Train keeps rolling…
What consumers are saying:
“I looked at both lab-grown diamonds and mined and I decided on the lab. I had been told about lab -grown diamonds by a friend. There is no difference other than origin. Now that I know about lab-grown
THE MVEye Consumer Interview December 2023
diamonds, I don’t think I will ever buy a mined diamond again. It’s just not a financially responsible thing to do.”
Retailing:
- Retailers are removing more mined diamond styles and replacing
them with LGD styles. - Retailers are asking vendors to take back mined diamond inventory
so they can replace it with LG D styles and they are meeting strong
resistance. - Vendors are NOT interested in holding any mined diamond
inventory for backstock and/or trying to dispose of it in the
wholesale market. - Vendors will hold LGD backstock inventory for retailers as the sell
thru is fluid and rapid. - The end of the I1-I3 clarity range in mined diamonds is imminent.
- No retailers want to carry I1-I3 clarity any more and no suppliers
want to sell it any more. - LG D prime growers do not grow I1-I3 clarity diamonds and
consumers will be the beneficiary of the permanent elimination of
this clarity range.
Global Markets Escalating:
UK, EU, India, Aus/NZ, UAE are all seeing significant consumer growth.
With 350 million, highly educated, millennial age consumers, India has a
growing population of consumers that are acutely aware of our climate crisis
and expect every product or brand they purchase to be aware of it as well.
“We began selling LGD engagement rings 2 years ago.
Hatton Garden, London Jewellery Retailer
Today they are 80% of our bridal business.”
Supply chain consolidating:
- WD bankruptcy shakes prime growing sector
- Remaining prime growers struggle for cash flow and begin
downstream integration efforts, stepping over wholesalers and
taking back margin - Key segments of LGD product supply chain begin to experience
shortages, including 2 carat fancies - Growing to order becoming the way of the future vs growing for
inventory - Color lab-grown diamonds are in strong demand but still not that
easy to grow - Prime growers are converting some gem chambers to scientific
application growth, as demand for semi-conductor and quantum
computing uses increases - Proprietary diamond cuts, exclusive for specific brands, are
gaining traction
