{"id":17045,"date":"2022-09-13T16:18:11","date_gmt":"2022-09-13T10:48:11","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=17045"},"modified":"2022-09-13T17:49:50","modified_gmt":"2022-09-13T12:19:50","slug":"indias-younger-generations-could-be-a-boon-for-global-diamond-demand","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/indias-younger-generations-could-be-a-boon-for-global-diamond-demand\/","title":{"rendered":"India\u2019s Younger Generations Could Be A Boon For Global Diamond Demand"},"content":{"rendered":"\n

Diamond analyst Paul Zimnisky<\/strong> predicts that diamonds have a bright future in the robust Indian consumer market.<\/em><\/h4>\n\n\n\n

During a recent investor event, India\u2019s Titan said it is aiming to grow its \u201cflagship jewellery business\u201d by 2.5-times over the next five years.<\/p>\n\n\n\n

For context, the Indian \u201clifestyle\u201d conglomerate generated \u20b927,456 crores ($3.5 billion) in sales last year \u2013 jewellery represented 88% of that, followed by watches at 9% and eyewear plus perfume and cosmetics at 3%.<\/p>\n\n\n\n

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Paul Zimnisky<\/figcaption><\/figure><\/div>\n\n\n\n

Plans include doubling the number of jewellery stores to ~1,200 by early 2025. For example, management plans to grow Mia, the company\u2019s fastest growing mid-market banner, to 550 stores, from 275 currently. However, the expansion strategy also includes the company\u2019s other banners such as Tanishq, CaratLane and Zoya.<\/p>\n\n\n\n

At the event, management said that it sees \u201chuge headroom in a geographically fragmented market,\u201d as the company currently holds just a 6% share of the estimated $50+ billion Indian jewellery market.<\/p>\n\n\n\n

While the growth plan primarily targets domestic expansion \u201cacross 300 cities,\u201d management also said that it sees international potential, specifically in North America and West Asia \u2013 noting that \u201c(there is an) affinity for Indian tradition and culture\u2026 (and it\u2019s an) under-served category.\u201d<\/p>\n\n\n\n

India, and its population of 1.4 billion people, currently represents 15-20% of global jewellery demand, excluding bullion, and 5-10% of global diamond jewellery demand specifically, according to Paul Zimnisky estimates.<\/p>\n\n\n\n

Notably, diamonds are expected to play larger a role is India\u2019s consumer market going forward. Zimnisky estimates that at current growth rates, India and China combined could outpace the US in terms of global diamond jewellery sales by next decade \u2013 including both natural and man-made stones.<\/p>\n\n\n\n

At present, the US and its population of 330 million represents about 50% of global diamond jewellery sales; China and its 1.4 billion people is second at just under 20% (See more: <\/em>\u201cGreater China Jewellers\u2019 Rapid Expansion Accelerates\u201d<\/em><\/a>)<\/em>.<\/p>\n\n\n\n

Historically gold has represented the bulk of jewellery sales in India as Shashikanth Dalichand Shah, of India\u2019s Lab Grown Diamond & Jewellery Promotion Council, recently noted to Business Insider India<\/em>: \u201cevery Indian woman, living in a hut or a bungalow, owns at least 1 gram (of gold).\u201d<\/p>\n\n\n\n

Whereas Paul Zimnisky estimates that only a single-digit percentage of Indians own a diamond.<\/p>\n\n\n\n

However, in August, Ghanshyam Dholakia of Hari Krishna, one of the world\u2019s largest diamond and jewellery midstream companies, told industry website Rough & Polished that \u201cMillennials (in India) now prefer diamond jewellery over gold.\u201d<\/p>\n\n\n\n

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Diamond necklace by Forevermark<\/figcaption><\/figure><\/div>\n\n\n\n

Accordingly, De Beers said that in 2021, the company\u2019s end-consumer diamond sales in India were up 15% relative to 2019, the pre-pandemic proxy \u2013 marking a new record for the company. De Beers representatives have said that they believe double-digit growth in India is sustainable well into the future \u2013 which would likely healthily outpace the larger (global) industry, according to Paul Zimnisky forecasts.<\/p>\n\n\n\n

Within the last year, De Beers\u2019 Sachin Jain said, \u201c(in India) people want to invest in luxurious products but ones that hold value\u2026 (and we see great demand from the younger generation as they prefer jewellery to complement their personality and define their individual style statement\u2026 besides this, we see demand for minimalistic and everyday wear diamonds as the sentiment has now shifted towards wearing diamonds for any occasion.\u201d<\/p>\n\n\n\n

\n\n\n\n

Paul Zimnisky, CFA is an independent diamond industry analyst and consultant based in the New York metro area. For regular in-depth analysis of the diamond industry please consider subscribing to his <\/em>State of the Diamond Market<\/em><\/a>, a leading monthly industry report; an index of previous editions can be found <\/em>here<\/em><\/a>. Also, listen to the <\/em>Paul Zimnisky Diamond Analytics Podcast<\/em><\/a> on iTunes or Spotify. Paul is a graduate of the University of Maryland’s Robert H. Smith School of Business with a B.S. in finance and he is a CFA charterholder. He can be reached at <\/em>paul@paulzimnisky.com<\/em><\/a> and followed on Twitter <\/em>@paulzimnisky<\/em><\/a>.<\/em><\/p>\n\n\n\n

Disclosure: At the time of writing Paul Zimnisky held a long position in Lucara Diamond Corp, Star Diamond Corp, North Arrow Minerals Inc, Brilliant Earth Group and Barrick Gold Corp. Please read full disclosure at <\/em>www.paulzimnisky.com<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Diamond analyst Paul Zimnisky predicts that diamonds have a bright future in the robust Indian consumer market. During a recent investor event, India\u2019s Titan said it is aiming to grow its \u201cflagship jewellery business\u201d by 2.5-times over the next five years. For context, the Indian \u201clifestyle\u201d conglomerate generated \u20b927,456 crores ($3.5 billion) in sales last…<\/p>\n","protected":false},"author":7,"featured_media":17057,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107,79],"tags":[],"thb-sponsors":[],"class_list":["post-17045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","category-viewpoint"],"acf":[],"yoast_head":"\nIndia\u2019s Younger Generations Could Be A Boon For Global Diamond Demand - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gjepc.org\/solitaire\/indias-younger-generations-could-be-a-boon-for-global-diamond-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India\u2019s Younger Generations Could Be A Boon For Global Diamond Demand - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine\" \/>\n<meta property=\"og:description\" content=\"Diamond analyst Paul Zimnisky predicts that diamonds have a bright future in the robust Indian consumer market. 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