Right Hand Ring Campaign

De Beers created a massive business empire by manipulating both supply and demand in the diamond market through controlled scarcity and sophisticated marketing campaigns that transformed cultural norms around diamond ownership.

Core Business Strategy:

• Control diamond supply

  • Own 90% of supply through mines
  • Intentionally restrict production to create artificial scarcity
  • Use site holder system - only 200 approved buyers
  • Aggressively acquire or destroy competing mines

• Create artificial demand through marketing

  • Hired Madison Avenue agency in 1936 to create demand
  • Positioned diamonds as symbol of love and masculinity
  • Created "Diamonds are Forever" campaign
  • Implemented country-by-country marketing playbook
    • US: Grew from 0% to 90%+ engagement ring penetration
    • Japan: Grew from 5% to 60% bride penetration in 20 years

• Prevent resale market

  • Ban merchants from buying back diamonds
  • Hide that diamonds lose 50% value after purchase
  • Position as family heirlooms not to be sold

• Create new purchase occasions

  • Right hand ring for independent women
  • 25th anniversary ring
  • Upgrade ring for showing success

• Combat lab-grown competition

  • Initially denied legitimacy with "Real is Rare" campaign
  • Created Lightbox brand to undercut lab-grown prices by 90%
  • Position lab-grown as for "emotionally shallow events"
  • Maintain perception of mined diamonds as premium product

The business succeeded by creating and maintaining the illusion of diamond scarcity and value through supply control, marketing, and aggressive competitive tactics.