Industry leaders recently gathered in Mumbai to address the pressing issues confronting the diamond market, exacerbated by the COVID-19 pandemic.
During the pandemic, Chinese consumers shifted their investment preferences from diamonds to gold, which they perceived as a safer and more liquid asset. This shift led to a noticeable drop in diamond demand. To counter this trend, the industry is launching a significant marketing campaign in China. Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC) of India, announced that the campaign, in collaboration with Chow Tai Fook and De Beers, will commence following a final meeting at the Hong Kong Jewellery Show in September. The initiative aims to rebuild confidence in natural diamonds among Chinese buyers.
Currently, global retail demand for diamonds is at its lowest point in 15 years. Although the supply of rough diamonds remains consistent, demand has plateaued. In response, industry leaders are exploring new strategies to stimulate sales. The partnership with De Beers and Chow Tai Fook is a key element of this effort to rejuvenate the market.
Beyond China, a similar campaign is planned for India, where diamond demand has shown positive growth over the past year. This initiative aims to bolster domestic demand while the industry works on revitalizing its export markets.
