KTL Global announced, on Aug 11, that it has entered into a strategic collaboration agreement with X Diamond Capital, Guangdong X Diamond Technology and WIN+ as it seeks to venture into the lab-grown diamond industry.
The agreement was signed by KTL Global’s wholly-owned subsidiary, Gold Heartland.
The agreement combines the complementary capabilities and business networks of X Diamond Capital, Guangdong X Diamond Technology and WIN+, with X Diamond and Guangdong X having strong product design capabilities, research and development (R&D) expertise, as well as an integrated manufacturing and supply chain for lab-grown diamonds.
Both companies have also created the brand X DIAMOND for its lab-grown diamonds to build more brand awareness and loyalty.
Under the agreement, Gold Heartland will undertake the investment and management of X DIAMOND, beginning from an omni-channel brand development strategy and market research.
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WIN+ will be involved in branding and marketing activities.
The X DIAMOND flagship store will be started in Singapore followed by the launch of online stores in Asia.
Explaining the rationale of the move, Chin Teck Oon, executive director of KTL says, “[A] lab-grown diamond has characteristics and qualities identical to a mined diamond. Particularly, younger consumers are increasingly concerned about environmental, social and corporate responsibility issues associated with mined diamonds”.
“With greater consumer acceptance for lab-grown diamonds, we believe that the lab-grown diamonds market will continue to expand rapidly and we look forward to harness the opportunities in this high-growth consumer market,” he adds.
Shares in KTL Global closed flat at 11.6 cents on Aug 11.