The Russian jewelry market is on track to expand to more than $4 billion in 2008. The main growth will occur in Russia’s major industrial cities, such as Ekaterinburg, Orel, Rostov, Saratov, Yakutsk and Vladivostok, according to an assessment made by the president of diamond polishing and jewelry producing company Choron Diamond, Rajesh Gandhi, during a visit to India.

Gandhi told Jewellernet that the Russian jewelry industry’s annual growth is 20 – 30 percent. Half of the sales are of precious metal jewelry and the rest is jewelry set with precious stones and gems. He also commented that Russia’s interest in jewelry is growing every year, citing the 5 percent increase in jewelry sales per person in 2006 as evidence.

“Despite the abundance of the Russian jewelry market, the potential of the mid-priced product market is not being fully realized,” Gandhi said. “The profitability of jewelry products, whose prices are $500 - $1,500 is 25 percent, and with the gradual growth of the population income, this sector is the most promising.”

In 2006, the Russian jewelry market was $3.8 billion, of which $1.8 billion was diamond jewelry.

Choron Diamond’s research showed that the most popular products among Russian women are rings, chains and earrings. They are worn by 97 percent, 91 percent and 88 percent of the female population respectively. Only 12 and 11 percent of Russian women buy brooches and necklaces.