December 2021 | Lab Grown Magazine

December 2021 | The Lab Grown Diamond Resource Book 24 To advertise call (888) 832-1109 | December 2021 25 D iamond growers, mining groups, independent gemstone wholesalers and designers noted their surprise and delight to strong diamond demand throughout 2021. The response was echoed, by and large, by agile independent diamond jewelry stores, online and off, in harmony with national chains and every department store with a significant jewelry department. With positive retail sales continuing for lab-grown and natural diamonds, we could easily rehash that news. Instead, we summarized key points, created call-outs and dug deeper to see market indicators and analyst forecasts for diamonds in 2022. We note several oddities specific to today’s diamond demand to help determine how we got here and what we may do to continue on this positive path. For this plan to succeed, you’ll need to use your brain, but not in the conventional sense. We’ll intro- duce you to a tiny part of your mind that you didn’t know existed, and why understanding the basics of this mental reward center will unlock profound con- sumer knowledge. This information will help you to better relate to any consumer experience, and perhaps a slightly better understanding of yourself, too. Below, we review why you should never feel threat- ened by any online diamond company and how any- one anywhere with a single brick-and-mortar jewelry store actually has two locations. I might also mention something that can help in your business: a portable diamond detection item with a purchase price of less than $700. That investment could be a lifeline to current and future consumer diamond trust.The same could be a form of diamond insurance ensuring your grading reports and the stone are a match. And you may do so with what looks like an oversized credit card from the future. Let’s start with comparative wholesale diamond data. The graph is silently asking you to expect and perhaps accept less lab-grown profit in a year or more from now. But, reading between the lines, you’ll un- derstand how pricing adjustments you make at the start of 2022 could box out your competition and give you a winning edge overall. Retail Price Gap: LG is 60% of Natural Charting diamond manufactures’ wholesale prices from January 2020 to September 2021, Edahn Golan illustrates the 60% price gap of wholesale lab-grown (LG) compared to natural diamonds, using Tenoris , a trend analytics group he recently co-founded with in- dustry vet, Chris Casey. Their data was obtained data from 950 U.S. jewelry stores. Citing the rally in natural diamond prices and long-term concern over what is clearly a wide spread between the competing stones, Golan states, “The wholesale section of the LG market is congested. A massive number of traders, most of them in India, are stuck with large inventories and a desire, if not a need, to leave the LGD market behind.” Assuming this is accurate, the India-based com- panies referenced will have to hold massive fire sales starting early in 2022 to rid themselves of what ap- pears to be overload of LG stones. Yet, an interesting story in the Economic Times from August 2021 says, “Export of lab-grown diamonds from India in April-June shot up to Rs 1,918.63 crore from Rs 295.23 crore a year ago. While the US and UK are the major buyers, Australia too has started showing interest in Indian lab-grown diamonds.” For another take, it is worth a look at Paul Zim- nisky’s recent lab-grown report. He offers mul- tiple graphics and predictions and may be read here: www.tinyurl.com/PaulZimnisky Champagne Doesn’t AgeWell Many a bottle of champagne stayed corked in 2021 as “popping the question” was temporarily suspended by many committed couples. When the marriage question is suppressed, so is the need for the diamond ring. This is a temporary situation but will partly af- fect December 2021 and January 2022 bridal sales— expect, however, a mini landslide of engagement ring business by the last week of January. Most people propose (or are proposed to) during an out-of-town getaway or overseas travel, typically ac- crued with paid vacation time from work. But people didn’t take vacations in 2021, if they worked at all. The same logic applies to wedding day celebra- tions. Most “I do” events require a church, temple or synagogue. Only a few months ago, places of wor- ship in the NY-metro area that insisted on staying open for holy services were raided with one temple being boarded-up by federal and local state police! Weddings are about to make a massive comeback, so again, this situation is temporary. Sustainability ruled the headlines throughout 2021 and will remain a top topic in 2022. De Beers recently published a massive survey with thousands of consumers polled on diamond sustainability. The top five concerns are offered here. Two obvious, but seldom called-out benefits, for LGDs are mentioned to keep you in the lead. If you’re an LG producer, reseller or retailer, consider starting a concierge custom service. This could take months, and obviously would be a premium service as with any custom service.Those clients who are ac- customed to paying top dollar for a highly personal- ized shopping experience can be a relationship worth cultivating. Next to bridal, what is the number one bestselling category with every independent retailer coast-to-coast? Custom jewelry orders. Key Retail, Geographic and Jewelry Projections · North America is expected to grow at its highest CAGR from 2021 to 2026. · The Gems and Jewelry Market is expected to grow at a CAGR of 5.2% over the next five years. Below is a deep, guided dive into the real reason why anyone buys anything. For those who read this section, I know you’ll be rethinking how you com- municate with your customer. Moreover, you may have to take a moment of introspection on your own purchasing, gifting and buying habits.This is not a story you would typically read in a year-in-review but you’ll soon see why it is included. No Pictures, Please Enter a well-known social science predictor of outcomes, best-selling author, university professor and a very popular podcaster. Seated in a private alcove at a secluded restaurant, this recognized Ph.D. was joined by four marketing professionals with their own set of questions. I was fortunate to be in that group. While I can’t cite this expert’s name, I will describe his profound social science theory and multi-year study. Much of the knowledge he shared has already proven to be correct as applied to today’s diamond market. Years ago, an enterprising friend created a small social circle called think tank. Local eateries—from a Brooklyn diner to Jean-Georges—served as our meet- ing locations. Every three months, one special guest joins us, someone highly revered since the conversation tends to circle that guest’s area of expertise. The talks are lively but typically confidential.This time, I was al- lowed to spill the beans about this particular discussion, but without mentioning the name of the mastermind behind this theory as well as any subsequent multi- year study groups, comparative brain scans and how all of this directly affects the emotion and the decision- making process of the person doing the buying, not the receiver of the gift ( even when they are the influencer) . The Psychology of theWord SALE To begin, if you’re a retailer, are there any SALE signs in your incase or windows? If so, please remove them. Give this test at least a week. Is there any copy on your website that promotes discounts or sales? If so, place that on hold, too. Again, try it for a week at minimum. Here’s why SALE signs (for higher ticket and luxury items) no longer work as they are intended. One of the world's smallest and most portable loose gemstone readers detects if a diamond is natural or man-made. A small countertop unit allows for diamond scanning in mountings. (Photo: www.tinyurl.com/BrankoGemGear)