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Alrosa to restructure its marketing strategy: VP Sergey A Oulin
Goal to establish long-term relationships with prominent clients
By: Diamond World News Service
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Jun 30 2007 12:00AM
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Reference: 1478  

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As per industry reports, Alrosa Vice President Sergey A. Oulin confirmed that the Russian diamond producer has plans to restructure its marketing strategy, selling the majority of its rough to large companies and developing a branding strategy that could include locally cut stones.

The goal is to establish long-term relationships with prominent clients who can take responsibility for a substantial amount of goods.

Oulin said the company must adjust to the new realities in the marketplace and use the advantages it has, such as a reliable mineral base, with an eye toward a branding initiative for Russian diamonds.

Alrosa, which will have about 25 percent of rough production by 2009, also hopes to take a stronger leadership position in dealing with issues impacting the diamond industry.

In terms of challenging the European Commission (EC) ruling on selling to De Beers, Oulin said the company expects a decision in the near future. Under the EC antitrust ruling, Alrosa can't sell rough diamonds to De Beers after the end of 2008. He said the company felt the decision violated its rights. A reversal, however, wouldn't automatically mean the company plans to continue the sale of rough diamonds to De Beers.

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