Trends that to shape diamond industry!
In
a short run diamond industry to affect by 3 trends!
The
Global Diamond Industry 2018, A resilient industry shines through, report said
about Diamond jewelry retail, Key industry trends. Three trends have the
highest potential to affect the diamond industry in the near term, 1: advancements
in digital technologies, 2: the development of lab-grown diamonds and 3: generational
shifts in consumer preferences.
Among
other benefits, digital technologies are aiding transparency and efficiency
efforts across all segments of the value chain. For example, in 2017 and early
2018, blockchain projects were launched to help consumers confidently identify
the origin of their diamonds. Mining companies are using predictive
maintenance, real-time controls and artificial intelligence to mitigate rising
operating costs.
Cutting
and polishing players are pursuing advanced solutions in digital mapping,
modeling and manufacturing to shorten production cycles and ultimately move
toward fully automated processes to manufacture polished diamonds. Consumer
behavior is also changing as technology matures; social media, for example, is
enabling and influencing new direct-to-consumer and online sales models.
Two
important events occurred in 2018 regarding the lab-grown diamond market. In
July, the US Federal Trade Commission amended its Jewelry Guides, clarifying “a
diamond is a diamond” regardless of its origin. In September, De Beers Group
launched a lab-grown fashion jewelery retailer called Lightbox Jewelery that
introduced a new pricing paradigm.
Lightbox
uses a linear pricing model, reflecting the linear cost of production, whereby
all lab-grown stones cost $800 per carat, regardless of size. Lightbox also
does not provide grading reports for its products. As the lab-grown industry
continues to evolve and lab-grown diamond prices decline, players along the
entire natural diamond value chain will need to determine how to respond and
how to position their products with consumers.
While
much attention has been paid to millennial buyers, their successors in
Generation Z have been gaining buying power, forcing the industry to rethink
marketing and sales strategies. Self-purchase sales and social media shopping
are expected to increase, attracting younger generations of diamond buyers with
distinct preferences.
The report was
commissioned by AWDC and prepared by Bain & Company and AWDC. It is based
on secondary market research, analysis of financial information available or
provided to Bain & Company and AWDC, and a range of interviews with
customers, competitors and industry experts.
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