According to IDEX, in 2010 the consumption of gem quality diamonds in China and India approached $2 billion for each of those countries compared to nearly $7 billion in the US, which accounted for 38% of the total wholesale diamond market. In terms of recent growth trends: in the years leading up to the most recent financial crisis between 2000 and 2007 China experienced a 17% annual growth, while India showed a healthy growth rate of 13%, compared to about 5% of annual diamond consumption growth in United States.
During the crisis, between 2007 and 2009, while diamond consumption was falling in the rest of the world, China had a 12% annual growth and continued to grow rapidly through 2010 at over 50%. Bain & Company, a leading global business consulting firm, offering solutions on issues of strategy and operations, works with over 2,700 major multinational corporations across every economic sector, including the diamond mining flotation separator and jaw crusher industry. Olya Linde, Principal of the company’s Moscow Office, gave this interview to Rough&Polished.
India’s results were a bit more moderate (although starting with a higher base before the crisis), slowing down during the crisis, but then showing a healthy recovery in 2010. In comparison, diamond consumption in the United States slowed down by -16% annually in 2007-2009 and recovered at about 8% in 2010.
Many in the diamond industry pin their sales hopes on China and India sometimes forgetting that the scale of diamond consumption in mature markets is maintained by an age-old tradition difficult to instill elsewhere in a matter of days. Do you think this can be achieved there or not?
It is true that the share of the diamond jewelry in the overall jewelry market consumption in India and China at 32% and 29% respectively is lower than that of United States and Japan (52% and 51%). However, there exists a relatively recent example of stimulating demand for diamonds through creative marketing and focused effort by the industry. The share of diamond engagement rings (among all engagement rings) in Japan was barely 6% in 1966 before the diamond industry decided to focus their efforts on that market. In short 10 years, that figure was up to nearly 60% and by 1990 it reached nearly 80%. china vibrating feeder:http://www.hx-crusher.com/vibrating_feeder.html
What we see today is that the marketing effort in China in particular is being undertaken not just by the traditional diamond players, but also by major jewelry manufacturers and retailers. Chinese couples are rapidly adopting modern Western traditions which also include white lace gown and tuxedo as wedding attire and diamond jewelry as gifts. By some estimates, already 30% of the brides in China buy a diamond engagement ring. We believe that consumption of diamonds in China and India will continue to grow driven by urbanization and growth of the middle class.
Traditional markets such as US, Europe and Japan are the largest consumers of diamonds and likely will remain such for the next 10 years driven by GDP growth. In addition to GDP, big factors driving the demand for diamonds in the emerging economies are urbanization and growth of middle class. With continued economic growth and demographic shift, we expect the growth rate for diamonds in India and China to continue outperforming that of the traditional economies in the next 10 years. According to the recent statement by major producers, they see a strong demand coming from Asian markets so far in 2012.
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