The research will focus on the global jewelry and asset diamond industry. In addition, this research will help to figure out the existing structure of the global diamond industry, and it will determine how to increase the retail market of diamonds in the United Kingdom. Alongside, this structure of the diamond industry has faced some significant issues instance, the conception of diamonds as an extravagance element, the discussion over “conflict diamonds,” and it figures out the rough-diamond cartel in the retail market in the UK. This research will aid in identifying the background of the research, and it will also help to comprehend the research aim. In addition, the research objectives will be used to identify the particular scenario of the retail market of the diamond. Besides, it will sketch an outline of the research question and literature review, and gap. Furthermore, this concept will highlight the challenges of the retail diamond market, its previous structure, and the current scenario. Besides, it will help to reduce the barrier of the retail market of diamonds and will describe how to increase the proactive outcome of the retail market of diamonds in the UK.
Background of the study_300
The report has described that it has altered the way British diamond companies trade with major centers like Antwerp, including with markets across the globe. The De Beers diamond cartels required alternatives to delayed diamond commerce in Europe during the late 1930s (De Vries, 2020). From the innovative Kimberley system for development to new rules on valuation tax, the changes have a big impact. That was a good year for the even diamond marketplace popular 2000, through De Beers’s transactions success a new highest of $5.67 billion, an 8.2% growth completed the prior chief set past 1999. With some experts forecasting that there might be a shortage of diamonds in 2001, the perspective for jewellery prices was still nice, especially in larger and improved stones. Revenues and profits were down for the rest of 2001, but price cuts were best than last year and much stronger than anticipated. Diamonds from the business, De Beers, were purchased in 2001 for $4.4bn. Despite the devastation caused by insufficient jewellery prices during the last resource significantly, it is essential that financial experts grasp the reasons (Tolosa Olazabal, 2019). This decision to make the viewpoint for diamonds for the new year positive, with cutting centres having to run out of diamonds.
Figure 1: DIAMOND PRICE CHARTS FOR ROUND DIAMONDS
(Source: Pricescope.com, 2022)
Graph financial information from 1960 to 2016 indicates how diamond prices had gone up over the last 55 years, from when they were first forced to sell to as they were sold. Since 1960, diamond prices have increased about 14% every year. Alongside, +14.47 %: Diamond prices and value grew each year from 1960 to 2016. The above would be like a compound rate of interest of 4.3% every year. Historical results do not forecast how well the next duration will go. In addition, in the same way, that local shops work today, financial institutions manage to keep jewelry or cutlery as assets. During the financial collapse in Venice in the 1500s, a number of financial institutions were discovered to have a number of useful jewelry. This is similar to how things work presently (Michail, 2021).
Figure 2: Revenue of De Beers from 2011 to 2021
(Source: Statista.com, 2022a)
In 1888, when Cecil Rhodes decided to start De Beers as the British entrepreneur and political leader in South Africa during the period. The firm is now based in London. Anglo American, a transnational corporations mining company, controlled De Beers later in August 2012; once it accepted the Oppenheimer relations, 40% post in the business, giving it 85% of the business (Statista.com, 2022).
Figure 3: Distribution of rough diamond production worldwide based on carat in 2019, by country
(Source: Statista.com, 2022)
Moreover, this altered when the United Kingdom left the European Union single market on December 31, 2020, so these changes happened. When the UK left the EU 11 years ago, on January 31, it began the process termed “Brexit.” It reached a trade deal with the EU just a few days, even before time was up. The agreement states how the two individuals will exchange with each other ever since they end the relationship. Just after the Brexit vote, its sector saw a drop in yield of 1.1% in November 2016 (Malik et al., 2019).
Aim of the study_20
The research aims to focus on the existing arrangement of the global diamond business and the increase of the wholesale market of diamonds in the United Kingdom.
Objectives of study_30
- To review the existing structure of the global diamonds industry.
- To analyze the retail market of diamonds.
- To evaluate the efficiency to enter the diamond industry of the united kingdom by suitable market entry mode.
- What is the existing structure of the global diamonds industry?
- What are the challenges of the retail market of diamonds?
- How to enter the diamond industry of the united kingdom by suitable market entry mode?
This analysis has described that thousands of workers were protected from mining diamonds individually. Diamond withdrawal in states with unsteady governments inspired the practice of diamonds to deposit terrorist actions (Crawford and Holaway 2020). A “global precariat” is a group of workers who are oppressed, suffer uncertain employment situations, and low pay. Furthermore, it explores how shifts in the country, international capital assets, and people struggling to make up on behalf of the shortfall in times of political and economic improbability can influence individuals’ capacity to locate work. The diamond mining businesses, as well as how the government is trying to stop them from using it (Rodrigues et al., 2018).
The existing structure of the global diamonds industry
In terms of ability, diamonds are indeed the challenging things on Earth but are very important as diamonds. In 2019, mines it around the world and made 142 million carat diamonds gems. That is how it works: Australia, Canada, Botswana, South Africa, and Russia are among the global highest production companies. There have been assumed to be 1.2 billion carat diamonds in the world. Russia has more gems, with 650 million carat diamonds (Statista.com, 2022). Purchasing diamond jewelry is a really significant tradition. In the circumstance of the proper diamond bazaar, the exertions to progress fairly exported substitutes to the immense moral product anchorages that control the amount stay, but sighted them as controlled by and in relative to these greater judgments and control players delivers a significant background (Hamilton and Cavello 2021).
Figure 4: Global diamond mines
(Source: Petradiamonds.com 2022)
Following these changes, individuals in the diamond industry it has started to embrace and use more open methods that are based on what the industry is telling them. The relationship between the individual in the diamond industry has already been moving away from becoming based on a social media network or towards being predicated on the market system. As a consequence, an old diamond cartel that had been around for a very long period of time was destroyed. For these threats, De Beers changed its strategic approach from where they have been coming from to where they have been going (Chan et al., 2020). The international diamond trade is a massive business that has a significant impact on countries all over the world. Diamonds are minerals that can be discovered and mined in almost all of the oldest and most difficult or impossible places on Earth, like Africa, Asia, and South America. Individuals are also discovered and mined there. Growth in global trade used to be very slow for a long time, just after the worldwide downturn and breakdown in trade in 2009. And although trade started picking up in 2010, this only grew 2.7% each time for the next six centuries, as well as a 1.4% growth in 2016. There has been a lot of room for growth over the last 30 years. However, this growth rate is really not near the 4.7% average annual growth rate since 1980 or the 6.0% average rate from 1990 to 2008 (Keck et al., 2018).
Challenges of the retail market of diamonds_300
Most common obstacles to entry include setup costs, specific licensing needs, consumer service, and the brand recognition of other businesses already operating in the market. Alongside, diamond mining must have done some damage to the climate because of poor planning and lax control. It has done a lot of problems both for land and water. For this unethical mining, soil degradation and forest destruction have occurred, and people in the community have indeed been forced to move. Numerous countries address similar challenges in this industry; a few of these challenges is a lack of sufficient financial support, which is a challenge that so many nations suffer. Hence, it is suggested that governments promote renewable energy sources in their country’s energy strategies to fight these challenges (Fang et al., 2018).
Figure 5: Market share of the leading diamond mining companies worldwide in 2020
(Source: Statista.com, 2021)
The diamond market can do well in the long run, even though there are a lot of short-term difficulties. The phrase jewelry is derived from the term “jewel” and is believed to date back to around the 13th century. Individuals have managed to wear jewelry for a really long time. Some jewelry made from shells discovered in recent times is assumed to just be 1,00,000 years old. They are assumed to be among the oldest known jewelry researchers know of. Jewels or diamonds are used mostly to design and beautify (Thakor and Parmar, 2021). The diamond industry has to deal with political risks, clear indications of a recession, and small marketing support, particularly for special and reduced jewelry, in 2019 and 2020. On the other hand, the luxury branded diamond jewelry section, which also makes up 15% of the overall diamond jewelry market, is assumed to do really well, going to grow at a rising high single rate. This is in line with the growth of individual luxury products, which have become more popular. Diamonds have been gathered in remote places of the world, and they cannot be traced place to place from. The above is difficult to keep the circuit as to how diamonds start moving all around the globe. As a consequence, there is not a set timeline for how diamonds progress from the mining company to the consumer. So every diamond can alter hands multiple times, and industries often collaborate on the belief of confidence with no paperwork. Those very methods are created worse by poor data coverage at the national level, for which demand, transfer, and manufacturing facts are often made.
Enter the diamond industry of the United Kingdom by a suitable market entry mode_300
In several marketplaces, buying a new small industry could be the best way to get started. A great many people do this because the company seems to have a significant market share, is a competitor, and because of government rules, the business has no further choice. Research is rare and expensive, but there is not really a single conceptual basis that can be used to demonstrate why risk is focused in the UK financial system, how lack of certainty could perhaps spread through partnerships between the UK marketplace, and which connections would be the lowest if any market participants seem to have problems with money (Chabot et al., 2019).
Figure 6: Suitable market entry mode
(Source: by self-created)
Throughout this scenario, direct exporting can also be called sales; this is what this is. It means that as the owner of a product in the market. Direct exporting is when individuals send their own goods or products to some other country. For several business owners, it is the quickest way to do business in another country. Direct investment is one of the most important parts of today modern globalization campaign. It also is an origin of the outside profit that works to help to boost the economy. It really is linked to multi-national businesses that spend across borders (GOLD et al., 2019).
Licensing and Franchising
The explanation licensing contracts have been chosen over the other ways to get into the market is only because they wish to avoid tariff barriers, so because the product is unique, and also because the market is big. Alongside, licensing agreements probably involve relationships with much more technical skills than vendors or franchisees since they need to figure out how to make the service they offer to make money (da Silva Lopes et al., 2019).
It is among the most common ways for businesses to get into global business if they do not even mind losing their product, understanding, and expert knowledge to collaborate with other business owners. Businesses who want to get into new international markets can form a joint venture with local businesses in the country where they want to do company. All partnerships share the same benefits and costs of the company or organization. Alongside, real diamond industry joint ventures are indeed an element of strategic alliance which is used everywhere in the world to accomplish massive and complicated research projects (Tetteh et al., 2020 ).
The supremacy of the strategic acquisitions and the several companies improved, realigned assets, and happened to change their business. Acquisitions are a lot, but three components continue to come up in connection to how a business is changing its approach (Oliver, 2018).
Foreign Direct Investment
It is a kind of cross-border strength in which a business owner from one country has long-term attention or a lot of skill over a venture from the extra world. Foreign through asset is unique of the financial notions that stand understood as the factors of financial growth of the realms in the background of the marketplace budget (Tocar, 2018).
Gaps in analysis on marketing and financial incentives demonstrate there may not be a great deal of research on new and emerging technologies in this location. This need for research in general and study on gambling objectives have been two key areas where there seemed more like a need for data analysis. In aspects of technique gaps, these have related to subjective and conceptual studies, as well as the need for better primary outcomes and much more reflective groups of individuals to research. This analysis describes there has a gap throughout the jewelry market knowledge on the need for advertising and opportunities (Oliver, 2018). There are enough numerous researches on this topic because few studies have concentrated on the jewelry market in the United Kingdom. In those other words, by concentrating on this topic, researchers can learn more about how gems are becoming much more popular inside the global market and how marketing strategy could indeed help explain this. This research looks at investment opportunities for real diamonds in area of London in the United Kingdom, where there are a lot of companies in the market selling precious gems. The above gives companies a chance to grow as well as meet customer demands.
|1st week of May||2nd week of June||3rd week July|
|Formulating aims and objectives|
|Literature search and review|
Numerous different aspects of the subject were explored, and the existing literature was used to identify the areas in which there were gaps in previous studies, as per the conclusions. There are many more business opportunities for genuine diamonds in the London borough of the United Kingdom when researchers use this tool. All of the business prospects have been discussed, and how it can impact the competitive industry. With support of the usual justification, a good deal more research has been done on the marketing plan and cross-cultural impacts in purchasing than previous. The marketing mix, marketing, and placement are all issues that have been addressed as elements of this discussion. It also have discussed London borough, the issues companies confront, the development in technology, and how it influences business, among other subjects. Alongside, this research can highlight obstacle which helps to reduce the barrier and it can bring the productivity in the real diamond business in globally.
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