Despite a shocking near shutdown in July, diamond trading online sees holiday surge.
In July of this year, the global pandemic had almost crushed the diamond industry. Shuttering the doors of the entire ecosystem, from mines, to rough cut sales, to brick and mortar retailers. With economic uncertainty still running high, and new protective measures put in place, the diamond industry was still in a bit of a tail spin. Until google analytics finally delivered some good news.
In July, major industry leaders cried out for a better system of buying and selling diamonds, both at a distributor and consumer level. Uni Diamonds, a digital marketplace where both vendors and buyers could come to buy their diamonds online, changed the entire system. Delivering the diamond trade from the antiquated and restrictive business practices of the past, by offering the first ever holistic ecosystem that existed purely online. This crucial pivot has helped revive the industry, even in the face of the pandemic.
An Uncertain Future
During the height of uncertainty following restrictive guidelines for covid-19 saw DeBeers, one of the biggest names in the industry, slow their business dealings to a near trickle; as the entire industry braced for a fall. Several of the larger diamond vendors and buyers joined to sign an open letter, urging the industry to make necessary changes and move online. Something which many believed consumers would be unlikely to go for. AS diamonds are traditionally a very tactile purchase.
However, new news has hit as DeBeers shared research conducted by the US, India, and China. This research showed that consumers were indeed finding a new normal, and sentiment for buying for the upcoming holiday season was extremely positive- even if consumers had to buy diamonds online.
How Diamond Trading Online Saved the Industry
Following the 10 months of frosty appeal, the diamond industry is finally seeing a revival in interest and buying. One that appears to surpass even the interest held in 2019. DeBeers has shown an increase of 0.3 million carats sold above their July numbers already. With many seeing improvement in rough diamond sales across the board according to Mark Cutifani, the chief executive of Anglo American. Google analytics have shown a normalization in the interest of consumers curious about buying diamonds online, which could mean that fewer are opposed to heading to the digital realm to get their sparkly holiday sentiments.
There have also been firmer indicators of recovers, such as Alrosa’s steadily rising stock prices, situating the values back to initial 2020 heights. Which could be easily attributed to the sudden changes made this summer. Especially as news from consumers continues to indicate not only an interest in buying diamonds for their special someone, but also a greater level of comfort purchasing these gifts online.
Global Change as Consumers Buy Diamonds Online
DeBeers and Uni diamonds both have discovered that intent for online purchase is no longer a question of “will they, or won’t they” but instead of “how much”. Mining and polishing industries have been hesitant to return to pre-covid supply levels, particularly as demand warned in July, however, many are starting to look towards reopening as positive sentiment is assured.
Research has indicated that intent to purchase diamond jewelry for this upcoming holiday season was high amongst consumers in the US, China, and India- the top three largest markets historically. With nearly 60% of US males saying they intend to purchase diamond jewelry for their significant others, and 33% of women saying they intend to purchase for themselves. In China and India, over 80% of respondents said they plan on purchasing diamonds this year, both for their partners and for themselves. With under 35’s being the most excited about these purchases. As many consumers look for a way to shore reassurance and normality during these times.
The survey showed that partner sentiment and “how beautiful the piece(s) is” being the biggest motivators for giving- far surpassing practicality. Which could see a greater wave of rare gem and diamond trading online. However, many consumers stated that they also expected a dialogue with retailers, even if that meant a chat online. As many still look for the highly personalized experience. Particularly as diamonds appear to be the symbol of a new found comfortability with the “new normal” that covid-19 has brought with it.
