Lab-grown diamonds and natural diamonds must be marketed as distinctly different products to protect the jewelry industry’s integrity, according to Gaetano Cavalieri, president of the World Jewellery Confederation (CIBJO). Speaking at the 2024 Global Gems and Jewellery Development Conference in Hainan, China, Cavalieri highlighted the harm current lab-grown marketing strategies have inflicted on consumer trust.
“The decision to compare lab-grown diamond prices with those of natural diamonds might have benefited lab-grown producers initially. However, this approach has turned out to be a significant long-term mistake,” Cavalieri said.
He noted that jewelry sales, particularly diamond jewelry, have seen sharp declines worldwide. Cavalieri attributed much of this downturn to the rise of lab-grown diamonds, which have disrupted traditional market dynamics.
The issue has become more complex in recent years due to the falling production costs of lab-grown diamonds. This cost reduction has further intensified competition and created confusion among consumers.
“It should have been clear from the start that natural diamonds and manufactured diamonds operate under different economic principles,” Cavalieri explained. “Natural diamonds have a finite supply, while lab-grown diamonds can be produced without limits. When the two were conflated and negative marketing tactics were used to compare them, trust in both categories eroded.”
Cavalieri emphasized the need for transparent branding that differentiates lab-grown diamonds from natural ones. He warned that continuing to blur the lines between the two risks further damaging consumer confidence and the jewelry market as a whole.
The jewelry industry faces an urgent challenge to rebuild trust and educate consumers on the distinct qualities of natural and lab-grown diamonds, Cavalieri concluded.
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