Tanishq and De Beers Forge Partnership to Market Diamond Jewelry

Nitin Konde, Apoorva Bajj

Sep 2, 2024 — 2 min read

Tanishq and De Beers Forge Partnership to Market Diamond Jewllery

To raise awareness of natural diamond jewelry in India, Tanishq, the country's leading jewelry brand, and De Beers, a multinational diamond major, recently established a strategic alliance. India has surpassed China as the world's second-largest market for diamond jewelry, and the two countries are planning to cash in on this trend.

The United States accounts for half the global demand for diamonds, making it the biggest market. According to experts, China accounts for 10% of diamond demand, while India accounts for 11%. Through the collaboration, Tanishq hopes to bolster sales of diamond jewelry as well. The latter make up thirty percent of the value of its jewelry sales.

The Focus of the Partnership

Tanishq and De Beers are teaming up to raise awareness about the difference between lab-grown and naturally occurring diamonds through marketing campaigns, employee training, and consumer education. Tanishq will continue to employ De Beers' diamond verification technologies as part of the cooperation, and the two companies will also cooperate on testing processes to confirm the authenticity and traceability of diamonds. They will also ink supply arrangements.

According to Ajoy Chawla, CEO of Titan's jewelry division, the low penetration of studded jewelry and rising per capita earnings in the world's most populous country create a significant opportunity for diamonds in India.

Current Diamond Trends in India

According to analysts, the market for diamond studded jewelry in India has been on the rise, even though it only makes up around 13% of the total jewelry market in terms of value. This is likely because younger consumers prefer studded jewelry over gold jewelry. Affordable, on-trend diamond jewelry for daily wear has become a hot commodity, thanks in large part to the proliferation of online-only retailers.

According to industry insiders, organized companies have been very proactive in their joint ventures with designers, releasing collections regularly, and improving their production and quality control skills in the diamond jewelry market.

Top players Tanishq and Kalyan Jewellers have both gotten into the market through acquisitions, with Tanishq purchasing digital companies Candere and Kalyan Jewellers doing the same. These brands have since been removed from sale to establish an "omnichannel" presence and increase revenue.

Rise of the Online Jewellery Market

The online jewelry business in India is currently valued at approximately $1 billion, but experts predict it will grow threefold to $3 billion in the next few years, driven mostly by the demand for diamonds.

Catching on this trend, unlisted jeweler Joyalukkas announced last week that it will establish an e-commerce jewelry brand by FY26 and expand its diamond jewelry counters at all of its locations. In addition, the jeweler mentioned that it aimed to increase diamond jewelry sales from 19% to 24% within the following four years.