Danish jewelry manufacturer Pandora says it is trying to make the US diamond jewelry market more accessible to the average consumer by launching its first collection of US lab-created diamonds.
Diamonds by Pandora hit the US and Canadian market this month, offering more value-for-money diamond products for consumers who don’t have the means to dish out thousands of dollars worth of fine jewelry.
Affordable diamonds are a natural next step for the company, whose mission has long been “to democratize the jewelry market,” Pandora CEO Alexander Lacik told FOX Business.
Man-made diamonds, often created in a matter of a few weeks, have the same optical, chemical, thermal and physical characteristics as mined diamonds and are graded to the same cut, color, clarity and carat standards. according to Pandora.
“Lab created diamonds are identical to mined diamonds, but they are less expensive and more accessible to our consumer,” Lacik said. “It takes about a third to get exactly the same result.”
According to The Diamond Pro, the cost of lab diamonds fluctuates constantly. However, in today’s market, they are on average 50% to 60% cheaper, “or even more in some cases,” the outlet reported. For example, a 1.01 carat round natural G VSi diamond from James Allen will cost the consumer $8,360.
By comparison, the 1.01-carat round G VSi diamond created in James Allen’s lab will set you back just $1,650, according to his website. The diamonds are “almost identical grades” but the lab created diamond it’s 20% of the price, according to The Diamond Pro.
In the US, more than a dozen brands, including Vibranium Lab, James Allen, Clean Origin, Blue Nile, Ritani, Diamond Foundry and Aether, have already produced affordable jewelry products using lab-grown diamonds.
Pandora’s first U.S. lab-grown collection, in particular, consists of rings, earrings, bracelets, and necklaces that range in price from $300 for a .15-carat ring to less than $1,950 for a .15-carat ring. carat. Diamonds are grown in the United States and are made from 100% recycled silver and gold.
The company claims that it is already the largest jewelry company by volume, producing more than 100 million pieces a year, because it markets to the “mass consumer”. Its products are sold in 100 countries, including in more than 2,400 concept stores.
“We’re playing in the affordable part of the luxury space,” Lacik said. “And with prices at this kind of level, all of a sudden, it becomes quite interesting for our customer base.”
However, the company, best known for its charm bracelets, is working on marketing and launching additional collections such as Diamonds by Pandora to further fuel growth.
Lacik said that the company has approximately 700 million visits to its global platforms annually.
“We converted this to about 50 million business transactions, and the idea is to try to increase that conversion rate,” he added. “And how we would do that is primarily by releasing more collections.”
Even in the middle of painfully high inflation and economic uncertaintyLacik said the company plans to drive organic growth of between 4% and 6% for fiscal 2022 due to the fact that jewelry is a discretionary category.
“People still have anniversaries and birthdays,” he said. “I think our business appears to be reasonably recession-proof.”
Since the 2008-09 crisis, the jewelry category has outpaced GDP growth by a factor of two, it added.
The company is even hoping to have a “decent big season” for the upcoming holiday season, which is a pivotal time for retailers.