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Limelight targets 100+ stores in 2026 as lab-grown diamonds gain ground in smaller cities

Lab-grown diamond demand is expanding into tier-2 and tier-3 Indian cities as widening price gaps and high gold prices improve affordability. Limelight identifies multiple regional growth markets and plans to exceed 100 stores in 2026.

Newer report , , ET Retail : Lab-grown diamond retailers target smaller Indian cities as price gap widens

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Store and format facts

Figures from ET Small Business,

LGD discount versus natural diamonds widened to as much as 90% in 2026 from about 70% in 2025
LGDs account for nearly 10% of India's Rs 80,000 crore diamond market
Limelight has around 80 stores in 45 cities

Also in the report

  • Premium-quality LGD costs Rs 50,000-80,000 per carat versus Rs 2.0-3.5 lakh for natural diamonds
  • India produces around 20 million carats of LGDs annually
  • A two-carat LGD solitaire can be 80-90% cheaper than a comparable natural diamond

Other figures

  • Aukera has 35 stores

What it means for the format

Limelight’s rapid physical expansion could increase the strategic value of regional jewellery chains, franchise networks, and lab-grown diamond supply partners with established tier-2 and tier-3 access.

Next on the rollout

  • Pace of Limelight openings versus the stated 100-store target, including franchise versus company-owned mix.
  • Same-store sales, average transaction value and store payback disclosures after new-city launches.
  • Further movement in retail price gaps between lab-grown and natural diamonds, especially in bridal solitaires.
  • Lab-grown diamond assortment launches, discounting or exchange programs from major incumbent jewellers.
  • Growth in EMI penetration, wedding jewellery demand and digital lead conversion in tier-2 and tier-3 markets.
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  • Consumer sentiment around certification, durability, resale value and authenticity of lab-grown diamonds.

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Prioritize franchise or asset-light formats in tier-2 and tier-3 cities to preserve capital for inventory, marketing and omnichannel fulfillment.
  • Build bridal-led local acquisition programs with EMI, exchange, customization and certification education to overcome resale-value concerns.
  • Use regional store openings as fulfillment, repair and consultation hubs, linking physical inventory to digital lead generation.
  • Secure differentiated supply, traceability and design exclusives as lab-grown diamond wholesale prices decline and product commoditization rises.
  • Track new-store sales density and cannibalization closely; slow openings in cities where competitors launch lab-grown assortments or natural-diamond discount campaigns.

The counter-case

The case against this reading — not reported by the source.

Opening 20+ stores may outrun proven local demand: lab-grown diamond prices are still falling, which can compress ticket values, create inventory markdown risk and weaken the investment proposition for consumers. Smaller-city demand may be price-led rather than brand-loyal, while higher store, staffing and marketing costs could make the 100-store milestone operationally impressive but financially dilutive. Natural-diamond jewellers and online-first players can also respond aggressively with financing, discounts and wider assortments.

The source

Source Read the source at ET Small Business

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