FOCUS 焦点 JNA January/February 2025 | 9 We hope that the industry will begin to correct this by unifying behind ongoing generic campaigns over time,” explained Dvash. To his mind, at least five years of intensive marketing campaigns are needed to bring about a major change in consumer attitudes. Trade associations’ recent discussions on contributing to the NDC’s funds for category marketing could be one step in that direction. Greater economic and geopolitical stability will bode well for the diamond trade too. Dvash said, “We are hopeful that with the new US administration, there will be an end to the war in Ukraine and in the Middle East. This will have a calming effect on the market, and we hope to see a continued decline in interest rates.” Rowley sees a gradual return to normalcy for the diamond trade, driven by a good restocking period into the future. He said, “Early signs look promising; these will bring back the momentum of the natural diamond industry. It will not be a quick jump to growth or a hockey-stick recovery. There will be a gradual improvement of consumer demand levels for diamonds, which will bring back the momentum and stability of the natural diamond business.” Lustrous demand Pearls, for their part, are winning over more markets and tapping different consumer segments. The Japan Pearl Exporters’ Association (JPEA) is looking to further diversify the market for Japanese Akoya pearls this year. According to JPEA President George diamonds. According to Dvash, SDE is also beginning a marketing campaign for natural diamonds. This will join existing promotional efforts by De Beers and the Natural Diamond Council (NDC) to appeal to younger consumers. The slump in Chinese demand for diamonds has led industry stakeholders to train their sights on alternative consumer markets. India has emerged as a strong contender, driven by a middle class that is showing a greater appetite for diamonds. Rowley said natural diamond demand in India has increased by 30 to 40 per cent in the last two to three years since Covid. “We see future growth potential there because the economy is booming, perhaps owing to the slowdown in China,” he explained. “Investment has moved in, and the country’s growing middle class is looking at diamonds differently. Aside from traditional jewellery, there are opportunities to sell diamonds for fresh, inventive designs in India.” Dvash also observed the rise in Indian consumption of diamonds in recent years, despite the market’s usual emphasis on gold jewellery. Since there is a tax on import of polished diamonds, the Indian market is almost exclusively being supplied by local manufacturers, he added. The US is likewise returning to form for De Beers. Rowley anticipates higher levels of natural diamond restocking among retailers this year. Also showing growth for De Beers are Japan and Southeast Asia, but Rowley admits the latter is a smaller market that cannot compensate for losses in China. And neither can India for that matter, he noted. “We are looking at alternative markets to sustain momentum until Chinese demand returns, which we hope will be soon,” Rowley continued. Gradual recovery For Dvash, the biggest challenge to the industry is the overall lack of excitement among younger generations for natural diamonds. “These consumers have not been exposed to generic campaigns extolling natural diamonds as symbolising eternal love, something that was clear to older generations. Early signs look promising; these will bring back the momentum of the natural diamond industry. It will not be a quick jump to growth or a hockey-stick recovery. There will be a gradual improvement of consumer demand levels for diamonds, which will bring back the momentum and stability of the natural diamond business. – Paul Rowley, Executive Vice President, Diamond Trading, De Beers Group
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