
Different attitudes towards love and marriage.

De Beers' Approach in China

De Beers started in 1986 by working with the government and community engagement
Realised that simply applying the Western 'gift of love' concept wouldn't work in China, as social and cultural customs differed drastically.
Emphasised beauty and rarity, as important factors for those in the diamond market.
The targeted market in China was primarily those who could afford high-quality diamonds

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Description

Explore the dynamics of De Beers' marketing strategy in the Asian diamond market as outlined in the case study by Jocelyn Probert and Hellmut Schütte. This analysis delves into cultural perceptions, marketing adjustments, and the significance of diamonds as gifts in different societies. Engage in this discussion to understand the complexities of consumer behavior in luxury markets.