With De Beers’ Diamond Insight Report showing that the diamond jewellery market tightened last year, the company has remained wary in its outlook. However, the company sees untapped opportunity in a new market: the Millennials.
According to the company report, Millennials spent more than USD $25 billion on diamond jewelry across the U.S., China, India and Japan. This accounted for more than half the total retail value of diamond jewelry purchases in those top four markets.
“Millennials are still 10 years away from their most affluent life stage and the generation comprises more than 220 million potential diamond consumers in the four main markets,” says De Beers CEO Bruce Cleaver. “The diamond industry therefore has a major opportunity on the horizon but it will only capitalize on it fully if it continues to innovate and invest across the value chain.”
This year, De Beers will launch its “A Diamond is Forever” campaign in China for the Chinese New Year season, having reintroduced it in the U.S. for Christmas last year. It anticipates the slogan will resound with consumers in both markets, particularly with Millennials.
Thus, Cleaver expects the market to remain steady through the holiday season, with industry marketing campaigns increasing global demand.
“The rest of 2016 and 2017 are not going to be stellar years from a global GDP point of view or in terms of diamond jewelry consumption,” Cleaver told Rapaport News. “It does feel that the rough diamond world is in a more stable place and that stocks in the midstream are more in balance, but we remain cautious in our outlook.”
