IDI Educating Hearts and Minds as it Moves into India

During his talk, he repeatedly came back to the need to educate consumers to buy more diamonds as a primary aim of the IDI. Beginning with a review of the past year, Avidar told assembled journalists that despite the many challenges facing the global industry in 2007, Israel had achieved a record year regarding trade in polished goods, with exports reaching more than $7 billion.

Avidar also described some of the activities of the IDI in 2007, including the opening of an office in Hong Kong in July. This office, he said, has enabled 50 companies without a base in China to operate in the region. Despite their presence in the country, Avidar said the goal of moving into China was not to focus on the purchase of diamonds, but rather on “the need to educate the Chinese consumer to purchase diamonds.”

This year, the IDI will be doing this via the launch of a marketing and advertising campaign specifically created for the Chinese market.

One point of criticism Avidar made during his speech was directed at the increasing number of trade shows in the business, especially in China. “We have expanded our participation in existing trade shows and are exhibiting at trade shows in new markets, such as Shanghai, Shenzhen and Macau. Of course, Macau as a trade show location still requires fine-tuning,” he said.

“New trade shows in the China area seem to sprout up every day, but the fact is that the market is not expanding accordingly. Once again, the error is being made of pushing to sell diamonds rather than educating the market to consume more diamonds.”

Avidar also said that the industry is waiting for the Chinese government to abolish its tax on diamonds. “Once the taxes are rescinded,” he said, “the gateways will be open for the Chinese diamond industry.”

Although it is maintaining its focus on China, in 2008, the IDI is looking to expand its activities in India and is seeking ways to cooperate with Indian diamantaires. As part of this expansion, an IDI pavilion will premier at the IIJS Show in Mumbai.

“We are looking at India as a consuming market,” said Avidar. “While we compliment our colleagues from India for tapping into the U.S. market, we believe that there is room for the same cooperation in the Indian market as well.”

The press conference concluded with a panel presentation by three Israeli companies that have created successful marketing niches by focusing on the luxury product market.

Nathan Korn, vice president of Korn Diamonds, spoke about supplying diamonds made-to-precise calibrated measurements and angles to the watch industry; Lior Eshed, general manager of Gemstar and Eshed Diam Ltd, talked about the company’s move into supplying bigger, higher valued stones, while Amihai Zivan-Sussholz, polished division manager of YEI, spoke on the subject of transparency and the new world of diamonds.