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07-19-11, 12:03 AM
How De Beers transformed diamonds into a symbol of love.
“I’m continually amazed at the high price of diamonds, essentially rocks. So I looked into it…. Basically, ever since the late 1930s, people have been beautifully ********d by De Beers into thinking marriage = diamond.”
— David Ray Carson, a graphic designer from Minnesota.
(Priceless :haha:)
In 1938 the De Beers mining cartel signed an exclusive agreement with N.W. Ayer, an American advertising firm — and one of the most brilliant advertising and public relations campaigns was born. De Beers, N.W. Ayer, and J. Walter Thompson (an advertising and public relations firm that joined the team in the 1960s) transformed diamonds from marketable gems into symbols of love, glamour, and success — while forever linking them to courtship and married life.
The truth about diamonds
Contrary to popular opinion, diamonds can shatter, crack, discolor, and lose value. And they are not rare. In fact, diamonds have been plentiful since 1870, when huge deposits were discovered near the Orange River, in South Africa. [/URL] Diamonds are now mined in several African countries, as well as in Russia, Australia, and Canada. At first, De Beers controlled 90 percent of the diamond market and, by controlling supply, was able to maintain the illusion of scarcity — and keep prices high. Now De Beers controls about 66 percent of the market. (http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#3) The newer players have not challenged De Beers’s artificially inflated prices, however, as they benefit from them too.
The diamond market is changing rapidly, but De Beers still dominates. In 2001, its ADiamondIsForever.com website got 200,000 visitors a month. Visitors spent about 20 minutes browsing the site, and most were from the target market: women, 18 to 34 years old. And although the U.S. Department of Justice has challenged De Beers’s business practices — there is an outstanding indictment against the company from a 1994 price-fixing case [URL="http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#13"] (http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#12) — it is difficult to challenge its approach to communications.
SOURCE (http://web.archive.org/web/20050224093636/www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm)
Interesting read, check link for the rest of article.
Of course we all knew that jewellery in general is a ripoff, right? Right?
300-500% markups. I'll take 3 thanks.
“I’m continually amazed at the high price of diamonds, essentially rocks. So I looked into it…. Basically, ever since the late 1930s, people have been beautifully ********d by De Beers into thinking marriage = diamond.”
— David Ray Carson, a graphic designer from Minnesota.
(Priceless :haha:)
In 1938 the De Beers mining cartel signed an exclusive agreement with N.W. Ayer, an American advertising firm — and one of the most brilliant advertising and public relations campaigns was born. De Beers, N.W. Ayer, and J. Walter Thompson (an advertising and public relations firm that joined the team in the 1960s) transformed diamonds from marketable gems into symbols of love, glamour, and success — while forever linking them to courtship and married life.
The truth about diamonds
Contrary to popular opinion, diamonds can shatter, crack, discolor, and lose value. And they are not rare. In fact, diamonds have been plentiful since 1870, when huge deposits were discovered near the Orange River, in South Africa. [/URL] Diamonds are now mined in several African countries, as well as in Russia, Australia, and Canada. At first, De Beers controlled 90 percent of the diamond market and, by controlling supply, was able to maintain the illusion of scarcity — and keep prices high. Now De Beers controls about 66 percent of the market. (http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#3) The newer players have not challenged De Beers’s artificially inflated prices, however, as they benefit from them too.
The diamond market is changing rapidly, but De Beers still dominates. In 2001, its ADiamondIsForever.com website got 200,000 visitors a month. Visitors spent about 20 minutes browsing the site, and most were from the target market: women, 18 to 34 years old. And although the U.S. Department of Justice has challenged De Beers’s business practices — there is an outstanding indictment against the company from a 1994 price-fixing case [URL="http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#13"] (http://web.archive.org/web/20050224093636/http://www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm#12) — it is difficult to challenge its approach to communications.
SOURCE (http://web.archive.org/web/20050224093636/www.zacheverson.com/Op-Ed/Business/diamonds_are_for_suckers.htm)
Interesting read, check link for the rest of article.
Of course we all knew that jewellery in general is a ripoff, right? Right?
300-500% markups. I'll take 3 thanks.