Diamond is a unique gemstone. It is hardness, brilliance, and rarity is incomparable. For a long time, the only option to get diamonds was to mine them from the ground. Only in recent years, through advancements in technology, can we grow them above ground. We know them as lab-grown diamonds or man-made diamonds.
To understand how best you can tap the potential of this emerging product segment. It is crucial to know how the consumers perceive lab-grown diamonds and the reasons behind the perception.
Perception
Starting in 2010, only 9% of the consumers knew what lab-grown diamonds are. The number has risen to 51% now.
While the awareness has grown, are lab-grown diamonds positively perceived? A study conducted across six countries answered that question—the 1200 respondents in the survey were divided into two groups. The researchers educated the first group about lab-grown diamonds and the second one not.
When asked if they would consider purchasing lab-grown diamonds, only 24-36% (based on country) responded positively in the group not educated about lab-grown diamonds. In the group that did receive education, 64-72% of respondents expressed the desire to buy lab-grown diamonds.
What this study shows is that when provided with accurate information about lab-grown diamonds. The majority of consumers respond positively to lab-grown diamonds.
Factors Encouraging Positive Perception
What are the factors that drive positive consumer sentiment towards lab-grown diamonds?
Price
Traditionally, diamonds are considered symbols of luxury and wealth. Due to which they have a very high aspirational value. But, they are expensive due to their rarity and the cost of mining them.
While lab-grown diamonds were expensive initially, the prices have come down considerably as manufacturing operations achieve efficiency through scale, making lab-grown diamonds affordable for a wider base of consumers. At the same time, it allows the affluent consumer to buy bigger and better quality stones than lab-grown diamonds.
Ecological Impact
Climate challenges are real; finding solutions to them has become part of everyday conversation. It is shaping public policy and consumer behavior at the same time. No business or industry can afford to ignore climate change concerns.
Mining natural diamonds require a tremendous amount of energy. It leaves a considerable carbon footprint. On the other hand, lab-grown requires much less energy to produce in the first place and, when coupled with renewable energy sources, they are 100% carbon neutral products. The eco-friendly credentials of lab-grown diamonds make them attractive for consumers who hope to stimulate change and prevent harm to the planet through informed product choices.
Choice
We are currently treading when the consumer is informed, educated, and fully aware of the consequences of his purchasing decisions. Several brands have already incorporated lab-grown diamonds in their product line by giving choices to the environment and value-conscious consumers.
With low costs, greater availability, consumers think that lab-grown diamonds can be game-changers in the future. Hence, it is imperative for retailer jewelers today to rethink their product and begin put lab-grown diamonds at the center of their marketing efforts.