Lab-created diamond brand Lightbox Jewelry will experiment with reduced prices in a bid to navigate wholesale declines.
Lightbox Jewelry is operated by the De Beers Group. In a report published on 22 February, parent company Anglo American said that decreased prices are expected to reinforce the difference between lab-created and natural diamonds among consumers.
“The wholesale prices of lab-grown diamonds are falling sharply, leading to financial challenges at some leading lab-grown diamond producers,” the statement reads.
“These price declines are expected to lead to further substantial reductions in retail prices, with De Beers’ Lightbox brand testing significantly lower prices for its products.”
Lightbox’s current model has a base price of $USD800 ($AUD1,226) per carat, while its high-end collection is priced at $USD1,500 ($AUD2,300) per carat. Lower-quality Lightbox Basics stones are sold for $USD600 ($AUD920) per carat.
Under the test, standard products will retail at $USD600 ($AUD920) for loose stones, while the Finest line will be sold at $USD1,000 ($AUD1,533) per carat.
“The test is focused on ensuring Lightbox reflects prevailing [lab-grown diamond] sector dynamics,” a spokesperson told Rapaport News.
Lightbox was launched in 2018 and is based in Portland, Oregon, producing more than 200,000 diamonds annually.
The report referred to the ongoing ‘bifurcation’ of the market, as lab-created and natural diamonds are expected to become distinctly different products despite their shared characteristics.
“It is still assumed that lab-grown diamonds will become clearly established as a product distinct from natural diamonds, as is increasingly clear in the market today given the significant and clear price and consumer-offering differential,” the statement reads.
“The model forecasts an imminent bifurcation between lab-grown and natural-diamond product offerings, with only limited residual impact on the natural-diamond market in the medium to long term.”
As recently as September, Lightbox stated that there would be no change to the pricing strategy. The brand also discontinued a range of lab-created diamond engagement rings, suggesting the model was ‘likely unsustainable.’
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