Key trends for the diamond industry
A lot has changed in the diamond industry over the last few years. For one, diamond jewellery consumption in India has considerably increased, be it online or offline. And in diamond jewellery, the solitaire and solitaire jewellery segment has become the fastest-growing segment. There is more to diamonds than ornamental value. There are a few factors that have made solitaire jewellery so popular and given diamonds the status of a “beautiful asset”.
The present generation & the diamond industry
When it comes to purchasing diamonds, millennials, also known as Generation Z, values the transparency, integrity and honesty over the diamond pricing. Most of this generation are working professionals for whom diamonds are part of their daily lives. They can afford good quality solitaires provided they understand what they are paying for and how authentic the product is.
Diamonds as a reliable asset
Consumers no longer purchase diamonds just with the aim of reselling them. A diamond is now seen as a reliable asset which people can enjoy while its value appreciates. You can rely on a diamond as much as you can on a house in the time of an emergency. In India, diamonds have always had a resale value. Of late, internationally too, diamonds have become a reliable asset.
Diamond consumption is consistent in every corner of India. And there is still more potential. It is this consistency that gives more confidence to the consumer.
The need for uniform diamond pricing
The industry is working towards creating the right perception of diamonds as a reliable asset. One of the first steps here can be establishing uniform and transparent pricing for diamonds. Divine Solitaires is the first solitaire brand to have pioneered a retail pricing system for diamonds. With the Nationwide Standard & Transparent Pricing, we have been able to provide more confidence to the consumer.
It is easier for them to upgrade and buyback diamonds since they know that there are a uniform and transparent pricing mechanism. If the industry follows a system like this, it will be convenient for consumers to rely on diamonds.
Consumers going online
Another notable trend is that of consumers researching jewellery, especially solitaire jewellery online. The online world is more relevant than before. A 100% increase in e-commerce sales and more than 350% increase in online jewellery research tells a lot about this trend. People like to know more about their diamond jewellery, the variety of designs and reviews from other customers before they make a purchase. The modern consumer is well-informed and updated.
The relevance of brands in the diamond industry
The modern consumer is increasingly turning towards brands. This is clear, especially when it comes to diamonds. Considering overall diamond consumption, brands are selling much more. Up to 5 years ago, brands, online or offline, were selling only 20% which has now become 45%.
Consumer behaviour is also transforming. It is working women, and tier 2 and tier 3 cities that are boosting the consumption. It is also diamonds under one carat that are much more popular, given their affordability. Diamonds are now bought with a purpose.
People also know how to consume data. They understand the difference between advertising and genuine product, which is why they are not always swayed by what they only see.
Consumer experience is very important for any brand. It has been observed that if the experience has been great, then the consumer will keep coming back, which increases loyalty more than advertisements.
The Indian perspective on the diamond industry
About 90% of Indian consumers have consumed gold whereas less than 2 and ½ per cent have consumed diamonds. This shows that there is a lot of scope for growth in diamond consumption. If the industry builds on consumer confidence with the help of transparent pricing and promotes diamonds as reliable assets, then there can be positive growth.
The consumer base can increase nearly threefold in the next few years. This is the opportunity that the industry should take. The government has done a lot of the industry and we can hope for a business-friendly budget, especially where diamonds are concerned. Though diamond consumption is positive, the industry needs the right support from the government.
About the author:
Mr Jignesh Mehta is the Founder and Managing Director of Divine Solitaires, based in Mumbai. With over two decades of global experience in the diamond industry, Mr Mehta is a 1st generation entrepreneur and has completed his Masters in Marketing from the University of Western Sydney, Australia and a diamond grading course from Antwerp, Belgium.
The diamond industry has a long way to go as far as price transparency is concerned. So much so that …