Brands may help to turn around performance, especially in developed markets
Increasing consumer preference for brands is evident in the US from the jump in claimed acquisition of branded engagement rings, from just seven per cent of consumers in 2002 stating that their diamond engagement ring was branded to one-third of consumers in 2013 claiming that this was the case.
By offering brands with a specific positioning, and a story that goes beyond the 4Cs, retailers are able to address consumer needs for emotional engagement, differentiate the product from generic offerings and reinforce the diamond dream. While scale companies are better placed to make the level of investment required to benefit from this growing preference, all retailers have the potential to benefit from this trend.
Branded diamond jewellery can also be an attractive financial proposition for retailers. Successful brands typically command a price premium above generic products.