Do Women Prefer Fancy Bags Over Diamonds?
Women of today may not be so old-fashioned anymore to love diamonds and agree to Marilyn Monroes’ song that they are a girl’s best friend. With the advent of technology and social media, fashion is in and diamonds may be out. Women in the new millennium are more dazzled by everything fancy and what’s sexy. Does this mean women prefer fancy bags and savvy gadgets over the glitz of diamonds?
According to a Bloomberg report, “diamonds are losing their allure.” Many consumers prefer trendy options aside from expensive diamonds. The business is suffering as a result.
More people would rather be jetsetting around the world and known as fashionistas than putting their money into a single expensive sparkling light.
Bloomberg says one woman who was looking for wedding ring last month together with her fiancé, said diamonds for an engagement ring and wedding band are still the best. But beyond that, gadgets these days are more accessible.
Diamonds Not so Popular With New Generations?
So what could be the culprit for the declining demand? PolishedPrices.com, a site that tracks the diamond price index, shows they are now less expensive than they were in 2006. Their charts show prices for various sized gems, and they show prices of larger stones declined more sharply than smaller sparklers in the past year.
The demand for luxury jewelry only increased by 1.9 percent each year from 2004 to 2013. Demand for branded beauty products, tobacco and watches, was more than for luxury jewelry. Even though diamonds are less expensive, they are still not so popular with consumers.
People from earlier generations may still prefer them, though. Millennials have other trendy and expensive things in mind.
“A Diamond Is Forever” No More
Diamonds created buzz in the 1940’s due to creation of the powerful slogan “A diamond is forever.” The slogan was successful enough to lure consumers to buy diamonds even at high prices. Diamonds as a luxury item were hyped as Marilyn Monroe sang that they were a girl’s best friend. But that was many years ago now.
Now, the slogan is less unpopular in this new millennium. In fact, it brought about the end of the monopoly held by mine owners such as De Beers. Prices are still dropping, and the painful reality is that industry is failing to maintain the prestige image of diamonds.
Bloomberg says even a former sales director at De Beers acknowledged that they had an easy ride when De Beers had its monopoly.
Ooops … Not all Are Saying Goodbye to Diamonds
This music video of Rihanna performing her song “Diamonds” shows these special gems still have an attraction. As her lyric goes, “Shine bright like a diamond.”
Is it possible Rihanna can regenerate some of that lost allure for millennials, and recover the diamond market, just as Marilyn Monroe did?
Obviously, the diamond business is not dead and buried, because an auction record was made this week. A blue 10.10 carat oval diamond was sold at Sotheby’s for $31.8 million. It was the highest price ever paid for a gemstone at auction in Asia.