Antwerp Diamond Conference – Day One

The opening day of the Antwerp Diamond Conference kicked off with one of the industry’s leading bankers telling the audience of some 600 industry players that now is not the time to ‘schofarberer’ – paint a somewhat rosy picture of a somewhat bleak landscape.

Peter Gross, global head of ABN Amro Bank’s Diamond and Jewelry Division, noted that the industry’s banking indebtedness had risen over by $2 billion since 2000, now standing at $8.663 billion compared to $6.11 billion.

Gross stressed to the packed auditorium in Antwerp’s Provincehuis that the lengthy credit terms, excess polished inventory, artificially influenced prices of rough diamonds has resulted in a rapidly declining quality of debt.

“We need to return to business basics,” he urged. It’s time for long term strategies and a closer focus on the bottom line”.

In his opening remarks, Gary Ralfe, MD of De Beers, expressed “regret” for the distress caused in the industry over the implementation of Supplier of Choice. But, no surprise here, he repeatedly stated that SoC will ultimately prove a greater benefit to the industry as a whole.

Branding too came into Ralfe’s address, the De Beers MD even briefly mentioned the De Beers LV brand. By all accounts, the launch of the high-end jewelry line has not lived up to expectations. Sales are far below forecasts, the opening of the De Beers LV stores in Tokyo has proved to be less than successful and the company is currently running into problems with production.

Although De Beers is still pushing the brandwagon, many have decided that it’s time to get off the ride.