Thirst for Luxury: Demand for Diamond Jewellery Rises Post-Covid
An article recently published by Aruna Gaitonde of Rough & Polished analyses the diamond industry following a year full of lockdowns, travel restrictions and other hurdles which greatly impacted the luxury sector in general and the diamond jewellery industry in particular.
Towards the end of 2020, the diamond industry slowly returned to a strong position, as evident by the recuperation in sales of rough by the major two producers – Alrosa and De Beers. The miners, Gaitonde says, “returned with a vengeance and so did the diamond and diamond jewellery manufacturers”. The retail sector saw a multifold rise in demand for diamond jewellery, both in physical stores as well as in online platforms.
The highest demand for diamond jewellery and watches was evident in the US, followed by consumers in China and India. The strongest demand in these markets was for diamond jewellery for engagements and weddings. In a diamond desirability research in the final quarter of 2020 conducted by the Natural Diamond Council (NDC), diamond jewellery led as the most highly desired and tangible luxury good. According to the NDC, half of the natural diamond jewellery purchases were made by consumers to themselves, largely driven by female consumers. 37% of respondents said that they intend to buy fine jewellery in the next 12 months and 27% expected to receive it.
As 2020 came to a close, the US and Chinese markets particularly registered good jewellery sales due to the holiday period. According to reports, Gaitonde says, jewellers marked a rise of 10%-20% in sales compared to the holiday period of 2019.
In China, local chains for diamond jewellery registered double-digit growth in sales during the last few months of 2020. According to a World Gold Council report, “the jewellery industry hopes for a recovery in the local economy and sustained growth in consumer sentiment in 2021”.
During Q4 2020, the demand for diamond jewellery “resulted in high demand for loose polished stones”. In India, net exports of cut and polished diamonds was up by 20% more compared to the same period in 2019. This in turn led to a 20% rise in rough imports. Finally, Gaitonde claims, “the diamond industry was on its way to an earlier time”.
Read the full article here