Diamond miners have India in sight with Real is Rare slogan


Reuters

* Chinese launch planned for next year following Indian
campaign
    * U.S. market led demand growth in 2016

    LONDON, April 21 (Reuters) - The world's top diamond
producers will try to spur demand in India with the launch of
their "Real is Rare" slogan in September, after the withdrawal
of high-value bank notes dented the world's third biggest
diamond market.[nL5N1E81LV]
    The marketing slogan was launched in the United States in
2016 by the Diamond Producers Association (DPA), which groups
the biggest producers including De Beers, part of Anglo American
<AAL.L>, Russia'sAlrosa <ALRS.MM> and Rio Tinto <RIO.L>
<RIO.AX>. [nL8N18V1VZ]
    DPA Chief Executive Jean-Marc Lieberherr told Reuters early
indications were that the slogan was effective and diamonds had
captured the interest of the millennial generation, which the
DPA's research found wants "fewer and more meaningful things".
    The Real is Rare slogan is intended to be international, but
marketing campaigns will be tailored to specific markets with a
DPA budget that Lieberherr said would see "a large increase"
this year compared with last year's $12 million. He said he
could not disclose the precise figure yet.
    Research has been carried out in India into the culture of
diamond buying there, the nation where diamonds were first mined
and where activities such as diamond cutting and polishing
employ more than a million people.
    Demand for diamonds in India slowed late last year following
Prime Minister Narendra Modi's decision to scrap high value
banknotes as part of a crackdown on tax evasion and
counterfeiters. Most Indian people are paid in cash and buy what
they need in cash. [nL5N1E81LV]
    After India, the ODA's next target will be China, the second
biggest diamond market after the U.S. Lieberherr is seeking to
recruit an advertising agency in China with a view to launching
the Real is Rare concept in China in April 2018.
    The marketing phrase complements De Beers' A Diamond is
Forever slogan, which dates from 1947 and is still used.
    De Beers, the world's biggest diamond miner by value, said
in an email it would release data for last year's diamond sales
at the start of June, but it was already clear demand rose
slightly last year driven by good growth in the U.S., which
accounts for roughly 45 percent of global diamond sales.
    China represents 14 percent and India 7 percent.
    Anglo American <AAL.L> has placed diamonds at the heart of
its mining portfolio, saying they provide balance because they
can hold their value as a luxury good even when basic
commodities crash.

 (Reporting by Barbara Lewis; Editing by Elaine Hardcastle)
 ((Barbara.hm.Lewis@thomsonreuters.com; +44 207 542 2932;
Reuters Messaging:
barbara.hm.lewis.thomsonreuters.com@reuters.net))

Keywords: DIAMONDS ADVERSTISING/



This article appears in: World Markets , Stocks , Economy , Oil , Commodities
Referenced Symbols: AAL , RIO


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