The Covid-19 pandemic has altered business operations around the world, but it also became a catalyst for advancement. Technology leader Sarine talks about changes that support the digital transformation of the diamond trade. 

The year 2020 proved tough for the diamond industry, with persistent lockdowns hampering diamond production as well as retail business in major markets such as the US, Europe and Asia, according to diamond technology provider Sarine Technologies Ltd. Green shoots of recovery however started to show towards end-2020 as manufacturing and retail activity rebounded.

And now the industry is on the mend, supported by improved manufacturing, retail and online business. This boded well for Sarine – group revenues in the first half of 2021 rose 61 per cent to US$36 million while net profit surged to US$12.6 million.

The company is also taking advantage of an accelerated digital transformation of the diamond industry brought about by Covid-19.

“This year, we see strong recovery in the diamond industry,” noted Sarine CEO David Block. “Sarine has in place the industry’s most advanced technological infrastructure to enhance rough diamond buying efficiency and is continuously investing to broaden its offerings in this segment.”

Digital revolution

With rough diamond tenders shifting to digital platforms during lockdowns, buyers can evaluate rough diamonds on offer using advanced technological and digital-based Sarine systems, explained Block.

On the B2B front, such digital tenders have become more relevant as travel restrictions prevented sourcing of rough diamonds onsite. More producers are using technology that allows digital viewing of goods. There is also growing interest in Sarine’s e-Grading solutions among retailers and manufacturers.

End-consumers meanwhile have become more discerning – researching before making a purchase – and more receptive to buying jewellery online, hence the need for retailers to build a solid digital presence.

“The role of physical stores is also changing. Consumers prefer to research online and come to the store knowing what they want and expect the sales professional to support them in their buying decision. The physical store has become an extension of the online and must provide a continuous shopping journey,” added Noy Elram, managing director APAC at Sarine.

Sarine is also a traceability and sustainability leader. Block shared, “The Sarine Diamond Journey™ provenance and traceability solution is generating strong interest due to our unique ability to collate actual verifiable traceability documentation throughout the manufacturing workflow as compared to origin-only certification.” This solution is currently adopted by major diamantaires Alrosa, Lucara and Grib, to name a few.

More than 100 million rough diamonds go through Sarine systems annually, he added.

Sarine is also working closely with high-profile retailers who value the storytelling and sustainability attribute of the Sarine Diamond Journey™. “We expect broader commercial adoption with additional leading brands to follow and are leveraging the seamless integration of the Sarine Diamond Journey™ with our e-Grading™ initiative to offer an even more compelling packaged proposition of these two unique offerings,” added Elram.

Moving forward, Block said technology will continue to play a critical role in the diamond trade. Digital transformation particularly in retail is expected to persist as lockdowns and restrictions drive the transition to online purchases. The US and China meanwhile are seen to drive growth in jewellery consumption. Sarine, for its part, will prioritise traceability and e-Grading solutions.

“Sarine will continue to drive the diamond industry forward through innovation and technology. Our continuous mission is to help the industry to adapt to the rapidly changing environment and to the new generation of consumers,” noted Block.