Tiffany .The New Diamond Policy
Like ethically sourced textiles and sustainably made jeans, diamond industry lately has had an ample impact on the younger generations, Millennials and Generation Z (Wharton,2019). The consumers of precious stones additionally to the quality, has shown interest in the provenance, transparency, human right and labour practice (Danziger,2019). Data from Euromonitor (2019) shows that 64% of consumers are trying to have a positive impact on the environment. Moreover, according to Mintel (2019), for Millennials and Generation Z is more relevant to buy jewellery if is from ethically sourced materials. Hence, the trend illustrates the idea that consumers are more likely to associate themselves with a brand that also meet their ethical values. The origin of a piece shows an increase in importance amongst customers (Mintel,2019). People today vibrate with the notion of a conflict-free choice and an eco-friendly sourced diamond (Hanbury,2018).
Consumers are much more informed and conscious. This can be seen through a Mintel report (2019) which shows that the decision of buying jewellery is also influenced by the conditions under which the stones were originated and the environment consequences of the jewellery trade, that creates transparency in the supply chain.
Another important element in the diamond industry is the traceability which is a significant data that concede clients to make a knowledgeable purchase. Furthermore, the traceability brings up a new question: the provenance of the diamond, if is socially and environmentally responsible and if human rights are respected (Danziger,2019).
Tiffany was one of the first big jewellery luxury brand that realised the importance of the supply-chain and the sourcing of its diamonds (King,2016), but only recently the company has announced that will start to make it known to the customer the provenance of the diamonds and the used materials. This kind of information that is not given by other global luxury jewellery (Sustainable Brands,2019). The Campaign called “Diamond Source Initiative” is a step closer toward transparency (Danziger,2019). This has been possible due to the technology that stimulated enormous modifications in the industry. In order to track each individual stone, sellers and suppliers will use a system called “blockchain technology” (Wharton,2019).
Anisa Kamadoli Costa, chief sustainability officer at Tiffany &Co stated “Tiffany & Co has long committed to diamond traceability, going above and beyond industry norms to promote the protection of the environment and human rights” (Tiffany & Co,2019).
Ethical and responsible mining is substantially important for Tiffany. The company has a direct relationship with the Responsible Mining Assurance, an organization that secure that mines are regulated responsibly social and environmental (Minthe,2019). This will help communities and consumers to have a better understanding which mines have ethical practice (Tiffany & CO,2019).
The brand also protects from mining locations like Yellowstone National Park, Alaska and Bristol Bay (Minthe,2019).
Despite the increasing demand from millennials on lab-grown diamonds, which are more environmentally friendly and less expensive (Harilela,2018) Tiffany is claiming that it does not consider synthetic diamonds a luxury material (Hecht,2019) this even though mining operation has an environmental negative impact (Danziger,2019). The Tiffany’s spokesperson states “Exceedingly rare and an incredible miracle of nature, diamonds are a romantic symbol billions of years in the making with an intrinsic value far beyond their chemical make-up. We do not believe that lab made diamonds are a luxury product and, as such, we do not intend to use in our jewellery” (Forbes,2019).
Today, as lab-grown diamonds are increasing its popularity among millennials, Tiffany has a challenge to face (Hecht,2019). Consumer’s priorities have shifted and as diamonds are an ethical issue many consider it as a threat for the environment as well as bad practice for working conditions (Mintel,2019).
Millennials are reshaping what luxury means (Danziger,2019) and jewellery luxury brands need to reconsider their approach to the responsible and more sustainable consumer.
Reference:
- Danziger P. (2019) Tiffany’s New Mined Diamond Policy Ignores All That Luxury Customers Want: A Man-Made Alternative, Forbes [Internet] 16thJanuary Available from https://www.forbes.com/sites/pamdanziger/2019/01/16/tiffanys-new-mined-diamond-policy-ignores-all-that-luxury-customers-want-a-man-made-alternative/#5eaab4cf507a[Accessed 15 of December]
- Euromonitor (2018) Ethical Fashion: Why and How Can Fashion Industry Close its Elusive Loop [Internet] 7thJune Available from https://www-portal-euromonitor-com.yorksj.idm.oclc.org/portal/analysis/tab[Accessed 10 of December]
- Hanbury, M. (2018) Millennials Attitudes are Forcing a Massive Change in The Diamond Industry, Business Insider[Internet] 10thMay Available fromhttps://www.businessinsider.com/millennials-want-cheap-ethical-diamond-engagement-rings-2018-5?r=US&IR=T[Accessed 13 of December]
- Hecht A. (2019) Tiffany Beat Profit Expectations and Conflict With the Idea that Millennials aren’t Buying Diamonds , CNBC [Internet] 29thAugust Available from https://www.cnbc.com/2019/08/29/tiffany-beat-expectations-but-millennials-still-arent-buying-diamonds.html[Accessed 16 of December]
- King S. (2016) Tiffany & CO: Leading the Way in Ethically Produced Jewellery ,Telegraph[Internet] 18thNovember Available from https://www.telegraph.co.uk/luxury/jewellery/tiffany–co-leading-the-way-in-ethically-produced-jewellery/[Accessed 15 of December ]
- Mintel (2019) Jewellery & Watches Retailing [Internet] Available from https://academic.mintel.com/display/979272/?highlight#hit1[Accessed on 13 December]
- Minthe K. (2019) Tiffany & Co is Very Serious About Sourcing Ethical Diamonds, Vogue[Internet] 15thJanuary Available from https://en.vogue.me/fashion/fine-jewelry/tiffany-diamond-source-initiative-sourcing-ethical-diamonds/[Accessed 15 December]
- Sustainable Brands (2019) Tiffany & Co. Begins New Era of Diamond Transparency, Sustainable Brands [Internet] Available from https://sustainablebrands.com/read/supply-chain/tiffany-co-begins-new-era-of-diamond-transparency[Accessed on 15 of December]
