2019 Silver lining for diamond industry
IDMA
feedback to the eighth annual
report
on the global diamond industry
“If
we are to preview our industry's future, based on the eighth annual report on
the global diamond industry – see the first item below - that was prepared and
published by the Antwerp World Diamond Centre (AWDC) and Bain & Company, we
can be reasonably optimistic” says IDMA.
IDMA
derives the related fewer takeaways from this report says, in 2018, the market
continued to be volatile and the year's success will be determined by the
industry's sales performance during this holiday season; 1: The supply of rough
diamonds will remain rather stable in the coming decade but will be chiefly
affected by the industry's financial challenges, the total make-up of the
global rough production and the continuing uncertainty over the market off take
of diamonds i.e. consumer interest in natural diamonds.
2:
In our own midstream segment, the diversification of financing sources and the
ready availability of funds will remain a major issue of concern. While the
AWDC/Bain report noted that transparent and financially healthy companies would
not be affected much in their ability to secure funding, I do think that this
is one of our most significant obstacles to growth.
3:
The trade war between the US and China, if not resolved, may have a negative
effect on the growth prospects for global demand in the short to medium term.
4: The report lists three issues that will concern the entire pipeline in the
year to come:
A: the increasing influence of digital technologies.
B: the growing presence of lab-grown diamonds.
C: the shifting preferences of younger generations
of consumers!
5:
Ultimately, marketing and consumer perception will determine the effect of
lab-grown diamonds on the natural diamond market. 6: Three scenarios exist:
Consumers could perceive lab-grown and natural diamonds as interchangeable, as
two different products, or somewhere in between.
7: Marketing could
uphold the value of natural diamonds, especially if the prices of lab-grown
diamonds continue to drop. It’s probable that consumers will view lab-grown
diamonds as fashion jewelry but not luxury goods, limiting the effect on
natural diamond demand.
Comments
Post a Comment