Diamond industry is set for a vibrant year: Sachin Jain

These are extraordinary times. And in the shadow of the pandemic and a tumultuous economy, consumer behaviour is under keen watch. There are clear signs of revival of the diamond industry, based on appreciation of the emotional symbolism of diamonds. Jewellery that represents everything from spiritual to sentimental to pieces that are connected to guidance, strength, luck and love continues to take shape in different incarnations and distinctive designer’s collections and power the industry in new ways. No symbol has the same wonder, uniqueness and beauty as a natural diamond. Throughout history, diamonds have been a symbol of love, happiness and power and celebrate life’s special moments. Even during the pandemic, we noticed the value that diamonds held, people were home reconnecting with their loved ones and realized the importance of fewer but better things. They were drawn to making quality purchases that were real, valuable, long-lasting, and that defined a deep meaning.

Personalisation

For centuries, diamonds have been widely known as the universal symbol of eternal love and commitment. Through their journey on earth, these diamonds have stood strong during natural disasters, extreme heat in the Earth’s mantle where they’re formed, and a myriad of other stringent processes and checks before they’re ready to be held in the hands and hearts of a customer, thereby sealing a lifelong emotional connect. Made to be worn and cherished for years to come, a diamond gift is weighted in meaning and forever represents the special moment or occasion behind it. Earlier, diamonds were purchased to mark a milestone like an engagement, marriage or a birth of a new baby, now it can be about anything – graduating high school or college or the first pay cheque. As women have become more independent, self-purchase is also on the rise. Every piece of jewellery that a woman self-gifts tells a personal story or a milestone she ticked off that has made the diamond a treasure to be preserved forever. Apart from the brilliance and rarity of the gem, diamonds also have a unique quality to always remind the wearer of what they’ve achieved and how far they’ve come with their loved ones. No other luxury purchase can strike a strong emotional chord as do diamonds. We’ve been given the gift of time to treasure intimate moments and craft special memories.

What our research says

Our research has shown that there is increasing demand for natural, rare, beautiful and responsibly sourced diamonds. The diamond industry expects to see significant rebound in diamond consumption that is connected to what diamond jewellery means to the Indian consumer. With increasing personal disposable income, growing middle class population, rapid urbanization, and consumer preference towards investment in gems and jewellery, the diamond industry is all set for a great future. Consumers would continue to spend on valuable products that convey a strong emotional bonding, especially in the post-pandemic world. Clearly, the emotional significance of diamonds is unbreakable even in the face of a global pandemic.

The road to recovery

The industry witnessed a huge response post the second wave and is looking forward to progressive growth in 2022. Consumers not just want to invest in jewellery, but are also looking for an emotional connect that can hold value, packed with assurance of genuineness. This major move in consumer choice became a catalyst to boost the growth of diamond sector in India. Furthermore, the government’s decision to reduce customs duty on cut and polished diamonds and gemstones from 7.5 percent to 5 percent in the recent Union Budget will provide the much-needed boost to the industry. Also, the proposal to simplify the regulatory framework to facilitate export of jewellery through e-commerce will certainly strengthen the sector and will help the industry’s overall growth in the coming year which, in turn, will contribute to greater economic growth for the nation.

Sustainability will be a driving factor

While emotions are highly valued, sustainability is the key to a better future, one that is fairer, safer, and healthier, where safety, human rights and ethical integrity continue to be paramount, where communities thrive and where the environment is protected. This notion of social purpose will come to sit at the heart of the consumer proposition for all luxury brands – and even more when it comes to highly meaningful luxury purchases such as diamonds.

Conclusion

Consumers want to adorn jewellery as a reflection of beliefs and values inherited deep into their spirits. The materials, shapes, stones that define the consumer are more relevant to render in jewellery in these times more than ever. And despite the challenges experienced due to the pandemic, Indian consumers have expressed strong demand for diamonds, outstripping demand for other luxury categories. Domestic trends signal that there could be an explosion in demand for diamonds that would mark the beginning of a new era of diamond buying as love for diamonds will be forever.

Courtesy: Times of India