CollectionsSep 06, 2024
The ‘Fabergé x Beetlejuice Beetlejuice’ Collection is Scary ChicIt’s showtime for these jewels, inspired by the motifs and color palette of the new Tim Burton film.
SurveysDec 12, 2016
The 2016 Global Diamond Report Is Out
While diamond consumption globally is in a “moderation phase,” the overall outlook for the future is positive, the report says.
Antwerp--The Antwerp World Diamond Centre and consulting firm Bain & Company have released their sixth annual global diamond jewelry report.
Examining 2015 and early 2016, the report states that diamond consumption is in a “moderation phase” after growing from 2012 to 2014.
Demand is highest among U.S. consumers, and this was reflected in the improvement of same-store revenues from mainstream jewelry retailers in 2015 like Signet Jewelers Ltd., which owns and operates Kay Jewelers, Jared the Galleria of Jewelry and Zales stores.
Worldwide, retail sales of diamond jewelry increased by 3 percent in 2015 at constant exchange rates, but declined by 2 percent in U.S. dollars. This is due in part to Chinese sales; mainland sales were strong but Hong Kong and Macao experienced a decline in tourist spending.
According to the report, rough diamond sales fell 24 percent in 2015 as suppliers reduced output to match decreased customer demand, increased inventory, and cut rough diamond prices.
Profit margins were some of the lowest in recent years as demand slowed and polished diamond prices decreased. This was coupled with high inventory levels, culminating in cutters and polishers unloading approximately $5 billion in inventory to improve liquidity.
After a difficult 2015, midstream operators restocked in the first half of 2016, and rough diamond sales grew by 20 percent.
This isn’t necessarily positive, however, the report notes, as retail demand must now increase to meet the supply.
In the first half of 2016, sales declined at major jewelry retailers--like Signet--indicating the midstream sector likely will be oversaturated.
Remarking on retail’s hottest topic--millennials--the global diamond jewelry report states that the generation totaled 900 million across India, China and the United States in 2015, with a total income of about $8 trillion. The report advised that the jewelry industry invest in appropriate marketing and brand building that is millennial targeted.
Overall, the outlook for the diamond market is good, with supply of rough diamonds expected to stay in sync with demand over the next three years.
The recent decrease in rough demand is expected to reverse, instead growing probably about 2 to 5 percent annually, with rough production expected to dwindle by about 1 to 2 percent through 2030. This should even out the supply-demand relationship, the report states.
A key factor in this, however, is the growth of the Chinese and Indian middle classes.
Threats to the industry include lab-grown diamonds, possible U.S. recessions,
and the trend of slowed consumption in China, the report states.
Also, the midstream category of diamond players should “secure access to financing and continue to improve its business model to sustain profitability amid potential price volatility.”
To read the entire 2016 Global Diamond Report, visit Bain.com.
Also, the midstream category of diamond players should “secure access to financing and continue to improve its business model to sustain profitability amid potential price volatility.”
To read the entire 2016 Global Diamond Report, visit Bain.com.
More on Surveys
The Latest
FinancialsSep 06, 2024
Movado Lowers Guidance as Q2 Sales SlipCEO Efraim Grinberg pointed to a challenging consumer spending environment, particularly in the watch category.
CollectionsSep 06, 2024
Piece of the Week: Lizzie Mandler’s ‘Liquid Gold’ HoopsInspired by a 19th century sculpture, Mandler transformed gold into liquid for these earrings.
Brought to you by
How to Increase Instagram Followers Naturally in 2024Growing your Instagram following organically is more important than ever in today's technological environment.
CollectionsSep 05, 2024
Bella Hadid Is Chopard’s New Brand AmbassadorThe model and entrepreneur stars in two new Chopard campaigns.
Weekly QuizSep 05, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsSep 05, 2024
Nordstrom Family Offers to Buy Namesake Retailer for $3.8BMembers of the founding family partnered with Mexican retail company El Puerto de Liverpool to possibly take Nordstrom private.
MajorsSep 05, 2024
Tiffany & Co. Celebrates Elsa Peretti’s Bone CuffThe iconic design has joined a lineup of notable pieces featured in the jeweler’s “With Love, Since 1837” campaign.
Brought to you by
Watch: Natural Diamonds: A Great (but Often Untold) Geology StorySupplier Spotlight Sponsored by GIA.
MajorsSep 05, 2024
Former Chopard, Frederique Constant Executive Tapped to Head CadarRalph Simons is now CEO of the jewelry brand started by fashion designer Michal Kadar and her husband, Avraham Kadar, in 2015.
ColumnistsSep 04, 2024
Creative Connecting: Why ‘Experience Content’ Matters Jen Cullen Williams and Duvall O’Steen say it’s all about giving your social media feeds a human touch.
TrendsSep 04, 2024
Taylor Hill, Soo Joo Park Star in New Messika CampaignThe models and friends of founder and artistic designer Valérie Messika showcase the brand’s jewelry in the “Back to Icons” campaign.
MajorsSep 04, 2024
Bloomingdale’s to Highlight Italian Jewelry in New Campaign“From Italy, With Love” will showcase Roberto Coin, Marco Bicego, and other Italian brands.
CollectionsSep 03, 2024
Zales, Prince Debut US Open-Inspired CollectionThe jewelry retailer will also have a diamond-set tennis racket on display at the tournament.
IndependentsSep 03, 2024
Ylang 23 Relocates, Expands Dallas FlagshipThe retailer has moved into a 3,200-square-foot space at The Shops of Highland Park.
TrendsSep 03, 2024
Amanda’s Style File: Sapphires for SeptemberThe month’s birthstone is vibrant in every color.
WatchesAug 30, 2024
Breitling Marks 140 Years With Special Editions of 3 Classic WatchesThe special editions of the Premier, Navitimer, and Chronomat are equipped with a new perpetual calendar movement from the brand.
CollectionsAug 30, 2024
Piece of the Week: K. Brunini Jewels’ Butterfly RingFly away with designer Katey Brunini’s butterfly ring, as its spring-loaded wings flutter above your fingers.
MajorsAug 29, 2024
Brilliant Earth Promotes Two Executives to C-Suite RolesThe jewelry retailer has a new chief brand officer and chief operations officer.
MajorsAug 29, 2024
JA Takes Its Learning Workshops to Washington D.C., New YorkIts next event will take place in D.C. on Sept. 17 and in New York City on Oct. 29.
SourcingAug 29, 2024
Lotus Gemology Publishes Book on Jade History“Broken Bangle: The Blunder-Besmirched History of Jade Nomenclature” is an in-depth look at the evolution of jade terminology.
SourcingAug 29, 2024
De Beers Looks to India to Boost Demand for Natural Diamonds It is partnering with retailer Tanishq on educating salespeople, shaping the in-store experience, and a “360-degree” marketing campaign.
TechnologyAug 28, 2024
Verizon Throws Its Hat in the Ring on Smart Rings The wireless carrier is now stocking the Ultrahuman Ring Air in select U.S. stores.
CollectionsAug 28, 2024
Pamela Love’s ‘Jardin’ Collection Is Filled With Lush Green EmeraldsIn a collaboration with Muzo, Pamela Love hand-selected each Colombian emerald for eight one-of-a-kind pieces.
MajorsAug 28, 2024
Stuller Named ‘Great Place to Work’The certification is based on employee responses about their experience working at a company.
Policies & IssuesAug 27, 2024
US to Allow Import of ‘Legacy’ Diamonds From RussiaOFAC has issued two licenses addressing the issue, one for diamond-set jewelry and one for loose diamonds.
GradingAug 27, 2024
IGI Files for IPO in IndiaThe gemological lab is looking to raise up to $477 million.
Events & AwardsAug 27, 2024
Here Are the Winners of the 2024 CASE AwardsThe annual jewelry design competition celebrates creativity, artistry, style, and excellence.
