Diamonds: Selected Information
KT

AHEAD of De Beers' sale of sight next week, questions are being asked about the company's strategic direction.

De Beers' Diamond Trading Company (DTC) has been hard-hitting in rebutting suggestions it has lost its strategic focus.

Dozens of sightholders, or customers of the company, contend that the company's supplier-of-choice model - aimed at driving demand and "de-commoditising" diamonds through marketing and branding initiatives, is misguided and is not working. De Beers has responded by sending packets of information to sightholders, in which it defends the model.

At the same time it has effectively forced sightholders to set up manufacturing operations in southern Africa and support empowerment by linking up with local partners, the same requirement De Beers itself is being criticised as being too slow in implementing.

Whereas supplier of choice has helped raise awareness for diamonds, it may have been less successful in meeting other key goals.

Some market players have questioned the advantage of creating awareness of diamonds, when there is a clear shortage of rough stones.

De Beers has hastily sold down its stockpile to pay for its privitisation, and there are no prospects of any new sizable diamond mines in the near future.