Can Chinese brands rescue lab-grown diamonds?

On May 8, De Beers announced the closure of its lab-grown diamond jewelry brand, Lightbox, marking a significant retreat by one of the industry’s most influential players. The move has reignited scrutiny of the fast-evolving lab-grown diamond sector, a market that has experienced rapid growth — and growing pains — in recent years. Known as “the affordable alternative” to natural diamonds, lab-grown diamonds are nearly indistinguishable from their mined counterparts. Only specialized, high-precision instruments can detect subtle differences in trace elements and crystal growth patterns. Thanks to their controlled creation, lab-grown diamonds often contain fewer impurities, meaning they can surpass natural diamonds in clarity and optical purity by certain measures. De Beers shakes up diamond market In recent years, lab-grown diamonds have captured the attention of younger consumers thanks to their affordability, eco-friendly appeal, and futuristic allure. Despite growing consumer acceptance, De Beers’ recent decision to scale back its lab-grown diamond efforts came as little surprise to industry insiders. Zou, a lab-grown diamond seller on Douyin, tells Jing Daily, “When they launched their brand, they probably always intended to shut it down eventually — just waiting for the right moment and reason.” According to Zou, Lightbox helped trigger the market’s first wave of major price cuts. “Back then, a one-carat lab-grown diamond could sell for $1,100 (8,000 RMB). Lightbox came in at $800 per carat, setting a new global retail floor below $800.” Since its launch in 2018, Lightbox has consistently positioned its diamonds as fashion jewelry rather than symbols of lifelong commitment. “By marketing it that way, they were indirectly telling consumers that lab-grown diamonds don’t carry the same weight as natural ones,” Zou explains. Guo Sheng, founder of Chinese lab-grown diamond brand Caraxy, echoes this sentiment. “De Beers shutting down its lab-grown diamond brand was hardly surprising. When they first entered this space, it was more of a cautious experiment than a wholehearted commitment. Rather than deeply cultivating the lab-grown segment, their goal seemed to be about shaping the value system early on — using pricing and messaging to guide the market and set the rules of the game, thereby influencing how consumers perceive lab-grown diamonds,” he says. Lab-grown diamonds under pressure Even without De Beers steering the market, lab-grown diamonds continue to face relentless price pressure. Their initial appeal as a “high cost-performance” alternative is increasingly giving way to a perception of diminished value. According to Zou, a one-carat lab-grown diamond in 2022 sold for $1,100; today, that price has plummeted to roughly $139 (1,000 RMB). “Most players in this space are caught in a race to the bottom, with competition intensifying so much that the industry’s overall strength is steadily eroding,” he says. The situation is even more precarious for smaller brands, many of which are struggling to survive amid fierce price wars. Some distributors now treat lab-grown diamonds like fast-moving consumer goods, prioritizing promotions and discounts to drive volume rather than investing in brand building or consumer education. Guo Sheng adds, “Many in the industry treat lab-grown diamonds as raw materials to be sold cheaply, engaging in cutthroat price competition that has thrown the domestic market into disarray.” Caraxy leans into brand storytelling While lower-tier brands have been hit hardest by price competition, mid- to high-end players like Caraxy and Vrai have largely steered clear of discount-driven battles, says Zhu Guangyu, founder of Diamond Spectator. Instead, they’ve focused on building brand equity, with strong branding becoming a key differentiator. Founded in 2015, Caraxy has crafted a distinctive brand narrative centered on love. Rooted in the concept of “Grow Your Love,” the brand likens the formation of a diamond to a couple’s relationship — from their first meeting and falling in love to committing to a shared future. At the same time, the brand embraces an eco-conscious ethos captured by the phrase, “love and earth, both everlasting.” Since 2022, Caraxy has been planting a “love forest” at the crossroads of the Tengger and Badain Jaran deserts, pledging to plant a saxaul tree for every piece sold, aiming for 100,000 trees in total — giving tangible expression to the idea of letting love grow. According to brand data, over 20% of customers in 2022 cited the emotional concept of “Grow Your Love” as their reason for choosing Caraxy. That figure has since risen above 30%, while the proportion of buyers primarily motivated by price has steadily declined. During China’s 2024 “Double 11” shopping festival, Caraxy once again ranked as the top-selling brand in the lab-grown diamond category, with transaction volume tripling year-over-year. To date, the brand has held the No. 1 position on Tmall’s lab-grown diamond sales chart for ten consecutive months. The message is clear: when a product carries a well-defined and emotionally resonant brand story, it rises above the noise. Memorial diamonds: An untapped opportunity? Within the lab-grown diamond industry, a niche category known as “memorial diamonds” is quietly gaining traction. These diamonds are created by extracting carbon from a deceased loved one’s hair or ashes, then using the same high-pressure, high-temperature process as traditional lab-grown production. The result is a deeply personal and symbolic gem, carving out a place in rituals of grief and remembrance. But challenges remain. “The potential is enormous, but the biggest hurdle right now is traceability — we simply can’t guarantee it 100%,” says diamond analyst Zhu. Because the carbon source varies in both quantity and quality, the resulting stones differ significantly in color, clarity, and carat weight, making consistency and commercial value hard to guarantee. More importantly, this category carries a high emotional and educational barrier. For consumers, trust must be carefully earned — the product isn’t just a commodity, but a form of ritual. Brands must offer not only technical credibility but also emotional resonance and a genuine sense of ceremony. One brand leading the space is Yasheng(芽生), now a recognized name in memorial diamonds in China. “They’ve done exceptionally well,” Zhu says. “But like any pioneer, they also face skepticism — how the diamonds are made, how traceability is ensured. These are real questions. Still, I believe many of these issues will be addressed as the industry matures.” Ultimately, what gives diamonds their meaning isn’t their origin — it’s the emotion a brand can embed within them. To thrive, a diamond brand must do more than sparkle; it must strike a nerve. The future belongs to those who can translate emotional insight into cultural relevance — and, in doing so, create something that endures beyond the stone itself.

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Can Chinese brands rescue lab-grown diamonds?