AIDI Conversations with Wang Zhidong, Director General of AIDI China: Exploring the Relationship Between Associations, Industry, and Enterprises
Question 1: What Is an Association?
AIDI’s View on Associations:
- Non-Profit Nature: First and foremost, an association is a non-profit industry organization, not a business. This is a fundamental understanding that everyone should be clear about.
- Historical Roots: Associations originated from guilds, which were organizations of practitioners in the same industry. The primary roles of guilds included industry self-regulation, information sharing, mutual assistance, and most importantly, raising the entry barriers to protect the interests of industry practitioners. In medieval Europe, guilds were a characteristic phenomenon comprising artisans or traders.
- Industry Development: Associations have evolved from guilds into industry organizations. The emergence and development of industry associations are driven by the need for socialized production and market economy development, as well as the need for industry advancement. On one hand, industry associations coordinate actions within the industry, facilitate effective organization and collaboration, and standardize technology and product quality, promoting healthy industry development. On the other hand, they act as important tools for market expansion, bearing significant responsibility for driving industry growth alongside businesses. For instance, the Sunkist Growers in California is an important association promoting local orange production and sales. Similarly, the World Gold Council and the Platinum Guild International are renowned organizations driving industry growth. In its early market development, De Beers also played an association-like role in advancing the natural diamond market.
Question 2: How Does an Association Operate?
AIDI’s Understanding of Association Operations:
- Neutral Entity: An association is a neutral entity representing the interests of the entire industry, not the will of any single enterprise. Therefore, it must consider issues from the perspective of overall industry development.
- Responsibility to Sponsors: Associations must be accountable to their sponsors by proposing suitable projects to help industry development and, through this development, bring more benefits to the sponsors.
- Leadership Structure: The leadership body of an association is the board of directors, composed of sponsors and industry professionals. The board approves annual projects and evaluates their implementation.
- Operational Structure: The association has a secretary-general and a secretariat appointed by the board, responsible for the implementation of specific projects.
- Committees: Based on industry development characteristics, associations establish various committees focused on different areas, each proposing and supervising specific projects.
Question 3: Where Do Association Funds Come From?
AIDI’s Understanding of Funding:
- Non-Profit Funding: As a non-profit organization, all operational funds come from the industry.
- Principle of Beneficiary Funding: Funds come from the primary beneficiaries of each project.
- For projects focused on the application scenarios of lab-grown diamonds, the primary beneficiaries are the producers and retail channels of lab-grown diamond rough stones. Thus, these businesses provide the funding.
- For projects involving the recognition and promotion of lab-grown diamond standards, the primary beneficiaries are testing institutions, which provide the funding.
- For industry upgrades in lab-grown diamond cutting, the entire industry benefits, so the funding comes from an industry fund.
- For international exhibitions and online/offline promotions, the primary beneficiaries are the producers of lab-grown diamond rough stones, so they provide the funding.
- Example Sponsors: The primary sponsors of the World Gold Council are major gold miners, sellers, and banks, both domestic and international. The primary sponsors of the Platinum Guild International are major platinum miners and sellers, such as Anglo American in South Africa.
Question 4: How Does the Association Operate in China?
AIDI’s Understanding of Operations in China:
- Self-Funded Operations: The operational expenses of the association in China are self-funded.
- Support for Local Industry: The association's operations in China aim to support the development of the lab-grown diamond industry and enterprises in China.
- Global Resources: The association's global resources can assist the development of the Chinese industry and enterprises.
- Industry Transition: Most major manufacturers in China’s lab-grown diamond industry come from the superhard materials sector (B2B), lacking the mindset and capabilities to enter the jewelry market. Their success in the superhard materials industry hinders their awareness of their ignorance in the new industry. They attempt to use past thinking to guide future endeavors.
- Emerging Players: The global lab-grown diamond industry will undoubtedly grow. In China, if existing enterprises fail to recognize the crisis, new companies and investors will enter and collaborate with the association to drive industry development.
- Ongoing Projects: AIDI China is planning several core projects and welcomes like-minded industry practitioners and entrepreneurs to participate.
- Bright Future: The future is bright, but the path is winding.
About AIDI
- Association of Intelligent Diamond International (AIDI): AIDI represents intelligence and smart technology. Lab-grown diamonds, a result of human intelligence, reflect the pursuit of a better life through advanced technology. As a high-tech product, their future development will rely on human wisdom, including AI, blockchain, and other cutting-edge technologies.
- International Non-Profit: AIDI is an international non-profit organization registered in Australia and Canada. AIDI plans or has already established branches through offices or strategic partnerships in Beijing, Shanghai, Vancouver, Los Angeles, Bangkok, Poland, Germany, and Dubai, to guide and serve local members. AIDI aims to enhance the value chain of lab-grown diamonds, from rough stone production to consumer purchases, through innovative applications of AI, blockchain, data analytics, and science, ultimately fostering a healthy market for lab-grown diamonds.
- Cross-Industry Expertise: As a leading industry organization, AIDI spans superhard materials and jewelry application scenarios, with experts in production technology and professionals with years of experience in the jewelry and exhibition industries. The association-led platform provides cross-industry services, supporting traditional superhard materials companies in entering the jewelry market.
- AIDI Committees:
- Creative Center: Focusing on creating lab-grown diamond usage scenarios for enthusiasts.
- Projects: Collaborating with independent designers and brands to develop application scenarios.
- Market and Industry Center: Information, promotion, exhibitions, pricing, and trading systems for the industry and enterprises.
- Projects: Australian Jewelry Exhibition (August), Hong Kong Jewelry Exhibition (September), and online/offline promotional activities for enterprises and products.
- Technology and Standards: Industry standards and technological development.
- Projects: Gem & Diamond Certificate (GDC) and global new standards for lab-grown diamonds in collaboration with domestic standard institutions.
- Legal and Investment: Providing industry fund support and green certification for enterprises.
- Projects: Green certification for industry enterprises.
By leveraging these perspectives and strategies, AIDI aims to foster a collaborative and progressive environment for the lab-grown diamond industry, ensuring sustainable growth and innovation.