More Retailers Selling Lab-Grown Diamonds

 

About 38% of independent jewelers are now carrying lab-grown diamonds, according to a new survey by MVI Marketing for the International Grown Diamond Association and InStore magazine.

Consumer awareness of man-made gems is also rising: The company’s MVEye survey of more than 1,000 jewelry consumers found that 80% were aware of lab-grown diamonds. By contrast, in 2018, 58% had heard of the category. A decade ago, less than 10% had.

Some 8% said they owned jewelry with lab-grown diamonds, up from 6% in 2018.

Nearly one-third of jewelry consumers said they learned about lab-grown diamonds from retail jewelers, while another 21% found out about them through social media, specifically the Facebook, Instagram, and YouTube platforms.

The survey found that 22% of jewelry consumers were skeptical at first when they heard about lab-grown diamonds, but 44% wanted to know more, and 17% said their initial reaction was positive.

Over one-third (34%) said they were offered lab-grown diamonds while shopping for an engagement ring, up from 25% in 2018.

While the Federal Trade Commission has specifically warned companies not to use “general environmental benefit claims” like “eco-friendly” or “sustainable” to describe lab-grown (or any) products, the poll found that many consumers had heard that message and retained it, and often used those phrases to describe the category.

Most consumers, however, were simply motivated by the chance to save a little money and get a bigger piece for less, with 31% citing that is the main reason for their purchase.

“At the end of the day, the price-to-size equation is what gets them to open their wallets,” says MVI Marketing CEO Marty Hurwitz. The “eco” message is “the icing on the cake for younger consumers, but it’s not the primary value driver.”

The survey found the most recognized brands in the lab-grown space were e-tailer Brilliant Earth (35%); Diama by Swarovski (34%); Pure Grown Diamonds (27%); Diamond Foundry (24%); Lightbox (24%); Diamond Nexus, which primarily sells simulants but sells lab-growns through another division (22%); and Renaissance (21%).

Hurwitz notes that many retailers said there was a need for “greater unification of marketing presentation” for lab-grown diamonds, so there was a greater clarity about what terminology and sales techniques were allowed and most effective.

Overall, retailers reported mixed results for how their jewelry business was faring in 2020, with 39% saying business was up, 33% finding it down, and 19% reporting it was equal to pre–COVID-19.

As for where consumers wanted to shop this year, 48% said a jewelry chain, 42% said a high-end jeweler, 36% said a local independent, and 15% said online.

As for how they intended to shop during the COVID-19 pandemic, 36% said they wanted to only buy online, 28% said they were looking to visit a store, 17% said they preferred an in-store private appointment, and 11% said they wanted to visit the store and buy online later.

Source: DCLA

More Retailers Selling Lab-Grown Diamonds

 

About 38% of independent jewelers are now carrying lab-grown diamonds, according to a new survey by MVI Marketing for the International Grown Diamond Association and InStore magazine.

Consumer awareness of man-made gems is also rising: The company’s MVEye survey of more than 1,000 jewelry consumers found that 80% were aware of lab-grown diamonds. By contrast, in 2018, 58% had heard of the category. A decade ago, less than 10% had.

Some 8% said they owned jewelry with lab-grown diamonds, up from 6% in 2018.

Nearly one-third of jewelry consumers said they learned about lab-grown diamonds from retail jewelers, while another 21% found out about them through social media, specifically the Facebook, Instagram, and YouTube platforms.

The survey found that 22% of jewelry consumers were skeptical at first when they heard about lab-grown diamonds, but 44% wanted to know more, and 17% said their initial reaction was positive.

Over one-third (34%) said they were offered lab-grown diamonds while shopping for an engagement ring, up from 25% in 2018.

While the Federal Trade Commission has specifically warned companies not to use “general environmental benefit claims” like “eco-friendly” or “sustainable” to describe lab-grown (or any) products, the poll found that many consumers had heard that message and retained it, and often used those phrases to describe the category.

Most consumers, however, were simply motivated by the chance to save a little money and get a bigger piece for less, with 31% citing that is the main reason for their purchase.

“At the end of the day, the price-to-size equation is what gets them to open their wallets,” says MVI Marketing CEO Marty Hurwitz. The “eco” message is “the icing on the cake for younger consumers, but it’s not the primary value driver.”

The survey found the most recognized brands in the lab-grown space were e-tailer Brilliant Earth (35%); Diama by Swarovski (34%); Pure Grown Diamonds (27%); Diamond Foundry (24%); Lightbox (24%); Diamond Nexus, which primarily sells simulants but sells lab-growns through another division (22%); and Renaissance (21%).

Hurwitz notes that many retailers said there was a need for “greater unification of marketing presentation” for lab-grown diamonds, so there was a greater clarity about what terminology and sales techniques were allowed and most effective.

Overall, retailers reported mixed results for how their jewelry business was faring in 2020, with 39% saying business was up, 33% finding it down, and 19% reporting it was equal to pre–COVID-19.

As for where consumers wanted to shop this year, 48% said a jewelry chain, 42% said a high-end jeweler, 36% said a local independent, and 15% said online.

As for how they intended to shop during the COVID-19 pandemic, 36% said they wanted to only buy online, 28% said they were looking to visit a store, 17% said they preferred an in-store private appointment, and 11% said they wanted to visit the store and buy online later.

Source: DCLA

LVMH’s $16b Tiffany takeover is back on

 

The largest deal in luxury is back on after New York’s famed jeweller Tiffany agreed to a slightly reduced offering price from LVMH in Paris.

LVMH will now pay $US131.50 for each Tiffany share, putting the total price tag at $US15.8 billion ($22.5 billion), down from the $16.2 billion that was first offered earlier this year.

Tiffany’s

The owner of Louis Vuitton, Christian Dior, Fendi along with a basket of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs. But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.

Rumours that the two luxury companies had rekindled talks began to surface in recent days.

“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH’s billionaire CEO Bernard Arnault said in a prepared statement on Thursday.

Tiffany & Co’s flagship store in Sydney. The company has hired advisers to review LVMH’s offer but has not yet responded to it

Tiffany sues LVMH for reneging on $22b deal as France steps in
Tiffany, with its famed blue boxes, has in recent years attempted to regain the luster of the “Breakfast at Tiffany’s” era as its customer base ages.

It’s shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.

LVMH, led by billionaire Arnault, a consumate dealmaker, believes Tiffany will strengthen its position in high-end jewellery and in the US market.

LVMH is also making a bet on China’s economy, where Tiffany has been expanding.

The buyout has been approved by the boards of both companies, and it’s expected to close early next year.

Source: SMH

LVMH’s $16b Tiffany takeover is back on

 

The largest deal in luxury is back on after New York’s famed jeweller Tiffany agreed to a slightly reduced offering price from LVMH in Paris.

LVMH will now pay $US131.50 for each Tiffany share, putting the total price tag at $US15.8 billion ($22.5 billion), down from the $16.2 billion that was first offered earlier this year.

Tiffany’s

The owner of Louis Vuitton, Christian Dior, Fendi along with a basket of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs. But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.

Rumours that the two luxury companies had rekindled talks began to surface in recent days.

“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH’s billionaire CEO Bernard Arnault said in a prepared statement on Thursday.

Tiffany & Co’s flagship store in Sydney. The company has hired advisers to review LVMH’s offer but has not yet responded to it

Tiffany sues LVMH for reneging on $22b deal as France steps in
Tiffany, with its famed blue boxes, has in recent years attempted to regain the luster of the “Breakfast at Tiffany’s” era as its customer base ages.

It’s shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.

LVMH, led by billionaire Arnault, a consumate dealmaker, believes Tiffany will strengthen its position in high-end jewellery and in the US market.

LVMH is also making a bet on China’s economy, where Tiffany has been expanding.

The buyout has been approved by the boards of both companies, and it’s expected to close early next year.

Source: SMH

Blue Nile to Sell Lightbox Lab-Grown Diamonds

 

Blue Nile has launched an exclusive line of Lightbox lab-grown diamond jewelry, its first foray into synthetics in its 21-year history.

De Beers-owned Lightbox seemed like the obvious choice for a partner, given the alignment of the two companies’ perspectives, Blue Nile CEO Sean Kell told Rapaport News Thursday.

“We’ve been watching the lab-grown diamond market for some time. We think both natural diamonds and lab-grown diamonds have a place in the market,” he noted. “When we first discussed stepping into the lab-grown space, Lightbox was the only brand partner that came to mind.”

The online jeweler’s partnership with the lab-grown brand is an effort to offer a greater range of products to its customers.

“The launch of the Blue Nile Lightbox collection…now adds even more variety, quality and value for our customers as we head into the new year,” Kell said. “[This] will further expand and transform [our] product assortment to meet the needs of evolving consumers in the jewelry space.”

The collection will feature new and exclusive styles of jewelry, including earring, pendants, bracelets and rings, set with white, blue or pink lab-grown diamonds in 14-karat white or yellow gold. The pieces, which range from $600 to $1,750, will be available both online and in Blue Nile’s newly launched and soon-to-open showrooms, Kell noted.

While Blue Nile’s Lightbox collection will feature fashion jewelry, it will not include engagement rings, for now.

“At this time we do not [plan to carry them],” Kell added. “We think of lab-grown diamonds versus natural diamonds as two separate categories. Our belief is consumers will continue to select natural diamonds for engagement and significant milestones, whereas lab-grown diamonds…will give shoppers an opportunity to expand their jewelry box with…jewelry they can wear every day.”

Lightbox opens its doors

The launch coincides with the debut of Lightbox’s new 60,000-square-foot manufacturing facility in Gresham, Oregon. The synthetics maker began production at the facility during the summer, as construction was being completed, and plans to ramp up output at the $94 million plant to reach 200,000 carats annually.

“Manufacturing lab-grown diamonds in the US was a goal from the beginning,” said Lightbox CEO Steve Coe. “With this facility and our…partnership with Blue Nile, we have an incredible opportunity to grow our business, improve consumer education and further establish Lightbox as the leading lab-grown diamond jewelry brand.”

Lightbox first dipped its toe in the retail space through partnerships with Bloomingdale’s and Reeds Jewelers. Earlier this month, the company announced an expansion to 10 independent retail jewelers in the US and Canada, a move it believes will enable it to gain insight into different audience segments, and learn how they shop and which products appeal to them most.

While the De Beers brand is currently focused on retail partnerships, Coe told Rapaport News he wouldn’t rule out the possibility of “one or two” self-operated stores “at some point.”

The company is also looking to expand its product offering, including creating larger sizes for its lab-grown diamonds, which currently weigh up to 1 carat.

“The biggest priority for us in 2021 is exploring the opportunity to go to larger sizes,” Coe noted. “That is something we are working on — going up to 2 carats.”

Meanwhile, the lab-grown brand is also looking to extend its color range beyond white, blue and pink.

“Our scientists are already looking at other color options, and in the lab at least, we’ve made yellows, greens, violets and other shades,” Coe added. “But that’s more likely in the 2022, 2023 timeframe, probably.”

Source: DCLA

Blue Nile to Sell Lightbox Lab-Grown Diamonds

 

Blue Nile has launched an exclusive line of Lightbox lab-grown diamond jewelry, its first foray into synthetics in its 21-year history.

De Beers-owned Lightbox seemed like the obvious choice for a partner, given the alignment of the two companies’ perspectives, Blue Nile CEO Sean Kell told Rapaport News Thursday.

“We’ve been watching the lab-grown diamond market for some time. We think both natural diamonds and lab-grown diamonds have a place in the market,” he noted. “When we first discussed stepping into the lab-grown space, Lightbox was the only brand partner that came to mind.”

The online jeweler’s partnership with the lab-grown brand is an effort to offer a greater range of products to its customers.

“The launch of the Blue Nile Lightbox collection…now adds even more variety, quality and value for our customers as we head into the new year,” Kell said. “[This] will further expand and transform [our] product assortment to meet the needs of evolving consumers in the jewelry space.”

The collection will feature new and exclusive styles of jewelry, including earring, pendants, bracelets and rings, set with white, blue or pink lab-grown diamonds in 14-karat white or yellow gold. The pieces, which range from $600 to $1,750, will be available both online and in Blue Nile’s newly launched and soon-to-open showrooms, Kell noted.

While Blue Nile’s Lightbox collection will feature fashion jewelry, it will not include engagement rings, for now.

“At this time we do not [plan to carry them],” Kell added. “We think of lab-grown diamonds versus natural diamonds as two separate categories. Our belief is consumers will continue to select natural diamonds for engagement and significant milestones, whereas lab-grown diamonds…will give shoppers an opportunity to expand their jewelry box with…jewelry they can wear every day.”

Lightbox opens its doors

The launch coincides with the debut of Lightbox’s new 60,000-square-foot manufacturing facility in Gresham, Oregon. The synthetics maker began production at the facility during the summer, as construction was being completed, and plans to ramp up output at the $94 million plant to reach 200,000 carats annually.

“Manufacturing lab-grown diamonds in the US was a goal from the beginning,” said Lightbox CEO Steve Coe. “With this facility and our…partnership with Blue Nile, we have an incredible opportunity to grow our business, improve consumer education and further establish Lightbox as the leading lab-grown diamond jewelry brand.”

Lightbox first dipped its toe in the retail space through partnerships with Bloomingdale’s and Reeds Jewelers. Earlier this month, the company announced an expansion to 10 independent retail jewelers in the US and Canada, a move it believes will enable it to gain insight into different audience segments, and learn how they shop and which products appeal to them most.

While the De Beers brand is currently focused on retail partnerships, Coe told Rapaport News he wouldn’t rule out the possibility of “one or two” self-operated stores “at some point.”

The company is also looking to expand its product offering, including creating larger sizes for its lab-grown diamonds, which currently weigh up to 1 carat.

“The biggest priority for us in 2021 is exploring the opportunity to go to larger sizes,” Coe noted. “That is something we are working on — going up to 2 carats.”

Meanwhile, the lab-grown brand is also looking to extend its color range beyond white, blue and pink.

“Our scientists are already looking at other color options, and in the lab at least, we’ve made yellows, greens, violets and other shades,” Coe added. “But that’s more likely in the 2022, 2023 timeframe, probably.”

Source: DCLA

Gem Diamonds back in the black on higher prices

 

Africa-focused Gem Diamonds became on Wednesday the latest miner to show signs of a slow but steady recovery in the market after showing it had swung to positive cash flow and slashed debt on the back of rising diamond prices.

The company reduced its net debt position by $6.6 million in the July-September quarter, ending the period with $1.1 million in cash. This compares to a net debt of $5.5 million in the first half of the year.

The sale of seven diamonds for more than $1 million each helped the miner’s bottom line, generating revenue of $25.6 million during the period.

The company achieved an average diamond price in the third quarter of $2,215 per carat, up from $1,714 per carat in the first half of the year.

“These prices achieved, on a like-for-like basis, are higher than those realized in the pre-covid-19 market conditions of the second half of the 2019 [financial year]”, chief executive Clifford Elphick said in the statement.

The apparent ongoing recovery in the diamond market is still thought to be fragile. De Beers, the world’s largest diamond producer by value, said in early October it was too early to be sure of a sustained upturn in trading conditions.

“Whilst the market has been defibrillated, we think it will remain in intensive care for some time, although any improvement is good news for the smaller pure play producers with weak balance sheets,” BMO Analyst Edward Sterck said in a note last month.

Letšeng back at full tilt
Gem Diamond’s Letšeng mine in Lesotho returned to full ore mining and treatment capacity in a phased manner during the second quarter, the company said.

Enhanced focus on stability and overall uptime of the Letšeng plants resulted in a conscious decision to reduce the instantaneous feed rate to each plant to reduce feed variability and enhance recovery, Gem noted.

Since acquiring Letšeng in 2006, Gem Diamonds has found more than 60 white gem quality diamonds over 100 carats each, which makes the mine the world’s highest dollar per carat kimberlite diamond operation.

The company recently secured a 10-year extension for its mining lease, with the government of Lesotho granting the company exclusive rights for further renewals.

At an average elevation of 3,100 metres (10,000 feet) above sea level, Letšeng is also one of the world’s highest diamond mines.

Source: DCLA