Our summary Lettre of the Week focuses on three key points for the development of our industry.
Let’s start with production. This is a crucial issue for the diamond industry’s future. While diamonds are forever, mines are not. And in view of the dynamic demand for diamond jewelry, supply problems and traceability needs exacerbated by the Russian crisis, the question of current and future mining locations is once again being pushed center stage. While it seems that Angola is ‘the place to be,’ we will need to investigate other avenues and anticipate the closure of large mines to ensure we do not run out of raw materials of the required quality…
In its own way, hard hit by the sanctions against Russian diamonds, this is what India is doing. We already knew that Indian polished manufacturers were investing in manufacturing lab-grown diamonds. But the trend is accelerating for the country, which sees it as a solution to its current supply problems and a way of retaining the jobs of cutters, who have been forced to return to the land because of raw material shortages. The GJEPC intends to boost the scale of the phenomenon, arguing that “this segment could produce up to 150 million carats of polished per year.” This trend should be monitored, since this would compete with lower-quality melee and natural diamonds…
Finally, the major jewelry and fine jewelry Maisons are continuing to build momentum and their sales are being stimulated by marketing campaigns and the undeniable need to create connections, ‘gift feelings’ and meaningful presents. This is evidenced by the exceptional results of Richemont, propelled notably by its grand Maisons, Cartier and Van Cleef & Arpels, which have been able to adapt their cultural heritage to the yardstick of modernity by conquering an ever-greater share of the American market. And, even though managers of the major mining groups and luxury brands refuse to make any forecasts given the highly uncertain macroeconomic context, we can still see this as a positive sign for the future! We also note that the good performance of the Richemont group’s high-end watch brands, which are popular with Gen Y and Z, is a trend to follow.
To end, we wanted to highlight Richemont’s commitment to sustainable development. A commitment that has been duly rewarded, as Lenore Fedow of the National Jeweler explains: “Richemont was among the top 2 percent of companies rated by Sustainalytics and named one of the World’s Best Employers by Forbes 2021. The company will also be named a Financial Times-Statista Climate Leader 2022.” An example to follow!
Happy reading and enjoy your week.