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Diamond Conflict | De Beers vs. The Synthetics

Sounds like a fifties band dance off, doesn’t it? But in reality, the competition between natural diamonds and their alternatives is rising as the consumer shift continues towards the latter. As the fear lies in the idea that, with advanced science, companies manufacturing diamond simulants will pose a threat to diamond producing and exporting countries. Particularly if the laboratory-made diamonds continue gaining popularity, which will force trade in the world’s most expensive gemstone to falter.

Just 10 years ago, research showed that 96% of women want natural mined diamonds.  A decade ago, survey reports summaries indicated that consumers thought that “synthetics do not enshrine core human values and emotions”—whatever that means.  This sounds like it was written by the marketing department for a large diamond jewelry chain or perhaps DeBeers, not something that an average jewelry buyer would say.  Nevertheless, semantics aside, there has been a dramatic consumer shift towards diamond alternatives.

Today’s surveys have revealed that only 52% of women want the “real thing”.  Consumers are opting for less expensive diamond simulants, and have deep growing concerns about conflict/blood diamonds, the exploitation of child slave labor in India’s diamond cutting operations.  Moreover, consumers are sick and tired of the DeBeers Diamond Cartel using its monopoly position to inflate prices …

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    • This entry was posted on Thursday, May 25, 2006 at 10:37 am. You can follow any responses to this entry through the RSS 2.0 feed. You can also leave a response or trackback from your own site.

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