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Antwerp, Diamonds and Tourists: Potential Partnerships?. Mark Van Bockstael Chief Officer International Affairs AWDC. Antwerp and Diamonds, The heritage. 4 th Century BC Far East 13 th Century Bruges via Venice 15 th Century Lodewijk van Bercken
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Antwerp, Diamonds and Tourists: Potential Partnerships? Mark Van Bockstael Chief Officer International Affairs AWDC
Antwerp and Diamonds, The heritage • 4thCentury BC Far East • 13th Century Bruges via Venice • 15thCentury Lodewijk van Bercken • 16th Century Antwerp’s Golden Age • 17thCentury Tavernier sells diamonds to Louis XIV • Amsterdam vs. Antwerp • 18thCentury Diamonds in Brazil (Diamantina) • 19thCentury Kimberly (SA) De Beers Antwerp
Antwerp, the world’s leading diamond trade centre… …for rough and polished 80% of all rough diamonds pass through Antwerp strong ties with Africa, Russia and Canada 50% of all polished diamonds pass through Antwerp strong ties with Chinese, Swiss and US markets strong ties with polishing hubs in India andIsrael Average yearly turnover 40 billion US$ or 200 million US$ per day
Antwerp, the world’s leading diamond trade centre… …for rough and polished
Antwerp’s selling points Antwerp the beating heart of the diamond industry
AWDC Focus on BRIC-countries and Africa Welcoming official delegations in Antwerp Russia The United States People’s Republic of China South Africa India Shanghai Diamond Day & Gala Evening
Diamonds pure carbon crystals formed under extreme heat and great pressure 150 km beneath the earth’s surface
A diamond, is different Nature’s treasure Commodities
Carat Clarity Colour Cut Diamonds 4 C’s
4 C’s Carat Clarity Cut Color
Diamonds are getting more rare Diamond reserves at an all time low Major new mines not being found
Supply/demand favorable long-term Growing demand from China & India Demand likely to exceed supply through much of the next decade Nominal Consumer Demand PWP Polished Supply Source: De Beers UK Ltd estimates. Note: Supply figure excludes existing polished stock in pipeline
Polished Price Evolution The index is based on prices in US$ and gives the average price evolution on the Antwerp market. The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2
Polished Price Evolution The index is based on prices in US$ and gives the average price evolution on the Antwerp market. The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2
Polished Price Evolution The index is based on prices in US$ and gives the average price evolution on the Antwerp market. The index is for diamonds ranging in color from exceptional white to white and in clarity from LC to VS2
Consumer research findings Diamond Jewelry seen as the N°1 gift to retain value 39% consumers choose diamonds as the ONE gift to do so Women want ONE decent present 62 % women strongly agree that one gift of better quality beats several small gifts.
Consumers want diamonds most desirable luxury product in almost all major countries WOMEN 2ndchoice 1stchoice HONG KONG CHINA GULF JAPAN USA KSA INDIA FRANCE TURKEY ITALY
Strategy: Value in three dimensions
Antwerp, Diamonds and Tourists: • Existing Hurdles: • Antwerp is (loose) diamond Wholesale centre, hence limited infrastructure to cater for tourists’ needs • 21% VAT (TVA/BTW) refundable upon export • AWDC and Antwerp’s Jewelry organisations can provide relevant contacts to visiting groups and travel organisations upon request