As I have previously mentioned here, diamond retailers are currently undergoing a period of consolidation that has been underway for years. Small independent jewelers are slowly disappearing, replaced by much larger chain stores that are taking significant market share away from the independents.
We already know that the new consumer is savvy, not swayed by empty slogans. We also know that the consumer expects to know more about the products they buy. This makes price transparency in diamonds very important.
To date, we have highlighted diamonds’ exchange value while all along calling for greater transparency. One of the most significant issues in understanding the value of diamonds is the many components of its value-determining characteristics and the complex interplay between them. Consumers had no way of valuating diamonds, of unlocking the valuation complexity. They often relied on an expert, usually a specialty retailer, to reveal these intricacies.
A small but important segment of the natural diamond market is the concept of diamonds as a potential asset for wealth preservation. Using diamonds as an asset is not a new concept. Just ask anyone who has inherited her grandmother’s diamond jewelry.
In a previous article, we looked at the buying behavior of consumers and how that behavior varies based on demographic factors such as age, income, and nationality. We have also looked at two recent additions to the consumer portfolio of options, namely recycled diamonds and lab-grown goods.