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LGD prices tumble; “green, sustainability” hype is fading out

New 18K Lightweight Designer Brand Launches in Trivandrum, Blending Style, Comfort, and Ethical Luxury

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The man-made diamond boom is over, and prices for ultra-trendy lab-grown diamonds are set to tumble this year, industry veterans say. Paul Zimnisky, a leading diamond analyst, foresees jewellers scaling back their business in lab-grown diamonds while ramping up their focus on natural diamonds over the next year. In fact, most jewellers aren’t even bothering to stock lab-grown diamonds in inventory, and are only purchasing them on consignment, he told Business Insider.

Some of the shine behind lab-grown gems has diminished, largely because they’re so widely available. Lab-grown stones now make up around 20% of the total diamond market, Zimnisky estimates, up from nearly zero percent in 2015.

It’s the exact opposite of what jewellers have seen since 2018, when the hype around lab-grown diamonds took off. “Some of the fad is starting to fade a bit,” Zimnisky said. Retailers now “aggressively” push lab-grown stones. “I think it’s become a lot more mainstream.”

Lab-grown diamond prices, already a fraction of natural diamonds, could see an additional 80% decline, according to industry expert Cormac Kinney, CEO of Diamond Standard. Since their mainstream introduction in 2018, the price gap between lab-grown and natural diamonds has expanded, with some lab-grown diamonds now priced at just 10% of their natural counterparts. Kinney believes there is still significant room for prices to drop, anticipating a further 50% to 80% reduction.

“Fashion jewellery is always a very small fraction of real jewellery. Only real is rare.” He added: “Jewellers will tell me that a growing number of couples are coming in one to three years after buying an engagement ring and replacing it with a natural diamond.”

The hype about LGDs being “green and sustainable” seems to be dying out. Pandora’s CEO Alexander Lacik says consumers don’t buy LGDs because they’re “sustainable”. They buy them because they’re cheap.

Alexander Lacik told Fortune magazine: “When we talk about product choice, there are only two things that actually drive behaviour,” he said. Price and design. “ESG (environmental, social, and corporate governance) is a nice feature and for the people that are interested, we have a good story to tell, but it’s not the driver of the business.”

Gen Zs and millennials may claim they’re driven by environmental concerns, said Lacik, but at the end of the day they want the biggest stone they can get for their budget.

LGDs are mostly produced in factories by machines that require constant power. While there is a substantial range of outcomes depending on where the factory is located, the notion that lab-grown diamonds are “more environmentally friendly” is debatable.

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From Customer Intelligence To Autonomous Growth Intelligence: Deepansh Bhargava Senior Vice President & Head Marketing at VBJ

From Customer Intelligence To AI-powered Growth Decisions, The Next-Gen CDP Is Built To Create Measurable Incremental Value.

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For the last 6 years, Customer Data Platforms have transformed how brands understand their customers. They have brought fragmented data together, created unified customer profiles, enabled segmentation and made personalisation more intelligent. But the next evolution of CDPs will not be defined by how much customer data they can organise. It will be defined by how intelligently AI can convert that data into consumer value and incremental business outcomes.

The shift is from Customer Intelligence to Growth Intelligence.

Businesses today know more about their existing customers than ever before their purchase history, frequency, preferences, lifetime value and likelihood of buying again. Yet the larger opportunity lies in moving beyond what customers did to understanding what they need next, where their behaviour is changing and where the next phase of growth will come from. This also requires a sharper focus on incrementality.

Revenue, ROAS, conversions and engagement tell us what happened. But they do not always tell us how much of that outcome was created because of an intervention and how much would have happened anyway.

That difference is the Delta. AI can help take CDPs beyond systems of customer intelligence and turn them into systems of consumer and commercial decision intelligence. Instead of simply identifying customers with a high propensity to purchase, an intelligent growth system could identify intent, unmet needs and moments that matter then evaluate opportunities across acquisition, retention, frequency, basket size, category penetration, pricing, media, events and geography to identify where the highest incremental growth opportunity lies.

Growth intelligence should also help businesses identify where growth is likely to disappear. Early signals from customer behaviour, categories, geographies or spending patterns could reveal risks long before they become visible in the P&L. AI could identify the source of the risk, estimate its potential commercial impact and recommend interventions to change the trajectory. This is where the future becomes particularly interesting.

AI should not just predict customers. It should increasingly help predict the business.

The next generation of AI agents could continuously monitor customer behaviour, sales, categories, inventory, geographies, media and store performance. They could identify anomalies, form hypotheses, estimate commercial impact, recommend interventions, test them and measure the incremental outcome.

The role of the marketer would evolve from simply managing campaigns to managing the intelligence, strategy and guardrails around a more autonomous growth system.

This evolution can be built around three principles: Anticipate, Act and Account.

1. Anticipate where consumer needs and growth will emerge and where they may disappear.

2. Act by identifying and eventually executing the most relevant intervention for the consumer and the business.

3. Account for whether that intervention genuinely created incremental value.

The CDP of the future, therefore, should move beyond being a platform that simply manages customer data. It should become a Growth Decision Platform one that helps businesses understand consumers better, identify opportunities, detect risks, recommend actions, measure incrementality and continuously learn from every intervention. The ultimate measure of such a platform should not be the volume of data it manages.

It should be much simpler:

Show me the Delta you create.

Because ultimately, consumer centricity is not the opposite of growth. It is where sustainable growth begins.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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