Lightbox, the lab-grown diamond brand initiated by De Beers Group in 2018, underwent a significant pricing adjustment in the latter part of last year, amidst a decline in wholesale prices for lab-grown stones.
In the fourth quarter, Lightbox implemented a substantial reduction in the prices of its standard lab-grown diamonds, characterized by G-J color and VS clarity, dropping from $800 per carat to $600 per carat.
Moreover, its premium range, dubbed “Finest,” saw a price reduction to $1,000 per carat, down from the previous $1,500 per carat. These top-quality diamonds, boasting colorless attributes (D-F) and VVS clarity, constitute Lightbox’s elite offerings.
However, the brand retained its pricing for its line of faint color (K-M) diamonds with SI clarity, marketed as “Basics,” at $600 per carat, opting not to alter the pricing for these goods.
The price adjustment initiative, which transpired during the fourth quarter and concluded in January, was confirmed by the brand.
Antoine Borde, CEO of Lightbox, emphasized the brand’s commitment to providing lab-grown diamonds at fair and competitive prices, citing ongoing efforts to align pricing structures with market dynamics and consumer expectations.
He stated, “Our clear objective, from the beginning, has been to offer our lab-grown diamonds at a fair and reasonable price. To remain competitive in a rapidly changing landscape and pass our cost efficiencies onto consumers, we have been conducting research to align on the best price for the brand.”
Borde indicated that consumers can anticipate further adjustments to pricing in the coming months as the brand evaluates the outcomes of its pricing trials to establish a new, permanent price framework for its lab-grown diamonds.
The attention garnered by Lightbox’s fourth-quarter pricing trial intensified following Anglo American’s preliminary financial results for 2023, wherein the parent company of De Beers highlighted the impact of lab-grown diamonds on the market.
Anglo American acknowledged that lab-grown diamonds gained market share from natural diamonds in the previous year, attributing this trend to the declining value of man-made diamonds. However, it indicated a belief that this trend might not persist as the value of lab-grown diamonds continues to decrease.
The company underscored the anticipated repercussions of significant price reductions in retail, particularly referencing the ongoing pricing experimentation by the Lightbox brand.
As reported previously, De Beers’ total sales in 2023 experienced a 35 percent year-over-year decline, totaling $4.3 billion, with rough diamond sales down by 37 percent to $3.63 billion. Anglo American accounted for a $1.6 billion write-down in the value of De Beers.
