Diamond Sales Fueled by Emotion:
by Andie Weinman
The concern of travel and discretionary dollars is a concern for all of us in the retail jewelry industry but, the Natural Diamond Council (NDC) does not see it that way. They say the sale of diamonds will continue to increase.
Diamonds are seeing surging popularity that is emerging from lock downs being lifted and the rollout of vaccines.
I have been reading that larger retailers are repeating strong diamond sales with purchase prices increasing by double digits! Also in Departures Magazine, Sotheby’s (who, before the pandemic, struggled to sell white diamonds) sold a 100+ carat, flawless diamond for $12 million...but wait for it…it was fully paid for by cryptocurrency!
All in all, the bottom line is, demand for diamonds, at least among shoppers of a certain affluence, is reaching a new high.
I also read that David Kellie, NDC CEO, says much of this new demand is a result of emotions during the crisis of the last 18 months.
I say, “ALL areas of the Diamond Jewelry Business seem to be very Strong!”
Researchers have looked into why diamonds are so strong and whether this is a short-term reaction.
They found that;
There is a heightened sense of emotional connection between people and diamonds that is different than how we feel about luxury goods. It is based on long term connections.
People see diamonds as an investment of long term rather than short term, like Luxury Label clothing.
I feel the momentum will continue (another reason for a show in Sept/Oct). The NDC states they will have a new campaign that is celebratory about the value of diamonds. They feel that people will continue to be in celebration mode.
Last year was about relationships, and we know it will always be that way for us. Now for everyone, it's more in the context of travel, excitement and fun. Now is the time to come out, love life, and celebrate our relationships and what we have all been through together.
I think this way of thinking will help the jewelry/diamond industry immensely. Our industry, as we all have witnessed, is all about a strong personal connection. It is backed by brick and mortar stores and traditional marketing with strong independent retailers. Your relationships with clients are key.
The NDC Is looking to push 2 new initiatives over the next six months. They are going to focus on promoting recycled diamonds and a campaign for emerging designers.
Their thinking is; Companies sell lab-grown and tout they are more Eco-friendly than mined stones.
The NDC has strongly pushed back. We saw their push back with Pandora, who announced they will only be using lab grown. NDC is stating that mined diamonds produce important economic benefits for the areas in which they are found and hopes recycled diamonds could be the most sustainable option.
David Kellie from the NDC stated, “Whether it’s an individual stone from a collection that has to be remodeled or a diamond that’s been passed down — people want to hold onto the value and sentiment of the stones. For us this is a strength that is unique to diamonds.”
So, as you can see, all aspects of our industry are looking for their niche.
Kellie added, “Recycled diamonds are more about people wanting to keep their stones and pass them through generations. So, it’s more about creating a new piece of jewelry from a family stone than it is about acquiring diamonds or jewelry on the secondhand market.” (David Kellie, CEO of NDC)
All in all, the NDC is feeling quite confident that diamond sales will continue to grow, at least throughout the next 18 months.
Let’s continue the conversation in Tampa, where we can all...
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See you there!