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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