Dr Silviu Reinhorn, the CEO of LUSIX holds a PhD in Applied Physics from the Weizmann Institute of Science. He brings with him 20 years of experience in business and R&D management, as well as vast experience in strategic planning and business development.
Dr Silviu Reinhorn worked at Applied Materials for ten years, fulfilling various R&D and business development executive positions. In addition, he held the following positions CEO of El-Mul Technologies, a company that develops and manufactures customized detectors for scanning electron microscopes and focused ion beam systems. He was also CEO of XJet Solar, a company that developed digital printers with conductive ink for solar panels metallization; and CTO and EVP of Dip-Tech and VP R&D of Mirage Innovations.
Here, Dr Silviu Reinhorn assures of the quality lab-grown diamonds from the new facility LUSIX in Israel. And also foresees high potential for LGDs and LGD jewelry in the world markets in the years to come.
Some excerpts:
Please run us through your company LUSIX, giving details of the technology used, production volume, market/s you are supplying or plan to cater, etc. Do you plan to produce coloured LGDs as well?
We started developing our technology for diamond growth 10 years ago in Landa Labs. Dr Yossi Yayon, LUSIX’s CTO, initiated and led this project. Yossi and our scientists perfected both the growing process of diamonds as well as the reactor design and assembly which we do in-house.
We are constantly working to offer our clients the best in class sustainably produced diamonds and we develop our products in accordance to market trends, controlling the shapes, sizes and colors.
We offer premium products to leading customers in the industry who appreciate not only our product’s quality but also our company values.
We have noticed a spurt in the growth of LGD production globally in recent years, giving the picture that LGDs are here to stay. Your views?
Lab-grown diamonds are definitely here to stay. The lab-grown market is exploding and demand is very high. We see that engagement rings are a key driver to this growth, with a reported market share of about 25% in the US last year. We are proud to be part of this growth and provide consumers with a beautiful product that they are excited to purchase.
What according to you is the growth potential of the LGD world market currently? And what opportunities do you see emerging in the next few years?
It has been estimated that the global market share is less than 8% of the potential with the majority of the market in the US. As Europe and Asia show increasing interest in LGD there is much room for growth. This reflects the potential of expanding the diamond pie for the whole industry, by making diamonds attainable to a larger customer base worldwide.
In addition, we see many opportunities to grow as more and more retailers, designers and brands are embracing the lab-grown space.
Media reports claim that LGDs prices decreased due to over-production of the product, resulting in the market being loaded with excess inventory? Your comments?
Even as prices have decreased, we are still experiencing excess demand which we expect to continue. As in any fast-growing industry, new players can come in and impact the demand and supply pricing equilibrium. That said, those who have a consistent supply of premium quality products can differentiate themselves from the rest.
Besides facing competition from the Natural Diamond industry, what other challenges do you think the LGD industry may have to face in the future? Colour gems are capturing the imagination of jewellery connoisseurs of late. Your thoughts?
The main challenges we see are the following: Firstly, there is a challenge in the market to provide consistent premium products, i.e. large sizes with high colors which are in high demand. Another challenge is to address the need for traceability technology that enables reliable diamond origin authentication.
We see no reason why LGDs and colored gemstones can’t both be incorporated into jewelry. Designers know this and have been starting to design such pieces.
Given that product differentiation is not much to play around with in LGDs, are any plans on the horizon? What is LUSIX’s USP? With the competitive landscape in the LGD sector rather evident, what upcoming trends can new entrants invest in? Any suggestions?
LUSIX is a technology company with a goal to perfect the product and provide beautiful diamonds that the end consumers will appreciate. Our LGDs are certified by SCS Global as being responsibly produced. This gives our customers the ability to carry on this claim through to the retail display case and the end consumer.
Also, a vast part of LUSIX's production is sold “As Grown” which is also a differentiator in the retail space. This, together with our exceptional quality diamonds, sets our product apart from most other LGD producers.
By investing heavily in technology, we stay ahead of the curve and will keep on developing and producing high quality and differentiated diamonds.
Which global consumer market/s do you think is showing or may show good demand in the future for LGDs? Reports claim sales of lab-grown diamond-studded jewellery have been on the rise in the US market…
In the U.S. LGD sales have done incredibly well over the last five years. The U.S. is usually the early adopter of innovative productswhereasEurope tends to be the leader in jewelry styles and metal usage. Therefore, it’s not surprising that the U.S. is leading the lab-grown diamond market.
Also, there are several designers and brands worldwide, led by Europe, that have embraced lab-grown diamonds as the only diamond they’re using in their products. We expect both India and China will be attractive markets for LGD in the near future.
What is your opinion on the ongoing competition between Natural mined diamonds and LGDs? How do you think this trend will span out in the years to come?
We don’t see the mined diamond industry as a direct competitor to lab-grown, since they cater to different consumer tastes. The LGD journey is barely beginning and yet has been impressively embraced by consumers including millennials and Gen Z. This speaks well for the future.
Here at LUSIX we just announced a raise of investment funds to enable us to build our new growing facility in Israel. This will expand our production capacity by more than fivefold. We’re very bullish on the product and the fine jewelry market worldwide and we see double-digit growth for years to come.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
