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Editor’s Desk We cannot direct the wind - but we can adjust the sails The lab-created diamond market has once again found itself at a crossroads. ANGELA HAN argues that the adage of ‘adapt or perish’ remains as relevant as ever. Many influential minds have said that adaptability is the most important attribute of survival – it’s no different in running a successful enterprise that withstands the test of time. Indeed, I’m reminded of what my mother taught me growing up: ‘Be like the bamboo, lithe and flexible – no matter how strong the wind blows, it won’t break you.’ When you’re lithe, you can bend. From businesses to industries, when you’re ‘flexible’ the storms can’t break you – the gale forces only train your branches to become stronger. For example, did you know that Nokia began as a pulp-and-paper company in the mid- 1800s, and following a merger in the 1960s, added telephone and communications equipment to its operations. In the next 50 years, Nokia would blossom into the world’s largest mobile phone manufacturer. Could you imagine Nokia as a paper company today? And then came Apple – beginning as pioneers of personal computers – and subsequently overtaking Nokia’s market dominance in mobile phones. Apple is an example of identifying the wind direction and then making bold and risky ‘sail adjustments’ in an unrelentingly and fast-changing marketplace. Doors of opportunity open for those who can adapt, which then paves way for even more opportunities. With each passing year the diamond industry has faced new challenges and the need for adaptability has been pronounced. Technology and improved manufacturing capabilities have finally caught up with the trade causing a huge shift created by labcreated diamonds. According to research from analysts featured in this issue, lab-created diamonds reached 10 per cent of all diamond jewellery sales in the US in 2022. It’s a significant milestone for an industry given that it has been reported that labcreated diamonds represented less than 2 per cent just five years ago. It could be argued that COVID and Russia invading Ukraine assisted this increase, however; I’m sure you’ll agree when I say it’s been a rapid rise nevertheless. And one that should not be ignored! Concerns about the world economy have caused consumers to tighten their purse strings and could be another reason why it appears that the public flocked to cheaper lab-created stones. Radical adaptability Demand continues to increase for labcreated diamonds; however, prices continue to fall. It’s a contradictory circumstance to navigate for suppliers and retailers alike. So, just how will this unusual dilemma be resolved? We’ve spoken to a range of industry pundits and most agree on one thing – transparency. The industry needs to communicate to consumers in an honest and transparent manner. While transparency is inarguable, or at least should be, it’s one of the hottest talking points not only in the jewellery trade but indeed, the wider business community – espoused and endorsed by many but, unfortunately, often practiced by few. For example, Australia’s Competition and Consumer Commission (ACCC) recently published the findings of a sweep of businesses that practice ‘greenwashing’. Unsurprisingly, a number of those targeted in the review accused of making misleading claims come from the fashion sector, with the most issues pertaining to ‘environmental credentials’. ACCC deputy chair Catriona Lowe advised “this conduct harms not only consumers, but also those businesses taking steps to implement more sustainable practices.” This message is emphasised by the contributors to our latest lab-created diamond analysis. International Grown Diamond Association president Joanna Park-Tonks, says retailers need to market their jewellery in a way that ‘avoids denigrating’ natural diamonds. She also highlighted greenwashing specifically as an issue, something that many lab-created diamond suppliers and retailers can rightly be accused of. Another contributor described transparency between businesses and consumers concerning lab-created diamond jewellery as a ‘non-negotiable’. It’s a pleasing commitment to the kind of practices that are crucial in ensuring that the public’s faith in such products should continue to climb. I’m reminded of what my mother taught me growing up: ‘Be like the bamboo, lithe and flexible – no matter how strong the wind blows, it won’t break you.’ If they can do it, why can’t you? Championing the importance of transparency and clearer communication between suppliers, retailers, and consumers is a noble goal for these leaders of the diamond industry, however, the same cannot be said of a number of industry bodies. In the past year, <strong>Jeweller</strong> has addressed the failings of representative bodies to be upfront and honest about their practices. The World Federation of Diamond Bourses (WFDB) has not been transparent on a number of issues, including allowing its members to make false claims. To this day the WFDB continues to promote a misleading ‘membership counter’ on its website’s homepage. The Responsible <strong>Jeweller</strong>y Council (RJC) faced a tidal wave of scrutiny after demonstrating a complete failure to communicate on simple and fundamental matters during the fallout of the Russian invasion of Ukraine. <strong>Jeweller</strong> has reported a number of failures by the RJC on matters of transparency even though this international jewellery organisation boasts about having a “fundamental commitment to transparency and accountability for progress”. The Diamond Dealers Club of Australia – a WFDB member - refuses to answer simple queries about the membership base – including the most basic question of all – how many members do you have? The <strong>Jeweller</strong>s Association of Australia was exposed for failing to disclose a commercial relationship between two board members. Let’s hope that this push for improved communications by the lab-created diamond sector proves to be an infectious phenomenon – as it’s an area that the jewellery industry at wide needs to improve. After all, if we are unable to demand transparency from our industry ‘representatives’ then by what right can we expect suppliers and retailers to be honest and forthcoming on sensitive matters? And should these industry leaders fail to change? Remember that ‘adapt or perish is nature’s inexorable imperative.’ Angela Han Publisher <strong>March</strong> <strong>2023</strong> | 15
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