Gems & jewellery shining bright: An industry perspective

Like every other industry, the diamond industry, too, is constantly changing and evolving. There is always something new to know about, be it related to Artificial Intelligence (AI) or Augmented Reality These two technologies, especially, have brought about a major disruption in this field.

Disruption is not the first step in bringing about change. It needs a thought process that is very different from the rest.

The term disruption in context goes much beyond just adapting to changing trends. It is more apt for an entity that generates change and leads the way. With the help of its unique pricing tools, Divine Solitaires has created a niche for itself in the solitaire and solitaire jewellery section.

The kind of disruption that not only sets the trend but also eases out challenges sets a good example. It adds more value to the existing technology and structure of the diamond industry.

Kisna Diamond Jewellery – HK Group always thinks and foresee the future trends of the gems and jewellery sector which is witnessing many changes during this Pandemic. We at our end always study the fast-changing trends and consumers preferences which keep us ahead of the competition. This Pandemic has changed a lot of things in terms of consumer behaviour, consumer preferences, demand and supply and trends. Consumers will demand more value for money jewellery which will be lightweight, trendy and contemporary and branded jewellers can fulfil their changing demands better than the local unorganised players.

But in this Pandemic situation, the disruption has come in terms of technology-driven sales and marketing which as consumers are more inclined towards Artificial Intelligence and online buying.

In the coming years, growth in the sector would be largely contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. We (Hk Jewels) foresee the following disruptions in the diamond industry.

The rapid growth of e-commerce in the diamond jewellery market lowered polished sales performance in 2019 and will continue to influence the diamond pipeline. Online sales and more efficient supply chain operations require less inventory on hand, causing a need to rethink the business model for midstream players. HK Jewels working towards the sustainable model and eCommerce platform for our online buyers, we are strengthening and using the technological tools to educate the consumers about the Diamond Jewellery.

Marketing spending is increasing to address complex consumer needs. Customer preferences are changing rapidly during this Pandemic as preferences have shifted, consumers are right now thinking of ROTI KAPADA aur ROZGAAR, but there are a set of consumers who spend on Hotels, Restaurants and holidays, they will be our new consumers as spending on these categories will be declined in the near future, Kisna has seen this Pandemic as an opportunity as to grab this and get our sales increased.

The focus on sustainability and social welfare heightened. Both consumers and the professional community are seeking transparency throughout the pipeline to ensure diamonds are sourced responsibly and produced sustainably. There are various programs that are emerging to minimize negative environmental impacts and to support people in remote locations with employment opportunities. As HK always believed in Sustainable growth and development of resources, we always support the social cause and therefore we have come up with various CSR activities to main the sustainability.

The long-term outlook for the diamond market remains positive despite short-term challenges. In volume terms, rough diamond supply growth is projected to be negative 2% or 0% annually. Demand for mined rough diamonds is expected to recover, either staying flat or growing up to 3% annually through 2030. Recovery requires continued growth of GDP, the middle class and purchasing power, particularly in China and India. To convert increased wealth into growth, the industry must also provide structured marketing support. Both industry-wide and company-specific marketing are necessary to revive and sustain demand. In the conservative scenario, our projection accounts for a possible shift in consumer preferences away from natural diamonds due to lack of marketing support. It also reflects fundamental long-term supply and demand factors rather than short-term fluctuations.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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