Regal Assets Analytics

Monday, March 4, 2024
More

    Diamond Jewelry

    The global diamond jewelry market has seen a growth in recent years. Sales have increased exceeding US$80 BILLION for the first time. In local currency terms, there was growth in each of the top five diamond markets, which account for 75 percent of global demand.

    Growth would have been almost five percent had it not been for the strengthening of the US dollar against the currencies of several of the major diamond consumer markets. Despite the US being the most mature diamond jewelry country, its seven percent growth was the strongest of any of the main regions.

    Growth (in local currency) was also seen in developing markets, with six percent growth in China and three percent in India. There are three key trends that are shaping the future landscape of the diamond retail sector.

    First, consumers across the world are looking increasingly to branded diamond jewelry for product differentiation, distinctive design, authenticity and quality. This is more prevalent in the US where four in five retailers stock brands. But developing markets are also seeing increased sales of branded jewelry consumers’ seek the greater reassurance offered by brands.

    Second, the number of jewelry shops in developing Asian markets increased again last year (albeit at a slower rate), while the total number in more mature markets especially the US – saw an overall reduction. Third, online sales in both developed and developing markets continued to rise.

    While online sales in India, at less than one percent of total sales, lag behind those in the US (at 13 percent of total sales). Increasing online penetration in developing markets is likely to result in the Internet becoming a more important factor in researching diamond jewelry purchases.

    Diamond Insight Report highlighted the competitive position of diamond jewelry against other luxury products, with categories such as electronics and fashion spend gaining share of advertising voice.

    However, growth in jewelry advertising spend started to reach the levels seen in the fashion industry. While it’s too early to say if this trend will continue, it’s a positive development that needs to be maintained if the diamond sector is to compete more effectively with other luxury products.

    There was growth in local currency in some markets, the continued strengthening of the US dollar against all major currencies, coupled with a slowdown in economic growth in China, is likely to lead to global diamond jewelery demand. De Beers and ALROSA remained the largest sellers of rough diamonds of global sales by value between them.

    spot_imgspot_img

    In The News

    Related Articles