September 2020 - Lab Grown Magazine

September 2020 | The Lab Grown Diamond Resource Book 12 To advertise call (888) 832-1109 | September 2020 13 Opposites or Equals? The “Diamonds vs Diamonds” debate begins here. Part One of a Three-Part Series J ust the Facts, Please The words “truth” and “fact” are synonyms. In the scope of a debate, both words are also definitive. Logic, facts and emotional appeal are the elements of any discussion.And when a debate is between two parties with opposite points of view, the side speaking from hard facts is often the most convincing and win- ning side. Yet, this story isn’t about one side winning or losing. You are reading an attempt to com- municate the necessity that both sides win or, unless unity prevails, the realization that both sides may lose. Here, the opposing sides are, of course, lab-grown diamonds and mined diamonds. Sparked by a Forbes article published in July 2020, the original headline (now edited) featured the word “truce”pertaining to mined diamonds versus LGDs. Written by the in- ternationally acclaimed luxury marketing ex- pert and bestselling author, Pamela Danziger, the opening paragraph reads: “In a global market transformed by Covid-19, the lab- grown and mined-diamond industries have called a truce as they now face a common enemy: declining consumer demand.” This Forbes story received double digit views, surpassing most of Danziger’s popular pieces by the same publisher. Online diamond- focused blogs were quick to pick up her story and I was quick to pick up the phone. Confrontational to Conversional Knowing that Danziger was an LGD pro- ponent and an authority on all things luxury and retail, it was important to dig deeper into her truce take while learning about her LDG insights. By Dan Scott Her truce posturing tip of the sword points to the Diamond Producers Association’s (DPA) multi-million-dollar investment in and then cancelation of the “Real is Rare” campaign that seemingly implies that LGDs are not “real.” Recently, the DPA changed its name to the Natural Diamond Council (NDC), leverag- ing the only word that legally and forever separates mined from man-made: Natural . Danziger and other leaders agree that this move appears to be an olive branch of sorts. “The ‘mining guys’ seem to be less confron- tational in terms of their marketing…It’s a big category where we all could be nicer to each other,” said Marty Hurwitz, co-founder of MVI Marketing, a jewelry industry re- search frontrunner. Speaking to Forbes , Richard Garard, Sec- retary General of the International Grown Diamond Association (IGDA) noted that the natural diamond sector’s attitude ap- pears to be swaying from confrontational to conversional. “While in the past, we have seen the disparaging and discrediting of lab- grown diamonds, that tactic really didn’t work for anyone,” Garard stated. “From the mined industry not acknowledging lab-grown dia- monds as ‘diamond,’ to the FTC revisions that made amply clear that there was no scientific difference between the two dia- monds except their origins, lab-grown dia- monds have finally arrived.” Danziger concludes, “Now that the min- ing interests have found a clear and precise message that differentiates its choice from laboratory-produced diamonds and doesn’t undercut or denigrate the emerging category, the entire jewelry industry will benefit from Pamela Danziger’s spark to the fire “truce” story published by Forbes. (Image: Forbes.com) The defunct “Real is Rare” campaign (left) and the new “Only Natural Diamonds” replacement by the Natural Diamond Council (NDC). (Images: NDC) this new spirit of détente.”We’ll be revisiting more of Danziger’s interview in Part Two of this series scheduled for release in October of this year.To read her full February feature, visit: www.tinyurl.com/ForbesEditorsPick. Truce orTurmoil? From the surface view, one might conclude that the natural diamond groups’ newfound marketing position calms decades of efforts protecting their mined assets. A truce, like truth, is conclusive. But many LGD producers don’t believe a truce is evi- dent. There have been no formal conversa- tions or joint press announcements conclud- ing any form of “truce.” Speaking with many LGD producers, diamond jewelry designers and retailers, no one has agreed that there was any change in sight. Some think it will occur, but it will be a slow drip style accep- tance when it’s time to open the flood gates. One jewelry retailer, who wished to re- main anonymous, recently invested in stock- ing LGDs along with his significant natural diamond inventory. “If there’s really a posi- tive attitude shift than where’s the behavioral shift?” he asks. “The mining groups hold the money and the leadership. De Beers is bene- fiting from both sides, but what about all the little guys? Where’s the funding for training? Where’s the co-op? I’d love to see a peace treaty…There isn’t one.” A newly launched LGD grower stated, “I can’t even pay to join a natural diamond group since my business is all lab.” That sounds more like turmoil than a truce. If those married to mining are truly pre- pared to work with lab growers and retail- ers as a family, the industry needs a mutually agreeable plan of action and budget.This can and must occur or the dove of peace will be devoured by the vulture. CautionaryTales This next section illustrates that battles among two industry groups greatly damages both sides. Let’s take the examples of two national metal jewelry market introductions of which I have firsthand experience. First, I managed the global re-emergence of pal- ladium as the Chief Marketing Officer at the Scott Kay brand during its final decade of success. Originally launched by Tiffany in 1939, palladium’s foray into the jewelry mar- ket was short-lived at that time. Fast forward to the last decade, Scott Kay was seen as the perfect poster boy for a re- launch of the white metal. He was a pioneer in platinum and a driver for its awareness in the U.S. designer bridal jewelry market.Who better, then, to continue to sing platinum’s praise while supporting a sister family metal? The plan was simple: platinumwould be for engagement rings, bridal and anniversary ► Note: We reached out to the NDC and the Lab Grown Diamond Council for their input, but neither responded by deadline. Perhaps, we will hear from them before Part Two goes to press.