taking a shine

How lab-made diamonds are stealing the shine (and market share) from natural ones

More than 95% of industrial diamonds are synthetic, so why aren't more people using them in engagement rings?

Lab-made, synthetic diamonds are becoming increasingly similar in quality, cut, and clarity to natural ones. Technological advances has resulted in their growing use and acceptance in industry – but cracking the luxury consumer market is the final frontier. This is in large part to do with the the way consumers place value on products.

The idea of creating diamonds in a laboratory is not new. Scientists have been at it since the mid-19th century, armed with the knowledge that diamonds are the product of carbon that’s exposed to high heat and pressure. But applying this in a lab environment remained elusive until the 1950s. Since then, three different techniques have been developed to produce increasingly authentic-looking synthetic diamonds. This applies to their appearance, as well as their physical properties such as thermal conductivity, electron mobility and hardness, which can even be superior to natural diamonds.

Thus, synthetic diamonds are increasingly used in high-tech laser cutting and polishing tools. Electronic applications are also being developed for various industries, such as power stations. Analysts estimate that more than 95% of all industrial diamonds are synthetic.

Two types of threat  

An immediate threat that synthetic diamonds pose to the traditional industry is from those that are falsely marketed as natural. With the labour costs of cutting and polishing natural diamonds on the rise, there is a growing concern that synthetic versions are being passed off as the real deal to make savings. Synthetic variants are around 15% to 25% cheaper.

But this is a relatively manageable threat. Preventive measures such as devices that allow quick detection of synthetics and a new Natural Diamond Quality Assurance programme have been put in place. And discussion is ongoing regarding laws that require retailers to explicitly mark synthetic diamonds.

The bigger threat comes from losing market share to consumers who might consciously choose synthetic diamonds over natural ones. The natural diamond industry is still suffering from increased awareness of “blood diamonds” – diamonds that have been used to finance conflict. The synthetic diamond industry has exploited this trust by marketing theirs as “conflict-free” and “ethical”.

But there’s another issue, which cuts to the core of why diamonds are considered so valuable and are such a mainstay of the jewellery industry. It’s all to do with what people perceive to be valuable.

Value is in the eye of the beholder  

Price is always determined by what people are willing to pay for products – and this is no different with diamonds. Research carried out by my team over the years, continuously demonstrates that value is multidimensional in nature. There are three specific dimensions that matter: social, personal and functional value.

Social value represents how valuable we perceive something to be in relation to other people – will it make us look good, will it boost our image or status? Personal value reflects how it will satisfy our wants and desires. And functional value represents how useful the product is perceived to be. For every purchase, we assign different levels of importance to each of these dimensions.

When it comes to value perception of natural against lab-grown diamonds, the difference is clear. The fact that synthetic diamonds have such a greater acceptance when it comes to their industrial applications (such as high-end precision tools) is predominantly driven by the functional nature of their use here. So when synthetic diamonds satisfy their needs at a comparatively lower prices they buy this category of diamonds.

But for consumers – and buyers of engagement rings especially – diamonds have a far more significant emotional attachment. Diamonds actually surged in popularity as a result of an exhaustive marketing campaign by De Beers, which used to have a monopoly on the global supply of diamonds. The company created demand for diamond engagement rings with a massive, and incredibly effective, campaign that included the slogan: “A Diamond is Forever”.

The strong emotional element to the way that diamonds have been marketed cannot be captured through their functional value. They therefore have substantial personal value – the very cost being marketed as a reflection of the amount the buyer loves the person they are giving them too.

As with other luxury goods, diamonds have an enormous social value. To most consumers they are not just an item of acquisition, but something to show off. And if they are being bought as part of an engagement ring there is an element of showing how much you value the other person.

This is a real barrier for the synthetic diamond industry. Even the term “synthetic” undervalues the regal association with diamonds. In this regard, the synthetic diamond industry needs a substantial strategy to crack the market. The positioning based on calling the diamond “conflict-free” is helpful but it’s not sizeable enough, as the natural diamond industry is increasingly scrutinising its supply chain to remove conflict-zone diamonds.

Something on which the synthetic diamond industry has not yet focused (but could) is this emotional connection that makes these diamonds socially desirable, as well as encouraging pride in buying them. It will require substantial efforts at an industry level and not just from one or two firms.

Until then, the price-conscious consumer who is more interested in the functional value of diamonds will provide a small market for synthetic diamonds. But if they want to reach the mainstream they’ll need to market themselves to appeal to the societal and personal value perceptions people have. Meanwhile, the natural diamond industry should make the most of its market dominance.

Paurav Shukla, Professor of Marketing, University of Essex.

This article first appeared on The Conversation.

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Removing the layers of complexity that weigh down mental health in rural India

Patients in rural areas of the country face several obstacles to get to treatment.

Two individuals, with sombre faces, are immersed in conversation in a sunlit classroom. This image is the theme across WHO’s 2017 campaign ‘Depression: let’s talk’ that aims to encourage people suffering from depression or anxiety to seek help and get assistance. The fact that depression is the theme of World Health Day 2017 indicates the growing global awareness of mental health. This intensification of the discourse on mental health unfortunately coincides with the global rise in mental illness. According to the latest estimates from WHO, more than 300 million people across the globe are suffering from depression, an increase of 18% between 2005 and 2015.

In India, the National Mental Health Survey of India, 2015-16, conducted by the National Institute of Mental Health and Neurosciences (NIMHANS) revealed the prevalence of mental disorders in 13.7% of the surveyed population. The survey also highlighted that common mental disorders including depression, anxiety disorders and substance use disorders affect nearly 10% of the population, with 1 in 20 people in India suffering from depression. Perhaps the most crucial finding from this survey is the disclosure of a huge treatment gap that remains very high in our country and even worse in rural areas.

According to the National Mental Health Programme, basic psychiatric care is mandated to be provided in every primary health centre – the state run rural healthcare clinics that are the most basic units of India’s public health system. The government provides basic training for all primary health centre doctors, and pays for psychiatric medication to be stocked and available to patients. Despite this mandate, the implementation of mental health services in rural parts of the country continues to be riddled with difficulties:

Attitudinal barriers

In some rural parts of the country, a heavy social stigma exists against mental illness – this has been documented in many studies including the NIMHANS study mentioned earlier. Mental illness is considered to be the “possession of an evil spirit in an individual”. To rid the individual of this evil spirit, patients or family members rely on traditional healers or religious practitioners. Lack of awareness on mental disorders has led to further strengthening of this stigma. Most families refuse to acknowledge the presence of a mental disorder to save themselves from the discrimination in the community.

Lack of healthcare services

The average national deficit of trained psychiatrists in India is estimated to be 77% (0.2 psychiatrists per 1,00,000 population) – this shows the scale of the problem across rural and urban India. The absence of mental healthcare infrastructure compounds the public health problem as many individuals living with mental disorders remain untreated.

Economic burden

The scarcity of healthcare services also means that poor families have to travel great distances to get good mental healthcare. They are often unable to afford the cost of transportation to medical centres that provide treatment.

After focussed efforts towards awareness building on mental health in India, The Live Love Laugh Foundation (TLLLF), founded by Deepika Padukone, is steering its cause towards understanding mental health of rural India. TLLLF has joined forces with The Association of People with Disability (APD), a non-governmental organisation working in the field of disability for the last 57 years to work towards ensuring quality treatment for the rural population living with mental disorders.

APD’s intervention strategy starts with surveys to identify individuals suffering from mental illnesses. The identified individuals and families are then directed to the local Primary Healthcare Centres. In the background, APD capacity building programs work simultaneously to create awareness about mental illnesses amongst community workers (ASHA workers, Village Rehabilitation Workers and General Physicians) in the area. The whole complex process involves creating the social acceptance of mental health conditions and motivating them to approach healthcare specialists.

Participants of the program.
Participants of the program.

When mental health patients are finally free of social barriers and seeking help, APD also mobilises its network to make treatments accessible and affordable. The organisation coordinates psychiatrists’ visits to camps and local healthcare centres and ensures that the necessary medicines are well stocked and free medicines are available to the patients.

We spent a lot of money for treatment and travel. We visited Shivamogha Manasa and Dharwad Hospital for getting treatment. We were not able to continue the treatment for long as we are poor. We suffered economic burden because of the long- distance travel required for the treatment. Now we are getting quality psychiatric service near our village. We are getting free medication in taluk and Primary Healthcare Centres resulting in less economic stress.

— A parent's experience at an APD treatment camp.

In the two years TLLLF has partnered with APD, 892 and individuals with mental health concerns have been treated in the districts of Kolar, Davangere, Chikkaballapur and Bijapur in Karnataka. Over 4620 students participated in awareness building sessions. TLLLF and APD have also secured the participation of 810 community health workers including ASHA workers in the mental health awareness projects - a crucial victory as these workers play an important role in spreading awareness about health. Post treatment, 155 patients have resumed their previous occupations.

To mark World Mental Health Day, 2017, a team from TLLLF lead by Deepika Padukone visited program participants in the Davengere district.

Sessions on World Mental Health Day, 2017.
Sessions on World Mental Health Day, 2017.

In the face of a mental health crisis, it is essential to overcome the treatment gap present across the country, rural and urban. While awareness campaigns attempt to destigmatise mental disorders, policymakers need to make treatment accessible and cost effective. Until then, organisations like TLLLF and APD are doing what they can to create an environment that acknowledges and supports people who live with mental disorders. To know more, see here.

This article was produced by the Scroll marketing team on behalf of The Live Love Laugh Foundation and not by the Scroll editorial team.