Luxury goods have defied common economic sense by gaining popularity over the years. Despite economic headwinds, owners of luxury brands have seen their wealth grow, such as Bernard Arnault, the LVMH CEO and president who has been named the world’s richest person several times. So why are luxury goods so appealing? The answer probably lies in the human psyche. Apart from offering exclusivity, supreme quality, and craftsmanship, luxury brands often limit production and distribution to create a sense of scarcity that makes their products more desirable. This enhances their perceived value and pushes customers to seek out those products. Another reason for the appeal of luxury products is the emotional experience that accompanies owning a special item, making one feel confident and powerful.
The diamond industry is arguably the premier example of a luxury market. In the diamond industry, artificial scarcity and intelligent marketing have been used to boost prices and demand for decades. Since its inception, the diamond industry has carefully controlled the supply of diamonds by limiting production and distribution. Furthermore, major legacy players like De Beers creatively advertised diamond jewelry, superficially the diamond engagement ring, as the most coveted and valuable type of jewelry for years. Now this concept is so ingrained in the international zeitgeist that people forget that it was the creation of the industry and not always a wide-held sentiment. The advent of lab-grown diamonds and the progression of the technology that produces these eco-friendly and ethical products have disrupted this narrative, however. Lab-grown diamonds are created using advanced technology and are chemically and physically identical to natural diamonds. Since high-quality luxury lab-grown diamonds can now be produced in large quantities and at a more affordable price point, lab-grown diamonds are transforming the notion of luxury and upending the industry’s commitment to scarcity.
Liori Diamonds is one of the brands powering this lab-grown diamond revolution. Avi Aranbaiev, the company’s CEO, firmly believes that lab-grown diamonds are better quality, much more affordable, as well as more sustainable, and more ethical than their natural counterparts. While the latter two points have been accepted by the public, the former is starting to take hold. While the affordability, sustainability, and ethical externalities have made lab-grown diamonds a favorite of the younger generation, as technology improves the quality of lab-grown diamonds, the older generation is starting to understand their value. Now, even old-school natural diamond aficionados are realizing that lab-grown diamond brands like Liori Diamonds are creating luxury jewelry featuring unique and colorful 10, 20, and even 30-carat lab-grown diamonds that are equally if not more impressive than natural diamonds of the same size. For that reason, Avi believes the diamond industry is in for a major shake-up and is convinced that lab-grown diamonds will ultimately take over the market.
Liori Diamonds is a leading diamond retailer featuring a wide array of products, but specializing in lab-grown diamond engagement rings. They have an industry-leading selection of GIA-certified lab-grown diamonds in various fancy colors and carat sizes. Buyers can save up to 80% on the cost of a lab-grown diamond engagement ring compared to a natural diamond ring of the same size and quality. Companies like Liori Diamonds are driving the lab-grown diamond industry forward by creating high-quality and affordable luxury lab-grown jewelry, disrupting the traditional diamond market along the way.
The appeal of luxury goods lies in their exclusivity, quality, and emotional appeal. The diamond industry is a prime example of how artificial scarcity can boost demand, but the advent of lab-grown diamonds is allowing innovators to change this narrative. Liori Diamonds is at the forefront of this transformation with its lab-grown diamond engagement rings that are just as beautiful and prestigious as natural diamond rings, but accessible to all at a fraction of the cost. To learn more about Liori Diamonds and their products, visit their website today.
Written in partnership with Tom White