News from All Diamond

As another possible way to solve the problem of fragmentation in the diamond sector beyond consolidation, Ehud encouraged the industry to explore strategic alliances.

"Looking at other industries, there appears to be various ways to address the challenges of excess fragmentation in parts of the diamond sector. One option our sector can consider, especially given the slow trend in consolidation between players, is to make more use of strategic alliances."

Ehud explored possible methods of addressing the issue of fragmentation, drawing in part on lessons from other industries.  

First among them was simply consolidation, whether natural or through mergers and acquisitions.

Delving further into the issue of fragmentation in the midstream (manufacturing) of the diamond sector covered in last week's post, Ehud said in August 2015, "The more we examine the facts, the clearer it becomes that the main problem faced by the diamond industry is that the midstream – the manufacturing sector of the diamond pipeline that mainly polishes diamonds – does not get its fair share of the pie."  

Beyond the issue of restoring demand for diamonds, Ehud also discussed in depth supply-side challenges he thought the industry should seek to overcome.  

Ehud was particularly concerned by the deep fragmentation in the diamond sector, which prevents players across the diamond pipeline from operating profitably and, therefore, sustainably.

In addition to improving pricing transparency, Ehud believed that the diamond industry should also tackle the other issues that have led to a decrease in trust in the sector as a whole.