On September 3, as part of the program of the Eastern Economic Forum (EEF) in Vladivostok, ALROSA hosted a session “New Development Drivers of Global Diamond Business in Asia Pacific”. The session was devoted to the current state and future prospects of the diamond industry.
Representatives of major industry organizations - Ari Epstein, CEO of Antwerp World Diamond Centre; Vipul Shah, Chairman of Gem & Jewellery Export Promotion Council (GJEPC); Ernie Blom, President of World Federation of Diamond Bourses - took part in the discussion. The diamond manufacturing and jewellery segments of the business were also represented and contributed to the discussion.
The participants discussed the reasons of global diamond market weakening such as macroeconomic factors, slowdown of diamond jewellery demand, problems of financing and manufacturing business profitability. Speaking at the session President of ALROSA Andrey Zharkov mentioned that within the existing circumstances it is necessary to uphold responsible and balanced position aimed at stabilizing market situation. For its part, ALROSA lowered rough diamond prices by 6% since the beginning of the year and cut supply volumes at the latest trading sessions in accordance with market environment.
Andrey Zharkov drew attention of the participants to the fact that it was necessary to bring back the programs focused on the promotion of polished diamonds as an emotional symbol to stimulate consumption. “Having given up generic diamond promotion some fifteen years ago, today our industry faces first negative signals. At this time we – practically all major diamond producers – have established a Diamond Producers Association (DPA). Its main line of activities will be development and implementation of marketing programs, as the future of our industry directly depends on what new generations will see in the diamond”, Zharkov said.