Lab-grown diamonds are sustainable and affordable alternatives to natural diamonds. The lab-grown diamond space in India is still at a very nascent stage. Still, this product category requires development and must create awareness. There is no nationwide leader in the lab-grown diamonds. Jewelbox is a two and half year-old startup in this space and is one of the early entrants. It is headquartered in Kolkata. It intends to set up a chain of stores in the Tier 1 cities. Still, its 40 per cent revenue is generated online.
Lab-grown diamonds fascinate aspirational middle-class who find natural diamonds prohibitively costly. The other startups are Mumbai-based Limelight, Fiona Diamonds, Wonder Diamonds, True Carat Diamonds, Aukera Jewellery. There are almost 37 such startups.
Natural diamond prices are benchmarked to Rapport price list. Lab-grown diamonds follow cost-plus pricing model. The prices these days are falling as there is an over-supply. If productions costs are further reduced due to advancing technology, prices are likely to fall further.
These units must scale up to maintain healthy order value. There is a need for branding in this space.
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