- Natural diamonds have traditionally catered to the top end of the income level, with consumers willing to pay a premium for their rarity and symbolism.
- However, LGD has the potential to be a mass-market product, as it can be produced at a lower cost and marketed as an eco-friendly alternative.
- LGD can appeal to younger consumers who value sustainability and transparency in the products they buy.
- LGD has the potential to be more environmentally friendly than natural diamonds, as it eliminates the need for diamond mining and the associated impacts on the environment.
- However, currently, LGD production is often powered by fossil fuels such as coal, which can result in significant greenhouse gas emissions and environmental impacts. A concept of greenwashing is attributed to lab grown diamond marketers as they claim to be environmentally friendly without subtantiating the facts.
- As technology improves, it is expected that LGD production will become more sustainable and environmentally less hazardrous..
Opportunity for the G&J Industry:
- LGD represents a new opportunity for the G&J industry to diversify their business and increase the market size.
- However, most businesses will need to create separate distinct entities for their natural diamond business and LGD business to avoid confusion in the minds of consumers.
- The G&J industry can use LGD as a way to reach new customers and appeal to changing consumer preferences for sustainability and transparency.
- There is huge potential in the business of LGD as well as LGD studded jewelry. The potential mark ups are high and the market awareness is low. Many new brands have started scaling up their operations on seeing this huge potential. However, brand positioning will matter the most to create a distinct identity to leverage this new potential in the industry.
Knowledge of diamonds and the diamond industry is of paramount importance before diving into the lab grown diamond business. Practical learning about grading, identification and valuation of natural and lab grown diamonds can be undertaken at J K Diamonds Institute of Gems & Jewelry. The Institute has been pioneering and revolutionising gems and jewelry education for more than three decades.