RAPAPORT... Making sure that the diamond industry is socially responsible in its global business practices was a recurring theme at the GIA symposium.
The exhaustive array of educational presentations at the Gemological Institute of America (GIA)’s 4th International Gem Symposium, which was held August 27 to 29 in San Diego, California, left some participants at a loss to characterize the overall conference buzz. From breakfast lectures, back-to-back panel discussions, debate centers — known as war rooms — luncheon lectures and poster sessions presenting a dizzying assortment of gemological topics, one could be forgiven for feeling the mere scope of data presented seemed too much to process. At some point, however, attendees discovered recurring themes and, by the end of the proceedings, the business of diamonds in the context of responsible global practices rose above the fray.
The previous International Gem Symposium took place in 1999, and much has transpired within the international diamond community since then. In his opening statements, GIA Chairman Ralph Destino noted that “there exists no other forum for gem professionals to gather, debate and share discoveries from the scientific community that impact everyone in the gem industry.” Surveying the diverse audience facing her, keynote speaker Madeline K. Albright, PhD, remarked, “The symposium is good because it develops levels of understanding that are not possible if you sit in your office.”
The underlying impression that the world is our neighborhood — and we must care for it, also infused the opening remarks, and set the tempo for the ensuing program. Dr. Albright said she considers herself an “optimist who worries” and emphasized a global responsibility in conducting business in regions where abuse or crime occurs.
CHANGING TIMESOn Monday, the first full day of the symposium, behavioral market research expert Paco Underhill addressed an early breakfast crowd on “The Consumer of the 21st Century.” Retailers heard an especially hard-hitting message with regard to their frequent grievance that the internet is undermining their business. Change or go under was Underhill’s response. “You haven’t figured out how to use it,” Underhill remarked. Challenging retailers to embrace the internet as a vital companion to their business, he predicted if one is not onboard with the internet now, “Goodbye, because you won’t be here in 2010.”
The popular panel session, “Diamonds: Mapping the Future,” was composed of international leaders focused on distribution and diamond manufacturing. Elliot Tannenbaum of Leo Schachter Diamonds remarked that the distribution chain is so transformed today as to be unrecognizable. The pipeline, Tannenbaum pointed out, has been “flipped on its head.” In the past, the diamond supply chain was a linear, vertical pipeline — nowadays, it begins with the customer, who can be anywhere in the world. The difference in the current marketplace, he noted, is that consumers may actually know more about the product than the retailers. As a result, Tannenbaum cautioned companies to seek out a unique niche and develop their brand.
Glen Rothman of Hearts On Fire concurred that the industry has undergone massive changes, yet branding helps retailers keep focus on the emotional promise that diamonds offer — “the riches are in the niches.” When diamonds represent life-changing moments, Rothman pointed out, consumers eagerly spend more.
Lawrence Ma of Lee Heng Diamond Company reported on China’s diamond production. It currently tops 4.5 million carats annually and represents the world’s second-largest diamond polishing center. Still, it lags in management experience and supply, remarked Ma.
Moderator Eli Haas slated Martin Rapaport to conclude the session, promising “strong comments” from him. And Rapaport delivered. The big story here, he pointed out, was in distribution. “We’ve got to stop throwing diamonds around like garbage.”
“Where are we going?” he asked the group. “What are our values?” Shifting focus away from the money to be gained, Rapaport charged the audience to consider the people of Sierra Leone, “We dare not turn our back on the people of Sierra Leone.” Fair trade diamonds provide the necessary local benefits through monitoring, fair pricing and the edict to do no harm. Those ideals, Rapaport concluded, reflect the highest expectation that women aspire to — that of spiritual transcendence, something they attach to that most important diamond in their own life.
Some themes were distilled into one choice comment. In “Jewelry: the Changing Landscape,” several experts explored the concept of jewels that consistently tower above the rest in a fast-paced industry. Moderator Michael Kazanjian was flanked by other leading experts, including estate jeweler Diana Singer, who offered that “excellence does not change over time.” For Singer, excellence is defined by three things: the stone, the work and the design. Her example of Buccellati’s level of detailing in their exquisite workmanship, she said, “elevates the mundane to the sublime.”
SHARING OPINIONS
Each 90-minute panel session concluded with a question-and-answer session between panelists and attendees. But the real action was found in the last gathering of the day, where attendees had a chance to air their opinions in the debate centers. The atmospheres were created to encourage lighthearted, good-natured interchange, but the subjects covered were fodder for hotly contested dialogue. “The Great Synthetic Diamond Debate,” for instance, attracted professionals with divisive opinions. Central to the exchange was the fundamental issue of nomenclature for laboratory-created diamonds. Within the industry, the word synthetic is a perfectly accurate and respectable moniker for created stones. To the consumer, some insisted, the word synthetic meant imitation — a fake.
The synthetic diamond discussion also heard concerns over lab reports that may be issued on synthetic stones in the future.James Shigley, PhD, GIA’s director of research, confirmed that GIA still intends to produce those certificates, although there has been no decision made on the final wording in those reports.
In the highly charged war-room settings, many issues could not be agreed upon, but that was not necessarily the role of these wild sessions. Openly airing one’s opinion was the purpose, and as such, each pit experience succeeded.
The issue of consumer confidence made its way into these debates, as it permeated many of the other presentations throughout the symposium. From antimoney laundering to responsible mining practices, concern over consumer trust was repeatedly addressed. As for synthetics, International Diamond Manufacturers Association (IDMA) President Jeffrey Fischer acknowledged that lab diamond producers have every right to compete in the marketplace. The key issue, however, he clarified, lies in detection, differentiation and disclosure. Esther Fortunoff Greene, executive vice president of Fortunoff, observed that consumers show trust just by walking in the door. And that by continuing to care about the bigger issues, our industry will become more ethical.
Revisiting the observations touched upon in Dr. Albright’s opening comments, Sally Morrision, speaking for the Diamond Trading Company (DTC), brought up the film “The Blood Diamond,” starring Leonardo DiCaprio, slated for a 2006 holiday-season release. Believing that it poses a potential threat to the industry, Morrison stated, “It will have a huge impact beyond those who go to see it.” The key to managing the anticipation of a crisis, Morrison asserted, lies in a proactive approach from within the trade to dispel public misunderstanding about conflict diamonds.
When Maurice Templesman, chairman of Lazare Kaplan, delivered his closing comments for the symposium, he also referred to consumer trust. The theme of his remarks was “Tradition and Transition,” in which he recognized the historic and crucial role played by GIA since 1931 in educating the public and building confidence in an industry that is dependent upon sustaining that confidence.
Article from the Rapaport Magazine - October 2006. To subscribe click here.