De Beers has updated its sales model to enable more businesses to purchase its rough diamonds through Global Sightholder Sales. Announcing the changes, the company said the updated allocations model for the March 2015-2018 contractual period will involve a new method for determining GSS’s rough diamond customer base through the introduction of a simplified, compliance and demand-based customer qualification process.
In addition, it will adopt a more flexible sales approach through which nonsightholder diamond businesses will have opportunities to purchase rough diamonds from GSS. De Beers Group CEO Philippe Mellier said the sightholder system has been at the heart of the company’s selling model for decades and will continue to be central to its approach in the new contract period.
“However, the changes we are introducing will provide greater flexibility in purchasing opportunities at De Beers. They will enable those expressing strong demand for the rough diamonds to buy them on a term contract basis as sightholders, while also offering more opportunities for nonsightholder diamond businesses to demonstrate their demand.”
“The more rigorous financial and existing ethical compliance requirements will also help to reinforce third-party confidence in the strength and transparency of GSS’s customer base.”
Around 90 percent of De Beers‘ rough diamonds by value are sold through GSS.