Published on : Sep 30, 2015
The diamond company De Beers is hoping that the value of sales of the polished jewel may rise in China this year. The rise is expected to be only one-tenth of the surge in 2011, as the economy that had so far bolstered global luxury brands is heading for its weakest in 25 years.
De Beers, which is the largest diamond producer in the world expects that by 2015 the sales of polished diamonds in China is expected to rise by 3% -5%. This was stated by the head of Forevermark brand, in an interview recently. Last year the sales of the polished jewel grew by 5% in China, which was a 29% decline from the sales four years ago and 33% decline from the sales in 2010.
De Beers, which is owned by Angler American, joins Prada, LVMH, some of the luxury European brands to acclimatize to the subdued economy in China. The head of the Forevermark brand commented that one strategy to deal with this is to rely on high-demand niches.
In China, among the young consumers, the bridal business and gifting business remains the main growth area, commented the executive who is currently at a jewellery and gem fair at the launch of De Beer’s yearly industry report.
The Forevermark executive further played down on the consequences that would arise due to economic slowdown in China on De Beers. The economy would have some impact, but not dramatic, the executive commented.
The Forevermark label was successful in leveraging Chinese Valentine’s Day promotions, which led to attain August like-for-like store sales for a record in China. The Chinese Valentine’s Day, which depends on the Lunar calendar fell on August 20 in 2015, as compared to August 2 in 2014.
The consumers in the age group 18-29 are the mainly driving the bridal and gifting sector in China, because of which sales of the Forevermark diamond brand are on track and have exceeded last year’s sales figures