De Beers’ brand Forevermark plans to reach 100 retail outlets and $100 million in revenue in India over the next four years. The expansion aims to boost sales of natural diamonds as the global industry faces falling prices and rising competition from cheaper lab-grown alternatives.
De Beers Forevermark is accelerating its retail footprint in India, its second-largest market, to navigate a difficult period for the global natural diamond industry. The company, a subsidiary of the De Beers Group, has set a target to expand to 100 retail outlets and reach $100 million in annual revenue within four years. This strategy shifts the company’s focus from a primarily partner-led model to establishing its own flagship stores, aiming to create a stronger brand identity centered on design and provenance.
Strategic Pivot to Consumer-Facing Retail
As part of this expansion, the brand is targeting younger consumers, specifically those between the ages of 22 and 43, by offering modern, everyday jewelry designs. Mallikarjuna Reddy Yarabolu, Managing Director of Forevermark, recently highlighted this shift during the opening of a new store in Bengaluru. By moving toward flagship retail, the company hopes to build a more direct relationship with Indian buyers, who remain a resilient consumer base for natural diamond jewelry compared to other global markets.
Industry Pressure and Market Challenges
This retail push arrives while the broader natural diamond sector faces significant problems. Demand for natural stones has been sluggish, and inventory levels in the global supply chain remain high. Consequently, De Beers has been forced to reduce prices for rough diamonds, which has directly impacted the company's average realized price per carat. These conditions have led Anglo American, the majority owner of De Beers, to explore options to divest its diamond division.
Competition from Lab-Grown Diamonds
A major factor changing the market is the rise of lab-grown diamonds. These alternatives are becoming increasingly popular due to their significantly lower price points and similarity in appearance to natural stones. This trend is creating intense competition, especially among younger buyers who may prioritize affordability over the traditional value associated with natural diamond rarity. While Forevermark continues to emphasize the authenticity and rarity of natural stones, the rapid growth of the lab-grown segment remains a significant hurdle for traditional diamond producers.
Future Monitorables for Investors
Investors and market watchers will likely track how effectively Forevermark can balance its high-cost retail expansion with the current pricing pressure on natural diamonds. The ability to maintain profit margins while competing with lower-priced lab-grown alternatives will be essential. Additionally, the progress of the potential divestment of the De Beers business by Anglo American will be a key event to watch, as it could signal major changes in the ownership and future strategy of the diamond giant.