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FOREWORD

The launch of The Diamond Insight Report 2014 opened up the diamond industry to a wider audience and identified trends and opportunities for the industry to fulfil its growth potential. 

One of the areas highlighted in last year’s report was how the diamond sector is influenced by seasonal demand patterns and industry cycles. And, to some extent, this effect can be seen when comparing performance in 2014 with what we have seen so far in 2015.

Strong consumer sales of diamond jewellery over the end of year holiday season in 2013 led to strong pipeline restocking demand at the start of 2014 and the positive demand environment continued through most of the year.

Consumer demand reached a record high, rough diamond demand was strong and this set the industry up for a positive year.

However, with consumer demand for diamond jewellery at the end of 2014 being a little softer than anticipated owing to unfavourable currency movements and a slowdown in emerging market growth, many industry participants began 2015 with more inventory than they planned. This led to a period of ‘indigestion’ in the diamond value chain and as a result we expect 2015 as a whole to be a more challenging year.

But it is undeniable that the fundamentals of the sector remain attractive. Once the current stocks have worked through the system, the consumer’s ongoing love affair with diamonds will continue to provide a strong growth opportunity for the sector.

The history of consumer demand for diamond jewellery in India is an excellent illustration of this. In this year’s short edition, the report takes a closer look at this important diamond consumer market for the industry. India’s diamond consumer market has achieved almost uninterrupted growth over the last 20 years and the rapidly increasing size of its middle class points to continued growth opportunities in the years to come.

We hope you enjoy reading these latest insights into the world of diamonds and we look forward to publishing another full report, covering the entire value chain, in 2016.

PHILIPPE MELLIER
CEO, DE BEERS GROUP

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