China Drives Diamond Demand Growth

De Beers marketing and increased Western influence in China is proving to be a boon for the diamond industry. Traditionally, diamond rings had no place in the wedding culture in China but that has changed.

Chinese diamond jewelry purchases are projected to grow 12 percent this year from almost $2 billion in 2006 sales. In the first half of 2007, China’s diamond imports tripled and with diamond wedding rings representing about a third of diamond purchases, that means many brides in China are now wearing diamond rings.

Hong Kong set the stage for China thirst for diamonds. The influx of money into Hong Kong in recent decades created a passion for luxury goods. The top luxury brands set their stakes in Hong Kong years ago and the marketing focus on those brands has resulted in higher priced jewelry purchases. Because prices in Hong Kong are 20 to 40 percent lower than on the mainland, much of China’s luxury shopping was done in Hong Kong but the trend is changing. Now that mainland Chinese shoppers are brand savvy, they are demanding and getting higher-end retailers closer to home. Diamond shoppers in China got good news last year with the value-added tax reduction on imported diamonds.

The enormous population in China coupled with the thriving economy translates into a massive potential for diamond purchases. More grooms will be learning about diamonds online so they can make find the best diamond for their intended brides. Marilyn Monroe’s “Diamonds are a Girls Best Friend” is taking on new meaning for millions for jewelry shoppers in China.