The expert announced the transformation of the jewelry market due to cheap diamonds

The growing popularity of grown diamonds is associated with a decrease in their value, a change in perception and an increase in demand from buyers. Ilya Rusyaev, a business consultant and founder of the Rusyaev Club business community, told Izvestia about this on April 20.

According to the expert, the wholesale price of grown stones has decreased by almost 90-96% in recent years, which has made them a mass-market product for retail. In addition, a change in perception has also become an important factor: laboratory diamonds do not differ in their properties from natural diamonds, but they are much cheaper, which reduces the psychological barrier for buyers.

Rusyaev stressed that the additional increase in demand is associated with the opportunity to purchase a larger stone for the same money. In particular, jewelry with grown diamonds is becoming more affordable and occupies an increasing market share.

The expert added that, despite the cost reduction, jewelry companies maintain high margins due to design, brand and product positioning, not just the cost of raw materials. According to him, the market is gradually dividing into two segments.

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"Natural stone will gain a foothold in premium and legacy purchases, where rarity and provenance are valued. The grown one will attract a young audience and the first diamond jewelry," he said.

Rusyaev noted that among the risks is a possible depreciation of the category and postponement of purchases in anticipation of further price reductions. He concluded that success would depend on companies' ability to clearly delineate these segments and build separate sales strategies.

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On April 9, Anna Lisovets, head of the commodity department at 585 Zolotoy, said that laboratory-grown diamonds do not differ from natural diamonds in their physical properties, but they have a different origin and a more affordable price. As the expert noted, natural diamonds are formed in the bowels of the Earth at depths of tens and hundreds of kilometers at high temperatures and pressures. This process takes millions of years, after which the crystals are brought to the surface by volcanic activity, mined and faceted.

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