GJEPC collaborates with De Beers, Chow Tai Fook to rejig diamond biz in China 

Diamond houses, miners, and retailers set to launch a $8-10 mn marketing campaign to recapture the attention of a major market, dwindled significantly since the COVID-19 pandemic 

Mumbai: Diamond houses, miners, and retailers are preparing to launch a major $8-10 million marketing campaign to recapture the attention of Chinese consumers, a market that has dwindled significantly since the COVID-19 pandemic. This ambitious initiative, set to be unveiled in partnership with De Beers and Chow Tai Fook, marks a pivotal effort to rejuvenate diamond sales in China. 

The new campaign, which will be formally discussed at the Hong Kong Jewellery Show in September, aims to address the current challenges facing the diamond industry. Chinese consumers, once among the largest buyers of natural diamonds, have shifted their focus to gold due to its higher liquidity and perceived stability during economic uncertainty. As a result, the demand for diamonds in China has diminished, shrinking the market share that once accounted for about one-third of global diamond sales. 

Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC) of India, highlighted the urgency of the situation, stating, “We are collaborating with Chow Tai Fook and De Beers to launch a comprehensive marketing campaign in China. Our goal is to restore consumer confidence in natural diamonds through every available marketing channel.” 

This campaign represents a strategic response to the broader challenges facing the diamond industry. Global retail demand for diamonds has declined, with polished diamond sales falling from $21.8 billion in 2014 to $16.3 billion in 2023. The supply of rough diamonds remains stable at 100-110 million carats, but the industry faces obstacles including US sanctions on Russian mines, a potential slowdown in the American market, and competition from lab-grown and synthetic diamonds, which offer lower prices and abundant supply. 

In Mumbai last week, key figures from the diamond industry convened to discuss these issues. Despite successfully navigating past crises, such as the 2008-09 financial meltdown, the current landscape presents new challenges. The industry is at a crossroads, with stagnant retail consumption over the past 15 years and a need for significant measures to drive demand. 

Pranay Narvekar, an industry advisor, emphasized the gravity of the situation: “The natural diamond market is at a tipping point. While rough diamond supply is expected to remain steady for the next decade, demand has not increased. Retail consumption has plateaued, and without a substantial effort to boost demand, the industry may face serious difficulties.” 

As diamond houses prepare to invest heavily in this new campaign, the focus will be on reigniting interest among Chinese buyers and adapting to an evolving market dynamic. The success of this initiative could prove crucial for the future of the diamond industry on a global scale. 

Retail Jeweller India News