MVEye revealed LGD report!
MVI Marketing LLC (The MVEye), the leader in market research for the global gem, jewelry and watch industries, announced the completion of its 2020 Lab-Grown Diamond Consumer and Trade Market Research Report entitled Gaining Critical Mass.
The report, presented at a live, interactive webinar event on 29 October 2020, is the result of comprehensive, quantitative online studies and video interviews with consumers, along with one on one evaluation of jewelry retailers.
As an industry, Hurwitz advocates that jewelers remember they’re in the love and emotions business. “It doesn’t matter what consumers have assigned that emotion to, jewelers have to make a profit on it; that’s the goal. Hanging on to one product that sells love may not be a good idea. Present consumers with a choice, present both mined and lab-grown diamonds, and make money with the products they value and see as love. Let them choose.”
Key findings revealed in the report include,
1: 80% of jewelry consumers in 2020 have heard about lab-grown diamonds, up from 58% in 2018.
2: 69% of jewelry consumers in 2020 knew of brands using lab-grown diamonds, up from 49% in 2018.
3: 62% of lab-grown diamond retailers report that 5-50% of diamond customers ask about lab-grown diamonds &
4: Consumer desire for 2-3ct centers is up 10% in 2 years.
Jewelry consumers are asking for lab-grown diamonds, and they also expect the product to be among the fine jewelry offerings where they shop. Eight percent of the 1,027 jewelry consumers surveyed said that not only were they aware of lab-grown diamonds, they actually own or have purchased lab-grown diamonds.
Consumers are most drawn to the size-to-value equation. Shopping with a budget in mind, as most consumers do, when shown both mined and lab-grown diamonds, the bigger stone of the same quality in lab-grown diamond appears to be the winning proposition for most couples getting engaged. Eco-friendliness is the icing on their diamond cake, especially for Millennials.
Jewelers who successfully sell lab-grown diamonds report a closing ratio of 60% to 80% once customers learn about the product. There are now an estimated 38% of independent retailers in the U.S. offering LGD in-store and/or online. THE MVEye forecasts that, by Holiday 2020, more than 50% of independent jewelers will be on board.
A majority of LGD retailers surveyed (61%) expressed extreme satisfaction with the decision to stock and promote this product category. Nearly all (95%) of LGD retailers in the survey report better margins with lab-grown diamonds with 78% reporting LGD margins of 16% to over 40% better than mined diamonds.