Diamond manufacturers must develop their businesses online in order to adapt to the digital transformation of the industry, wrote Ronnie VanderLinden, president of the International Diamond Manufacturers Association (IDMA.)
“On the whole, the good news is that contrary to our apprehensions, the diamond, gem, and jewelry industry and trade performed relatively well in 2020,” he wrote in a newsletter to the trade on January 31, 2021.
“Industry specialists, such as Paul Zimnisky and Edahn Golan, among others, have all pointed out the current ‘bounce back’ the diamond industry is experiencing, with price levels coming close to those before the pandemic. That is indeed encouraging.
But don’t think for a minute that our industry will revert to the pre-pandemic business models.”
The key for manufacturers going forward will be to transform their businesses digitally to adapt to rapidly changing market conditions, VanderLinden added.
“Who would have thought – just one year ago – that diamond manufacturers would actually even consider buying rough online, without touching the goods and examining the stones with their own eyes? But, not only did they consider it, they successfully bought rough, produced it, and in the next round came back for more. Throughout the diamond supply pipeline, we’ve seen businesses adapt, increase and beef up their online abilities and presences.
“In our niche of the business, i.e., diamond manufacturing
and trading, it is imperative that we continue to adapt. Not only must our individual businesses have online capabilities, but we also need our own, local, online platforms that enable us to communicate, share information, and most importantly, trade with each other. In practice, we need to be able to knock on one another’s digital doorjamb and ask, ‘Hey, do you have a 1.30. PS, commercial, SI-1-2?’ Far and wide, the call will be heard!”