Gareth Penny Speech to Sightholders

Speech by Diamond Trading Company Managing Director, Gareth Penny, to DTC Sightholders at a cocktail party on Tuesday January 11, during the Sight.

As we reflect back on 2004 and the challenges of 2005, I want to share with you some of the work that the new DTC leadership team is engaged with, and the strategic goals we are focused on.

Our first main goal remains the creation of consumer demand for diamond jewellery, the ultimate arbiter of our business.  We all remember the 90’s when consumer demand for diamonds was declining, and we all understand what that does to our businesses.   In 2002 we saw a two per cent increase in consumer demand world-wide, in 2003 a four per cent increase, and in 2004 we are hopeful of seeing a figure of five or six per cent, or even higher.  All of us here can take great pride in that achievement.  

And so, as we look forward to 2005, we will again have as our focus, driving consumer demand for diamond jewellery and we will stand with you shoulder-to-shoulder to achieve that goal.  Stephen and his team have been working hard and putting into place the marketing programmes to achieve our growth goals.

Our second great challenge for 2005, is going to be continued maintenance of consumer confidence in our product.  The steps we have taken in 2004  include the BPP programme, the detection technology that Martin Cooper and his Maidenhead colleagues have been developing, and piloting the Forevermark in Hong Kong.  Maintaining consumer confidence will continue to be a key focus in 2005.

The third workstream that Des Cavanagh is driving, is Purchaser of Choice – ensuring DTC is the preferred marketer of diamonds for our producer partners.  As we need to be your Supplier of Choice, so DTC needs to be Purchaser of Choice for our producers.  Alan Campbell (Director of Pricing and Supply Chain Management), and Brian McDonald – Director of Sorting, are also driving important elements of our ‘producer offer’.

And that takes us on to our fourth workstream – Supplier of Choice, for which Varda is responsible.  We believe there has been much progress across many different workstreams in 2004 and that we are indeed your Supplier of Choice.

Varda is building around her an extraordinary team of dedicated people and is proving to be a sales director par excellence for the DTC.  The enhancements to Supplier of Choice she has communicated this week are largely in direct response to the suggestions and requests we have heard from our clients – longer contract periods, data verification, profile light in ‘in between’ years, and value added services.

And that takes us to our fifth strategic goal, which is to ensure we are the employer of choice for our employees.  We are looking at ways to ensure we have a more effective organisation with highly-motivated men and women.

And our last is to ensure we generate appropriate returns for our shareholders.  Achievement of these goals will ensure we are delivering value to all our stakeholders – you, our customers, consumers, producers, our employees and our shareholders.

In conclusion – as we look back over 2004, it has been a successful year.  I, like Gary and Nicky, am optimistic about 2005.  I firmly believe in this extraordinary product, and hope to be able to say next year, that, yes indeed, 2005 was a wonderful year.

Ladies and gentlemen – enjoy your evening.