Lab-grown diamonds are set to acquire a new sparkle this festive season, amid growing acceptance among customers, according to industry executives. With the introduction of buyback schemes by manufacturers and expansion of the store network, up to 60% year-on-year growth is expected during this period, they said.
Even high-net-worth individuals (HNIs) have taken a shine to lab-grown diamonds, which earlier attracted mainly the 18-35 age group that could not afford natural diamonds, said people in the know. This, they said, has prompted listed players like Senco Gold & Diamonds to enter the market in this financial year to tap into the growing demand.
Price remains a key magnet for customers, to be sure, as a carat of lab-grown diamond (LGD) costs ₹60,000-70,000, a fraction of ₹10-11 lakh for a natural diamond. “With increased awareness and consumer acceptance of LGD jewellery in India, we are extremely bullish this Diwali season and expecting sales growth of almost 60% year-on-year,” said Mumbai-based Pooja Sheth Madhavan, founder of Limelight Lab Grown Diamonds, the country’s largest LGD jewellery brand. “Moreover, we will open five additional stores before Diwali, taking the total to eight stores, and have a robust plan and pipeline of a further 10 stores before March 2024. We are all set to showcase a new and wide range of sustainable luxury to the Indian consumer.”G. Viswanathan, chairman of Wondr Diamonds, which has 15 stores in southern India, said, “HNIs are buying LGDs as they are more eco-friendly and have a negligible impact on the environment. This festive season we are looking at a 25% growth compared to last year,” Wondr Diamonds plans to open another 15 stores in the country, in places including Delhi and Raipur.
Sanjay Banka, chief financial officer, Senco Gold & Diamonds, said, “We are working on how to fix the resale value of lab-grown diamonds. We will get into LGD business in the current fiscal.”
