Leviev: Supplier of Choice is Leading to Badly Planned Marketing

The room was packed with delegates eating their lunch and eagerly awaiting the arrival of Lev Leviev. The diamond magnate was the closing keynote speaker of the two day couture diamond conference and obviously by the turnout at lunch, he was a key draw for many U.S. based high-end retailers.

They weren't alone in their anticipation of Leviev's entrance. Outside the Plaza Hotel in New York, the drums were beating and the chanting resounding across the park as union members expressed their anger against Leviev. Nothing to do with diamonds, rather what they feel are unfair wages and contracts for construction workers on Manhattan building development in which Leviev has a strong interest.

Inside the Plaza though all was quiet as Leviev took the podium to address issues facing the rapidly changing structure of today's global diamond industry.

Talking about the "the big picture not small things," Leviev expressed how recently the diamond industry has undergone immense change, "not for pure business reasons, but more due to the implementation of Supplier of Choice. We are seeing manufacturers reducing their business with wholesalers and spending a great amount of money on badly planned marketing and advertising." This, according to Leviev is not the way to go. "Wholesalers, I believe, play an important role in the industry and I am very worried about this situation. It's not smart business. "Partnerships," he continued "should be established due to economic considerations of companies in a healthy position - not because of pressure laid down by diamond producing companies," he added in a thinly veiled reference to the activities of De Beers.

Branding was also on the table as Leviev talked about his own brand - the Leviev brand. He wasn't talking about any diamond brand, rather his company's own mission - reliability, independence and a belief that relationship should be long-term.

As for diamond brands, he predicts that the flood of branded diamonds currently on the market will soon fade. "Today there are hundreds of diamond cuts and brands on the market and this is only leading to confusion amongst consumers. I believe in the future only a dozen or so strong brands will remain.”