Table of Contents
Introduction
Today customers look at buying jewellery much differently than they did just a few years ago. Customers compare prices, inquire about the quality of the jewellery, and search for designs that fit into both their everyday life and their special occasions. While many buyers of jewellery prefer to make smart choices rather than heavy investments, especially younger customers and new diamond buyers, this changing trend has created an opportunity for retailers looking to grow without major investments.Â
Additionally, because of these changes, Lab Grown Diamond jewellery has become a very attractive option to new and smaller retailers trying to offer their customers premium-looking jewellery at an affordable price.
What Is Lab Grown Diamond Jewellery?
Diamonds created in a laboratory setting are still diamonds because they were created using processes that have been developed to replicate what nature has done for millions of years. Most people think of diamonds as precious gemstones and therefore view them as valuable items that benefit from their being created in a laboratory. As such, there is a perception that lab-grown diamonds are somehow inferior or less valuable than diamonds that are mined from the earth; however, this is not the case.Â
Lab diamonds have the same chemical properties as natural diamonds; they are made from the same materials and under the same conditions (for the most part). They have therefore been classified by many jewelers (and now by consumers) as “real” diamonds and as such should command similar values.
Laboratory-created or “synthetic” diamonds are produced by simulating or mirroring the natural processes through which diamonds form in nature. In the laboratory, a piece of carbon is subjected to an extremely high level of temperature and pressure during the diamond-growing phase, or through an innovative “layering” process using vastly complex machinery. After a period of time, the carbon becomes a diamond; however, it does so much more quickly, and in a nearly identical manner to how it does so naturally.Â
A highly skilled and trained team of experts closely monitors the entire diamond-growing process to ensure that the resulting diamond meets the stringent quality requirements of the industry.
Why Lab Grown Diamond Jewellery Is Low Risk for New Retailers
When you first start out as a retailer selling jewellery made from Diamonds, you can often feel overwhelmed by the high cost and length of time before seeing a return; however, with Lab Grown Diamonds it becomes much easier. The cost of Lab Grown Diamond Jewellery is significantly lower than that of Natural Diamonds so a retailer can enter the market at a much lower price point than with Natural Diamonds.Â
Retailers can therefore create a small collection of Lab Grown Diamond Jewels, gauge customer interest, and slowly scale their inventory as their business grows while exposing themselves to a minimal amount of financial risk.
The cost of lab-grown diamonds is easier to determine than that of mined diamonds. Due to their consistency in pricing, lab-grown diamond retailers can establish fixed pricing and maintain more consistent margins. This allows retailers to present their customers with a more straightforward explanation of how their lab-grown diamond has value, allowing for increased chance of closing the sale more quickly. Customers can easily see the price disparity and feel confident that they are making a wise purchase.
Faster stock turnover is another significant benefit of lab-grown diamond jewellery. Lab-grown diamond jewellery is more affordable, which allows for greater customer interest, especially for first-time buyers of diamonds. As a result, lab-grown diamond jewellery is sold faster, improves cashflow, and does not clutter the retailers’ shelves for as long.
Retailers experience less anxiety about having excessive stock that isn’t selling because they order in smaller quantities and therefore have a greater chance of receiving demand; therefore, they won’t have as much risk of losing capital to slow-selling merchandise. This gives new retailers the confidence and security to enter into the diamond jewellery business.
Common Problems New Retailers Face
all new diamond Jewellery retailers encounter confusion regarding lab-grown versus mined diamonds when first stepping into this newly developed market. Many retailers do not know how to evaluate and grade diamonds or how to explain certification to consumers. Lab Grown Diamond Jewellery provides retailers with the knowledge to evaluate the diamond’s grading, certification and quality in layman’s terms so that they can confidently sell diamonds to their customers while providing clear and easily understandable answers about the products being sold.
A concern that retailers have regarding lab-grown diamonds is whether or not customers will be willing to purchase them. Many retailers are concerned that customers may hesitate or be sceptical about the product. Our team helps to educate retailers on how to properly educate their customers on lab-grown diamonds as well as to provide accurate information regarding the benefits and establishing trust at the sales counter. Once customers understand the true value of lab-grown diamonds, the acceptance of lab-grown diamonds becomes significantly easier.
After Pricing and Resale, there are other important issues that cause concerns for New Retailers. New Retailers may lack experience in pricing Diamond Jewellery correctly and/or they may worry About Resale Value at the end of the transaction. We provide practical pricing support that is aligned with the local marketplace so that New Retailers will have Competitive Pricing and Fair Margins.
Design and Trend Knowledge are also Areas where most retailers lack experience and may struggle with understanding the importance of choosing Correct Designs for Consumers and Current Trends, Choosing Incorrect Designs may result in Minimal Sales. Therefore, we assist Retailers in Identifying Fast Moving/Popular Designs That Are Preferred Today To Keep Their Inventory Selected Based on Buyers’ Preferences and Market Trends in a Constantly Changing Environment.
Our Step-by-Step Support for New Retailers
The first obstacle faced by all new jewellery retailers is finding the correct items to sell. Our experts will assist you in choosing which Lab Grown Diamond Products best suit your type of store, who your customers are, and what your financial constraints are. We specialise in products that are easily sold and suitable for everyday use as well as gift-giving rather than recommending large and risky collections.
Additionally, we will assist you in selecting high-demand designs that are frequently requested by customers. Examples of these are popular rings, pendants, earrings, and lightweight designs that typically appeal to multiple generations. Retailers must focus on demand-based designs to avoid stock stagnation and maximise the ability to efficiently rotate inventory.
Many retailers struggle with implementing the right pricing strategy for their market. Our services help retailers implement a clearly defined pricing strategy based upon where they are located, what customers expect from them and what competitors are offering. This allows retailers to confidently communicate their pricing and maintain healthy gross margins without raising or lowering prices excessively.
In addition to product pricing, we offer retailers training and knowledge regarding how best to sell and support lab grown diamond sales. Retailers receive training on how to answer customer questions about lab grown diamonds and to deal with customers’ common concerns. This training reinforces retail sales and trust in their customers over the long term.
Certified Quality You Can Trust
 in diamond jewelry, quality and trust are extremely important to customers. That is why we offer complete IGI and other international certification support on all our diamonds, which enables retailers and consumers to make confident purchasing decisions. The certificate also provides useful information regarding the cut, clarity, color, and carat weight of the diamond, among other things. Once consumers and retailers have complete confidence in the diamond’s quality, they will continue to purchase Lab Grown Diamond Jewellery with confidence for many years to come.
All jewellery that is sent to your store undergoes rigorous quality control prior to shipping. All of the items are individually checked for finish, secure setting, and the overall durability of the item to prevent complaints and return rates from new retailers.
Small Start, Easy Scale Model
For new jewellery retailers, starting with a limited selection, small budget, and a test market is less risky than launching with a massive amount of inventory, because it gives them a chance to see if the market will accept their product before incurring a large financial burden. This is especially true with Lab Grown Diamond Jewellery, where even a limited collection can appear very high-end and therefore have a good chance of appealing to consumers.
As demand increases for specific styles, retailers can gradually add additional styles as needed. Retailer can growth into different product categories based on what customers want most, such as; rings, earrings, pendants, etc. This step-by-step approach to growing styles allows a retailers inventory to remain fresh, relevant and aligned with true customer demand.
For retailers, having a flexible ordering system further facilitates the ability to gradually add new styles as needed by allowing them to purchase additional quantities of popular styles and/or experiment with new styles without being forced to order large quantities. The flexibility associated with a flexible ordering system, aids a retailer in managing cash flow better and reduces the risk of having excessive inventory (overstocked).
How Lab Grown Diamond Jewellery Helps You Attract Modern Customers
Younger customers today know what they want when they buy jewellery and have less emotional connection to it, as they are more practical, aware and value a product’s authenticity. They are also more interested in getting the best value for their money and require detailed information before purchasing. Lab Grown Diamond Jewellery offers these benefits by providing customers with genuine, certified diamonds at a competitive price point and clear information, which creates an immediate bond of trust between the consumer and the retailer.
Eco-friendly and ethical selections often delight many buyers and consumers. Lab created diamonds are formed through man’s hands in a controlled setting, making them more conscientious than mined diamonds, which adds to their sustainable appeal to environmentally concerned buyers.
Lab created diamond jewellery also makes for wonderful gifts and everyday wear. Their designs lend themselves to lightweight and stylish pieces created for everyday wear, anniversary, birthday, and/or special occasion. Retailers benefit from multiple returns because of this factor, as it creates a bond between retailers and customers that lasts beyond one purchase.
Conclusion
The diamond Jewellery industry has become less intimidating and less confusing for newer/smaller retailers entering the business. Providing retailers with the proper guidance, set pricing, certified quality, and flexible ordering allows them to grow at their own pace without feeling under financial duress. Lab Grown Diamond Jewellery offers modern-day customers an affordable way to establish their purchases while creating a sense of trust with retailers, who respect their customers’ transparencies and offer retailers a strong profit potential.
Selecting a business partner that clearly understands the product and the retailer’s retail pathway is the most critical aspect of any successful diamond Jewellery business. At auramentwholesale, we have made it our business to help retailers begin small, become educated in the diamond business, and safely grow that business. If you are opening a store or adding diamonds to your current store inventory, we will support you throughout your experience.