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De Beers' venture into lab-grown diamonds, under the Lightbox brand, has hit a roadblock as the company decided to discontinue its trial run of engagement rings. This move was prompted by a less than promising outlook for this particular market segment.
In a statement released on a Wednesday, De Beers acknowledged that the trial allowed them to gain valuable insights into lab-grown diamonds (LGDs) and the shifting perceptions among consumers. However, Lightbox will shift its focus away from lab-grown diamond engagement rings. Instead, it will concentrate on more promising opportunities in the fashion jewelry sector and loose stones at accessible price points.
This decision followed Lightbox's relatively quiet introduction of a limited line of engagement rings back in June. The industry's reaction was a blend of frustration and, in some quarters, a lack of astonishment. This was partly due to the fact that De Beers had gradually been scaling back some of the claims it made about synthetic diamonds when Lightbox was initially launched in 2018.
De Beers reinforced its belief that the commercial viability of many lab-grown engagement ring offerings is likely unsustainable. According to management, retailers would need to continually double the number of synthetic diamond carats sold every two years just to maintain a stable absolute gross profit.
A recent consumer survey conducted by De Beers indicated that the primary motivation behind purchasing lab-grown diamonds was their price point.
Interestingly, alongside this announcement, De Beers unveiled a marketing campaign for the upcoming holiday season. They revived the famous tagline "A Diamond Is Forever" and pledged an additional $20 million to bolster consumer demand for natural stones. De Beers CEO Al Cook emphasized the enduring appeal of natural diamonds as symbols of love and the company's commitment to investing in their future.
