Feature Articles

What does a diamond manufacturer aim to achieve in releasing a new cut? Is the goal to conquer new markets, or to simply place the media spotlight on the company and help in marketing its other goods?

It’s not a simple equation. Given the development costs, the expense involved in marketing a new product, which involves spreading awareness and persuade the consumer that the branded cut  is worth a premium of 20 percent or more, the question arises as to whether it is a worthwhile proposition. That would seem to suggest that the exercise is only viable for larger diamond manufacturers with deep pockets and a global reach. Smaller firms have also launched new diamond cuts, but their experience has been mixed.

Although the development of new technology has enabled manufacturers to more easily create new cuts, companies point out that the role of experienced craftsmen is still vital in the process.

"Modern technology has definitely helped in creating new cuts, particularly over the last 10 years," said Mike Asscher, vice president of Royal Asscher which launched its 74-facet Royal Asscher Cut in 2001. "But there is also a lot of old-fashioned trial and error with vastly experienced polishers constantly checking the diamond. I strongly believe that there is no substitute for using the eye the eye of a craftsmen to fine-tune the stone."

Among the cuts created by Antwerp firms is Eurostar's branded diamond cut called the Blue Flame, designed in Antwerp for the Chinese market. The cut has 89 facets and is set in a specially designed line of jewellery. It is made for Tesiro, a partnership between Eurostar and China’s Tongling Group that runs more than 150 retail jewelry outlets in China. The Blue Flame cut was introduced in Antwerp, where it was designed by two master cutters, Bernard Van Pul and Koen Van Ishoven.

Other cuts of recent vintage include the Antwerp Twins cut by 3D Diamonds, which it has stopped producing; the Gassan 121-facet diamond by Dutch company Gassan; and the Flanders Cut by Flanders Collection launched with an HRD Antwerp customised certificate.

In addition, there is the Cento cut from Rosy Blue. The Cento was inspired by the 700-year-old Belgian legacy of diamond crafting. The diamond has 100 facets, and is cut in a special floral pattern in order to disperse more brilliant light or ‘fire’.

The Flanders Cut was created in 1983 and first produced in the city in 1987. The firm's Charlie Friedrich said: "It is a squarish stone with the brilliance of a round. They are hand-made and take about 30 percent more time to make than a similar type of diamond. It was created with the help of the HRD's research department which helped improve its symmetry."

Friedrich said the company also creates jewellery featuring the stone and its products are sold around the world, including Japan, China, Australia and in Europe as well as in the United States.

Creating a new cut is not appropriate for every company, says Asscher. "The process is very lengthy, depending on how much you want to invest in the stone," he explains. "I believe that at least one year is needed. You need to have your marketing strategy set. It needs the full package. But if I look at our business now, compared with before the introduction of the Royal Asscher, I see it accounts for over 50 percent of our business."

Said a manufacturer: "There are relatively few new cuts that have become successful, with most of them failing. Companies have created cuts that are simply a new version of a round diamond, and that has relatively little chance of succeeding. I do not see the added value of a round stone – how many versions of the round diamond can you create? Consumers have to be excited by something new and different and special."

The risk in creating innovative cuts is considerable. One Antwerp manufacturer, who asked not to be named, explained that hsi firm had spent two years developing the product.  "Even with the use of technology, it takes a long time to fine-tune the cut. The prototype stone was made by craftsmen and then the model was computerised to enable us to further develop it. We were looking to create a new concept for the market – but the market was not ready for it. The market is conservative and sticks with tried and tested cuts – people always expect the same sort of stone.

"People need time to get used to a new cut – and because many companies do not always have the time and resources available to wait they have to make quick decisions about whether to continue with it. Because we sell to wholesalers and not to jewellers, the wholesaler does not want to take the risk with a new cut because they do not know if the end consumer will like it so they are unable to persuade jewellers to buy it. Consumers are also largely conservative where diamonds and jewellery design are concerned. They look for standard diamonds, mostly rounds, for rings, for example.

"We are too small to launch a diamond brand even though we loved the idea and thought it could have attracted a lot of attention. You need to be a large firm with substantial marketing ability and resources to launch a new cut. We do not believe that marketing alone will help you succeed in launching a new cut when you are a small firm – you need much more than that."

The manufacturer said that despite giving up on the new cut, the company did not lose the diamonds themselves since it repolished and sold them. "We lost out in terms of the time and resources invested in developing the cut. On the other hand, we all learned a great during the process about how to create a brand.

"Unfortunately, we jumped into it without carrying out any research. We did not seriously consider teaming up with a larger company because we know from experience that they always want to take over the project. We spoke to a few companies, but they wanted to swallow us up and take control and we were opposed to that," the manufacturer added.

Asscher believes that creating a new and different product is what Royal Asscher has succeeded in achieving. "I believe branded diamonds will add value for the consumer, but the diamond needs a real story behind it. If the consumer can see what the added value is, then he will be prepared to pay extra for it. You cannot just add more facets to a diamond and present it as a new cut.

"For Royal Asscher it is quite an easy story to sell because of our long heritage of 157 years and as the creator of the Royal Asscher Cut and the redesign that we carried out 10 years ago. Consumers are willing to pay extra because they accept the element of the added value. It is easy to see the difference between a Royal Asscher and a regular square emerald diamond. If you want to add value, you have to be different from other diamonds. We also manufacture jewellery featuring our cut as the centre stone. We must remember that it is the consumer who will dictate to the industry, not the manufacturers. It is the buyers who decide which diamond cut has value – if you can sell them that issue of value then you are able to sell your brand," he added.