The diamond industry is hoping for a strong holiday season to help it regain some of the major losses of this year, and put it back on track for growth in 2021; however, the Covid-19 crisis is still ongoing and its health and economic effects will be felt in holiday purchases, especially in the US market, industry organisation World Federation of Diamond Bourses president Yoram Dvash says in a letter to the industry.
In the letter, he points to a number of factors that may impact the sector.
Firstly, according to a Platinum Guild International study, Millennial and Gen Z consumers are more likely than other age groups to buy fine jewellery this holiday season.
Dvash says this means that effective marketing of diamonds to younger consumers is more important than ever.
There is also an indication that more than 70% are willing to buy jewellery online and this trend has become even more pronounced since the start of the Covid-19 crisis.
Further, while the pandemic has hurt the US economy, it has hit unevenly. The rich have unspent income and are likely to spend on luxury items, especially jewellery, Dvash says.
Diamond jewellery has been capturing some of the spending usually reserved for travel. Buyers are upgrading existing jewellery and buying new pieces. Forevermark US has seen double-digit growth each month since July.
Meanwhile, Dvash cites De Beers research which states that the pandemic has made people more likely this season to give a significant gift to a loved one than before.
De Beers CEO Bruce Cleaver has said there is greater consumer interest in enduring beauty and classic designs, along with a growing demand for authenticity and sustainability.
Dvash notes that these views from experts show that jewellery, and especially diamond jewellery, are very much on the minds of consumers this holiday season, which he considers a positive development.
Nevertheless, he cautions that there are still unknowns, especially in terms of the US elections, which are taking place at the start of the holiday season and are likely to impact the mood and behaviour of consumers.