According to Rapaport’s monthly report for September, Diamond markets were steady last month.
The report notes that the industry’s outlook improved as trading at the Hong Kong Jewellery & Gem Fair was better than expected. Moreover, this month’s polished market was supported by relatively high rough prices. Suppliers held polished prices firm, preferring to delay sales rather than suffer losses from expensive rough costs.
Additionally, the diamond market is now readjusting to lower retail inventory requirements, particularly in the Far East where jewelers have halted or scaled down their store expansion programs. This month, U.S. retailers maintained inventory levels consistent with last year ahead of the fourth-quarter selling season.
Polished manufacturing is expected to soften for the rest of the year as dealers concentrate on filling final Christmas orders. A buildup of inventory is anticipated as demand remains relatively sluggish. The season is not expected to be stellar as consumer spending is cautious amid economic volatility while the industry’s generic marketing campaign is yet to gain traction.
This suggests that independent retailers and brands alike should be focusing on novel marketing initiatives, including interesting deals and interactive social media campaigns. With a slow holiday season ahead, companies must take additional steps to attract hesitant consumers.
The entirety of the report is available at store.rapaport.com/monthly-report.
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