by Demand for lab grown diamonds is consistently increasing. However, many jewelers want to understand more about the consumer perceptions of lab grown diamonds. A Diamond insight report by De Beers sheds light on the consumer perception of lab grown diamonds and how they buy diamonds.
1. Consumers are aware
The good news is, most people are aware of lab grown diamonds. When they buy diamonds, they do check out lab diamonds. In fact, many consumers do check out the prices and options available when it comes to lab diamonds before making the buying decision. Therefore, jewelers need not spend much time educating the target consumer.
2. Consumers value both differently
According to the same report cited above, consumers do not value lab grown diamonds and natural diamonds in the same way. This fact probably arose because of the lower pricing of lab diamonds. Most consumers who were surveyed for the report stated that they are comfortable buying a jewelry piece for up to $1000. Considering that lab diamonds have become popular recently, the $1000 price point is certainly encouraging. This fact also indicates that the customers are not fully averse to buying the lab diamonds either. It also indicates why the popularity of lab diamonds is certainly increasing.
3. Both categories are differentiated by price
Most consumers, as well as industry participants, believe that eventually, natural diamonds and lab grown diamonds will be differentiated and set apart by price. The difference can be as huge as 40%, depending on the jewelry piece one purchases. With technological advancement, the cost of lab diamonds is set to fall further. With such a large difference, of course, the price point of jewelry incorporating natural diamonds and lab diamonds will go down further.
When the difference between the cost of both options becomes so high, both segments will garner their own set of consumers, which will ensure both retain demand.
4. Consumers are aware of dropping prices
Consumers are also aware of the falling prices of lab grown diamonds. With China slated to increase its production of lab diamonds, chances are the supply will increase exponentially. The increase in supply will surely lower the prices.
Until now, consumers expect the prices to go lower, undoubtedly attracting more consumers to lab diamonds instead of natural ones. Moreover, since the prices are going down sustainably, it is good for the consumers and sellers of lab diamonds.
5. Awareness about the eco-friendliness of lab grown diamonds increasing
A Forbes study concluded that consumers are aware that lab diamonds are a more sustainable choice. The energy required to make lab diamonds is less than the energy required to extract natural diamonds. Overall, the carbon footprint of lab diamonds is much smaller. Consequently, the popularity of lab diamonds is much higher among millennials looking to make more sustainable choices in favor of the environment.
Since millennials’ purchasing power is also increasing, the demand for lab diamonds is slated to increase further.
6. Lab grown diamonds aren’t damaged
The extraction and polishing process of natural diamonds is cumbersome. During this process, many natural diamonds suffer from inclusion or other flaws. When that happens, the value of the diamonds isn’t retained. This problem occurs frequently and is known to the consumers as well.
Many consumers prefer lab diamonds because they believe that these diamonds are perfect and aren’t likely to suffer from these problems. Also, since lab-grown diamonds aren’t aged and don’t need to be extracted from the earth, they are likely to retain their original form without damage. This consumer perception is another reason to fuel the demand for lab diamonds.
7. Consumers prefer larger lab grown diamonds
Lower value of lab diamonds doesn’t necessarily mean bad news for companies like Rare carat diamonds. The reason is there is a perception among consumers that they can buy larger diamonds when going with lab diamonds. It means that the consumers are ready to spend a similar amount of money to ensure that they get a bigger stone. It ideally means that the average selling value of lab diamond jewelry is slated to go beyond $1000 in the very near future.
The consumer perception of lab grown diamonds is certainly a positive one. This is also articulated by the rising demand for lab diamonds. With time, this industry will only grow further leading to more emerging trends, technological advancement and more options available for the consumer.
