How the Diamond Market has Changed over the Years
We have been actively selling diamonds online a while now, and have noticed some observations regarding the trends in evolution of the diamond sector and sales as a whole. In this period we have reached some interesting conclusions about pricing and how the cost-aware consumer of today’s buying patterns have evolved. This post includes all the information related to this subject, including trend evolutions and future expectations.
The Consumer’s Cost-Awareness
The first and most important observation I’ll have to make regarding the diamond buying patterns of consumers is that they have started to be a lot more aware of the price. People are now much more aware of the market value of the precious gemstones they wish to buy and in many cases because of this they are opting to buy online. Online diamond sales have increased significantly every year since it has begun and the main reason for that is the pricing being better. On top of that increasing awareness of online vendors is the main reason that the consumer is now so aware of the actual value.
Because of the awareness of the average consumer in modern times, jewelers are now selling less because they bought most of their diamond stock in a time where the marketplace was not so interconnected yet, and may have paid a higher price for their inventory than if they were to buy it today. This forces many people dealing in diamonds to adapt a policy of selling diamonds for a relatively high price. On top of that, not every jeweler has the proper connections to buy diamonds for his in-store inventory, in matter of fact the majority of the precious gemstone stock in most shops nowadays has passed too many middle men, and the price they ended up paying is significantly higher.
In this aspect online retailers with the proper connections have a significant advantage. The general process is Mine -> Cutter -> Wholesaler -> Consumer. However, the average jeweler has bought his diamonds like this: Mine -> Cutter -> Wholesaler -> Dealer -> Consumer. Every extra step a product makes before reaching the consumer is another person who needs to make a profit in the process adding to the total cost. In many scenarios a diamond has even passed several dealers after the wholesaler, adding even more unneeded costs. This is where we shine: as a consumer, when buying with us you can ensure no extra middle-men are added to the process and save these costs. On top of our operation saving the companies in the middle, we have very low operational costs and are able to sell for prices even cheaper than the largest and cheapest online retailers for much of our selection.
I read a very interesting piece once on the future projections of the diamond and fine jewelry market’s evolution. I forgot exactly who wrote it, but he was a professor specialized in future prediction. In it he stated that in the next 50 years, sales through well known brands, mostly online, will amount to about 90% of the sales. This means many jewelry shops and diamond dealers will go out of business, unless they have a strong online and/or media presence. I can see this trend happening right now: a lot of the retailers are struggling to keep their head above water.
The reason for the shift in sales of these precious goods from physical to online is both company reputation being more easily verifiable and most importantly the fact that online operations have a smaller overhead cost and thus need to make a smaller profit to break even in the case of jewels. In the case of diamonds the online retailers have direct access to the manufacturers and are able save costs for the consumer, this also causes a general shift from the physical retail market to online.
As the trend continues it is becoming more and more pronounced every year: more and more people are switching to buying online with no pressure and no stress in the comforts of their personal zone. It is fair to assume that this trend will, as predicted by many, still continue for many years to come.
It’s an Interconnected, Open World
Whereas not many retailers, wholesalers, sellers of even consumers had knowledge of factories, processors and manufcaturers related to the diamonds & gemstones industry, now the world has become a lot more interconnected. It’s a much smaller world than it used to be, with inventories being shared on the web to often create giant databases of vast stocks consisting of goods being traded by multiple suppliers in the name of a single reselling company. The fact digital times have evolved so much and so many companies are now working together to deliver the most efficient possible working methods has caused the average consumer to have easy access to vast inventories of diamonds and fine jewels of many different varieties, and that’s a beautiful thing. I guess as history has always shown, you either adapt and get with the times, or start lagging behind. At Antwerp Or, no matter how complicated it can be, we will always do our best to follow up with the times and offer our clients the best possible modern product, at the best possible price.
The fact that so many companies are now competing with each other even online, also causes the prices to drop significantly allowing for the average consumer to save a lot of costs. For example, a good reason our project is working out is because due to our low operational costs and high service and logistical efficiency, we are able to offer in many cases unmatched prices that you could not find anywhere else. It’s the beauty of the future.
As always it has been a pleasure writing this post.