Lab-GrownAug 16, 2022
Pandora’s Lab-Grown Diamond Line Heads to the U.S.Lab-GrownAug 22, 2022
These Are the Core Consumer Groups Buying Lab-Grown Diamonds
They include millennials of a certain age, women who buy jewelry for themselves, and “upgraders,” according to The MVEye.
More brands are using lab-grown diamonds in jewelry, including Kendra Scott, which recently launched an 11-piece engagement ring collection. The brand is popular with a younger crowd, which represents a huge opportunity for the lab-grown diamond segment, market research firm The MVEye says.
Austin, Texas—Market research firm The MVEye (formerly MVI Marketing) has identified the next generation of lab-grown diamond buyers.
Drawing on recent research, “The MVEye’s Core 3.5 LGD Consumer Segments” outlines the primary groups it says are driving the “explosive global growth” of the lab-grown diamond sector.
The groups identified through the research, as well as suggested communications strategies from the market research firm for each, are as follows.
Segment 1: “In the Know”
Who they are: This group is comprised of 25- to 38-year-old millennials who are already aware of lab-grown diamonds, whether it’s through friends or media. This group includes multiple ethnicities and non-traditional couples.
How retailers can reach them: The MVEye said retailers should focus on sustainability, social responsibility, and the technology behind the stones—offering them knowledge not only on the production process but also the ease of tracking them along the pipeline, co-founder Liz Chatelain said to National Jeweler.
They should also focus on what The MVEye calls the “price-to-value equation,” meaning they should point out to consumers that they can get more for their money with lab-grown diamonds.
After all, consumers are now willing to go over their initial budget to get a bigger and better diamond, Chatelain said.
Segment 2: “In the Dark”
Who they are: This group is comprised of 25- to 38-year-old millennials who haven’t heard of lab-grown diamonds but are easily convinced to learn more, the marketing firm said. This group also includes multiple ethnicities and non-traditional couples.
Chatelain said this is where retailers can have the greatest impact on customers’ buying decisions. She said it is their role to introduce these consumers to lab-grown diamonds, promote the product, and educate consumers about them.
She said retailers have told The MVEye that they introduce lab-grown as an option if the shopper wants a larger, good quality diamond that fits their budget. The conversion rate from an “assumed mine diamond shopper” to a lab-grown consumer can now be as high as 70 percent, she added.
How retailers can reach them: Focus on education and talking about the technology behind lab-grown diamonds as well as, again, the price-to-value equation.
Segment 3: “Upgraders”
Who they are: They are consumers ages 55 and older who are looking to upgrade their engagement rings. They may not already have a lot of knowledge about lab-grown diamonds, but they’re motivated to buy a larger diamond.
How retailers can reach them: This group has been marketed to the least, according to Chatelain.
But they do like to reward themselves, so communications should focus on budget, size, and how the stone is a deserved reward for the lives they have led.
“If retailers could bring that across to them [in ads], saying, ‘OK, it’s time to self-reward,’ that’s how they’re going to go get this group,” Chatelain said. “It’s a great opportunity, especially for independent retailers who really know their market.”
Related stories will be right here …
Drawing on recent research, “The MVEye’s Core 3.5 LGD Consumer Segments” outlines the primary groups it says are driving the “explosive global growth” of the lab-grown diamond sector.
The groups identified through the research, as well as suggested communications strategies from the market research firm for each, are as follows.
Segment 1: “In the Know”
Who they are: This group is comprised of 25- to 38-year-old millennials who are already aware of lab-grown diamonds, whether it’s through friends or media. This group includes multiple ethnicities and non-traditional couples.
How retailers can reach them: The MVEye said retailers should focus on sustainability, social responsibility, and the technology behind the stones—offering them knowledge not only on the production process but also the ease of tracking them along the pipeline, co-founder Liz Chatelain said to National Jeweler.
They should also focus on what The MVEye calls the “price-to-value equation,” meaning they should point out to consumers that they can get more for their money with lab-grown diamonds.
After all, consumers are now willing to go over their initial budget to get a bigger and better diamond, Chatelain said.
Segment 2: “In the Dark”
Who they are: This group is comprised of 25- to 38-year-old millennials who haven’t heard of lab-grown diamonds but are easily convinced to learn more, the marketing firm said. This group also includes multiple ethnicities and non-traditional couples.
Chatelain said this is where retailers can have the greatest impact on customers’ buying decisions. She said it is their role to introduce these consumers to lab-grown diamonds, promote the product, and educate consumers about them.
She said retailers have told The MVEye that they introduce lab-grown as an option if the shopper wants a larger, good quality diamond that fits their budget. The conversion rate from an “assumed mine diamond shopper” to a lab-grown consumer can now be as high as 70 percent, she added.
How retailers can reach them: Focus on education and talking about the technology behind lab-grown diamonds as well as, again, the price-to-value equation.
Segment 3: “Upgraders”
Who they are: They are consumers ages 55 and older who are looking to upgrade their engagement rings. They may not already have a lot of knowledge about lab-grown diamonds, but they’re motivated to buy a larger diamond.
How retailers can reach them: This group has been marketed to the least, according to Chatelain.
But they do like to reward themselves, so communications should focus on budget, size, and how the stone is a deserved reward for the lives they have led.
“If retailers could bring that across to them [in ads], saying, ‘OK, it’s time to self-reward,’ that’s how they’re going to go get this group,” Chatelain said. “It’s a great opportunity, especially for independent retailers who really know their market.”
Segment 3.5: “SPF”
Who they are: “Self-purchasing females” of all ages.
Chatelain said they numbered SPF as 3.5 because there is crossover with the other segments.
How retailers can reach them: Chatelain said the consumer who buys for herself feels good about buying larger diamonds, a trend she believes will play out in items like stud earrings.
Based on The MVEye research, the most successful retailers are expanding into lab-grown diamond jewelry basics, like studs and solitaire pendants.
Other Key Research Findings
The MVEye said these consumers aren’t necessarily all about the digital shopping experience.
They’re interested in special experiences in-store, on social media, and on e-commerce sites, and will pay a premium for it.
For jewelry retailers, this means it’s important to track important client life events, like birthdays or anniversaries, so they can have targeted communications on these occasions and point out products clients might be interested in, making it clear they will cater to them.
“Now to the customer, it’s not about price; it’s about premium service,” she said.
And, interestingly, rather than buying products from stores, they buy from brands, The MVEye’s research found.
The idea of loyalty to a store has shifted to mean loyalty to brands within the store or because of the store’s location, Chatelain said, though she did also note their research shows shopper loyalty is greater for fine jewelers than others.
More on Lab-Grown
The Latest
MajorsDec 24, 2024
Nordstrom Family, Partner to Take Retailer Private in $6B DealMembers of the founding family have partnered with Mexican retail company El Puerto de Liverpool to acquire Nordstrom.
MajorsDec 24, 2024
Boucheron Bets on Las VegasThe brand has opened its second U.S. location in the Fontainebleau resort and casino.
EditorsDec 24, 2024
The Spectrum Jewels I Want to Find Under the Tree Associate Editor Lauren McLemore highlights pieces from the AGTA Spectrum & Cutting Edge Awards she’d be thrilled to unwrap on Christmas.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
SourcingDec 24, 2024
Gemfields to Temporarily Suspend Emerald MiningThe move is one of several cost-cutting measures outlined by the company as it faces a weaker luxury market and other challenges.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New CampaignThe retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald ReportsLab clients have the option to request this addition on their emerald reports.
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
