A diamond is one of the most precious gemstones. Mankind has known diamonds since ancient times and used the gemstone as a decorative item for different jewelry and ornaments.
The high dispersion of light and its hardness gives diamond its characteristic of fire gemstone which makes it useful for applications in the industrial sector and in jewelry. Diamonds are certified on the basis of “four Cs” which are cut, color, clarity, and carat.
The key driver of the global diamond jewelry market is that diamonds are highly valuable. Prices of diamonds are not decided by governments and do not have any regulatory framework; hence, even during recession, diamonds are able to retain their market value. Lasting through multiple generations, diamonds carry a significant emotional value. Just as any other natural resource, with time, diamonds are becoming rare. This fact conveys the key important boosting result on value of diamonds for long period of time.
Diamonds have quality as well as artworks and also one of the very few goods that are good for investment. While consumers can wear their diamonds set into/as jewelry, simultaneously diamonds symbolize their most safe investments. Strong demand – predicted strong chance of increasing the price of diamond in the market in the forecasted period. While most other deluxe goods such as furniture, cars, furs, etc. lose their value over a period of time, in case of diamonds, this does not happen due to its unbreakable/durable nature. The major restraint for the diamond jewelery market is that diamonds are rare and expensive. However, the market is experiencing new trends such as increasing demand for branded jewelry, in both developed and developing economies. In emerging markets especially, consumers prefer branded products and services, which reduces the risk of wrong purchase. Being lab certified, consumers trust branded jewelry more than those sourced from privately owned jewelers. Another popular trend is the emerging market for men’s diamond jewelry with more men wearing bracelets, rings, studs, chains, and other forms of jewelry. Innovative designs in diamond jewelry for both men and women are available. Diamond jewelry designs are undergoing innovation, and are available in lightweight and delicate designs for daily wear. Connoisseurs are attracted by vintage jewelry and are willing to pay higher prices for such collections.
The global diamond jewelry market can be segmented based on product type, sales format, and geography. Based on product type, the market can be classified into rings, necklaces, earrings, bangles, and pendants. In terms of sales format the market can be segregated into specialty stores, department stores, discounters, online retailers and others (Catalogs and TV commercials). Based on geography, the global diamond jewelry market can be segmented into North America (Canada, Mexico, and the U.S.), Europe (Germany, France, Italy, and the U.K.), Asia Pacific (China, Japan, India, and South Korea), South America (Brazil and Argentina), and Middle East & Africa (MEA). The U.S is the major global diamond jewelry market.
From Pragati Pathrotkar – TechYouNme website