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Ahead of the festive season, India’s diamond jewellery exporters are seeing a change in consumer preference---unlike in past years, buyers are now opting for ornaments in the mid-lower end of the spectrum, preferring lower-purity gold and small diamonds, especially coloured gems.
Though signs of an economic recovery in the US have led to hopes of a rebound in India’s gems & jewellery sales in the coming season, exporters remain cautious.
“This year, we are receiving bulk orders from the US in the lower- to mid-end category, against higher-end in previous years. While the actual growth in orders will be known only after a few weeks, we are hopeful this season will be better than last year,” said Vipul Shah, chairman, Gems and Jewellery Export Promotion Council.
The festive season, stretching till the second week of February, accounts for about 40 per cent of global jewellery sales. As the US is the world’s largest gems & jewellery consumer (accounting for 38 per cent of global annual demand), it is the most important market for global diamond ornament manufacturers and retailers.
While the US is on a recovery path, the European Union is showing signs of a slump. The US Federal Reserve has decided to phase out its quantitative programme by this year-end, raising the prospects of a rise in interest rates. Higher-end diamond ornaments are priced more than $1,000, while mid- and lower mid-end items cost $400-1,000. Ornaments at a price range below this are categorised as low-end and extremely low-end.
De Beers, the world’s largest rough diamond miner, expects global jewellery demand to rise in the long term. In 2013, global demand for diamond jewellery stood at a record $79 billion, according to the inaugural Diamond Insight Report, published by De Beers Group.
Philippe Mellier, chief executive of De Beers Group, said: “With demand estimated to increase from 2013’s record levels, the opportunity for growth is clear. But this must not be seen as cause for complacency. The industry will continue to lose ground to other categories if it does not invest significantly in production, marketing and technology.”
In 2013, sales of polished diamonds in the US increased seven per cent. Between 2008 and 2013, India and China saw their domestic diamond jewellery segments grow at a compounded annual rate of 12 per cent, in local currency terms, Mellier said.
