Latest Trends In The Diamond Industry
While we are nearing the end of the year 2020, it is certain that the overall impact of the pandemic we have witnessed this year will last for a long time. The processes and projections of manufacturing, demand, supply, trade, and more trends in every industry have been widely affected. Things are no different for the Diamond industry. The exports of polished diamonds and imports of rough diamonds in India, collapsed by 79% and 48 % respectively in March 2020. (The Economic Times). The production volume of diamonds in the fiscal year was almost half of the previous year and the second-lowest production volume in the last nine financial years.
Along with that, here are the changes and trends that will project and redefine the future of the diamond industry:
Will Continue To Be A Driving Factor For Majority Sales:
As we have known, the sales of such commodities as ‘diamonds’, are driven by ‘emotions’, ‘celebrations’, and ‘traditions’. With increasing disposable income in the hands of consumers, the spending on speculative commodities is also increasing. At the India International Jewellery Show Virtual, conducted in October 2020, retailers were seen stocking diamond and gold jewelry for the upcoming festive and wedding season. A feature in the ‘Times Of India’ states that ‘Colin Shah’, the Chairman of GJEPC, shared that “In India, sales would be driven by factors like postponed engagements and marriages, festivities and other gifting occasions.”
Changes In Consumer Preferences Are Attracting More FDI:
As a result of the adoption of the western lifestyle, the gems and jewelry sector is witnessing changes in consumer demands and preferences. They are now looking forward to new varieties and designs of diamond jewelry. Their demands are being taken care of, with increasing Foreign Direct Investments in the sector. According to The Department for Promotion of Industry and Internal Trade, the cumulative FDI inflow in diamond and gold ornaments was US$ 1.17 billion for the period between April 2000-March 2020. (Indian Brand Equity Foundation).
A Share Of The Target Market Diverting To Lab-grown Diamonds:
As consumers are becoming more aware with each passing day, the millennials buying diamonds have started becoming skeptical about mined diamonds because of their high environmental and humanitarian costs. Therefore, consumers are now making a conscious choice and choosing lab-grown diamonds that are chemically, physically, and optically identical to mined diamonds. So, the consumers find what they were looking for minus the cost of harm to the environment.
Access To Quality Resources Is Important For Manufacturers:
As consumers are becoming more aware with each passing day, the millennials buying diamonds have started becoming skeptical about mined diamonds because of their high environmental and humanitarian costs. Therefore, consumers are now making a conscious choice and choosing lab-grown diamonds that are chemically, physically, and optically identical to mined diamonds. So, the consumers find what they were looking for minus the cost of harm to the environment.
Virtual Reality Will Shape Up Shopping Experiences:
Gone are the times when consumers could live and shop as they did, Pre-Covid. Sellers are now figuring out a way to deal with the changing times and emerging technologies are coming to their rescue. Companies such as PC Jewellers, PNG Jewellers, and Popley and Sons are planning to introduce a VR shopping experience for their customers. A ‘VR headset’, will enable customers to select any jewelry, see it from different angles and zoom in to view the intricate designs.
To Put It All Together
Based on the latest trends in the Diamond Industry, we can say that manufacturers and sellers will have to pull up their socks and alter their ways of doing business to match with the new normal and the changing consumer mindsets. Considering these trends and adapting to them, will be beneficial for Diamond manufacturers and retailers in the longer run. While the path may be rocky, it is only certain that, for the diamond industry, the light will only shine brighter at the end of the tunnel where all good things await. We strongly feel that ethics and efficiency will be the strong pillars that pave the road for the diamond industry.