De Beers has announced it will stop producing synthetic diamonds for its Lightbox consumer brand as part of a strategic reorientation.
Instead, the company will focus on manufacturing and selling natural polished diamonds.
“We believe the value of lab-grown diamonds lies in technology rather than in jewelry,” stated Al Cook, De Beers CEO, during the company’s JCK Las Vegas breakfast event on Friday.
Element Six Reorganisation
The company’s Element Six division will consolidate its three chemical vapour deposition (CVD) plants into a single $94 million facility in Portland, Oregon. This facility will become a technology hub dedicated to producing diamonds for industrial applications.
“This starts with concentrating all our resources in a single world-class CVD hub,” Cook added, emphasising the company’s ambition for Element Six to lead in synthetic-diamond technology solutions.
Impact of Lab-Grown Diamonds
De Beers’ decision ends its six-year foray into lab-grown diamonds for the Lightbox jewelry line, which launched in 2018. Initially, Element Six produced synthetic diamonds for industrial and research purposes. However, over the past six years, the market for lab-grown diamonds has seen significant price declines, leading to reduced retail margins and diminished appeal for jewellers. The industry also voiced concerns when De Beers briefly introduced lab-grown diamond engagement rings.
In a recent move reflecting sector trends, Lightbox reduced its retail prices by up to 40%.
Future of Lightbox
Despite this strategic shift, Lightbox will continue as a consumer brand. Cook confirmed in an interview with Rapaport News that the brand has sufficient inventory to maintain sales in the near term. Future plans for Lightbox are yet to be decided, but discontinuation is not an option under consideration.
“Core to the Lightbox proposition has been [that it is] carbon-neutral,” Cook noted. “We’re very proud it’s made in America. We intend to stick with that element of the brand.”
Reinvigorating Natural Diamonds
De Beers’ renewed focus on natural diamonds forms part of its “Origins” strategy, which aims to revitalise the market through enhanced category marketing and retailer partnerships. This includes a collaboration with Signet Jewelers, featuring sales associate training on the natural-diamond narrative. Additionally, De Beers will introduce Diamond Proof, an in-store instrument designed to detect lab-grown diamonds.
