De Beers has recently made a significant announcement. They've decided to discontinue the sale of lab-grown engagement rings, and this decision comes after an insightful three-month trial that reinforced their belief that lab-grown diamonds are not a sustainable commercial proposition.
In their statement, De Beers highlighted a key point - retailers would need to double the number of lab-grown diamond carats sold every two years just to maintain a flat absolute gross profit. This sheds light on the unique challenges faced by lab-grown diamonds in the market.
Lightbox, which is De Beers' lab-grown diamond division, ventured into the bridal market in June with its first-ever lab-grown engagement rings. Their tagline, "Because great chemistry deserves great chemistry," was quite catchy. These rings were priced between $500 for a 0.3-carat three-stone ring to $5,000 for a two-carat round brilliant solitaire engagement ring with a colorless/VVS+ graded stone. It was indeed a bold step into a new market segment.
Back then, Lightbox CEO Antoine Borde shared that they were conducting a small in-market test to understand consumer preferences for lab-grown diamond engagement rings and to gauge how consumers respond to clear information and accessible prices.
Now, De Beers has officially announced the conclusion of this trial, stating that they will no longer offer lab-grown engagement rings. They've mentioned that the trial provided valuable insights into lab-grown diamonds and consumer perceptions.
From my perspective, this decision indicates that De Beers is strategically refocusing on other opportunities within the jewelry market. They see potential in fashion jewelry and loose stones at accessible price points. While specific trial results remain undisclosed, this move reflects the competitive challenges faced by lab-grown diamonds compared to their natural counterparts.
I've always found it intriguing that the company which has been the main source of natural diamonds for almost a century created a division dealing in synthetic diamonds. This decision, however, showcases how established players like De Beers are adapting to evolving consumer preferences and market dynamics. This decision will undoubtedly influence the trajectory of lab-grown diamonds in the market.
Any thoughts?
#debeers #diamonds #lgd #labgrowndiamonds #naturaldiamonds #lightbox
Executive Vice President Business Development at HCT Packaging, Inc.
3moCongrats!! Amazing!!