Covid-19: De Beers wants to reduce the price of its diamonds to stimulate sales
Hard hit by the Covid-19 pandemic, the De Beers group wants to make a 10% reduction on the price of large diamonds at its next sales session.
This transaction should stimulate the interest of its customers with the gradual recovery of the sector. On the occasion of its new sales session, the De Beers group will make a 10% reduction on the price of large stones offered to its customers.
According to information relayed by Bloomberg which quotes sources close to the company, the move is intended to stimulate the interest of buyers. The Covid-19 pandemic has indeed hit the gemstone industry hard due to restrictions imposed to combat the spread of the virus. Regular customers of mining companies were unable to come to the sales sessions and consumers deserted the jewelry stores.
For example, De Beers and his big rival, Russia's Alrosa, sold diamonds worth $ 130 million in the second quarter of 2020, up from $ 2.1 billion at the same time last year. However, the gradual recovery of the global economy as well as international flights coincides with somewhat stronger demand.
De Beers therefore intends to take advantage of this situation to improve its sales results, especially as some competitors are already practicing reductions of up to 25%, thus cutting its market share. While we have to wait for the company's next results to see the effect of this initiative, it should be noted that it is not the first solution considered by the Anglo American subsidiary in an attempt to limit the effects of the pandemic.
arlier this year, the company offered the Botswana state a relocation of sales sessions from the capital Gaborone to centers closer to its buyers such as Antwerp in Belgium.
Cassien Tribunal Aungane, Editor
This transaction should stimulate the interest of its customers with the gradual recovery of the sector. On the occasion of its new sales session, the De Beers group will make a 10% reduction on the price of large stones offered to its customers.
According to information relayed by Bloomberg which quotes sources close to the company, the move is intended to stimulate the interest of buyers. The Covid-19 pandemic has indeed hit the gemstone industry hard due to restrictions imposed to combat the spread of the virus. Regular customers of mining companies were unable to come to the sales sessions and consumers deserted the jewelry stores.
For example, De Beers and his big rival, Russia's Alrosa, sold diamonds worth $ 130 million in the second quarter of 2020, up from $ 2.1 billion at the same time last year. However, the gradual recovery of the global economy as well as international flights coincides with somewhat stronger demand.
De Beers therefore intends to take advantage of this situation to improve its sales results, especially as some competitors are already practicing reductions of up to 25%, thus cutting its market share. While we have to wait for the company's next results to see the effect of this initiative, it should be noted that it is not the first solution considered by the Anglo American subsidiary in an attempt to limit the effects of the pandemic.
arlier this year, the company offered the Botswana state a relocation of sales sessions from the capital Gaborone to centers closer to its buyers such as Antwerp in Belgium.
Cassien Tribunal Aungane, Editor
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