The CEO of De Beers Group has shared a range of key insights for the diamond trade ahead of the 2020 holiday season, as well as in the context of Covid-19.
The insights are based on the findings of comprehensive consumer research taken across the US, China and India, with results recently published in the company’s Diamond Insight Global Sentiment Report.
CEO Bruce Cleaver said the insights reveal that consumer desire for diamonds remains strong across the markets, and that sentiment was improving as consumers adjusted to the ‘new normal’.
The research looked at a range of consumer indicators, including how they were feeling in the current environment, gifting intentions for the holiday season and preferences for engaging with brands and retailers over the coming months.
It found that the intention to purchase diamond jewellery during the festive season was high across all markets. In the US, for example, almost 60% of men surveyed said they intend to purchase diamond jewellery for a significant other, while nearly a third of women intend to purchase for themselves.
Under-35 professionals “drove the high levels of intent and expectation” to acquire diamond jewellery during the key festive season, while consumers in all three markets felt that “how special the recipient feels” was the most important factor in gifting this year.
Over 80% of those intending to purchase diamond jewellery during the upcoming holiday season had either self-purchased or gifted diamond jewellery in the past two years, highlighting the “importance of connecting with past customers”.
De Beers also found that consumer interest gravitated towards classic pieces, in particular, simple solitaires.
A subset of consumers, often those with higher household incomes, were “more interested in experimenting beyond classic designs”, and showed a greater interest in diamond jewellery brands.
Only 8% of consumers in the US and 4% in China felt their current situation was deteriorating, but the majority of consumers surveyed said they want and expect a dialogue with diamonds this season, including those who “remained uncertain about the current situation”.
Cleaver said: “This research, undertaken in three of the largest consumer markets for diamonds, highlights a number of important insights for diamond jewellery retailers as we enter the key end-of-year selling season.
“While it clearly demonstrates that consumer desire for diamonds is as strong as it has ever been, holiday communications to consumers should focus on the power of diamonds, as inherently beautiful miracles of nature, to convey emotional meaning, gratitude for loved ones and expressions of self-reward – all of which bring joy and positivity in a time when it is desperately needed.”
He added: “While the external environment remains uncertain, in this unprecedented moment in time, we have the unusual opportunity to build even more lasting and meaningful connections with consumers at the culmination of a year when we’ve all been reminded that we cannot take our precious relationships, or even human connections, for granted.”