Episode 86: 2023 Predictions, Lab-Grown Shakeout, Transparency, and AI The Jewelry District

You’ll hear JCK editor-in-chief Victoria Gomelsky and news director Rob Bates look ahead into 2023. The hosts, noting that it's folly to predict more than one year ahead, make some educated predictions for the year including: the end of the pandemic, which might bring an end to some new customs while others continue to be new norms; a shakedown in the lab-grown sphere resulting in many leaving the space as prices fall below profitable levels; growing demands for transparency of sustainability claims, including both consumer demand and legislative standards; and an increased presence of AI in the different aspects of the jewelry business.Sponsored by De Beers: institute.debeers.comShow Notes02:45 Looking ahead into 202307:30 Lab-grown diamond shakeout10:20 New transparency laws20:00 How AI is changing the industryEpisode CreditsHosts: Rob Bates and Victoria GomelskyProducer and engineer: Natalie ChometPlugs: jckonline.com (jckonline.com); @jckmagazine (https://www.instagram.com/jckmagazine/); institute.debeers.com (http://institute.debeers.com/)Show RecapLooking Ahead (But Not Too Far)The pace of change is so quick, and unexpected events—like the pandemic—make looking further than one year into the future a fool’s errand, so Rob and Victoria focus on the year at hand. Victoria found a list of predictions for 2023, one of which these is the end of the pandemic, which experts estimate will happen sometime in 2023.Some trends brought on by the pandemic are likely to remain—such as how it pushed businesses to take a digital-first approach—but others—like masks and distancing—may fade away. Jewelry companies seem much healthier now. They have a reserve of cash and goodwill, better consumer data, etc. Despite global economic factors like inflation, there is optimism.Lab-Grown Diamond ShowdownRob predicts that there will be a shakeout in the lab-grown diamond sector this year. Prices are falling, and not everyone can make the business profitable that way. Days of large margins are petering out, though demand is still strong. Rob foresees that lot of people will leave this market. The natural diamond industry is also dealing with challenges, falling prices. Lab prices are falling because they too are priced based on Rapaport, so when natural diamond prices fall, lab-grown prices follow suit. It has become a race to the bottom, and the rapid growth in this category is about to experience some upheaval.Demands for Transparency in Sustainability ClaimsGreenwashing was put to the test in 2022. People want proof you’re doing what you say. This will continue in 2023. Victoria spoke to a few researchers in this field. One was a Harvard student with a focus on sustainability science. She spent time and research poking holes in those sustainability claims different companies make. JCK published a story on how to create a sustainability report last year. This kind of transparency of reporting will soon become law. It has passed in the EU already. This will apply for public as well as private companies. These laws apply to larger companies that do business in Europe too.For a long time, the wide world of luxury brands got away with being very opaque. There was a mystique around how they did business. Gen Z will ensure that words and trust are not enough.