Young Consumers Seek Authenticity And Meaning In Their Diamond Purchases: Natural Diamond Council

Seventy-one years ago, when Marilyn Monroe sang ‘Diamonds are a Girl Best Friend’ in the film Gentlemen Prefer Blondes, it may have been social satire and a metaphor for materialism. (American singer Etta Jones was the original singer of the ditty.) Today though the song has been ingrained in our psyche as the ‘it’ song when it comes to a love for the gemstone that takes billions of years to form.

Fortunately, while the aspirational value of bigger and high-value diamonds continues, everyday wear diamonds have become accessible. Natural diamonds still dominate the market due to their history, rarity, and cultural significance; despite the growing popularity of lab-grown diamonds. Consumers are becoming more conscious about the origins and ethical sourcing of diamonds. There is also a growing preference for diamonds that are mined sustainably and ethically, with transparent supply chains.

According to the De Beers Diamond Insight Report of 2023, the demand for natural diamond jewellery in India soared by 20% in 2021 and continued to rise by 15% in 2022. Furthermore, the Euromonitor International Jewellery in India Report from November 2022 indicated a 14% increase in diamond jewellery sales, to approximately INR 5500 crores.

We spoke to Richa Singh, Managing Director of Natural Diamond Council (NDC), a not-for-profit entity specifically funded and established to promote the values of natural diamonds globally. It was founded in 2015 by seven major natural diamond producers as the Diamond Producers Association and re-branded in 2020 as NDC. In the conversation, we wanted to understand how the perception of diamonds has evolved and how it impacts the business.

Edited excerpts:

1. What are some of the biggest jewellery trends for 2024?

I would say it is cyclical. On one hand, you have your classic round brilliant solitaires and then there are modern interpretations with fancy shapes and intricate cuts, neither of which you want to hide away in your locker. We have also witnessed the resurgence of the timeless pearls and diamonds combination. Last year was the year of the choker and if you ask me, this year will be no different. We saw all these and more silhouettes at the recent Ambani wedding celebrations. While their colours and outfits changed, everyone was unified in their choice of diamond jewellery as a way to display their style and make a statement.

2. How important is India as a market in the global diamond marketplace?

India was the world’s first home of diamonds and continues to be the global hub of cutting and polishing. Nearly 90% of the world’s natural diamonds are cut and polished here, and 5% of India’s total merchandise export in 2022 was from the natural diamond industry. The industry has contributed extensively towards employment generation, community development and cementing the place of India on the world map.

Business aside, Indians have always loved their jewellery. From the elaborate adornments of solah sringar to the timeless ritual of piercing a newborn’s ears, every piece of jewellery is a story of heritage and legacy. In contemporary times, fine jewellery and natural diamonds continue to be symbols of emotions, investments and self-expression. This shift underscores the evolving landscape of diamond jewellery in India, where tradition seamlessly blends with modernity and cultural continuity.

3. What is NDC’s current focus for the Indian market?

Our focus continues to be to create desire for natural diamonds and to advance the integrity of the modern diamond jewellery industry by inspiring, protecting and educating both the consumers and the trade. All the content we create has been crafted with these two goals in mind. For the consumer, we have our digital platform www.onlynaturaldiamonds.in which is the unparalleled destination for everything natural diamonds covering every aspect that our consumer is looking for; from history, stories of romance, famous jewels and designer tales to education and diamond facts.

Our vision also extends to building the correct perception of the modern diamond industry, and we work in close collaboration with stakeholders along the pipeline to offer the right information about natural diamonds and their alternates. The Diamond Facts report that we launched last year will continue to be reinterpreted for consumers and retail partners, busting common myths and misconceptions about our industry.

4. NDC has chosen content to create awareness for natural diamonds, what has been the conversion on this strategy?

As a not-for-profit industry body our collaborative efforts with various stakeholders, including other bodies and many retailers, aim to create a larger impact and long-term desire amongst consumers. The curiosity for natural diamonds continues to be on an upswing as evidenced by our engagement metrics that are growing year on year. In 2023 alone we saw 64Mn website visits, 152Mn social engagements and 2.5Mn hours of YT content viewed in 2023.

5. While diamonds continue to be exclusive and luxe, what has been the evolutionary trajectory in consumer minds?

Historically, diamonds have always been placed on a pedestal, be it as offerings to deities, integral to our most celebratory moments or as the choice of adornment of the royals. Even today, diamonds remain both inspirational and aspirational. While fine jewellery was once considered more of an investment, natural diamonds are now embraced as a part of daily ensembles. People are no longer putting their diamonds away for safekeeping; we are moving from locker jewellery to everyday celebrations.

Interestingly, the trajectory of diamond jewellery has come full circle; initially designed for and adorned by royalty, they were slowly adopted as a girl’s best friend, and today it is a delightful shift with diamond jewellery once again finding its way back into the wish lists of men. Icons like Cristiano Ronaldo, Hardik Pandya, Ranveer Singh, Drake and many more proudly flaunt their carats, celebrating equality and individual expression. Irrespective of your gender, race or age, the moment you wear a diamond, it lends you an innate confidence and unmatched style.

6. In a digital-forward world, how do diamonds help maintain a connection to the real world, especially since NDC’s focus has been a younger audience?

The digital-savvy younger consumer seeks authenticity and meaning in their purchases, they look for ethically-sourced products that give back in many ways, natural diamonds offer them exactly what they are looking for. To ensure that we cater to this audience, NDC is working closely with jewellers and designers to cover multiple aspects of the diamond story – from provenance and their journey to craftsmanship and quality. We not only built a robust digital content library in 2023, but we also collaborated with OTT players like Disney+ Hotstar and Amazon Prime Video to be integrated within popular, relevant shows like Koffee with Karan and Made in Heaven Season 2. Since 2020, the online discovery of new products, designs and trends has grown exponentially, and as an industry, while we offer the best in-store experience to consumers, we are working with partners to replicate the same in the digital space as well.

 

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7. With sustainability becoming the buzzword for most industries worldwide, what steps is NDC and the diamond industry taking to support the cause?

NDC members are working closely with the UN to ensure that they pledge to meet the Sustainability Development Goals (SDG). To strengthen community development, 80% of the value created by diamond mining is retained locally, with members infusing $6.8Bn into local sourcing. To protect the environment, NDC members take great steps to preserve the biodiversity of the areas where diamonds are recovered and 84% of the water used in diamond mining is recycled. The world’s leading diamond producers conserve 2800 sq km of land, four times what they use for diamond mining. De Beers Group is committed to becoming carbon neutral by 2030. The third pledge is to promote gender equality and inclusivity and close to one-third of the world’s largest diamond producers’ workforce is women.

Unfortunately, as an industry, we have not been very forthright in sharing information about our sustainability efforts like water conservation and usage of renewable energy in operations. Still, I would like to share examples of initiatives taken by our IPP partners in India. At Rosy Blue, contrary to ordinary offsetting, where organisations buy certificates in projects that reduce CO2, the compensation of CO2 emissions happens through direct action in their supply chain and they are working to reduce their GHG emissions in line with the 1.5°C pathway by 2030. Jewelex has contributed $1.6Mn to establish a school that educates 900 tribal children and set up a healthcare centre that has provided 500,000 health services.

8. There has also been an increase in interest in lab-grown diamonds, how do you see this impacting natural diamonds?

We at NDC believe that natural diamonds and laboratory-grown diamonds are very different products, targeting two very diverse audiences, and both have great potential. We advocate that consumers should be informed of the values of both natural diamonds and laboratory-grown diamonds in a transparent manner.

There is a lot of misinformation being circulated, mainly a combination of pricing and sustainability narratives, and consumers are being misled by some of it. NDC is committed to maintaining consumer trust and confidence and our recently filed complaint with the UK’s Advertising Standards Authority (ASA) was upheld against Skydiamond for misleading marketing and advertisement of laboratory-grown diamonds as well as the terminology used to describe them. For example, they were told not to use the words ‘real diamonds’ to describe synthetic diamonds. Our Diamond Facts facts that were little known, such as not all lab-grown diamonds are sustainable.

The diverging price trends between natural diamonds and laboratory-grown diamonds also show that consumers understand the emotional and financial value of natural diamonds, and they recognize the difference between the two. Laboratory-grown diamonds will have a place in the fashion industry, but they cannot be a replacement for a billion-year-old heirloom.