The Antwerp World Diamond Centre (AWDC) is launching a new marketing campaign for natural diamonds that centers around a gumball machine full of synthetics that can be “won” for five euros, in an effort to highlight the falling value of lab-grown.
The two-day promotion, called “We Protect a Legacy,” will take place Thursday at Stadsfeestzaal, a busy historical shopping district in Antwerp’s city center. The AWDC has filled the gumball machine with 180 lab-grown diamonds weighing approximately 0.30 carats each. Passersby can collect a token for EUR 5, insert it into the machine and claim their prize.
The strategy is the AWDC’s response to the growing popularity of lab-grown diamonds, which has heavily impacted the natural industry, a key part of Antwerp’s heritage and an important part of its financial success. The idea is to show consumers that while synthetics might appear the same as natural diamonds, and might have their place in fashion jewelry, they lack the inherent value of a one-of-a-kind diamond that comes from the earth.
“The association that I have, and that I think many people have with things that are in gumball machines is, it’s not about chewing gum. It’s about cheap goods,” says AWDC CEO Karen Rentmeesters. “It’s something you definitely wouldn’t hold onto, and you wouldn’t feel bad about losing in a day, and its allure evaporates super quickly. I remember, as a kid, being excited to get something out of the machine, and then it was a huge disappointment. Within minutes it broke, or I would chuck it away because it was so unimpressive.”
The campaign marks the first time the AWDC has really put its opinion on blast, as Rentmeesters notes that Belgians are traditionally not very vocal publicly. However, reigniting passion for natural diamonds is so important to Antwerp and its continued livelihood that the organization could no longer hold back, she says. She also points out that the campaign isn’t about mudslinging against the lab-grown industry but rather educating consumers about the differences between synthetics and natural.
“I don’t want to put it in the context of bad-mouthing the other product,” Rentmeesters explains. “I want to point out that it’s a different product and a different price point. For a very long time, what we’ve seen is that the price differentiation in retail is off. Price is one thing you spot immediately that can denote a difference. According to our estimates, 0.30-carat lab-grown diamonds are currently about $25, and if the decline in prices continues at this pace, then by this time next year it will be worth $5. We want to point that out in a fun, gimmicky way — it’s not the same product. I don’t want to seem judgmental of people who buy lab-grown; I just feel consumers need to be informed properly, and price is the first thing that hits you when you do that comparison side by side. We would never put a natural diamond in a gumball machine.”
The marketing conundrum
Rentmeesters believes something slightly shocking and a bit viral, like the gumball machine ploy, is what’s really needed to get the message across that although lab-grown may look like natural, the two are very different. She believes much of the failure to communicate this lies with the natural-diamond trade.
“We haven’t done proper storytelling on origin, on the rarity, on the social-economic impact of the natural-diamond industry on countries like Botswana,” she stresses. “It’s about so much more than price. I really want to highlight that, but I think price is the first step. We need to educate consumers, many of whom are highly unaware. There’s still confusion about the resale value.”
For emphasis, Rentmeesters relates a story she heard from a jeweler who was selling a customer an engagement ring. The shopper was inclined to buy a lab-grown diamond. The jeweler asked him to do a quick calculation of the cost of his wedding, noting he would be spending a certain amount per person, for catering, flowers, cake and a wedding dress. He pointed out that even the groom’s shoes were more expensive than the lab-grown diamond. The retailer summed it up by showing the customer he was spending a lot of money on the wedding, yet the one symbol his wife would carry around as a token of their union and the love they shared was valued at $65 a carat, and falling.
She believes that just as that customer got it, consumers who witness the AWDC’s campaign will get it too.
Stakeholders unite
The AWDC will also be in Angola next week, meeting with a number of industry stakeholders including De Beers, India’s Gem & Jewellery Export Promotion Council (GJEPC), the Dubai Multi Commodities Centre (DMCC), and the Angola and Botswana governments. The group plans to combine funding to launch promotional campaigns to spur spending on natural diamonds.
Rentmeesters points out that it’s “past midnight” when it comes to marketing for natural, meaning, the industry has dropped the ball for way too long, riding on the goodwill and desire De Beers created with its “A Diamond Is Forever” slogan over half a century ago, which has now dwindled to mere fumes.
“You need funds to execute a strategy right, and I think this could be a big moment for the industry, a historical turning point,” she states. “We’ve all been looking at each other to come up with the money, but now we are finally coming together, and I think we are really close to reaching a point where, since all commitments are made across the value chain, we can really raise a substantial amount of money to execute a great strategy to promote natural diamonds. We need to wake up. It might be already past midnight, but I don’t think it’s ever too late to start building again.”
Main image: A woman putting a token in the lab-grown gumball machine. (David Legreve/AWDC)
