The Israel Diamond Institute Group of Companies (IDI), launched today at BASELWORLD a new multi-faceted strategic marketing program for the diamond industry. The "Together Works", campaign seeks to highlight and develop cooperation among the industry, and includes print and online advertising in leading trade publications and websites.

Eli Avidar, IDI's Managing Director, talked about the effects of the economic slowdown on the diamond industry in Israel and all around the world. Avidar also unveiled IDI's new blog through which it hopes to develop an online B2B diamond  community. The new blog will create a networking place for the industry and media to share ideas, issues, scoops, and communicate directly with Israel.

This stage of the "Together Works" includes the launch of a toll free number in the US – 1888 24-WORKS, that offers wholesaler, retailers or manufacturers direct access to all Israeli diamond suppliers. The 1888 number will operate 24/7and serve as  a direct B2B connection for ongoing and new clients to reach out to IDI with their immediate diamond purchasing needs. The requests will be uploaded to IDI's portal and all Israeli diamond companies with the goods being requested will  receive text messages so that they can respond immediately with their offers.
 
The toll-free number will also serve as a service center for trade inquiries regarding general information on buying diamonds in Israel, and special offers for buyers.

With IDI's new blog, free information hotline and wide advertising program, Adivar said the "Together Works" doesn't stop there. Avidar promised that throughout 2009, more promotion and cooperation projects will take place.

Bright Optimism

Avidar was pretty optimistic and confident about Israel's diamond industry strength and innovation spirit: "The IDI was among the first diamond organizations to point to India and China as the main diamond markets of the future and we have not lost faith in these markets despite the current slowdown. These two enormous economies hold an almost infinite potential for growth in consumption, particularly in luxury goods. Despite the meltdown, diamonds and diamond jewelry are still in demand there and will become even more so as these markets emerge from the economic downturn."

Avidar explained that thethe main goal is to furnish the diamantaires with all the necessary tools to help them survive and even thrive during these difficult times. "We are helping them to help themselves and in this way gain expertise and experience through this economic crisis", Avidar summed.

When the economy is in crisis marketing tools are more crucial than ever.

In contrast with the common attitude of many companies, marketing during economic slumps should be stepped up and not necessarily cut back.  In the event that your firm is in desperate straits, it's time to call in outside help and bring in financial experts, but if your business is managing to stay afloat, then it's advisable to revamp your marketing strategies.

In a highly dynamic market there are two accepted environments:  the "blue ocean" which is calm and cool, and the "red ocean", full of hungry rivals hunting for every customer and turning the waters red with the blood of their competitors.

How to swim in a "red ocean"

When the situation is a "red ocean", many companies are compelled to battle for their

position in the market.  Large-scale operations are advised to expand and take advantage of the opportunity to acquire more companies and seek a bigger share of the market in this manner.  Adversely, if a company's advantage is in their low prices, then it is an ideal time to boost efficiency within the operation and offer even better bargain prices.  If your company provides specialty or rare products then you have an advantage over non-specialized companies and you should take action to ameliorate   your particular niche.

What about companies that don't have unique selling points?  Or enterprises that aren't

able to offer bigger bargains? What can these companies to do improve their status    during stormy economic times?  This would be an ideal point to put on the thinking caps and be creative by searching for an additional feature or value that others don't have yet.  For instance, recently a manufacturer of men's tailored suits launched an innovative new product:  a suit that does not require dry-cleaning.  This definitely qualifies as a unique and perhaps even revolutionary development in men's clothing.

Diving into the "blue ocean"

In this situation the methods are different but similarly encourage seeking new markets.  A good example of this would be for a car dealership to target potential new customers who aren't licensed to drive yet, and offer to sponsor their driving lessons after they pass their driving test and are ready to buy a car from his dealershi.

Marketing experts agree that during economic recession businessmen must resist the temptation to cut back on advertising; in fact it is the ideal time to pullout all the stops and advertise more than ever. At times when patrons are counting their pennies, as in today's economic crisis, advertising should be heightened and broadened and virtually grab the attention of potential clientele.

Professor Yeshayahu Yarnitsky is one of the few people that made a truly decisive contribution to the basic technology of the modern diamond industry. During the 1950's, after completing his doctorate on fluid rockets, Prof. Yarnitsky sought an area that would enable him to promote the fledgling Israeli industry through Research and Development. The diamond industry at the time was a young industry that thirsted for development and the professor decided to invest all his efforts in facilitating it.                                                                              

In 1964, Prof. Yarnitsky established a laboratory in the framework of the Mechanical Engineering Faculty at the Technion in Haifa as well as a laboratory in Ramat Gan. These laboratories served as the preliminary basis for the Israeli Diamond Institute, which was officially founded in 1967. Initially, he put all his energy into the development of small accessories to improve the work station. But he soon came to a far-reaching conclusion, that the machinery necessitating the transition to innovative work methods would have to be developed.

Over a period of 40 years, Prof. Yarnitsky invented a series of machines that fundamentally changed the face of the diamond industry in Israel and abroad. The first machine was an automatic polishing head which he invented in the 1950's. This was followed by the “Rondist” polishing machine. The most outstanding machine was the “dynamometer,” which enabled a deeper understanding of the diamond cutting and polishing process as well as the introduction of improvements in every stage of the process. Subsequently, Prof. Yarnitsky invented automatic bruting and sawing machines. Recently he and the staff of the Israeli Diamond Technology Center (IDT) have been working on a fully automatic polishing machine for which he has great hopes.

Prof. Yarnitsky recently celebrated his 80th birthday, but his thinking is still innovative and progressive: “At the beginning of the road all the tools were primitive. I had to invent machines for each of the diamond processing phases. But beyond that, an industry that aspires to be a leader must rejuvenate its methods and instruments every few years. It can not allow itself the luxury of marking time.”

Prof. Yarnitsky believes that the time has come to incorporate hi-tech in the diamond industry. He anticipates growing problems in two areas: raw materials and increased diamond manufacturing in the Far East due to inexpensive costs. Both of these challenges can be overcome with the help of sophisticated innovations that will make manufacture in Israel less expensive. The latter, which already exist, will enable innovative diamond processing. To achieve these goals, out-of-the-box machinery and processes must be developed.

Prof. Yarnitsky adds: “For 15 years we have not developed significant new methods or tools in the diamond industry. It is time to herald in a new era. We must build a new diamond industry in Israel by incorporating methods that have never been seen before here or abroad." He has every intention of reinventing the wheel in order to reinstate the Israeli Diamond Industry as the indisputable leader of the world diamond industry. This will be achieved within 5 years, he says. We certainly intend to stick around and check it out.