Via Seth Godin
A new favorite pastime has been speaking with fine jewelry retailers who are either reluctant or refusing to sell lab grown diamonds, especially for engagement, studs and pendants.
Despite several obvious concerns (dropping price of lab grown, impact on natural sales, reduced average selling price), lab grown is an opportunity for better jewelers to introduce the broadest audience ever to accessible and high quality diamond jewelry. Challenging as this shift has been in the short run, I continue to believe this choice will be good for both the natural and lab grown markets in the long run (as more often than not, they are completely different customers).
At the moment, we are more focused on attrition of existing diamond sales than the opportunity to bring an entirely new aspirational audience into the realm of fine jewelry. Quality diamonds have been out of the reach of many for some time. With lab grown, this is no longer the case. We can now ensure that the next generation of jewelry buyers always have access to a quality offering, no matter what they choose.
The challenge, however, is less about our customers and more about ourselves. As with many affordable alternatives, lab grown is quickly becoming a race to the bottom. As the resale value reaches zero, the value proposition of a lab grown needs to be completely reimagined to help elevate this offering. Unlike natural diamonds, it should focus less on the financial value and more on creating a lasting emotional connection. This is the only way to distinguish the aspirational from the entry level. For example:
An entry level lab grown diamond engagement ring will not include a third party certification.
A $1000 a carat lab grown diamond should include a certification from a lab like IGI or GIA.
An entry level lab grown diamond engagement ring will not include care or insurance.
A $1000 a carat lab grown diamond should be insured for life from a trusted partner like Jewelers Mutual.
An entry level lab grown diamond engagement ring will not offer a trade up.
A $1000 a carat lab grown diamond should include a transformation into a stud or pendant with an upgrade.
An entry level lab grown diamond engagement ring will be mass manufactured.
A $1000 a carat lab grown diamond should be set in a design that is uniquely crafted for each individual.
An entry level lab grown diamond engagement ring will be sold by a mass market retailer.
A $1000 a carat lab grown diamond should include a lifelong relationship with their local jeweler.
Sure, a $1000 a carat might be lofty long term, but it’s worth considering how to elevate an alternative that is not going away (and is only going to continue to grow). Ignoring this shift is certainly an option, but embracing it is an opportunity.
If you are struggling to decide where lab grown fits in your business, take a step back. Rather than making it all about the price of the diamond, consider the true cost of long term quality, service and care that you offer your current customers. Then consider how you can craft a mutually beneficial lab grown diamond experience that introduces your business to an entirely new aspirational audience.