A Brilliant Disruption

Exactly one century ago, the first crop of cultured pearls was successfully produced, right after the patent was granted in 1916. The transition from pearl fishing to cultured pearl farming, is considered a sustainable revolution in the history of jewelry. Overfishing of wild oysters in the expedition for exquisite natural pearls in America, the Gulf of Mannar and other areas led to the depletion of many oyster reservoirs. Fishing for wild oysters was far from being environmentally sustainable. Affordability of cultured pearls led to their rise and the gradual passing of natural pearl trade from the 1920s onwards. In today’s world, more than 99% of all pearls in the market are cultured pearls, however a small but vibrant natural pearl trade still remains.

The diamond story

Since the 1950’s, man has been experimenting with technological innovations in order to produce another valuable gemstone in the jewelry world: diamonds. By using bio-mimicry, the geological process of diamond formation is accelerated in a laboratory by exposing pure carbon to high pressure and high temperature; a process that happens naturally under the Earth’s mantle at a depth of 140-190 kilometers.

Laboratory created diamonds, also known as man made diamonds were first made for industrial use, however in recent years it has become possible to produce gem-quality stones. These gems remain physically and chemically identical to their mined equivalents, where even an expert eye would not notice the difference. It is under a microscope, where an inscription with a serial number betrays the origins of the lab-grown.

Unlike knock-offs, which is a different chemical substance (an imitation), lab-grown diamonds are considered true diamonds, not counterfeits. Since almost one decade ago, diamond-certifying entities started validating these stones since as any other diamond, are graded with the 4 C’s; carat, color, clarity and cut. As technology advances, bigger and better stones are being produced.

Diamonds are forever, even man made

The diamond mining industry is linked to human rights abuses, extreme working conditions, child labor, environmental destruction, untraceable origin and cartel pricing. The traditional mining industry has mounted defense against what they see as a threat to their multi-billion dollar business. City Research a division of Citigroup in 2015 listed laboratory created diamonds as one of the disruptive technologies affecting the mining industry in years to come.

Since lab created diamonds are relatively new, they still haven’t had the time to connect in the heart of consumers the way Tiffany’s or De Beers has in the past century. However, these gems only need their own version of Coco Chanel or Jackie Kennedy, like cultivated pearls had in their time, for consumers to adapt to a new concept. Having said this, the new jewelry industry has a difficult challenge at hand; to break down preconceptions, deliver value coming from its core and learn how to better translate value propositions into long-term workable financial models.

As the concept of luxury changes, resilient companies will be the ones to stand the test of time. Those who have the vision to foresee what the future of the market looks like and those who learn to listen to their customers’ needs. Maybe it’s not too late to join the innovation train along the way, as it has already left the station.