市场情报 JNA May/June 2023 | 45 “Trends that begin with younger consumers quickly spread to more and more segments of the market. Our industry, which has always been closed and secretive, must open itself more and more to adapt to the demands of the new consumers,” he explained. Branded proposition In a separate interview, De Beers Brands CEO Marc Jacheet underscored the importance of brands in driving desirability, building experiences and sharing values, especially among Gen Z and Gen Alpha consumers. “We found that 28 per cent of Gen Z consumers rank these as critical in their buying patterns. It is not yet the vast majority but it is a very clear emerging trend that will drive diamond demand in the years to come,” Jacheet told JNA. The De Beers official noted that the market for branded luxury jewellery with sustainability at the heart of its message is expected to grow over 20 per cent in the decades to come. In contrast, the unbranded jewellery market is set for a 3 to 4 per cent increase while the branded luxury jewellery category is poised to jump 8 to 12 per cent. Fundamental changes are also sweeping the diamond retail market. Large brands and chains with substantial marketing budgets are cornering the market, which was once dominated by smaller mom-and-pop stores, Dvash noted. “The massive investments (large chains) can make in advertising bring results. Major brands are forcing small stores to close. While this can create greater demand for diamonds, the industry will be concentrated in very few hands. Those with strong brands will grow and the smaller stores will find themselves out of business,” he explained. Jacheet sees brands also altering the retail experience as successful design houses create desirability at every single touchpoint. “Brands are not just vehicles for advertising and promotions or to drive traffic to the stores. They actually get built at retail by shaping and delivering the customer experience. Consistency across such touchpoints is thus fundamental to the brand promise,” he said. Competition Challenges however abound, including competition from lab-grown diamonds (LGDs), said Dvash. But while LGDs have made significant advances in the US market, they were not as successful in China where consumers were said to prefer natural diamonds even if these may be smaller, he pointed out. “LGDs bring consumers to the market who perhaps would never have bought diamonds before. On the other hand, they are eating into the sales of natural diamonds. Perhaps in five to 10 years, these consumers will buy natural diamonds. But if the prices of LGDs continue to decline, natural and lab-grown diamonds will likely become two separate categories that can exist side by side,” the WFDB official said. Full disclosure is another requisite for peaceful co-existence, according to diamantaires. The Natural Diamond Council tackles this in its latest analytical report, “Addressing myths and misconceptions about the diamond industry,” which aims to combat misinformation about natural and lab-grown diamonds. “In an age where consumers are more inquisitive and enlightened than ever, they wish to know about the values and responsible business practices from the companies and indeed the wider industry from which they are purchasing,” said NDC CEO David Kellie. Among the report's key messages are that LGDs can be detected from natural diamonds, not all LGDs are sustainable, and natural diamonds benefit their countries of origin. Provenance The coronavirus pandemic released, in its wake, a huge wave of demand and rising prices. The Russia-Ukraine war however has led to inflation and rising interest rates, causing US consumers to suspend spending until more certain times, according to Dvash. At the World Diamond Congress, Edward Asscher, outgoing president of the World Diamond Council, noted that further restrictions could be placed on diamonds from Russia, with the other G7 countries poised to adopt the US’ stringent restrictions on Russia-sourced goods. Provenance of a different sort is also gaining steam in the industry. According to Asscher, today’s consumers increasingly ask about the origin of their diamonds and the conditions in which they were mined and manufactured. “Technology provides us with the tools to confirm a stone’s origin and provenance. Artificial intelligence and other technologies like blockchain enhance transparency and could someday provide a solution for full traceability,” he said. Opportunities Markets are also on the mend, with China once again showing the strongest potential. Already the world’s second biggest diamond market, the country is poised for further growth as it rebounds from its pandemic-induced stupor. Conroy Cheng, vice chairman of Chow Tai Fook Jewellery Group 周大福珠宝集团副主席郑志恒
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