With high inflation in many countries in Europe and the United States, low consumer confidence, and the increasing advantages and market share of lab-grown diamonds, the natural diamond market is facing unprecedented challenges. In 2023, the natural diamond index will be sharply**, and the global diamond** giant De Beers Group even announced that it will stop selling diamonds in order to stabilize the market. The parent company of the well-known diamond ring brand i do has also filed for bankruptcy protection due to the debt crisis.
At the start of 2024, De Beers Group adopted an aggressive price reduction strategy at its first rough diamond sight in order to stimulate production and consumption. It is reported that De Beers Group has lowered a variety of rough diamondsAmong them, the price of rough diamonds over 2 carats has been reduced by more than 15%, 0Rough diamonds under 75 carats have a price reduction of between 5% and 10%, and a combined price reduction of about 10%. This is the largest price reduction by De Beers Group in recent years.
Industry analysts believe that De Beers Group's price reduction measures are not only to improve its own sales performance, but also to give midstream processors and downstream retailers greater profit margins to boost market demand. However, it remains to be seen whether this strategy will be effective in improving the downturn in the natural diamond market.
At present, the demand for natural diamonds is mainly from countries such as China, the United States and India. However, consumer perceptions and preferences for natural diamonds are also changing in these countries. On the one hand, younger consumers are more concerned about the quality, design and personalization of diamonds than simply carats. On the other hand, lab-grown diamonds have attracted the attention of many consumers with their lower **, higher environmental protection and more selectivity.
According to Friedman, editor of the international diamond market service provider rapaport**The first quarter of each year is usually the time when middlemen purchase rough diamonds and retailers purchase polished diamonds in batches after the holiday shopping season at the end of the previous year. However, in the case of the United States, jewelry sales at the end of 2023 shrank by 2% year-on-year. Therefore, the demand and scale of merchants for ** are not clear. However, he **, this year's diamond retail sales are likely to be small**.
The competition between natural and lab-grown diamonds has also sparked debate in the industry. Some believe that lab-grown diamonds are a threat to natural diamonds and undermine their scarcity and value. Others believe that lab-grown diamonds complement natural diamonds and will expand the size of the diamond market and consumer base.
In any case, both natural and lab-grown diamonds have their own advantages and charms, and consumers should choose the right diamond for them according to their preferences and budget. For the diamond industry, how to adapt to market changes, improve product quality and innovation, is the key to maintaining competitiveness and attractiveness.