DeBeers REPORT 2014

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In addition, mobile usage in China is growing quickly,
with mobile broadband and WiFi penetration rates up
64 per cent and 600 per cent respectively from 2011 to
201344 . Retailers and jewellery brands need therefore
to maintain a strong online presence in China.
Chinese spend abroad has become more important
on a global scale. In the diamond jewellery category,
the average price of pieces acquired abroad is over 50
per cent higher than the average paid at home.
According to McKinsey Consumer and Shopper
Insights, the spend by Chinese tourists on goods,
including jewellery and other luxury items, accounts
for about a third of a total projected spend overseas
in 2014 of US$154 billion. This level of spend was
generated by an estimated 93 million trips abroad in
2013, more than five-fold growth in trips since 2002.
Chinese travel abroad is expected to grow by 13 per
cent annually to reach 135 million trips by 2016.
Overall, the Chinese are reported to represent no
less than 27 per cent of global luxury purchases, with
60 per cent of this figure being conducted abroad45.
It is evident that China presents a huge growth
opportunity for diamonds. But the Chinese consumer
is increasingly sophisticated and discerning. To
succeed, retailers and brands will need to establish
a trusted name, and be prepared to meet the
Chinese consumer’s desire for inspirational and
authentic stories, information and assurance of high-
quality products.
Ms Ji’s elder sister
recommended she go to the
Donghua store. She
thought that the store was
reputable and had a good
selection. Ms Ji went to
Donghua on North
Sichuan Road. There she
noticed the Forevermark
counter and went to see the
products. The salesman
told her that every
Forevermark diamond is
unique and has an
invisible inscription with a
unique number.
Ms Ji didn’t make her
decision at once. She came
back home and had a long
think about the three
diamonds. In the end, she
thought the 75 point ring
offered the best value for
money. The next day,
she went to the store and
bought it.
Ms Ji went to some
jewellery stores on Nanjing
Road, such as
Laofengxiang, Xieruilin
and Laomiaohuangjin,
but none of their products
attracted her. Finally, she
went to the Donghua store
which is located in
Nanjing Road. She went to
the Forevermark counter
and chose a 75 point
diamond solitaire to try.
The salesman gave her
another two (60 points
and 70 points) to compare.
This information about
Forevermark attracted Ms
Ji a lot, so she came back
home and searched for
more information about the
brand. on the Forevermark
website. Here she noticed its
rarity (only one per cent of
diamonds make the
Forevermark grade) and its
responsible sourcing
promise. This gave Ms Ji a
good impression that
Forevermark was a high-
quality product.
Store visits are the most
popular research
channel for Chinese
women. In 2012:
ƒ 56% visited specialist
jewellery stores to view
selections
ƒ 38% visited
department stores.
Within the branded
offer, best value for
money still plays an
important part for the
Chinese consumer.
Chinese consumers shop
around actively – visiting
an average of three
stores before purchase.
Chinese consumers attach
trust to known brands such
as Forevermark. Trust is
the top driver of diamond
jewellery brand
consideration in China.
Ethical sourcing appeals to
consumers as it indicates
the company is more likely
to be honest with them
and to provide a genuinely
high quality product.