Research: Luxury Yewelry At Its Cross Road

LUXURY JEWELRY AT ITS CROSS ROAD

NATHALIE LARSSON BA Fashion Marketing and Communication, Level 6, 2018-2019, Major Project Research - CWK 2, Teachers: José Guerrero, Teresa Buhigas and Enric Bayo Word count: 7652

LUXURY JEWELRY AT ITS CROSS ROAD

FIGURE 1: Diamonds and luxury stones, (2018) pintrest

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NATHALIE LARSSON

Abstract The world is at a crossroad where old values and company morals need to evolve to fit a more humanitarian agenda. With higher living standards, luxury jewelry consumption is at its highest. In only eight years, the market revenue has doubled, and from future forecasts, one can determine that the market is far from its peak. People are more educated and concerned about wellbeing, conditions of workers, and the environment of our planet.

Today consumers are realistic and need transparency in order to stay loyal to a brand.

Therefore, the industry is in need to refine itself or face the consequences.

This paper will seek to evaluate the contradictions of the luxury jewelry industry and go beneath the luxurious surface to identify and justify it.

Agnowlagement The author would like to express gratitude to the tutor JosĂŠ Guerrero that given significant support throughout the process of writing and to his eye-opening aspect into critical thinking. Thank you, to the specialized tutor, Julie Foale that supported the author with dedication and passion within academic writing. To my father that motivated the author to choose this topic and to his passion for the jewelry industry that inspired to find the purpose of this dissertation.

The author assures that this dissertation is written in own words and follows the University guidelines and regulations on plagiarism.

Word count: 7652

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LUXURY JEWELRY AT ITS CROSS ROAD

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Table of Contents 1 . IN T R O D U C T IO N 1 . 1 MO T I VAT I ON

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1 . 2 G E N E RA L A IM

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1 . 3 R E S E A RC H O B JE C T IV E S

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1 . 4 L I M I TAT I O N S

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1 . 5 R E S E A RC H Q U E ST IO N S

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1 . 6 . RE S E A RC H ME T H O D O L O G Y

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2 . LI T E R AT U R E R E V IE W ST R U C T URE AND REFRENCES

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2 . 1 L I T E RAT U R E R E V IE W

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2.2 KEY FINDINGS

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3 . DATA R E S U LT S

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4 . DI S C U S S I O N A N D C O N C L U SIO NS

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5 . RE F E R E N CE S

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6. APPENDIX

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Figure 2: VALENTINE’S DAY CAMPAIGN (2018) SWAROVSKI

1.1 Motivation This dissertation concludes a trip through history in order to understand why people are drawn to gems and elements such as gold and diamonds. It will investigate how huge companies operates within the luxury jewelry segment and look into laboring rights and fair trade. When gathering the facts it will argue for how the market needs to take its responsibility in ethical thinking and create more transparency in how it operates. The main objective with this dissertation is to raise awareness of critical consumerism and open new avenues for the luxury jewelry industry.

1. IN TR O D U C T I O N

The motivation for this essay was raised from the author’s experience as a creative designer for the Swedish jewelry brand, Scoop.

With much time spent in the industry, a concern came with the fact that most of the established brands are not aware of the origin of the luxury materials sold.

1.2 General Aim The aim of this dissertation is defining and evaluating the jewelry industry paradigm where a storytelling is replaced within the manufacturing processes. With an aim of being able to include sustainable, moral and ethical elements in order to be one step ahead of the market and future critical consumers. The purpose of this paper is to review recent studies to be able to unravel new avenues for the luxury jewelry industry.

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FIGURE 3: PHENELOPE CRUZ (2019) SWAROVSKI

NATHALIE LARSSON

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LUXURY JEWELRY AT ITS CROSS ROAD

FIGURE 4: AFRICAN, BLACK & DIASPORIC HISTORY (2011) 8

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1.3 Research Objectives

The objectives in this research are determining:

1.

IDENTIFY THE NATURE OF THE VALUE OF JEWELRY PIECES.

2.

UNDERSTAND THE ORIGIN OF LUXURY JEWELS AND WHAT IS BEHIND THE QUALITY CONTROLS.

3.

ANALYZE THE IMPACT OF MARKETING ON JEWELRY CONSUMERS

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APPROACHING AND CONSULTING TO OPEN NEW AV-

ENUES FOR THE JEWELRY INDUSTRY TO INCLUDE TRANSPARENCY AND SOCIAL EMPATHY.

1.4 Limitations During this research a few issues came up due to the lack of information around certain topics. When digging deeper into the history of western colonization and its impact on the jewelry industry it’s hard to get the specified information that is desired. If you glimpse at thoughts on the internet made by individual experts you can find statements that supports the recurrent corruption in the industry therefore the author has been selective chosing sources. As a result of the secretes and inability to overlook the work behind the scenes, it’s difficult for an ordinary observer to get the insight needed to establish the quality and conditions created in postcolonialism. Another concern is how to extract the withheld information of the jewelry market by regular customers. The acquiring of their knowledge is crucial in order to go in to depth with consumer behavior and corporate manipulations. This information will be established by constructing a survey that shoppers can answer in order to get the proper material for further investigation.

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FIGURE 5: RIHANNA (2017) CHOPARD

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1.5 Research Questions The paper seeks to raise following questions:

A.THE VALUE OF GOLD AND DIAMONDS

A.1 Why do these materials represent a qualitative and iconographic value of power?

A.2 How does the luxury industry operate depending on the country of origin?

B. THE ROLE OF CERTIFICATIONS B.1 What lies behind the certifications of gold and diamonds?

B.2 Who are the critical consumers entering the market?

C.1 What impact does marketing and storytelling have on consumers?

C.2 How can storytelling manipulate the consumer and hide the truth?

D. NEW AVENUES: THE CONCEPT OF SOCIAL EMPATHY D.1 -Today brands encourage love relationships which do not stem from the origin of the source. How can ethical behavior become valuable in order to create a new strategy displaying societal empathy? Can critical thinking in consumers be stimulated by the industry?

D.2 How can social empathy be used as a marketing tool?

D.3 How can brand transparency and consumer trust be developed?

E. NEW AVENUES: THE NEW LUXURY BRAND MODEL E.1 Luxurious brands have redefined their image of luxury and the old traditional concept has been criticized. Could this be a new strategy for the jewelry industry?

FIGURE 6: HUMAN CHAIN CONGO (2009) ELMUNDOENFOTOS

C.THE IMPACT OF MARKETING AND STORYTELLING

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LUXURY JEWELRY AT ITS CROSS ROAD

1.6 Research Methodology In order to attain the research objectives and answer all research questions within this dissertasion, quantitative and qualitative research have been formed. It is focusing on a considerate number of secondary sources such as essential books, articles, case studies, and documentaries. With the purpose to gain an understanding of the underlying values behind the luxury jewelry industry, its operation and define a possible new avenue including transparency and ethical values. In order to support secondary sources, primary sources will be created, such as interviews of a brand manager, gemologist, and a wholesaler. This will answer contradictions behind the industry and its luxurious surface. It has been crucial to investigate various theories and opinions to comprehend the extensiveness of the topic.

Therefore, the topic has been divided into three pillars: the iconographic value, the real contradictions behind the industry and critically rebranding the future of the luxury jewelry business.

A thoughtful Literature Review has aid to understand the context of the concept behind values, certifications, critical consumers, and impacts of marketing and storytelling. The literature review also unraveled new avenues for the luxury industry, such as the concept of social empathy and the new luxury strategy.

The Data Results has been focused on research the luxury industry's operation depending on origin, the manipulation of storytelling, and new avenues of social empathy and transparency.

The first primary purpose of the paper was to comprehend the value that luxury jewels consist of and deepen why these materials represent a qualitative and iconographic value of power. The philosophers Raj (2017) and Sneddon (2015) investigates the different concepts of value and how humans observe objects. Gold and gemstones have always represented a certain level of value, and in order to confirm this value, certifications have been formed. It was crucial to use authors that have described the topic of certifications in critical ways, due to its lack of transparency. Therefore, the old theories by the Sociologist Rothman (1971) have been reviewed and compared with newer editions by Rhode (2014) and the entity of GIA (2019) to go beneath the surface of its origin.

New consumers are entering the market and understanding how their new purchasing patterns works is crucial for this dissertation in order for a further investigation of redefining and justifying a new avenue for them. Therefore, the article by Jennifer-Lynn Archuleta (2016) was conducted where she is discussing the ethical issues and how the consumer's interest in ethical values are developing. Understanding the marketing and storytelling has an impact on the consumer was explored in the case study of Tiffany and Bulgari of Yan He (2011). However, storytelling can be a way for brands to hide the truth for consumers; this topic is investigated through the leadership coach Sadowsky (2011).

Implementing a deeper understanding of social empathy and the new luxury strategy was crucial to propose the new avenues of a transparent industry. Proceeding this research, a deepen investigating in the concept of social empathy and brand transparency was contented. Within this section, the two authors Harvey (2018) and Travis (2013) discusses how the concept of social empathy can be used as a marketing tool and the new paradigm of marketing. Nash et al. (2016) and Choo et al. (2012) are useful resources of optimism and to display that there can be a positive outcome of the new luxury strategy and the development of transparency.

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After understanding the literary background, a second part is built that investigates and collects data both primary and secondary. Within this part, an understanding of how the industry operates depending on different origins is formed. The process of diamonds and gold are highlighted due to their importance within the segment of luxury. The supply chain is studied from the foundation Miadonna Mieke (2018). Organizations such as The Global Witness report (2018) and Brilliant Earth (2018) discuss different viewpoints of the devastating impacts of conflict diamonds and gold primary in Africa but also worldwide. To support the topic of certifications from the literature review, data of what lies behind the certifications have been gathered from organizations such as GIA, Kimberly Prosses, and Minamata Convention. In order to form new avenues for the luxury jewelry industry, Javier´s (2018) study of empathic content marketing is adapted as well as how brand transparency can add value to consumers.

NATHALIE LARSSON

A.THE VALUE OF GOLD AND DIAMONDS

A.1 Why do these materials represent a qualitative and iconographic value of power?

A.2 How does the luxury industry operate depending on the country of origin?

B. THE ROLE OF CERTIFICATIONS

C.THE IMPACT OF MARKETING AND STORYTELLING

C.1 What impact does marketing and storytelling have on consumers?

C.2 How can storytelling manipulate the consumer and hide the truth?

D. NEW AVENUES: THE CONCEPT OF SOCIAL EMPATHY D.1 -Today brands encourage love relationships which do not stem from the origin of the source. How can ethical behavior become valuable in order to create a new strategy displaying societal empathy? Can critical thinking in consumers be stimulated by the industry?

D.2 How can social empathy be used as a marketing tool?

D.3 How can brand transparency and consumer trust be developed?

Data Results

Littearature Review

B.1 What lies behind the certifications of gold and diamonds?

B.2 Who are the critical consumers entering the market?

E. NEW AVENUES: THE NEW LUXURY BRAND MODEL

E.1 Luxurious brands have redefined their image of luxury and the old traditional concept has been criticized. Could this be a new strategy for the jewelry industry?

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LUXURY JEWELRY AT ITS CROSS ROAD

2. Literature Review Structure and Refrences

A B

THE VALUE OF GOLD AND DIAMONDS A.1 Why do these materials represent a qualitative and iconographic value of power?

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“Symbolic Value” (2015) by Sneddon “The concept of Value” (2017) by Raj “Diamond History and Lore”, (2018) by GIA

THE ROLE OF CERTIFICATIONS B.1 What lies behind the certifications of gold and diamonds?

• “The American Sociologist” p.125 (1971) by Rothman • “What is a GIA Diamond” (2019) by GIA • “The Kimberley Process is a perfect cover story for blood diamonds” (2014) by Rhode B.3 Who are the critical consumers entering the market?

• “The color of responsibility” (2016) by Archuleta

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C

THE IMPACT OF MARKETING AND STORYTELLING C.1 What impact does marketing and storytelling have on consumers?

• Brand Storytelling: A comparison of the brand stories of Tiffany and Bulgari” 2011, by Yan He C.2 How can storytelling manipulate the consumer and hide the truth?

• “A Response to negative views of Storytelling” 2011,

by Sadowsky

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D

NEW AVENUES: THE CONCEPT OF SOCIAL EMPATHY D.1 Today brands encourage love relationships which do not stem from the origin of the source. How can ethical behavior become valuable in order to create a new strategy displaying societal empathy? Can critical thinking in consumers be stimulated by the industry?

D.2 How social empathy can be used as a marketing tool?

• “Empathy, emotion and the customer experience” (2013) Travis D.3 How can brand transparency and consumer trust be developed?

• “Brand Transparency and consumer trust” (2018) Harvey

E

E.1 NEW AVENUES: THE NEW LUXURY BRAND MODEL E.1 Luxurious brands have redefined their image of luxury and the old traditional concept has been criticized. Could this be a new strategy for the jewelry industry?

• “Luxury Customer Value” (2012) Choo et al.

• “The Sustainable Luxury Contradiction: Evidence from a consumer study of Marine-cultured Pearl jewelry” (2016) Nash et al.

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LUXURY JEWELRY AT ITS CROSS ROAD

A. The Value of Gold and Diamonds

2.1 LI TER AT U R E R E V I E W

A.1 Why do these materials represent a qualitative and iconographic value of power?

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Gold and gemstones have represented a high value trough out history.

This value is multifaced and shares a lengthy historical background of religious meanings, exclusive limitations, mythical stories, and an intense production process. The study of the iconography and symbolism of gold and gemstones is imperative, in order to identify the nature of the value that lies behind the image of luxury jewels today.

“Symbolic Value” (2015) Sneddon A value can have many forms, such as moral values, product value or symbolic value. Gold and gemstones have always shared a high value in perception and price; the place to begin to understand this high value is within the nature of symbols.

According to Sneddon (2015), symbolic value adapts to how humans observe an object and create an interpretation of its meaning. The symbolic value claims as to the ground of reasons to judge and act in particular ways.

Sneddon (2015) accommodate the term symbolic value in three main components. The first one, the symbol itself such as an object, text or practice that represent something else. Secondly, is the interpreter who determines what it stands for, and thirdly, a ground of representation.

In addition, Sneddon´s (2015) study of symbolic value takes on value-laden connotations and symbols of the specific context that has added value.

“The concept of Value” (2017) Raj According to Raj (2017), The philosophical meaning of value is directly related to “a viewpoint”. The concept of value has different human viewpoints and attitudes. This aspect can depend on the different background of culture, childhood or associations. The values humans creates affects the basis of judgment, idea, moral imperatives and it ends in actions.

The word value has its origin from the Latin word “Valere” which means “to be strong” or “to be worth.” Raj (2017) describes value as the relative level of worth goodness, “it is an attribute that has intrinsic worth itself.” Raj (2017) Additionally, Raj (2017) establishes that the concept of value stems from personal satisfaction. Humans have always acted to satisfy wants. Therefore, anything which satisfies a human want becomes a value. By nature, all relations and behavior are embedded in values consciously or unconsciously.

“Diamond History and Lore”, (2018) GIA Gold and diamonds have always represented a high value due to the rare indestructible material. Religions have also reinforced that value to a greater connection of power. At present, these two materials have the most significant role in the jewelry industry.

GIA (2018) Describes that diamonds have portrayed the image of everlasting love for many years; in fact, it is the hardest substance on earth. Nowadays, the impression of a diamond has today a symbolic value of wealth and it is known to be the essential component in an engagement ring.

NATHALIE LARSSON

An Indestructible stone “Diamond History and Lore�, (2018) GIA

BACKGROUND INFORMATION

According to GIA (2018) the first diamond was discovered in India for approximately 6000 years ago where people viewed diamonds as a religious icon. The beauty, power, and hardness of the diamond was prized by the people, and some historians estimate that Indians were trading diamonds in the early fourth century BC. Diamonds have been found all over the world, and the ancient Greeks named the stone"Amadas" meaning "the indestructible." It was used as an emblem that the worriers of Greece wore to empower physical strength and give them fearlessness in battle.

Civilizations have cherished the diamond throughout time, and it has always represented an apostolic meaning of innocence and purity sent from the gods.

GIA (2018) explains that the first time the diamond was used as a wedding ring was during the Renaissance period when Archduke Maximillian gave Mary of Burgundy a diamond; however, this trend was only popular among royalties or the wealthiest.

The diamond engagement ring became an official declaration of love when the De Beers marketing campaign took place in the 20th century, and it quickly spread worldwide. De Beers focused on the diamonds sours of origin. De Beers created the revolutionary concept love , as a diamond is eternal; therefore, diamonds got its claim, "A diamond is forever." This claim made the diamond industry explode and the diamond became as a token for love. Today, most diamonds used come from Russia, Botswana, The Democratic Republic of Congo, Australia, and Canada.

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FIGURE 7: ENGAGEMENT (2007) PINIMG

LUXURY JEWELRY AT ITS CROSS ROAD

B. The Role of Certifications B.1What lies behind the certifications of gold and diamonds?

“The American Sociologist” p.125 (1971) Rothman Gold and gemstones have always represented a certain level of value.

In order to confirm and highlight this high value, certifications have been formed.

According to Rothman (1971), The concept of certifications is to achieve and clarify a certain level of value and quality of a product. Rothman (1971) describes the theory behind certifications that originates in the process of organized skepticism; a process during which any final judgment of the potential contribution is suspended in a frame of a specific field. The criteria of product certifications appear to be paramount, and they can vary between some attributes such as disciplines, validity, clarity, and consistency. However, the criteria of social sciences and humanities are less clear. Rothman (1971) suggests that social scientists place more effort in theoretical significance than transparency and ethical values.

Certifications convey a great sense of trust for consumers. It ensures a certain level of knowledge that lies behind the product they purchase.

“What is a GIA Diamond” (2019) GIA GIA is an independent, non-profit entity, considered to be one of the worlds highest standard gemological institute. Every diamond inspected by GIA is viewed by at least four expert gemologists that controls “The four C´s”; Cut, Color, Clarity and Carat.

According to GIA (2019) which is the leading issuer and most trusted certificate provider in the world, there is no certificate issued that ensures the laboring rights or that the diamond you purchase is not a “blood diamond.”

GIA (2019) Although since 2002 due to a coalition of governments and independent organizations the “Kimberley Process” was created with the purpose to control the import and exports of rough diamonds to ensure that all diamonds come from non-conflict areas.

“The Kimberley Process is a perfect cover story for blood diamonds” (2014) Rhode The stories behind blood diamonds entered the public consciousness more than a decade ago, however, little has changed in the jewelry industry.

According to Rhode (2014) The Kimberley Process is failing on their own terms; protecting gems from corruption and smuggling. Rhode describes that if a consumer would go into almost any jeweler in the UK and ask to know the origin of a diamond ring or neckless, the staff would most unlikely confirm the country or mine it was sourced from.

Rhode (2014) explains that the issue originates in the shipping process 18 of luxury gemstones. “The Kimberley Process certificate does not apply to an individual stone but to a batch of rough diamonds which are then cut and shipped around the world. Without a tracking system, this is where the trail ends.” Rhode (2014) Another point The Kimberley Process is failing is in their narrow focus in the certification; the mining and distribution of conflict diamonds. “broader issues around worker exploitation - the health and safety of working conditions, the use of child labour and fair pay – are not addressed. It also fails to deal with entire populations being evicted from their ancestral homes to make way for mining.” Rhode (2014)

FIGURE 8: LUXURY JEWELS (2019) PINTREST

“Social scientists place more effort in theoretical significance than transparency and ethical values.”

FIGURE 9: 36 MILLENIAL PINK PICES (2018) NIIMAS

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B.2 Who are the critical consumers entering the market? “The color of responsibility� (2016) Archuleta End consumers are increasingly aware of the ethical impact of what they buy. A frequently asked question when it comes to certifications is where to get a certificate that not only proves the quality and value of the jewels, but that ensures the jewels come from the right conditions.

Archuleta (2016) argues that consumers are more aware and asks questions about the origins of the piece and base their purchase on the answer they receive.

The new generation of gem and jewelry consumers are millennials, the young adults born in the early 1980s.

This generation is particularly tended to take factors such as fair-trade status, human rights, and sustainability in consideration before buying a new product. Studies by Archuleta (2016) show that this generation considers their purchase as a personal investment in a brand and therefore, desire a brand that represents their values. Therefore Archuleta (2016) argues that companies must act accordingly to the needs of the millennials.

FIGURE 10: BLOOD DIAMOND (2019) BENUA HITAM

Archuleta (2016) mentions that some industry leaders have long been aware of the social responsibility, yet have not taken actions, however, a rise of public awareness have been the greatest motivation for change so far.

In a world where consumers are starting to demand backgrounds to what they are purchasing, companies need change and effectively show transparency within their marketing.

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LUXURY JEWELRY AT ITS CROSS ROAD

C. The Impact of Marketing and Storytelling C.1 What impact does marketing and storytelling have on consumers?

In many ways, the modern company’s adjust after today’s market, by tailor making quality goods, adopting new pricing strategies and ensure the product is at the right place at the right time.

However, He (2011) and Sadowsky (2011) lies the foundation of high sales in communication with the primary component “storytelling.”

“Brand Storytelling: A comparison of the brand stories of Tiffany and Bulgari” 2011, Yan He He (2011) describes storytelling as the prime way to grab consumers attention and describe “who they are” and “what they stand for” in a relaxed and catching message. A story makes the product and the brand unique and gives value to its buyer. “Everyone is drawn to a good story, wants to hear the most emotional story, and wants to hear the best ones over and over again” He (2011).

He (2011) consider storytelling to be a helpful tool for companies to shape their identity. The story can represent company culture, values, boundaries, and it can help the company establish a reputation among its consumers. A catching story can create emotions among its audience. The emotions will make the product be identified with a high value and therefore, become unique to its individual.

C.2 How can storytelling manipulate the consumer and hide the truth?

“A Response to negative views of Storytelling” 2011, Sadowsky Storytelling can be used in many ways, with different ulterior motives. Many brands also use this powerful tool to mislead information and abuse consumers trust in order to manipulate them to buy more than needed.

Sadowsky (2011) defines the concept of storytelling as a device for communication that both can lead and mislead. It is the leader behind the tool that can choose to abuse its power or use it with authenticity, not the tool itself that rules how consumers comprehend stories. Storytelling can be an ideal tool to express who you are and where you come from, or it can be used as a dangerous tool to spread propaganda.

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This technique has been used by great leaders, brands, and politicians for decades. Some has used it as an emotional distraction to mislead important information. Others used it rightfully for honest self-expression.

The tool is powerful, and if it arrives in the wrong hands with someone that has a desire to misrepresent or mislead, it can become subtle and harmful. “As such, to make people stop thinking, to vote with their hearts instead with their heads” Sadowsky (2011) Brands have used storytelling as a technique to garner votes/ sales and grow power, and Sadowsky (2011) describes it as a “weapon of mass distraction.”

FIGURE 11: AUDREY HEPBURN OUTSIDE TIFFANY (2014) SOGNANDOL

BACKGROUND INFORMATION “Brand Storytelling: A comparison of the brand stories of Tiffany and Bulgari” 2011, Yan He According to He (2011) Bulgari and Tiffany are the most historical brands within the jewelry industry and share their story around the world that connects with wealth and a certain quality. Many companies have faded away with time due to the many noises of mass media, competition, and skepticism from value-conscious consumers. However, Bulgari and Tiffany maintained a sharp brand image. This strong image has been built on exceptional storytelling that attracts romantics and lovers. Because what else than an everlasting jewel would one treasure more to give to their loved one?

FIGURE 14: THE SUN AND MOON (2016) YALLHATEUS

FIGURE 13: 18K GOLD ATTRIBUTES (2016) FARM

FIGURE 12: THE SUN-LIGHT OF GOLD (2008) PINIMG

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The Power of Gold “The Power of Gold, The history of an obsession” (2012) Bernstein The word gold connects with wealth and people’s obsession of gold continues; nations have been scoured the earth for gold in order to gain the power to control others.

Bernstein (2012) states that the symbolic value of gold is power which men have been seeking since the dawn of time. Empires have risen and fallen through history by the hand of gold and can be found in many of the most famous stories such as Moses and the worshiping of false gods including the mighty king Midas.

Gold has always held its fascination due to its color and how it could change appearance depending on how the light struck it.

The metal itself is easily shaped, and the most primitive societies were able to create astonishing objects, as unlike any other material at their disposal, it held its color and did not corrode.

Although gold has been excisable worldwide throughout time, the mining process has always been difficult, which upholds the value and price. The amount of earth around the metal that needs to be processed requires much effort which adds to its financial value.

Bernstein (2012), also demonstrates, that the first divine worshipping which influenced the Abrahamic religions originated from the culture of the Egyptians. This ancient society created many gods connected to the most important one, the god of the sun; Ra. Substantial golden statues were made to empower the images to make the people see the gods as otherworldly beings. To extend the power of the leader of the civilization, the law stated that gold was strictly forbidden except for the Pharaoh who would wear golden garments. The great leader wanted to be seen as a link to the gods themselves, which in modern days could be connected to the pope who in Catholicism is God’s vicar on earth.

Through time and cultures, gods have changed, and their worshipping has hugely differed. However, the main component which stands the same throughout history is the fascination of gold and the creation of religious symbols or statues containing it. From the star of David and the golden eagle of Rome to crosses of the church, the most valuable items are crafted in gold.

The religious aspect and symbolism of the sun and divinity as seen in ancient Egypt developed to more modern views as society progressed. Religion still influences the modern world and gold is still used when crafting religious symbols. However, the 21 worshipping of gold has changed from the divine to an element that still obsesses people but only due to its value in terms of money and not in the sense of divinity.

BACKGROUND INFORMATION

LUXURY JEWELRY AT ITS CROSS ROAD

D. New Avenues: The Concept of Social Empathy D.1 -Today brands encourage love relationships which do not stem from the origin of the source. How can ethical behavior become valuable in order to create a new strategy displaying societal empathy?

Can critical thinking in consumers be stimulated by the industry?

“Social Empathy” (2011) Segal Segal (2011) describes the concept of social empathy as the human’s ability to understand and truly identify themselves with other people. Social empathy is a human need, in order to increase understanding of social and economic differences. This fact leads to human’s compassion in societal well-being and economic justice.

According to Segal (2011), there is a need in the market to promote social empathy in order to help people understand how they are connected across the world both within social policies and groups. In the absence of social empathy, it can lead to destructive behaviors such as; bullying, violent crime, sexual battering, and narcissism. “Lacking a deep understanding of others can lead to scapegoating, distrust, and in extreme cases destruction of other cultures” Segal (2011).

Social empathy is a crucial part of the human mind to understand other people, but it can also quickly build an emotional understanding of a brand.

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FIGURE 15: THE COLOR IS POETRY OF THE SOUL (2015) MYKUKULA

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D.2 How can social empathy be used as a marketing tool?

“Empathy, emotion and the customer experience” (2013) Travis For the past years, marketing has been facing a new paradigm. The concept of marketing has always had its core value in attracting new consumers. However, consumers have built a new understanding of value perceptions based on emotions rather than logic.

Travis (2013) defines the concept of social empathy as the new “buzzword” within marketing to gain consumers trust and loyalty. He describes that emotional experiences determine a consumer’s attitude to a brand. If the brand manages to make, the consumer emotionally connect with the values of the company, it will form an emotional bond. Travis (2013) describes that humans non-conscious mind categorizes experiences connected with intense emotions created in specific moments. The mind then associates the memories and emotionally responds before rationally analyzing a brands marketing campaign.

According to Travis (2013), when a brand succeeds to create content that evokes emotions and empathy, consumers are more likely to respond, act, and even promote a brand within their community. Trust and faith are essential emotions connected with empathy, so, when empathy is achieved, the brand also gains trust from the consumer that leads to loyalty and advocacy. Social empathy has been used not only as a marketing tool but also to connect people around the world.

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Travis (2013)

D.3 How can brand transparency and consumer trust be developed?

“Brand Transparency and consumer trust” (2018) Harvey Social empathy goes hand in hand with transparency, and eventually, it forms trust and loyalty.

Harvey (2018) Defines the concept of trust and transparency as two connected vital ingredients to build a sustainable and successful brand. The concept of transparent branding consists of upfront, honest, and reliable services/businesses from a brand to their consumers. According to Harvey (2018), a brand without trust will never be able to convince an audience to choose their product over a better-known competitor. Harvey (2018) states that it is not as easy to “trick” consumers into buying a product due to the easy accesses of information with today’s technology. “People can tell the difference between a genuine brand, and one that’s simply saying what they think their clients want to hear” Harvey (2018) 23

LUXURY JEWELRY AT ITS CROSS ROAD

E. New Avenues: The New Luxury Brand Model E.1 Luxurious brands have redefined their image of luxury and the old traditional concept has been criticized. Could this be a new strategy for the jewelry industry?

“Luxury Customer Value” (2012) Choo et al.

The definition of luxury is a very value-laden word. Choo et al. (2012) describe the definition of luxury as exceptional quality, extravagance designs, and exclusive experiences. Luxury consumers value the aesthetic representation of the symbolic value, which is one of the core factors in a brand relationship and behavioral intentions.

Choo et al. (2012) explain that the industry of luxury is more aware of its supply chain compared to other industries. This is due to the origin of the concept of luxury that is a synonym with the word “quality.” Therefore, quality comes first in mind in terms of production, and according to Choo et al. (2012), brands have strict supervision over the manufacturing. Luxury craftsmanship goods, therefore, have earned a highlighted value of respecting environment and society in terms of production. This highlighted value also includes the possibility of higher the price of a product.

“The Sustainable Luxury Contradiction: Evidence from a consumer study of Marine-cultured Pearl jewelry” (2016) Nash et al.

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The research comparison by Nash et al. (2016) presents a different vision of luxury origin. Nash et al. (2016) argue that the luxury industry contends some highlighted contradictions between luxury goods and sustainable products. Nash et al. (2016) highlight the production within the luxury pearl industry, he explains that many brands do not own their pearl farming and therefore are not sufficiently aware of the conditions in those areas.

From a marketing perspective, Nash et al. (2016) state that a luxury brand showing results of environmental message demonstrates a significantly higher word of mouth than a non-environmental message. In particular, a brand that suggests a direct link between production and positive sustainability can create higher brand value within the luxury segment.

NATHALIE LARSSON

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FIGURE 16: WHEN DID CLEAN LIVING BECOME THE NEW LUXURY? (2016) BURO

LUXURY JEWELRY AT ITS CROSS ROAD

2.2 Key Findings

A

THE VALUE OF GOLD AND DIAMONDS - Symbolic value adapts to how humans observe an object and create an interpretation of its meaning.

- The study of symbolic value takes on value-laden connotations and symbols of the specific context that has added value.

- Gold and diamonds have always represented a high value due to its rare indestructible material and religions have also reinforced that value to a greater connection of power.

B

THE ROLE OF CERTIFICATIONS - The concept of certifications is to achieve and clarify a certain level of value and quality of a product.

- The theory behind certifications originates in the process of organized skepticism; a process during which any final judgment of the potential contribution is suspended in a frame of a specific field.

- Social scientists place more effort in theoretical significance than transparency and ethical values in certifications.

- The new generation of gem and jewelry consumers are millennials. This generation is particularly tended to take factors such as fair-trade status, human rights, and sustainability in consideration before buying a new product.

-Some industry leaders have long been aware of the social responsibility, yet have not taken actions, however, a rise of public awareness has been the greatest motivation for change so far.

C

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THE IMPACT OF MARKETING AND STORYTELLING -Storytelling can represent a company´s culture, values, boundaries, and it can help the company establish a reputation among its consumers.

-The concept of storytelling is defined as a device for communication that both can lead and mislead.

-Many brands also use the powerful tool of storytelling to mislead information and abuse consumers trust in order to manipulate them to buy more than needed.

NATHALIE LARSSON

D

NEW AVENUES: THE CONCEPT OF SOCIAL EMPATHY - Social empathy is a human need, in order to increase understanding of social and economic differences. This fact leads to human’s compassion in societal well-being and economic justice.

-There is a need in the market to promote social empathy in order to help people understand how they are connected across the world both within social policies and groups.

-Lacking a deep understanding of others can lead to scapegoating, distrust, and in extreme cases destruction of other cultures -When a brand succeeds to create content that evokes emotions and empathy, consumers are more likely to respond, act, and even promote a brand within their community.

-People will forget what you said, people will forget what you did, but people will never forget how you made them feel

E

NEW AVENUES: THE NEW LUXURY BRAND MODEL -Luxury brands have a broader overview of their supply chain and the origin of the product, therefore earn a highlighted value of respecting environment and society.

-The luxury industry contends to have some highlighted contradictions between luxury goods and sustainable products.

-Many brands do not own their manufacturing and therefore are not sufficiently aware of the conditions in those areas.

-Luxury brands showing results of environmental messages demonstrates a significantly higher word of mouth than a non-environmental message. Therefore, can create higher brand value within the luxury segment.

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LUXURY JEWELRY AT ITS CROSS ROAD

A.2 How does the luxury industry operate depending on the country of origin?

What is the process that brings diamonds to consumers:

3. D ATA R ES U LT S

Diamonds are one of the most precious stones within the jewelry market and holds a global demand value at 83 billion dollars in year 2018 (Statista, 2019).

The diamond supply chain is the process that brings diamonds from the earth to consumers. The chain has several different stages before reaching the final consumer:

Diamonds are discovered all over the world, according to ´The World Diamond Council´ (2008) and Mieke (2018) the majority of diamonds, 65% are found in Africa where only 25% are regulated and controled (Mieke, 2018). This equals nearly 65 million diamonds comes from conflic origin and are sold on the international market.

THE MAIN DIAMOND PRODUCING COUNTRIES WORLDWIDE ARE:

• ANGOLA • AUSTRALIA • BOTSWANA • CANADA • DEMOCRATIC REPUBLIC OF CONGO • NAMIBIA • RUSSIA • SOUTH AFRICA

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35% OTHER Russia, Canada, Australia

65% AFRICA

FIGURE 20: BLOOD DIAMOND BENUA (2015) HITAM MNTAHAR

FIGURE 19: SIERRA LEONE (2017) LDSCHURCH

FIGURE 18: WAR WOUNDS IN AFRICA (1999) PG FIGURE 17: SIERRA LEONE (2017) TWIPU

NATHALIE LARSSON

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LUXURY JEWELRY AT ITS CROSS ROAD

BLOOD DIAMONDS ON THE HIGH STREET According to Global Witness (2006) the diamond revenues has helped Africa build up economy and infrastructures.

However, many lives have been caused to finance the African progress. Countries have been destroyed in civil wars and corruption of governments have occurred over many nations. The diamond mining has colored most of Africa’s past and nearly destroyed the future.

Wars founded by diamonds, known for murder, child soldiers and amputations as its trademark, the conflicts of Africa have been brutal. However, there are few that are aware of the true story that lies behind its civil wars.

Sierra Leone, Angola, Liberia and the Democratic republican of the Congo suffered brutal civil wars in 1990´s-2002, what connected each conflict was the currency used to found them, Diamonds (Billon 2008).

Billon (2008) explains that with the end of the cold war, combatants relayed on revenues from timber, oil, narcotics or precious minerals. These “conflict assets” was not only believed to finance hostilities, but also it is shaped motives for violence of armed groups. Among these assets, conflict diamonds played the largest part. People became obsessed to profit from the shining stones spread over Africa. Villages was annihilated in order for the rebels to get control of the ground where diamonds where found, and millions was brutally murdered.

According to Billon (2008) number of companies profited from the conflict diamonds and diamonds mined in the 1990´s still grace the hands and necks of unsuspecting customers, who have little clue of their brutal origin is. Billon (2008) Global Witness (2006) and Mieke (2018) states that; today 10-15% or

more of the world diamond trade are blood diamonds.

“About 133 million carats of rough diamonds are mined each year - with 65 percent of them originating from Africa. Then consider the fact that only 1 in 4 (25%) of diamond mines in Africa are well regulated, we can assume 3 of every 4 diamonds mined in Africa has a history of environmental and humanitarian abuses.

This equals nearly 65 million diamonds that are hitting the international diamond market each year, or at least 1 in 13 diamonds on the international market coming from a conflict origin.” MIEKE (2018) 30

3 of 4 Diamonds Mined In Africa Comes From Conflic Origins.

MIEKE (2018)

FIGURE 21: CONFLIC DIAMONDS (2018) GLOBAL WITNESS

NATHALIE LARSSON

The Devastating Impacts of Conflict Diamonds

FIGURE 22: CONFLIC DIAMONDS (2006) GLOBAL WITNESS

SIERRA LEONE: Civil war 1991-2002 50,000 killed Rebel group RUF mined up to 125 m of diamonds annually

LIBERIA: Civil war 1989-1997 and 2000-2003 200,000 killed Conduit RUF diamonds and arms imports

CONGO: Civil war 1998-2003 3 m killed UN sactions on diamonds were never imposed

ANGOLA: Civil war 1961-2002 500,000 killed UNITA rebels controlled 70% of Angola diamond production

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LUXURY JEWELRY AT ITS CROSS ROAD

THE HIDDEN COST OF GOLD Imgrund (2018) clarifies that even though gold is rarer than diamonds, it has an equally exploitative and corrupt process both social and environmental. She explains that many have been fo-

cusing on diamonds and the human rights violation.

However, gold mining is causing the same issues.

the world production of gold mines reached its record of a total on 3260 metric tons.

Statista (2018) states that during the year of 2018,

According to Brilliant Earth (2018), modern industrial gold mining has an enormous damage effect on today’s environment. Toxics such as Cyanide and Mercury are released directly into natural water bodies and are poisoning humans, nature, and animals.

Brilliant Earth (2018) states that for every 0.333-ounce gold

ring companies generate about 20 tons of toxic waste.

A tragic example of this is the Lihir gold mine in Papua New Guinea, that dumps over 5 million tons of toxic waste into the Pacific Ocean every year. In Pajuela, Peru, the waterways are so poisoned that wildlife has died drinking contaminated water (Imgrund, 2018).

Several countries over the world are affected by the toxins spread from the mines such as Romania, China, Ghana, Russia, Peru, and South Africa.

Many people do not have any other choice than to work in the mines to avoid starvation and violence. According to Imgrund (2018), it is common for many of these mines to have children working, and sex

trafficking of young girls in ages of 12 is prevalent in the mines. In the mines of Peru, young girls are promised work and sent by their families in order to earn money, but when arriving there, they are forced into prostitution for the male miners.

Imgrund (2018) states that Peru has some of the worst mining practices due to its big account for copper 13%, gold 4%, silver 22% and zinc 9% that are materials mined for the industry.

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FIGURE 23: CONFLIC DIAMONDS (2018) GLOBAL WITNESS

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1

MILLION CHILDREN UNDER THE AGE OF 16 WORKS AS GOLD MINERS Rutkowski (2018)

100

CHILDREN DIED OF POISONING IN GOLD MINES BETWEEN MARCH AND JUNE 2010

10 BIGGEST GOLD MINES IN THE WORLD: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Grasberg, INDONESIA South Deep, SOUTH AFRICA Lihir, PAPUA NEW GUINEA Muruntau, UZBEKISTAN Olympiada, RUSSIA Oyo Tolgoi, MONGOLIA Pueblo Viejo, DOMINICAN REPUBLIC Mponeng, SOUTH AFRICA Cadia East, AUSTRALIA Obuasi, WESTERN AFRICA

ANDRES (2013)

FIGURE 24: AFRICAN PORTRAITS (2006) JOHN-KENNY

Rutkowski (2018)

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LUXURY JEWELRY AT ITS CROSS ROAD

B.1 What lies behind the certifications of gold and diamonds?

WHAT ARE GOVERNMENTS DOING: KIMBERLEY PROCESS

Since 2003 The Kimberley Process was set up by governments to stop the trade in blood diamonds.

Today the Kimberley Process has seventy countries as members and it requires the governments to certify shipments of rough diamonds. “Although the Kimberley Process makes it more difficult for diamonds from rebel held areas to reach international markets, there are still signif-

icant weaknesses that undermine its effectiveness and allow the trade in blood diamonds to continue” Global Witness (2006)

MINAMATA CONVENTION

The Minamata Convention is a global treaty to protect the environment and human health from the adverse effects of mercury. The Minamata Convention has existed since 2013 and has today 108 parties.

Their efforts has helped countries to address health and environmental problems from toxics.

FOUR OF THE WORLD’S MOST RELIABLE CERTIFICATES: Source: Diamond Certification (2018) Shimansky

GIA

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EGL

The GIA has graded and certified some of the most famous diamonds in the world, including the Centenary Diamond and the Hope Diamond. Their headquarters is in California, USA, but the GIA operates out of 13 different countries, such as New York, Hong Kong and Moscow, to name a few.

Similar to the GIA, the EGL’s grading certificate gives a comprehensive list of a gem’s characteristics. EGL is a globally trusted organisation formed in Eurpoe.

The EGL has offices all over the world, and is committed to honest and reliable analysis results.

SGL

The AGS is considered as a high quality certification and often draws comparisons with the GIA. While their process is scientific in nature like the GIA, their diamond grades tend to be slightly looser.

This means that a diamond may be 1 to 2 grades off from what it truly is.

The SGL are famous for using innovative modern technology in grading diamonds and record diamond information. The diamonds have been examined in accordance with internationally accepted standards.

AGS

NATHALIE LARSSON

BRANDS WITH RESPONSIBLE SOURCING: EXCELLENT

(Companies that fulfill all of the criteria for responsible sourcing:)

NONE

STRONG

(Companies that have taken significant steps towards responsible sourcing):

TIFFANY AND CO.

MODERATE

(Companies that have taken some important steps towards responsible sourcing):

BULGARI, CARTIER, PANDORA, SIGNET

WEAK

(Companies that have taken few steps towards responsible sourcing):

BOODLES, CHOPARD, CHRIST, HARRY WINSTON

VERY WEAK

(Companies for which there was no evidence of steps towards responsible sourcing):

TANISHQ

NO RANKING DUE TO NONDISCLOSURE

(Companies that provide no information regarding responsible sourcing):

KALYAN, ROLEX, TBZ LTD. 35

FIGURE 25: INTIMATE POETRY (2016) LICCIARDELLOALFIOARMANDO

LUXURY JEWELRY AT ITS CROSS ROAD

CONSUMER BEHAVIOR and MARTEKT OVERVIEW WHEN, WHY AND WHAT ARE CONSUMERS BUYING:

What types of jewelry does women wear regulary?

How often do women shop for jewelry?

How much are women comfortable to spend on fine jewelry?

Event driving purchases: No occasion

Birthday

Anniversary Other Occasion

36 Valentines Day Mothers Day Christmas

FIGURE 26: INFOGRAPHIC: MOST POPULAR JEWELRY STYLES (2019) NEXUS

NATHALIE LARSSON

Market Volume The luxury jewelry market have today according to statista (2019) a global market volume of US $ 18,861m in 2019 and a revenue of US $ 43,3m that is expected to annually grow by -0.04%. .

THE LUXURY JEWELRY GLOBAL COMPARISON REVENUE (IN MILLION US $)

China US$18,861m India US$5,148m Hong Kong US$4,989m United States US$4,563m Japan US$2,163m

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FIGURE 27: THE LUXURY JEWELRY GLOBAL COMPARISON REVENUE (2019) STATISTA

LUXURY JEWELRY AT ITS CROSS ROAD

C.2 How can storytelling manipulate the consumer and hide the truth?

ARE DIAMONDS REALLY THAT RARE? According to Rosen (2018), diamonds are the most popular gemstone within the luxury jewelry industry. However, the stone is not as rare as people think. Today the idea of a

diamond is that it is exclusive and hard to find; however, they are not.

Technically, all gemstones are rare because it is a natural asset from the earth. However, Rosen (2018) argues that diamonds are one of the least rare among other stones, and Brolley states that the price of diamonds is much higher than the market value.

85%

OVER OF CHOICES WHEN SHOPPING ARE MADE BY THE SUBCONSCIOUS MIND. TYTYK (2017)

What created the value of the diamond was due to Cecil Rhodes, owner of DeBeers. He owned the most significant scale of industrial diamond mining that produced 14,5M carats of diamonds in the 1800s. In the year of 1888, he controlled 90% of the world production of diamonds.

Rhodes realized the same year that there was a significant threat in the desire of diamonds. Once diamonds be-

came world known, it was cleared to him that the price of diamonds would crash if all of the diamonds ever discovered where put on the market. Therefore, he decided to hold the supply making

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regulated and that there never were a flood of diamonds on the market. As decades past, demands grew in part due to DeBeers brilliant way of marketing. In 1948 DeBeers launched one of the most potent marketing campaigns in history, “A diamond is forever.” The advertising campaign made the stone connected with an everlasting love and the right to marriage.

“Between the years of 1939 to 1979 DeBeers wholesale diamond sales in the United States increased from $23 million to $2.1 billion. Over those four decades, the company’s ad budget soared from $200,000 to $10 million a year.” Friedman (2015)

"PROFIT MARGINS [BY HIGH-END JEWELERS] ARE SO BIG THAT THE PRICE YOU PAY IS A FALSE PRICE." TAYLOR (2015)

NATHALIE LARSSON

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FIGURE 28: HISTORY DEBEERS GROUP (1995) DEBEERSGROUP

LUXURY JEWELRY AT ITS CROSS ROAD

D.2 How can social empathy be used as a marketing tool?

1.

DEVELOP CUSTOMER PERSONAS “To understand your customers and what appeals to them, you need to know who they are and what makes them tick.”

EMPATHETIC CONTENT MARKETING

Javier (2018)

2.

CREATE EMPATHY MAPS “A technique (says,thinks,does and feels) that’s used widely across the agile and design communities, empathy mapping, can help gain even deeper insight into who your customer is.”

Javier (2018)

3.

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TONE OF VOICE “Flex your interpersonal communication muscle and put your people skills on paper (or into pixels) to craft a truly empathetic marketing message.”

Javier (2018)

NATHALIE LARSSON

D.3 How can brand transparency and consumer trust be developed?

BRAND TRANSPARENCY AND CONSUMER TRUST

84% OF MILLENNIALS DON’T TRUST TRADITIONAL ADVERTISING Chen (2015)

According to Chen (2015) markets today face a huge difficulty when communicating with their consumers, there is a lack of trust in the companies. “Fundamentally our relationship with consumers is broken,” Foster (2014), he explains that consumers today have changed their viewpoint due to social medias imprint. According to Arnold (2018) the lack of trust comes from `marketing tracking´, 54% of people are not comfortable with companies tracking their online behaviors with the purpose of targeted marketing. Arnold (2018) states that 49% are not willing to share online data with companies. Consumers are afraid that personal data are not used responsibly and with respect and this affects their ability in trusting new coming companies. In a future perspective the brands that will earn consumers trust will be the once protecting their privacy. “In a study of over 100k consumers, Motista found that customers who are emotionally connected with a brand have a lifetime value that’s 306% higher than the average customer. Customer lifetime value is a key consumer metric because it tells companies how much revenue they can expect one customer to generate over the course of the business relationship. If your brand can create memorable and positive interactions, customers will be much more likely to buy from your company again, thus increasing lifetime value.” Movista (2019)

“85 percent are more likely to stick by a business during a brand crisis if it has a history of being transparent.

9 out of 10 people (89 percent) said a business can regain their trust if it admits to a mistake and is transparent about the steps it will take to resolve the issue.” Brown (2018)

9 OUT OF 10

CONSUMERS WILL STOP PURCHASING FROM BRANDS THAT LACK TRANSPARENCY Brown (2018)

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LUXURY JEWELRY AT ITS CROSS ROAD

E.1 Luxurious brands have redefined their image of luxury and the old traditional concept has been criticized. Could this be a new strategy for the jewelry industry?

TIFFANY & Co. “As a leader in the luxury industry, we recognize the opportunity we have to influence culture and set the standards for excellence—not only in fine jewelry and craftsmanship but also in what it means to be responsible corporate citizens. Unlike other jewelers, we have implemented a vertical integration model that gives us a strong chain of custody, direct oversight of our manufacturing and a voice for improving global standards and conditions.”

FIGURE 29: SUSTAINABLE REPORT (2018) TIFFANY

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FIGURE 30: SUSTAINABLE REPORT (2018) TIFFANY

NATHALIE LARSSON

TIFFANY & CO. MODEL OF RESPONSIBLE SOURCING

98%

OF INTERNATIONAL MANUFACTURING WORKFORCE ARE HIRED FROM LOCAL COMMUNITIES. Tiffany&Co. (2018)

84%

OF TIFFANY´S GLOBAL ELECTRICITY CAME FROM CLEAN, RENEWABLE ENERGY Tiffany&Co. (2018)

55%

RAW METALS ARE TRACEABLE TO RECYCLER Tiffany&Co. (2018)

85%

OF TIFFANY´S CONSUMER PACKAGING IS SUSTAINABLY SOURCED Tiffany&Co. (2018)

SALES REVENUE

4.2BUSB YEAR 2019 4.4BUSB

YEAR 2015

Tiffany&Co. (2018)

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LUXURY JEWELRY AT ITS CROSS ROAD

DISCUSSION: When purchasing a luxury jewel, many consumers doesn’t know where the piece originates from or why it has such a high price tag. The initial aim of this dissertation is to deepen the understanding of the operation behind luxury jewels and define where the industry lacks, in order to find new avenues for luxury jewels.

The findings from this study suggest that beneath the luxurious surface, a sourcing process justifies a significant negative impact both environmentally and socially. Evidence of social abuses, death, wars, and sexual assault that have become worldwide standard in connection with gold, silver, and gemstone mining.

4. D ISC U S SI O N

Somewhat surprisingly, several companies are aware of the devastating impacts the luxury jewelry industry has, but lack in participating in a change. Seventy countries agreed to become members of the Kimberly Process 2003 to certify shipments of rough diamonds and avoid the trade of blood diamonds. To support this, the Minamata Convention was established in 2013 that protects the environment and human health from toxic jewel productions.

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In spite of both the convention and the Kimberly Process, research suggests that little has changed in the jewelry industry and the issues of corruption, smuggling, health, and child labor are still ongoing worldwide (Rhode, 2014; Global Witness, 2006; Mieke, 2018; Billion 2008). Quite surprisingly, Rutkowski (2018) found that 1 Million children under the age of 16 are working in gold mines 2018 and Mieke (2018) argues that each year 1 out of 13 diamonds comes from conflict origin to the international market.

Another critical aspect of the supply chain is from the environmental aspect. According to Brilliant Earth, (2018), modern industrial gold mining is causing enormous damage effects. It was declared that gold mines dump over 5 million tons of toxic every year into the Pacific Ocean.

Another tragic example is in Peru, where the waterways next to the mines are so poisoned wildlife dies drinking from it (Imgrund, 2018; Brilliant Earth 2018).

The findings reveal that these issues originate within the shipping process, where the tracking system lacks to follow the materials. Interestingly, Rhode (2014) states that the luxury materials that are well-regulated are accessible mixed out with materials from conflict origins in the process of shipping. Even the Kimberly Process has significant weakness within controlling the process, and this allows the trade in blood diamonds to continue (Rhode, 2014; Global Witness 2006).

Solutions could be built up for companies to become transparent to earn back the consumers trust. According to Brown (2018), 9 out of 10 consumers would regain their trust if a company admits to a mistake and is transparent about the steps to resolve the issue.

Nowadays, critical consumers are entering the market that is much more aware of the ethical impact they buy (Archuleta, 2016; Travis, 2013; Harvey, 2018). Consumers are more brand loyal, and 85% of millennials do not trust traditional advertising (Chen, 2015; Foster, 2014).

Findings from interviews with professionals within the industry reveal that a new avenue could be to recycle gold, silver, and gemstones. This would avoid the red flags within the `new producing` process and be much more sustainable. Further work is needed to unravel the specific recycle elements and transparent marketing to determine if these new avenues could be a longterm solution.

CONCLUSION: Overall, this study suggests that the jewelry industry is at is crossroad and is in need to evolve to fit a more humanitarian agenda. The research also points to the issues the industry is facing nowadays and potential avenues to solve them and enrich transparancy. It must be borne in mind that this study was only conducted on a small segment of the jewelry industry. Further research is hence needed to determine the long term effects and solutions of recycled and transparent companies before a generalized conclusions can be drawn.

NATHALIE LARSSON

FIGURE 31: VANCLEEFARPELS (2018) SUSTAINABLE JEWELS 45

LUXURY JEWELRY AT ITS CROSS ROAD

Aiha, “The problem of child gold mining” (2018) Rutkowski (Online) Available: https://www.aiha.org/publications-and-resources/TheSynergist/AIHANews/Pages/The-Problem-of-Child-Gold-Mining.aspx [Accessed 8 April. 2019].

Brilliantearth, “Gold mining and the environment” (2018) Brilliant Earth (Online) Available: https://www.brilliantearth.com/gold-mining-environment/ [Accessed 8 April. 2019].

Deepyve.com, Symbolic Value, (2015) Sneddon (Online) Available: https://www.deepdyve.com/lp/springer-journals/symbolic-value-nkHpUHJ8AZ [Accessed 5 May. 2019].

Ecowarriorprincess, “Ethics of Mining Gold: The social and environmental impacts of gold” (2018) Imgrund (Online) Available: https://ecowarriorprincess.net/2018/06/ethics-of-mining-gold-the-social-and-environmental-impacts-of-gold/ [Accessed 8 April. 2019].

Emeraldinsight.com, “Luxury Customer Value” (2012) Choo et al. (Online) Available: https://www.emeraldinsight.com/doi/abs/10.1108/13612021211203041 [Accessed 8 May. 2019].

Fabrikbrands, “Brand Transparency and consumer trust” (2018) Harvey (Online) Available: http://fabrikbrands.com/brand-transparency-and-consumer-trust/ [Accessed 12 March. 2019].

5. R EF ER EN CE S

Forbes, “Consumer trust in socail media is declining” (2018) Arnold (Online) Available: https://www.forbes.com/sites/andrewarnold/2018/07/29/consumer-trust-in-social-media-is-declining-heres-how-brandsshould-change-their-strategies/#38c863456b76 [Accessed 5 March. 2019].

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Gia.edu, “The color of responsibility” (2016) Archuleta (Online) Available: https://www.gia.edu/gems-gemology/summer-2016-color-responsibility-ethical-issues-solutions-colored-gemstones [Accessed 12 March. 2019].

Gemsociety, “Are diamonds really that rare?” (2018) Rosen (Online) Available: https://www.gemsociety.org/article/are-diamonds-really-rare/ [Accessed 8 March. 2019].

Jstor.org, “The American Sociologist” p.125 (1971) Rothman (Online) Available: https://www.jstor.org/stable/27701737?seq=1#page_scan_tab_contents [Accessed 14 April. 2019]. kb.osu.edu ”Socail Empathy” (2011) Segal (Online) Available: https://kb.osu.edu/rest/bitstreams/274870/retrieve [Accessed 12 May. 2019].

Miadonna, “Conflict Diamonds remain a problem in 2018” Mieke (2018) (Online) Available: https://www.miadonna.com/blogs/news/conflict-diamonds-remain-a-problem-in-2018 [Accessed 10 April. 2019].

Mercuryconvention, “Convention” (2018) Mercuryconvention (Online) Available: http://www.mercuryconvention.org/Convention/Text/tabid/3426/language/en-US/Default.aspx [Accessed 8 February. 2019].

Proquest, “Brand Storytelling: A comparison of the brand stories of Tiffany and Bulgari” (2011), Yan He (Online) Available: https://search.proquest.com/openview/ad8614f2401da1f23b3341bad85c476e/1?cbl=18750&diss=y&pq-origsite=gscholar [Accessed 12 March. 2019].

Researchgate “ The concept of value” (2017) Raj (Online) Available: https://www.slideshare.net/nandiniraj8/concept-of-value [Accessed 12 March. 2019].

Retailcustomerexperience, “Empathy, emotion and the customer experience” (2013) Travis (Online) Available: https://www.retailcustomerexperience.com/articles/empathy-emotion-and-the-customer-experience/ [Accessed 10 March. 2019].

NATHALIE LARSSON

Shimansky “Discover Diamonds – Diamond Certification” (2018) Shimansky (Online) Available: http://www.shimansky.co.za/discover/diamond-certification/types-of-certification [Accessed 12 April. 2019].

Statista, “Selected figures about the diamond market worldwide in 2008 and 2018” (2019) Statista (Online) Available: https://www.statista.com/statistics/829677/global-diamond-market-selected-figures/ [Accessed 12 May. 2019].

Statista, “Global mine production of gold from 2005 to 2018 (2018) Statista (Online) Available: https://www.statista.com/statistics/238414/global-gold-production-since-2005/ [Accessed 8 April. 2019].

Mining, “Worlds top 10 golden deposits” (2013) Andres (Online) Available: http://www.mining.com/web/worlds-top-10-gold-deposits/ [Accessed 9 April. 2019].

Socailmediaexplorer, Empathy as a content marketing strategy, (2018) Javier (Online) Available: https://socialmediaexplorer.com/content-sections/tools-and-tips/empathy-as-a-content-marketing-strategy/ [Accessed 5 March. 2019].

Stopad “Manipulating Maslow: How Advertising is hijacking our Heads and making us Unhappy” (2017) Tytyk (Online) Available: https://stopad.io/blog/manipulating-maslow-how-advertising-is-hijacking-our-heads-and-making-us-unhappy [Accessed 5 March. 2019].

The Guardian, “The Kimberley Process is a perfect cover story for blood diamonds” (2014) Rhode (Online) Available: https://www.theguardian.com/sustainable-business/diamonds-blood-kimberley-process-mines-ethical [Accessed 12 April. 2019].

Tandfonline, “Diamond Wars? Conflict Diamonds and Geographies of Resource Wars” (2008) Billon (Online) Available: https://www.tandfonline.com/doi/abs/10.1080/00045600801922422 [Accessed 12 April. 2019].

Theatlantic, “How an Ad campaign invented the diamond engagement ring” (2015) Friedman (Online) Available: https://www.theatlantic.com/international/archive/2015/02/how-an-ad-campaign-invented-the-diamond-engagement-ring/385376/ [Accessed 8 April. 2019].

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LUXURY JEWELRY AT ITS CROSS ROAD

FIGURES FIGURE 1: pintrest (2018) Diamonds and luxury stones (image) Available at: https://pintrest.com [Accessed 15 May. 2019].

FIGURE 2: Thefashionisto (2018) Valentines day campaign, Swarovsky (image) Available at: https://www.thefashionisto.com/archive/swarovski-valentines-day-2018-campaign/ [Accessed 15 May. 2019].

FIGURE 3: bilderbeste (2019) Phenelope Cruz Swarovsky (image) Available at: https://bilderbeste.com/foto/penelope-cruz-instagram-25.html [Accessed 15 May. 2019].

FIGURE 4: AFRICAN, BLACK & DIASPORIC HISTORY (2011) https://diasporicroots.tumblr.com/post/10849996766/esmatto-many-of-the-worlds-diamonds-are [Accessed 15 May. 2019].

FIGURE 5: telegraph (2017) Rihanna for Chopard (image) Available at: https://www.telegraph.co.uk/luxury/jewellery/rihanna-collaborates-chopard-high-jewellery-limited-edition/ [Accessed 15 May. 2019].

FIGURE 6: elmundoenfotos (2009) Human Chain Congo (image) Available at: https://elmundoenfotos.wordpress.com/2009/03/23/cadena-humana/ [Accessed 15 May. 2019].

FIGURE 7: pinimg (2007) Engagement (image) Available at: https://i.pinimg.com/originals/a1/a2/7a/a1a27ad054ca3894e9bbec27a23635cf.jpg [Accessed 15 May. 2019].

FIGURE 8: pintrest (2019) Luxury Jewels (image) Available at: https://pintrest.com [Accessed 15 May. 2019].

FIGURE 9: niimas (2018) 36 Millenial Pink Pices (image) Available at: http://niimas.com/2018/10/27/36-millenial-pink-pieces-approved-for-fall-inspired-by-the-model-soo-joo-valentino-outfit/ [Accessed 15 May. 2019].

FIGURE 10: pintrest (2019) Blood diamonds Beuna Hitam(image) Available at: https://pintrest.com [Accessed 15 May. 2019].

FIGURE 11: sognandolamerica (2014) Audrey Hepburn outside Tiffany (image) Available at: https://sognandolamerica.tumblr.com/post/72787375973/xo-via-tumblr-su-we-heart-it [Accessed 16 May. 2019].

FIGURE 12: pinimg (2008) The sun-light of gold (image) Available at: https://i.pinimg.com/originals/04/60/38/046038ca663306caeb5c5648b1b589b1.jpg [Accessed 15 May. 2019].

FIGURE 13: farm (2016) 18k Gold Attributes (image) Available at: https://farm6.staticflickr.com/5119/7241678418_e8c4e9e433_o.jpg [Accessed 15 May. 2019].

FIGURE 14: theyallhateus (2016) The Sun and Moon (image) Available at: http://www.theyallhateus.com/ [Accessed 16 May. 2019].

FIGURE 15: mykukula (2015) The color is poetry of the soul (image) Available at: https://mykukula.tumblr.com [Accessed 16 May. 2019].

FIGURE 16: buro247 (2016) When did clean living become the new luxury? (image) Available at: http://www.buro247.com.au/culture-lifestyle/health-and-fitness/when-did-cleanliving-become-the-new-luxury.html [Accessed 16 May. 2019].

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FIGURE 17: twipu.com (2017) Sierra Leone (image) Available at: https://twipu.com [Accessed 14 May. 2019].

FIGURE 18: PG (1999) War Wounds in Africa https://www.pg.com [Accessed 14 May. 2019].

FIGURE 19: ldschurchgrowth (2017) Sierra Leone http://www.ldschurchgrowth.com [Accessed 14 May. 2019].

FIGURE 20: mntahar (2015) Blood diamond Benua Hitam

NATHALIE LARSSON

http://www.mntahar.my.id.com [Accessed 14 May. 2019].

FIGURE 21: Global witness (2018) Conflic Diamonds (image) Available at: https://www.globalwitness.org/en/campaigns/conflict-diamonds/ FIGURE 22: Global witness (2006) Conflic Diamonds (image) Available at: https://www.globalwitness.org/en/campaigns/conflict-diamonds/ [Accessed 14 May. 2019].

FIGURE 23: Global witness (2018) Conflic Diamonds (image) Available at: https://www.globalwitness.org/en/campaigns/conflict-diamonds/ [Accessed 14 May. 2019].

FIGURE 24: john-kenny (2006) African Portraits https://www.john-kenny.com [Accessed 15 May. 2019].

FIGURE 25: licciardelloalfioarmando (2016) Intimate Poetry (image) Available at: http://licciardelloalfioarmando.altervista.org/raggiungere-me/?doing_wp_cron=1558423896.0274798870086669921875 [Accessed 15 May. 2019].

FIGURE 26: Nexus (2019) Infographic: Most Popular Jewelry Styles https://www.diamondnexus.com/blog/most-popular-fine-jewelry-survey-infographic/ [Accessed 15 May. 2019].

FIGURE 27: Statista (2019) The luxury jewelry global comparison revenue https://www.Statista.com [Accessed 15 May. 2019].

FIGURE 28: debeersgroup (1995) History DeeBeers group (image) Available at: https://www.debeersgroup.com/the-group/our-history [Accessed 14 May. 2019].

FIGURE 29: Tiffany (2018) Sustainable report (image) Available at: https://media.tiffany.com/is/content/Tiffany/Tiffany_Sustainability_Full_Report [Accessed 16 May. 2019].

FIGURE 30: Tiffany (2018) Sustainable report (image) Available at: https://media.tiffany.com/is/content/Tiffany/Tiffany_Sustainability_Full_Report [Accessed 16 May. 2019].

FIGURE 31: Vancleefarpels (2018) Sustainable jewels (image) Available at: https://www.instagram.com/p/ziFOiAtt0s/[Accessed 16 May. 2019].

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6. A PP EN DI X

LUXURY JEWELRY AT ITS CROSS ROAD

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NATHALIE LARSSON

INTERVIEWS: -HOW IMPORTANT IS THE ISSUE OF TRUST BETWEEN THE STORE AND THE DISTRIBUTOR? Kjell Larsson (Wholesaler within luxury jewels) -The luxury jewelry industry is small and therefore the trust between distributer and stores becomes essential, you know the once you can rely on.

Jhon Borgner (CEO Swedbom and chairman in GULF) -Without trust there is no distribution.

Adam Sajfi (Luxury jewelry Store Owner) -Trust is what is most important, without trust its not possible to do business.

-HOW CAN THE STORE CONTROL THE GOLDS ORIGIN? Kjell Larsson (Wholesaler within luxury jewels) -It’s not many within the industry that checks up the origin of the gold, you trust the once you buy the gold from. In the terms of gold mining there are so many steps between the mind and the jewelry stores. Therefore, it becomes very difficult to control where the gold originates from.

Jhon Borgner (CEO Swedbom and chairman in GULF) - Our company only works with recycled gold within the EU because it’s the most sustainable and environmentally friendly.

However, there is a lack within the international industry of available data of existing mixed out gold.

Adam Sajfi (Luxury jewelry Store Owner and gemologist) -Most of our gold is recycled and the new gold is only from reliable wholesalers, this is why trust plays such a significant role when buying new products within the luxury industry.

-HOW CAN THE STORE CONTROL THE DIAMONDS ORIGIN FROM THE DISTRIBUTERS? Kjell Larsson (Wholesaler within luxury jewels) -The diamonds are easier to control due to its well-known history and gemstones are much easier to track.

Adam Sajfi (Luxury jewelry Store Owner and gemologist) - All stones we work with comes from distributers thats buys them from “shights” that is one of the most reliable sources of control. However, the gap exists within the supply chain due to the impossibility of tracking the stones origin because its decomposed so many times before arriving to the distributers.

-HOW CAN THE INDUSTRY IMPROVE? Jhon Borgner (CEO Swedbom and chairman in GULF) - If all gold and silver would be recycled we would avoid the poisons and environmental damages existing today.

Adam Sajfi (Luxury jewelry Store Owner and gemologist) - The jewelry industry was actually one of the first industry’s using recycling gold and silver. However, it has not been a media buzz and therefore few consumers and brands are aware of this possible solution for the industry.

A solution for diamonds would also be to recycle them, but the main issue originates in the diamonds sourcing prosses.

However, if all diamonds mines would be transparent, diamonds would be marked as soon as sourced and then it would be easy to know the diamonds origin.

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