Diamonds are one of the most precious luxury items enjoying global acceptance. Diamonds as a category are a powerful product with all the emotional values inherent in the best luxury brands, to put in perspective in 2005 consumers around the world bought 89 million pieces of diamond jewelry, making diamonds a $68 billion industry. US remains the world’s major diamond consumer, the developing countries of both India and china have emerged in the last decade with strong marketing programs.
The domestic gems and jewelry industry had a market size of INR 251,000 Cr (42M $) in 2013, with a potential to grow to INR 500,000 (84M $)–530,000 Cr (88M $) by 2018. India’s Gems and Jewelry Export Promotion Council (GJEPC) plans to spend $8 to $10 million for advertising diamond jewelry among consumers in India over the next three years.
The jewelry consumption behavior in India varies across geographical regions, with few regions focusing more on investment demand than other regions. This is reflected in geographical differences in terms of gold type, diamond quality, jewelry type, and key decision makers in the East and South parts of India, gold jewelry has a high association with culture and traditions, making them better markets for traditional designs. The North and West, on the other hand, have higher demand for white gold and diamond jewelry.
Knowledge of lifestyles and individual tastes and information like anniversaries or birthdays help in target customers. Taking information from customers’ permission at point of sale and in-store surveys. Overtime building a customer database will be useful as its contents become deeper to sustain customer relationships in long term. (Couple: wedding anniversary, other anniversary, birth of a child or grandchild. Single: graduation, promotion, special achievement).
Databases are not simply information centers. They are an active aid to profitability, growing diamond jewelry business. With the current research which focused on geographical areas, obtaining customers database, lifestyles and growing economy in India, there is good potential to invest in India in diamond jewelry industry.