De Beers Group has unveiled its tenth annual Diamond Insight Report, which delves into the prospects for diamonds in China and strategies to sustain long-term demand for natural diamonds there.
Despite recent softening of consumer demand for diamond jewelry in China due to pandemic-related and economic challenges, De Beers underscores the potential for increased demand as China’s economic outlook improves. It’s predicted that by 2030, up to 200 million Chinese consumers will join the middle class, with a projected rise in disposable income of over a third during the same period. The report also emphasizes the importance of understanding the diverse preferences of Chinese consumer groups.
Al Cook, CEO, De Beers Group, commented in the report that China “now represents the largest market for diamond jewelry outside the United States.”
The report identifies opportunities for the diamond industry in China, including:
Millennials: This generation spends more on diamond jewelry and values quality, size, cost, design, color, uniqueness, and ethical responsibility. Retailers should prioritize strong design, top-quality diamonds, competitive pricing, and ethical practices.
Gen Z: Gen Z represents an increasing share of the market and values digital media, sustainability, and celebrating milestones with diamonds. According to the diamond miner, retailers can engage Gen Z through digital channels, aligning with their values, offering flexible payment options, and personalized birthday promotions.
Affluent consumers: These consumers mark significant relationship milestones with diamond jewelry, particularly wedding anniversaries. Design is crucial, and retailers should focus on designs that resonate with this group’s preferences.
The 55-65 age group: This group is notable for self-purchases of diamond jewelry, favoring necklaces and non-bridal rings.
Recently, De Beers announced its plan to reintroduce its iconic “A Diamond is Forever” campaign with a $20 million investment. This initiative aims to increase the demand for natural diamonds in the United States and China during the 2023 holiday season. At the same time, De Beers has ceased selling lab-grown engagement rings following a three-month trial, as it was determined that these rings were not financially sustainable for the company.
Lightbox, the miner’s lab-grown division, briefly entered the bridal market in June with rings priced from $500 to $5,000. According to the company, Retailers already need to double the number of LGD carats sold every two years “just to maintain a flat absolute gross profit.”
