Business on Lab-Grown Diamonds

DATE: Mar, 3   COMMENTS: 0   AUTHOR: Allan Azarola

New generation customers require new products: more sustainable, social responsible, with reasonable price, good quality and unique design. Therefore, we have new trends in many industries. Luxury business, particulary diamonds jewellery business looks to be very conservative. But we cannot deny the fact that very new tendencies in gemstones market come into life.

New generation customers require new products: more sustainable, social responsible, with reasonable price, good quality and unique design. Therefore, we have new trends in many industries. Luxury business, particulary diamonds jewellery business looks to be very conservative. But we cannot deny the fact that very new tendencies in gemstones market come into life.

2016 was a breakthrough year for diamond industry. Consumers recognized that they have the second choice in diamonds – laboratory-grown diamonds.

According to the Global Diamond Industry Report of BAIN & COMPANY, the current lab-grown polished diamond capacity is estimated at 2 Million Carats. By 2030 they expect the market to grow up to 17 Million carats, if the segment sustains to grow 15% to 20% annually as it happens now.

The report states, that the technology advancements have pushed the lab-grown market into a more competitive position. Production costs of lab-grown diamonds have dropped; retail prices have followed as well. In the past 2 years, the retail price of gem quality laboratory created diamond nearly halved and tends to decrease even further.

Thierry Silber, CEO of MADESTONES, the largest lab-grown diamond distributor in Europe says that many jewellers and retailers he meets are looking for something new, innovative, different, interesting and commercial for their business. More companies and individuals are looking to diversify their businesses and introduce the lab-made diamonds alternative.

Jewelry business require vision, commitment and preparations, as well as trustable vendors of great stones. Diamonds marketing is based on strong emotional components. Besides, they have huge social role.

There are 3 distinct consumer groups who vote for laboratory-grown diamonds:

The budget conscious consumers

They are delighted to discover that the price of colourless laboratory grown diamonds is substantially less than a mined diamond – typically by 40-50%. Coloured diamonds become very interesting as they sell at a small fraction of the price of their natural counterpart.

The consumers who values the environment

They appreciate sustainability and are social responsible. They want to have the luxury that does not have a negative impact on the environment. It is important for them to know the origins and have an assurance that there are no socially irresponsible practices.

The younger consumers

Millennials love technologically advanced products with a story. Lab-grown diamonds are a result of modern technology. They are the perfect marriage between science and social values.

Jewellery business enables entrepreneurial artists and designers to utilize their creativity and create fashion brand, which consistently brings money. At the same time, it remains to be very competitive. It is still incredibly popular market to start business in. Diamond jewellery business requires considerable amount of planning and work to make it a success.

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