Smiling Rocks : A reason to smile.

Zulu Ghevariya the CEO and creative director of Smiling Rocks shared his view in an exclusive interview with Lab Grown Times.

1. The LGD industry has been on a roll for the last few years. It would be great if you could share the highlights of the year gone by (2022).

To be honest, this industry is expanding and growing in 360 degrees but at the same time we have seen the flat curve in the industry due to the global economic situation in the 3rd and 4th quarter. I have seen these two quarters were slower than the first 2 quarters of 2022.

2. What is your outlook for the New Year ?

It looks like America has escaped the recession which is great news for the worldwide economy where we don’t expect a big rise but a flat and better economic scenario everyone is expecting. In those conditions when the economy is playing a certain role, luxury will be still the most favorite for everyone. Lab grown diamond is checking many boxes of consumer’s interest, such as the price point, desired carat sizes etc. So I think 2023 is bright for the lab grown diamond industry compared to the mined industry.

India is one of the largest and potential markets after the US and China as it is holding the largest mid-income consumers (middle class). This is the biggest potential for lab grown diamond as almost every household is available to address the industry. It is definitely able to cater and fill the space for customer’s taste and preference. I can see India is progressing towards introducing lab grown diamonds as retailers are launching independent brands, retailers have started co-existing lab grown diamonds in their existing stock/inventory in their store. Overall, I see that Indian retailers are becoming more positive on lab grown diamonds and they know it is a strong potential market.

come up with a solution/idea to gain more confidence of consumers as the potential of selling lab grown diamonds is still huge and is increasing despite the price. The consumers are still purchasing lab grown diamonds no matter if they have experience or notices the fluctuation in the price. They are seeing the cost comparisons, yet they are still purchasing because the price is not affecting their decision as much due to their love towards these diamonds. Hence the industry also has to look at this point.

5. While the US is currently the biggest market for LGDs, which are the potential markets that are opening up?

Lab grown diamond industry has lots of positive sides but it certainly holds a trigger point within itself in regard to the capacity of accelerating the production which was already foreseen in Day 1 of this industry. The point is that as long as the numbers of growers are increasing, the production capacity increases and the desperation of sales grows compared to its market size. This has driven lots of growers to sell the product at an aggressive price point, which led to hurting market and customer’s sentiments and shook the investor’s interest as the price was the biggest factor affected last year. The industry has seen a sudden downfall in the prices too. This is a challenge the industry has to deal with and collectively

The US is definitely the #1 market today in the world. But I always say LGD is the greatest solution for the mass luxury user countries, especially China and India becoming a top potential market. The European market is aggressively spreading its share in the LGD industry as we have seen a rapid growth in the recent years.

6. The Indian government has identified the LGD industry as an ideal candidate for the Make in India/ Aatmanirbhar program . Please share your thoughts on what support the industry needs from the Govt ?

The Indian government has certainly emphasized and banged on the idea of lab grown diamonds. They are absolutely correct that LGD is the best luxury product the Indian government can address making in India and supporting their Aatmanirbhar Program. The reason is that the diamond is grown, cut and polished in India as it is the largest market in the world and can sell to India's large population. Which means the economy of India is circulated within the country itself and creating job opportunities, lots of opportunity for the industry players and consumers. The industry, in turn, would want the government to subsidize on expanding the growing facilities, create a specific zone in which the whole industry can be backed and collectively run together.

Lab Grown diamonds is a potential product that can be grown using green energy, the government can back up this energy to the businesses which also could fulfill the requirement of the sustainable product line.

The Indian government can drive the possibility of backing lab grown diamond business more compared to other countries. As other countries would also think of growing diamonds within, hence if the Indian government would like to support the Indian growers, they can think of imposing import duties on lab grown diamonds from outside. This will become more beneficial to the Indian Growers.

7. What are your views on the price wars in the LGD industry ?

As I always say, the lab grown diamond industry is on its teething stage right now. It is just the beginning of the whole industry. There are no set parameters of the pricing or the facilitation mined diamond industry has today. The LGD industry has to find its own way to set the prices. Today, every grower has its own cost; hence the growers are acting in its own benefit. They might not be looking at the consumer sentiments right now with the price fluctuation, but eventually it will affect them as well. I would suggest the growers to start thinking on this point rather than putting their own benefit upfront. The industry will survive, they will as well. If they are damaged by enjoying short profit or gain, the industry will be affected, which we have seen in the last 6 months.

8. The natural diamond industry has been vociferously refuting the claim that LGDs are no more sustainable than mined diamonds. Can you make a point by point case in favour of LGDs ?

Both industries are putting the points against each other on sustainability. I am not saying that the LGD industry is 100% sustainable. It does use electricity generated through fossil fuel and uses a certain amount of energy to grow a diamond. But compared to what? Saying lab grown diamond is sustainable is not true, but it is earth-friendly, it has lower carbon emission which can be proven by the certificates, checking the power usage for a certain amount of carat to be grown. This is a subject to prove and claim. If the LGD industry is claiming itself to be sustainable, it should put forth accurate points. Sustainability is not a word that can be defined by solelying looking at the use of energy (or the type of energy), it is a wider subject. The LGD business should put its foot forward and claim other aspects as well such as their ESG+ assessments, how their business is operating etc. The same mined diamond industry can be worked on to claim itself sustainable.

9. Please share your company’s business philosophy and its philanthropic activities.

The New York based premium brand Smiling Rocks was launched in 2019. It aims of building a chain of smiles through sustainable luxury.. The co-founders’ dream is to refashion the industry by offering stunning luxury design collections as a means of making the world a better place. It is working on a philanthropic business where 3% of their jewelry and 1% of loose diamond B2B business goes to 4 different charity sectors, Animal/Wildlife Protection, Medical Support, Education Support and Environmental Protection. Smiling Rocks has a wide range of products from Essentials basics, engagement and bridal jewelry for men and women, fashion collections and high jewelry.