De Beers Survey Shows All Is Not Lost In Diamonds
Pauline Dikuelo | Monday August 17, 2020 14:55
A consumer research by diamond major, De Beers had revealed that consumer desire for diamonds has also remained strong in the United States of America (US), China and India, which are the three key markets for diamonds.
When sharing insights on the diamond trade ahead of the upcoming holiday gifting season, De Beers Group chief executive officer, Bruce Cleaver said that sentiment was improving as consumers adjusted to the ‘new normal’.
“This research, undertaken in three of the largest consumer markets for diamonds, highlights a number of important insights for diamond jewellery retailers as we enter the key end-of-year selling season,” Cleaver said of the study.
“While it clearly demonstrates that consumer desire for diamonds is as strong as it has ever been, holiday communications to consumers should focus on the power of diamonds, as inherently beautiful miracles of nature, to convey emotional meaning, gratitude for loved ones and expressions of self-reward.”
The survey targetted 2, 800 men and women aged 20 to 65 years of age, with household incomes of at least $75, 000 in the US and a similar demographic in China and India.
It looked at a range of consumer indicators, including how they were feeling in the current environment, gifting intentions for the holiday season and preferences for engaging with brands and retailers over the coming months.
“While the external environment remains uncertain, in this unprecedented moment in time, we have the unusual opportunity to build even more lasting and meaningful connections with consumers at the culmination of a year when we’ve all been reminded that we cannot take our precious relationships, or even human connections, for granted,” Cleaver added.
He revealed that over 80% of those intending to purchase diamond jewellery during the 2020 holiday season had either self-purchased or gifted diamond jewellery in the past two years, highlighting the importance of connecting with past customers.
“In every market, consumer interest gravitated towards classic pieces, with simple solitaires the main preference. However, a subset of consumers – largely those who felt their lives were returning to normal and with higher household incomes – were more interested in experimenting beyond classic designs, showing a greater interest in diamond jewellery brands,” he said.
Cleaver noted that Chinese consumer sentiment was ahead of other key markets, with 85% feeling settled into a new and familiar routine and 24% feeling fully reconnected to their life and previous routine.
In the US and India, confidence lagged China but was improving, with the majority of respondents in these markets believing they were moving towards settling into a new routine.
“Only eight percent of consumers in the US and four percent in China felt their situation was deteriorating. The majority of consumers surveyed said they want and expect a dialogue with diamonds this season, even those who remained uncertain about the current situation,” he added.
Consumers in all three markets felt that ‘how special the recipient feels’ was the most important factor in gifting this year (above ‘how useful/practical it is’). For those planning to purchase diamond jewellery this holiday, ‘how beautiful it is’ was another important factor.’