Cartier recently shared China was the first market to offer the French luxury goods brand a robust rebound in sales since the pandemic broke out. The brand shared that e-commerce sales in China also saw a phenomenal rise since the outbreak, prompting the company to solidify its plans to raise investments in the country. The rebound and growth are attributed to the solid performance of pandemic-related travel restrictions, causing Chinese consumers to purchase luxury goods locally rather than abroad.
Three years ago Signet Jewelers, the world's largest retailer of diamond jewelry, launched “Path to Brilliance,” the official name of its business growth strategy. By acquiring Rocksbox, the subscription-based jewelry rental platform, Signet can expand the retail group’s services, reach a younger demographic, and offer customers new ways to enjoy jewelry without the pain of buying it.
Luxury male accessories are traditionally tie clips, cufflinks and belt buckles, or for those with a more edgy look, gothic rings or rapper-inspired chains. But for China’s growing segment of young, fashion-fluent men, those style conventions are not enough. Although in the West Millennials and Gen Zers associate diamonds with a romantic notion such as a proposal or marriage, Chinese consumers do not. In China the cultural detachment allows more young men to buy diamonds as a fashion statement instead.
Consumers don’t like feeling rushed when making luxury purchases, and brands like Breitling have found a suitable solution. #BreitlingSelect allows subscribers to try up to three Breitling watches in a year from a dedicated portfolio of timepieces. Part of the offer is that the subscribers will then be able to purchase one of the three watches at a special price.
Although the pandemic has continued to dominate headlines, a year after the outbreak in the US and Europe, an Israeli study has underscored the effectiveness of the vaccine in preventing infection. This, along with news of the Biden administration accelerating the vaccine rollout in the US, and the UK’s successful vaccination program, has given consumers hope that there is light at the end of the tunnel.
In the last quarter of 2020, the Natural Diamond Council surveyed 5,000 respondents to better understand the desirability, perceived value, and shopping habits of American Millennials (25 – 39 y/o) and Generation Z (18 – 24 y/o). Together they represent 38% of the adult population and 60% of the demand for natural diamond jewelry. Within the next decade, their income is projected to rise by more than 70%.
In its recurring Diamond Insight Report, De Beers Group released new results from ongoing consumer and retail research, especially focusing on the effect of the pandemic.
In his latest blog, industry analyst Edahn Golan isn't sugarcoating the message, the diamond industry is suffering as the pandemic is exacerbating the long-term downward trend of polished wholesale prices as well as the steep decline in jewelry share of wallet.
While the rest of the world is tightening measures to control the COVID-19 outbreak, Chinese customers - constituting a whopping third of global luxury industry’s sales and the driving force of global growth in this segment in recent years - are slowly returning to the country’s luxury shopping malls as local quarantine measures are eased.
Over the last five years, we’ve probably seen too much supply of rough going into the market. The big producers are seeing the need to restrict supply. There's a realization that we have to get back in balance. We see the diamond market as being more positive in the future but we’ve got some challenges right now.
Stuart Brown, CEO at Mountain Province on rough supply, the diamond retail market and LGDs.
The global personal luxury goods market grew by 6% in 2018, reaching €260 billion (more than $290 billion) in 2018, with similar growth forecasted for 2019, reports leading consultancy Bain & Co. in its “Bain Luxury Goods Worldwide Market Study, Spring 2019”. The strong growth, equivalent to that in 2017, was driven primarily by the acceleration in domestic spending of mainland Chinese consumers and an increase in European tourism. Bain & Co.
Is the goal of Lightbox to lower the price of lab-growns?
Just about wherever one looks in the diamond industry - natural or synthetic - demand is not keeping up with supply, or is out of balance, writes Edahn Golan on his Diamond Research & Data site.
Multiple forces seem to be conspiring against the diamond industry these days, and if mining stocks are any indication, the wider market takes a pessimistic view of its prospects. But as independent analyst Paul Zimnisky explains in his latest analysis, "Don’t Give Up on the Diamond Industry Just Yet", to take this attitude as a foregone conclusion is to underestimate the resilience of the industry as a whole and overlook not only the enduring intangible value of diamonds, but also the impact of what may well become their much more tangible rarity.
The Millennial and Gen Z generations combined accounted for two-thirds of global diamond jewelry sales in 2017, as diamond jewelry demand reached a new record high of US$82 billion, according to data published today by De Beers Group in its latest Diamond Insight Report.
Global consumer demand for diamond jewelry hit a new all-time high in 2017, climbing to US$82 billion, a two percent increase on the previous year, according to industry insight data published today by De Beers Group. The US was the main driver of growth for the fourth consecutive year, De Beers writes, where positive macroeconomics and strong consumer confidence - which recently hit an 18-year high - saw demand for diamond jewelry increase four percent to $43 billion, representing more than half of total global demand.
In an article published by Interfax Alrosa’s Vice President Yuri Okoyemov stated seasonal factors had affected demand for rough diamonds in March, which were slightly down compared to January-February. "But the results of the trading session in March are good; Q1 on the whole can be given a positive assessment," he said. "Generally the forecast for the year is good at the moment; we are expecting stable demand and prices, with seasonal variations."
Coming off of 2017, a year in which global diamond supply by volume increased by 11.7% year-over-year, supply is forecast to contract by 3.4% to 147M carats in 2018, writes independent industry analyst Paul Zimnisky. Of the world's top three diamond miners by volume, only De Beers is expected to increase production this year, while diamond output at Russia's ALROSA and diversified-major Rio Tinto is estimated to decline, more than offsetting De Beers' increase. Combined, the three companies represent approximately 70% of global diamond supply by volume.
Sergey Ivanov (37), the young CEO and Chairman of the Executive Committee of the world’s largest diamond miner, ALROSA, was in Antwerp for the company’s annual meeting with its 56 long-term clients. ALROSA is a traditional company in a traditional business, and still evokes the reputation of a state-owned giant despite the partial privatization (currently 34%) of the company a few years ago.
Diamond industry analyst Ehud Laniado takes a helpful look at the, "trends, anomalies and problems in the wholesale sector of the diamond market" as we approach the holiday season. As anticipated, demand is rising, but changes in the nature of that demand are causing some concern; in particular, the steady shift to lower-priced goods, lower peaks in demand and an overall decline in polished prices.
"Of all of the ways to adorn yourself, what has nature created that has lasting beauty like a rock?" said Antoinette Matlins. "As soon as you cut a flower, it wilts. A sunset is beautiful but you can't capture or wear it. There's is something so special and everlasting about nature's creation of minerals and rocks."
“People have long bought flashy items because they made them feel good. Now some say those same items make them feel icky,” wrote JCK’s Rob Bates. According to a recent New York Times article a percentage of affluent consumers are moving away from the ‘If you’ve got it, flaunt it’ stereotype. Some even consider their wealth a burden, going as far as hiding the price tag of their recent purchases.
According to industry insight data published today by De Beers Group, the shifting dynamic of women’s expanding roles in society and changing perceptions of femininity are creating new motivations of diamond jewelry acquisition. Social and economic changes have expanded the symbolism of diamond jewelry, women are now more empowered which has led to record levels of self-purchase, as well as the establishment of a new consumer type.
Hong-Kong based Chow Tai Fook jewelry Group, China's largest jeweler by market value, reports a 3.9% growth in net profit for the financial year which ended March 31, 2017, indicating a return to profit following a sales decline in Hong Kong and Macau, dating back to Q4 2014. The company told the media that although they had seen a stronger second half, a full-fledged recovery was still some time away.
According to industry insight data published today by De Beers Group, "U.S. Diamond Jewelry Demand Hits US$41 Billion High", total diamond jewelry demand from US consumers increased 4.4 per cent in 2016 to exceed US$40 billion for the first time. While slower US GDP growth in the first quarter of 2017 is likely to have impacted diamond jewelry demand in the short term, the US has recorded five years of consecutive demand growth. US consumers now account for roughly half of all diamond jewellery purchases globally – a level not seen since before the financial crisis.
American’s have a positive view of the current economic condition leading consumer confidence to reportedly reach the highest level in over 16 years. The Conference Board’s consumer confidence index jumped by more than 100 since February, indicating an improvement for the second consecutive month. It also eclipsed economists’ estimates of 114.
The diamond industry's famous supply and demand chart - the 'hungry crocodile' - representing its forecast of rising rough diamond prices as production falls to shortage levels, "Not only has never materialized, it oversimplifies the fact that the industry’s 15,000 different categories of diamonds are performing in very different ways," writes Thomas Biesheuvel for Bloomberg.
Stéphane Fischler, President of the International Diamond Council, founding member of the European Council of Diamond Manufacturers, Vice President of the World Diamond Council and President of the Antwerp World Diamond Centre talks to Manisha Gupta on India's CNBC-TV18. He shared his view of the Indian diamond industry and the road ahead for its diamond market. An abbreviated version:
CNBC: How do you see diamond consumption growth in India?
When people talk badly about diamonds, they think of the stone they're going to buy, but they don't think of the lives that are going to be affected. In Botswana, for example, 45-50% of the total GDP comes from diamond mining. So when people say, "I'm not going to buy a diamond because it has a bad rep", think of the two-plus million people in Botswana that will be affected.
Retail sales in Hong Kong across all categories resigtered an 0.9% drop in value terms and a 1.4% fall in volume terms year-on-year, according to statistics released last week by the HK government.
The Academy Awards taking place tonight are not only Hollywood cinema's biggest night of the year, but are also one of the most pivotal annual events for fashion, brands and iconic jewelry.
Chinese shoppers are generally estimated to make approximately 30% of the world’s luxury purchases, and according to De Beers "Diamond Insight Report", Mainland Chinese demand for diamond jewelry doubled from a 7% global share in 2008 to 14% in 2015, making it the second largest consumer of diamond jewelry. Bain & Company estimated their share of the global luxury market decreased by one percentage point in 2016, due mainly to China’s economic growth slowdown, thriving deman
Diamond industry analyst Avi Krawitz presents his thoughtful analysis of the year that was in the diamond industry 2016: "The Year Trust Returned to the Diamond Trade".
The diamond industry is changing, and the global environment in which we operate is changing too. There is a constant and inseparable interaction between the two. We must continue to evolve ... The diamond industry should change its traditional approach towards consumers. My proposed new approach towards current and future consumers is one based on openness and transparency. For most consumers, the diamond mining and manufacturing process is opaque.
Reflecting on the impact of the Trump election victory on the future of the diamond trade, particularly on the U.S. and India, independent industry consultant Pranay Narvekar writes in GJEPC's Solitaire International that America's share of the global polished diamond market - already the highest by far at 45% of total value - should only increase in the coming years, while the strength of the dollar and other expected policy moves will only exacerbate uncertainty throughout the trade.
Paul Zimnisky, independent diamond analyst of the eponymous Zimnisky Global Rough Diamond Price Index, writes that rough diamond prices are up 12.1% for the year 2016 through mid-December after major miners' efforts to curtail global supply, combined with a healthy 2015 retail holiday season, have tilted the skewed 2015 balance between over-supply and diminishing demand.
On November 14, Richemont announced they would cut 210 jobs, this following the announcement from Chairman Johann Rupert, who abolished the CEO position in the company’s biggest management shakeup since 2009.
Cheetos, the finger-lickingly good snack brand owned by Frito-Lay, has launched a high-quality jewelry collection to ring in the holidays. The jewelry set, ‘Eye of the Cheetah from the Chestora Collection’, includes a one-of-a-kind gold and diamond encrusted earring and ring set which retails at $20,000. The dazzling Eye of the Cheetah, an 18k yellow gold ring, features a magnificent 4.7 carat orange sapphire. Each earring boasts matching orange sapphires, totaling 2.89 carats.
According to a new study by The Economist Intelligence Unit (EIU) entitled “Chinese Consumer in 2030” (paywall) released this week, 35 percent of China’s population is predicted to be “upper-middle class” or above by 2030, reports Jing Daily. EIU's summary introducing the report states, "The traditional drivers of China’s economy, investment and exports, are struggling, but the country’s consumers keep spending.
Jing Daily writes that according to Bain & Company’s annual industry "Bain Luxury Study" report, 2016 marks the first time in history that Chinese consumers contributed less to global luxury sales than they did the year before, despite China’s luxury market growth re-emerging into positive territory after two years of recession.