2 Reasons why the Lab Grown Diamond Industry is Not Growing EXPONENTIALLLY…

During the recent Lab Grown Diamonds Magazine roundtable with Nirav Jogani, a revealing chapter in the book of Lab Grown Diamonds (LGDs) was unraveled.

Nirav said, “The quantum of investment that went into growing LGDs didn’t proportionately extend to their distribution or marketing”.

This sheds light on why the LGD industry, despite its substantial advantages, is growing but not exponentially. From an Indian consumer’s market perspective, LGD Growers are allotting a relatively scanty percentage of their overall budget towards marketing LGDs.

Retail brands are striving to do their part, but budgetary constraints hold them back in building this category.

Plus, the marketing efforts often piggyback on Natural Diamonds, re-using same celebrities who are known to be fans of Natural Diamonds and usage of gimmicky 𝘁𝗲𝗿𝗺𝘀 𝘀𝘂𝗰𝗵 𝗮𝘀 ‘𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲’ 𝗼𝗿 ‘𝗖𝗵𝗲𝗮𝗽𝗲𝗿 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲’ 𝘄𝗶𝘁𝗵 𝗮 𝗹𝗶𝗯𝗲𝗿𝗮𝗹 𝗵𝗮𝗻𝗱, 𝗱𝗼𝗶𝗻𝗴 𝗹𝗶𝘁𝘁𝗹𝗲 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝘁𝗵𝗲 ‘𝗗𝗘𝗦𝗜𝗥𝗔𝗕𝗜𝗟𝗜𝗧𝗬’ 𝗳𝗼𝗿 𝗟𝗚𝗗𝘀.

Faced with the issue of low margins and over-production, the industry stands at a crossroads as far as exponential growth is concerned.

Without equal, if not greater, investment in key areas like distribution and marketing, the LGD industry’s growth will only be a fraction of its potential.

Here’s a simple equation:

𝗟𝗼𝘄 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗕𝘂𝗱𝗴𝗲𝘁 = 𝗟𝗲𝘀𝘀 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 = 𝗟𝗼𝘄𝗲𝗿 𝗗𝗲𝗺𝗮𝗻𝗱

High Production + Subpar Distribution = More Supply + Low Demand due to lack of awareness = Challenges Compounding With Growth

So, the BIG question: Who will take the onus to solve these 2 challenges?

Or let’s ask: Will the industry stakeholders come together to address these challenges?

Will we see some actionable steps in forums like the Lab Grown Diamonds Symposium? (A big hope for the industry)