In recent years, as awareness and supply of lab-grown diamonds have surged, these man-made alternatives have presented both challenges and significant opportunities for savvy jewelers. Successfully selling these gems alongside traditionally sourced diamonds requires a delicate touch and strategic planning.
"This is a relatively new category, but it's growing very fast in the bridal and fashion sectors," said Marty Hurwitz, co-founder of MVI Marketing in Austin, Texas. "Retailers, even those initially hesitant about its novelty and unconventional nature, have quickly embraced it, and consumers are naturally asking about it."
Diamond industry analyst Edahn Golan noted that while lab-grown diamonds account for only about 5% of wedding category sales through independent jewelers, this figure reflects astonishing growth—over 40% year-on-year.
"When you look at sales on a store-by-store basis, we find that some stores sell a small amount of lab-grown diamonds, but there are others we call 'super sellers'—where more than 50% of the diamonds they sell are lab-grown," Golan said.
How to Get Started
Experts agree that both types of diamonds can be sold successfully without cannibalizing each other's sales or reducing their perceived value. Achieving this balance requires understanding how to position lab-grown diamonds—not as competitors to mined diamonds, but as a distinct product category, Golan said.
"There is a significant difference between the two," Golan explained. Customers "don’t see them as substitutes for natural diamonds. They see them as a different category."
Calvin's Fine Jewelry, a fixture in Austin since 1997, began selling lab-grown diamonds about four years ago. "It was an easy decision for customers, and we just started competing," said store owner Calvin Smith. "My margins are higher, and it's been a game-changer for my store. I sell 75% more lab-grown diamonds than mined ones." Smith admitted that the popularity of lab-grown diamonds surprised him. "We’re a pretty traditional, old-school family jeweler, and we started with lab-grown diamonds on a whim," said Laura Sipe, co-owner of JC Sipe Jewelers in Indianapolis. "To our surprise, lab-grown diamonds far outsell natural diamonds for first-time engagement ring buyers."
Understanding Different Diamond Customers
While some jewelers across the country report that many walk-in customers are already knowledgeable about lab-grown diamonds and specifically ask for them, success also requires recognizing those customers who may not be familiar with the product but are open to it once educated.
"We make sure they understand that we’ll give them a crash course on diamonds, and we don't have a preference for which one is better—they’re different for different reasons," said Charles Kuba, owner of Iowa Diamond in Des Moines.
Kuba noted that, overall, buyers of lab-grown diamonds tend to be younger, especially when purchasing wedding jewelry. "Many of them are kids graduating college with $100,000 in debt. That’s why they’re living in their parents’ basements. So when someone comes in with a budget and sees that they can maximize that budget, I think that’s why they gravitate so strongly toward lab-grown diamonds."
Young people on a budget are far from the only customers attracted to lab-grown diamonds. Smith noted that lab-grown diamonds are a hot choice for many local customers. "Austin has a lot of tech professionals, and they like something different."
Sipe said that customers with a strong preference for natural diamonds or a clear preference tend to be older and more affluent. The prices of the natural diamonds she sells have increased, as customers who focus on natural diamonds often want unique shapes or larger stones, which can command a premium.
Discussing Value Without Undermining Sales
Lab-grown diamonds are significantly less expensive than natural diamonds, a double-edged sword: It can attract younger customers who want more diamonds for their money, but jewelers are understandably cautious about undermining the value proposition of traditional diamonds.
"The pressing question is how [retailers] sell these without devaluing their mined diamond inventory," Hurwitz said. "The answer is that they need to tell the story of both."
Smith noted that while some customers are influenced by environmental and humanitarian considerations, most of the motivation for choosing lab-grown diamonds is still driven by budget.
"American consumers are very price-sensitive, but you can’t treat your customers like they’re very price-sensitive," Golan said. "You can’t make them feel like they’re being cheap."
Since a significant portion of the lab-grown diamond market is engagement rings, jewelers selling both types of gems report that a successful strategy is to start with mined diamonds and then show shoppers what size and quality of lab-grown diamonds they could get for the same money.
"We don’t use lab-grown diamonds just to meet a price point," Sipe said. "We try to offer the consumer a better, more beautiful diamond"—and size matters, she added. "Suppose your budget is $10,000. You could buy a beautiful 1-carat mined diamond, or with the same money, you could get a nearly identical 2-carat lab-grown diamond."
Smith said that showing customers the difference between the two diamonds is often the key to closing the sale. "Once we start showing them the larger diamonds, we start with mined diamonds," he said. "Then we ask if they want to see a bigger, better diamond—for the same price. Most customers are interested. When they see how much of a size and quality upgrade they can get with a lab-grown diamond," he said, "they look amazed."
Retailers also have strategies to avoid a common sticking point: resale value. For customers spending thousands on an engagement ring and expecting it to retain value, jewelers find they must be clear about the long-term prospects of lab-grown diamonds—with their virtually limitless supply—are, at best, uncertain.
Jewelers like Smith recommend steering customers away from thinking of the diamond they plan to buy as an investment asset, like stocks or real estate. "We’re very upfront about the resale value of diamonds," he said.
Smith added that his store has a policy designed to incentivize customers to upgrade. "As long as the customer upgrades, we’ll give them 100% trade-in value," he said.
Beyond the Wedding Market
Experts say lab-grown diamonds also have significant potential in the fashion jewelry sector.Sipe noted that after buying an engagement ring, the natural next step for customers is to purchase diamond studs. "The big draw with diamond studs is how big they look on the ear, and with lab-grown diamonds, you can get a total weight of 2 carats instead of 1 carat."
Sipe said diamond bracelets featuring lab-grown stones are also popular. The lower price of lab-grown diamonds makes such coveted items affordable for younger consumers, whereas mined diamonds would be out of reach for them.
Lab-grown diamonds also have a bright future in branded fashion jewelry. In May, Pandora launched its lab-grown diamond collection called Pandora Brilliance and announced that it would no longer use mined diamonds, touting the sustainability and value proposition of lab-grown gems. (The company stated that the collection debuted in the UK and would expand to "other key markets" next year.)
Golan predicted that promoting and selling lab-grown diamonds within the context of strong branding will be critical to the development of this mature market. "I strongly believe the future of lab-grown diamonds lies in branding," he said. "I think if you want to sell something beautiful and succeed long-term, you need to build a brand."
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