EC Approves Supplier of Choice

[pricescope]

From Professional Jeweler

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The European Commission formally cleared the De Beers Diamond Trading Co.'s Supplier of Choice strategy on Jan. 16, after a 19-month review.
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Supplier of Choice, which DTC expects to be fully functional by mid-2003, is the company's plan to grow demand for diamond jewelry and make the diamond distribution system more efficient. It proposes requiring its clients, called sightholders, to develop a direct pipeline to distribute the diamonds. Under the new system, DTC also will require sightholders to initiate marketing and branding ventures to increase the "noise" about diamonds in the consumer marketplace. Finally, all sightholders will be required to comply with a series of Best Practices Principles enunciated by De Beers, to spread ethical accountability and professional standards throughout the diamond industry. This last measure is meant to reassure consumers diamonds can be purchased with confidence.

In return, DTC is offering the sightholders who fulfill these criteria the chance to get a consistent supply of rough diamonds in the qualities and quantities they need, as well as DTC's marketing advice and consumer-research data.
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