Diamond business needs a different model?

Are we able to adopt

a different business model?

Recently Ronnie VanderLinden, President-IDMA asked a question to diamond business that Are we able to adopt a different business model? Further inks, first, let us take a quick look at who we are. The International Diamond Manufacturers Association (IDMA) was established in 1946, shortly after World War II.

The association was formed to help diamond manufacturers pick up the pieces in the aftermath of this destructive war. In Amsterdam, where my family is originally from, few of the Jewish cutters and traders returned from the Nazi death camps, and sadly, the City of Diamonds never regained its former glory.

In Antwerp, the situation was not much better, but due to its unique role as the world’s rough diamond trading and distribution hub, the Scheldt City slowly but surely was able to rebuild itself. In Ramat Gan, the budding diamond manufacturing began exponential growth, and soon diamonds became a major and vital export for the young state of Israel.

Here in the US, and New York in particular, the industry and trade welcomed hundreds of new diamantaires, many who had left their previous lives in Europe behind to create a new life for themselves in the US. Shortly after, India started making its mark, changing the industry forever.

Fast forward, let us take a quick look at where we are now. I am not making a comparison between those historical times and the current global health crisis and the ensuing economic downturn. Throughout these past seven decades, IDMA has been led by some of the industry’s most inspired and illustrious diamantaires.

As such, we are standing on the shoulders of giants. IDMA’s history, its past leadership, and the current crisis continue to motivate us, the members of your IDMA board, to examine IDMA’s mission and objectives, and in particular focus on the added value that we wish and need to bring to our members, and ultimately to the individual diamond manufacturer and trader.

Indeed, IDMA’s “prime directive” has remained the same: to help our members create a business environment in which manufacturers, importers, wholesalers, and traders can grow and thrive.

During the past months, the following question has been asked repetitiously: how can we conduct our businesses successfully, at a time where traveling to most places is almost impossible? 

This, of course, for our global industry makes it exceedingly difficult to do what we previously took for granted, such as viewing merchandise, visiting clients, attending shows, on-hand seminars, and so forth.

The question itself indicates that we have no choice but effect changes in the traditional ways our industry has conducted its business, 1: Are we able to adopt a different business model? 2: Can we continue to buy and sell diamonds without leaving our offices?

3: Can we conduct our businesses in this environment and still buy and sell confidently? The bigger question – and also make a profit? 4: Can we get a grip on polished diamond price developments, knowing that the information offered to us is reliable, transparent, and that those supplying us with the data can be held accountable for its accuracy?

Our Honorary IDMA President Jeffrey Fischer wrote this in his foreword in the previous WINC: “The challenges confronting the diamond industry are many, A: Too many players are mired in the past and vilify agents of change as the cause of our difficulties; B: Too many kneel before those change-makers obediently.

C: Too many rely on a singular price list and an absence (thus far) of on any alternative the industry has found interesting enough to give a real chance, resulting in an overabundance of newfound trading platforms; D: Producers continue to drive manufacturers into buying beyond their legitimate needs, regardless of stated policies to the contrary. And the list goes on…”

In a recent Zoom meeting, initiated by IDMA, with diamond industry leaders participating worldwide, IDMA hosted Mahiar Borhanjoo of Uni.Diamonds who presented the firm’s newly formulated polished diamond price guide project. UNI.Diamonds operates an “online ecosystem that connects between vendors and buyers, securing the sale and safe delivery of polished diamonds around the globe.”

Uni.Diamonds, with the cooperation of two other companies, EZCalc and IDEX, is developing a system that they claim will enable buyers, using a computer or a mobile device, to conduct searches according to quality and price criteria. More information on Uni’s exciting new project can be found online.

Of course, IDMA has no financial or any other economic stake or interest in this venture. However, we do believe that in response to the many conversations, emails, and phone calls, we must help our members find solutions in what we have called this “next normal.” We pledge we will continue to do so in the future, too!

It is important to note that IDMA, as an association, is a not-for-profit organization that is funded by the – ever-dwindling – membership fees. All the board members, and all the board members of its member associations, do their work voluntarily, without any remuneration.