Millennials spent more than $25 billion on diamond jewellery in 2015
De Beers Group, the world’s leading diamond production company, has announced that millennials aged between 15-34 spent more than US$25 billion on diamond jewellery in 2015, more than any other generation.
This comes from the company’s Diamond Insight Report 2016.
In the four largest markets (US, China, Japan and India), which makes up 73 percent of global diamond jewellery demand, the Millennial generation account for more than half of the total retail value of new diamond jewellery.
This is just over 220million people, and the report outlines that amazingly, this generation is yet to reach its most affluent life stage. That is expected to happen in another 10 years, which means this generation is also one of diamond sector’s largest growth opportunities.
With such a huge figure, there are undoubtedly a number of myths as to why it is so high. De Beers have gone to the effort of making sure those myths are knocked back – the pick of the bunch? Millennials have a different attitude to romance and the romantic significance of diamonds.
Well, take it away De Beers: “Millennials share many of the same views and attitudes to life, love, marriage and family, and lifetime values as older generations, but these manifest themselves later in their lives, as they reach financial maturity later.”
The report also identifies nine fundamental trends that will shape the future of the industry over the next 10 years:
- Global economic growth will continue to be volatalie, with business becoming more highly leveraged, markets interconnexctiong, foreign exchange rates fluctuating and geopolitical instabilitiy increasing.
- AConsumers, particulaty Asian consumers from China and India, will drive positive consumer demand growth. With an increase in international travel, national demand is not strictly restricted to domestic.
- Retiriing and elderly consumers are expected to generate the majority of global urban consumption growth by 2030. An increase in focus on self-expression will see design and branded jewellery continue to increase in relevance. Importantly, consumers are becoming more knowledgable meaning they will push for ethical products more and more
- Global luxury players, such as retail focused on branded diamond jewellery, will be able to differentiate themselves from generic proportions
- Financial challenges will persist, with a tighter grip on lending standards and an increased pressure on outdated and unprofitable business models to be adapted. There will also be a clearer transparency of supply chains through digitalisation, coupled with rigorous professional standards.
- Mines are getting deeper, which means more production is going to come from these costly operations and additional investment from producers will be needed to drive productivity.
- There will be a “relatively stable” and predictable diamond production
- Producing companies will face increased pressure in maximising the value of diamond assets
- And finally, the capacity to produce synthetics for gem applications is likely to continue to expand meaning that over time, production cost and value of synthetics is expected to reduce.
Looking to the future, De Beers state that as with most things – consumer attitudes to diamonds is entirely unpredictable. New demographics and company innovation will have a huge say in the matter as demand could broaden or even shrink.
Visit the De Beers Group website, where you can read the Diamond Insight Report 2016.
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Coal India Secures First-Of-Its-Kind Digital Deal
Coal India Limited (CIL) has appointed Accenture Solutions to digitally transform seven of its open-cast mines as the company strives to improve performance and increase coal production. Accenture is due to lay down digitalisation groundwork until March 2022.
The deal aims to increase coal production by 100 million tonnes (MT) by the end of FY’23. Once the minimum quantity has been surpassed, an agreed sum will be paid to the consultant for every additional sum of coal produced. This success fee will only be paid on the procurement of the minimum assured quantity.
The move will see heavy earth moving machinery (HEMM) fitted with digital sensors to monitor performance efficiency at all levels. Additionally, modern data analytic techniques aim to increase mine productivity and project monitoring through functional system management and effective observation.
An Exciting Venture For Global Mining
CIL, which aims to provide energy security in an environmentally and socially sustainable manner, hopes the move will help transform the entire business of mining operations and ensure higher volumes of coal are acquired at a lower cost.
“This is a first of its kind initiative by the company utilising digitalisation to ramp up coal output,” CIL has said.
A Digital Step Towards Enhanced Performance
Digitalisation is expected to take place at open-cast mines in Kusmunda, Gevra, Dipka of Southern Eastern Coalfields (SECL), Migahi, Jayant, Dudhichua, and Khadia of Northern Coalfields (NCL). Nearly 32% (188 MT) of CIL’s 596 MT output in FY’21 was accounted for by the seven selected mines. However, this new deal is set to see a large increase following the subsequent digital changes due to be made.
“Learning from the outcome and success of this model, we may replicate it in our other large mines,” says CIL, optimistic about the future following the modernisation of their mining.
It is expected that the move will help address roadblocks and guarantee corrective measures are put into place, ensuring the company is able to move forward with its aim of increasing output whilst remaining sustainable and eco-friendly.