In terms of longevity and even shine, a lab-grown diamond is the same as a natural diamond. Since it is chemically and physically the same, it will last forever, and its shine will be evergreen.
From resale value to longevity, Reia Diamonds CEO Prapanjj SK Kota explains everything about lab-grown diamonds
The lab-grown diamond (LGD) market is experiencing significant growth, with a 2024 market size of approximately USD 25-30 billion. Reports suggest it is likely to double, reaching USD 75-82 billion by 2034. According to Prapanjj SK Kota, Founder & CEO of Reia Diamonds, the exponential growth of lab-grown diamonds (LGD) is driven by increased consumer education and the desire for accessible luxury. Another factor behind this surge in demand is that these LGDs are chemically and physically identical to mined diamonds. Emphasising that LGDs are “diamonds with zero compromise”, Kota said that the only notable difference between natural and lab-grown diamonds is the price, which can be up to 90 per cent lower due to advances in technology.
In an email interaction with India TV, Kota also talked about the latest trends, the resale value, exchange value and other key aspects of lab-grown diamonds. Here are the edited excerpts:
Que: The lab-grown diamond market is growing rapidly. How much growth do you see in this segment, and what is driving this growth?
Prapanjj SK Kota: We see exponential growth in the lab grown diamond market as it’s a matter of time for the education of lab grown diamonds to be disseminated and people start understanding that it is identical to its counterpart the natural diamond and people will start buying jewellery for the design that it brings instead of the marketing tactics used for natural diamonds as even lab grown diamonds are meant to last forever but the difference is purely the price associated with the same due to the advancement of technology.
The growth factor is driven by the ease of access to luxury and the growing awareness that a lab-grown diamond is the same as a natural diamond. We have been seeing an exponential growth in the lab-grown diamond engagement ring category as people want a jewellery piece that is meant for everyday wear. They do not want to compromise on the quality, size, or even the design, and that’s where lab-grown diamonds pave the way, as they are diamonds with zero compromise.
Que: What are the latest trends and technologies in this segment?
Prapanjj SK Kota: The latest trends that we have been noticing are the requirement for coloured lab-grown diamonds as well as diamonds in the 1+ carat category, as people want to showcase a piece of their love through the diamond they purchase, and thus the lab-grown diamond engagement ring sector has been growing rapidly, with 1+ carat solitaires and coloured diamonds being the centre of the same
Que: Can you please explain to users the differences in value, longevity, and other factors between lab-grown and mined diamonds?
Prapanjj SK Kota: We need to understand that there is no difference in the chemical and physical composition of a lab-grown diamond and a mined diamond; rather, the only difference that comes about is the way it is grown, one in a lab and the other below the earth. In terms of value, it is 90 per cent lower than the mined diamond when compared with an apple-to-apple comparison of the cut, colour, clarity and caratage, but this is not a reflection of quality, just purely technological advancement. A bold comparison would be the ice in the Antarctic and the ice in the refrigerator; both are the same, just a location difference.
In terms of longevity and even shine, it is the same as a natural diamond, since chemically and physically it is the same, it will last forever, and the shine is going to be evergreen.
Que: The historical value proposition of a diamond is centred on rarity and enduring value. How is your brand re-engineering the emotional narrative around diamonds to resonate with a generation that values experiences, personalisation, and social responsibility?
Prapanjj SK Kota: Reia’s Ethos lies in the experience provided, personalisation and social responsibility, since we uphold our customisation process to a gold standard. We ensure the exact requirement of a client is captured, where even the tiniest detail of the engraving, the tapering of the ring band and even any small, cute moment the client wants to eternalise is captured by us, since we know how important the purchase is. In terms of personalisation, we ask our clients what the one thing they want to keep forever is, and we ensure we capture that segment in our engagement rings, since it is that one jewellery piece that will be with them forever
Que: Reia Diamonds is expanding its retail footprint. How are you ensuring a seamless, high-touch luxury experience across your physical retail stores and your e-commerce channels?
Prapanjj SK Kota: People are everything, since this purchase is not a toothbrush purchase, rather it is a purchase for a lifetime, and we ensure that the staff that we enrol understand this and also showcase this to our end customers. We ensure that our staff undergo a three-month training with our headquarters, and then only are they permitted to take orders from clients, as our staff are not trained to sell, they are trained to listen and then consult. Whereas for our e-commerce, we did not go the normal jewellers route of uploading just computer renders and putting a price point attached, rather we have photographed each every product we have, have given clear pricing bifurcations with a standard diamond rate so people are not confused in terms of diamond pricing and we ensure that we give a phone call to every consumer when a purchase takes place to relieve the anxiety they might have during the purchase.
Que: How can one differentiate between natural diamonds and lab-grown diamonds? Are there any visible differences?
Prapanjj SK Kota: You can only differentiate between a natural diamond and a lab-grown diamond through specialised machines in certification agencies, where they check the growth pattern of the diamond, which is invisible to the naked eye. There are no visible differences between a mined diamond and a lab-grown diamond.
Que: Do lab-grown diamonds have a resale value, and how does it compare with the mined diamonds?
Prapanjj SK Kota: Lab-grown diamonds have the same resale value as a natural diamond, as the resale value is determined by the retailer and not even a wholesaler, as the diamond is valued by the person who sells the diamond to the person. We offer a 70 per cent cashback on the diamond value as of the date of resale, and a 100 per cent exchange offer for diamonds. Hence, there is value to the diamond that they have purchased.
Que: What’s your expansion plan? How do you plan to emerge as a category leader?
Prapanjj SK Kota: Our expansion plan is apparent where by we are entering new markets with flagship stores and we are expanding with our engagement ring studios where by people will be able to view 1000+ designs of engagement rings and they will be able to explore their wildest dreams in our engagement ring studio as we aim to become the one stop shop for an engagement ring – Be it off the rack or customised.
ALSO READ | Will India see a similar ‘Shahrukhz by Danube’ tower? Here’s what Danube Group chairman Rizwan Sajan said
