Why is there a possibility of a cliff like collapse in China's diamond industry?

Many diamond producers in China have been feeling a bit cold about this issue recently. Why were industry professionals still enthusiastic and enthusiastic a quarter ago? Why did previous Indian rough diamond buyers suddenly stop purchasing?

My humble opinion is as follows:

1. The demand for the main global diamond consumer market has been changing since early 2023, becoming more diversified; However, the mainstream consumer demand is still large, irregular, and multi-colored. As an industrial manufacturer, Chinese manufacturers, due to their limited involvement in the consumer market and lack of in-depth research on the consumer market, have realized that their product structure has not been adjusted in a timely manner, which is one of the problems

2. The mainstream diamond cultivation production method in China is HTHP, with products mostly less than 2 carats in color, which is relatively single and not rich enough, and does not meet the consumption needs of the main market in the United States. CVD's technology has not improved, following HTHP to produce repetitive products

3. The original product underwriting model has hindered the market-oriented development of cultivating diamonds in China. Most manufacturers have little insight into the consumer market, and the underwriting model allows them to focus more on production without looking up to the sky.

4. India's cultivation of diamond producers not only has the traditional advantage of cutting and polishing, but also has started a large number of CVD production. By digesting its current HTHP inventory, it is inevitable that it will no longer purchase a large number of Chinese products

5. Most diamond producers in China still view the cultivation of the diamond market through the concept of industrial products, rather than formulating the production product structure based on the concept of jewelry consumption market. This leads to a reverse trend of industrial marketization, which inevitably leads to a large amount of inventory backlog and stagnant capital flow

Based on the above rough analysis, it is suggested that China's cultivation of diamond producers should first establish the positioning of cultivating diamonds as jewelry grade diamonds, which means utilizing the technological advantages of cultivating diamonds to produce products suitable for the jewelry consumption market. Especially in response to changes in demand in the North American consumer market in the United States. Secondly, the overall industry needs to strengthen the production process of cutting, processing, and polishing, otherwise it will still be constrained by India. Thirdly, improve CVD production technology capabilities as soon as possible, producing large carat, irregular, multi-color products, and jewelry grade diamonds! Fourthly, establish a trade channel that directly connects to the mainstream jewelry consumption market, such as eboooom.com, the world's largest customized e-commerce platform for cultivating diamond bare diamonds, and independently control the trade channel. Only by achieving the above five points as soon as possible can we quickly improve China's industry chain for cultivating diamonds in the jewelry consumption market. Otherwise, this industrial decline will soon be overturned by India, which already has industrial advantages in China!