De Beers triples spend to £110m

De Beers Group, the diamond mining and marketing company, is to increase its marketing spend almost threefold to $180m (£110m), after the announcement of a new joint venture retail brand with luxury goods giant LVMH Moët Hennessy Louis Vuitton.

De Beers Group and LVMH are creating an independently operated 50:50 joint venture company to sell premium diamond jewellery and associated luxury goods in De Beers-branded outlets.

The aim is to create a new customer base in order to drive demand and encourage competition in the diamond market.

De Beers’ sales and marketing arm, the Diamond Trading Company, will increase its marketing spend on global generic advertising campaigns for 2001 to $180m (£109m). In 1998, the company spent $68m (£46.2m) on advertising – a figure that is believed to have remained steady since.

In the UK last year, De Beers spent £2m advertising jewellery and the Millennium Diamond Collection. Creative work was by J Walter Thompson and media through MindShare.

The upweighted advertising for this year, based around the strapline “A diamond is forever”, aims to “drive overall consumer demand for diamonds and support all of its clients, jewellery manufacturers and retailers around the world”, according to the company’s information.

LVMH group managing director Myron Ullman will be the chairman of the new luxury goods company.

Ullman says: “Diamonds are the ultimate luxury product and, as the world’s leading luxury goods group, LVMH is the ideal partner to develop the great potential of the De Beers names among consumers.”

Comments

    Leave a comment

    Close

    Discover even more as a subscriber


    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now