Consumers are Choosing Lab-Grown Diamonds for Their Price
While the mined diamonds prices are decreasing and the overall demand is slowing down, lab-grown diamonds are staying trendy. Recent reports have shown that the global exports of mined stones fell 21% compared to last year. At the same time, the demand for lab-grown gems is strong, as they’re predicted to account for over 20% of overall diamond sales by the end of 2024. So why do consumers choose man-made diamonds?
More and more retailers are reporting dominant lab-created stone sales. Even the adversaries of man-made diamonds can’t argue with that, with the LGD jewelry accounting for as high as 40% of their sales sometimes. And the early adopters are now reporting that 90% of their custom jewelry works are done with lab-grown stones.“For a lab-grown diamond buyer, it’s all about the price,” said a large jewelry store owner in a recent Instore Magazine article. While the prices for the LGD category are declining, the income for the retailers is a stable one. Moreover, decreasing prices help bring even more customers to the stores!
Where the jeweler sees the disadvantage, the consumer finds a victory. According to some retailers, their customers don’t really care about the price change. What’s important is that they can buy a 3 carat lab diamond for the price of a 1 carat mined one, maybe even less so. “Hands down it’s all about the price. It’s difficult to change their mind from lab to natural”. Not only is it difficult, it is not necessary, as the LGD sale margins are described as “very positive” by most of the jewelry store owners.
However, the rising demand amid the price decline alone is not something that solely has been the reason for the yearly increases in sales and revenues. There are a lot of high-end jewelers who continue to use lab-grown diamonds for exclusive and expensive projects. For example, global brand Unsaid and Swiss brand Loev that sell their patented lab-grown diamond rings for almost $50,000. There’s also a ‘Dream’ necklace set with nearly 75 carats of different man-made diamonds that was sold for $122,000 at the prestigious Ormeley Dinner. For the high-end jewelers, the branding, promotion, and, most importantly, unique design are the things that will keep lab-grown gemstones expensive and desired by the high-end customers. So whether it’s an smart Instagram campaign, or one-of-a-kind jewelry piece, they will continue to double down on that.
There are many ways a jeweler can sell lab-grown diamonds. However, not selling them is clearly not the way anymore. Man-made stones are essential for the retailer's sales, profits and customer satisfaction. LaBrilliante is here to help you increase all of the above at the same time.
