GemTalk. Issue 10 May A newsletter for Rio Tinto Diamonds Sales and Marketing
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1 GemTalk Issue 10 May 2011 A newsletter for Rio Tinto Diamonds Sales and Marketing
2 Welcome Welcome to GemTalk for Since our last edition, our diamond business has experienced some very busy and exciting times. The market has continued to be very strong for all our productions as the US has shown good resilience and emerging markets remain buoyant. It has also been a busy few months for the sales and marketing teams and at our operations. In late February, more than 30 Select Diamantaires took up our invitation to tour the Diavik mine that supplies our beautiful product and explore the region s icy wonders. It was an eye-opening experience for all of us and a wonderful time shared together. Argyle celebrated 25 years of brilliant history, which coincided with Oprah s Ultimate Adventure in Australia, saw the popularity of the Argyle Pinks growing further with top line retailers, and experienced the launch of our wedding-focused Nazraana marketing campaign in India in April. And moving to yet another type of environment altogether the ever-developing virtual world I am pleased to bring you news of some of Rio Tinto s latest online diamond marketing initiatives, which are engaging our customers in new and quite different ways. Happy reading. Jean-Marc Lieberherr General Manager Diamonds Sales and Marketing As yet another sign of our commitment to India, the Bunder project coordinated a very innovative travelling AIDS awareness show that visited 32 locations, to spread the word about the importance of safe sexual behaviour in combating the disease. 02
3 Argyle celebrates 25 brilliant years The significant business, social and technological advances made by Argyle Diamonds in its relatively short life will be celebrated throughout 2011 to mark 25 years of production from Argyle s AK1 pipe. Argyle s history contains many examples of courage, foresight and innovation, including: the development of unique X-ray technology to sort more than a million diamonds a day mined from the Argyle ore body; the groundbreaking strategic marketing work that resulted in the growth of the Indian diamond manufacturing industry to cut and polish Argyle s more difficult stones; Argyle s bold move away from the De Beers group to be the first company to independently market its gems; and the signing of the Argyle Participation Agreement with Mirruwong and Gidja traditional owners that has been acknowledged across Australia as a best practice example of building sustainable relationships with communities. According to Kevin McLeish, Managing director of the Argyle Diamond Mine, I look forward to the next chapter in the Argyle story as we build on our proud past and embrace our exciting future with our new underground mine. 03
4 Memorable debut for Indian wedding campaign Rio Tinto s Nazraana campaign, which aims to introduce affordable diamonds to the strong gift-giving traditions surrounding Indian weddings, was launched in great style in April. And with double digit growth in Indian diamond jewellery consumption forecast between now and 2020, this initiative will provide timely support for Rio Tinto s Select Diamantaires in this important market. The Nazraana initiative is designed to appeal to a generation of more affluent Indian consumers, shifting away from gold to explore new luxury items. Supported by independent market research, the Nazraana campaign will be implemented throughout 2011 with the view to building a platform of product and support services for participating Select Diamantaires and retailers. More than 80 Indian jewellery retailers together with Select Diamantaires, were invited to two wedding-themed events held in Goa. Nazraana guests were treated to wedding celebrations replete with henna painting artists, tarot card readers, bangle sellers and an all-singing, all-dancing traditional girl band. become an official partner for the Nazraana initiative are provided with training and point-of-sale materials to help them promote the idea of diamond gift-giving, without impacting on the main bridal jewellery sale, explained Vikram Merchant, manager of Rio Tinto Diamonds India Representative Office. All official partners will also be featured in Rio Tinto Diamonds sponsored national and regional promotions and will be included on a consumer website that promotes diamond jewellery gift-giving ideas. 04 GemTalk Amid this revelry, retailers had the opportunity to view the Nazraana product range and place orders for the forthcoming wedding season. Retailers applying to May 2011
5 Icy tour offers a different diamond perspective A visit to the icy home of Canada s Diavik diamonds proved an eye-opening adventure for a group of loyal Select Diamantaires earlier this year. Just over 30 Select Diamantaires from 16 companies around the world were invited by Diavik on a five-day tour that took in scenic Vancouver, Yellowknife and the Diavik mine itself surrounded by the ice-covered waters of Lac de Gras in Canada s sub-arctic. The tour was organised as a celebration of important milestones for the mine in recent years, including the signing of the first Diavik supply agreements and the transition from open pit to underground mining. Highlights included a viewing of the fascinating Northern Lights (Aurora Borealis), memorable outdoor activities such as dogsledding and snowmobiling on a frozen lake and, ofcourse, a tour of Diavik s unique operations both above and below ground. The visit to the mine really gave me a new perspective on the probably least understood aspect of our industry, said tour participant Leon Waldman from Waldman Diamond Company. Most of my colleagues and customers would hardly believe the logistics of running an operation like Diavik. 05
6 Retailers share their passion for the pinks While Oprah Winfrey s recent visit to Australia has given Argyle s pink diamonds a definite profile boost, the passion for pinks is increasingly evident in a number of luxury jewellery retailers in central and south east Asia. High-end Japanese designer and jewellery retailer Niwaka recently established itself in Korea with the launch of Argyle pink diamonds at its Lucie store in Seoul. Over the course of the three day launch, sales from its pink diamond collection far exceeded expectations for a brand new product line. Across the Yellow Sea in mainland China, Chow Tai Fook continues to explore the market for pink diamonds with the first of several pink diamond appreciation events held in Taiyan, Shanxi province in March. Attended by high net worth individuals these events have been well attended and evidence of a strong appetite for high end luxury products. Meanwhile, Singapore-based diamond wholesaler John Glajz is sharing his infectious passion for the pinks with the opening a new retail outlet in the renowned Orchard Road shopping belt in Singapore. The former jewellery designer has been associated with Argyle Pink Diamonds for many years and has created many signature Argyle pink diamond pieces. In India, pink diamonds also feature in the exquisite jewellery being offered by the Nirav Modi salon in Mumbai, a new venture for the Firestone Diamond chairman who specialises in oneof-a-kind heirloom jewellery pieces. Firestone Diamond is an Authorised Partner of Argyle Pink Diamonds and has acquired a significant number of its rare pink and blue diamonds. 06
7 Argyle s coloured diamonds take centre stage Argyle s coloured diamonds were showcased to the world like never before during the December 2010 visit to Australia of talk show queen Oprah Winfrey. During the taping of the final episode of Oprah s Ultimate Australian Adventure at the Sydney Opera House intended to showcase the best of Australia Oprah gave serious promotional airtime to the Kimberley region, the coloured diamonds from Rio Tinto s Argyle diamond mine and personally endorsed the iconic gems. And in a highly memorable TV moment, Oprah announced that each of the 6,000 members of the audience would receive a limited edition Argyle diamond necklace especially designed to commemorate her visit. This unique and highly coveted marketing opportunity was highlighted when the episode went to air in mid-january to around 49 million viewers in the US, plus delayed broadcasts to another 125 countries. The Australian Colours O diamond necklace was produced by Rio Tinto Diamonds Chinese partner Chai Tow Fook. Rio Tinto employees around the world now have the opportunity to purchase their own Argyle O diamond pendant, in either silver or rose gold. Every O pendant is issued with a Certificate of Authenticity to provide assurance that the diamonds are sourced from the Argyle diamond mine. Purchases can be made online by visiting index.asp#hk,en,news,special_offer. Subsequent to the broadcast of Oprah s Ultimate Adventure, 100 very special all pink Limited Edition O Pendants were produced for sale through the Argyle Pink Diamonds business. Each pendant, set with approximately 1.30 carats of Argyle pink diamonds, has a numbered laser inscription and is accompanied by a certificate of authenticity. They were sold out in 24 hours and this success and unprecedented enthusiasm indicates global confidence in Argyle pink diamonds at the luxury retail level. 07
8 Online marketing activities have Klout While the diamonds that Rio Tinto sells might be ancient, the methods that it uses for promoting them certainly are not. The company has embraced new technologies and digital strategies to keep front-of-mind of its customers, with its social media efforts on Twitter and Facebook garnering a substantial fan base. Rio Tinto has, for example, actively started and participated in online conversations about the jewellery and style industries that have helped raise the visibility of notable diamond products, including its Champagne and Silvermist ranges. Rio Tinto s Twitter ranking of 23 (out of a possible 100) on the Klout Score a measurement of overall online influence places it in the category of an explorer in the digital media world, constantly trying out new ways to interact and network. Getting information out on the streets Street theatre can be a very powerful communication tool in parts of the world where low literacy levels restrict access to muchneeded information. Most recently, Rio Tinto has begun to trial QR (or Quick Response) barcodes, one of the newest trends for delivering product information quickly to customers. The QR codes, which can be embedded in magazines, in-store graphics, signage, business cards and other printed materials, can be scanned and decoded by a Blackberry or smart mobile phone. This takes the user directly to a website, phone number, SMS text message or other call to action landing places without having to type in a link. Rio Tinto has designed two custom QR codes, using its logo as the centre icon, that will be in use at its inaugural booth at the JCK show in Las Vegas in June. Watch this digital space! 08 With this in mind, Rio Tinto s Bunder project recently coordinated a travelling AIDS awareness show that visited 32 locations to spread the word about the importance of safe sexual behaviour in combating the disease. The street play which reached an audience of approximately 12,000 people in and around the developing Indian mine site was devised in collaboration with local community-building partner, Gramodyog Sansthan, with local and national AIDS control organisations also providing vital input. Nine locally-trained theatre artists performed the shows over a two-week period. The play was very well received by the communities it visited, explained Stef Loader, project director at Bunder. This is the first time we have extended our community-building efforts beyond our core villages and it has provided a good model for how we can effectively spread the word about other important local issues.
9 Antwerp welcomes a new international operator Paul Duncombe brings a wealth of international experience to his role as Rio Tinto s new Diamonds Operations Manager. Most recently the Diamonds Operations Manager for BHP Billiton (for whom he worked for four years), Paul also has 24 years industry experience working for De Beers Diamond Trading Company and has worked in a variety of locations including England, Belgium, South Africa, Namibia, Botswana, Israel, Congo, DRC and Guinea. In his new Antwerp-based role, Paul is responsible for the accurate sorting and valuation of Rio Tinto diamonds, for operational business improvement and strategic decision-making, and for ensuring an efficient work-flow to meet targets. Although he only started the new role in late January, he is already impressed by the wide-ranging skills of his team and the company s health, safety and environment focus. A passionate football supporter, Paul is a season ticket holder at Tottenham Hotspur Football Club. While he may not need to travel so far for work these days, he will still be a regular passenger on the Eurostar as he journeys back to England each fortnight to watch his team s home matches. Welcome and farewell Rio Tinto Diamonds farewells: Elizabeth Swanson Manager marketing services Allan Pedersen Senior industry analyst Michael Sterk Business analyst Ric Zuiderduyn Senior account executive, Argyle Pink Diamonds Nancy Malouf Account executive, Argyle Pink Diamonds Virendra Parikh Superintendent operations, Argyle Pink Diamonds Rio Tinto Diamonds welcomes: Paul Duncombe General manager operations Mark Mertens Manager central marketing Catherine Van Passel Manager finance and procurement Ana Kosic Diamond administration officer Drybooms Frans Principal advisor diamond technical Marie Chiam Marketing executive, Argyle Pink Diamonds New Borns Lander: 13/04/11 (son of Marleen Calluy) Arwen: 15/04/11 (daughter of Nancy Verschueren) Contact information Anthea Lema anthea.lema@riotinto.com Katja Van Der Hallen katja.van.der.hallen@riotintodiamonds.com Rio Tinto Diamonds NV Diamond Exchange Building Hoveniersstraat Antwerpen, Belgium Telephone: (32 3) Facsimile: (32 3) Website: info@riotintodiamonds.com salesenquiries@riotintodiamonds.com We welcome your feedback! We are keen for ideas about how we can improve the newsletter and welcome your contribution of photos and stories of interest for future issues. Please contact Anthea or Katja with your comments and suggestions.
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