Diamond Jewellery Market Trends

Coming up as one of the most preferred form of jewellery for Indians, Diamond Jewellery market has seen a huge growth recently. It was however marked some very atypical trends.  

The June-July period is usually a non-performing period for jewellery market in India. Since performance of jewellery markets in India are decided much by other factors like the wedding season and the festive seasons,  June-July remain pretty cold as compared to these seasons. However, unlike expected, there was a good rise in the sale of Diamond Jewellery instead of a slump. The reason being a drop in the prices of rough diamonds. The market experienced a fall of around 10% in the prices of rough diamonds, which in turn converted into some good discounts for customers and hence drove better sales.

Mr. Mehul Choksi, Chairman and Managing Director of Gitanjali, world’s largest jewellery brand, stated that the season saw an increase of 40% in revenues for the group. It was a combination of the drop in diamond prices and the consequent slashing in rates that the group managed to tap in profits even in slack season. The Group could offer discounts up to 55% to its customers.

This kind of volatility in market was however not experienced by gold brands. Gold keeping its steady hike in prices hasn’t seen a major downfall and hence no special incentives for people apart from the regular season induced buying.

The diamond jewellery market however had a rough phase when the rupee weakened. With the fall in the value of the rupee as against the dollar, diamond import became more expensive, hitting the diamond and diamond jewellery importers.

Most big brands are now turning online to sell their diamonds. Common reason being the potential of online trade. The online trading medium lets them cash on the market volatility. Since an online portal reduces the physical store cost and also reduces the physical distance from the source to the customer, it is easier for sellers to offer instant offers and discounts.  In the June-Jul y slump, most of the brands offered huge discounts to customers if they made online transactions. This allowed the customer the convenience of location and saved costs for the seller.

Contribute it to the online arena or the growing taste of Indians for diamonds, India has recorded a 10-12% increase in polished diamond consumption. One can expect greater volatility in the days to come. With its growing penchant for diamond jewellery, India is surely going to gain a lot in the Diamond business.