China and Dubai Fastest Growing Diamond Markets.
The Middle East along with China are the world's fastest growing markets for diamond jewlery, said Guy Leymarie, chief executive of De Beers LV, the retail business unit of South Africa's 118-year-old diamond powerhouse.
"But China does not have so much of the high-end," he said at the first De Beers store in the region that opened recently in the Mall of the Emirates.
"Dubai is interesting because you have a lot of business in the very high-end as people have a lot of money here. And now there is a great deal of business in the $10,000 to $20,000 range that is good for us as well."
In the early years after its founding in 1888, De Beers produced over 90 per cent of the world's diamonds. It is still the world's largest supplier of rough diamonds and coined the four Cs that are now popularly used to determine quality clarity, cut, carat and colour.
Its first jewellery retail outlet in the Middle East, a business it entered in 2002, opened in partnership with Salam International Investments, will help it develop customer relationships that are so important for selling jewlery, Leymarie said.
Rivals Cartier and Tiffany have already been here for some time.
De Beers has plans to open stores in several cities across the GCC, including two this year and another three next year. It currently has 12 stores in London, Paris, New York, Los Angeles, Tokyo, Kyoto and Osaka.
The De Beers range of jewelery includes the classic single-stone and three-stone pieces that make up about 30 per cent of its business. There is then the high-end range, priced at over $50,000 and designer jewellery, which makes up another 30-40 per cent of the business.
The average price of a stone at De Beers is $10,000 but its cheapest rough diamond retails for as little as $350.
Guy Leymarie estimates global diamond sales at $65-$70 billion a year, with demand growing nine to 10 per cent annually. Demand in the Middle East is growing faster and makes up 10 per cent of worldwide sales.
About 85 per cent of global diamond jewelery sales are unbranded and sold by small players while 25 to 30 brands compete for the other 15 per cent of the market.
