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Turkey is Among World Brands in the Diamond Sector
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Mehmet Ali Talat, who, in February 2004, became the prime minister of the coalition government established in the Northern Cyprus after the elections continued negotiations with Secretary General of the UN Kofi Annan and Cyprus Greek section leader Tasos Papadopulos. Even Rauf Denktaş attended the meeting. At the very beginning of the negotiations, on Kofi Annan’s wishing to offer coffee to the leaders, they were asked whether they wish Turkish coffee or Greek coffee. After a moment of silence, Papadopulos answered. Papadopulos laughed "I want Turkish coffee, because there is not any Greek coffee", because the entire world knows the "Turkish" type cooked coffee as "Turkish Coffee". Although Turkey is not a coffee producer country, it succeeds in putting Turkish name in front of coffee with its cooking style. Diamond sector experiences something similar today. Although Turkey is not a diamond manufacturer country, Turkish jewelers take the lead with their peculiar workmanship to take part among the world brands in this field.
Turkish diamond market shows a fast growth trend compared to the world. Although diamond sales increased three fold in the last 25 years throughout the world, such increase was twofold in Turkey in four years. It is estimated that retail sale value of diamond jewelry market of Turkey is 816 million dollars. ZEN Diamond General Coordinator Yiğit Akgün said “Turkey is bigger than European market apart from Italy, and retail amount grew by 5 percent as diamond market".
An important factor that allows Turkey to compete with the World in this field is branding of course. Today, several producers are far away from being content with selling to foreign tourists in and around the Grand Bazaar. The producers who form their own brands and open themselves to the world with department stores open shops on famous avenues which center luxury consumption products. Of course it would be unfair to ignore the quality of the workmanship. Producers following the world trends undersign various collections with local motifs inherited for generations. Ariş Marketing Director Rafi Döker says "Now collections are in question" and adds: "Of course this is the natural course of development resulting from brand investment and department stores. Consequently, it is quite natural that we undergo such a development in diamonds".
The General Director in charge of Department Stores of Atasay Jewelry, Haldun Ulutürk, underlines another subject for development of the diamond sector. He says: "The most important factor in such growth is the increase of confidence by women in diamond jewelry" and continues: "With revelation of the brand jewelry producers in the last 10-15 years, standardization was started in jewelry production, reimbursement guarantees were given, and thus confidence of the consumers in jewelry began to be formed."" Of course sector players rose their market shares either within the country or abroad with their new leaps in the marketing field. Sector players who ensured that diamonds are more visible in our daily lives using different marketing techniques not only sold over the internet, but also fed such trend with sales on installment and over a campaign.
Heavy Competitive Conditions
Today, Turkey is among the notable countries of the world in gift of gold and jewelry export. Turkey holds the third place after Italy and India in the world listing. However, competitive conditions in this sector which is not considered much. For example De Beers is the biggest player of the jewelry sector, and this giant holds nearly 90 percent of the raw diamond mines of the world. This is not the only problem of the sector, which is dependent on outside sources in that sense. The high Special Consumption Tax applied on Jewelry makes the producers undergo much trouble. Several countries of the world see diamond not as a consumption material but a method of saving. On the other hand, Turkey deems diamonds luxury consumption and imposes high rates of Excise Tax.
Turkish coffee, which is drunk in several countries from Greece to Arab countries, will continue to be known as Turkish coffee no matter what they try to name it. But Turkey has the potential to create brands in several areas apart from coffee. She should just preserve her own assets.
Source: Businessweek Magazine |
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