From top to bottom, the diamond market is changing, and in most places the change is anything but positive. The upcoming Sight, business failures in India and Israel and the languishing retail market all have issues. Not all is bad though, there is some good news as well. Rough Diamond Market: Worry about the Next Sight The upcoming Sight is …
Diamond Market Activity and Analysis - Page 7 of 9
All About the Diamond Market
The diamond market explained. Using our research, detailed data, and knowledge of the diamond industry, we put it in context with clarity.
What is the Diamond Market?
It is the collective set of activities that result in a piece of jewelry set with a diamond adorning a person. It covers a wide range of activities, and requires a wide range of disciplines to continue and develop. And yet, it is a relatively small industry that generates less than $100 billion in global retail sales.
Why is There a Diamond Market?
It is human nature to desire to adorn jewelry. Diamonds have succeeded to catch the attention of many thanks to their exceptional beauty, but there is more to this picture. The successful use of marketing since the early 1940s has had a large contribution.
Since the dawn of humanity, people have sought to adorn themselves. The desire to look good and decorate ourselves is set deep into our DNA. Be it a simple string of small shells or flowers, or an elaborate crown full of details and complex workmanship, we want it.
Of all the components that can be set in a decoration, diamonds reign supreme. Thanks to their sparkle, shine, rarity, and overall beauty, diamonds have always been coveted. It is that desire that the diamond market serves. It is the reason that a multi-billion dollar exits – to serve a human desire.
What Are the Components of the Diamond Market?
The foundation of the market comprises:
- Exploration
- Mining
- Rough diamond sales
- Diamond polishing
- Polished diamond wholesaling
- Jewelry making
- Retailing
- Consumer demand
For a deeper look into this topic, please see below:
Yikes! Jewelry Losing Market Share (and Consumer Interest)
Since October 2014, sales by specialty jewelers have been declining, while total retail sales in the US have been expanding, leading to a steady, yet constant loss in fine jewelry market share. Clearly, when given a choice, American consumers prefer spending their money on products other than jewelry. However, even in the recent past, this was not always the case. …
The Jewelry Retail Challenge: Think H&M
As we all know, the jewelry retail sector is struggling and facing many challenges: from declining consumer interest to limited marketing, from competing categories to unclear propositions, from confidence-eroding scandals to difficult pricing. Even benchmarking performance and prices is not widely available. And these are just internal issues. The question is no longer if the jewelry retail landscape is challenging, …
10 Things Learned at the Las Vegas Trade Shows
The Las Vegas trade show not only spotlighted where the problems are in the diamond industry, they also showed where positive change activity is taking place, possibly signaling the way for the rest of the industry. The JCK Las Vegas and Couture shows started with a certain degree of promise, and even though they suffered from low foot traffic, they …
Economic Indicators – Just What Are They Indicating?
Economic indicators for the US jewelry market are showing a long term downward trend and price is not the reason for lost consumer demand.
What is the Price of a Diamond?
Not too long ago, I posted a question on Twitter, asking people what they thought was the average price of a diamond. Specifically, I wondered how much, in informed people’s opinion, was the average wholesale price per carat of polished diamonds. Just for fun, pick a figure before reading on, and keep it in mind. In response to my question, …
Sight Okay, Retail Not at All
De Beers finally got the message and lowered Sight prices. Retail sales were worse than previously stated and the future does not look bright.
Sightholders Begin New Contract Period Cautiously
On Monday, 84 Sightholders and two will begin attending the first Sight of the new contract period – but quite cautiously. The Sight is not expected to be very large, around $400 million, because Sightholders opted to start the contract by scheduling fewer goods for the upcoming Sight. Why Are Sightholders Acting Cautiously The first Sight of the 2015-2018 Global …
Jewelry Expenditure Rises amid Stunted Growth, Millennials Stepping Off the Plate
According to a new survey of the US consumer market, even though Americans increased fine jewelry and watch purchases in 2014, the rate of growth declined. This reaffirms other indicators that while 2014 was a year of growth, it was a stunted growth. According to the 2014 Mid-Year Consumer Expenditure Survey, in the period between July 2013 and June 2014, …
Rethinking the Diamond Model
Sometimes, connecting figures in ways in which they are not usually put together can highlight a great truth – a truth hiding in plain sight. Most people who follow the diamond industry already are familiar with the following figures. Yet what they disclose in this context is perhaps new and may require rethinking the diamond model.