Defining a Growth Strategy for a Leading Exporter in Loose, High Quality Diamonds
Background and Challenge
The client, a leading exporter of diamonds, wanted to evaluate the potential and market size of high carat diamonds (above 0.5 carats) in the domestic market. It turned to UC to define a clear strategy for growth in the domestic market for the same product range. The parameters to be studied included potential regions for expansion and other supply chain aspects like sourcing etc. However, a key area of concern was the impact of policies and trends in the world market for the sourcing and supply of rough, uncut diamonds to polishers.
Approach and Recommendations
To define the growth strategy for the client, UC adopted the following approach:
- Conducted an in-depth secondary research to understand characteristics and trends in the diamond market in India and around the world
- Interviewed the heads of several prominent diamond exporters, traders, dealers, cutter and polishers, retailers and end consumers to understand the working and demand drivers of each entity in the value chain
- Studied the impact of policies, both domestic and international, for Indian and International market supplies and demands
- Studied the impact of rising centers of cutting and polishing (internationally), apart from India
- Profiled potential and existing competitors to study their existing strategies employed
- Defined a marketing strategy and a set of initiatives for regional penetration as suppliers of good quality, high carat diamonds
- Defined the organisation structure and the sales process to ensure penetration
- Defined the scope of the organisation and the role it should play in the value chain to be competitive in the future.
The client received an in-depth understanding of the market and an implementation plan to penetrate the market with its diamonds of high carat range.