The Holiday Test for Diamond Demand

Solitaire International: Higher prices are supporting revenue growth among retail jewelers, but that value growth is masking a decline in unit sales. Inflation is part of the story. So is the resilience of the high end of the market, where consumers are trading up to better-quality, higher-value goods.

Still, the drop in unit sales points to the underlying challenge facing the diamond and jewelry industry: getting more people to buy jewelry, rather than relying on existing buyers to spend more.

That puts the spotlight on industry marketing bodies as the holiday season approaches. Their task is not only to support revenue growth, but to create broader desire for diamonds that translates into greater unit demand as well.

Read the full analysis in my latest column for Solitaire International: “The Holiday Test for Diamond Demand.”

Images: From The Diamond Collective rebrand campaign. (The Diamond Collective)