In the world of jewellery, natural diamonds have always held a special allure, especially when it comes to weddings and special occasions. However, the landscape is changing as lab-grown diamonds gain popularity due to their significantly lower prices. This shift is creating challenges for diamond retailers who are trying to navigate this changing market while still meeting the demands of their customers.
At K.S. Durlabhji in Jaipur, there is a strong demand for natural diamonds, especially larger stones that are now more affordable compared to last year. While the prices of smaller diamonds have also seen a correction, some of this could be attributed to the rising popularity of lab-grown diamonds. Despite this, many retailers, like Tanishq and Senco Gold, are focusing on creating separate identities for natural and lab-grown diamonds to cater to different consumer preferences.
The sale of natural diamonds saw a slight decline in the June quarter, with consumers being more cautious due to rising prices. However, there has been a resurgence in demand for diamonds, both for wedding and non-wedding jewellery, as prices have become more competitive. While lab-grown diamonds offer a cheaper alternative, the cultural significance of natural diamonds in Indian weddings remains strong.
In Bengaluru, Abaran Timeless Jewellery has seen a growth in their diamond business, with customers showing a preference for natural diamonds over lab-grown stones. Despite the pandemic, the diamond business has been healthy, and retailers are optimistic about the upcoming festive season.
India is a significant player in the global diamond industry, with the country being a hub for cutting and polishing rough diamonds. The demand for natural diamonds is expected to grow, driven by a rising middle class and increased per capita income. While lab-grown diamonds may appeal to newer buyers, established retailers like Kalyan Jewellers are cautious about promoting them due to unstable pricing.
As the diamond market continues to evolve, retailers are adapting to meet the changing demands of consumers. While natural diamonds still hold a special place in the hearts of many, lab-grown diamonds are carving out a niche in the industry. It will be interesting to see how retailers strike a balance between these two offerings in the years to come.