ALROSA reported that its global luxury and jewelry market research for the third quarter of 2018 revealed that despite the external economic pressure associated with the depreciation of various national currencies against the US dollar, the demand for diamond jewellery remains stable in markets worldwide. Overall, the diamond jewellery market grew by four percent in the quarter in a year-on-year comparison.
Sales in North America, the largest diamond jewellery market, also showed a four percent sales increase compared to the same period last year. According to key retailers, stable growth was driven by increased domestic demand.
In the Asia Pacific region (ALROSA’s classification includes Southeast Asia and India), a slowdown in sales growth to 3 percent was tied to the overall external economic environment.
China remains the key sales driver in the region, thanks to the continued expansion of national retailers in the country's mainland market. Many global retailers in China, in their turn, are adjusting their pricing strategies to increasing customs duties and depreciating local currency.
Changes are also taking place in the Indian market, where major players are still struggling to restore their reputation and regain buyers' confidence in the authenticity of diamond jewellery, the report revealed. There is an ongoing market redistribution, with large highly organised retail networks gradually taking market share from smaller ones and increasing their presence through expansion and franchising.
The report notes, however, that the bulk of the market is still dominated by small retailers, who are now encountering difficulties, which negatively affects the overall market performance. The decline in sales in the country is also caused by the weakening of the national currency.
In other countries, sales were driven primarily by domestic demand, showing an aggregate growth of two percent.
"The main driver of the global diamond jewellery market is the US, which has seen stable growth rates throughout the year. This boosts market confidence ahead of the Christmas sales season. In Asia, consumer demand shows less steady growth because of the weakening of national currencies against the US dollar," said Dmitry Klimenko, head of the analytics department at ALROSA's Strategic Projects and Analytics Center.