Gems market grows 15pc

Photo: Alexbrn

The precious gems and jewellery market is set to grow 15 per cent in the 2014-2015 year, according to new research. The report, published by Transparency Market Research, says that sector is growing to be worth $6.38 billion.

China and India are the leading consumer markets in Asia, highlights the report (the two also lead processing of stones), which attributes their dominance to the rising popularity of ornaments during ceremonies. Consumers are gradually moving away from traditional unorganized jewelers to branded products, as buyers seek to avoid inferior or counterfeit products.

As well as their ceremonial significance, precious stones and metals are also purchased as luxury items around the world, which has also increased thanks to rising income levels among consumers.

To encourage this trend, major brands are spending large sums of money on marketing and advertising campaigns, creating "heightened awareness about the organized retail jewelry market among consumers".

"This has also improved the perception of jewelry as a luxurious gift item in Asian countries," notes the report.

With easy finance schemes offered by sellers, even those unable to afford indulging in jewellery purchases are succuming to the market's pull

The report ("Gems And Jewellery Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019") also highlights a number of challenges that are expected to provide an obstacle to growth, from rising labour costs and the habit of Indian consumers to buy gold and gems from unorganized retailers.

Last week, a 100-carat diamond sold at a Sotheby's auction for just over $22 million, beating its lowest price estimate of $19 million.