
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 ๐๐ฒ๐ฟ๐บ๐ ๐๐๐ฐ๐ต ๐ฎ๐ ‘๐ฆ๐๐๐๐ฎ๐ถ๐ป๐ฎ๐ฏ๐น๐ฒ’ ๐ผ๐ฟ ‘๐๐ต๐ฒ๐ฎ๐ฝ๐ฒ๐ฟ ๐๐น๐๐ฒ๐ฟ๐ป๐ฎ๐๐ถ๐๐ฒ’ ๐๐ถ๐๐ต ๐ฎ ๐น๐ถ๐ฏ๐ฒ๐ฟ๐ฎ๐น ๐ต๐ฎ๐ป๐ฑ, ๐ฑ๐ผ๐ถ๐ป๐ด ๐น๐ถ๐๐๐น๐ฒ ๐๐ผ ๐ฏ๐๐ถ๐น๐ฑ ๐๐ต๐ฒ ‘๐๐๐ฆ๐๐ฅ๐๐๐๐๐๐ง๐ฌ’ ๐ณ๐ผ๐ฟ ๐๐๐๐.
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:
๐๐ผ๐ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ถ๐ป๐ด ๐๐๐ฑ๐ด๐ฒ๐ = ๐๐ฒ๐๐ ๐๐๐ฎ๐ฟ๐ฒ๐ป๐ฒ๐๐ = ๐๐ผ๐๐ฒ๐ฟ ๐๐ฒ๐บ๐ฎ๐ป๐ฑ
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)
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