What's Happening?
De Beers, a unit of Anglo American Plc, is focusing on India's affluent class to drive growth in natural diamond demand. The company is opening its fifth and largest 'Forevermark' store in Mumbai, with
plans to expand to 25 outlets nationwide by the end of 2026. Despite global challenges, including weak demand in China and competition from lab-grown diamonds, De Beers sees potential in India's growing luxury market. The company is also navigating structural hurdles such as steep U.S. tariffs affecting India's diamond cutting and polishing industry. De Beers aims to establish a network of 100 stores in India by 2030, targeting smaller cities where new wealth is emerging.
Why It's Important?
De Beers' expansion in India highlights the shifting dynamics in the global diamond market. As traditional markets face economic uncertainties and competition from lab-grown diamonds, India presents a significant opportunity due to its rising affluence and luxury consumption. This move could bolster De Beers' position in the global market, making India its second-largest market after the U.S. The expansion also underscores the importance of adapting to regional market conditions and consumer preferences. The success of this strategy could influence other luxury brands to increase their focus on emerging markets.
What's Next?
De Beers plans to continue its expansion in India, with new stores opening in cities like Chandigarh, Lucknow, and Jaipur. The company is also hopeful for a trade agreement between the U.S. and India, which could alleviate tariff pressures and boost trade flows. As De Beers targets smaller cities, it aims to capitalize on new wealth from entrepreneurship, potentially reshaping consumption patterns in these areas. The company's strategy will likely be closely watched by industry stakeholders as a model for navigating global market challenges.
