Mined diamond market slowdown is affecting not just diamond miners but businesses across the value chain. Realizing this, De Beers is an unprecedented move is allowing its Sightholders to reject more diamonds when they meet next week for the seventh sight, out of ten, of the year. Apart from option of rejecting more than half of stones less than 0.75 carats, Sightholders will also get an option to sell back some diamonds to De Beers with some terms. At the consumer facing end, jewelry retailer are trying new routes to fend of the diamond market slowdown. Though despite the crisis, many players are still not ready to reduce the prices.
Tiffany says Diamonds are men’s best friend too
While diamonds and jewelry are considered largely as women’s arena, to add more revenue streams and offset the slowdown in typical market, Tiffany & Co. is going to launch its first comprehensive men’s jewelry collection in October this year. Though few things like money clips, cuff links, rings etc. were sold for men too, this new men’s jewelry collection will have more than 100 designs and will range from $ 200 to $ 15,000. This collection will be launched in Tiffany’s 300 stores and will have its own dedicated floor space. According to Euromonitor, albeit much smaller than the women’s fine jewelry market at $ 33.2 billion, men’s fine jewelry market has grown 23 percent from 2013 to $ 5.8 billion last year.
Pandora to relaunch, with help from Harry Potter
Copenhagen based Pandora suffered setbacks in many markets recently and came under ire of its investors. The jewelry retailer has thus started a two-year restructuring plan called ‘Programme Now’, which includes a brand relaunch, increasing marketing spend and removing slow-moving items. This restructuring exercise is expected to cost the company $ 224 million.
Pandora is planning to buyback $ 75 million worth of jewelry from jewelry retailers in select markets, to avoid the latter getting stuck with slow-moving goods. The inventory bought back will then be smelted with new jewelry items to be made.
On 28th August, the company is also planning a brand relaunch in LA, where it will reveal its new purpose, brand expression and visual identity, apart from showcasing its Autumn 2019 collection. While the company already has an agreement with Walt Disney to sell Disney themed products across the world, Pandora is tying up with Harry Potter franchise, signing a contract with Warner Bros. to sell new Harry Potter themed 12 new products including charms, pendants and bracelets from November this year.