Understanding the Relationship Between Cultivated Diamonds and Consumers
AIDI's Perspective on Consumer Insights
- Market Context: There's a saying in the jewelry market: "Jewelry in prosperous times, gold in troubled times." We interpret this as follows: In the global gold and jewelry market, gold is the only asset with financial attributes; it is primarily wealth and money, and secondarily jewelry. In contrast, all other jewelry products are merely adornments. Understanding this, we can better explore the relationship between jewelry and consumers.
- Consumer Demand for Jewelry: The primary demand for purchasing non-gold jewelry is for personal adornment. Due to the "uselessness" of jewelry, meaning it has no practical physical function, all jewelry strives to fulfill emotional needs and sentiments. Understanding this, we can better examine the relationship between cultivated diamonds and consumers.
Characteristics of Cultivated Diamonds:
- Scarcity: Despite being lab-grown, cultivated diamonds face production and energy constraints, making their production not infinitely scalable.
- Quality and Heritage: They retain all the qualities of natural diamonds—stability, beauty, and inheritability.
Consumer Needs for Jewelry:
- Rarity, quality, and inheritability.
- Aesthetic appeal for personal adornment.
- Emotional expression.
- Cost-effectiveness.
- Meeting Consumer Needs: Cultivated diamonds largely meet the essential needs of consumers. The biggest challenge now is to create various application scenarios that stimulate consumers' emotional demands.
Future Opportunities for Cultivated Diamonds
AIDI's Outlook on Future Opportunities for Cultivated Diamonds:
- Emotional Fulfillment: As long as cultivated diamonds address the emotional needs of consumers, they will become a significant force in the jewelry industry, potentially exceeding the current diamond market scale by more than tenfold.
- Historical Precedents: Our confidence is bolstered by two industry transformations:
- From Natural to Cultivated Pearls: Mikimoto became an industry leader by transitioning from natural to cultivated pearls. This story, detailed by our friend Mr. Zhu Guangyu from Diamond Observer, is worth exploring.
- From Natural to Synthetic Crystals: Swarovski became an industry leader by transitioning from natural to synthetic crystals. Here’s a brief overview:
Early Development: During the early 20th century, amidst economic turmoil, Daniel Swarovski capitalized on adverse conditions to innovate. By 1913, Swarovski began mass-producing flawless synthetic crystals, which quickly gained market popularity. Despite challenges like the shortage of machinery and raw materials during World War I, Daniel's invention of an automatic grinding machine in 1917 and subsequent innovations led to significant market success. By the 1920s, Swarovski's crystal products became essential in fashion, used by top brands and Hollywood stars.
Product Line Extension: Swarovski extended its product line to all areas where crystals could be used, from fashion to home décor, and even to optical equipment. The 1976 creation of a crystal mouse as a souvenir for the Winter Olympics marked the start of Swarovski’s renowned "Silver Crystal" collection. Today, Swarovski's success story is rooted in innovation, quality, and adaptability.
- Inspiration and Confidence: These success stories offer valuable lessons for the cultivated diamond industry, encouraging confidence and strategic thinking.
Becoming a New Industry Leader
AIDI's Insights on Becoming a New Industry Leader:
- Market Insight: The ability to understand and anticipate market needs.
- Confidence in the Market: Strong belief in the potential of the market.
- Clear Development Direction and Risk Management: Defined goals and the ability to manage risks.
- Capacity for Self-Criticism: The ability to critique and improve oneself.
- Continuous Learning: Commitment to ongoing education and adaptation.
- Endurance: The ability to withstand the solitude and challenges of leadership.
Potential Industry Leaders
AIDI's View on Future Industry Leaders:
- Potential Candidates: Brands like Pandora are noteworthy. We recommend watching Mr. Zhu's insights on the Diamond Observer channel for more information.
- Versatility: Future leaders may emerge from retail brands, upstream producers, or midstream processors, eventually becoming vertically integrated to guide industry health.
- Emerging Fields: Leadership may arise from:
- Retail Sector: Brands focusing on consumers' emotional needs.
- Upstream Sector: Countries like India are investing in upstream development, leveraging cutting and polishing advantages.
- Strategic Positioning: Upstream companies in China should focus on understanding consumer needs to avoid becoming mere raw material suppliers, as the potential for value-added production is significant.
Association of Intelligent Diamond International (AIDI)
- About AIDI: A registered international non-profit organization based in Melbourne, Australia, AIDI aims to enhance the entire value chain of cultivated diamonds through AI, blockchain, and other advanced technologies.
- Global Presence: AIDI has offices and strategic partnerships worldwide, including in China, Canada, the USA, Thailand, Poland, Germany, and Dubai, to support local members.
- Industry Leadership: AIDI bridges the superhard materials and jewelry sectors, offering cross-industry services to facilitate the transition of traditional superhard materials companies into the jewelry market.
- Committees:
- Creative Center: Develops application scenarios for cultivated diamonds.
- Market and Industry Center: Manages industry information, promotion, and events.
- Technology and Standards: Develops industry standards and technological advancements.
- Legal and Investment: Provides industry fund support and green certification.
For more details, please visit AIDI's official channels or contact us at info@aidi.org.