The diamond industry has faced a number of challenges in recent years due to the impact of COVID-19 on demand, as well as the constant struggle to maintain market share. Edahn Golan, diamond industry analyst and managing partner at Tenoris, joined TheStreet to discuss how market factors continue to shape the dynamics of the diamond industry.
Full video transcript below:
JD DURKIN: What are some of the biggest challenges currently facing the diamond industry?
EDAHN GOLAN: First of all, we are facing a loss of market share, which in my opinion is a temporary stage. One of the biggest competitors is travel. Traveling is expensive. And sometimes people will still prefer to buy jewelry over traveling. I don't think it's a great alternative. It is not an important alternative. But at the end of the day, I think people will still prefer to travel even if they need to spend less on travel.
And the other element is how to present to the market a product that now has two very different characteristics. One is natural, which will continue to be more expensive with everything it entails. So it's luxury and something we can strive for. And on the other hand, there is something that is theoretically the same, but has a value that depreciates. But buying a larger size is very easy. And that type of clash is a clash that will have to be resolved very clearly in the minds of consumers or you will lose them.
