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China’s diamond market undergoes dramatic recalibration 

 Shifting consumer values and economic headwinds drive transformation

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Once a powerhouse of global luxury demand, China’s diamond market is experiencing a profound transformation, reflecting both changing consumer values and evolving economic realities. Liang Weizhang, CEO of HubWis Jewellery Strategic Creations (Guangzhou) Co., Ltd., provides an in-depth analysis of the latest trends, underlying drivers, and strategic imperatives for the industry.

Market Contraction Signals New Era

According to the Gems & Jewelry Trade Association of China, the diamond market shrank from RMB 100 billion in 2021 to RMB 43 billion in 2024-a 57% drop-while diamonds’ share of the overall jewelry market fell from 14% to 6%. This contraction stands in stark contrast to the sector’s previous rapid expansion, but signals not just a downturn, but a realignment of consumer priorities and market structures.

Jewelry Market Rebalances as Gold Surges

While diamond demand has cooled, gold jewelry has surged, increasing its market share from 58% to 73% between 2021 and 2024. Other segments, such as jade and pearls, have seen volatility. Despite these shifts, the total Chinese jewelry market remains resilient, growing from RMB 720.5 billion in 2021 to RMB 820 billion in 2023, before a modest dip to RMB 778.8 billion in 2024. This underscores a rebalancing across categories rather than a wholesale decline in jewelry demand.

Imports and Prices Reflect Downward Pressure

Customs data reveal a 73% drop in the volume of gem-quality diamond imports between 2021 and 2024, with import values plummeting 83%. Even as the volume of imports fell only 4% year-on-year in 2024, the value declined 40%, indicating significant downward pressure on prices and a shift toward more affordable, differentiated products.

Younger Consumers Drive Value Shift

Millennials and Gen Z are redefining luxury, prioritizing individuality, ethical sourcing, and value. For many, diamonds are now one of many ways to express personal identity rather than the ultimate status symbol. The rapid rise of laboratory-grown diamonds-offering sustainability and affordability-has further diversified the market, challenging the dominance of natural stones.

Macroeconomic and Demographic Factors at Play

China’s moderated GDP growth and declining marriage rates have dampened demand for traditional diamond jewelry, particularly engagement rings. Consumers are increasingly drawn to gold, which offers both adornment and investment value, while diamond brands must work harder to connect emotionally and symbolically with buyers.

Strategic Adjustments for the Future

Industry leaders caution against viewing the contraction as permanent. Instead, they advocate for differentiated offerings, stronger storytelling, and digital engagement. Regional diversity within China presents growth opportunities, especially in emerging cities with distinct consumer profiles. Early signs of stabilization-such as increased activity at the Hong Kong Jewellery Show-offer cautious optimism for a gradual recovery

A Market Redefining Itself

Liang Weizhang concludes: “China’s diamond sector is not in decline, but in the midst of redefinition. Success will depend on how well the industry interprets evolving consumer aspirations and navigates the interplay of tradition, innovation, and value.”

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Education

The New-Age Jewellery Professional: Why Tech Education for Jewellery Industry is the Biggest Growth Driver

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The jewellery industry is no longer defined by craftsmanship alone. Today, it sits at the intersection of design, technology, sustainability, finance, branding, and global trade. As consumer expectations evolve and competition intensifies, structured education and continuous skill development are emerging as the most powerful growth catalysts for the sector.

For a dynamic industry like India’s jewellery market, education is not optional — it is strategic.

From Karigar to Knowledge Professional

For decades, the backbone of the industry has been generational craftsmanship. While this legacy remains invaluable, modern jewellery businesses now demand professionals who understand:

  • Gemology and diamond grading
  • CAD and 3D jewellery design
  • Retail management and consumer psychology
  • Digital marketing and brand storytelling
  • International trade compliance and tariffs
  • ESG and sustainability frameworks

Institutions such as the Gemological Institute of America and the Indian Institute of Gems and Jewellery have played a key role in formalising education pathways, helping transform traditional artisans and retailers into globally competitive professionals.

Trend Watch: Rise of Tech-Integrated Learning

One of the strongest education trends shaping the industry is technology integration.

  • CAD & CAM Training: Digital prototyping reduces costs and speeds up product development cycles.
  • AI in Retail Forecasting: Data-driven inventory planning is replacing intuition-based buying.
  • Blockchain Awareness: Traceability in diamonds and coloured gemstones is becoming a compliance requirement rather than a luxury.
  • Lab-Grown Diamond Expertise: As lab-grown diamonds gain market share, understanding grading, pricing dynamics, and consumer positioning has become critical.

Educational programs now increasingly blend online modules with hands-on workshops, enabling faster upskilling for working professionals.

The Bridal Economy & Consumer Education

India’s bridal jewellery segment continues to drive demand, but the modern bride is informed and research-oriented. She compares:

  • Natural vs lab-grown diamonds
  • Hallmarking standards
  • Ethical sourcing claims
  • Design originality

Retailers who invest in staff education see higher trust conversion rates. Well-trained sales professionals are no longer “salespeople” — they are consultants guiding life-defining purchases.

Financial Literacy in Jewellery

Another emerging area is financial education within the industry itself. With gold functioning as both adornment and asset, professionals must understand:

  • Gold monetisation frameworks
  • Hedging strategies
  • Commodity price cycles
  • Working capital management

Structured knowledge helps businesses move from being inventory-heavy traders to strategically managed enterprises.

Sustainability & Responsible Sourcing

Global buyers increasingly demand proof of ethical sourcing and environmental compliance. Education around responsible mining practices, supply-chain transparency, and ESG reporting is becoming central to export competitiveness.

Industry bodies such as the Gem & Jewellery Export Promotion Council regularly conduct seminars and workshops to align Indian exporters with evolving global standards.

The Future: Hybrid Skills Will Win

The next generation jewellery professional will not be defined by a single skill. The future belongs to those who combine:

  • Design sensibility
  • Technical expertise
  • Business acumen
  • Digital fluency
  • Ethical awareness

For a sector contributing significantly to India’s exports and employment, education is the bridge between heritage and high growth.

Knowledge is the new luxury. As the jewellery industry transitions into a more organised, tech-enabled, and globally integrated ecosystem, continuous learning will determine who leads and who lags. The sparkle of the future will not just come from diamonds — it will come from informed minds shaping the industry.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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