Crafting Trust and Trend

Launched nine months ago, Varniya is a lab-grown diamond jewellery brand from the prestigious Chennai-based legacy player Vummidi Bangaru family. In a candid conversation, co-founder Varun Vummidi explains to The Retail Jeweller why the brand is growing at 100 per cent month-on-month, the early demand trends, and why, despite the price volatility, the market will eventually stabilise

Recognising the vast potential of the lab-grown diamond market, and the growing trend of diamond ring exchanges for marriage proposals, the brand focuses on the niche category of bridal engagement rings. It has unabashedly recreated celebrity engagement rings, gaining the quick attention of many first-time diamond buyers. The brand’s innovative strategies garner steady sales growth, presenting the possibility of converting Varniya’s customers into Vummidi Bangaru’s potential bridal customers

Edited Excerpts:

Pratyasha Kumari (PK): What inspired the creation of Varniya, and what market potential did you see?
Varun Vummidi (VV): The concept of Varniya was envisioned long before its launch. While many new-age jewellers have entered and thrived in the lab-grown diamond market, many have also chosen to stay away. Recognising the industry’s boundless potential, we decided to explore it. With Vummidi Bangaru’s strong legacy of trust and quality, it was time to bring those values into this new category.

“We significantly benefit from the trust and quality assurance Vummidi Bangaru family established over 124 years”

Varun Vummidi, Co-founder, Varniya

PK: Why have you decided to limit the brand to an online space?
VV: Lab-grown diamonds have unlocked a new consumer segment by making larger solitaires accessible, even for those who previously could not afford natural diamonds. Their affordability has created a vast market. To reach this broad audience effectively, an e-commerce platform was essential. In just nine months, we have expanded in India and abroad, achieving remarkable growth that would have been challenging with a physical retail presence alone. We have experienced 100 per cent month-over-month sales growth.

PK: What are the early demand trends you are observing?
VV: Our primary customers are educated, urban individuals aged 28 to 45. The older generation is drawn to large solitaires, while younger customers, including those who just started earning, look for engagement rings and gifts for their parents. Interestingly, our customers rarely enquire about smaller solitaires; they usually begin by asking for one or two-carat stones, reflecting a preference for larger diamonds.

PK: Why did you focus only on engagement rings as your niche?
VV: The diamond engagement ring market alone represents a $1.5 billion opportunity. Observing the growing trend of diamond ring exchanges for marriage proposals in India, inspired by Western traditions, we saw an untapped niche. Lab-grown diamonds allow us to offer both trendiness and affordability. Customers can now opt for large solitaire rings instead of expensive studded diamond rings, appealing to the younger generation who prefer to save money for experiences like travel.

PK: What types of rings do you offer, and can you tell us more about your celebrity-inspired designs?
VV: Our offerings include Classic Gold Solitaire, Halo, Pave Round, Marquise, and Princess rings, with Classic Gold Solitaire, Halo and Fancy cut rings being particularly popular. We also have a huge collection of men’s rings and offer customisation options. Our celebrity-inspired rings, such as those modelled after actor-couple Aditi Rao Hydari and Siddharth, and actor Sagarika Ghatge and her husband former cricketer Zaheer Khan, are the most famous ones and help us stay trendy and relevant. These designs boost our brand’s visibility, primarily through viral videos. Our prices range from Rs. 30,000 to Rs. 6,00,000.

PK: What challenges have you faced in the lab-grown diamond industry, and how do you address them?
VV: One of the significant challenges we have faced is educating the market about lab-grown diamonds. Building awareness and trust regarding the equivalence of lab-grown diamonds to mined diamonds is a journey, as unlike natural diamonds, lab-grown diamonds are not yet seen as investments. To address this, we have begun sharing information on the topic through social media platforms. We also plan to introduce buy-back or cashback policies for lab-grown diamonds, providing customers with added assurance and value.

PK: How do you leverage the legacy of Vummidi Bangaru family?
VV: We significantly benefit from the trust and quality assurance Vummidi Bangaru family established over 124 years. Approximately 30 per cent of our customers are loyal patrons of Vummidi Bangaru. While there is currently limited crossover between purchasing engagement rings from Varniya and wedding jewellery from Vummidi, we aim to bridge this gap soon, capitalising on our loyal customer base.

“While there is currently limited crossover between purchasing engagement rings from Varniya and wedding jewellery from Vummidi Bangaru, we aim to bridge this gap soon, capitalising on our loyal customer base”

PK: With declining prices, what are the market dynamics for lab-grown diamond jewellery?
VV: The prices are not crashing; they have just been lowered. Lab-grown diamonds are artificially produced in unlimited quantities, leading to production exceeding consumption and hence, the prices decline. However, this price reduction has significantly increased demand, benefiting the market. We expect price stabilisation in the coming years. Unlike mined diamonds, lab-grown diamonds do not have a single price controller, leading to varied pricing strategies among retailers. Market stability will
eventually emerge.

Written by Pratyasha Kumari