Forevermark Sees India Contributing 30% Share Of Global Sales

(IDEX Online News) – De Beers expects sales in India of its Forevermark diamond brand to contribute about 30 percent to the firm’s global performance in the coming three to four years. Currently, sales in India account for about 15 percent worldwide sales.

Forevermark entered the Indian market in 2011, and is sold via by more than 150 retailers and wholesalers.

Despite a slump in the Indian economy last year, sales in both value and volume terms grew by 40 percent as Indian consumers have started looking at diamonds as an alternative investment, Forevermark CEO Stephen Lussier told Business Line.

Lussier said the price of Forevermark diamonds was increasing, with a 15 percent jump last year. A further rise is forecast this year, said a diamond trader attending the forum.

Lussier said the brand was expected to sell about 50,000 diamonds this year.

“With the changing roles of Indian women, their buying pattern has also changed,” Lussier said. “Women now want to buy more modern and contemporary jewelry that can go with most of their outfits. This is where diamonds play the role as it is a very versatile commodity.”

Lussier said the brand is also focusing on making India the largest consumer of diamonds after China, the US, Hong Kong and Japan. For this, the company is planning a diamond grading facility in Surat.

“India is already the largest manufacturing and polishing market in the world and this facility, the second in the world after Belgium, will help cut logistics costs and make diamonds more affordable,” he said, adding at present, all grading is done in Belgium.

The facility is expected to have a capacity of 300,000 to 350,000 diamonds a year within four years, and is likely to be operational by the first quarter of 2015.

Forevermark management expects demand for the branded diamonds to grow in smaller Indian towns. The brand is being sold in 19 cities, and is strongest in southern India.