GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

20 september 2021

Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

ALROSA has found its own organic market strategy, which gained confidence on the part of investors

09 september 2014

In his interview to the Kommersant Vlast Magazine, Vice President of ALROSA Andrey Polyakov, talking about the situation in the diamond market, said that the single-channel marketing system established by De Beers passed away in the early 2000s, but the market is still controlled by several biggest players.
The specificity of the diamond market is that it is not trading a commodity like gold or platinum, he said. "We had quite a lengthy and frank discussion with the Federal Antimonopoly Service concerning the diamond marketing strategy pursued by ALROSA. We came to an understanding that when you sell an item that may be necessary to a person once in her or his life and this item is not a commodity and at the same time you have to bear costs comparable with any mining project, then of course you have to understand exactly your customers, so you can plan sales and investments."
According to the manager, the market is mainly governed by the fact that there were no new diamond fields discovered during the last 15 years, while diamond consumption in major markets is evident. "By focusing exclusively on its core business, diamond mining, and switching over to underground operations ALROSA, I think, has found its own organic market strategy. This gained confidence on the part of investors, who bought shares in ALROSA last year," he said.
Talking about the company's plans, Andrey Polyakov recalled that last year the company’s sales reached almost $ 5 billion for the first time in its history. He stressed that it is better to follow a conservative strategy in the diamond business. "For a century, major mining companies were not too enthusiastic of vertical integration. Mining, management of diamond prices, diamond cutting and jewelry retail are different spheres of human activity," he said, adding that ALROSA plans to develop diamond manufacturing as a business, but will do so conservatively, providing there will be guaranteed long-term sales of polished diamonds.
He reminded of the very bad experience in the 1990s and the early 2000s dominated by the campaign in favor of the so-called domestic diamond manufacturers, who were actually engaged in re-selling rough diamonds in Antwerp, Tel Aviv and India resorting to some dubious schemes. "Therefore, for some time the words "to support diamond cutting" were associated with direct losses in the company," he said.
"Today the situation is completely different. Today we are the largest producer of diamonds in the world, a public company with a clear, understandable procedure for market sale of our goods. Today, large-scale retail is interested to talk about the guarantee of origin and quality of diamonds and enters into direct negotiations, including our company," Andrey Polyakov said, noting that only direct contracts between diamond manufacturers and retail firms are turning the diamond cutting business to be a business and not another way to deal in rough diamonds, and many of the largest companies are searching for direct contracts with the mining industry, including ALROSA, to be sure of the immaculacy and origin of gems.
Talking about polished marketing, the Vice President of ALROSA said, "Now the functions of marketing diamonds were in fact taken up by jewelry houses. Mining companies are involved to a lesser degree due to high production costs. I can say that the new mechanism for marketing diamonds as such acting in the interests of the whole market, is just emerging. And we are working in this direction."
Referring to the idea of a diamond bourse in Russia, he pointed to Antwerp as a classic diamond center with the appropriate tax policy, lending and trading infrastructure and mentioned Dubai and Panama as new diamond centers. "When we say "a Russian diamond center," what do we mean to achieve – to make African diamonds be sold in Russia? Our customers buy Russian diamonds in Moscow and in Yakutia without it," the Vice President said.
Responding to a question about establishing a Territory of Priority Social and Economic Development (TOPSED) in Yakutsk specializing in diamond manufacturing, Andrey Polyakov said, "The idea of establishing a TOPSED should be discussed, but we have not seen the project yet. I don’t think that state incentives for diamond cutting will be productive without further understanding how the resulting gems will move. At the same time, it is correct to develop diamond cutting as a business. I think we will find this path: there is great interest on the part of large jewelry chains, which means that such a business is potentially possible."
Discussing the implications of sanctions, Andrey Polyakov pointed out that such sanctions may first of all affect the economy of Belgium: "But above all we must not forget the following: Russia is one of the founders of the Kimberley Process. By volume, we represent a quarter of all diamonds produced in the world. The Kimberley Process Certification Scheme is actually based on the experience of our system of government control. If suddenly a quarter of the world’s total diamond output will become, from the standpoint of the United States, illegal with all the ensuing consequences, it will be a painful shock to the whole market, which will directly affect all of its members, including the United States, also triggering destruction of the international monitoring system for the diamond turnover."