How Lab-Grown Diamonds Are Shaking Consumer Trust in the Jewelry Industry

Lab-Grown Diamonds and Consumer Confidence

Lab-grown diamond companies are marketing their products in ways that could damage consumer confidence in the overall industry, according to CIBJO president Gaetano Cavalieri during his keynote address at the 2024 Global Gems & Jewelry Development Conference in Hainan, China.

Cavalieri stated that the early decision to benchmark laboratory-grown diamond prices against natural diamonds was a critical error. He emphasized that the economic principles governing natural products differ from manufactured products, where there is no production ceiling. This led to a sharp reduction in production overheads as economies of scale were reached.

He further explained that when companies conflate the two types of diamonds and make negative marketing claims about the other, it undermines consumer confidence in both categories. Cavalieri advised that natural and lab-grown diamond producers should disengage and rethink their branding strategies to restore consumer confidence.

Cavalieri stressed the importance of perceived value in luxury products, stating that without consumer confidence, gems like diamonds, rubies, and emeralds become just colorful stones. He urged the industry to clearly brand products in a realistic and positive way to regain trust among consumers.

(photo courtesy of CIBJO)