The DMCC’s recently released “thought leadership report”, which, the organisation says, provides a detailed analysis of the diamond industry and the transformative impact of new technology on supply chains, based on what experts say, concludes that “The industry’s ability to reposition itself in line with shifting consumer preference is essential to securing future growth”.

The report, which is based on discussions at the 2019 Dubai Diamond Conference, notes that the global diamond industry is “at a major inflection point”.

“Steadily decreasing prices, a decline in profitability and restricted access to finance has placed the industry under significant pressure,” the report states. “The rise of laboratory-grown diamonds and technological disruption in the form of automated manufacturing and grading, raise challenges for the road ahead.”

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC commented: “The diamond industry is facing significant pressure from a variety of sources, and has been in a period of stagnation for nearly a decade. Consumer preference is shifting, the supply and demand for rough diamonds is imbalanced, and access to finance is proving increasingly difficult for many traders. Furthermore, advanced technology and automation have ushered in a new wave of disruptive change that has challenged traditional business models. The combination of these factors has created a sense of confusion and uncertainty in the market however, there is cause for optimism.”  

He added: “DMCC published this report to provide direction as it believes the long-term economic outlook for diamonds is positive. Our research highlights that in order to secure sector growth, the industry must work together, embrace innovation, harness technology and focus on the value proposition to customers. Looking ahead, DMCC will continue to work with partners to drive the diamond sector in Dubai, and positively impact the international diamond trade as a whole.”

The takeaways from the report, the four steps that it identifies as essential for the international diamond industry to take collectively, in order to secure its future, are:

• Develop a new narrative
• Refocus on branding
• Differentiate the product 
• Surpass competition in retail

The report is available in Arabic and English, and can be downloaded online at: https://www.dmcc.ae/thought-leadership-diamonds