Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO), addressed the opening session of the 2024 Global Gems and Jewellery Development Conference in Hainan, China, on 19 December, putting forward an argument that conflicts within the industry, particularly concerning laboratory-grown diamonds, have weakened consumer confidence in jewellery.
“The items we sell do not necessarily have inherent value – such is the nature of luxury products,” he said. “They have perceived value, created by the brands, and through cultural and historic associations. If the consumer loses confidence in our products, then their value is discounted.”
Laboratory-Grown Diamonds and Market Challenges
Dr. Cavalieri outlined challenges arising from the parallel growth of the laboratory-grown diamond and natural diamond sectors, noting that tensions have worsened due to the sharp decline in laboratory-grown diamond production costs in recent years.
“The challenge posed to the diamond market by the mass introduction of laboratory-grown goods has never been properly resolved,” he remarked. He pointed to the initial decision to tie laboratory-grown diamond prices to those of natural diamonds as a significant misstep.
“It should always have been apparent that the economic principles governing a natural product, with its finite production ceiling, are different to those of a manufactured product, where there is no production ceiling,” Dr. Cavalieri explained.
He also criticised marketing tactics that drew negative comparisons between the two types of diamonds, arguing that such strategies undermined trust in both categories.
Call for Strategic Rebranding
To rebuild consumer confidence, Dr. Cavalieri suggested both sectors should reassess their branding approaches. “Both the natural diamond sector and the laboratory diamond sector need to disengage and go back to their drawing boards,” he said. “Each needs to clearly brand its product in a realistic and positive way so that consumer confidence will be restored.”
Presentation on Pearl Standards
Later in the day, Dr. Cavalieri delivered a presentation on the development of grading, disclosure, and sustainability standards for pearls, stepping in for CIBJO Vice President Kenneth Scarratt. The presentation focused on establishing clear guidelines for pearl-related practices and enhancing transparency in the industry.
Industry Implications
The address emphasised the importance of industry collaboration and clear messaging to maintain consumer trust. For jewellers, these insights highlight the need to ensure marketing strategies differentiate natural and laboratory-grown products effectively while maintaining transparency and ethical practices.
