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 ๐˜๐—ฒ๐—ฟ๐—บ๐˜€ ๐˜€๐˜‚๐—ฐ๐—ต ๐—ฎ๐˜€ ‘๐—ฆ๐˜‚๐˜€๐˜๐—ฎ๐—ถ๐—ป๐—ฎ๐—ฏ๐—น๐—ฒ’ ๐—ผ๐—ฟ ‘๐—–๐—ต๐—ฒ๐—ฎ๐—ฝ๐—ฒ๐—ฟ ๐—”๐—น๐˜๐—ฒ๐—ฟ๐—ป๐—ฎ๐˜๐—ถ๐˜ƒ๐—ฒ’ ๐˜„๐—ถ๐˜๐—ต ๐—ฎ ๐—น๐—ถ๐—ฏ๐—ฒ๐—ฟ๐—ฎ๐—น ๐—ต๐—ฎ๐—ป๐—ฑ, ๐—ฑ๐—ผ๐—ถ๐—ป๐—ด ๐—น๐—ถ๐˜๐˜๐—น๐—ฒ ๐˜๐—ผ ๐—ฏ๐˜‚๐—ถ๐—น๐—ฑ ๐˜๐—ต๐—ฒ ‘๐——๐—˜๐—ฆ๐—œ๐—ฅ๐—”๐—•๐—œ๐—Ÿ๐—œ๐—ง๐—ฌ’ ๐—ณ๐—ผ๐—ฟ ๐—Ÿ๐—š๐——๐˜€.

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:

๐—Ÿ๐—ผ๐˜„ ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜๐—ถ๐—ป๐—ด ๐—•๐˜‚๐—ฑ๐—ด๐—ฒ๐˜ = ๐—Ÿ๐—ฒ๐˜€๐˜€ ๐—”๐˜„๐—ฎ๐—ฟ๐—ฒ๐—ป๐—ฒ๐˜€๐˜€ = ๐—Ÿ๐—ผ๐˜„๐—ฒ๐—ฟ ๐——๐—ฒ๐—บ๐—ฎ๐—ป๐—ฑ

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)