It’s the highest budget since 2008.
De Beers Group announced it will invest more than $140 million in marketing this year – its biggest spend since 2008.
The increased investment will be focused on generating further consumer demand for diamond jewelry in leading markets globally, with the greatest spend targeted in the U.S., China and India, the company said in a press release.
Most of the investment will support De Beers’ proprietary brands: Forevermark and De Beers Diamond Jewellers. But the company also said it will increase its spend on partnership marketing, including with the Diamond Producers Association and India’s Gem and Jewellery Export Promotion Council.
"Total consumer expenditure on diamond jewelry for the last five years collectively has been the highest on record – and the outlook is positive," said Stephen Lussier, De Beers Group’s executive vice president of marketing and CEO of Forevermark. "However, we cannot take future growth for granted. Increasing our spend from a strong position will help support continued demand in both mature and developing markets, particularly among millennials, who are already the largest group of diamond consumers despite this generation not having yet reached its maximum earning potential."
World Federation of Diamond Bourses President Ernie Blom issued a statement praising De Beers' plans.
"Taken together with the DPA's decision to increase its diamond jewelry promotional budget this year to $57 million, we are seeing very significant action in promoting diamonds in key markets," he said. "The diamond industry globally can take heart from these decisions as they will serve to boost demand."
He noted that although De Beers intends to spend most of the money on its own brands, "all advertising is good for the wider diamond trade since it has a positive ripple effect."
The Diamond Producers Association in June announced a 2017 marketing investment of $57 million. The total more than quadruples last year's budget, the group said.