Top jewellery chains shy away from lab-grown diamonds amid lack of consumer interest
Kalyan Jewellers, Tanishq, Malabar Gold & Diamonds, Joyalukkas and Senco Gold are staying away from lab-grown diamonds (LGDs) citing low demand and an aversion to mixing them with natural stones at counters.
Nonetheless, the buzz over such stones — much cheaper than natural diamonds and indistinguishable from them — is getting louder, with higher sales in markets such as the US and government stimulus budgeted in India.
Top retailers still feel the local market is not yet ready to accept LGDs like the US, as artificial diamonds are popularly considered fashion jewellery and not an asset with resale value.
Ramesh Kalyanaraman, executive director of the listed Kalyan Jewellers, said enquiries were minimal and the future of lab-grown diamonds unclear. «Until demand and supply align, we have no immediate plans to pursue this,» he said.
«Consumers are not asking for LGDs at our stores. We are still not witnessing any craze,» said Suvankar Sen, chief executive of Senco, which is also a listed company.
These top brands operate 150-200 stores each. Additionally, major stores do not want to keep LGD jewellery along with natural diamonds — fearing confusion among customers.
“If at all we enter the category, which may not happen soon, it will be under a separate brand and at separate stores,” said Sen.
Kalyanaraman also pointed to fluctuating international and domestic prices of such seeded stones, saying the chain would focus on stable value propositions. Other major jewellers concur, and are seen as unlikely to enter
