I was very pleased to see the recently published Global Diamond Report 2020 – 21, produced by Bain & Company in cooperation with the AWDC, which shows that although the diamond industry suffered during the pandemic, 2020 was a better year than originally expected.
First of all, the report notes, 2020 ended with strong sales throughout the value chain, driven by excellent holiday jewelry sales in the US and Chinese markets. And 2021 has started out on a strong upward path and market confidence is growing.
The report also sees a long-term positive outlook for the world diamond industry. Consumers continue to desire diamonds for marriage and other life milestones, and demand is growing as the economic recovery continues.
This is great news coming from such a respected organization, and it definitely coincides with what I have observed and believe to be true.
I would like to mention a few more points that the report makes, which deserve our attention.
- The industry was able to get through the worst of the crisis, largely due to the responsible behavior of the rough producers, and we are confident that they will continue to act in the best interests of the industry.
- The crisis brought about unexpected benefits that will strengthen the industry going forward. Many players were able to reduce inventories to healthier levels. They were also able to reduce their debt significantly. We hope that these positive trends will continue into the future.
- Diamond jewelry marketing needs to evolve to address the experiences and concerns of younger consumers, who value sustainability, transparency and social welfare. It also needs to be substantially increased to effectively compete for a larger share of consumer spending.
Overall, the report is very positive and encouraging. Let us take heart from its findings and learn from its recommendations.
Stay healthy and safe,