1	Profitability Problems in the Diamond Industry A suggested solution based on “new diamond cuts” to develop better brands
2	Diamond Cut – the Way Out The problem – a lack of differentiation We need better Brands (What is a brand?) Today's Cut grading – the way out The Master Stone Study OctoNus inside
3	Branding & Supplier of Choice 66% of all business - still rounds & princess $$$ wasted promoting new patented Cuts “the most firey & brilliant diamond ever!” No way to verify cutters hype New design and innovation are stymied
4	A slippery slope to oblivion Squeezed < margins Between miners & Wal-Mart etc
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9	Building Luxury Brands Consumer needs: functional and emotional Diamonds meet emotive needs Functional doubts kill sales Carat, Colour and Clarity are OK Cut Quality is confusing & frustrating Very few cuts have any Cut quality grades GIA Excellent can be AGS 5 AGS 1 can be GIA Fair Consumers are not fools
10	What is a BRAND Brands only exist in a customers mind A brand - an ‘identity’ we can ‘recognize’ Today only a few labs and retailers have any recognition or ‘recall’ in consumers minds Designers and makers- not retailers usually became a ‘branded identity’ in most markets Most ‘brands’ started as creative makers They satisfied an unseen need The idea of the brand grew in retailers and consumers minds
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12	Master Stone Study MSS to align human / computer light responses Research branding 1^st & 2^nd stage Branding promotion USA ? Japan? India ? IDCC conferences / GIA Symposium / Pricescope Conference & other non direct promotions
13	“You can not solve today’s problem with the same thinking that created the problem” Albert Einstein Same grading scale for all cuts and sizes Same computer design & Cut grading system Less marketing costs for each new fancy cut Smart manufacturers gain a market identity & consumer recognition Different diamond, different manufacturer, different consumer (like cars). Become Mercedes, Toyota, Honda, BMW
14	GIA Excellent = AGS 4
15	MSS - Master Stone Set
16	ETAS Effective Total Angular Size
17	Lessons of human psychophysiology Diamond light can not be measured with objective tools (BrillianScope etc) Must be subjective, as by human eyes As perceived by the human brain
18	ASET & Ideal-Scope This square carré grades as Excellent It looks as good as the round ? Yes? No?
19	The Carré is Bad ASET and Ideal-Scope are good for rejection. Not for grading
20	Carré ETAS is bad
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22	D-ETAS
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24	Black Zone
25	Dark Zone: nail head obstruction and leakage e.g. we think leakage and black star make good contrast?
26	"ETAS – measures the probability..." ETAS – measures the probability of seeing (or not seeing) sparkles of light coming from all SPACE around the diamond ETAS accounts for all human and environment factors (e.g. diamond size, pupil size, eye resolution, light source size etc.) Computer Light Return and tools like BScope do not All ETAS are quantified & used to grade or improve new cuts. Better than Tolkowsky = 1.00 is possible ETAS is like a diamonds Karma Good diamond Karma - more scintillation and fire
27	MSS - Master Stone Study
28	Development of cut Beauty system
29	Computer correlation to human observations
30	Check real stones for fire
31	Software correlation vs Real people
32	“You can not solve today’s problem with the same thinking that created the problems” Albert Einstein We propose a totally new solution The same scale for any cut and size CAD system, with grading for new fancy cuts Less marketing cost for each new fancy cut Each manufacturer gains a market identity & consumer recognition Different diamond, different manufacturer, different consumer (like cars). Become Mercedes, Toyota, Honda, BMW
33	Thank you for your interest Please contact any of the Cut Group: Garry Holloway garryh@ideal-scope.com Sergey Sivovolenko serg@next.msu.ru Janak Mistry janakmistry@hotmail.com Yuri Shelementiev yuri@diamond-market.ru