
Sight box PIC By De Beers
A latest report by diamond major De Beers Group of Companies has revealed that investment in technology will continue to be a key differentiator across the value chain, while also safeguarding consumers against the risk of undisclosed treatments and synthetics, which could undermine the long-term credibility of the industry.
The company said in its Diamond Insight Report for 2014 that however, scale and differentiation will be increasingly important factors for future success, across all parts of the value chain. At the sametime the industry is likely to continue to consolidate and integrate (including through vertical integration).
“It is also expected to continue professionalising, modernising and becoming more transparent in the years to come – to the benefit of all those involved with this precious resource, from the geologist seeking the next big find to the bride wearing her diamond wedding ring.”
The recent acquisition of jewellery chain Zale Corporation by Signet Jewelers, another jewellery chain, illustrates the potential for consolidation in the jewellery retail sector. The report says online channel is becoming increasingly important around the globe, although consumers are going online for different reasons in different countries.
“In the US, the internet is becoming important as a sales channel in its own right: more than one-tenth of diamond jewellery sales in the US were made online in 2013. While online is not yet a significant sales channel in China, the internet is used by a quarter of acquirers for research purposes before purchase.”
Many specialist fine jewellery retailers such as Tiffany, Cartier, De Beers Diamond Jewellers and Chopard continue to invest in product offers and store modernisation to support the diamond dream. Another major trend to watch is increasing activity by global luxury fashion houses such as Dior and Chanel in the sale of diamond jewellery.
These global brands also support the diamond dream, and are raising consumer expectations of the store environment, in new design generation and customer service. Branded diamonds and branded diamond jewellery present a growth opportunity for diamond jewellery retailers in both developed and emerging economies.
Consumers worldwide increasingly prefer branded products and services. Brands can also be an attractive financial proposition for retailers because the brand identity frequently offers differentiation from generic propositions. The additional revenue that can be generated from brands should make it possible for retailers to invest in their store environment and in promoting their businesses and the category, leading to a virtuous circle of growth.