De Beers, the renowned diamond company, has declared the discontinuation of lab-grown diamond production within the Element Six division. Instead, the focus will turn towards natural diamonds as part of their new ‘Origins’ strategy.
The aim of this strategy is to accentuate the genuine beauty and singularity of natural diamonds that have been forming over billions of years. The Element Six branch will now concentrate on its industrial applications instead of jewelry-related pursuits as a means to bolster the appeal and preserve the legacy of natural diamonds.
The strategic move was influenced by the decision made by Anglo American – De Beers’ parent company – to divest the diamond company. This impact forced De Beers to revise its direction towards growth and innovation with the intention to flourish despite the divestment.
‘Origins’ is more than a business strategy; it is a showcasing of diamonds as luxe collectibles, beyond their status as mineral resources.
Shifting towards natural diamonds: De Beers’ strategy
Through this concept, diamonds become an emblem of grandeur and charm, perpetuating their position in the luxury market.
The concept of ‘Origins’ should prove beneficial for both the corporate entities and the Government of Botswana, which currently owns 15% interest in De Beers and plans to increase this investment. The Origin strategy grants Botswana an opportunity to extend its grip within the diamond industry, potentially aiding the country’s economic growth and diversification efforts.
Despite persistent efforts to enhance performance and the implementation of ‘Origins’, De Beers has suffered a dip in sales this year, with a 20% decrease in the 4th cycle of rough diamond sales and a further reduction of 23% in the first quarter of 2023. This testifies to the broader challenges the corporation faces in the ever-changing market.
Nevertheless, De Beers remains committed to natural diamonds, evident in their significant investment in natural diamond mines, navigating the challenge of dwindling resources through bolstering production capabilities. This strategy reveals their belief in the long-term growth of demand for natural diamonds and the consistent allure they hold.
