Diamond Consumers

Diamond Consumers

Potential New Diamond Consumers are emerging from post third world countries.  India may be second to China as the nation with the largest population.  However, it is the largest diamond manufacturing country. China may not be the biggest, but it is the second-largest diamond consumption market in the world.  The interaction of these two emerging economies in the diamond industry is, needless to say, remarkable ushering potential new diamond consumers.

Diamond Consumers and the Jewelry Industry

New jewelry and diamond consumers in China’s economic and financial centers make quite a lot of impact for the company Chow Tai Fook. The newly publicly-traded company (in 2011) made it to the 17^th spot in the list of “Most Sought-After Luxury Brands” on the Mainland’s “World Luxury Index China 2013”.  Overtaking Cartier and Swarovski. The report was by Digital Luxury Group, a New York market research firm. The report was released by Digital Luxury Group, a New York-based market research firm. Tai Fook’s 1^st quarter of 2013 marked 63% growth, with 45% sales increase in Mainland and 85% increase in Hong Kong and Macau. A company spokesman said the reason is the surge in demand for gold after prices of bullion declined in April.  Kent Wong, managing director of  Chow Tai Fook Jewelry, further notes, “we saw signs of recovery in the mass luxury jewelry market in Hong Kong, while in the Mainland, the continued economic growth and emergence of a fast-growing middle-class and high-net-worth population is favorable to the jewelry market in the medium to long run.”

China and New Diamond Consumers

However, 2013 has seen some changes in China’s position for growth.  Sheng Laiyun, NBS spokesman, this is a design for economic restructuring and rebalancing for a sustainable growth in the future. Meanwhile, in India, the slumping Rupee is causing distress in the domestic diamond industry.  Traders default on payments because of the exchange rate soaring too high. In an effort to enhance the domestic diamond industry, the government added certain stones manufactured domestically and small-size cut and polished diamonds ranging from .10 to .25 carats to the exemption from duty taxes which previously included only .25 carats and higher. This additional exemption would help traders satisfy the needs of international clients.  Especially those in the clock and watch industry who demand and use a large volume of small certified diamonds. Vipul Shah, chairman of the Gem and Jewelry Export Promotion Council (GJEPC) believes that they are doing a great job in connecting the Indian gems and jewelry industry to various countries across the globe but more effort needs to be given to unexplored countries like Germany and remote cities and towns within China. “There is a lot of opportunity in smaller cities and towns in countries like China.”

Diamond Consumers and Indian Manufacturers

In fact, many Indian manufacturers specialize in cutting triple EX GIA-certified round diamonds to cater to the Chinese market.  Likewise, others produce melees for sale to the jewelry manufacturers in China. Also, many Indian diamond merchants, especially those who live in Shanghai and work in SDE (Shanghai Diamond Exchange) can speak some Chinese.  Additionally, they use local communication tools such as QQ and WeChat.  On the other end, Chinese jewelers and dealers are taking the initiative and sending an increasing number of buyers to Mumbai and Surat to source polished diamonds firsthand, either certified goods or parcel goods. Most go on short buying trips or visit the India International Jewelry Shows (IIJS).  While others position themselves as long-term resident buyers. http://www.bloomberg.com/news/2014-02-14/de-beers-sees-diamond-demand-growing-4-5-on-u-s-china.html http://www.reuters.com/article/2013/09/16/us-china-diamonds-idUSBRE98F0YU20130916 http://www.diamonds.net/Magazine/Article.aspx?ArticleID=34392&RDRIssueID=75 Engagement Rings