Demand for diamonds steadily increasing post-COVID-19 pandemic

With buyers showing confidence to step out into the post-COVID-19 pandemic world, diamond retailers are recording a steady increase in sales. This is being led by millennials as economic activity slowly picks up.

De Beers India, Malabar Gold & Diamonds and NAC Jewellers have witnessed good demand for diamond jewellery in January and they expect the uptrend to continue this month as well. Sachin Jain, managing director De Beers India said the company recorded a good demand for diamonds in January. “The sensitive is very positive. As the economy reopens, we are seeing a good recovery,” he said. “We are seeing demand from metros, which is a very healthy sign. We are expecting a very strong comeback for diamonds over the next six months.”

Jain pointed out that the prices of diamonds have not seen a sharp rise. “It has gone up by Rs 2,000-3,000 per carat, which is not going to dampen demand as the economy is gradually returning to a normal level.” He said classic designs in the Rs 50,000 to Rs 1 lakh price range attracts most buyers.

Ahammed MP, chairman of Malabar Gold & Diamonds, said demand will continue to be driven by the millennials and new-age women who prefer to flaunt designs that are minimalistic, innovative and wearable. “Its a progressively growing consumer segment which is influenced by emerging social media and global design trends. Jewellers are targeting that consumer segment by rolling out new designs in diamond jewellery at regular intervals,” he said.

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Industry experts have also stated that younger consumers continue to show more interest in innovative designs, particularly if backed by a well-known brand. As the emphasis on responsible and ethical production grows, especially among millennials and Gen-Z consumers, brands will have to consider transparency, authenticity and purpose as a key part of their strategy. They said that with diversity and inclusion high on the agenda, diamond jewellery that celebrates new types of union, life milestones or new forms of personal expression is likely to find an eager market.