On October 11, 2024, the Bharat Diamond Bourse (BDB) launched its inaugural Leadership Series, titled Polishing Our Future, at the BDB Convention Hall in Mumbai. The event brought together top leaders from the global diamond and jewellery sectors to discuss challenges, opportunities, and market innovations. Sponsored by BDB, GIA, and IGI, the discussions ranged from India’s growing influence in the global market to the rise of sustainability as a driving force in consumer choices, particularly in the U.S. and the GCC’s role in the luxury jewellery industry.
India’s Growing Influence in the Global Market
Amit Pratihari, Managing Director of De Beers India, opened the event by highlighting India’s expanding presence in the global jewellery market. He pointed out that India’s jewellery sector, valued at $85 billion in 2021, is expected to reach $120 billion by 2030, driven by a rapidly growing middle class. This shift is increasing demand for high-end, personalised jewellery.
“The growth of India’s middle class is driving a shift towards premium consumption, with diamond jewellery playing a significant role,” Pratihari said. He also noted that India’s digital revolution, including the rise of e-commerce and digital payments, is reshaping consumer behaviour, particularly among younger generations.
A 2024 McKinsey report forecasts that by 2030, India’s share of global luxury jewellery sales could rival that of China. With global diamond supplies declining, India’s role in supporting the industry’s growth becomes even more important.
Sustainability Takes Center Stage in U.S. Market
David Bouffard, former Vice President of Signet and current consultant, discussed how sustainability is shaping consumer behaviour in the U.S. “Sustainability is no longer just a talking point—it’s central to consumer demand,” he stated, emphasizing the rising preference for ethically sourced diamonds.
A 2024 National Retail Federation report shows that 60% of U.S. consumers now consider sustainability when making purchasing decisions. Brands that fail to meet these expectations risk losing significant market share. Bouffard stressed that transparency in sourcing and sustainability practices is essential for companies looking to succeed in the U.S. jewellery market.
Business Lessons from Mythology
Devdutt Pattanaik, a renowned author and mythologist, offered a unique perspective by linking ancient Indian mythology to modern business strategies. He discussed the cyclical nature of prosperity and decline, advising businesses to adapt to uncertainty and change. “In mythology, we see cycles of success and failure, teaching us resilience and adaptability,” Pattanaik said.
His insights were particularly relevant as businesses, including the diamond industry, grapple with challenges such as supply chain disruptions and shifting consumer preferences in the post-pandemic era. Pattanaik encouraged leaders to focus on long-term strategies, drawing inspiration from historical cycles of change.
Global Diamond Market Faces Challenges
Paul Zimnisky, an industry analyst, provided a sobering outlook on the global diamond market. He noted a sharp decline in China’s diamond demand, once the industry’s second-largest market. This drop, attributed to economic slowdowns and changing consumer preferences, has intensified post-pandemic.
Zimnisky added that while India is expected to fill part of the gap left by China, the global supply of diamonds is dwindling. He predicts that global diamond production will continue to decline, with few new mines expected to open in the coming years. This will lead to supply constraints that could support prices but also present challenges for the industry.
The GCC: A Growing Luxury Market
Tawhid Abdullah, CEO of Jawhara Jewellery Group, discussed the rapid growth of the Gulf Cooperation Council (GCC) region, especially Saudi Arabia, which represents 65% of the Middle East’s jewellery market. He emphasized the importance of strong business ties between the GCC and India, predicting that India would be a key partner in the region’s expanding jewellery sector.
Abdullah’s comments were supported by a 2024 World Bank report projecting that the GCC’s luxury market will grow by 6% annually over the next five years. This growth is driven by strong consumer spending in the UAE and Saudi Arabia, supported by government initiatives to boost the luxury and tourism sectors.
Quiet Luxury and Changing Consumer Preferences
Ananthanarayanan Hariharan, CEO of Novel at Aditya Birla Jewels, spoke about the growing trend of “quiet luxury,” where wealthy consumers are increasingly opting for subtle, understated jewellery rather than flashy displays of wealth. Hariharan stressed that for the jewellery industry to remain relevant, it must cater to this shift in consumer preferences, focusing on personal significance and emotional connection rather than ostentation.
A Shared Vision for the Future
The Leadership Series concluded with an optimistic outlook for the future of the diamond and jewellery industries. Despite challenges, the consensus was that through collaboration, innovation, and a focus on sustainability, the industry is well-positioned for growth. As Paul Zimnisky noted, “It’s easy to be pessimistic now, but the industry remains an $80 billion global market with strong growth potential.”
India, North America, and the GCC are expected to drive future growth in the industry, with sustainability at the core of future development. The event highlighted that while the road ahead may be challenging, it is filled with opportunities.
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