The story of DeBeers

7/29/2019 The story of DeBeers

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The story of DeBeers


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The beginning

Diamonds were found in the riverbeds in India and the jungles of Braziland worn only by royalty

Huge diamond mines discovered in

1870 near the Orange river, SouthAfrica

The major investors merge theirinterests into one single entity that

controlled production and perpetuatedthe scarcity of diamonds


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The beginning

The entity was called De Beers

Consolidated Diamond Mines headed

by Cecil Rhodes

It proves to be the single largestsuccessful cartel arrangement in

modern commerce


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The flood

Diamonds had little intrinsic value and

their price depended upon the scarcity

The new mines would flood diamonds

in the market and as a result thediamond would become a semi

precious gems


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Monopoly

Create a perceived need

Convert tiny crystals of carbon into

universally acclaimed tokens of

wealth, power, and romance.

Control the demand and supply

Men and women were made to

perceive diamonds not as preciousstones but as an inseparable part of

courtship and married life


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Creating the illusion

De Beers had to endow these

stones with a sentiment that would

inhibit the public from ever reselling

them.

The illusion had to be created that

diamonds are for ever

That they are never to be resold


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Meeting with the image makers

In 1938, Harry Oppenheimer met with

Gerold Lauck president of the advertising

agency in New York N W Ayers

The agency was to prepare a plan forcreating a new image for diamonds

amongst Americans


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Europe

In Europe diamond prices has collapsed

during the depression

In England and France the diamonds were

perceived to be the jewel for aristocratsrather than masses


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Pioneering persuasion

The agency suggested that a well

orchestrated advertising campaign could have

a significant impact on the social attitudes of

the public at large and thereby channel the

Americans towards larger and more expensive

diamonds instead of competitive luxuries


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The hook

The study revealed the need to

strengthen the association of romance

with diamonds since young men buy

over 90% of all engagement rings

It was crucial to inculcate in them the

idea that the diamonds were a gift of

love.

The larger and finer diamonds, greaterthe expression of love.


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The hook

Young women had to be encourage to

view diamonds as an integral part of

any romantic courtship

The agency suggested strongly toexploit the new medium of motion

pictures

Movie idols the paragon of romance

would be given diamonds to use astheir symbol of indestructible love


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Marilyn Monroe


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Roll out of the plan

The link of diamonds and romance was

reinforced through stories and photographs

in magazines and newspapers

Photographs would show celebrities withglittering diamonds on their fingers

The British royalty would be used to foster

the romantic allure of diamonds


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Roll out of the plan

Painting by Dali,

Derain and Duffy

were reproduced to

mould elite opinion

that diamonds were

like paintings a

unique work of art


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The psychological approach

To strengthen the tradition of the

diamond engagement ring and to

make it a psychological necessity

(perceived need)

By influencing the opinion of 70

million people above 15 years of age

To create role models for the middle

class wage earner


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Coverage of celebrities displayingdiamond rings as symbols of romanticinvolvement

Description of diamonds worn by movie

stars

An advertising campaign with the wordsa diamond is forever below a picture oftwo young lovers on their honeymoon

expressed the theme of romance andlegitimacy


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Image courtesy of The Advertising Archives


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Informal lectures in schools about

diamond rings

Hollywood personalities a weekly

service that provided information withdescription of diamonds worn by

Hollywood stars


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The idea was to create prestigious

"role models" for the poorer middle-

class wage-earners. The

advertising agency explained, in its

1948 strategy paper, "We spread

the word of diamonds worn by starsof screen and stage, by wives and

daughters of political leaders, by

any woman who can make the

grocer's wife and the mechanic's

sweetheart say 'I wish I had whatshe has.'"


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Success

In 1941 the advertising agency reported

to its client that it had achieved

impressive results, 55% increase in the

sale of diamonds


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Documents

The story of DeBeers