Lab Grown Diamonds is poised for a big year in major retailers as consumer interest and unique products continue to grow across the United States.
Major retailers such as Walmart, JCPenney, Zales, K Jewelers, and Pandora have already entered the lab-grown diamond category and have growth plans in 2024 to keep up with demand.
According to a September 2023 report from MVI Marketing, a research communications firm for the watch and jewelry industry, 53% of U.S. consumers say they would choose lab-grown diamonds over mined diamonds. The report also states that 70% of retailers surveyed said margins on lab-grown diamonds are 20-40% higher than margins on mined diamonds.
“There is a huge shift in consumer demographics,” said Marty Hurwitz, CEO of MVI Marketing. “Younger consumers are not only less willing to spend money on everything, but they are also better educated. There will be more interest in the product. [lab-grown diamonds] It’s like a new discussion related to diamonds, not mined diamonds. This is appealing to younger consumers and the combination of these is appealing. [sustainability] Due to the lower prices they can afford. ”
By the end of 2023, mass retailers will have made a major entry into the lab-grown diamond category. Walmart, which debuted lab-grown diamonds in 2022, introduced a broader collection last fall that included more than 80 styles across fashion jewelry and bridal pieces. This comes after the retailer saw a 600% year-on-year increase in sales in the category.
Walmart Lab Grown Diamond Collection Engagement Ring.
Provided by Walmart
“Customers can now own and purchase much higher quality, larger stones at a fraction of the price they would get when they were mined,” said Michelle Gill, Walmart’s vice president of jewelry and accessories. Ta. “So it really opens up the opportunity to get real diamonds of quality that you previously couldn’t afford or didn’t want to spend money on.”
Although retailers are keen to expand their lab-grown diamond offerings, mined diamonds still make up the majority of diamond jewelry offerings. At Walmart, for example, lab-grown diamonds only account for 30% of the retailer’s diamond jewelry styles.
At Walmart, Bridal Lab Grown Diamond styles lead the entire category. Gill named the retailer’s 1.5-carat engagement ring — the largest diamond ever mined in a lab or at Walmart — as its top-selling item at $698. Gill said he compares the ring’s size to the $5,800 price tag it would cost if made from mined diamonds.
J.C. Penney, one of the first mass retailers to enter the lab-grown diamond category in 2018, also doubled down last year with a marketing campaign centered around its new collection.
Last year, J.C. Penney saw sales increase by up to 50% across its lab-grown diamond jewelry category, said Pam Mortensen, the company’s head of fine jewelry.
“You’ve probably heard about the four Cs of diamonds: cut, clarity, carat weight, and color,” she said. “So at J.C. Penney, we added a fifth ‘C’ to stand for choice. We believe that by offering lab-grown diamonds as an alternative to mined diamonds, we can offer our customers higher quality diamonds at lower prices. [price]”
Similarly, bridal styles lead this category at J.C. Penney. The retailer has also found success on the fashion side of his jewelry, namely his lab-grown diamond stud earrings.
Signet Jewelers has also collaborated with several designers over the past few months, focusing on the bridal category of lab-grown diamonds. The jewelry conglomerate debuted collections such as the Lab Grown Diamond Bridal Collection with Neil Lane and Monique Lhuillier of Kay Jewelers.
Copenhagen-based jeweler Pandora launched its lab-grown diamond line last year with three new collections and a star-studded campaign, with the goal of achieving approximately $140 million in sales by 2026. We have expanded the lineup.
“Compared to specialty jewelry retailers, these mass retailers are talking to a much wider range of consumers, and a much larger audience,” Hurwitz said. “So it’s no surprise that they’re getting attention now that they have a product. The jewelry department is in complete turmoil right now, and many jewelry stores have reduced their inventory of mined diamonds. I’m even thinking of exchanging it for Lab Grown stock.”
Bridal remains a key driver for these mass retailers. However, as demand continues, many companies believe there is an opportunity to expand their lab-grown diamond fashion jewelry offerings in 2024. For example, Walmart is seeing increased interest in tennis bracelets, earrings, and necklaces.
“There will continue to be fashion opportunities for lab-grown,” Gill said. “Customers at all levels will feel much more comfortable with lab-grown diamonds than with actual mined diamonds, especially when it comes to fashion.” said. “There will always be customers who want to mine for bridal purposes, and we are seeing a change especially among the younger generation.However, I think a good introduction to Labo Grown is trending, so we will continue to use Labo Grown in the future. There will be more interest.”