Will Marketing Save the Diamond Industry?
There is a sense of urgency to promote natural diamonds this holiday season.
With market sentiment notably weak at the start of the fourth quarter, the industry has a glaring need to raise demand for diamond jewelry at the retail level. This would stimulate trading through the rest of the distribution chain, which has experienced heavy declines.
Natural diamonds have lost market share to synthetics, while the trade also faces headwinds from the slowdown in China and US consumer caution resulting from the rise in the cost of living.
It seems the industry has intensified its marketing efforts ahead of the US holiday season. Considering the difficult state of the market, there’s a lot riding on these campaigns.
The improvement cannot be incremental. Demand needs to rise substantially to make the industry viable again after the losses experienced in the past two years. Otherwise, the trade will continue the downward path that has seen diamonds lose significant value over the past decade.
Read my full analysis published by Rapaport here.
Image: David Polak / Midjourney, via Rapaport
Comments