Lightbox was launched in 2018 by the world’s largest diamond producer in a move that shocked the jewellery trade. Seven years later, the brand is being closed, driving industry speculation about the state of the market.
The company stated that the controversial brand is being shut down due to the dramatic decline in lab-created diamond pricing. The move was described as a commitment to the future of natural diamonds.
In an interview with the New York Times, CEO Al Cook emphasised the importance of differentiation between natural and lab-created diamonds.
“For 600 years, people have loved natural diamonds because they are beautiful and rare. “Synthetics aren’t rare, and they certainly won’t be in 600 years’ time. Natural diamonds will be even more scarce than they are now,” Cook said.
“Then again, none of us will actually be around to find out.”
He added: “The fact that you can now buy a $USD299 engagement ring at Walmart would be a win in the eyes of my predecessors. Because some retailers are still selling that ring for $USD3,000, we have work to do to differentiate and push the desirability of natural diamonds.”
When Lightbox was launched, Bruce Cleaver was CEO of De Beers. During an ‘exit’ interview with JCK Online in 2023, he discussed the risks involved in establishing the brand and highlighted the importance of ‘separating’ the two categories from a consumer perspective.
“I say to people, it’s one of the scariest things I’ve ever done. If we launched this product too soon, we may legitimise a whole category quicker than we should have. What if it was launched too late, and the genie was out of the bottle?” Cleaver asked.
“We probably launched it at about the right time. I’ve been surprised there’s been very significant growth in lab-grown production in the last 18 months. But my view is that it will accelerate the two markets separating.”
When Lightbox was established, it deviated from industry norms and instituted a controversial fixed pricing model of $USD800 per carat. In an interview with Jeweller, chief marketing officer Sally Morrison stated that, because the diamonds are manufactured rather than mined, pricing should reflect the production costs.
This structure was changed to $USD500 in May 2024, reflecting the significant decline of lab-created diamond prices.
Diamond industry analyst Paul Zimnisky noted that many consumers still struggle to understand the distinction between natural and lab-created diamonds due to the pricing disparity.
“There is still a lot of confusion among prospective buyers,” he said.
“Consumers have been told over and over that the two products are exactly the same, when the reality is they can be chemically distinguished with certainty.”
“Consumers are willing to spend ten times more for a natural diamond, but they need to be guaranteed that what they are buying is, in fact, a natural [diamond].”
Zimnisky was asked about the implications of this consumer confusion remaining unaddressed and said that it would be ‘industry suicide’.
Lightbox briefly experimented with engagement jewellery in 2023; however, amid significant jewellery industry backlash, this ‘test’ of the market was concluded.
Writing for The Diamond Press, industry analyst Avi Krawitz suggested that this experiment reinforced the fact that De Beers couldn’t compete in the engagement jewellery market with lab-created diamonds without undermining the value of natural diamonds.
He suggests that this lesson positioned De Beers to choose between the two categories, instead of playing both sides of the fence.
“Disrupting the lab-grown diamond market was never a one-brand job. It requires an industry-wide strategy. A coordinated approach built on cost-based pricing, quality assurance instead of grading, and fashion-focused positioning would carry far more weight if adopted at scale,” Krawitz writes.
“With Lightbox now shuttered, De Beers appears to be returning to its roots — partnering with retailers and reviving category marketing to reaffirm the unique value of natural diamonds. It’s a course correction that, had it come sooner, might have saved the industry years of mixed messaging.”
“Still, it’s a welcome shift — not just for De Beers, but for a trade that’s long needed a clearer narrative and more unified strategy in the face of lab-grown disruption.”
He concluded: “The burning question is whether the industry will rally behind an effort De Beers is only now — and finally — free to lead.”
One year ago, De Beers announced that it would no longer produce lab-created diamonds for jewellery, switching the to stones used in industrial applications. Element Six, the company’s lab-created diamond production unit based in Oregon (US), will continue to produce industrial lab-created diamonds.
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The Great Diamond Debate - Round I
The Great Diamond Debate: Round II
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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 Jewelry opens to the public
Lightbox confirms changes to controversial pricing strategy
De Beers enters synthetic diamond market with new collection
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