A leading diamond industry expert has raised concerns over shifting consumer trends, urging retailers to rethink their strategies as lab-grown gems gain popularity.
Paul Zimnisky, a prominent analyst, told JCK Online that the rapid rise of lab-created diamonds is reshaping the market—but may also be creating long-term risks for jewelers.
Sales Shift: Lab-Grown Diamonds on the Rise
Recent data highlights the growing demand for lab-grown diamonds:
- Swarovski reported strong sales growth, fueled by lab-created diamond jewelry.
- A U.S. study found 52% of couples bought engagement rings with lab-grown stones last year.
- Signet Jewelers (owner of Kay, Zales, and Jared) saw a 60% surge in lab-diamond sales across key brands.
- Pandora also noted rising consumer interest in synthetic gems.
However, Signet’s overall sales have dipped, prompting the company to sharpen its marketing distinction between natural and lab-grown diamonds.
“Narrative is Changing,” Warns Analyst
Zimnisky argues that aggressive promotion of lab-grown diamonds could backfire.
- Consumer Confusion: Shoppers often assume “diamond” means natural—only to be steered toward cheaper lab options.
- Price Pressure: Lab-diamond costs are plummeting, squeezing profit margins.
- Brand Risk: Blurring the lines between the two categories may devalue both.
“Salespeople convince guys to spend less for a bigger [lab-grown] diamond, saying they’re dumb if they don’t,” Zimnisky said. “But prices keep falling, hurting revenue.”
Call for Clearer Marketing
The analyst urges retailers to clearly separate natural and lab-grown diamonds to avoid undermining consumer trust:
- Sell One or the Other: Avoid mixing both in the same store or marketing.
- Educate Buyers: Explain key differences (e.g., rarity, pricing, resale value).
- Long-Term Strategy: Lab-grown diamonds may become so abundant that natural stones regain appeal as luxury items.
“The industry is doing itself a disservice by conflating the two,” Zimnisky warned. “It’s not too late to fix this—but we need to act now.”
Deflation Hits the Market
Both natural and lab-grown diamond prices are declining, signaling a broader industry challenge. Zimnisky calls it a “wake-up call” for jewelers to adapt—or risk further erosion of value.
“In five years, lab-grown diamonds will be everywhere,” he predicted. “That’s when the market might swing back to natural.”
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