SEPTEMBER 14, 2016

With six weeks to go to the opening of the 2016 CIBJO Congress in Yerevan, Armenia, on October 26, 2016, the fourth of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Coloured Stone Commission, headed by Nilam Alawdeen, the report examines the subject of ethical sourcing in the coloured gemstones sector, specifically from the perspective of the welfare of the workers it employs.

The report is complementary about the efforts of companies involved in the industry to introduce measures that will support workers and their communities in the producing countries, but cautions that the interests of for-profit entities and the mining nations do not always converge. In particular, it expresses concern that systems based on audits and certification will have a detrimental effect on the ability of smaller companies, which employ a major share of the industry’s workers, to compete economically.

“Before we ask for audits and certification as conditions for ‘ethical’ and ‘responsible sourcing,’ should we not first look into what we, as socially responsible entities, are doing for the producers of the materials from which we derive our profits?” writes Mr. Alawdeen. “What percentage of our turnover or profits is constantly being returned to the producing areas for their workers’ welfare and the wellbeing of the mining communities?”

The report also tackles the issue of consistency in gem lab reports, and in particular the use of descriptive terms, such as “Pigeon’s Blood” and “Royal Blue,” to describe the colour and quality of fine rubies and blue sapphires, which are subjective descriptions, without agreed upon standards for deciding what stones qualify. This will be discussed in depth during the CIBJO Congress in Yerevan in October.

To download a full copy of the report, PLEASE CLICK HERE.

SEPTEMBER 7, 2016

Arguably the most substantial reconsideration in recent decades of the way in which diamond jewellery should be be promoted and sold was the focus of a seminar held September 4, 2016, the second day of the VICENZAORO September trade fair in Vicenza, Italy. Entitled “The Challenge of Marketing to Millennials: The Next Great Consumer Generation,” the event was co-organised by CIBJO and Fiera di Vicenza.

Born between 1980 and 2000, the Millennials represent one of the largest generations in history, and its members are about to move into their prime spending years. The unique experiences of Millennial consumers will change the ways the jewellery industry promotes and sells, and the manner in which it communicates with its customers. This will require companies to examine how they do business.

s the most heterogeneous generation ever in terms background and ethnicity, the Millennials grew up in digital society, where online and mobile skills were not learned but simply acquired. This changed the way they perceive the world, and how they interact among themselves and with others.

“When we market our products to Millennials, we no longer are able to get the exclusive attention of our clients,” said CIBJO President Gaetano Cavalieri, welcoming the crowd of participants that filled the room.” They have easy access to large amounts of information. They are more inclined to do research before buying, and they consult with their friends before making a decision.”

Importantly, when it comes to purchasing decisions, Millennial consumers are considerably more likely to consider issues such as product integrity, sustainability and social responsibility. Studies show that they are nearly twice as likely to purchase from a brand because of its social and or environmental impact.

“Already today, Millennials represent more than $2.45 trillion in spending power, and it is a number that will grow substantially,” said Corrado Facco, Managing Director of Fiera di Vicenza, who also serves as President of CIBJO’s Trade Show Commission, during his welcome to seminar participants. “According to a research carried out by Cone Communications, up to 70 percent of them will spend more on brands that support causes they care about.”

Seminar presenters (from left): Jean-Marc Lieberherr, CEO of the Diamond Producers Association, which is about to introduce the industry’s first sustained generic marketing campaign in 10 years, which will mainly be directed at Millennials; Roberto Coin, the leading Italian jewellery designer and brand developer; Ella Goldner, Global Strategy Director at IPG Mediabrands in London; Costantino Papadimitriou, head of global communication strategy and campaigns, and brand innovation at De Beers’ Forevermark; and  CIBJO President Gaetano Cavalieri.

At VicenzaOro September, CIBJO and Fiera di Vicenza convened what almost certainly was one the most expert panels ever gathered to consider the topic. It included:

• Ella Goldner, a Global Strategy Director at IPG Mediabrands in London, which is part of an advertising and marketing network that includes McCann World Group, Lowe and Partners and FCB. She specializes in marketing to Millennials, developing campaigns that meet their requirements, and delivering and reinforcing their content using new media tools.
• Jean-Marc Lieberherr, the CEO of the Diamond Producers Association, which has taken upon itself the task of reintroducing category or generic marketing for the diamond jewellery sector. He earlier served as Managing Director of Rio Tinto Diamonds, and before joining the diamond industry worked in international sales and marketing positions with LVMH and Unilever.
• Costantino Papadimitriou, who is responsible for global communication strategy and campaigns, as well as brand innovation, at De Beers’ Forevermark, which is far and away has the largest advertising budget in the diamond jewellery sector. He leads Forevermark’s London-based communication team as well as its Milan based Design and Innovation Centre. Previously he worked for J. Walter Thompson for 27 years.
• Roberto Coin, President, owner and visionary of the Roberto Coin Group and brand, which is sold in more than 1,000 outlets in 62 countries. Acutely aware of the growing sentiment among consumers for issues related to CSR and sustainability, in 2013 he was awarded an Andrea Palladio International Jewellery Award for Best Corporate Social Responsibility Brand.

The moderator of the seminar was Steven Benson, CIBJO’s Director of Communications.

CIBJO has made available for downloading the presentations delivered at the seminar, via a dedicated page on VOICES OF CIBJO section of the website. To access the page, CLICK HERE.

SEPTEMBER 7, 2016

With seven weeks to go to the opening of the 2016 CIBJO Congress in Yerevan, Armenia, on October 26, 2016, the third of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Diamond Commission, headed by Udi Sheintal, the report reviews the impacts of technology, both positive and negative, on the jewellery industry and trade, and investigates ways in which the business should react.

The report studies two developments in particular. The first is synthetic diamonds. In this respect it reiterates standards introduced by CIBJO to clearly distinguish between natural and man-made gems. In 2015 these essentially were adopted by the International Standards Organisation, when it released ISO International Standard 18323, which specifies a set of permitted descriptors for the diamond industry that are designed to be understood by the consumer. The report then outlines a number of variables, including investment in generic marketing campaigns, which ultimately will decide the degree to which the introduction of gem-quality synthetics into the market will affect the price of naturally mined stones.

The second development concerns scanning technologies that have been created in recent years that enable rough dealers to accurately map the internal inclusions in a stone. Specifically, the report investigates the ethical implications of such technologies, and considers whether rough dealers who have scanned their stones are obliged to inform clients that they have done so, and even possibly divulge the results.

“Technology has become an integral component in our business, and just as we need to adapt to the changes that it has instigated, the developers of technology should be cognisant that their products serve the greater good of the industry from which they benefit,” writes Diamond Commission President Udi Sheintal in the report. “In this respect it is important that constant dialogue take place between the industry and the technology developers with the understanding that, ultimately, our long-term interests are the same, and that is we should have a healthy and profitable diamond and jewellery business.”

To download a full copy of the report, PLEASE CLICK HERE.