The closure will enable De Beers Group to reallocate investment to initiatives focused on reinvigorating desire for natural diamonds through category marketing
De Beers Group, a diamond mining major, has notified its intention to close its lab-grown diamond (LGD) jewellery brand, Lightbox. As part of the closure process, De Beers Group is discussing the sale of certain assets, including inventory, with potential buyers.
The Group stated that the business was brought with transparent linear pricing of USD 800 per carat. Since then, LGD prices in the jewellery sector have fallen 90 per cent at wholesale, tracking closer to a cost-plus model as they have diverged from natural diamond prices. Reflecting this sharp price decline, De Beers Group intends to discontinue the Lightbox business, as per the official statement.
The closure will enable De Beers Group to reallocate investment to initiatives focused on reinvigorating desire for natural diamonds through category marketing.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds…Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector,” stated Al Cook, Chief Executive Officer, De Beers Group.
De Beers Group added that it will work closely with employees, retail partners, suppliers and other stakeholders to ensure a smooth process over the coming months. Customers will continue to receive support for existing purchases, including warranties and after-sales services, during the closure process, it said.
