While the diamond industry is anticipated to flourish in the near future based on demand from the U.S., India and China, major retailers are preparing to tweak growth strategies in an effort to meet the demand of the millennial consumer.
Despite the fact that retailers see millennials as key players in the future, a 2016 Diamond Insight report from De Beers indicated that as a whole, millennials in the U.S., China, Japan and India already spent close to $26 billion on diamond jewelry in 2015.
It’s no secret that retail news suggests millennials have different shopping behaviors and product interests and are more tech-savvy than generations before them—all key factors for the diamond industry to consider when putting together their marketing plans for the next several years.
One potential monkey wrench that diamond retailers may face is that millennials are more concerned with the environment and ethics than whether or not a diamond was sourced the traditional way. This sustainable dedication has prompted millennials to become more interested in laboratory-grown diamonds. Along with being more socially responsible, these non-natural rocks are known for having fewer impurities and defects.
Retailers are already preparing for this challenge by instituting the Diamond Producers Association, which has been promoting a “Real is Rare” campaign to bring back the appeal and awe of natural stones. According to many industry professionals, Lab-made rocks should be considered a niche-market, thus going by the theory that there’s something for everyone.