Core Insights - The article highlights the transformation of a traditional agricultural county, Zhecheng, into a modern manufacturing hub for lab-grown diamonds, with an annual production exceeding 6 million carats, impacting the global jewelry industry [1][4] - The shift in consumer preferences towards lab-grown diamonds is driven by a balance of aesthetic value and cost-effectiveness, particularly among younger consumers who seek diverse options beyond luxury symbolism [1][4] - The emergence of lab-grown diamonds is reshaping the market dynamics, evidenced by a 25% quarterly drop in De Beers' raw diamond prices and the bankruptcy filing of I DO, indicating a challenge to traditional jewelers' pricing power [2][4] Industry Overview - China is the leading producer of lab-grown diamonds, with an estimated production of 22 million carats in 2024, representing a 144.44% increase from the previous year and accounting for 63% of global output [4] - The Central Plains region, particularly Henan, dominates the domestic market with an 80% share, creating a "Central Plains Diamond Belt" that exerts pressure on traditional jewelry giants [4] - Local brands like "Zheguang" have successfully penetrated the market, achieving sales of several million yuan within three months of entering e-commerce platforms, with over 90% of buyers having prior experience with gemstone-grade diamonds [4][6] Consumer Trends - A significant portion of the consumer base, 62%, engages in "self-gratifying consumption," indicating a shift in how younger demographics perceive jewelry value [4][6] - The trend of customized large carat diamonds is gaining traction, with consumers willing to pay extra for bespoke services, as they can obtain larger carat sizes at a fraction of the cost of natural diamonds [6] - Despite the positive outlook for lab-grown diamonds, 38% of consumers still hold reservations about their quality and the perceived scarcity of natural diamonds, highlighting the need for increased consumer education [8]