Forevermark jewelry is now sold at exclusive boutiques and high-end retailers in India; pictured is the Forevermark boutique in Mumbai.
Mumbai, India— In 2005, India’s domestic diamond jewelry market was relatively small, accounting for just 2 percent of total global consumption.
That figure has risen to 11 percent today, according to De Beers Group, making India the second-largest market for diamond jewelry worldwide.
“Diamond jewelry demand in India has grown steadily in recent years,” said Sandrine Conseiller, CEO of De Beers Brands.
“Today, the country is the fastest-growing market in the world in this category.”
Diamond jewelry sales in the country, which stood at $4.6 billion in 2021, rose by 8 percent to $5 billion in 2022 (15 percent in local currency), according to De Beers’ Diamond Insight Report from 2023.
Sales have continued to climb since then and are widely expected to reach about $8.5 billion to $9 billion this year.
Amit Pratihari, managing director of De Beers India and Forevermark India, said, “The most significant growth in demand in India has come in the last couple of years, with a strong growth profile in 2023 accelerating as we have entered 2024.”
Buoyant Economy, Rising Affluence
Indian diamantaires describe the local market as one of the bright spots amidst the global economic slowdown.
The country’s economy is among the fastest growing in the world. There is an expanding, and increasingly affluent, middle class, and consumer tastes are influenced by global trends sparking a rising interest in diamond jewelry.
“The Indian natural diamond market is witnessing unprecedented expansion, creating new opportunities and challenges for industry players,” said Venus Jewel Managing Partner Rajesh Shah.
Kisna Diamond & Gold Jewellery, the flagship retail brand of Hari Krishna Exports, recently expanded its exclusive showrooms to 40.
These are primarily located in metropolitan cities and tier 1 (the largest, most established cities) and tier 2 cities (those that are smaller but growing rapidly) in addition to the brand’s presence in more than 1,500 shop-in-shops in local jewelers across the country.
In a presentation at the “InnovNXT, Forty Under 40 Leadership Summit” organized by the Gem and Jewellery Export Promotion Council (GJEPC) earlier this year, Pratihari noted that diamond jewelry demand is urban-centric, with larger cities (tiers 1, 2 and 3) accounting for 80 percent of all purchases.
The buyers are predominantly younger consumers, with 50 percent under 35 years old and the share of millennials (now 28-43 years old) and Gen Z (now 12-27 years old) buyers accounting for about 75 percent of all purchases.
He estimated that the number of mid- to high-end consumers in India will increase 20 percent between 2022 and 2030.
Immense Potential
“Jewelry containing natural diamonds is one of the most highly desired items among Indian female consumers, for both gifting and self-purchase, and this desirability has also increased in recent years,” Conseiller explained.
Ajoy Chawla, CEO of the jewelry division at Titan Company Ltd., which owns retail chain Tanishq, India’s largest jewelry retailer, noted recently that there is a massive opportunity for diamond sales to increase given the very low penetration of diamond-set jewelry (also referred to as studded jewelry) in the market.
Recent projections by Red Seer, a consultancy firm, estimate that the share of studded jewelry in India, which was about 14 percent in 2020, has risen to 18 percent in 2023 and could touch 25-30 percent in the next five years.
Against this backdrop, De Beers and Tanishq recently entered into a long-term strategic collaboration to boost diamond demand in India.
Conseiller said this is part of De Beers’ refreshed approach to category marketing, which is focused on establishing strategic partnerships with retailers.
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Unique Features
It is not just affluence that has propelled growth.
De Beers, which has three decades of experience in retail in India, pinpoints some unique characteristics of local demand.
One of these is self-purchase, which accounts for around 60 percent of diamond jewelry demand.
Conseiller noted that the role and influence of women is particularly strong in India.
“Even when the purchase is funded by someone else (such as a gift), women still solely make the decision for 94 percent of purchases,” she said.
Pratihari shared an interesting insight on the growing influence of digitalization and e-commerce, noting that it made diamond jewelry, “more accessible to a broader audience across India’s urban and semi-urban regions.
“E-commerce, in particular, is helping tap into demand from younger and tech-savvy consumers.”
The rapid rise of an organized sector in Indian jewelry retail is another enabling factor.
Though wearing jewelry is an intrinsic part of Indian culture, it was a largely unorganized industry.
In the 1990s, some traditional family jewelers began modernizing their operations, and the Tata Group had entered jewelry retail with Tanishq.
It was only after 2000, however, that the first large jewelry retail chains came into existence.
Some, like Kisna and Orra, were launched by large diamond manufacturers/exporters.
Corporate giant Reliance Industries created Reliance Jewels. And, jewelers like Malabar, PNG, Alukkas, Senco, and others with a strong presence in a city or two, began developing regional or nationwide chains.
“Once the new Forevermark model is established in India, we will consider launching the brand and collections in other major markets.”— Sandrine Conseiller, De Beers Group
Though they predominantly deal in gold jewelry, these retailers also saw benefits in catering to the burgeoning demand for modern diamond jewelry.
In the 25 years since, the share of organized retail has grown from an estimated 2 percent in 2000 to about 40 percent to 50 percent of India’s jewelry market.
Conseiller said this has been a key driver of growth in diamond demand, as Indian consumers favor trusted brands.
“Our studies show that 57 percent of women would purchase diamonds from a reputable brand even if that meant paying a premium; among millennial women this figure rises to 63 percent.”
According to Pratihari, branded diamond jewelry is estimated to account for around 35-40 percent of the total market, a figure that is likely to grow as the market evolves.
A Forevermark ring. Jewelry from the De Beers Group-owned brand, which combines both international and local design influence, is popular among young and modern Indian women.
Due to a combination of these factors, De Beers’ Forevermark has resonated strongly with Indian consumers and is seen to have strong potential.
“We’re excited to continue to grow and evolve Forevermark as a finished jewelry brand, with a focus on a unique product offer that combines both international and local design influence to appeal to the modern Indian woman,” Conseiller said.
“Once the new Forevermark model is established in India, we will consider launching the brand and collections in other major markets.”
Bright Prospects
In the near term, prospects for growth seem bright.
Most large retail chains have announced expansion plans, with more than 150 new store openings expected by 2025.
One of India’s largest business houses, the Aditya Birla Group, has recently entered jewelry retail under the brand Indriya.
Its expansion plans include launching 10 large-format stores in a few months. Observers say that the initial stocking for these new stores will give a further boost to wholesale demand.
Looking ahead, Conseiller expects that demand for natural diamond jewelry in the Indian market will continue to grow by low double-digit percentages until 2030.
“India will remain the second-largest market for diamond jewelry, after the United States, until at least the 2030s,” she said.
At the InnovNXT Summit, Pratihari revealed that the company’s projections showed that diamond jewelry sales could reach $17 billion by the end of this decade; a glittering future, indeed.
