|
|
Antwerp
By Marc Goldstein
For the second consecutive year, the Antwerp World Diamond Centre (AWDC) hired Bain & Company, an international management consulting firm, to prepare a report on the growth of the global diamond industry. The purpose of the 82-page research report is to supply the industry with a detailed analysis of the way the diamond industry is
likely to develop, both production- and retail-wise. “As the world diamond center, we believe that it’s part of our duty to
the global diamond industry to supply reliable information regarding the evolution of consumption in the major markets,” said Caroline De Wolf, spokesperson of the AWDC. The report provides a detailed analysis of consumer demand in all
major diamond retail markets, based on interviews with consumers in China, India, the U.S., Russia and the European countries of France, Germany, Italy and the U.K. Each review included answers to questions on the diamond market fundamentals specific to each country, local drivers of consumer demand and development and trends in the trade. Among the findings, the report said that “In countries in the midst of rapid economic development, such as China, India and Russia, diamond jewelry is the clear favorite of women asked to rank their preferred luxury gift, ahead of vacation trips, fashion accessories, cash and electronics. In
the more developed economies of Europe and the U.S., diamonds compete more closely with holidays, cash and accessories. But nowhere among the markets we analyzed for this report do diamonds stand lower than third on the list of women’s preferred gifts.”
In another section of the study, the issues of “authenticity” and
“synthetic diamonds” are addressed, along with how the terms are understood by consumers. “When it comes to diamond jewelry, design
is what matters most to a woman. In most regions, clarity is the next
most important consideration, ahead of size and color. Secondary considerations include price, the brand of the diamond or jewelry
and the stone’s country of origin.” “Left unspoken,” continued the report, “is an equally important
selection criterion: authenticity. In every country we studied, the reaction of consumers to synthetic diamonds was overwhelmingly negative. Wherever we asked consumers about their thoughts regarding synthetic diamonds, the most frequent answers were ‘cheap’ and ‘fake’— reassuring words to any rough diamond producer worried that synthetic diamonds might someday supplant the real thing, the way CDs supplanted vinyl records or digital photography has made film nearly obsolete.” The report concluded that the terms “fake” and “cheap” were used almost interchangeably in China, Russia, Germany, the U.K. and the U.S., while Italians and French more often just said “fake.” The report added that “On the whole, the emotional resonance of diamonds for women is so powerful that the market faces little substitution risk from synthetic alternatives. The importance of authenticity also helps explain why quality certificates are
so accepted and relied upon in many markets, especially developing ones.”
Stephane Fischler, president of the AWDC, explained that the center selected Bain to do the study because it is “a recognized and leading worldwide strategy and market research organization and would produce
a high-quality and objective report. The focus is twofold. On the one
hand, we want to offer the industry a longer-term insight into how the major markets are likely to evolve. And on the other hand, the goal is through this kind of research to better inform external stakeholders and, in particular, raise the awareness of international financial institutions on the opportunities offered by our industry. Given the positive feedback we have so far received, we have decided to personally share the findings of the report with our Asian, African and American partners, who we intend to visit, with the firm intention of further consolidating our leadership and business relationships.”
The AWDC has been commended in a resolution adopted by the
United Nations (UN) General Assembly for its role in the development of
a more efficient and effective Kimberley Process (KP) website. The UN also acknowledged the KP decision to establish an administrative support mechanism (ASM) to provide logistic, organizational and communications support to the KP on an ongoing basis. The ASM will be hosted by the World Diamond Council (WDC) and supported by the AWDC. Ari Epstein, CEO of the AWDC, said the center has been involved in the work for more than one year. Article from the Rapaport Magazine - February 2013. To subscribe click here.
|
|
|
|