DUBAI, 24 April 2007 — The experts who attended the fifth City of Gold Conference at the Park Hyatt in Dubai yesterday have called on the gold and jewelry industry to radically revamp its marketing strategy to ensure the sector’s survival in the region and around the world.
Establishing new emotional consumer connects is a critical driver for the region’s diamond industry,” Anan Fakhreddin, Gulf regional director for the Diamond Trading Company (DTC), stressed during the marketing session of the conference.
To combat the increasing threat from luxury goods, gold and jewelry must be positioned as a single lifestyle category than by individual stones and metals, and must build strong emotional connects for consumers, industry analysts told conference attendees.
Philip Olden, managing director, marketing & jewelry for the World Gold Council, said the new approach is imperative. “The how and why of gold marketing needs to change to face up to increasing pressure from unexpected areas,” Olden said.“Today more than ever before, we have to compete for discretionary income. We must increase consumer desirability by changing our marketing tack. Gold needs to have a relevant brand image, emotional connect, premium pricing and differentiation. We have not done this well enough.”
Countries that have implemented the World Gold Council recommendations have outperformed those where the Council is inactive, Olden added.
The bridal diamond sector in Saudi Arabia was valued at $400 million in 2006, with one in three brides opting for diamonds during the engagement/wedding process.
Of the $400 million, diamond sets account for $290 million, with an average set costing $8,000. The remainder is spent on individual pieces, with an average price of $1,650.