Saturday, July 13, 2024

The World of Diamond Retail Demographics

The leading diamond producer, De Beers, released an insight report revealing latest trends it observed in the diamond market. One striking observation from the report talked to the emergence and rapid growth of female self purchases which is considered favorable in potentially spurring further growth for the industry.

“The success of marketing campaigns which are relevant and appropriate to women worldwide ensures the sustainability of diamond mining and beneficiation in Botswana,” says De Beers.

This simply means that Botswana will continue to feed the appetite of key diamond markets, being the US, China, India and Japan. Inciting demand in such markets, which in this case is anticipated to be stimulated by female self purchases, serves to keep production of diamond stones in Botswana mines at profitable levels. In other words, diamond industry trends serve to give a general direction of the market with the expectation that players like manufacturers and retailers will tap on the opportunities identified. The significance of the trends is normally seen when industry players become responsive to them, which though presently remains to be seen. Such response by the industry players, by extension, stirs up production in diamond producing countries such as Botswana. The report cites self purchase by women to be at record levels citing that modern relationship dynamics and the celebration of women for their personal achievements, alongside relationship milestones, are creating new opportunities for gifting. “Each of these trends presents new consumer demand opportunities for diamond jewellery, which is good news for diamond producing countries, such as Botswana,”

Regarding the reaction by players to the trends the Group says “Retailers are starting to respond to these trends, but more can be done to maximise the opportunities into the future. The Diamond Insight Report acts as a call-to-action for the industry to ensure diamond jewellery products and buying experiences match the expectations of today’s female consumers.”

The contribution of diamonds to Botswana’s economy remains unparalleled with the mining sector, through diamonds, making up the largest share of the country’s output. At the recent Electra Mining Botswana trade show local Economist Keith Jefferies expressed that though dominating diamonds have on the contrary being making a diminishing fiscal contribution, over the past decade. He attributed this to lower diamond output. “The diamond mining industry historically the largest economic sector contributing around 30% of GDP has reached maturity; diamond production in terms of carats which peaked in the mid-2000s has since declined,” Jefferies cited this from a paper titled ‘The Role of Mining in Botswana’s Past and Future Economic Development.’ It is for this reason that the sprouting trends could be seen as an opportunity to rejuvenate the diamond sector so that the country maintains its benefit.

As De Beers puts it, “More than 90 per cent of global diamond purchases are either by, or for, women, so the evolution of women in society and their growing economic and social empowerment is having, and will continue to have, a profound impact on diamond jewellery sales around the world.” Depending on the industry’s response Botswana could stand to gain when its diamond output is met by strong demand from key markets.


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