Jeweller - December 2021

Inset: Diamond Foundry
Right: Anabela Chan
are doing so because of the notable price
differential.
Based on a survey of prices, a consumer can
buy a better-than-average-quality 2.15-carat
lab-diamond solitaire for the price of an
equivalent 1.00-carat natural stone.
In general, the price differential between
generic lab-diamonds and natural diamonds
has steadily widened in recent years – in
some cases expanding from a 10–15 per cent
differential just a few years ago to as much as
75 per cent or more at present.
Consequently, the widening
wholesale price differential
between lab-created and
natural could influence the
way that down-stream retailer
brands and jewellers market
the products."
That is, the differential being the ‘discount’ of
a lab-diamond relative to a natural diamond of
similar size and quality (See chart on page 47).
This price variance is likely, at least in part,
due to the production fundamentals of the two
products: lab-diamonds are manufactured
product, whereas natural diamonds are a nonrenewable
resource of varying quality and size.
Consequently, the widening wholesale price
differential between lab-created and natural
could influence the way that down-stream retailer
brands and jewellers market the products.
While it is likely that some lab-diamond
companies will successfully apply branding
leverage and other strategies allowing their
product to garner a premium to most (especially
generic) lab-diamonds, longer-term it is
forecasted that an increasing amount of labdiamond
jewellery will be marketed towards
fashion jewellery consumers.
The (Red) Diamond Ring, created by
Diamond Foundry x Jony Ive & Marc Newson,
sold at Sotheby's for US$256,250 in 2018
In other words, lab-diamonds will be used in
lower-priced jewellery competing less with
higher-priced natural diamond jewellery.
For example, Pandora’s new lab-diamond
collection, marketed as Pandora Brilliance,
is being positioned to ‘democratise’ diamonds,
according to the company.
The collection starts at a US$350 price point
and includes pendants, earrings, bracelets
and rings – although the rings are not directly
being marketed as engagement rings.
This price variance is likely,
at least in part, due to the
production fundamentals
of the two products:
lab-diamonds are
manufactured product,
whereas natural diamonds
are a non-renewable resource
of varying quality and size."
Swarovski, another iconic global fashion
jewellery brand, recently launched a fancycoloured
lab-diamond collection available in an
array of vibrant proprietary colours - colours that
are not typically available in natural diamonds.
The collection doesn’t appear to be positioned
as a bridal product either. Other retailers'
strategies appear less clear.
Mid-market US department store majors,
Macy’s and JCPenney, which have historically
sold an array of other man-made gems, began
offering lab-diamond jewellery in 2018.
The following year, Signet Jewelers, the
largest mid-tier jewellery conglomerate in
48 | December 2021