SARINE: Sarine’s Expansion in Japan during Its Genesis Period – Special Interview with Mr. Shigeyuki Ishida

Amidst the G7’s implementation of measures against Russian-origin diamonds, the need for traceability has surged. Sarine has been at the forefront, advancing traceability not just for specific companies or brands but as a comprehensive system. The relationship between Sarine and Japan dates back 30 years, with Mr. Shigeyuki Ishida playing a pivotal role in introducing Sarine’s systems to Japan since its early days.

Shigeyuki Ishida: Mr. Ishida, born in 1962 as the second generation of a diamond importing company, pursued his education at Japan University and Hebrew University of Jerusalem. During his studies, he also learned Hebrew at Ulpan Meir language school. His career in the diamond industry took him to Antwerp, Belgium, where he became a member of Japan’s first specialized diamond company. In 2016, he was honored as a Diamonds & Antwerp Ambassador by the Antwerp World Diamond Centre (AWD), actively promoting Belgian diamonds in Japan. He currently holds the position of representative of the Japan Grown Diamond Association.

The Journey to Sarine’s Expansion in Japan: Sarine’s origins can be traced back to a small enterprise established by five owners within Israel’s colored stone industry. Their initial creation was “Robogem,” an automatic polishing machine for colored stones, not diamonds. They later developed “Diamond Dimensions,” a non-contact proportion scope that could measure diamonds by capturing their shadows. This innovation was groundbreaking, as it allowed for precise measurements of all diamond dimensions, a significant advancement from the previous method of measuring the table diameter by aligning the diagonals of an eight-sided diamond. Recognizing the importance of this technology, Mr. Ishida proposed its introduction to Japan’s major gemological institution, the Central Gemological Laboratory (Chuo Houshiken). The adoption of this technology marked a turning point, and Sarine went on to install about 12 units of the proportion scope at the laboratory.

Initially, Sarine was known for selling jewelry-related equipment. Their “Galaxy” machines became ubiquitous in major diamond processing centers like India and Bangkok. However, as the market reached saturation, Sarine pivoted towards a more consumer-oriented business model, incorporating software into their offerings. Today, Sarine is recognized more for its software solutions than its hardware products.

“Evaluating the ‘Brilliance’ of Diamonds Beyond the 4Cs with ‘Light Performance Grading’”

Sarine Technologies has introduced a measurement system called “Sarine Light,” which allows for the assessment of a diamond’s brilliance. This was about 10-15 years ago. With this machine, it became possible to measure the brilliance of diamonds, which was quite shocking to the industry. Various jewelry stores that claimed their diamonds were beautiful could now demonstrate this with numerical values and grades.

At that time in Japan, the “Hearts & Arrows” cut was becoming popular. Although this cut is known for its heart and arrow shapes, it can be achieved with a cut grade of very good or good, not just excellent. However, Sarine’s Light Performance grading standard, known as Ultimate ???, is a comprehensive evaluation of brilliance, and not all diamonds can be recut to achieve this highest rating. Brilliance and cut grading are related but distinct aspects. Undoubtedly, the most brilliant diamonds are the best because diamonds are the “only gemstone enjoyed for their brilliance.” Therefore, the light performance machine created by Sarine has significant meaning. Currently, the price is determined by the rare value standard of the 4Cs, and brilliance does not yet affect the price. However, I believe that in the future, the value of a diamond should be determined by “4Cs + Brilliance,” and Sarine has made this possible.

When the Sarine Light system was first introduced to specialty stores nationwide, many accepted it smoothly, saying it provided further validation for the beautiful diamonds they were already selling and allowed them to explain to customers that diamonds with beautiful brilliance are the best, regardless of the 4Cs. However, some were concerned that their existing inventory would become unsellable. Looking back now, it seems that only companies that embraced the new technology have been able to grow.

When Sarine Light was first announced, many people were unfamiliar with Sarine Technologies. From Japan’s perspective, Israel was seen very differently by many. Nowadays, Israeli technology is recognized as outstanding, so detailed explanations are no longer necessary. However, at that time, we had to explain the excellence of Israeli technology to gain understanding and develop the market.

“Traceability” and “Journey” Becoming Essential for Natural Diamonds

Subsequently, Sarine considered a system that would create profiles for diamonds themselves, essentially digital certification. This was about 6-7 years ago, relatively recent. Again, there was resistance from those who found it difficult to keep up with new things and felt it was a different direction from what they had been doing. However, I personally believe that the Japanese diamond industry must adapt to these changes to survive.

With the emergence of lab-grown diamonds, Sarine’s creation of “DIAMOND JOURNEY Traceability” is very timely. Both lab-grown and natural diamonds can achieve the highest light performance rating of Ultimate???. So, how should retailers answer the simple question from customers, “Why is there such a price difference between lab-grown and natural diamonds?” The answer lies in the story of natural diamonds, which took 3 billion years to form. They crystallized from elements subjected to high temperatures and pressures from magma and the earth’s surface, carried by magma to the mantle and brought near the surface through kimberlite. These diamonds are mined in places like Canada, South Africa, or Botswana, then sorted in Antwerp, polished in various locations like India or Bangkok, and finally arrive in Japan to be designed into rings. Isn’t ￥200,000 a reasonable price for such a journey? Without telling this story, the value of natural diamonds cannot be conveyed. Additionally, Japan will inevitably strengthen measures like the United States in response to the G7’s sanctions against Russia (prohibiting the import of Russian diamonds). As a result, traceability and journey will become absolutely necessary for natural diamonds.

Lastly, what I want to say to those in the industry today is that technology cannot be stopped. We must think about how to make it our own and transform it into business. It’s not about whether we want to do it or not. Lab-grown diamonds are also a mass of technology. If we don’t think about how to incorporate this into our business, we will likely decline.