Brilliant Earth has 37 showrooms across the U.S., including at King of Prussia Mall in Philadelphia, ... [+]
Founded over two decades ago by Beth Gerstein and Eric Grossberg, Brilliant Earth emerged from a personal quest for ethically sourced engagement rings, blossoming into a brand dedicated to transforming the jewelry industry. Brilliant Earth has carved a niche as a global leader in fine jewelry with a commitment to responsible practices and sustainable sourcing.
It went public in 2021 and has a market cap of around $250 million. Although the stock price has fallen significantly since its IPO, it maintains growth and profitability year-over-year. Its 2023 year-end net sales were $446.4 million, up 1.9% from the year prior. Orders increased by 16.7%, but due to the introduction of lower-priced products and lower order values, sales growth was not as substantial as in previous years.
Toi Et Moi Lab Emerald and White Topaz Cocktail Ring is made with Topaz and a lab-grown emerald.
At the heart of Brilliant Earth's mission lies a dedication to transparency, integrity, and social responsibility. Since its inception, the company has prioritized ethical sourcing, setting a higher standard with its "Beyond Conflict Free" diamonds. It was also one of the early sellers of lab-grown diamonds, having launched its first lab-grown line in 2012. It now has one of the most diverse ranges of ethically sourced and lab-grown diamonds in the industry, with options for customization and inclusive sizing at no additional cost.
Like many direct-to-consumer brands, in recent years, Brilliant Earth has embarked on a journey of retail expansion, recognizing the importance of physical experiences alongside digital engagement. With over 30 showrooms opened in the last three years alone and 37 to date, the brand is bridging the gap between online convenience and in-person service, catering to modern consumers who value personalized interactions and hands-on exploration. This year, the brand will continue to grow its showroom fleet with two planned openings in Boston and one in New York City's Nolita.
Brilliant Earth's Retail Expansion
"As a digitally native brand, we recognize that consumers want omnichannel. We work in an industry and category that is a highly considered purchase. So, while people might begin their journey online, the ability to curate, personalize, and educate customers on their choice of an engagement diamond and setting in person is something there was demand for," stated Pam Catlett, Senior Vice President of Brand, Marketing, and Retail Experience at Brilliant Earth.
Brilliant Earth opened its Seattle showroom at University Village in 2021.
The brand's first store opened in 2006 in San Francisco's Union Square after previously existing solely out of Beth's apartment. It opened several other stores over the years but built the confidence and format to expand after 2019. It's tried a variety of formats, including second-level appointment-based stores, high-traffic malls, and neighborhood streets. Ultimately, the stores have an impact that goes far beyond four walls. The company consistently sees a post-opening lift in the metro surrounding each new store and an average 16-month payback.
For Brilliant Earth, this rapid expansion is a profitable endeavor, but it's also rooted in the importance of physical experience in the fine jewelry industry. It is one of many DTC and jewelry brands on a store-opening spree. Mejuri, another fine jewelry provider, has 34 stores, most of which opened in the last few years. VRAI, a sole lab-grown diamond brand, has started its expansion with six across the US and Canada and 13 globally. Other similar companies on the same track include gorjana, With Clarity, Grown Brilliance, and Blue Nile, amongst many others.
Crafting Immersive Showroom Experiences
At the heart of Brilliant Earth's retail strategy lies a dedication to crafting immersive showroom experiences that resonate with customers on a personal level. Each showroom is meticulously designed to evoke a sense of warmth and intimacy, inviting visitors to embark on a journey of discovery and exploration. Brilliant Earth offers diverse showroom formats to accommodate varying customer preferences, from intimate appointment-only spaces to bustling pedestrian mall locations.
Brilliant Earth's showroom in Scottsdale Quarter opened in 2021.
One of the hallmark features of the brand's showroom experience is the option for customers to choose items online and try them in-store. In other words, the company brings products into the showrooms upon customer request. It allows for lower inventory and theft risk for the brand while still meeting customers' needs.
Additionally, the showroom design prioritizes comfort and convenience, with knowledgeable associates to provide personalized, one-to-one guidance and assistance throughout the shopping process.
Finding another ethical jewelry DTC brand with a diverse assortment and in-store experiences is challenging. However, similar brands are trying to get creative with try-on opportunities for these products. For instance, With Clarity offers home try-ons of replicates, allowing customers a similar chance to see how the rings look on their hands.
Brilliant Earth's Vision for a Sustainable Future
In an industry fraught with sustainability and ethical sourcing challenges, Brilliant Earth has emerged as a trendsetter. One of its many initiatives is carbon capture and renewable energy lab-grown diamonds. The company creates these diamonds by using CO2 captured before it is released into the atmosphere, and some are also grown using a renewable energy source.
Dr. Jane Goodall at the Future is Brilliant event in early April.
Another unique initiative is its partnership with Dr. Jane Goodall, a renowned ethologist and conservationist. The recently announced collaboration underscores Brilliant Earth's dedication to environmental conservation and social responsibility, and the support of Dr. Goodall emphasizes the legitimacy of the brand's sustainable efforts. A new product line, designed in partnership with Dr. Goodall, will be launched later this year.
Brilliant Earth is among many players in the fine jewelry category, but its showroom expansion and sustainability initiatives are making it a clear leader and one to watch.
"We have a track record of 20 years as a brand, and we don't take it for granted. This is a highly competitive industry, but we stay true to the clarity of our purpose and the clarity of our promise. Diamonds are here to stay. And we hope to continue to inspire the industry around bold and responsible sourcing," shared Catlett, adding that "whatever path you choose, whether it's lab-grown or natural diamond, you have confidence [with Brilliant Earth] that you're going to have the best possible choice as it relates to a responsibility, sustainability, and purpose."
