The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
De Beers expects any recovery in the beleaguered diamond market to be slow and gradual as the industry continues to suffer from weak economic growth in key markets such as China and the US.
The sector almost came to a complete standstill in the second half of last year as De Beers and Alrosa PJSC — the two biggest miners — all but stopped supplies in a desperate attempt to stem a slump in prices. While those efforts helped the market to pick up a bit, it’s unclear how much appetite trade buyers currently have.
“We see 2024 as a year of recovery,” De Beers chief executive Al Cook said. “We expect that upturn in diamond demand to be gradual rather than sudden.”
The industry has been whipsawed since the start of the pandemic. It was one of the great winners as stuck-at-home shoppers turned to diamond jewellery and other luxury purchases. But demand quickly faded as economies reopened, leaving many in the trade holding excess stock that they had paid too much for.
ADVERTISEMENT
The cooldown rapidly escalated as the crucial US market wobbled under rising inflation. In addition, consumer confidence in key growth market China was hurt by a property crisis, while competition from lab-grown diamonds increased.
By Jennifer Zabasajja and Thomas Biesheuvel
Learn more:
De Beers Cuts Diamond Prices to Revive Sales
De Beers made one of the steepest cuts to its diamond prices in years, as the world’s top producer tries to revive gem sales after the market ground to a halt.
The Swiss watch sector’s slide appears to be more pronounced than the wider luxury slowdown, but industry insiders and analysts urge perspective.
The LVMH-linked firm is betting its $545 million stake in the Italian shoemaker will yield the double-digit returns private equity typically seeks.
The Coach owner’s results will provide another opportunity to stick up for its acquisition of rival Capri. And the Met Gala will do its best to ignore the TikTok ban and labour strife at Conde Nast.
The former CFDA president sat down with BoF founder and editor-in-chief Imran Amed to discuss his remarkable life and career and how big business has changed the fashion industry.