February 1, 2018
Only 30 percent of diamonds are purchased as gifts. Image credit: Alrosa
Despite the rise of diamond disruptors such as synthetic stones and gemstones, the majority of consumers from the United States and China plan to purchase diamond jewelry in the coming year.
A new report from diamond miner Alrosa and conducted by GfK found that 86 percent of Chinese consumers and 59 percent of Americans who have bought diamonds in the past expect to buy diamond pieces in 2018. While some are turning away from diamonds due to sustainability or social concerns, this study indicates that there is still strong interest for repeat purchases.
Present purchases
GfK interviewed more than 4,000 individuals in the U.S. and China, respectively the largest and fastest-growing markets for diamonds. The research focused on consumers with average or above-average incomes who had made a diamond purchase in the past year.
Of the consumers looking to purchase diamonds in the coming year, only about two in 10 plan to solely shop for gifts. About half expect to self-gift only, while the remaining three in 10 plan to do a mix of self-gifting and gifting.
Only 30 percent of diamond purchases last year were given as a gift.
Only three in 10 diamonds is given as a gift. Image credit: Vogue
Forty-four percent of Chinese consumers and 38 percent of consumers from the U.S. bought a single piece of diamond jewelry last year. Three in 10 U.S. consumers bought two pieces, while 34 percent of Chinese consumers did the same.
Around a third of consumers say that if asked for advice on a gift, they would recommend the gifter buy diamonds.
Primarily consumers gift diamonds to their spouse, representing about 60 percent of gifting. U.S. consumers are more apt to gift to parents or friends than their Chinese counterparts.
Nine in 10 diamond gifts are given to women, with Chinese consumers gifting 94 percent of their diamonds to female recipients.
Most diamond gifting goes to women. Image credit: Cartier
Gifting is also centered around younger consumers, with 71 percent of U.S. gifting and 57 percent of Chinese consumers gifting to those between the ages of 26 and 45.
U.S. consumers are more apt to gift diamonds to teenagers than Chinese consumers, while U.S. gifters are also more likely to give to those over the age of 46.
Diamonds disrupted
With diamonds traditionally tied to milestones such as engagements, the industry has needed to adapt to changing consumer behavior.
The Diamond Producers Association petitioned millennials who no longer value traditional marriage conventions with a new video campaign to keep the diamond custom alive in the modern world.
Social conventions have greatly shifted in recent years with many individuals, especially those in the millennial demographic, no longer finding it necessary to marry their significant other. The new notion can be threatening to the diamond industry, which relies heavily on the sale of engagement rings, but the DPA is hoping to stay relative with these consumers through its video (see story).
Jewelers are increasingly speaking to women as consumers directly rather than relying on men to buy gifts.
John Hardy is positioning its pieces as an empowerment tool through a campaign that speaks to feminine strength.
The brand’s new “Made for Legends” platform centers on the idea that jewelry is more than just adornment, as it can also be a means of expression. Appealing directly to women, the effort intends to turn these female fans into purchasers themselves, subverting the traditional notion of jewelry as a gifting item (see story).
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