The prosperity of the industry is expected to continue, and the production and sales are booming in the future. The team’s last in-depth report on cultivating diamonds elaborated on all parts of the industrial chain of the diamond industry. Based on the decline in the output of natural diamonds and the gradual release of the production capacity of cultivating diamonds, we expect the penetration rate of cultivating diamonds at the production end to be further improved; In terms of end consumption, with the change of consumers’ concept, including the change of concept driven by the entry of well-known brands, the increase of the proportion of self pleasing demand and the preference for environment-friendly production, the cultivation of diamond retail end is expected to continue to increase in volume. In conclusion, the cultivation of diamond industry is expected in the future, and the prosperity of production and marketing will help the industry rise.
Brand positioning has both the attributes of marriage and love, and makes efforts to promote the development of retail end through consumer education. This paper focuses on the changes of cultivating diamond brand. It can be seen that in recent years, natural diamond manufacturers, cultivating diamond manufacturers, fashion jewelry brands and emerging jewelry brands are actively developing the layout of cultivating diamond retail. Brand positioning may be slightly different, including focusing on fashion jewelry and involving marriage and love needs. We believe that as the brand side makes more efforts in consumer education and improves consumers’ cognitive ability to cultivate diamonds, it will probably get a share in the diamond consumer market by virtue of cultivating diamond’s low price advantage, environmental protection and scientific and technological attributes. The whole industry is expected to continue the high boom under the background of massive supply and iterative demand.
The two ends of supply and demand work together, and the downstream consumer market has broad space. On the supply side, we believe that the global cultivated diamond production will basically have a short-term large-scale period from 2021 to 2023, but then the speed of capacity release will gradually decline to a stable growth rate. Since the production capacity of cultivated diamond and industrial diamond can be switched quickly, we believe that there will be no surplus in cultivated diamond supply. On the demand side, at present, the consumption of cultivated diamond jewelry in the United States accounts for about 80% of the world, the consumption is about US $3 billion / year, and the market penetration rate is about 7%. We believe that with the continuous establishment of consumers’ minds by brands, the penetration rate of cultivated diamond in the current diamond consumption stock market is expected to continue to increase. Based on relevant data, we believe that by 2025, the scale of the global diamond cultivation terminal market is expected to exceed US $16 billion, of which the Chinese market is expected to exceed US $4 billion.
It is suggested to pay attention to the changes in the supply of diamond press for production and Cultivation under high temperature and high pressure, as well as the demand iteration of retail end in China and the United States. Recommended target: 1) [ Henan Liliang Diamond Co.Ltd(301071) ]: artificial diamond head enterprise, cultivating diamonds as a new business growth point. Suggestions: 2) [ North Industries Group Red Arrow Co.Ltd(000519) ]: old military enterprises, cultivating pioneers in the diamond industry; 3) [ Henan Huanghe Whirlwind Co.Ltd(600172) ]: a supplier of superhard materials with a long history. Its R & D advantages help adjust the product structure; 4) [ Sinomach Precision Industry Co.Ltd(002046) ]: cultivate diamond producers by six sided press and CVD method, benefiting from industry dividends; 5) [brilliant earth]: a sustainable fashion jewelry brand that sells conflict free diamond products.
Risk tips: macroeconomic and market demand fluctuation risk, raw material price fluctuation risk, technical risk, market competition intensification risk, industry development less than expected risk
