In a stark difference to their increasing popularity in many other countries, Indian jewellery consumers continue to display a marked preference for natural diamonds, according to Titan Company’s managing director, C.K. Venkataraman on an analyst call last week.
Customer Inquiries and Preferences
According to Venkataraman, Titan’s stores, including Tanishq, CaratLane, Mia, and Zoya, have recorded minimal inquiries about lab-grown diamonds. He stated, “We’ve been trying to track the inquiries on a continuous basis across all the stores, Tanishq, CaratLane, Mia and Zoya, and so far we have not seen material inquiries for [customers wanting lab-grown diamonds].” Indian customers are more concerned about the authenticity of the diamonds, seeking confirmation that the stones are natural and not synthetic.
Assurance and Testing Measures
In response to customer demand for natural diamonds, Titan has implemented stringent testing measures to ensure the authenticity of its products. Diamonds sourced by Titan, primarily from De Beers sightholders, undergo extensive testing. “Any stones entering the company, which are primarily sourced via De Beers sightholders, are subject to very stringent tests,” Venkataraman explained. The company has invested in laboratory equipment and collaborates with its partners to maintain rigorous testing standards. Diamonds undergo multiple tests before being sold.
Cultural Influences on Diamond Demand
Venkataraman attributed the disparity in diamond preferences between Indian and US consumers to cultural influences, particularly media representations. He noted that American media, especially Hollywood movies, have historically promoted the idea that larger diamonds are more desirable. “If you go back to maybe even two decades ago, with American movies, where a male proposes to a bride, or the bride is showing off what she got from her fiancé, it’s all about the size of the rock, the solitaire,” he said. This portrayal has shaped the American jewellery market, driving demand for larger diamonds.
In contrast, Indian consumers do not share the same cultural motivation. The desire to impress with large diamonds is less prevalent due to the different media consumption patterns. “Women in India are not asking men [for big diamonds],” Venkataraman reiterated. “There is little demand for something like that.”
Industry Collaboration and Future Strategies
In a related development, De Beers met with the Gem and Jewellery Export Promotion Council (GJEPC) in Mumbai to discuss strategies for bolstering the natural diamond market in India. The meeting highlighted India’s growing significance in the global diamond industry and explored potential measures to support the natural diamond sector.
Implications for Jewellers
For jewellers, these insights underscore the importance of understanding regional market preferences and cultural influences on consumer behaviour. The emphasis on natural diamonds in India suggests a need for transparency and robust verification processes to meet customer expectations. Investment in testing technology and reliable diamond suppliers are crucial for maintaining trust and credibility in the market. Moreover, jewellers must stay informed about international trends and adapt their strategies accordingly to cater to diverse consumer preferences.
