50% of Russian women cannot afford diamond jewellery

According to Finexpertiza Consulting, the diamond jewellery in today’s Russia accounts for only 15% of the whole market. Another 5% fall at decorations with other gems: rubies, topazes, etc. The greater part of consumers prefers jewellery with semi-precious stones or without them at all.
According to the data provided by Flun Gumerov, President of Almaz-Holding, about one half of sales belongs to “stoneless” decorations, one quarter - to diamond articles and another one quarter – to decorations with other precious and semi-precious stones. However, Arsen Aristakesyan, Choron Diamond owner’s advisor, says, “If statistics is true 50% of women a priori reckon they cannot afford diamond jewellery”.
The price range for high quality jewellery imported from Western countries is rather broad since very often prices are set in an uncivilized manner, for instance by way of increasing it two times as much on their average. At the same time, some part of jewellery decorations is sold two times cheaper but in utterly ill fitted places. Consequently, many potential buyers fearing to pay too much go abroad for their purchases where they hope to find articles produced by some fashionable designer, to buy in a civilized environment and to save their money at the same time. However, experts affirm that the Russian market is notable for a lower mark-up level for jewellery as compared with Europe. According to them, the minimum mark-up securing a profit margin is equal to 30% of the purchase cost.
The experts stress that in recent years the Russian capital has witnessed a stable rise in demand for diamond jewellery. This is connected not only with the growing welfare of people. Russian diamonds are very much valued by wealthy foreign tourists since they are considered the best in the world by their brilliance and faceting. Even some “carbon choked” Russian stone cut according to the 1963 State Standards looks much brighter than a “template-cut” diamond of Israeli make having wonderful specifications. The difference in diamond cutting techniques in the Russian Federation and Israel is that the Israelis cannot afford much diamond waste. In the opinion of the Amico Consulting Company analysts, the overall demand for high quality and expensive articles in Moscow is growing. Today the buyer is favoring the best – by design, quality and trademark standing – and is concerned with the origin of a jewellery decoration. Yulia Nalivkina, Strategy Department Head of Adamas, noted that jewellery articles priced at $500-1500 account for a “very substantial” share of sales of the majority jewellery networks including Adamas, Moscow Jewellery Plant and Centre Yuvelir. Within the uptown “dormitory” districts of Moscow the average sales cheque arrives at 3 000 – 5 000 roubles. In the downtown, for example by the “Kuznetsky Most” or “Kutuzovskaya” metro stations the purchase value may vary from 15 000 up to 60 000 roubles.
Almost all the networks and stores offer discounts to maintain the demand. The traditional holiday periods for sales are The Eighth of March, Saint Valentine's Day and the New Year Eve. As a rule, the discount is 15%, however in the New Year Eve you may come across a 50% discount for a diamond article. In many networks, you may buy a fancy thing at a price cut down for one third if it is your birthday. Very often, in case of purchases starting at 10 000 – 12 000 roubles clients are given certificates for a certain amount as gifts. In this case, they have a possibility to choose a jewellery article at their own convenience. According to a study by Choron Diamond, rings, chains and earrings are the most bought jewellery among Russian women. Correspondingly, these articles are worn by 97%, 91% and 88% of the polled and at the same time, brooches and necklaces are purchased only by 12% and 11% of Russian women. Young girls prefer “lightweighters” – light chains, rings and pendants. Close to their 40s, women take more interest in “heavyweighters” – diamond decorations.
Men wearing jewellery prefer chains. They are worn by 42% of respondents whereas there is actually no demand for traditional men’s wares (cuff links and tie pins), according to Russian Jewellery Network. Yelena Ruban, General Director of OOO Altyn-Service, says that men buy gold cuff links, tie pins, watches, bracelets and chains for their own use. For their women they buy pendants, watches, rings and earrings with gems.
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