Photo courtesy of Firenze Jewels
By Roopa Gona and Stephanie Merry
Although some have speculated about the demise of the diamond industry, the public’s ongoing lust for the pricey jewels has persisted. Seventy-five percent of brides-to-be wear diamond engagement rings, the size of the gems sparkling on their fingers has grown, and the industry has actively cultivated new buyers.
The diamond industry has weathered two recent challenges.
First, the movie “Blood Diamond”
heightened awareness about the issue of “conflict diamonds” and seemed to threaten the jewel’s appeal. Also, research revealed that the diamond industry’s prime demographic market was shrinking: fewer women were getting married and 51 percent lived without a spouse.
More than 40 million pieces of diamond jewelry were sold in 2006, and the average price per piece also rose, according to the Diamond Promotion Service, which provides marketing and education support to the jewelry industry. U nderlying the industry’s success is a combination of the consumer culture fueled by
successful marketing that leaves potential buyers wanting ever
bigger, statement-making gems.
“In times when conspicuous consumption has been considered gauche, women preferred their diamonds smaller and quieter,” said Amy Curran, vice president and buyer for Fortunoff Fine Jewelry in New York City. “Currently, women are allowed to ‘flaunt it’ and wear whatever they want.”
The diamond industry has aggressively marketed diamonds as a symbol of affluence.
In 2003, the Diamond Trading Company launched an ad campaign promoting the new right-hand ring to
unmarried, working women who can afford to buy diamonds. One ad stated “Your left hand says you're taken. Your right hand says you can take over.” In the first year of the campaign, non-bridal diamond ring sales increased 15 percent.
This year industry giant De Beers attributed major gains to its new Journey Diamond ad campaign. The marketing behind the Journey Diamond idea was that a pendant necklace can convey how love grows over time by showcasing a line of four or more diamonds, each stone larger than the one above it.
The size of jewels has grown, and
rings have become more ornate. While a single square or circular stone used to be the norm,
many rings now incorporate more than just a single stone.
“The three-stone ring, called the Past, Present, Future ring gained much more popularity about three years ago, when the Diamond Promotion Service first started to advertise it,”
Curran said.
The three-stone is marketed for both engagements and anniversary gifts.
Despite these trends, jewelers have noticed increased awareness of
so-called conflict diamonds. In January, a World Diamond Council survey of jewelers found that two-thirds had customers who asked about conflict diamonds.
Jewelers stand ready to quell the fears of potential buyers.
In July 2000, the World Federation of Diamond
Bourses and the International Diamond Manufacturers Association formed the World Diamond Council to track the diamond trade and to cut down on illegal trading and exploitation.
The WDC claims that the percentage of conflict diamonds on the market have been reduced from 4 percent of the total diamond industry to less
than 1 percent.
Surveying a handful of vendors in New York City’s diamond district, however, found that few potential buyers ask or even know about conflict diamonds. Buyers are more concerned with getting the
most for their money. The price of two engagement rings with
similarly cut and sized stones can vary widely depending on the
quality of the gem. At Fortunoff, for example, an antique style
engagement ring with a .35-carat stone costs $1,295, while a
high-quality two-carat ring with two .3-carat sidestones will set a
buyer back $22,500. Online retailer Blue Nile offers customers the
chance to build their own rings or buy pre-set engagement rings. A
platinum ring with a .25-carat round diamond costs $625 while a
one-carat ring with the same setting costs $5,600.
On the De Beers Web site ADiamondIsForever.com,
consumers can calculate the amount one should expect to spend
for an engagement ring. According to the diamond company, two months’ salary is the appropriate amount, so if an interested buyer
enters $30,000 as her yearly income, the calculator spits out $5,000 as the “suggested guideline.” This figure reflects the new trend in diamond shopping
-- the bigger, the better.
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