Can Lab-Grown Diamonds Become the Retailers Best Friend Too?
As the ultimate gemstone undergoes a modern day makeover, we take a look into why jewellery retailers should slowly, but surely warm up to the allure of lab grown diamonds in their stores
When it comes to diamonds, rarity and humongous prices have been the expected norm. But now it might slowly become an exception with lab grown diamonds making a silent, yet impactful entry into the consumer’s life. Just to do a short rehash, lab grown diamonds are scientifically and aesthetically similar to naturally mined diamonds. The only difference is that the natural ones are mined from, well, nature while the lab grown ones are carefully manufactured in a laboratory setting.
While there are certain confusions still prevailing amongst people regarding whether or not to perceive lab grown diamonds as ‘real’, the truth of the matter is- it is as real as it gets. And that’s exactly why lab grown diamond jewellery is making its way into the jewellery box of the consumers.
Image Source: Gia.edu
In India, as in anywhere in the world, a retailer makes the decision regarding which jewellery (and gemstone) to showcase depending upon the taste and requirement of the consumer. It is true that a few years ago the audience was inclined towards natural diamonds. However in hindsight, one would realise that it is because naturally mined diamonds were the only choice available. But now the story has changed and new chapters are unfolding with the transformative power of LGDs’.
According to a survey by Beyond 4Cs’, there is a minute gendered division amongst the male and female audience when they go shopping for diamond jewellery. For men, the cost of a diamond takes precedence in the purchase decision for an engagement ring, followed by the design. For women, it’s the design first followed by the carat size, which goes hand-in-hand with cost. And for both men and women, the quality of the diamond comes in third.
Whatever be the reason, one thing that the retailers can be sure about is the fact that lab grown diamonds have the potential and are indeed becoming the go-to choice for the consumers. And that’s because lab grown diamonds provide the variety people are clamouring for. Unlike the pricier natural diamonds, the price-conscious audience can choose from all the different diamond cuts, from rounds to oval and emerald, set in yellow gold, white gold, and rose gold. Similarly, when determining where to shop for a lab-grown diamond that has an engagement ring as the end game, one can easily find all the settings one wishes for– traditional, modern, or vintage-inspired.
The category of LGD is one that has every chance of generating larger revenue for the retailers- when marketed the right way. Currently, a chasm seems to exist between knowledge and acceptance when it comes to lab grown diamonds, especially amongst the Indian audience. There is still scepticism amongst the audience who fall under the category of ‘boomers’ and believe that jewellery is supposed to be costly, an heirloom piece, or at least come with a resale value. But the new audience with purchasing power, the millennials are more inclined towards ethical consumerism- a practice where they can feel good about making a purchase that imbibes the values of eco-consciousness, transparency, and good corporate citizenship.
This is an audience that oscillates between shopping online and seeing something online and going for its first-hand experience to a retail store. And yet this is also a price-conscious generation, one which wants to spend on fine accessories and still have enough money to put aside in order to combat the inflation expenses. For an audience that is looking for viable, fine diamond jewellery, retailers stand to gain a lot by giving them the option of lab grown diamonds; gemstones, which have democratized luxury.
Diamonds are and have never been just a commodity, they have always been an aspiration and with LGDs’ they are becoming a more reachable opulence for those who are willing to shell out money. It holds especially true for couples who want to shop for diamond engagement rings. Earlier a bigger stone meant compromising clarity or colour. But with LGDs’ they have the option to put on a bigger rock on their significant other’s finger without compromising on the other aspects. Such shop-hopping couples usually have their budget as well as their design vision very clearly sorted. LGDs just happen to meet both these criteria.
Diamonds today no longer have to be limited to the red carpet or high society soirees’, they come in different up-to-date designs and more attainable price points, almost becoming a part of ‘T-shirt and Diamond’ era, one which is undoubtedly propelled by the financial accessibility of LGDs, and retailers can surely jump on this bandwagon to reap the maximum benefits. In fact with lab grown diamonds constituting around $22 billion market worldwide, this is the perfect time for the jewellery retailers to give into this segment that is gradually becoming a tempting proposition for the millennials and the ‘recently entered the job-industry Gen Z.’
It’s almost an economic cycle when you look at it via a microscopic lens- LGDs are grown in labs, which means there are no middlemen involved, the jewellery reaches the retailers, the retailer sells, the consumer buys and a majority of the money is exchanged with the retailer only.
There is a chance that purists might defend naturally mined diamonds as meant for the classes while LGDs’ are for the masses (no, we are not taking names here). But isn’t that exactly the sort of class division that retailers can actually bridge? By making LGD jewellery more easily available, they have the opportunity to make diamonds forever and for everyone, while at the same time adding more revenue to their balance sheets, because come on, when diamond is more accessible, wouldn’t everyone want to buy it?
