- But company remains cautiously optimistic due to global economic uncertainty
- Notes unusually conservative restocking behaviour of US retailers post-2023 holiday season
- Reports India’s rising diamond jewellery demand in contrast to China’s more lethargic market
GAZETTE REPORTER
De Beers has reported a notable increase in demand during its second sales cycle of 2024, with sales reaching $430 million.
This was announced by Anglo American, the parent company of De Beers, signalling a cautiously optimistic outlook for the diamond industry in the face of ongoing economic challenges.
The CEO of De Beers, Al Cook, expressed satisfaction with the upward trend in rough diamond demand, albeit tempered by the realities of a global economy shadowed by uncertainty, particularly in the United States.
Mixed picture
“I’m pleased to see a further increase in demand for De Beers rough diamonds during the second sales cycle of 2024,” Cook stated. He also noted the conservative restocking behaviour of US retailers following the 2023 holiday season, a period traditionally buoyed by robust consumer spending.
The landscape of diamond consumption shows a mixed picture, with India’s demand for diamond jewellery on the rise, contrasting with a more lethargic market in China.
Cook remains cautiously hopeful about the trajectory of recovery for rough diamond demand, anticipating a gradual rebound over the course of the year.
28 countries
De Beers, with a storied history and a global footprint that spans 28 countries, is a major player in the diamond industry, responsible for the employment of over 20,000 individuals.
The company’s operations in Botswana, Canada, South Africa and Namibia are pivotal to its supply chain, underscoring its international influence and the broad economic implications of its market performance.
The distribution model of De Beers – which is the leading name in diamond exploration, mining, and marketing – is equally noteworthy, with the relocation of its Sightholder Sales team from London to Gaborone, Botswana in 2013 marking a significant shift in its operational strategy.
10,000 distinct categories
This move facilitated closer proximity to key sources of diamond production and a more streamlined sales process. De Beers categorises its rough diamonds into over 10,000 distinct categories, a testament to the complexity and sophistication of the global diamond market.
The company hosts 10 sales events annually known as ‘sights’ where customers, including sightholders and accredited buyers have the opportunity to inspect and select diamonds.
This tiered customer structure allows De Beers to cater for a diverse range of market needs and preferences, from long-term contractual buyers to those with more sporadic purchasing patterns.