Diamond retail in the US -- Brian Gavin of Brian Gavin Diamonds on Premium Natural Diamonds, Market Shifts, and Retail Reinvention
With rising ticket sizes but falling volumes, how has ‘value over volume’ changed your inventory and selling strategy?
The shift towards “value over volume” has fundamentally changed the dynamics of the diamond business, particularly with the rapid growth of laboratory-grown diamonds. In the 1.5-carat-and-below category — especially in G colour and lower — laboratory-grown diamonds have significantly impacted natural diamond demand. Younger consumers, in particular, are increasingly choosing laboratory-grown stones because they can purchase larger sizes at far lower prices.
At the same time, laboratory-grown prices have declined sharply, which has created challenges for businesses that invested heavily in inventory early on. However, there remains a strong market for natural diamonds, especially in larger sizes, and higher-quality categories.
Our company operates in a specialized niche. We have built our reputation around Hearts & Arrows diamonds and precision cutting, where we have long been recognized as industry leaders. Because of our proprietary standards and specialized craftsmanship, our focus has always remained on premium natural diamonds. That said, when clients request laboratory-grown diamonds, we apply the same strict cut and quality standards that define our natural diamond offering. For us, the emphasis remains on quality, precision, and differentiation, rather than simply chasing volumes.
How are retailers balancing natural and laboratory-grown diamonds? What trends do you see in consumer behaviour when it comes to demand for natural diamonds and laboratory-growns?
Retailers today are trying to strike a careful balance between natural and laboratory-grown diamonds, but the approach varies widely, depending on their business model. In our case, as an online retailer with decades of experience in the digital space, we have remained selective in how deeply we engage with laboratory-grown inventory.
Initially, there was significant excitement around laboratory-grown diamonds because of their affordability and rapid consumer acceptance. However, the steep decline in their prices created major challenges for many retailers who held inventory, as values depreciated much faster than anticipated.
Consumer behaviour has also shifted quite noticeably. In the smaller-size categories, particularly under 1.5cts, younger buyers are gravitating towards laboratory-grown diamonds because size and affordability are taking precedence over rarity or origin. Many consumers today are less emotionally attached to whether a diamond is natural or laboratory-grown, as long as the visual appeal and price point meet their expectations.
As a result, much of the laboratory-grown business today operates on memorandum arrangements and fast inventory turnover, rather than long-term stock holding. Retailers are cautious about carrying large inventories because pricing remains volatile. The natural diamond market, meanwhile, continues to hold stronger value in larger sizes, premium cuts, and rarer goods, where exclusivity and craftsmanship still matter deeply to buyers.
How have customer buying patterns changed — frequency, decision-making, expectations — and how has that altered your sales approach?
Customer buying behaviour has changed substantially over the past few years. Volumes are lower, purchase decisions take longer, and consumers are far more price-conscious than before. For example, where a business may once have sold 100 engagement rings a month at an average ticket size of $10,000, today those numbers may look more like 80 rings at significantly lower average values due to the growing mix of laboratory-grown and natural diamonds.
However, these changes are not driven solely by the rise of laboratory-grown diamonds. Broader global factors have also played a major role. Geopolitical instability, including the wars in Ukraine and the Middle East, economic slowdown in China, and uncertainty across global markets have all impacted consumer confidence and luxury spending.
The jewellery industry globally — whether in the United States, India, China, or Japan — is navigating a period of adjustment. Customers today expect greater transparency, better value, and more flexibility in their purchasing decisions. As a result, our sales approach has become more education-driven and customer-centric, focusing on quality differentiation and long-term value, rather than purely transactional selling.
Have geopolitical shifts and supply chain changes — particularly involving India — affected your sourcing, pricing, or inventory planning?
Geopolitical developments and supply chain disruptions have certainly impacted the industry. When tariff concerns emerged, many Indian manufacturers moved inventory into the US market ahead of potential changes, which temporarily altered supply flows and pricing dynamics.
In our own case, we made significant inventory investments in early 2023 as the market emerged from the COVID period. At that stage, pricing was considerably higher, and subsequent market corrections naturally affected valuations. Like many businesses, we had to adjust pricing to remain aligned with market realities.
That said, our sourcing structure is somewhat unique because much of our inventory is manufactured in Antwerp, and tailored specifically to our niche requirements. As a specialized Hearts & Arrows company, we operate differently from broader commodity-driven diamond businesses.
Even in a challenging market, premium craftsmanship and superior cutting standards continue to command recognition. While market pressures have forced pricing adjustments across the industry, our focus remains on delivering exceptional quality. We often describe our diamonds as the “Porsche” of the industry — positioned at the highest level of precision, performance, and excellence.
