De Beers: In­dia The Third-big­gest Di­a­mond Mar­ket

Solitaire - - BULLETIN -

lobal di­a­mond jew­ellery de­mand rose three per cent to ex­ceed $80 bil­lion for the first time in 2014 – rep­re­sent­ing the fifth year of con­sec­u­tive growth since the global re­ces­sion – while global rough di­a­mond pro­duc­tion rose 6% to $19 bil­lion, ac­cord­ing to the De Beers Di­a­mond Insight Re­port 2015.

Con­sumer de­mand in 2014 grew in each of the top five di­a­mond con­sum­ing mar­kets – the US, China, Ja­pan, In­dia and the Gulf – which ac­count for 75% of global de­mand. The strength of the US dol­lar sup­pressed fur­ther global growth, which at con­stant ex­change rates amounted to al­most 5%.

In the last decade alone, the In­dian mar­ket has nearly tre­bled in size to about crore ($3.3 bil­lion). The brief con­trac­tion in 2013, caused by the de­pre­ci­at­ing pur­chas­ing power of the ru­pee and a weak­en­ing of the broader In­dian econ­omy, re­versed in 2014.

Sus­tained growth has been driven by a widen­ing con­sumer base and in­creas­ing vol­umes of di­a­mond jew­ellery sales. Around 25 lakh pieces of di­a­mond jew­ellery were ac­quired by In­dian women in 2013, roughly six times the num­ber ac­quired in 2002.

As a re­sult, In­dia has risen up the global di­a­mond ‘ league ta­ble’ and in 2014 the coun­try was the world’s third-largest con­sumer mar­ket for pol­ished di­a­monds, with an 8% share of global de­mand (mea­sured in pol­ished whole­sale value in USD) plac­ing it be­hind only the US and China, the re­port states.

Sur­prise gift­ing from male part­ners in In­dia is lim­ited, with only 2% of women re­port­ing this kind of gift in 2013. Non­bri­dal di­a­mond ac­qui­si­tions ac­count for the vast ma­jor­ity of di­a­mond de­mand in value terms in In­dia. The def­i­ni­tion of bri­dal women in the De Beers study in­cludes women who got mar­ried in the sur­vey year and moth­ers of brides in the same pe­riod. Bri­dal di­a­mond jew­ellery is the jew­ellery ac­quired by th­ese women specif­i­cally for the oc­ca­sion of the wed­ding in the sur­vey year.

In con­trast to other main di­a­mond mar­kets around the world where bri­dal jew­ellery in­cludes soli­taire di­a­mond en­gage­ment rings and eter­nity-type wed­ding bands, bri­dal jew­ellery in In­dia com­prises mainly large gold pieces with nu­mer­ous small di­a­monds.

In terms of prod­uct type bought, rings have gained share among di­a­mond jew­ellery pieces pur­chased in In­dia in re­cent years and, with al­most 50% share in 2013, they are the most pop­u­lar prod­uct.

The non-bri­dal seg­ment makes up 96% of to­tal de­mand among In­dian women in SEC A/B non-Elite and Elite groups, com­pared with 68% of the to­tal women’s di­a­mond mar­ket in the US, for ex­am­ple. The non-bri­dal seg­ment is also grow­ing quicker than the bri­dal sec­tor in In­dia, ex­pand­ing at four times the rate of the bri­dal sec­tor since 2002. This con­trasts sharply with the US, where the bri­dal seg­ment has taken share from non-bri­dal over the same pe­riod.

De­spite the strong per­for­mance in 2014, the re­port notes that the con­tin­ued

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