Although lab-grown diamonds have massive development potential in the current market, they still face severe challenges in terms of industrial chain structure, external competition, and their own brand building:

1.Unbalanced industrial chain structure, with high-value-added profits flowing overseas Although China accounts for over 70% of the rough production in the global lab-grown diamond industry chain, this is mainly limited to the upstream manufacturing sector. The midstream cutting and polishing sector, which has extremely high added value, is a weak point in the domestic market. Reasons for this include a shortage of domestic professionals, high labor costs, and unequal domestic and export sales policies such as export tax rebates. Because India dominates this area, China's lab-grown diamond industry is basically in a state of "making wedding clothes for others," with the vast majority of profits flowing overseas.

2.Facing marketing suppression from natural diamonds and the impact of value-preserving substitutes (like gold) In the terminal consumer market, lab-grown diamonds are encountering the dual impact of fierce external competition and changing consumer trends:

Marketing counterattacks from natural diamonds: To maintain their status, the natural diamond industry often uses advertising rhetoric in marketing campaigns to publicly disparage lab-grown diamonds, describing them as a "boring" choice. While controversial, this rhetoric has indeed negatively affected consumers.

Diversion to value-preserving products like gold: In the current environment, diamonds have poor liquidity, and consumers are paying more attention to gold jewelry with high practical value. Therefore, in addition to dealing with the counterattacks from the natural diamond industry, lab-grown diamonds must also face the trend of consumers shifting toward value-preserving products like gold.

3. Lagging brand and channel construction, bogged down in low prices and homogeneous competition Currently, most lab-grown diamond companies have obvious shortcomings in commercial operations,:

Lack of brand premium and experience: Currently, most lab-grown diamond companies are still stuck at the level of product production and low-price competition, lacking brand-building awareness and capability. This leads to severe product homogenization, a lack of brand premium, and makes it difficult for most consumers to experience a comfortable retail scenario.

Polarized and chaotic online channels: On the one hand, online sales channels are flooded with cheap fakes, disrupting the market; on the other hand, although some traditional brands have opened online flagship stores, their overall marketing strategies are one-dimensional,.