A Brave New World for the Diamond Trade
May 06, 2021RAPAPORT... Health concerns aside, the diamond trade is in better shape than it was a year ago. In fact, the market dynamic is arguably healthier than it has been at any point in the past decade. That’s increasingly evident as polished prices continue to firm.
The industry was also coping with other pressing issues. Companies were devising traceability programs to assure consumers that natural diamonds were being produced ethically, while major manufacturers were sneaking into synthetics. Simultaneously, the industry was figuring out how to integrate digital channels into what has traditionally been a face-to-face market.
But as other markets open again — particularly the major consumer centers of China and the US — more important long-term considerations have emerged for the industry. What does a digital strategy look like with consumers heading back to stores and with traders meeting in person again? How will manufacturers adjust when sights return to Botswana and as beneficiation programs keep more rough in southern Africa? Will Chinese luxury shoppers return to the fashion capitals to spend, or will they stay local? Should retailers double their bets on China? And what should the corporate social responsibility (CSR) focus be in the post-pandemic environment?
These are the questions we tackle in the May edition of the Rapaport Research Report. And while we may not be able to provide clear answers yet, it is worth recognizing that these issues are shaping the diamond industry agenda in 2021. The outlook is vastly different than it was just two years ago. Then again, we’re all living in a very different world.
The Rapaport Research Report presents proprietary data on polished diamond prices, along with market intelligence and analysis. Subscribe to the report here.
Images: Cover of May Rapaport Research Report. (Shutterstock)
Article originally published on Diamonds.net here