How to make customers be faithful to diamonds?
De Beers wanted to combine diamonds with love.
Nowadays, you all believe that holding a diamond ring to propose is a tradition. But it was not like that in early times. Until 1930s, there was no such tradition. Only royal families in the UK wore diamonds. In 1938, 3/4 of diamonds were sold to the US. We Americans like to propose with a diamond ring, though we didn’t care about the size of the diamond.
At that time, De Beers decided to build a new image of diamonds to increase the price.
They cooperated with the famous advertisement company, N. W. Ayer, to come up with new marketing messages.
After marketing research, N. W. Ayer found that they must build the connection between diamonds and romance in the public context in order to attract young buyers. 90% of diamond rings were bought by young men, so, the message must be like that, larger and purifier diamond meant sincerer love. Diamonds were gift of true love.
In 1948, a young employee at N. W. Ayer wrote the sentence, which was the most famous marketing message in the 20th century, and it is popular till now.
A diamond is forever.
Customers became faithful to diamonds with this message. For men, a diamond ring was once in a lifetime thing, men should and must pay for the price. For women, diamonds stand for true love, no one would sell diamonds.
By the way, a diamond can’t be forever. The only element of diamonds is carbon, which will transfer to carbon dioxide at 1000℃.
The next thing is to find a strong endorsement for the idea.
De Beers took two steps.
First, export the idea to western world via the example of royal family in the UK. Second, export to the world via Hollywood movies.
In the 20th century, British royal family was the focus of attention of the western world.
De Beers successfully persuaded the royal family to wear diamonds, invited them to South Africa to visit their diamond factories and made the tour into a documentary. The Queen and other members of royal family wore diamonds in public, which were sponsored by De Beers.
Many people follow the example of the Queen. Diamonds soon became popular.
Next, De Beers opened a Hollywood office. All famous Hollywood movie stars were wearing diamonds at that time. De Beers also gave diamonds to producers for free. Therefore, their diamonds could be shown in Hollywood movies. Do you remember a scene that, when a girl received a diamond ring or a diamond necklace, she would be surprised and super happy? And next was a close-up of her face.
All women wanted to experience this kind of surprise.
In fact, this advertisement was proved to be effective. In Japan, less than 5% of young men proposed with a diamond ring in 1960s. however, this number increased into 60% in 1980s.
That’s what De Beers want.
There’s a quote from the movie Wall Street.
You ever wonder why fund managers can’t beat the S&P 500? Because they’re sheep, and sheep get slaughtered.
Similarly, we are sheep, we can’t beat De Beers and their diamonds.
Why would I know? Because I tried.
When I was preparing to get married and I asked my girlfriend, “How about I give you a Bitcoin instead of a diamond ring? Since the price is pretty much the same.
You see, if we get divorced one day, you can sell the Bitcoin. The liquidity of Bitcoin is much better than a diamond ring, right? As to eternity, Bitcoin lives on the internet, no one can change it.
A Bitcoin is Forever!”
You know what happened.
God bless me.