Forevermark Aims High in India
January 15, 26
There's a lot we can learn from De Beers and the launch of its standalone Forevermark stores.
It's chosen India as the test bed for its new retail approach, and it has set a very clear agenda.
It's targeting high earners, especially affluent women buying gifts for themselves. It's targeting large, wealthy cities.
It's ditched the shop-in-shop approach in favor of its own high-end stores.
And it's elevating consumer aspirations toward higher-value, branded natural diamonds. In short, it's aiming high.
Last week, it opened its fifth standalone (or "global") Forevermark store in Mumbai. At 5,000 sq. ft., it's the biggest so far.
De Beers aims to have 25 such global Forevermark stores in India by the end of 2026 and 100 by 2030, targeting a combined annual revenue of $100m.
Forevermark sells its diamonds and jewelry at 4,200 retail outlets globally, but primarily through authorized partner jewelers, independent retailers, shop-in-shops, and multi-brand jewelry stores.
The idea of a global, or standalone, store is, for the time being, exclusive to India.
De Beers is deliberately steering clear of China, where diamond purchases are declining (by as much as 25 per cent annually), or the U.S., already the dominant market, with steady but modest growth (approx. CAGR 4 per cent).
It has chosen India for the new initiative, where the diamond market is buoyant and projected to increase by 10 to 12 per cent annually.
India is now the second-biggest diamond buyer after the U.S. and represents a vast untapped market, with diamonds still accounting for less than 10 per cent of all jewelry sales.
But the young, wealthy middle classes are starting to reject the long-held traditional and religious appeal of gold as an heirloom and are switching their spending to diamonds instead.
De Beers is following the money, locating its global Forevermark stores in Tier 1 cities (Mumbai, Delhi) and Tier 2s - those characterized by rapid urbanization and rising disposable incomes.
It's also going for self-purchasers over occasion buyers - women aged 25 to 45 who are buying versatile daily wear for themselves, rather than families purchasing heavy gold for weddings (70 per cent of demand) or for Diwali and other festivals.
And it's taking control of how its goods are marketed. Forevermark entered the Indian market in 2011, operating a shop-in-shop retail model.
Partnering with third parties offered some advantages: it was a low-risk strategy with instant access to high-footfall locations.
But there were limitations. Forevermark fought for space and prominence in a market still overwhelmingly dominated by gold. It forfeited control over the story it told and over the customer experience.
Global Forevermark stores redress market imbalances, granting De Beers full creative control over every detail of store design as it aims for Rs 1.5 lakh+ (USD 1,660) tickets in high-traffic urban spots.
Remember Lightbox - De Beers' 2018 foray into lab-growns? It's still widely seen as a defining moment that gave legitimacy to manufactured diamonds.
That was De Beers wanting to have a foot in both camps. Global Forevermark is a much clearer statement of intent - no more chasing mass-market fashion. This time, both feet are in the premium camp.
Have a fabulous weekend.