Jeweller: The Great Diamond Debate - Round II

MEDIA
Both sides of the diamond debate
should verify their claims
DANIELLE MAX’S KEY POINTS:
Increasingly, consumers of diamonds are basing their purchasing decision on social and environmental considerations
Consumers do not trust companies to honestly communicate their positive attributes – they require third-party verification
These findings present a promising marketing opportunity for both natural and lab-grown diamond companies, and retailers
A major consumer research study has been
released investigating the need for third-party
verification of both mined and lab-grown
diamond manufacturers’ claims of positive
social and environmental impact.
While that doesn’t trip off the tongue, the report
contains some important observations.
The major point is this: about 40 per cent of
consumer-purchasing decisions are driven
by knowledge of social and environmental
responsibility, as well as country of origin claims.
In addition, consumers stated that they would pay
a premium to have detailed knowledge about the
diamonds they purchase, and would value knowing
the country of origin at a jewellery store’s counter.
Since consumers value independent verification
of claims about social and environmental
responsibility, as well as provenance, this is
something retailers and brands should take
into consideration.
Further analysis of the report – published by MVI
Marketing, a luxury brand research firm – shows
that one of the most important considerations
for retailers (after the 4Cs, grading and brand/
company reputation) is that a natural diamond has
been produced using socially and environmentally
responsible methods. The same applies for labgrown
stones.
However, the report found that consumers are not
prepared to automatically accept the word of a
brand or company concerning its ‘green’ or ethical
credentials – and nor should they.
A majority of consumers want to know that there
are hard facts and data to support a company’s
claims and assertions.
That’s where the third-party verification comes in;
48 per cent of respondents to the study said
third-party verification of a diamond’s country of
origin and its social and environmental compliance
was ‘very important’, and 41 per cent said it was
‘somewhat important’.
For lab-grown diamonds, those numbers were
44 percent and 42 percent respectively.
These consumers also say they would, ideally,
choose certified responsibly mined or sustainably
manufactured lab-grown diamonds over noncertified
diamonds, to the tune of 86 per cent
(for mined diamonds) and 84 percent (for
lab-grown diamonds).
INFORMING YOUR CUSTOMERS
We already know that today’s consumers are
environmentally and ethically minded, and that
will only increase in the future as Gen Z come of
age and force companies to enact changes in the
way they do business, or risk losing a huge swathe
of influential customers.
Open most diamond mining company’s web
pages and there are sections dedicated to
sustainability, the environment and corporate
social responsibility.
The Diamond Empowerment Fund – a global
non-profit organisation supported by the
diamond industry – is dedicated to spreading
the message that ‘diamonds do good’.
It does so by supporting initiatives for people
in ‘diamond communities’ – either diamondproducing
countries or regions where natural
diamonds are manufactured.
Its projects include education, women’s
empowerment, and providing care and support for
youth impacted by HIV/AIDS.
Yet, while there’s already so much positive work
currently being undertaken, just saying so isn’t
enough to satisfy savvy and knowledgeable
consumers who spend large amounts of time
researching products before they buy.
When it comes to marketing, there’s also no denying
the power of social proof.
Social proof is an element of behavioural
psychology, in which people trust and emulate
sources of knowledge, including celebrities, experts,
friends, certification and current users of a product.
Think of it as word-of-mouth advertising. Essentially,
doing good is great, but it’s so much more powerful
when someone else says it for you!
Given these factors, it’s critical for both natural
and lab-grown diamond producers to embrace
third-party certification and verification of their
ethical and sustainable claims – and then fully and
clearly communicate them to consumers.
Critically, that certification and authentication
needs to be available to customers at the point
of retail; having this will ultimately build trust and
help secure the sale.
As we know, in the diamond industry, trust is the
key. It’s what consumers demand, and it’s what
they deserve. i
ABOUT THE AUTHOR
Danielle Max is editor in chief IDEX Online, a
leading online diamond-trading platform and
industry publication. IDEX offers buying services,
online transactions, and real time pricing features.
December 2019 Jeweller 43