US Bridal Market Disruptors
To identify new entrants into the United States bridal market and how their presence is impacting the competition.
- Diamond Foundry is a new entrant in the bridal market that "uses plasma reactors to turn diamond “seeds,” or tiny shards of diamond, into gemstones."
- Founded in 2012, Diamond Foundry manufactures a variety of jewelry, including engagement rings. So far, it has raised $100 million in funding.
- The company has a facility in San Francisco and Washington, as well as a polishing factory located in China. It produces 100,000 carats yearly.
- Well-known jewelry brands like Swarovski, as well as trendy direct-to-consumer engagement ring brands like Vrai & Oro, rely on diamonds manufactured by Diamond Foundry. These diamonds "retail for 20% to 25% less than their mined counterparts."
- According to the founder of Diamond Foundry, R. Martin Roscheisen, the Diamond Producers Association (DPA) is actively blocking the efforts of his company to advertise jewelry produced with Diamond Foundry diamonds.
- A 2016 report by Morgan Stanley reveals that man-made diamonds represent just 1% of the global rough-diamond market ($14 billion). However, "the DPA appears to consider them a credible threat."
- In 2017, the DPA spent $57 million on its marketing which included a campaign known as “Real Is Rare”.
- Martin Roscheisen revealed that Diamond Foundry wants to drive the prices of diamonds down. The company has been listed on Inc's 25 Most Disruptive Companies, as well as CNBC’s Top 50 Disruptors.
- In response to this new threat, De Beers — a major player in the bridal market that previously encouraged consumers to patronize "real" precious stones, has recently launched a new jewelry brand "that features synthetic diamonds."
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