Greater China: DTC uses HK for global launch of quality drive

HONG KONG: Diamond supplier De Beers has selected Hong Kong as a testing ground for a new quality mark designed to make diamonds easier to buy and differentiate the supplier from rival firms.

Diamonds bearing a logo invisible to the naked eye, branded the Forevermark, have been on sale in selected Hong Kong jewellers from the beginning of the month.

If the Forevermark goes down well with Hong Kong buyers, the company aims to extend the initiative into China as a prelude to a global rollout.

Lavin Lam, Asia-Pacific business director of the sales and marketing arm for Diamond Trading Company (DTC), De Beers' sales and marketing arm, said Hong Kong was chosen because it is a compact and mature market for luxury goods.

The territory is Asia-Pacific's second largest diamond buyer, representing 15 per cent of the region's sales.

The Forevermark launch is supported by a HK$30 million (US$3.8 million) marketing push, aimed at a core target of 25 to 44 year-old women.

TVCs developed by J. Walter Thompson, advertising partner for DTC, will run until the middle of next year on Hong Kong's terrestrial channels TVB Jade and TVB Pearl.

The concept of the ads - that choosing a stone with a Forevermark enables a woman to became an expert buyer of diamonds - was developed by JWT's office in Taiwan, although the idea was executed by JWT's global business unit for DTC based in London.

DTC held an internal pitch among JWT's offices, which has around 60 staff working on the diamond business, to come up with the idea.

DTC is also running print ads, mainly in weekly and monthly female interest magazines, outdoor ads on video billboards and on Hong Kong's subway system, along with a trade campaign aimed at retail partners.

MindShare managed media while local Hong Kong firm Igoo Communication handled below-the-line elements of the promotion.

Many jewellers have unveiled distinctive instore layouts designed with the support of DTC, which has been working with retailers to stimulate the diamond market.

DTC also spent $1 million on training programmes for staff within the six jewellers and will award the 10 most successful staff at a special event in January in a bid to further boost sales.

"We want to stimulate the trade to become active in driving consumer consumption," DTC's Lam said.

Worldwide, the DTC spends US$178 million each year in advertising, publicity and brand promotion to support the diamond jewellery trade. Japan is by far Asia-Pacific's biggest purchaser of diamonds, clocking up over half of the region's sales. China is currently the third largest market for diamonds in Asia-Pacific, accounting for 12 per cent of sales.

Taiwan is fourth at eight per cent.

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