Pandora shifts to lab-grown diamonds
Pandora will stop using mined diamonds in jewellery manufacturing as the company transitions to exclusively setting laboratory-grown diamonds in its collections moving forward.
The Danish jeweller is launching Pandora Brilliance, its first lab-grown diamond collection, which offers “affordable, sustainably created products,” in the UK on May 6, with the global launch expected in 2022. Pieces in the collection are priced £250 (around US$347) and up. Each stone ranges from 0.15 to a carat, according to Pandora.
“Going forward, mined diamonds will no longer be used in Pandora’s products,” the company said.
Pandora CEO Alexander Lacik noted that lab-grown diamonds “are as much a symbol of innovation and progress as they are of enduring beauty and stand as a testament to our ongoing and ambitious sustainability agenda. Diamonds are not only forever, but for everyone.”
According to Pandora, the diamond jewellery market is poised to grow further, with lab-grown diamonds outpacing overall industry growth.
The new collection includes rings, bangles, necklaces and earrings, each featuring a solitary lab-grown diamond in sterling silver, or 14-karat yellow or white gold. Creative development was based on extensive consumer research in North America, Europe and China, revealed the jeweller.
US growth, online sales
The company also reported solid first-quarter 2021 results, driven by continued growth in the US market amid Covid-related store closures, as well as strong online sales.
Revenues were up 13 per cent in Q1 from a negative 14 per cent in the first quarter of 2020, despite 30 per cent of Pandora shops being closed during the period in review due to the pandemic. According to the company, the US market saw 52 per cent sell-out growth compared to pre-coronavirus Q1 2019, with stimulus packages driving robust consumer demand.
Online sales meanwhile rose by a hefty 136 per cent from last year. By comparison, Pandora’s online business increased by more than 200 per cent in Q1 2019.
Lacik shared, “We have had a good start to 2021, not least considering that many of our stores have been closed. Performance in the US and online continues to be strong.”
Based on its Q1 2021 performance, Pandora has upgraded its growth targets to above 12 per cent this year from above 8 per cent.