Pandora launches lab-created diamonds in the U.S.

Pandora launches lab-created diamonds in the U.S.

Danish jewelry manufacturer Pandora is trying to make the U.S. diamond jewelry market more accessible for the average consumer by launching its first collection of lab-created diamonds in the U.S.

The United States and Canada have launched more cost-effective diamond products for consumers who don't have the means to doling out thousands of dollars on fine jewelry.

According to Alexander Lacik, Pandora CEO Alexander Lacik told FOX Business that the company's mission has always been to democratize the jewelry market.

According to Pandora, manmade diamonds have the same optical, chemical, thermal and physical properties as mined diamonds and are graded by the same standards such as cut, color, clarity and carat.

Lab-created diamonds are identical to mined diamonds, but they are less expensive and more accessible for our consumer, Lacik said. It costs like a third to get to the exact same outcome. The cost of lab diamonds is constantly changing according to The Diamond Pro. The outlet reported that they are on average 50% to 60% cheaper in today's market. A James Allen natural 1.01 carat G VSi round diamond will cost a consumer $8,360.

According to its website, the James Allen lab-created 1.01-carat GVSi round diamond will set you back only $1,650. The diamonds are nearly identical grades, but the lab-created diamond is 20% of the price, according to The Diamond Pro.

Over a dozen brands including Vibranium Lab, James Allen, Clean Origin, Blue Nile, Ritani, Diamond Foundry and Aether have already produced affordable jewelry products using lab-created diamonds.

Pandora's first U.S. lab-grown collection consists of ring, earrings, bracelets and necklaces that range from $300 for a 15-carat ring to under $1,950 for a one-carat ring. The diamonds are grown in the United States and are made with 100% recycled silver and gold.

The company claims it is the biggest jewelry company by volume, producing over 100 million pieces a year, because it markets to the mass consumer. Its products are sold in more than 2,400 concept stores, including in 100 countries.

Lacik said that they're playing in the affordable part of the luxury space. It becomes quite interesting for our customer base with prices in this kind of level. The company, best known for its charm bracelets, is working on marketing and launching additional collections like Diamonds by Pandora to drive growth.

The company has around 700 million visits to its global platforms annually, according to Lacik.

He said that we convert this into roughly 50 million business transactions, and the idea is to drive that conversion rate up. We would start by launching more collections. In the midst of painfully high inflation and economic uncertainty, Lacik said that the company plans to drive 4% and 6% organic growth for fiscal year 2022, due to the fact that jewelry is a discretionary category.

He said that people still have anniversaries and birthdays. Our business seems to be reasonably recession proof. He said that the jewelry category has outstripped GDP growth by a factor of two since the 2008 -- 2009 crisis.

The company expects to have a good big season for the upcoming holiday season, which is a pivotal time for retailers.