Diamonds Are Forever. India Records All Time Growing Sales In Diamonds
Posted in News on August 22, 2012 by Elite Diams
Times Of India Article
BY APARNA RAMALINGAM
Published: August 22, 2012
CHENNAI: India is fast emerging as a diamond market behind America. "By 2020, China and India would account for one-third of the total diamond market worldwide," Stephen Lussiere, global chief executive officer, ForeverMark said recently in India.
The Indian jewellery market is pegged at Rs 1.40 lakh crore with diamond and gemstones accounting for only about one-fourth of the total pie. The country continues to remain the world's largest consumer of gold, accounting for about 20% of the world's demand. But jewellers and diamantaires say that the diamond jewellery segment has been growing at a CAGR (compounded annual growth rate) of 20% in the last five years.
"There has been a shift from gold buying to diamond buying in the last few years," Sachin Jain, managing director, ForeverMark Diamonds India said. This is despite diamond prices going up by almost 25% in India in the past 18 months. "There is an aspirational element attached to diamonds and with rising disposable incomes, people are switching over to buying diamond jewellery," Sohail Kothari, director, Fine Jewellery, a leading diamond export company said.
Diamond prices have risen by 25% in the last 18 months while gold prices (10 gram) during the same period have risen by 50% to touch Rs 29,795 as compared to Rs 19,874 during end of January 2011. Another factor fuelling the purchase of these stones is emergence of categories such as everyday diamond wear (rings, pendants and earrings). "Young customers are on the lookout for contemporary, trendy and everyday wear and diamonds fit the bill," Kalaivani Sadagopan, senior vice president, Caratlane said. The online jewellery retailer has diamond offerings upwards of Rs 5,000.
Within diamonds itself, solitaires are emerging as a favourite choice. "They go well with western outfits and young girls consider such jewellery as a good investment," Sadagopan said. And while in the United States, no engagement or wedding is complete without a diamond engagements rings and wedding bands, the situation is changing in India too with diamond rings being most sought after for engagements. "Today, diamonds are preferred gifting options to loved ones especially for milestone dates such as first and 10th wedding anniversaries," Sadagopan said. "While gold purchases are driven by more traditional events such as Akshaya Tritiya and Dhanteras, diamonds buying is driven by birthdays, anniversaries and Valentine's Day," Kothari added.
[Times Of India]