Diamonds are a symbol of love and preciousness, but in reality, it has become a shameful industry. Over the past few decades, the diamond industry has been accused not only of bloody problems, but also of declining sales and falling prices.
An eldest sister in Anhui was full of joy and took the diamond ring she bought for 18,000 more than 10,000 years ago to recycle, and the boss offered 180 yuan. Netizens sharply commented: This is still the money given by the ring.
In the diamond industry, De Beers has a monopoly that controls 90% of the world's diamond resources. By forcibly associating diamonds with love, they succeeded in creating a commercial myth that "diamonds last forever, one lasts forever". In this way, the "IQ tax" of hundreds of years of newlyweds around the world was harvested. The phrase "A diamond is forever" has been voted the greatest slogan of the 20th century, and it has also been accused of being the most brilliant marketing scam of the 20th century. However, this myth is gradually dispelling.
The price of diamonds has fallen significantly, especially after the coronavirus pandemic in 2020. Some diamond brands have struggled, and star brand I Do, declared bankruptcy at the beginning of the year. DR, an emerging brand supported by thousands of girls, has also seen its business dismal this year, with first-quarter revenue down 42% year-on-year and net profit plummeting 73%. This is due to a number of factors, including the loss of scarcity and recycling value of diamonds. At the same time, artificial diamonds made in China are gradually seizing market share in the international market, impacting the traditional diamond industry.
Now, open an e-commerce platform casually, dozens of free shipping diamonds grab a handful, a hundred can buy a basket. This is thanks to our fellow villagers in Henan, one out of every 2 jewelry-grade man-made diamonds in the world comes from Henan. Seeing that the international diamond price was knocked down by Chinese manufacturing, De Beers couldn't sit still! In 2015, the slogan was changed to: Real is rare, real is diamond. In order to combat man-made diamonds, he even spent more than 40 million US dollars to painstakingly develop a "man-made diamond grader". Many people mistakenly think that lab-grown diamonds are fake diamonds, but in fact, they are real diamonds. In 2018, the U.S. Federal Trade Commission revised the definition of diamonds to remove the word "natural." Scientifically speaking, natural diamonds and artificial diamonds are no different, they are diamonds.
Now, we use seed wafers and methane to make artificial diamonds, and each gas tank can grow a diamond the size of a carat in a week. Not only the output is the first, but the process level is also beaten by other countries.
In addition, the diamond industry used to have a bloody problem, also known as "blood diamonds". In the process of diamond mining in Africa and other regions, there has been a problem of exploitation by labor and the destruction of civilization. Although the diamond industry has now taken a series of measures to avoid these problems, such problems still affect the reputation and image of the diamond industry.
In this context, the business model of the traditional diamond industry is no longer suitable for the current market environment. According to Brand Finance, a new brand valuation agency, De Beers' brand value fell 22% in 2021. In the first half of this year, profits plummeted by more than 60%, and it had to discount its mainstream products by six. He used to sell $2,400 for a 1-carat diamond, but now it's down to $850, a 65 percent drop in price, but still not anyone buys it. However, it was not just De Beers who was injured; the entire diamond market began to languish. The international diamond price index, which fell from 158 last year to about 110 this year, hit a new low in nearly 5 years, a decline of almost 30%. And the price of lab-grown diamonds is even more volatile, with the continuous advancement of technology, the price has dropped again and again. As one industry insider put it: "Maybe if you buy soap in the future, you may give diamonds." "And globally, the diamond industry is undergoing significant change.
In short, changes in the diamond industry herald an era of market restructuring. The industry needs to re-regulate and develop better ethical and environmental standards, as well as trade rules to adapt to the needs of a changing market.