India’s leading jewellery companies are stepping up efforts to build consumer confidence in natural diamonds, as lab-grown diamonds (LGD) gain popularity in Western markets.
For example, the country’s largest jewellery retailer Tanishq has started opening ‘Diamond Expertise Centres’ in its stores, with plans to expand to 200 locations this financial year and eventually 500. These centres offer gemological assessment services and expert advice to customers.
Meanwhile, De Beers’ natural diamond brand Forevermark has identified India as its key growth market. The company plans to open about 100 stores by 2030, targeting annual sales of $100 million.
Despite growing international interest in laboratory grown diamonds, their presence in India remains limited. They currently account for only a small share of diamond sales by value, compared to more than a third in the U.S. Analysts point to the important role of cultural preferences: while American consumers often look for larger, more affordable stones, Indian shoppers value quality and authenticity over size.
Industry experts say the sharp drop in LGD prices has further discouraged Indian jewelers from entering the segment, as it will be increasingly difficult to achieve expected profits.
In this environment, retailers are seeing a strong increase in demand for smaller, natural diamonds. According to CaratLane, the fastest growing and most popular segment among young people is the mini solitaire category – stones weighing between 0.2 and 0.7 carats.
The contrast with Western markets extends to gold jewellery as well. While American consumers often buy 10-14 karat gold, Indian buyers overwhelmingly prefer purer gold – 18-22 karats.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
