In a statement, De Beers confirmed it intended to cease Lightbox's operations and is discussing the sale of assets, including inventory, with potential buyers. CEO Al Cook said the decision reaffirms the company’s commitment to natural diamonds.
“As we move towards becoming a standalone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth,” Cook said.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories.
“Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector.”
Lightbox was established in 2018 by the world’s largest diamond producer, a move that stunned the jewellery trade. When the business was launched, it established a controversial linear pricing model of $USD800 per carat. This pricing structure was changed to $USD500 in May 2024.
The decision by De Beers to enter the lab-created diamond market has been widely debated over the past decade. Lightbox’s chief marketing officer, Sally Morrison, contributed to Jeweller’s Great Diamond Debate in 2018-19 and explained the pricing strategy.
“We are regularly asked why the pricing model is linear and not similar to natural diamond pricing?” Morrison wrote.
“Our reasoning is simple: this is a manufactured product and we firmly believe lab-grown stones should be priced based on cost of manufacture, not as a discount from natural diamond pricing, which is defined by relative rarity.
“Our product is many things: sparkly, colourful and fun. However, by definition, it’s not rare. We can manufacture more of it every day.”
Morrison worked with Lightbox from 2017 to 2020, and at the time of publication, works for De Beers. At the time, she discussed ongoing changes in the lab-created diamond market, which are reflected in Cook’s explanation for the brand's closure.
“When it comes to the lab-grown diamonds themselves, as is expected with any new technology, prices have already dropped due to increased – and improved – production being implemented,” she explained.
“It would be reasonable to expect this trend to continue; as techniques become more sophisticated and processes become more efficient, better quality material and more colours will likely become available. There are already many more online options today than existed a year ago.”
In 2023, the company briefly experimented with engagement jewellery; however, amid significant industry backlash, Lightbox announced a retreat.
One year ago, De Beers announced that it would no longer produce lab-created diamonds for jewellery, switching the focus to stones used in industrial applications. Element Six, the company’s lab-created diamond production unit based in Oregon (US), will continue to focus on industrial lab-created diamonds.
As part of the announcement, De Beers noted the dramatic wholesale decline in lab-created diamond pricing. The company said customers will continue to receive support for existing purchases, including warranties and after-sales services, during the closure.
More reading
The Great Diamond Debate - Round I
The Great Diamond Debate: Round II
De Beers no longer producing lab-created diamonds for jewellery
Lightbox to experiment with reduced prices for lab-created diamonds
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Lightbox confirms changes to controversial pricing strategy
De Beers enters synthetic diamond market with new collection
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