Israeli Diamond Portal Reports: Varda Shine in an Exclusive Interview with the IDI Portal

Dec. 11, 2008 - PRLog -- In the last few weeks, it would seem that DTC Managing Director Varda Shine has been on something of an emotional roller coaster: On November 23rd, on the occasion of the 70th anniversary of the Israel Diamond Exchange (ISDE) held in Tel Aviv, Shine was awarded honorary membership of the ISDE.  As the first woman ever to receive honorary membership, we asked how she felt the tribute. Shine replies: “I am very honored to be the recipient of an Honorary Membership of the Israeli Diamond Exchange, and I am particularly proud to be the first woman to be recognised in this way.”



Only a few days later, Varda Shine and a delegation of the DTC were staying in Mumbai on the day of the terrorist attacks. She and her delegation luckily escaped injury due to the fact that they had left the hotel only a few minutes earlier to dine outside of the hotel. Expressing her relief that the entire team was safely accounted for, she adds: “My heart goes out to all those who were not so fortunate and our prayers are with the friends and families of the many who lost their lives in these mindless attacks.”



Putting personal experiences aside, the Managing Director of the DTC remains calm and collected – and even optimistic - in the face of the current financial crisis, which is impacting heavily on the global diamond industry.  



At the recent AWDC Symposium, De Beers Managing Director Gareth Penny said that ‘De Beers is fully prepared to reduce production to be consistent with the prevailing level of demand for new rough diamond supply from our clients.’  



Shine stresses: “Our strong belief in the future has guided these actions to ensure long-term sustainability of our business and consumer confidence in diamonds.”



Shine’s belief in the diamond’s potential appears to be unshakable: She reiterates: “Whilst diamonds will likely not be immune from the short-term impact of a global recession, increasing supply shortages forecast for the next decade, coupled with increases in consumer demand, will support upward price trends in the long term.”



Shine does not envisage any changes to the fundamental ways in which the DTC does business with its Sightholders, and she notes that the company continues to listen to its Sightholders’ feedback.



We asked Ms. Shine how the world diamond industry will be affected by the current crisis. She replies: “While, at the retail level, prices for polished diamonds remain above the levels seen at the beginning of the year, the wholesale market for new rough diamonds in the major cutting centers has been impacted by the global economic crisis, principally as a result of liquidity issues. This is driving DTC Sightholders to look at their inventory levels and in some cases, may have a negative effect upon their ability to purchase new rough diamonds.”



Shine notes: “De Beers will continue to monitor and respond to its clients’ needs, particularly following the Christmas and Chinese New Year retail selling seasons.”




We asked if the global diamond industry can survive the worldwide drop in demand for diamonds. Shine views the outlook positively: She points out that demand for diamonds has been consistently increasing and is expected to continue in the long term.  “Our research shows that desire for diamonds is as strong as ever. People will still get married and will still celebrate important events with diamonds.”



We note that some studies indicate that the luxury consumer will change his mindset regarding the purchase of luxury items – including diamond jewelry – in the aftermath of the current recession. Shine does not appear to be worried. “A very important point to consider here is that in tough times, consumers gravitate towards quality. They buy fewer, but better things -        things that last, which are not disposable and which hold their value.”  



Shine underscores: “One of the many findings that support this conviction came out of our research carried out in October which showed that diamond jewelry is still the number 1 gift for the holidays in 2008. Twice as popular as consumer electronics.”



At the Rough Diamond Conference held in Israel last February Shine suggested that the diamond industry seek new markets such as Latin America to replace depressed markets. We asked her if she still considered this a feasible option. Shine responds that there is an evident strengthening of emerging markets for diamond jewelry purchases, especially in the BRIC’s (Brazil, Russia, India and China), and that she envisages this trend continuing.



There have been several calls from within the global diamond industry to significantly increase generic promotion of diamonds. When asked what role De Beers will play in these efforts, Shine points out: “De Beers is working to sustain consumer demand with its biggest ever holiday advertising campaign.  De Beers has doubled its marketing spend in the US for Q4 2008 to ensure pull through of polished diamond jewelry at this important time of the year.”



Shine states that the diamond promotion campaign will ensure the strongest ever holiday impact, with 97 million consumers expected to see the campaign at least 6 times on either television or in print. In addition to this, DTC has invested additional substantial funds with its Sightholders to drive incremental growth in Q4.




By: Rachel Lieberman

# # #

The Israeli Diamond Industry organizations
Behind the Israeli Diamond Industry are a group of vital and dynamic institutions. Each one is responsible for a different aspect of the industry’s activities.