“Lab-grown diamonds are undeniably the future, but they will not replace natural diamonds” – Pratik Dugar

– Pratik Dugar, Director, Indian Gem & Jewellery Creation, and Espera Lab-grown Diamonds

As the Director of Indian Gem & Jewellery Creation, a legacy fine jewellery brand, I have witnessed firsthand the evolution of the diamond market. Recently, I ventured into the lab-grown diamond sector with our new brand, Espera. This decision was made after thoughtful consideration, but it was time to venture into a segment catering to a mass market. Having said that, lab-grown diamonds are undeniably the future, but they will not replace natural diamonds.

“Lab-grown diamonds are not just a passing trend; they represent a unique category within the jewellery market. As an industry, we should remember that before lab-grown diamonds, many other stones, like Zircon, Swarovski, AD, etc., came into the market, and now they have a different customer base”

– Pratik Dugar, Director, Indian Gem & Jewellery Creation, and Espera Lab-grown Diamonds

Lab-grown diamonds are not just a passing trend; they represent a unique category within the jewellery market. As an industry, we should remember that before lab-grown diamonds, many other stones, like Zircon, Swarovski, AD, etc., came into the market, and now they have a different customer base. Today, Swarovski is a well-known brand. Similar to how these crystals have their niches, lab-grown diamonds while sharing the same physical and chemical properties as natural diamonds, will carve out their market in the future. Natural diamonds possess an intrinsic rarity and appeal that cannot be replicated. They symbolise luxury, tradition, and a connection to the Earth’s natural processes, which is why they will always be invaluable, as they are rare.

We have seen a significant shift in our customer base, with millennials and Gen Z leading the charge. These people love to travel, seek new experiences, and want to own a beautiful diamond without breaking the bank. The mid-mass market, including those looking for engagement rings, is especially drawn to lab-grown diamonds. Many customers aspire to buy natural diamonds, but the high cost can be prohibitive. Lab-grown diamonds offer them a way to achieve their dreams at a reasonable price. This new generation is also very environmentally conscious, and the eco-friendly nature of lab-grown diamonds appeals to their values. We have seen a lot of changes from inquiries to sales because of these factors.

It is also worth mentioning that Indian Gem & Jewellery Creation was one of the first and strongest partners of Forevermark Diamonds, and we will always keep dealing with natural diamonds through this brand. However, we observed a significant change in the last two to three years, the natural diamond market faced fluctuating prices and declining consumer confidence, while lab-grown diamonds started gaining popularity. One of our critical decisions was to keep lab-grown and natural diamonds separate in terms of branding and retail. We have 12 showrooms of Indian Gem & Jewellery Creation, and customers come to us expecting fine natural diamonds. Any confusion between lab-grown and natural could undermine that trust. By establishing Espera as a distinct brand, we ensure clarity and uphold the integrity of our natural diamond offerings.

Since launching Espera, we have seen promising results. About 20 to 30 per cent of inquiries are converted into sales, indicating growing interest and acceptance of lab-grown diamonds. Currently, we have one store for Espera, and we plan to expand Espera’s presence with two to three new showrooms in key cities such as Kolkata, Guwahati, Ranchi, etc. We are also offering lifetime buy-backs to gain their trust, as the Indian consumer is still conservative and will look at jewellery buying as an investment.

It is essential to recognise that lab-grown diamonds will not overshadow natural diamonds. Both categories can coexist, catering to different consumer needs and budgets. Lab-grown diamonds are indeed the future, but they will not replace the enduring legacy of natural diamonds.

As told to Maithili Patange