The annual ‘Diamond Industry Report’ focused on the Chinese market, revealing that approximately 200 million Chinese consumers are expected to enter the middle class before 2030.
The report also outlined an expected rise of household disposal income by more than one-third during the same period.
"There is no country where history has moved as fast as China,” CEO Al Cook said.
“From being a relatively small player on the world diamond stage at the end of the last century, China now represents the largest market for diamond jewellery outside the United States.”
The report included several specific opportunities for the diamond trade concerning consumer groups, geographies, and retail strategy in China. These include:
• Millenials are the generation that spends disproportionately more than any other on diamond jewellery. Retailers are encouraged to focus on design with high-quality diamonds and competitive pricing.
• The share of market value Gen Z represents almost doubled between 2020 and 2022, from five per cent to nine per cent of sales. Gen Z relies on social media, meaning retailers can maximise their opportunities for sales with ‘strong digital touchpoints’.
• ‘Affluent’ customers are more likely to purchase diamond jewellery to celebrate relationship milestones. Furthermore, 25 per cent of those surveyed who did not purchase diamond jewellery in 2022 said they couldn’t find a design they liked.
• The demographic of consumers aged between 55-65 is increasingly important, accounting for nine per cent of the total market value. In terms of preference, this demographic is inclined towards necklaces and non-bridal rings.
Cook added: "We aim to look at its development, to cut through short-term volatility, to understand evolving customer desire for jewellery and to identify opportunities for the future."
The desirability for diamonds remains strong among Chinese customers, ranking among the top three most desired luxury purchases; however, there is a gap between intent to acquire and purchases.
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