It seems people have long accepted man-made diamonds and started to perceive them as an ordinary option without any kind of hype. Just a few years ago we could observe a boom in purchasing engagement rings with diamonds and there were no preconditions to a new one. Yet, currently, we have from 60 to 80 % growth in sales if compared to the figures from the previous year. Depending on the month demand for man-made diamond engagement rings varies but it does not drop below 60 %. If the month has no romantic days, the sales are at the lowest growth point – 60% compared to the same month of the last year. If the month has days that are good for a proposal like Saint Valentine’s Day, the sales of engagement rings with man-made diamonds exceed the previous figures by 80%. At the same time, the purchasing volume of engagement rings with natural diamonds declined by around 25 %.
So, what is fostering market growth?
Financial experts and market observers are sure that the price is one of the most obvious reasons to prefer man-made diamonds to their natural analog. Indeed, the prices for these two have reached an incredible point of distancing with a gap of 70 percent. It means that couples can buy an engagement ring with almost twice bigger man-made diamonds than they could afford if choosing natural gems.
Since man-made diamonds are a manufactured product that can be grown in the days in a plasma reactor, mass production is possible, and it allows reducing the initial cost. Natural diamonds are formed over billions of years and mining requires “heavier artillery” to get the diamonds from beneath the Earth’s crust. Moreover, mining is a kind of blind game – one never knows whether the diamonds will be found in that place or the other. Obviously, it does not promote a favorable price-forming condition.
Yet, the trick is in the identical properties. If the market law of “lower price = worse quality” worked here, then the buyers would be ready to pay more. Yet, man-made diamonds and natural gems have identical qualities that are visually indistinguishable and certified on the same standards. When getting the same quality, it is reasonable to choose a lower price.
Yet, retailers are sure that the value of the rings is not only monetary. One of the largest European distributors Madestones is sure that man-made diamonds become popular as people are getting better knowledge about them; consumers are more educated about lab-grown diamonds and, thus, have more trust in them.
Indeed, the issue of origin does not cause any doubts or questions anymore. Almost everyone knows that man-made diamonds are a conflict-free analog of mined diamonds. People are aware of the detrimental effect of mining; they know the nuances of the laboratories’ functioning and growing man-made diamonds. Moreover, the consumers are happy that they can control and influence the growth process. They indeed do this. When choosing diamonds produced in a more sustainable way, the buyers as if telling the others, “Look, here is a safer way of growing man-made diamonds and if you do not implement innovations, we will not buy your product”.
So, sustainability is an additional value of man-made diamonds. Considering the eco-orientation of modern society and the high environmental awareness of the youngest generation, which entered the romantic age, there is no surprise in the coming boom for engagement rings with man-made diamonds.
Yes, the so-called Gen-Z generation has reached the age when it is time to marry. These people love man-made diamonds for their eco-friendliness even more than Millennials. And these people are predicted to have many engagements and weddings in coming years.
It is worth admitting that there is no single reason for the predicted rise in sales of engagement rings with man-made diamonds. Most likely, it is a complex of factors. The formula of popularity looks like “Price + Added value + brand positioning”.
Although we did not mention previously a brand positioning in detail, one can assume how powerful it is just by answering a single question: what product will you buy if choosing between two identical things at the same price, but one is from a famous brand like Pandora, and another has an unknown label?
Like many people, you will choose the branded thing just because the brand empowers any product. Currently, man-made diamonds are a streamline in fashion jewelry and many brands are embracing them.
So, we have three components of the success formula and soon we will see this formula in action.