In its latest ‘Diamond Insight Flash Report’, De Beers Group has revealed its hopes that consumers will buy diamonds with their unspent holiday funds from 2020.
“Travel spending, wrote De Beers in its third report of this kind, “has been the key competitor to diamond jewellery in recent years, particularly for the millennial share of wallet”.
The latest round of research, conducted among 500 Americans aged 18 and above, found that 44% of consumers had more disposable cash due to the cancellation of travel, dining or other experiences during the year.
When it came to travel specifically, more than two-thirds of those surveyed had cancelled travel plans for 2020 and of those, 55% found themselves with extra money as a result.
In the absence of travel, one in eight consumers said they would instead choose diamonds to mark a special occasion.
The above data was based on research from March, and more recent surveys did suggest that the increase in spending on jewellery was beginning to normalise.
Nearly half (46%) said their jewellery spending was back to normal, with a further 25% expecting it would normalise in the next six months.
Bruce Cleaver, CEO, De Beers Group, said: “As some consumers find themselves with additional discretionary income as a result of spend in other areas such as travel being cancelled, there is potential they will allocate this to alternative purchases, creating something of a unique opportunity for diamonds.
“As a product that can be both experiential and meaningful, diamonds fill the temporary void left by travel in the way few other luxury products can. Diamond marketing themes that highlight these attributes are likely to be particularly well received by consumers who have additional money to spend due to their lack of spend on travel, and are looking to create a special gifting experience this holiday.”