IDMA President Ronnie VanderLinden message 09.01.2018: Some of us have soldiered on during the holiday vacation period, but most of us, wherever we are on the globe, have taken a short time-out.

Some of us have soldiered on during the holiday vacation period, but most of us, wherever we are on the globe, have taken a short time-out.



Here in the USA, a large part of the country was literally grounded by an extreme cold  spell and some harsh weather. Together, we will make sure this does not reflect our industry's temperature in the coming months!
 


2018 will most likely be a very challenging, but also a very exciting year! I had a chance to look at some of the end-of-year commentaries, and also at some of the forecasts. Most of the comments and forecasts concerned the retail sector, and most of them were guardedly optimistic. So am I!! But then again, if you're in this business, you are most likely an eternal optimist like me! 
 


In the midstream, that is the manufacturing and trading sector, we will see most likely a continuation of the current market trends. The large rough diamond producers will continue to streamline the delivery of their product in what I'd call a 'pin point' marketing fashion, thus not only maximizing their income (which we all should be doing) but also assuring that their clients needs will be met.



After all, the producers do understand that a proper balance between rough diamond and polished diamond prices are key for the industry's long-term health, not only for the mid-stream, but also for the downstream demand. At the same time we are confident that part of their rough inventory will continue to be sold by auction and tender, allowing both the producers and purchasers to gauge the market.



I do, however, expect producers to try and increase their efforts in allocating their rough supply to parties they have long term relationships with. While the sales system and methods may have changed names, for the producers, a steady stable of buyers who are good for their word always has had their preference, as it would ours.


What could be of great help in these difficult financing times, and many of our colleagues would like to see changed, is their cash on delivery policy. It certainly would help if the producers could bear part of our financing. 
 


However, the most important challenge that awaits both the upstream and midstream is today's consumer.
 


Have the current messaging boards done their job? Will the Diamond Producers Association (DPA) hit their target in 2018?



Let's hope so!!
 

I truly believe that by now, the powers that be out there understand the western consumer with all the outreach and surveys they've done. We want the consumer to realize that we, as an industry, are doing right by our product.



Our diamonds will appeal to the consumer for all the right reasons. In turn, they will feel great about their purchase, knowing that diamonds make a difference in their lives and the lives of so many throughout the world, from mine to market.



Therefore, we can all  be assured straight down to the consumer, that the diamond purchased, is a labor and commitment of love! To borrow the Diamond Empowerment Funds' tag line, DIAMONDS DO GOOD!


Oh yes they do!
 
Martin Rapaport, in his New Year message said this: "It's not just the distribution system that is changing. It's the people. New generations of Western consumers are questioning the value and values of diamonds. Authenticity is the new currency in a world where everybody sees everything everywhere.



"Me" generations have become "We" generations in an electronic society of endless social interconnectivity. Who you are, what you are and why you are, are important questions in a universe of social responsibility. Herding millennials are growing out of their groupthink and beginning to seek their own authentic positive identity. They will be among our best customers.



2018 will be a great year for those that integrate change with prosperity. External economic forces will provide a background of economic development, while a rapidly changing consumer social environment will open and close doors of opportunity.



While supply-side profits will remain tight, those that understand and anticipate the needs and desires of their customers will prosper. The secret to success will be to transcend the product to the customer. It's time to stop selling products and start selling customers."



- IDMA also photo