The findings of ALROSA’s study of the global luxury and jewellery in Q3 2018, released yesterday, show that worldwide sales of diamond jewellery have increased in the period.

“Despite the external economic pressure associated with the depreciation of national currencies against the US dollar, the demand for diamond jewellery remains stable,” ALROSA reported. “Overall, the diamond jewellery market grew in Q3 2018 by 4% y/y.”

North America, which remains the largest diamond jewellery market, witnessed a rise in diamond jewellery sales of 4% in Q3 2018, as compared to the same period of last year.

“According to key retailers, stable growth was driven by increased demand from the local population,” ALROSA remarked.

In the Asia Pacific (including South East Asia and India), the market research discerned a slowdown in sales growth to 3% in Q3, which the Company said, “was tied to the overall external economic environment”.

“China remains the key sales driver in the region thanks to the continued expansion of national retailers in the country’s mainland market,” the Company noted. “Many global retailers in China, in their turn, are adjusting their pricing strategies to increasing customs duties and depreciating local currency.”

The study also found that changes are taking place in the Indian market, where major players are still struggling to restore their reputation and regain buyers' confidence in the authenticity of diamond jewellery.

“There is an ongoing market redistribution, with large highly organised retail networks gradually taking market share from smaller ones and increasing their presence through expansion and franchising,” ALROSA stated. “However, the bulk of the market is still dominated by small retailers, who are now encountering difficulties, which negatively affects the overall market performance. The decline in sales in the country is also caused by the weakening of the national currency.”

Other countries registered an aggregate increase in diamond jewellery sales of 2%, driven primarily by domestic demand.

“The main driver of the global diamond jewellery market is the US, which has seen stable growth rates throughout the year,” commented Dmitry Klimenko, head of the analytics department at ALROSA's Strategic Projects and Analytics Center. “This boosts market confidence ahead of the Christmas sales season. In Asia, consumer demand shows less steady growth because of the weakening of national currencies against the US dollar.”