A report by Bain & Company has claimed that India is on course to become the third largest diamond market by 2020 overtaking Europe and Japan. The boom in diamond sales is being driven by the millennials, reports PTI.
Currently, the largest markets for the luxury good is China, the US, Europe and Japan and India. The first two are set to remain so, said the report.
“We believe India has a potential to be the fastest- growing diamond jewellery market in coming years on the strength of increasing urbanisation, middle-class expansion and engagement ring penetration and overtake Europe and Japan to become the third largest market by 2020,” says the report.
Continuing fall in the rupee, however, may negatively affect market growth rates in dollar terms over the short to medium term, the report warned
The projection is based on the rough-diamond supply from existing mines and anticipated production at every expected new mine.
Basing its projections largely on a new generation of consumers called the millennials; the report says they represent a compelling opportunity for the industry. The population of the millennials have a strong preference for diamond jewellery, in China, India and the US totalled 900 million in 2015 and a combined gross income of USD 8 trillion. While the Chinese and Indian millennials rank jewellery as their top gifting category, non-millennials rank it second, notes the report.
Indian millennials cite their perception of a more favourable ratio of price to quality.