A new survey highlights rapid growth of diamond consumption in India’s middle class. India is quickly developing a diamond consumer market to complement its pre-eminence as a diamond polishing centre, Stephen Lussier, Executive Vice President of Marketing for The De Beers Group of companies, said in an address to the World Diamond Conference in New Delhi last month.
Announcing the results of De Beers’ recent Consumer Diamond Purchasing Survey in India, Lussier noted that the acquisition rate for diamonds in India’s middle class has risen sharply from 2% in 2002, to 9% in 2014. He also stressed the favourable environment for further diamond consumption growth in India, noting that the country’s number of middle class households is forecast to grow by a compound annual rate of 12% over the next decade.
The Indian market “serves as a microcosm” for trends in other markets, Lussier said – pointing to projected global demand growth for diamonds, which “continue to captivate consumers the world over”.
However, Lussier, who is also CEO of Forevermark, cautioned that increased competition from other luxury products means the diamond industry must capitalise on opportunities in areas such as online marketing and branding if it is to maximise its potential.
Underlining De Beers’ commitment to India, Lussier explained that it has invested nearly $10 million in a state-of-the-art inscription and grading operation in Surat, which has the initial capacity to inscribe 400,000 diamonds – dramatically improving the service for its Indian-based Forevermark partners.
Lussier showed how Forevermark, the diamond brand from The De Beers Group, has positioned itself successfully, noting: “Our promise of diamonds that are beautiful, rare and responsibly sourced is driven by consumer insight and backed-up by a commitment to ensure our operations live up to our promise”.
In closing, Lussier emphasised his confidence for the future of diamonds in India, stating that the Indian diamond industry and government can work together to “lead diamonds into a period of unprecedented growth”.