Article in the Economic Times dated September 28, 2004

It’s India dazzling on the global jewellery market.

The country, which is currently the world’s largest consumer of gold, saw diamond consumption grow at a blistering 24% last year, recording the fastest growth globally.

Compare that with US, the world’s biggest diamond consumer, which grew by only 6.1% while Japan, the No. 2 global consumer grew by 4.9%.

The fact that the Indian market has several niche markets has not gone unnoticed by DTC. “India has the maximum number of flagship brands.

Even in markets like US or Japan, single brands have got mention but we have four brands here - Nakshatra, Asmi, Arisia and Sangini,” Ms Gidwani said.

However, marketing analysts say agencies like DTC have been pumping their adspend, thanks to the fact that marketing spends on diamonds are typically very low (often in the range of 1-2%) against 8-10% for other lifestyle products.

The growth of the Indian diamond market has attracted even the site-holders. There are as many as 35 siteholders (a siteholder is entitled to purchase roughs directly from DeBeers). Players like InterGold have jumped onto the diamond retailing bandwagon.

“Diamonds have significant aspirational value. Over the next few years we believe the growth would also come from smaller towns,” said Vijay Jain, chief executive of Orra, part of the Intergold group.


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