De Beers: what lies behind the end of synthetic diamonds
The closure of Lightbox, the synthetic diamond subsidiary launched by De Beers, speaks volumes about the future of laboratory-crafted luxury. But what does this strategic decision really hide?
The Lightbox gamble: a failed ambition?
In 2018, the giant De Beers Group caused a sensation by launching Lightbox Jewelry, its first collection of synthetic diamonds. The idea: to capture a younger clientele, sensitive to price and ethical issues. But seven years later, the project has officially been abandoned.
Why? Because the resale value of these laboratory-created stones had collapsed – a 90% drop in wholesale prices, according to Al Cook, the group’s CEO. This gradual disenchantment with the market, coupled with competitive outbidding from China and American supermarkets, precipitated the decision.
Back to natural diamonds: strategic repositioning
This closure is part of a refocusing strategy announced as early as 2024: De Beers is streamlining its portfolio and concentrating on its most profitable activities. The investments allocated to Lightbox will be redirected towards marketing and enhancing the value of natural diamonds, the Group’s historically dominant segment.
However, De Beers has not completely turned its back on laboratory diamonds. Its Oregon-based subsidiary Element Six continues to produce synthetic diamonds, but exclusively for technological uses: semiconductors, optics, quantum technologies…
And in Paris? A strong signal for luxury jewelry
This announcement could have an impact on trends observed in Parisian houses, from Place Vendôme to the new confidential galleries in the Marais. By repositioning natural diamonds as the sole reference for luxury, De Beers is sending a clear message: true brilliance cannot be manufactured, it must be discovered.
Lightbox is no more, but the case is far from closed. By favouring rarity over reproducibility, De Beers is reshuffling the cards in an industry in the throes of change. Are you on the side of natural diamonds or technology?
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