The natural diamond industry is intensifying its marketing efforts in response to a notable decline in consumer demand, which has been exacerbated by the rise of synthetic diamonds and a slowing economy in key markets like China and the U.S. As the industry enters the crucial holiday season, stakeholders are working urgently to boost retail sales and reignite interest in natural diamonds.
De Beers and the Natural Diamond Council (NDC) have launched significant campaigns to promote natural diamonds, emphasizing their "Real. Rare. Responsible" attributes. De Beers, for example, is collaborating with Signet Jewelers, the largest jewelry retailer in the U.S., to train 20,000 sales associates on the unique values of natural diamonds. The goal is to reverse the trend where synthetic diamonds have become entrenched in the consumer mindset, partly due to their affordability and higher profit margins for jewelers.
The NDC's "Real. Rare. Responsible" campaign, set in Canada’s Northwest Territories, aims to highlight the ethical and sustainable aspects of natural diamonds. The campaign has partnered with several well-known jewelers, including Ben Bridge Jeweler, Sissy’s Log Cabin, and Riddle's Jewelry, among others, in an effort to create a unified message that resonates at the point of sale.
The midstream segment of the diamond trade—consisting of manufacturers, dealers, and traders—is under significant pressure. The combination of declining demand and the accumulation of polished inventory has led to reduced rough purchases by manufacturers, particularly in India. Rough imports to India dropped 14% year-over-year from January to August, while polished exports fell by 23% in dollar terms during the same period. This highlights a broader issue: the industry’s current woes stem more from falling demand rather than supply issues.
While the natural diamond trade remains hopeful for an improvement in demand during the holiday season, there is a consensus that these marketing efforts must be sustained beyond just a seasonal boost. De Beers' partnership with major jewelers, including Chow Tai Fook in China and Tanishq in India, underscores a broader strategy to target global markets and ensure that natural diamonds remain the premium choice among consumers.
Economic conditions, particularly in the U.S., are adding complexity to the industry’s efforts to drive demand. The University of Michigan's Index of Consumer Sentiment rose slightly, indicating improved consumer outlooks as inflation eases. Retail projections are similarly cautious yet optimistic, with Deloitte forecasting a 2.3% to 3.3% growth in holiday retail sales, driven by stronger e-commerce growth.
For the natural diamond industry, the next few months will serve as a critical test of whether renewed marketing and retail partnerships can effectively elevate demand. The goal is not merely to boost short-term sales but to foster a lasting connection with consumers that helps stabilize the industry. To achieve this, the emphasis on natural diamonds must extend beyond the holiday season, requiring ongoing investments in education, retail partnerships, and consumer engagement.