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Lab Grown Diamonds Consumer Research Update Historical Progression 2004-2016 5 October 2016 Lab Grown Diamonds Consumer Research Update- Historical Progression 2004-2016 Copyright MVI MarkeIng Ltd. All Rights Reserved 1

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Page 1: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

HistoricalProgression2004-2016

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 1

Page 2: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

MVIhasbeenconducIngconsumermarketresearchstudiesonawarenessandacceptanceofLabGrownDiamondssince2004.WhatfollowsisahistoricalsummaryofthekeyresearchfindingsdrawnfrommulIplestudiesconductedbyMVIbetween2004-2016.ForaddiIonalinformaIoncontactMartyHurwitzMarty@MVIMarkeIng.com.

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 2

Page 3: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

2004

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 3

Page 4: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2004Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 4

  Consumersarelargelyuneducatedaboutlabgrowndiamondswithoverathirdunfamiliarwithanyofthetermsdescribingthem

  Theoverwhelmingmajorityofconsumersareeitherextremelyorsomewhatunfamiliarwithlabgrowndiamonds

  Colorandclarityareimportant,butauthenIcityisparamount

  DeeperdiscountsforlabgrowndiamondsdonotchangetherelaIvechoicesofminedvs.labgrowndiamonds

Page 5: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2004Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 5

  ConsumersarelargelypriceinelasIc

  43%oftheconsumersselected“MineddiamondsareauthenIc,notimitaIons”asthemainreasontheyprefermineddiamonds

  Threeoutoffourconsumersareconcernedthatlabgrowndiamondscouldbe“passed-off”asmineddiamonds

  Over50%wantacerIficateofauthenIcitywiththeirdiamondpurchase

Page 6: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

2005

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 6

Page 7: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2005Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 7

  ThereisaconcernamongUSandCanadianresidentsthatlabgrowndiamondswillbesoldorpassedoffasmineddiamonds

  AcerIficateofauthenIcitywasmorepowerfulthanalaboratorygradingcerIficateinreassuringconsumersofthenatureoftheirdiamondpurchase

  Inmostcases,asthepriceofthediamondincreases,withinasetqualitylevel,consumersaremorelikelytoswitchtoalabgrowndiamond

  Ingeneral,asthequalityofdiamondsdecreases,consumersbecomemorelikelytoswitchtolabgrowndiamonds

Page 8: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 8

KeyFindingsfrom2005Research

Page 9: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 9

KeyFindingsfrom2005Research

Ifyouplantopurchasealabgrowndiamondorlabgrowndiamondjewelry,whichoneofthefollowingwouldbestreassureyouthediamondwasnotbeingmisrepresented?

Page 10: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 10

KeyFindingsfrom2005Research

Wouldyouconsiderpurchasingalabgrowndiamondorlabgrowndiamondjewelry?

Page 11: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 11

KeyFindingsfrom2005Research

Base:Allrespondentswhoplantobecomeengagedormarriedwithinthenextyear.Wouldyougiveyourfiancéealabgrowndiamondring?

Page 12: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

2007

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 12

Page 13: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2007Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 13

 Basedonadiscretechoiceexercise,consumerssIllpreferredmineddiamondoverlabgrowndiamondsinmostcases.However,therearesomescenarioswhereconsumersactuallypreferredlabgrowndiamonds

 Overall,asthepriceofthemineddiamondincreased,andtheactualsavings,ata20%discount,becomesgreater,theconsumerismorelikelytopreferthelabgrowndiamond

Page 14: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

2009

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 14

Page 15: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2009Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 15

Knowingwhatyounowknowaboutlabgrowndiamonds,wouldyouconsiderpurchasing,orrequesFngasagiG,labgrowndiamondjewelry?(Selectonlyone)

Page 16: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2009Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 16

Foreachofthefollowing,pleaseindicateifyouwouldconsiderpurchasinglabgrowndiamondjewelry.

Page 17: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2009Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 17

Whatistheprimaryreasonyouwouldconsiderpurchasinglabgrowndiamondjewelry?(Selectallthatapply)Base:RespondentswhowouldconsiderpurchasingalabgrowndiamondorrequesFngasagiGlabgrowndiamondjewelry.(n=827)

Page 18: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2009Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 18

IfyouwereshoppingforafinejewelrygiG,wouldyouconsiderpurchasingalabgrowndiamondjewelrystyle?(Selectonlyone)

Page 19: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2009Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 19

Wherewouldyoubemostlikelytopurchasealabgrowndiamondjewelrystyle?(Selectonlyone)

Page 20: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

LabGrownDiamondsConsumerResearchUpdate

2016

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 20

Page 21: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2016Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 21

(AGerintroducFonstatement)Nowthatyouunderstandwhatlabgrowndiamondsare,whatdoyouthinkofthem?(Selectallthatapply)

Page 22: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2016Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 22

Ifyouwereshoppingforanengagementring,wouldyouconsiderlabgrowndiamondsforthecenterstone?

Page 23: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2016Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 23

Doyouthinktheseman-madelab-createdstonesshouldbecalleddiamonds?

Page 24: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2016Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 24

Whatisthemainreasonyouareinterestedinlabgrowndiamonds?

Page 25: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

KeyFindingsfrom2016Research

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 25

Howmuchdoyouthinklabgrowndiamondsshouldsellforcomparedtomineddiamonds?

Page 26: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

MVI‘sLuxuryConsumerResearchistheindustrystandardfordetailing,definingandanalyzingconsumerpreferencesandlikelybehaviors.Withover30yearsofexperienceandleadership,MVIhasperfectedauniquepredicIvemodelingprotocol,allowingourclientstolearnwhatwillsellthru,withwhichconsumers,forwhatprice,andwhere.PredicIveModelingoflikelyconsumerbehaviorsiscriIcalintoday’scompeIIvemarketplace,wherethecostofrawmaterialsconInuestorise,andsellthruatretailistheonlymetricthatcounts.InaddiIontoproductresearchwithtargetconsumers,MVI‘sLuxuryConsumerResearchistheperfectvehiclefortesIngbrandawareness,equityandleverageopportuniIes.MVI’sclientsincludemulI-naIonalconglomerates,manufacturers,retailers,tradeassociaIons,financialinsItuIonsandsovereignnaIons.ForaddiIonalinformaIoncontactMartyHurwitzMarty@MVIMarkeIng.com.

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 26

AboutMVI

Page 27: Lab Grown Diamonds · 2016-10-06 · preferred mined diamond over lab grown diamonds in most cases. However, there are some scenarios where consumers actually preferred lab grown

MartyHurwitzCEOMVIMarkeKngLtd.Email:[email protected]

5October2016 LabGrownDiamondsConsumerResearchUpdate-HistoricalProgression2004-2016CopyrightMVIMarkeIngLtd.AllRightsReserved 27

Contact

MVIMarkeIngLtd.(MVI)herebydisclaimsallwarranIesrelatedtothisreport.Specifically,thisreportisprovided“asis”and“asavailable.”Tothemaximumextentpermigedbylaw,MVIexpresslydisclaimsanyandallwarranIes,expressedorimplied,regardingthisreport,including,butnotlimitedto,anyimpliedwarranIesofmerchantability,fitnessforaparIcularpurpose,ornon-infringement.MVIdoesnotwarrantthatthereportwillmeetyourrequirementsorthatthereportwillbecompleteanderrorfree.TheinformaIoninMVIreportsmaycontainerrors,omissions,problemsorotherlimitaIons.MVIandouraffiliatedparIeshavenoliabilitywhatsoeverforyouruseofanyinformaIoninourreports.