ALROSA and the GfK research company have conducted extensive research into diamond consumers in the US and China, and found that 86% of Chinese respondents and 59% of respondents in the USA plan to buy at least one piece of diamond jewelry this year.
In general, consumers in both countries are interested in acquiring diamond jewelry and are planning to buy items in the future. Furthermore, they responded that they purchase for themselves much more often than as a gift for others.
The research was conducted last fall among a total of more than 4,000 men and women from the USA and China aged 25 to 55 years, with average or above average income, who bought or received diamond jewelry as a gift within the last 12 months, ALROSA said in a statement.
In another encouraging sign, diamond jewelry buyers are not just loyal consumers thinking a diamond is a good item to buy for themselves, but are also willing to advise friends to do likewise. This is backed up by 34% of Chinese respondents, and 37% of Americans, saying they would recommend diamond jewelry to a loved one as a gift to their friends.
In terms of sales, 44% of Chinese consumers and 38% of US consumers bought one piece of diamond jewelry last year, while 34% of Chinese respondents and 30% of US respondents two jewelry purchases annually. Meanwhile, one in seven consumers in China and close to 20% of American consumers buy three pieces of jewelry a year, the report added.
It should be borne in mind, however, that Chinese buyers have significantly lower buying power since the average wage in China is far below that of the United States. In practice, that means that items bought by Chinese buyers are considerably less expensive, meaning the diamond content is much lower.
Income per capita in China, according to CIA figures, is estimated to be $16,600 in 2017, while in the United States it was $59,500
Nonetheless, the research is good news for the diamond and jewelry industries. Thanks to Millennial Chinese shoppers, the Chinese luxury goods market soared 20% to around $22 billion last year. It was by far the largest rise after five years of listless growth, according to global business consultants Bain & Co.
Luxury goods bought in China account for 8% of global sales, while Chinese shoppers, because they make 75% of their luxury purchases abroad, are behind 32% of sales globally.
