RESTORING THE DEMAND - The Challenge of the Diamond Consumer

Ehud Laniado passed away on March 2, 2019. It is hard to digest this news from someone who made a lasting impression during his lifetime.

Ehud's writings on the diamond industry over the years are reminiscent of his desire to share his thoughts on the diamond industry, which remain as relevant today as when first published.

Over the last five years, Ehud often discussed the need for the diamond industry to act in unison to address some of its most pressing challenges. As a first step, there is the need to ask the right question, starting with what explains the decline in consumer demand.

This past February, right after Valentine's Day, he stated: "Consider the following: diamond jewelry sales are not as good as they used to be. The decent margins wholesalers and retailers used to have on diamonds have withered. While luxury sales are growing, diamond jewelry sales are losing market share in the category. Consumers are losing interest in traditional diamond jewelry, opting instead for alternatives such as lab-grown. Considering all this, my question to the industry is 'what are we doing to turn this around?"

Ehud sought to enlist the diamond industry to examine the steps that brought us to this point, from the decline in marketing to the limited attention to evolving consumer needs. These trends, which Ehud explored in depth, led to a decline in consumer demand for diamond jewelry and a rise in interest in alternatives. From other luxury items such as vacations and handbags to different stones to set in jewelry, including precious stones and lab-grown. According to Ehud, our diamond industry partly brought the decline on itself.

On the positive side, he always believed that the diamond industry could change its course and generate renewed consumer interest in diamonds. In the coming weeks, we will examine that idea in light of his publications.

Related articles:
Demand is Shrinking for a Reason
From Tulips to Diamonds - Why Now?
Low Consumer Demand and High Rough Supply

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