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AIDI

🔥 Kamikaze Marketing & The Diamond Industry 💎

🧠 The Missed Opportunity

“The Roman Empire wasn’t built by holding committee meetings; it was built by annihilating the opposition.”
In today’s competitive landscape, bold strategy often wins — especially in the diamond world.

💍 The Fall of the ‘Diamond Dream’

  • For 80+ years, De Beers marketed natural diamonds as the ultimate love symbol.
  • Then came lab-grown diamonds (LGDs).
  • The natural diamond industry:
    • ❌ Didn’t invest enough in telling their story.
    • ❌ Let LGDs write their own narrative: “same as natural, just conflict-free.”

😬 What Went Wrong

  • Many natural diamond players jumped into LGDs for profit.
  • LGDs filled the vacuum with clever messaging — often misleading — and no one pushed back hard enough.

📉 Crystal Pepsi vs Tab Clear — A Perfect Parallel

  • 1993: Pepsi launches “Crystal Pepsi” — clear, trendy, but sugary and mismatched with expectations.
  • Coca-Cola’s revenge: launched “Tab Clear,” a zero-calorie product deliberately made to confuse shoppers.
    ➤ Shoppers assumed Crystal Pepsi was diet too, felt misled, and abandoned it.

🚗 Tata Nano — Another Lesson in Positioning

  • Marketed as “the cheapest car” — USD 1,300.
  • Targeted poor, first-time car buyers in India.
  • ❌ Failed because in India, a car is a status symbol.
  • If it had been “a city car for millionaires,” story could’ve been different.

📚 The Takeaways

  • LGDs were positioned like Crystal Pepsi: “same product, healthier and cheaper.”
  • Natural diamonds never made their case.
  • The industry let LGDs claim values like “eco-friendly” and “ethical” — even if untrue.
  • LGDs = mass-produced, cheap, coal-powered tech products from India/China.
  • Instead of defending the luxury, natural diamonds surrendered the story.

💡 What Should Have Happened

  • Price LGDs low (e.g., $200/ct), sell in mass-market retail, and brand them clearly:
    • “Diamonds for everyone”
    • Not luxury. Not engagement. Just fashion.
  • De Beers’ Lightbox tried this — but priced it too high ($800–$1,500/ct), missed the moment, and avoided the engagement ring space.

🌍 The Bigger Picture

  • De Beers isn’t to blame — they funded tech to detect LGDs.
  • Without them, the industry could’ve been flooded with undetectable fakes.
  • But now, even Pandora buys LGDs from Lightbox and claims “sustainable sourcing.”
    ➤ Talk about irony.

✅ Final Note

  • Lab-grown sapphires and rubies sell for far less than natural ones — as they should.
  • De Beers' new leadership stopped LGD jewelry production. Smart move.
  • If the natural diamond industry doesn’t unite, De Beers might start branding its diamonds separately… and those who did nothing will regret it.
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