In the world of diamonds, there are few consumer markets that shine as brightly as Thailand.
Along with the country’s tremendous economic growth over the past decade, has come a similar rise in the purchase of diamonds. By the end of 1993, Thailand’s love affair with the diamond had reached a point where the country was the world’s sixth-largest purchaser of diamond jewelry (by diamond value), with a total of $297 million spent.
“Thais are very discriminating,” says James Courage, De Beers marketing representative for the Far East. “They want the best. They believe in the beauty of the diamond, and a quality stone sells very well in the consumer market here.”
The country’s incredible growth as a diamond-consumer is just one feature in a booming Asian market that has caused De Beers to turn its attentions (as well as its advertising dollars) from traditional focus points in Europe to the Far East.
Says Courage: “Your look at the size of the market, you look at the potential for growth in that market, and you look at the cost of doing business in that market. And when you do that, you see that East Asia has clearly moved up, and certainly over the past few years, Europe has moved down.”
While De Beers will maintain its advertising budget for major markets like Italy, funds are being diverted from other stagnant European markets to leading Asian diamond-purchasers like Korea, Taiwan and Thailand, as well as emerging markets in population centers like China and Indonesia.
Across the region, Courage says, advertising budgets have been increasing on average of 20 percent per year “in real terms”—meaning, after the cost of media inflation has been factored in.
In Thailand, De Beers is currently running three main campaigns—which the company terms an “image” campaign, a “rites of passage” campaign and a “lifestyle” campaign.
The image campaign is a general campaign targeted at all adults aged 18-54 who are able to afford diamond jewelry. Says Courage, “It’s out there to remind people about the diamond, its mystique, its emotional properties, and its physical uniqueness.”
The company’s stylish new “Shadows” television spot, created in conjunction with J. Walter Thompson/Thailand, is part of this campaign.
The second campaign is the rites of passage or “Lifestage” campaign. This is broken up into several different categories, of which the most important is the diamond engagement/wedding ring campaign. This is often a consumer’s first significant diamond jewelry purchase and high acquisition rates—as in the USA and Japan—have provided the foundation for very significant jewelry markets in the longer term.
According to De Beers market research, 28 percent of all brides in Thailand’s urban areas receive diamond rings on their wedding day. An increasing number of men are also receiving diamond rings.
“The men’s market is bigger than it might appear,” says Courage. He estimates that a fifth to a quarter of local diamond sales are made for men.
In addition to weddings, De Beers is also promoting diamond purchases for birthdays, graduations and is working to establish a market for celebrations of the 10th wedding anniversary.
The third sets of campaigns are termed “Lifestyle” and are represented in Thailand by the “Diamonds for Modern Women” and “Diamonds of Distinction” campaigns.
“Diamonds of Distinction” is also known as the “Prestige” campaign and is aimed at wealthier, older consumers to promote sales of larger diamonds, two carats and up.
On the other hand, “Diamonds for Modern Women” is a television and print campaign aimed at young women aged 18-34, who have an income that enables them to purchase diamond jewelry.
“They’re working, and they’re probably living at home, sot heir expenses for day-to-day living are relatively low,” says Courage. For this reason, courage feels that this group is a ripe market for expanding Thailand’s value of diamond sales, which in the past have been heavily influenced by purchases of big stones by the country’s elite.
The “Diamonds for Modern Women” campaign is supported by jewelers, primarily those based in shopping malls, and features affordable diamond jewelry designs priced between Bt9000($360) and Bt29,800 ($1,192).