28 December 2018
Robust demand from the US market fuelled growth in global diamond jewellery sales in the third quarter of 2018, results of a global luxury and jewellery market research by diamond miner Alrosa showed.
Dmitry Klimenko, head of the analytics department at Alrosa’s Strategic Projects and Analytics Center, said, “The main driver of global diamond jewellery sales was the US, which has seen stable growth rates throughout the year. This boosted market confidence ahead of the Christmas sales season. In Asia, consumer demand showed less steady growth because of the weakening of local currencies against the US dollar.”
North America, which represents the largest diamond jewellery market, recorded a 4 percent year-on-year increase in sales during the period in review. According to retailers, stable growth was driven by improved demand from the local market.
Asia Pacific, which includes Southeast Asia and India, saw lacklustre sales largely due to a challenging economic environment. China remains the key sales driver in the region, thanks to retailers’ expanding businesses.
Changes are also taking place in the Indian market where major players struggle to regain buyers’ confidence in the diamond trade. “There is an ongoing market redistribution, with large, highly organised retail networks gradually taking market share from smaller ones and increasing their presence through expansion and franchising,” the study revealed. The bulk of the market, however, is still dominated by small retailers, who continue to encounter difficulties. A weakened Indian rupee also put a dent on the jewellery business.
Despite external economic pressure arising from currency depreciations versus the US dollar, demand for diamond jewellery remains stable, remarked Alrosa.