As the Chinese lab-grown diamond industry looks to expand into global markets, it faces numerous challenges in fundamental marketing preparation. The AIDI International Intelligent Diamond Association’s Industry Marketing Committee has observed that many Chinese lab-grown diamond businesses are not yet ready for these challenges. While the overall lab-grown diamond market in China is still in its early stages, many industry players are transitioning from upstream production to consumer-facing markets. However, these businesses often lack experience in jewelry market operations. Meanwhile, seasoned professionals from the traditional jewelry sector remain cautious about entering the lab-grown diamond market, and the talent pool has not yet fully developed.
This combination of factors has led to a situation where many lab-grown diamond businesses have ambitious plans to enter the consumer market but lack the necessary expertise to execute these plans effectively. The long-term investment required in the jewelry market is vastly different from the quick turnover typical of industrial markets.
Let’s start by analyzing the basics of marketing through the 4Cs framework. The 4Cs in marketing—Consumer, Cost, Convenience, and Communication—were introduced by American marketing expert R.F. Lauterborn in 1990 as an alternative to the traditional 4Ps. This approach emphasizes a customer-centric perspective in marketing, prioritizing consumer needs and satisfaction.
This framework was widely followed by advertising agencies and marketing departments in foreign companies during the 1990s. Despite advances in technology and the rise of internet media, the core principles of marketing remain unchanged—only more refined and in-depth. From this perspective, Chinese lab-grown diamond businesses, whether targeting overseas markets or entering the domestic jewelry consumer market, need to start with foundational marketing work and adopt a long-term approach, moving away from a short-term profit mindset.
Key Steps for Market Preparation:
- Focus on Brand Building: The best approach is to collaborate with professional branding agencies to develop a comprehensive brand manual. This should cover everything from product packaging to flat photography and video production.
- Streamline Product Commercialization: A product alone does not equate to a marketable commodity. Without infusing the product with a commercial identity, consumers are unlikely to engage. Product commercialization is essentially the process of adding value to the product, often through storytelling. For example, terminology for diamond shapes differs significantly between the U.S. and China; aligning with local industry terms is essential for market entry.
- Choose the Right Sales Channels: It’s crucial to identify and select the sales channels that best align with your brand. Ensure that the sales team is well-trained and prepared. Currently, live streaming has not proven to be a successful retail channel for jewelry. Most jewelry sales still occur through traditional retail outlets, where the tactile experience is vital.
- Prioritize Consumer Communication: Effective communication with consumers is more impactful in person than through live streaming or online channels. Small, intensive roadshows may be more effective. Even in the U.S., where online marketing is heavily emphasized, jewelry brands invest in physical showrooms and exhibitions.
In conclusion, this article touches on some of the basic issues we’ve identified during our research into both domestic and international markets. We hope to share insights and foster discussion among industry professionals. If you have questions or wish to engage further, feel free to reach out through the Shangdao Tong platform or email us at info@aidi.org. The AIDI International Intelligent Diamond Association’s Industry Marketing Committee includes seasoned professionals from the global jewelry market, and we look forward to opportunities for face-to-face discussions.