DTC Reports Strong Q1 Diamond Jewelry Market Growth

“Consumer confidence remains strong in both the US and Japan. While there are downside risks to the continuation of these trends - in particular, the impact of rising interest rates and high oil prices on consumer spending, the outlook remains good,” summarizes Stephen Lussier, DTC Marketing Director, the recent first quarter results of diamond jewelry sales.

The DTC reports today that following its marketing programs and an upbeat mood for the year ahead, reports indicate strong growth during the quarter led by the US, Japan, other Asian markets, the UK and France, but did not supply specific numbers.

US results have been partially driven by sales of three stone jewelry and the Right Hand Ring, the DTC says, with sales to the high-income households and married women segments displaying double digit growth. 

“Whilst this is encouraging, it should be seen in the context of a lackluster Q1 last year,” Lussier cautions. “But, the outlook for the remainder of the year, though, is strong with trade sentiment being very positive.”

In Asia, markets are continuing the pick up, with Japan, a leading market that has seen a downturn in recent years, jumping back on track.

Diamond jewelry sales in the country were up “with primary growth continuing in the three stone jewelry range which is a direct result of the supplier of choice strategy and the launch of Trilogy,” the diamond company says, forecasting positive growth for the rest of 2004 with growing popularity of both Trilogy and Diamond Line.

In Hong Kong, first quarter sales were up significantly on the same period last year with the trade expressing cautious optimism for the full year. In China, diamond jewelry sales reportedly outperformed platinum and gold and the Valentine's Day and Love Gifting messages for diamonds successfully drove total sales for the Chinese New Year gifting season. 

In Taiwan, diamond sales have outperformed all other jewelry with significant increases in sales over the first quarter, says the DTC. Meanwhile in Thailand, diamond jewelry sales have again fared better than sales of other types of jewelry, especially gem set colored stone jewelry, reporting that the trade is therefore expecting increased growth sales this year.

Regarding India, the DTC expressed guarded optimism following the surprising election results and the uncertainty of how they will affect the diamond market. However, the DTC reports that first quarter results indicate that growth in diamond jewelry was up on the same period in 2003, calling it “a promising start to the year”.

In general its outlook for the second half of 2004 is upbeat for Asia.

The DTC views these results as indicative of the success of the Supplier of Choice strategy, which aims to transform the pipeline to become more growth driven and consumer focused.