{"id":25645,"date":"2024-04-17T16:59:33","date_gmt":"2024-04-17T11:29:33","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=25645"},"modified":"2024-04-22T17:56:35","modified_gmt":"2024-04-22T12:26:35","slug":"india-a-clear-bright-spot-for-downstream-natural-diamond-demand","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/india-a-clear-bright-spot-for-downstream-natural-diamond-demand\/","title":{"rendered":"India: A Clear Bright Spot for Downstream Natural Diamond Demand"},"content":{"rendered":"

De Beers will reportedly be overhauling its third-party distributed diamond brand Forevermark over the next two years. According to a letter sent to distributors and seen by the trade, Forevermark will be restructured exclusively as a diamond jewellery brand \u2013 marking a move away from branded loose diamonds.<\/p>\n

But that\u2019s not all. The new structure of the brand (at least at first) will only be available in India, which the company noted holds the greatest \u201ccommercial potential\u201d for the new iteration. This means Forvermark will no longer be distributed in the US and China, the diamond industry\u2019s two largest markets by sales.<\/p>\n

Forevermark, a natural diamond proxy, has consistently outperformed in India with double-digit sales growth reported in each of the last three years. Even during what was an especially difficult year for the diamond trade in 2023, Forevermark India sales notably grew 15-20%, driven by strength in the ever important festive and wedding season.<\/p>\n

\"\"
Traditional Indian uncut diamond jewelry. Source: Paul Zimnisky<\/figcaption><\/figure>\n

During an exclusive interview with Solitaire<\/a> in January, Amit Pratihari, VP of Forevermark India, forecasted that the Indian natural diamond jewellery market could grow by 150% to $18 billion by early next decade. Pratihari noted that India remains a \u201cbright spot\u201d for the larger industry, predicting that with positive demand fundamentals \u201csales will only increase\u201d in India.<\/p>\n

Titan Company, India\u2019s largest jewellery conglomerate, has shown a similar trend. The parent of jewellery brands Tanishq, CaratLane and Zoya, grew company-wide sales 32% in the fiscal year ended March 2022 and 41% in the following. While the company has not yet released full year fiscal 2024 figures, based on quarterly reports, Titan appears to be on pace for another year of 20%-plus growth.<\/p>\n

\u201cDiamonds are a swiftly growing category in India \u2013 and, as such, India is now estimated to be the fastest growing large market for diamond jewellery in the world (as the U.S. is mature and China is facing a structural slowdown).\u201d<\/em><\/p><\/blockquote>\n

During an analyst call in February, Titan management said that \u201c(Indian) customers are already buying gold jewellery\u2026but when it comes to studded (jewellery) in the sub Rs. 50,000 (sub-$600 range), it\u2019s a case of market expansion\u2026that segment is getting created as we go,\u201d adding \u201cas India becomes more affluent, the aspect of diamond jewellery (will be) in our favour.\u201d<\/p>\n

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

For context, Titan generated approximately $4 billion in net jewelry sales (excluding watches, eye ware and bullion) in the fiscal year ended March 2023, which the company estimates to represent a 7% share of the total \u201cIndian jewelry market.\u201d This implies an Indian jewelry market worth some $55 billion (which counts for about 15-20% of global sales).<\/p>\n

In India, gold jewellery still represents the bulk of sales, with the contribution from diamonds estimated at around 10-15% of total value sold. That said, diamonds are a swiftly growing category in India \u2013 and, as such, India is now estimated to be the fastest growing large market for diamond jewellery in the world (as the U.S. is mature and China is facing a structural slowdown).<\/p>\n

On a more macro level, India is forecast to be the world\u2019s only large economy growing in excess of 5% this year. Indian stocks, as measured by the CNX \u201cNifty\u201d 100, are currently trading at an all-time high, up a bullish 35% over the last 52-weeks. In calendar Q1, 2024, initial public offerings in India were up a massive 12x in value raised year-over-year.<\/p>\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 and forecasts 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 for exclusive full-length conversations with special guests from the gem and jewelry industry. 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 X <\/em>@paulzimnisky<\/em><\/a>.<\/em><\/p>\n

Disclosure: At the time of writing Paul Zimnisky held a long equity position in Lucara Diamond Corp, Brilliant Earth Group, Star Diamond Corp and Newmont Corp. Paul is an independent board member of Lipari Diamond Mines, a privately-held Canadian company with a kimberlite mine in Brazil and a development-stage asset in Angola. Please read full disclosure at <\/em>www.paulzimnisky.com<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

De Beers will reportedly be overhauling its third-party distributed diamond brand Forevermark over the next two years. According to a letter sent to distributors and seen by the trade, Forevermark will be restructured exclusively as a diamond jewellery brand \u2013 marking a move away from branded loose diamonds. But that\u2019s not all. The new structure…<\/p>\n","protected":false},"author":7,"featured_media":25646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96,100,107,79],"tags":[],"thb-sponsors":[],"class_list":["post-25645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diamonds","category-in-focus","category-retail","category-viewpoint"],"acf":[],"yoast_head":"\nIndia: A Clear Bright Spot for Downstream Natural 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\/india-a-clear-bright-spot-for-downstream-natural-diamond-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India: A Clear Bright Spot for Downstream Natural Diamond Demand - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine\" \/>\n<meta property=\"og:description\" content=\"De Beers will reportedly be overhauling its third-party distributed diamond brand Forevermark over the next two years. 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