De Beers' Lightbox Aims To Protect Mined Diamond Sector Revenues
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June 11, 18by Albert Robinson(IDEX Online) – De Beers' decision to launch a laboratory-grown diamond jewelry brand called Lightbox was likely prompted by a desire to create clear segmentation of the lab-grown and mined diamond industries to protect its revenues from the mined diamond business, ABN Amro Bank says in a report.<?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>"Gem-quality laboratory-grown diamonds threaten the business case of miners," the bank wrote in the report. "For most diamond miners and producers, gem-quality laboratory-grown diamonds have been a threat for several reasons. For a start, undisclosed mixing of laboratory-grown diamonds with natural diamonds had a serious impact on confidence in the industry. However, since the introduction of the detection machines the fear of mixing laboratory-grown diamonds with natural diamonds has eased. Moreover, the miners have not only been confronted with a substitution product but also the entrance of a large number of new market participants who threaten to end the oligopolic industry structure. Furthermore, the marketing campaign of the miners to defend their turf has not been particularly successful up to now. In fact, there are signs that the laboratory-grown diamond producers have the upper hand."De Beers is known for being proactive, the industry’s leader in many ways. First, it used the knowledge of its laboratory-grown diamond production unit (Element 6) to build machines that can early detect laboratory-grown diamonds in parcels of natural diamonds. Moreover its diamond grading service – International Institute of Diamond Grading & Research or IIDGR – has the knowledge to detect laboratory-grown diamonds. Second, it announced in January 2018 that it aims to launch the first industry-wide blockchain this year to track gems each time they change...