Strong Start to JCK Las Vegas
May 30, 14(IDEX Online News) – As JCK Las Vegas opened today (Friday) the show floor was buzzing, the booths were crowded and there was a generally positive atmosphere pervading the event.
Although it’s far too early to say what sold and what was hot when it came to diamonds, diamantaires were certainly selling. A number said the show was off to a strong start and that they were looking forward to the next few days of trading.
The big draw of the day were presentations by De Beers CEO, Philippe Mellier, who spoke about De Beer’s perspectives on the diamond industry and, Forevermark CEO Stephen Lussier, who shared insights into changing consumer and retail trends in the US.
Among the points Mellier touched on during a question and answer session following his presentation was the issue of pricing. He said that complaints about rising rough prices essentially showed some lack of understanding about the increasing costs of producing rough diamonds. He pointed to wage inflation, higher infrastructure costs as mining moves deeper and eventually underground as well as the spiraling costs of energy and water as being partly responsible for the rough price hikes.
The threat of synthetics is, obviously, very much on people’s minds. Interestingly, however, Mellier said that recycled diamonds represent a threat as big as synthetic diamonds. “It has the potential to destroy the diamond dream,” he said of this growing sector.
In his presentation, Lussier touched on the growing importance of the US retail market and the results of a survey conducted by De Beers examining the market. While the results of that survey are still being analyzed, he said that preliminary information revealed that the US currently has a 39-percent share of the world diamond market, followed by China at 12 percent and Japan at 8 percent.
He noted that one of the biggest surprises of the survey has been the increased purchase of diamond wedding rings. According to De Beers’ data, some 80 percent of wedding rings sold in the US now contain a diamond, a clear move away from plain metal bands of years past.
As far as diamond engagement rings are concerned, Lussier said that the price of engagement rings has increased 40 percent compared to 10 years ago while the carat content has increased by 60 percent over the same period, although he did point out that this could also indicate a decline in quality.
With De Beers keen to push the Forevermark brand, Lussier emphasized that diamond branding is the key to engaging young millienial consumers. “Young consumers want something they consider differentiated,” he said.
JCK Las Vegas runs until June 2.