After the De Beers campaign, when was China’s cultivating diamond brand born?

Abstract Since the 1950s, the cultivation of diamonds has officially been born in the laboratory. Most of the domestic and international jewellery industry's attitude towards it is far-reaching, and it is distinguished from natural diamonds by true and false. In the decades-long development, although cultivating diamonds can already reach gem-quality...

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Since the 1950s, the cultivation of diamonds has officially been born in the laboratory. Most of the domestic and international jewellery industry's attitude towards it is far-reaching, and it is distinguished from natural diamonds by true and false. In the decades-old development, although the cultivation of diamonds can reach the level of gemstones, the gap with natural diamonds has narrowed to the level that only the microscope can distinguish, and many jewelry companies still keep the diamonds out.

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On May 29 this year, De Beers, the international natural diamond leading company, officially announced the establishment of the diamond brand Lightbox Jewelry, which officially sells and cultivates diamond jewelry, providing consumers with higher quality diamonds that are cheaper than the current ones. This has made many people in the industry wonder, and since its establishment 130 years ago, it has been firmly consolidating its position as the leading leader of natural diamonds. Why did De Beers, who refused to cultivate diamonds, choose this time node to launch diamonds?

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In fact, this is not an accident. As an internationally renowned jewelry company, Swarovski began to build its diamond brand diama in 2016. Combining diamonds in 18K gold to create a high-end jewellery collection that caters to the new needs of young consumers.

Behind such a tacit business operation as De Beers and Swarovski, what is implied is that the world's nurturing diamond market is expanding. According to analysis by well-known international investment bank Morgan Stanley, 2020 diamond cultivation will occupy 15% of the small-grain diamond market share, and 7.5% of the large-grain diamond market share, the market value will exceed 2 billion US dollars.

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In the context of the growing rise of diamonds, China, as the country with the world's most advanced cultivation technology and the largest cultivation of diamonds, can domestic jewellery companies build a world-leading diamond brand by virtue of raw materials?

De Beers enters the market and cultivates the diamond market to start shuffling

In the pricing rules disclosed by De Beers' cultivating diamond brand Lightbox Jewelry, the company sells diamonds at $800 per carat, which is far below the current price of cultivating diamond distribution centers – more than $1,500 per carat in the Indian market. This also makes the diamond buyers in the global market look forward to the official launch of Lightbox in September this year.

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Lightbox's current pricing system is also very simple and straightforward. Diamonds are irrelevant to color, clarity, cut, etc., depending on weight and style. Only necklaces and studs, silver and 10K gold are priced at $100 and $200, respectively, and the price of jewelry sold by Lightbox is between $300 and $1,000.

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From a marketing perspective, such pricing is very smart. It offers fashion jewellery to the market at a low price. But De Beers is not here, this move puts the price of diamonds in the laboratory in front of the public, and the price of cultivating diamonds is no longer related to the price of natural diamonds, which will also change the atmosphere of the entire diamond market.

We can imagine that if all the diamond factories in India do not have any orders for sale during the three months from June to September, there must be only one outcome, that is, the closure of the goods. At this time, De Beers can take all of India's cultivating diamonds at the lowest price, thus forming a unified market pricing rule and voice.

China's development and cultivation of the advantages of the diamond market

China also has diverse advantages in nurturing diamond market development and brand building.

1. Cultivate technology and raw material advantages

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In the field of synthetic diamond production, as of 2016, China has ranked first in the world for 14 consecutive years. China's synthetic diamond production accounts for more than 90% of the global production of synthetic single crystal diamonds, and the output in 2016 is close to 20 billion carats. This is also attributed to many domestic diamond-cultivating enterprises. Yu Diamond, Yellow River Cyclone, and Zhongnan Diamond are among the most representative listed companies. Their movements are also greatly related to the domestic development of the diamond industry.

2. The rich demand of the consumer market supports market development

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Like the United States, the consumption preferences of young domestic consumers are gradually diversified and enriched. They will not simply decide on materials, but will pay more attention to design aesthetics and cultural trends. From the trend presented by the Chinese consumer market in recent years, we can see that among the young consumer groups, 18K gold jewelry with rich styles and various colors is more popular. This also provides a theme for cultivating diamonds in the domestic market, that is, starting from the trend culture, re-designing and emphasizing emotions to impress young consumers.

3. Cultivating the diamond market is blank, lacking brand

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In a blank market, the first attempted company may be able to establish brand identity and image more quickly. The gap in China's cultivation of the diamond market has also given more opportunities for jewelry companies to enter and try.

4. Cultivate the visual source of diamonds and environmental advantages

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In the current society of civilization progress and ecological progress, the laboratory cultivates the “conflict-free” source and eco-environmental awareness of diamonds, so that it faces the “blood diamond” situation in natural diamonds and the damage caused by mining ore to the natural environment. It has an irrefutable advantage, so although the cultivation of diamonds lacks the strong support of natural diamonds in the rarity of the three elements of gems, it is undeniable that it is beautiful and durable.

China’s brand awareness in cultivating the diamond market needs to be established

Although domestically cultivated diamonds have advantages in terms of raw materials and market potential, they have certain defects in the establishment of brand awareness.

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At the beginning of the cultivation of diamonds, the technology was mastered in some factories that used industrial diamonds. The diamonds produced were all served for aerospace quantum communication, and jewellery was not taken seriously. Moreover, in the view of cultivating diamond production enterprises, the domestic jewellery industry does not have a standardized and supporting promotion system for cultivating diamonds, and prices cannot be controlled. As a result, domestic diamond companies often sell gem-quality diamonds to Indians, and then cut them to Europe, the United States, and even China after cutting.

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In the construction of the industry system for cultivating diamonds, China is also in its infancy. As early as 2016, the United States established the International Association for Cultivating Diamonds, attracting some domestic diamond companies to participate. In the eyes of people of insight in the industry, China is more qualified to capitalize with the capital to establish industry associations that foster diamonds than the United States. We can combine the well-known diamond source enterprises such as Yu Diamond, Zhongnan Diamond, and Yellow River Cyclone, as well as the leading enterprises and brands of diamond sales, to create an industry association, forming a closed loop of the whole industry from production to design to packaging sales.

At this time, what is in front of us is how to land the style, and in the existing jewelry consumer group, the consumer groups like the 90s and 00s have a fashion sense to understand their cultural appeals. And according to continuous innovation and integration, form their own style patents and cutting patents.

Establish a diamond industry standard from the state to the enterprise

No rules no standards. Whether it is for cultivating diamond-source enterprises or for jewellery companies preparing to vigorously develop and cultivate diamond products, it is extremely urgent to improve the standards from the state to the industry to the enterprise.

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From the development plans of diamond-sourced enterprises such as Yu Diamond, Zhongnan Diamond, and Yellow River Cyclone, we can see that they are also very concerned about the development prospects of cultivating diamonds in the jewelry industry. They are faced with the lack of access channels and poor information linkage.

This also makes these sourced state-owned enterprises that cultivate diamonds always hope that jewelry companies can form corporate standards as soon as possible and then rise to industry standards. In this way, they can recommend these standards to the country and rise to the national standard. Only in this way can the certificate of cultivating diamonds be changed from synthetic diamonds to nurturing diamonds in order to achieve grading and more rapid integration into the jewelry industry.

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At the same time, the domestic cultivation of raw materials for diamonds also requires technical research. First of all, it is necessary to develop in the direction of large particles. The use of CVD (Chemical Vapor Deposition) technology is relatively strong in the production of diamonds between one carat and three carats. The comparison of HTHP (high temperature and high pressure) technology in the production of diamonds between one and 50 points. Strong technical features for public relations.

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In the past, relying on India's cutting technology, the country can use the world's artificial gemstone capital - Cangzhou's fully automatic cutting technology. Applying this cutting technology to the processing of cultivating diamonds, we can get rid of the domestic cultivating diamond cutting and relying on the Indian cutting process.

Conclusion

From the perspective of cultivating diamond prices and synthetic technology, from 2005 to 2015, the price of cultivating diamonds has dropped by 50%-70%, and prices are expected to decline even more by 2020. Commercially, the use of bred diamonds in 2014 increased by 400%. The cost of cultivating diamonds is currently only one-fifth to one-third of that of natural diamonds, and this cost gap is expected to expand further in the next few years.

Compared with natural diamonds, cultivating diamonds has the characteristics of environmental protection, safety and low sales price, which enables more people to wear diamonds. This also makes the cultivation of diamond industry have broad development prospects. Baochuangjia Xiaobian also hopes that more and more industry colleagues will put down their prejudice against cultivating diamonds, and operate it as a brand-new jewellery category, and then realize the enrichment and diversification of the jewelry industry and find new ones. The breakthrough point of the enterprise.

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