Forevermark India grew over 50 per cent for sixth year: Stephen Lussier

Forevermark CEO Stephen Lussier, who is also executive vice-president, marketing, De Beers Group, describes the country as one of its key markets.

Consumer aspirations in smaller cities across India have been at the cornerstone of yet another extraordinary year for De Beers Group’s signature diamond jewellery brand Forevermark, which saw sales shoot up by 50 per cent in 2018, the sixth consecutive year it has achieved such growth rates. The brand also crossed another milestone, selling over 1,00,000 pieces during a calendar year for the first time.

Forevermark CEO Stephen Lussier, who is also executive vice-president, marketing, De Beers Group, describes the country as one of its key markets.

“India now accounts for approximately 10 per cent of our total retail presence worldwide with about 250 doors, but brings in over 25 per cent of our global sales.”

Over the last few years, demand in the metros has been complemented by rapid growth in cities such as Durgapur and Asansol in the East or Tirupati and Thiruvananthapuram in the South. Indian consumers are also opting for quality. “Most of the diamonds we sell are in the smaller 10-20 pointers category. But, over 60 per cent of them are in the higher colours and clarities – DEF colours and VVS clarity,” Lussier says.

Forevermark appears to have bucked the slowdown in jewellery sales across most categories over the last couple of years brought on by fluctuations in exchange rates, the GST and tighter regulations pertaining to cash purchases, a credit crunch following bank scams by some big names in the industry, etc.

In December 2018, Bain & Co reported that though India had a high potential for diamond jewellery growth, “revenues had dropped” during the year. And Russian miner Alrosa said that diamond jewellery sales in India up to Q3FY2018 had declined as a result of low consumer confidence and weakening of the currency.

The diamond cutting and polishing industry has also been facing difficult times over the last year. Exports of cut and polished diamonds over the first ten months of the fiscal have increased by a very marginal 2 per cent to $19.6 billion, while imports of rough have registered a drop of nearly 17 per cent to $12.9 billion, according to figures from the Gem and Jewellery Export Promotion Council.

The De Beers VP says that this has been primarily due to short-term demand-supply dynamics and other factors external to the industry.

“Demand in three of the most important markets for smaller diamonds was hit by exchange rate fluctuations. Turkey was devastated by the drop in currency values and the Middle East was subdued. India too was affected by volatility in the rupee.”

Now, the situation is improving on the back of a relatively good year-end holiday season in the US, the world’s largest market for diamond jewellery. Indications are that early February sales, driven by Valentine’s Day and the New Year season in China, have been positive.

“Demand-supply balance will change further over the next few years as Argyle, the largest mine supplying small rough diamonds for the past couple of decades, is moving to the end of its life cycle.”

Yet, he points out that there is a continuing challenge of “unpredictability”.

“Will the US-China tariff war get worse? Will Brexit finally happen or not? What will the results of the Indian election mean for consumer confidence?” he asks rhetorically while expressing confidence that Forevermark will once again achieve strong double-digit growth in India in 2019, and may even repeat the 50 per cent growth story once again.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com