The demand for diamonds is likely to wane in India as the price of gems surge. India is the largest exporter of polished precious stones in the world. However the representatives of Titan Industries Ltd feel that current price rises of 60-70% for polished stones may see consumers buying gold over diamonds.
Sandeep Kulhalli, vice president of retail and marketing at Tanishq - a prominent jewellery retail chain owned by Titan Industries feels the sheer price-value equation was so unfriendly to the consumer that the people were now moving back to gold. Gold is far closer to the psyche, ethos and culture of Indians than diamonds. This would have a big impact on growth rates of diamond sales.
Titan Industries’ Eastern Business Manager Dwaipayan Sen said that they had achieved 65 percent growth of overall Titan industries and 71 percent growth of the jewellery division. So they would like to give an opportunity to the customers by offering 20 percent discount on all diamonds sold at Tanishq.
Rajiv Mehta, chief executive officer of diamond manufacturer Dimexon Diamonds Ltd., said that demand for diamonds would increase in double digits for the coming decade. He added that diamonds, as any other luxury product, must be aspirational, it must be something that people need to be seen as a ‘high-end’ luxury product.