DE BEERS: DIAMONDS ARE

FOR ASIAGroup 5

Rizwan chand

AGENDA SWOT Analysis

Key Consumer segments of Diamond buying in China and Japan

Are there any other segments in any other country market worth nothing?

What reasons underpin diamond purchasing in South East Asia?

What would you do in China?

SWOT ANALYSIS

Strength

-The largest diamond mining organization in the world-CSO was able to control the supply-Good marketing effort i.e. advertisement, and marketing reaserach-Strong brand internationally-Is the leader in large market

Weaknesses

- Branding in China

Opportunities

-The economic growth of China and SE Asia market-Easier to generate sales from repeaters than first time buyers

Threats

-Social value (buying gold as a store of value)- Asian economic crisis- Government acknowledgement

KEY CONSUMER SEGMENT

- Age 35-54 married women- Age under 35

- 50% purchase USD 860

- 50% purchase USD 350

- Married women- Wealthy men

Japan China

ARE THERE ANY OTHER SEGMENTS IN ANY OTHER COUNTRIES WORTH NOTING?

Attract ‘Moderns’ in East and SE Asia to buyMost of them are the non-owner

Increase the profit by attracting more customers in Korea, Taiwan, Hong Kong, and Singapore They currently buy bigger and higher

quality diamond than in Western Countries.

Encourage Western women to buy diamond for themselvesLeverage the success in Asia to Western

REASONS UNDERPIN DIAMOND PURCHASING IN S/E ASIA

1) Self-purchase culture of both men and women The company succeeded to establish a social value that

men could also buy diamonds for themselves.

2) Jewellery manufacturers = Retailers Charged lower margin Purchaser can get much more for their money

3) The growth of potential buyer population Rapid economic growth, a youthful population, and

expanding group of newly wealthy people

4) Diamonds sparkleness It is very special feature of diamond It also matches with the social value that People are

showy.

WHAT WOULD YOU DO IN CHINA?

Current situation: China is the one of the few market that man want

to buy diamond for themselves ‘The symbol of love’ image didn’t work in China The reason for buying/ wearing diamond ring was

more related to status than love

Recommendation Short-term

Need to create strong positioning of diamond Create image of diamond as “The Symbol of Our

Bright Future’ Expand diamond for men’s market

i.e. Luxury Watch, Cuff Link, etc. Long-term

Expand to other cities in China

THANK YOUGroup 5