It seems like jewelers are led to believe that marketing to millennials or selling jewelry to younger consumer groups like the millennials and the Gen Z is a hard nut to crack. However, with the jewelry industry predicted to grow continuously during the forecasted period of 2019 to 2023, does it ever make you ask why millennials are not buying diamonds?
Or maybe they do!
In the recent Luxury Brand Favourites of Millennials, the MVI Marketing has revealed that millennials have a penchant for Tiffany & Co and Cartier; hence, naming them as two of their favorite luxury brands when buying jewelry. In addition, De Beers has also found that 45% of all diamond purchases in major markets like China, India, and the USA, are attributed to millennials.
Those reports show that indeed they do, but they only buy from those jewelers and jewelry companies that understand who they are and what they need and want, especially being a generation of experience and not of possession.
If you’re still strategizing on how to maneuver the shift in preferences, stick with us, and we’ll help you crack the new consumer puzzles that are also known as the millennials and the Generation Z.
Read on and adapt!
First off, who are they and why are they a powerhouse?
- Millennials are those born between 1981 and 2000 and can be grouped into two: The younger millennials are aged 21 to 25 while the older millennials are those aged 26 to 39. Meanwhile, Gen Z is those born after 1996 and aged 0 to 20.
- Millennials’ spending power is said to be growing and expected to exceed US$4 trillion collectively by 2030.
- The Chinese millennials are said to become more powerful consumers than their US counterparts by 2035.
- As reported by De Beers, millennials drive 80% of diamonds jewelry demand in China and 60% of those in the US.
This shows that understanding their preferences, values, lifestyle, tastes, and desires is essential for your jewelry business to soar high in today’s digital world.
Marketing to Millennials: How to Sell Jewelry to Younger Consumer Groups
Marketing to millennials to make them buy requires a thorough understanding of consumer psychographics. As a marketer and/or a jeweler, you must learn to speak in terms of psychographics as it offers deep insights that you could use to complement your knowledge of the targeted demographics. With the help of today’s technology, you could use both data to establish a marketing strategy that would transform them into actionable insights.
Consider the insights below when adapting to their evolving needs and wants.
1. Know their taste and desire, and build your proposition around it
According to De Beers’ Diamond Insight Report in 2018, millennials and Gen Z are not different from the older generation when it comes to their view of love, which encapsulates the desire to have a stable family, to strengthen the commitment, and to keep the romance alive through traditional but creative gestures.
This means that while their traditional view of love offers greater opportunities for jewelers to make the younger generation appreciate the value and uniqueness of diamonds as a symbol of their love; it also opens a gap that is free for the taking – a gap waiting to be filled by jewelers who can meet their demand for personalization, informality, and fun.
For instance, sticking with the traditional solitaire ring only might not make them buy. Brides want to have a say in the design of their jewelry pieces, so let them take control of the process, and they will come to you.
However, there’s a danger in clustering them all in one psychographic data without regard for demographics. While diamonds remain to be the most popular choice in bridal events, the preferences in style might differ across various markets. For instance and as reported by De Beers, a solitaire engagement ring is the most preferred in China while those in the US are open to a broader range of styles. In this case, you have to know their taste and desire and then, match it with the demographic insights you have to come up with an excellent marketing proposition.
2. Persuade them that diamonds are for all types of love and take advantage of non-bridal gifting
De Beers reports that 48% of the non-bridal gifting is attributed to these younger consumer groups. This figure communicates the fact that not only could you take advantage of the bridal segment, there is also an opportunity for you in the non-bridal segment, which is defined as the non-bridal jewelry pieces given to friends, family, and other loved ones, to celebrate special occasions like birthdays, Christmas, Mother’s Day, and other milestones.
To navigate your way around this, know which of the non-bridal jewelry pieces are popular among your target demographics. For instance, diamond earrings and necklaces are popular non-bridal gifts among millennial gifters in the US. Once you’re able to identify what each psychographic segment desires, you should be able to put out the right marketing communication strategy.
READ MOREKey Dates Every Jeweler Needs to Know for 2019
3. As digital natives, millennials and Gen Z expect a seamless retail experience no matter the touchpoints
Based on McKinsey’s report, at least one digital touchpoint influences over 70% of all luxury purchases today. This is a clear translation of the consumers’ demand for a seamless omnichannel touchpoint. Millennials and Gen Z use different digital channels to research about the products, to look for inspiration, and of course, to buy. In fact, McKinsey expects online sales of luxury goods, which include jewelry and watches, to reach €74 billion by 2025.
What do these younger consumer groups want to know online, you ask?
A lot, actually!
It turns out, these groups of consumers, especially those based in the US, use the internet to learn about the quality and pricing of the diamond, the jewelry designs, and to know more about the different jewelry brands.
To meet their demand for a seamless retail experience, ensure that your websites are functional on mobile devices. You must also be responsive to online customer feedback, have an excellent online and offline customer service, and that your website loads faster than they could click the exit. This is because 60% of your potential buyers will refuse to use a website or a mobile application that’s too slow to load.
4. Millennials love videos!
Do you know that 85% of surveyed millennials have purchased a product or service after watching a video? Powerful, isn’t it?
Brightcove, a leading online video hosting platform, found that video is the most memorable type of content, especially among millennials who believed it’s important for brands to share product information through video because it’s engaging compared to others. There was also a growing demand for more interactive content. For instance, 57% of millennials find it extremely helpful when your videos have a specific call to action that would direct them on what to do next to engage with the brand directly. Meanwhile, 41% of millennials thought a link at the end of the video would help them in making their buying decision if the link leads them to more product and brand information.
As we’ve specified here, there are many types of jewelry videos you can use on your website or social media pages. Each type serves a different purpose. For instance, the GemLightbox tutorial video above demonstrates how to use the product in photographing your jewelry to achieve a studio-quality result.
Always remember that to be able to connect to your potential buyers, your jewelry videos must meet them at the right stage of their journey. You must understand where they are in their journey as a buyer; otherwise, your message will not translate to sales. For example, you can’t show them a solution without them going through the awareness stage where they realize they have a problem to solve, so take time to personalize your video marketing process to the buyer’s context by showing them that you understand the buyer’s journey.
5. The younger consumer groups are involved in social issues and pay attention to environmental concerns and ethical trading
Do you know that only 48% of polled millennials believe that business, especially big corporations, behave ethically? This was lower than the 65% of millennials who believed the same in 2017. More than anything else, it signifies the millennials’ declining trust in big businesses.
Meanwhile, 26% of Gen Z are less likely to deal with businesses that disregard environmental concerns or display unethical trading practices. Both of these statistics are proof that ethical considerations influence their buying behavior.
The diamond industry is rife with ethical, social, and environmental issues. The way to woo your younger consumer groups is to boast your eco/green credentials. For instance, in 2018, Tiffany & Co ranked the highest in the Human Rights Watch’s (HRW) #BehindtheBling report where the HRW assessed and ranked leading jewelry brands for their treatment of local workers and their supply chain practices. Tiffany & Co, which received a “strong” rating emerged on top (nobody got an excellent rating) for its ethical sourcing while Cartier, Pandora, Bvlgari, and Signet Jewelers all received a moderate rating.
If your jewelry materials are responsibly sourced, make sure that your potential buyers know. This is your chance to appeal to these socially-conscious consumer groups.
Are you convinced now that millennials and Gen Z are the present and future of the jewelry industry?
How do you attract these experience-obsessed generations to buy and wear your jewelry pieces? Feel free to share some tips in the comment section below!