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MillennialsChoosingLab-CreatedDiamonds

U.S.MillennialJewelryConsumerResearchStudyReport

26May2016

ConsumerResearchConductedbyMVIMarkeFngLtd.ResearchandDevelopmentforLuxuryConsumerGoods

31May2016 2

Methodology

TheConsumerResearchStudywasdeployedMay2-4,2016andcompletedby650U.S.consumerswhopurchasedorreceivedagiPoffinejewelrywithinthepast12months.Thisstudywascompletedby66%females/33%males,agerangingfrom21to35,allwithincomeof$75,000orhigher.

AllcontentiscopyrightMVIMarkeFngLtd.

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Whichofthesetermshaveyouheardof?(Selectallthatapply)

64%60%

45% 42% 41% 41%36%

32% 29%

17%

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Diamonds are mined out of the ground like other gemstones. It takes carbon billions of years deep within the earth under extreme heat and pressure to form diamonds. Diamonds came close enough to the surface for us to find through massive volcanic activity millions of years ago. Diamonds naturally come in different colors such as yellow, blue, brown, pink and the most popular, clear or colorless white. In recent years a few companies have perfected processes to ‘create’ the same carbon diamonds in laboratories within a few months. These stones are cut just like mined diamonds and can be set in jewelry. There is no way to distinguish between natural mined and lab-created diamonds without using special jewelers equipment. These stones are not plastic, glass or crystal such as CZ (cubic zirconia), Moissanite, or other non-carbon based synthetics.

ConsumerProductStatement–Lab-CreatedDiamonds

Nowthatyouunderstandwhatlab-createddiamondsare,whatdoyouthinkofthem?

(Selectallthatapply)

56%

44%

34%

13%

2% 2%

Iwouldliketoknowmore

Iwouldhavetoseetheminperson

Iwouldbuythemifthepricewasless

thenmineddiamonds

IhopethediamondsIhavenowarenotlab-createdandIdon’t

knowit

NowIdefinitelywon'tbuydiamondjewelrybecauseIwouldn'tknowifitisareal

diamond

I'mnotinterestedindiamondsatall

531May2016

Ifyouwereshoppingforanengagementring,wouldyouconsiderlab-createddiamonds

forthecenterstone?

55%

24%

21%

Yes No Notsure

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Doyouthinktheseman-madelab-createdstonesshouldbecalleddiamonds?

65%

32%

2%

Yes,becausetheyaremadewiththesamecarboningredientasnatural

diamonds,butgrowfasterinalab

No,theyarenotrealdiamonds

No,forotherreasonsREASONS GIVEN: I'm unsure, Id have to see them and compare. There's nothing like what grows in nature They are not the true definition of a diamond They need to be classified as man made because they aren’t real Not without a qualifier saying it\s lab made They tend to be misleading

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Whatisthemainreasonyouareinterestedinlab-createddiamonds?

25% 24%

18%16%

11%

7%

ThelessdestrucFveminingthathappens,

thebe^er

Theyarenotblooddiamond(usedin

war-tornareasoftheworld)

Mineddiamondscosttoomuch

IamNOTinterestedinlab-createddiamonds

Icangetabiggerlab-createddiamondfor

lessmoney

Noonecantelltheyarenotmined,sowhynotbuythem

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Howmuchdoyouthinklab-createddiamondsshouldsellforcomparedtomineddiamonds?

9%

22%

43%

9%

8%

9%

10%less

11-20%less

21–30%less

10%more

11-20%more

21-30%more

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WhichdescripHonbestfitsthesetypesofdiamonds?

15%

18%

30%

37%

Lab-GrownDiamonds

Eco-friendlyDiamonds

Man-MadeDiamonds

Lab-CreatedDiamonds

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31May2016 11

Fine jewelry shopping preference and history.

Haveyoupurchased,orwereyouwithsomeoneelsewhopurchased,FINEjewelrythatcostover

$150fromafinejewelryretailstoreordepartmentstorewithinthepast2years?

87%

13%

Yes–IpurchasedFineJewelry

Yes–Iwaswithsomeonewhomadeapurchase

1231May2016

Fromwhichretailer(s)doyouprefertopurchasefinejewelryorrequestitasagiS?(Selectallthatapply)

13%

13%

13%

14%

14%

18%

23%

28%

32%

33%

33%

35%

38%

ShoppingClub(e.g.Costco,Sam’sClub)

Walmart

BlueNile.com

NeimanMarcus

JCPenney

Veryhigh-endjewelers(Bulgari,CarFer,HarryWinston)

Jared,TheGalleriaofJewelry

Macy’s

HelzbergDiamonds

Localindependentfinejewelryretailer

Zales

KayJewelers

Tiffany&Company

Other:WebsiteonlyRetailer12%,GordonJewelers11%,Saks5thAve11%,ShaneJewelers11%,Others10%orunder

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Wasthejewelryyoupurchasedorhelpedotherstopurchaseanengagementring

and/orweddingring(s)?

49%30%

21%

Yes

No

Yes–alongwithotherfinejewelry

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Onaverage,howmuchdoyouspendonapieceoffinejewelryotherthanengagement/weddingrings?

6%

15%

22%

11%13%

11%9%

7%5%

Under$150

$151-$250

$251-$500

$501-$750

$751-$1,000

$1,001-$1,500

$1,501-$2,000

$2,001-$4,000

Over$4,000

31May2016 16

Howdoyouselecttheretailer(s)youshoporvisitbeforemakingafinejewelrypurchase?(Selectallthatapply)

45%

35% 32% 32% 30% 30%23% 23%

14% 14%

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Howdoyouresearchjewelryretailers?(Selectallthatapply)

37%32% 31% 30%

25% 23% 21%18% 16% 14%

Gender

33%

66%

Male

Female

Demographics

42%

43%

15% 21-25

26-30

31-35

AgeGroup

43%

27%

13% 16%

$75,000to

$99,999

$100,000to

$124,999

$125,000to

$149,999

$150,000ormore

MaritalStatus56%

23%12% 6% 4%

AnnualHHI

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CONTACTMVI:

MartyHurwitzmhurwitz@mvimarkeFng.com

LizChatelain

elchat@mvimarkeFng.com

MVIMarkeFngLtd.(MVI)herebydisclaimsallwarranFesrelatedtothisreport.Specifically,thisreportisprovided“asis”and“asavailable.”Tothemaximumextentpermi^edbylaw,MVIexpresslydisclaimsanyandallwarranFes,expressedorimplied,regardingthisreport,including,butnotlimitedto,anyimpliedwarranFesofmerchantability,fitnessforaparFcularpurpose,ornon-infringement.MVIdoesnotwarrantthatthereportwillmeetyourrequirementsorthatthereportwillbecompleteanderrorfree.TheinformaFoninMVIreportsmaycontainerrors,omissions,problemsorotherlimitaFons.MVIandouraffiliatedparFeshavenoliabilitywhatsoeverforyouruseofanyinformaFoninourreports.

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