De Beers has announced a significant long-term strategic collaboration with Tanishq, India’s largest jewelry retail brand under the Tata Group.
The partnership aims to connect more Indian consumers with natural diamonds, capitalising on India’s recent rise as the second-largest market for natural diamond jewelry.
Market Context and Opportunity
India’s growing economy, a burgeoning middle class, and an increasing number of discerning consumers have contributed to a significant rise in demand for natural diamond jewelry. Currently, Indian consumers account for 11 per cent of global demand, positioning the country as a critical market for the diamond industry. Despite this growth, diamond acquisition rates in India remain below those in more mature markets, such as the United States, presenting a substantial opportunity for further expansion.
The collaboration between Tanishq and De Beers focuses on consumer education and building interest and confidence in natural diamonds. The partnership will also aim to target first-time buyers and expand the customer base across the country.
Strategic Focus and Initiatives
The partnership will focus on several key areas to drive growth in the Indian market:
- Consumer Education and Outreach: Tanishq and De Beers will implement extensive consumer outreach initiatives to deepen the understanding of natural diamonds. This will include educating consumers about authenticity and the inherent value of natural diamonds.
- Retail Staff Training: Tanishq’s retail staff will receive additional training to communicate the value and rarity of natural diamonds to customers.
- Marketing Campaign: A comprehensive 360-degree marketing campaign will be launched to build awareness and engage with a broader customer base, including those purchasing diamonds for the first time.
This collaboration extends the existing relationship between the two companies, with Tanishq already using De Beers’ diamond verification technology. Discussions are also underway regarding further collaboration on traceability and supply chain integrity, as well as additional opportunities to integrate De Beers’ technologies into Tanishq’s operations.
Executive Insights
Sandrine Conseiller, CEO of De Beers Brands, expressed enthusiasm about the collaboration, stating: “India’s love affair with diamonds has flourished over thousands of years, and we are thrilled to partner with Tanishq to unlock the full potential of this vibrant market. Like De Beers, Tanishq recognises the power, preciousness and prestige of natural diamonds and combining our expertise with their deep understanding of the Indian market, we will work together to create something special to connect more Indian consumers to these natural treasures and their enduring value.”
Ajoy Chawla, CEO of the Jewelry Division at Titan Company Limited, highlighted the significant opportunity in the Indian market, noting: “The opportunity in India for diamonds is massive, given the very low penetration of studded jewelry and the rising per capita incomes in the world’s most populous country. Tanishq has been a pioneer in democratising diamond jewelry in the market for three decades and has always targeted the modern progressive woman.”
Implications for the Jewelry Industry
For jewellers, this collaboration between Tanishq and De Beers signals an important shift in the Indian diamond market. As the country continues to rise in global importance for natural diamond jewelry, this partnership could set new industry standards in consumer education, marketing strategies, and retail practices. Jewellers in India may benefit from the increased consumer awareness and demand for natural diamonds, driven by the combined expertise and resources of these two industry leaders. The focus on authenticity and traceability could also prompt other players in the market to enhance their own practices, potentially raising the overall standards within the industry.
