Podcast Summary

In this episode, our Opinionated Marketers talk about De Beers’ shift of lab-grown diamonds to industrial use and the renewed emphasis on natural diamonds in jewellery, highlighting how disruptors can themselves be disrupted. They also explore the ecological and energy considerations of synthetic versus mined diamonds, as well as the growing copper shortage and initiatives to recycle old electrical cables, underlining the rising importance of sustainability in marketing.

 

Key Points

  • De Beers is moving lab-grown diamonds to industrial use while promoting natural diamonds in the jewellery market.
  • Disruptors can be disrupted, highlighting the need for strategic adaptability in marketing.
  • The high energy use of lab-grown diamonds raises ecological questions compared with mined diamonds.
  • Households are encouraged to recycle old cables to help address the growing copper shortage.
  • Sustainability and responsible sourcing are becoming increasingly important in marketing strategies.

 

Podcast Transcript

These transcripts are auto-generated.

 

Charles N (00:53.588)
Right, okie dokie. Hello and welcome to Opinionated Marketers, back after a break with me, Charles Nixon, and Kiran Kapur, who is bubbly and full of energy from her holiday. I think you’ve been looking at some very interesting things—recycling and diamonds—but not in the same context.

Kiran (01:12.910)
Okay, let’s start with diamonds, because that was the fun one. De Beers is one of the world’s largest producers and retailers of diamonds. A little while ago, the idea of lab-grown diamonds became a reality, and companies started selling them. De Beers actually went through a period of downgrading their entire back catalogue because they thought the world was going to move entirely to lab-grown diamonds.

Six years ago, De Beers got in on the act and started creating their own lab-grown diamonds. Now, recently, as in July this year, they announced that they are going to move lab-grown diamonds purely to the industrial marketplace, because they can be flawless and are safer for industrial use. In the jewellery marketplace, however, they decided that because the prices of lab-grown diamonds have dropped so dramatically, people are starting to think, "That’s cheap—I don’t want something cheap in my engagement ring or special piece of jewellery." So mined diamonds, which hold their value, are becoming more important.

What I found interesting is that this is a case of disrupting the disruptor. De Beers had a marketplace, lab-grown diamonds came in and disrupted it, and now De Beers is almost fighting back. Rather than giving in, they are saying, "No, no, no—we’re going to keep pushing natural diamonds, because lab-grown diamonds have become too cheap. What you want is a proper diamond." From a marketing perspective, I found that really fascinating.

Charles N (03:01.078)
Hmm, yes indeed. Do you think this is done purely because of market trends, or was the argument that synthetics were better for the planet? Perhaps… I’m not sure. It’s an interesting question, isn’t it? Are lab-grown diamonds better, or are natural diamonds better for the planet ecologically? I’m not 100% sure where the balance lies.

Kiran (03:34.102)
No, it’s a really interesting question. I did a quick look this morning, but only briefly, to see if anyone had done obvious research. Lab-grown diamonds take a lot of energy to produce. But of course, there’s also conflict diamonds, blood diamonds, and mining impacts. It’s quite tricky to weigh up.

It also brought to mind Ozempic. We’ve talked about Ozempic many times on this podcast. For anyone unaware, it’s a weight-loss drug that has become popular, particularly in the States, where you can get it privately, whereas in many other countries it must be prescribed. According to my favourite BBC podcast, When It Hits the Fan, Ozempic is no longer seen as cool. In Hollywood circles, it’s considered a bit inferior for weight loss. Using it implies you lack willpower.

They suggested that even Ozempic, as a disruptor, may now be disrupted itself. Because it’s so easy, people might think, "Maybe we shouldn’t use Ozempic." Again, it’s interesting from marketing and social trend perspectives.

Charles N (04:58.412)
Yes, but I don’t think it will significantly dent the demand for Ozempic. The argument for losing weight by willpower or alternatives has existed forever. People may just not broadcast how they do it, or they may use a less-known alternative brand.

The energy use aspect is particularly interesting. Bitcoin mining, for example, is energy-intensive. The AI course I took last week noted that training a new GPT version requires electricity equivalent to the entire city of Amsterdam. That’s huge energy consumption.

This brings up the issue of power sources. De Beers’ synthetic diamond production is probably very costly, especially in South Africa, where the power supply has been critical for some time. From a marketing perspective, the idea of an ethical product is increasingly important—not only in terms of environmental impact but also in terms of energy consumption and its sourcing.

Last week, I believe Microsoft proposed several billion dollars for recommissioning the Three Mile Island reactor so they can power their servers with green energy.

Kiran (07:38.038)
Interesting! I missed that. That’s a fascinating approach, because AI energy use is enormous.

Charles N (07:48.756)
Exactly. Almost everything we do now relies on cloud servers, from podcasts to e-commerce analytics. Non-polluting energy is becoming increasingly critical as climate change progresses. The fact that a company is recommissioning a nuclear power station is significant.

Kiran (08:23.298)
It is. Another point I noticed this morning in The Guardian is that we are running out of copper. Demand for copper, driven by solar power and other technologies, is increasing. A charity called Recycle Your Electricals encourages households to recycle old cables and electrical items. They estimate the average household throws away about 23 cables in a short period.

If properly recycled, a lot of copper can be recovered, instead of ending up in landfill. I found the suggestion interesting, especially the marketing angle—“You can help recycle your electricals,” rather than just “We’re running out of copper.” They even call it the “drawer of doom.”

Charles N (09:54.486)
That sparks a lot of thoughts. Recycling precious metals is becoming increasingly critical, whether it’s copper in Chile or other metals from China. About 10–15 years ago, there was a UK project called the Wee Man—a 30-foot statue made of old white goods and electrical cabling, highlighting waste that needed recycling.

Most households likely have redundant devices, like computers, iPads, or phones, which contain valuable metals. Recycling appeals to the ethical side, but eventually, it may evolve into a financial market. Costs are significant for extracting precious metals. Even phone plugs change, rendering old cables obsolete, but the industry doesn’t account for that, which may require legislation.

Kiran (12:15.104)
Yes, legislation will need to be explored. We all have equipment in a “drawer of doom” or cupboard because we’re unsure what to do with it. It’s a whole other area.

Charles N (12:29.868)
Yes, again, this ties into ethical products and recycling. The new marketing mix should consider end-of-life recycling. Manufacturers should build in the ability to recycle products at the end of their lifecycle. Interesting stuff. Well done. Nice…

Kiran (12:59.022)
You…

Charles N (12:59.724)
…items to talk about after a break. I look forward to continuing the discussion next week. Thank you very much, Kiran. Nice to talk with you.

Kiran (13:09.102)
Thanks, Charles.