Lab-Grown, Natural Diamonds Shouldn’t Be at Odds, Dilip Mehta Says

By Rob Bates | August 21, 2024

The jewelry industry should stop seeing lab-grown and natural diamonds as adversaries and start thinking about how the two products can complement each other, Rosy Blue chairman emeritus Dilip Mehta told attendees at a recent conference organized by India’s Gem & Jewellery Export Promotion Council (GJEPC).

“There is a concern that [lab-grown diamonds] could overshadow natural diamonds, which have been the backbone of our industry for centuries,” Mehta said in his keynote at the Innov8 Talks event in Mumbai. “Rather than viewing this as a zero-sum game, where one must win and the other one must lose, I believe we have an incredible opportunity to expand the market together.

“The truth is both natural and lab-grown diamonds bring unique value to the table, and when leveraged together they can complement each other and help grow the overall jewelry market,” he continued. “The rise of lab-grown diamonds does not mean the demise of natural diamonds. It means we have more tools in our tool kit to meet the needs of consumers.”

Mehta asked attendees to consider how the invention of the airplane affcted the boat business.

“When airplanes were invented, many thought boats would become obsolete,” he said. “Indeed, air travel did take [over] long-distance journeys. But boats didn’t disappear. Instead, boats transformed their business into luxury cruises, offering experiences that airplanes could never provide.”

He noted that “while lab-grown diamonds may [fulfill] certain consumer needs, natural diamonds can also offer something unique—heritage, rarity, emotional connection.”

Mehta also offered up another analogy: the introduction of smartwatches.

“A few years ago, the industry was extremely nervous when Apple introduced smartwatches,” he said. “While Apple may have taken a part of the accessories market, the impact on jewelry was minimal. Jewelry remains a symbol of personal expression and luxury qualities that a smartwatch, no matter how sophisticated, cannot replace.

“This experience teaches us that while new innovation can shake things up, they rarely eliminate the demand for truly timeless [products], but force people to become more innovative to match consumer desire.”

Lab-grown diamonds are “a designer’s dream,” according to Mehta.

“They offer flexibility and creativity, allowing designer to think out of [the] box and create exciting new product,” he said. “This innovation should not be seen as a threat but as an opportunity to enhance the industry and broaden its appeal.”

But LGD manufacturers should remember that “sometimes less is more,” Mehta warned.

“It is natural to aspire to the biggest and outpace the competition,” he said. “But we must also think about sustainability. Building a business that will last will require us to respect the ecosystem of the industry rather than trying to dominate the market at all cost. A balanced approach will ensure that lab-grown diamonds will contribute positively to the industry without disrupting the delicate balance that we have built over decades.”